,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #cjii  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #d1 #bjai,mr4   
,swalwell ( ,cali=nia 7= himself1 ,mr4  
,gallego1 ,mr4 ,?ompson ( ,mississippi1 
,mr4 ,meeks1 ,mr4 ,ru%1 ,ms4 ,jackson   
,lee1 & ,mr4 ,coh57 introduc$ ! foll[+  
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means1 & 9 addition to !       
,committee on ,education & ,labor1 = a  
p]iod to be subsequ5tly det]m9$ by !    
,speak]1 9 ea* case = consid]ation ( su*
 provisions z fall )9 ! jurisdiction ( !
 committee conc]n$  ,a ,,bill  ,to      
provide = loan =giv5ess = ,,/em tea*]s1 
& = o!r purposes4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,,/em ,k to ,c>e]  
,act4  #b4 ,loan ,=giv5ess = ,,/em      
tea*]s ,"p ,g ( title ,,iv ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhh et seq47 is am5d$ by add+ at ! end
 ! foll[+3  #dic;,e4 ,loan =giv5ess =   
,,/em tea*]s  7a7 ,loan =giv5ess        
au?oriz$ ,! ,secret>y %all =give1 9     
accordance ) ?is section1 ! qualifi$    

loan am\nt describ$ 9 subsection 7c7 ( !
 /ud5t loan obligation ( a borr[] :o--  
7#a7 is employ$ z a full-"t ,,/em tea*] 
= s]vice 9 an academic ye> 7includ+ su* 
a ,,/em tea*] employ$ by an educational 
s]vice ag5cy7--  7,a7 9 a public or o!r 
nonpr(it private elem5t>y s*ool or      
second>y s*ool1 :i*1 = ! purpose ( ?is  
p>agraph & = t ye>--  7i7 has be5       
det]m9$ by ! ,secret>y 7pursuant to     
regulations ( ! ,secret>y & aft]        
consultation ) ! ,/ate educational ag5cy
 ( ! ,/ate 9 :i* ! s*ool is locat$7 to  
be a s*ool 9 :i* ! numb] ( *ildr5 meet+ 
a measure ( pov]ty "u section           
#aaac7;a77#e7 ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife1 exce$s #cj     
p]c5t ( ! total numb] ( *ildr5 enroll$ 9
 su* s*ool2 &  7ii7 is 9 ! s*ool di/rict
 ( a local educational ag5cy :i* is     
eligible 9 su* ye> = assi/ance pursuant 
to "p ,a ( title ,i ( ! ,elem5t>y &     
,second>y ,education ,act ( #aife2 or   
7,b7 9 "o or m public1 or nonpr(it      
private1 elem5t>y s*ools or second>y    

s*ools or locations op]at$ by an        
educational s]vice ag5cy t h be5 det]m9$
 by ! ,secret>y 7pursuant to regulations
 ( ! ,secret>y & aft] consultation ) !  
,/ate educational ag5cy ( ! ,/ate 9 :i* 
! educational s]vice ag5cy op]ates7 to  
be a s*ool or location at :i* ! numb] ( 
*ildr5 taught :o meet a measure ( pov]ty
 "u section #aaac7;a77#e7 ( ! ,elem5t>y 
& ,second>y ,education ,act ( #aife1    
exce$s #cj p]c5t ( ! total numb] (      
*ildr5 taught at su* s*ool or location2 
&  7#b7 is n 9 default on a loan = :i* !
 borr[] seeks =giv5ess4  7b7 ,me?od (   
loan =giv5ess ,to provide loan =giv5ess 
"u subsection 7a71 ! ,secret>y %all c>ry
 out a program--  7#a7 ?r\gh ! hold] ( !
 loan1 to assume ! obligation to repay a
 qualifi$ loan am\nt = a loan made1     
insur$1 or gu>ante$ "u "p ,b 7o!r ?an an
 except$ ,,plus loan or an except$      
consolidation loan 7z su* t]ms are def9$
 9 section #dic;,c7a7772 &  7#b7 to     
cancel a qualifi$ loan am\nt = a loan   
made "u "p ,d 7o!r ?an an except$ ,,plus

 loan or an except$ consolidation loan74
  7c7 ,qualifi$ loan am\nt  7#a7        
,=giv5ess ( p]c5tage ( debt bas$ on ye>s
 ( s]vice ,= ea* complete ye> ( s]vice  
by a borr[] z a ,,/em tea*] 9 accordance
 ) ?is section aft] ! date ( enactm5t ( 
! ,,/em ,k to ,c>e] ,act1 ! ,secret>y   
%all =give ! /ud5t loan obligation ( !  
borr[] at ! rate ( #ae p]c5t ( su*      
obligation = ! fir/ or second ye> ( su* 
s]vice1 #bj p]c5t ( su* obligation = !  
?ird or f\r? ye> ( su* s]vice1 & #cj    
p]c5t ( su* obligation = ! fif? ye> (   
su* s]vice4  7#b7 ,pr9cipal & int]e/    
=giv5 ,if a portion ( a loan is =giv5 "u
 ?is section = any ye>1 ! entire am\nt (
 int]e/ on su* loan :i* accrues = su*   
ye> %all be =giv54  7d7 ,special rules  
7#a7 ,li/ ( s*ools ,if ! li/ ( s*ools 9 
:i* a ,,/em tea*] may p]=m s]vice       
pursuant to subsection 7a77#a7 is n     
available be=e ,may #a ( any ye>1 !     
,secret>y may use ! li/ = ! ye> prec$+ !
 ye> = :i* ! det]m9ation is made to make
 su* s]vice det]m9ation4  7#b7 ,cont9u+ 

eligibility ,any tea*] :o p]=ms s]vice 9
 a s*ool :i*-- 7,a7 meets ! requirem5ts 
( subsection 7a77#a7 9 any ye>2 &  7,b7 
9 a subsequ5t ye> fails to meet !       
requirem5ts ( su* subsection1  may      
cont9ue to tea* 9 su* s*ool & %all be   
eligible = loan =giv5ess pursuant to ?is
 section su* subsequ5t ye>s4  7#c7      
,promissory note conflicts ,an          
individual ) an out/&+ /ud5t loan       
obligation :o p]=ms s]vice describ$ 9   
subsection 7a77#a7 9 accordance ) ?is   
section %all be eligible = =giv5ess "u  
?is section = su* s]vice not)/&+ any    
contr>y provision ( ! promissory note "u
 :i* ! loan or loans 7 made4  7#d7      
,=giv5ess n consid]$ income ,! am\nt ( a
 loan1 & int]e/ on a loan1 :i* is =giv5 
"u ?is section %all n be consid]$ income
 = purposes ( ! ,int]nal ,rev5ue ,code (
 #aihf4  7#e7 ,no refunds ,no?+ 9 ?is   
subsection %all be con/ru$ to au?orize  
refund+ ( any repaym5t ( a loan4  7#f7  
,no d\ble b5efit ,no borr[] may1 = !    
same s]vice1 receive a b5efit "u bo? ?is

 section & subtitle ,d ( title ,i ( !   
,national & ,community ,s]vice ,act (   
#aiij 7#db ,u4,s4,c4 #abfja et seq474   
7e7 ,regulations ,! ,secret>y is        
au?oriz$ to issue su* regulations z may 
be necess>y to c>ry out ?is section4    
7f7 ,def9itions ,= ! purposes ( ?is     
section-- 7#a7 ! t]m ye> :]e appli$ to  
s]vice z a ,,/em tea*] means academic   
ye> z def9$ by ! ,secret>y2 &  7#b7 !   
t]m ,,/em tea*] means a tea*] ( sci5ce1 
te*nology1 eng9e]+1 or ma!matics4  4    
#c4 ,above-!-l9e-d$uction = ,,/em       
education mat]ials  7a7 ,9 g5]al        
,section #fb7;a77#b77;,d7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ flu% matt]3  ,9 ! case
 ( taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjah1 ! #bej am\nt 9 clause 7i7   
%all be increas$ by an am\nt equal to s 
mu* ( ! am\nts paid or incurr$ by !     
eligible educator = ,,/em education     
supplies z does n exce$ #bej4 4  7b7    
,inflation adju/m5t ,section #fb7;d77#c7
 ( su* ,code is am5d$ to read z foll[s3 

7#c7 ,inflation adju/m5t  7,a7 ,9 g5]al 
,9 ! case ( any taxable ye> beg9n+ aft] 
#bjae1 ! fir/ #bej am\nt 9 subsection   
7a77#b77;,d7 %all be increas$ by an     
am\nt equal to--  7i7 su* doll> am\nt1  
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjad = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7,b7 ,,/em education supplies ,9 
! case ( any taxable ye> beg9n+ aft]    
#bjai1 ! #bej am\nt 9 subsection        
7a77#b77;,d7 %all be increas$ by an     
am\nt equal to--  7i7 su* doll> am\nt1  
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjah = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7,c7 ,r\nd+ ,any increase det]m9$
 "u subp>agraph 7,a7 or 7,b7 %all be    
r\nd$ to ! ne>e/ multiple ( #ej4  4  7c7
 ,,/em education supplies def9$ ,section
 #fb7;d7 ( su* ,code1 z am5d$ by        

subsection 7b71 is am5d$ by r$esignat+  
p>agraphs 7#b7 & 7#c7 z p>agraphs 7#c7 &
 7#d71 respectively1 & by ins]t+ aft]   
p>agraph 7#a7 ! foll[+ new p>agraph3    
7#b7 ,,/em education supplies ,=        
purposes ( subsection 7a77#b77;,d71 !   
t]m ,,/em education supplies means      
exp5ses = books1 supplies1 equipm5t1 &  
o!r mat]ials us$ 9 connection ) tea*+   
sci5ce1 te*nology1 eng9e]+1 or ma?4  4  
7d7 ,cl]ical am5dm5t ,! head+ = section 
#fb7;d7 ( su* ,code is am5d$ by /rik+   
,def9ition2 special rules & ins]t+      
,elem5t>y & second>y s*ool tea*]s4  7e7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjah4  #d4   
,,/em int]n%ip tax cr$it  7a7 ,9 g5]al  
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #de,t4 ,,/em int]n%ip    
cr$it  7a7 ,g5]al rule ,= purposes (    
section #ch1 9 ! case ( an eligible     
employ]1 ! ,,/em int]n%ip cr$it det]m9$ 

"u ?is section = ! taxable ye> is equal 
to #b1jjj = ea* qualifi$ ,,/em int]n    
employ$ by ! employ] dur+ ! taxable ye>4
  7b7 ,limitation ,! total am\nt ( !    
cr$it all[$ "u subsection 7a7 to a      
taxpay] = a taxable ye> may n exce$     
#ej1jjj4  7c7 ,def9itions ,= purposes ( 
subsection 7a7-- 7#a7 ,qualifi$ ,,/em   
int]n ,! t]m qualifi$ ,,/em int]n means 
an individual :o is employ$ "u an       
int]n%ip program ( an eligible employ]  
"u :i*--  7,a7 ea* int]n is paid n less 
?an ! wage 9 effect "u section #f7;a7 ( 
! ,fair ,labor ,/&>ds ,act ( #aich1     
7,b7 ea* int]n is employ$ = n less ?an  
#bj h\rs p] week by ! eligible employ] 9
 a position relat$ to ! c>e] goals ( !  
int]n1  7,c7 ea* int]n completes n less 
?an #f weeks ( employm5t ) ! eligible   
employ] z an int]n1 &  7,d7 ea* int]n is
 a /ud5t :o is enroll$ full-"t 9 a      
sci5ce1 te*nology1 eng9e]+1 or ma?      
program 7includ+ a program ( /udy abroad
 approv$ = cr$it by ! eligible          
in/itution at :i* su* /ud5t is enroll$7 

lead+ to a recogniz$ und]graduate or    
graduate degree at an in/itution ( high]
 education t is an eligible in/itution 9
 accordance ) ! provisions ( section    
#dhg ( ! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajid7 & is n enroll$ 9  
an elem5t>y or second>y s*ool4  7#b7    
,eligible employ]  7,a7 ,9 g5]al ,! t]m 
eligible employ] means an employ] :o    
employ$ on av]age n m ?an #ejj full-"t  
employees on bus9ess days dur+ ! prec$+ 
cal5d> ye>4 ,= purposes ( ! prec$+      
s5t5ce1 any individual ) respect to :om 
a cr$it is all[$ "u ?is section %all n  
be tak5 into acc\nt4  7,b7 ,rules =     
det]m9+ employ] size ,= purposes (      
subp>agraph 7,a7-- 7i7 ,application (   
aggregation rule = employ]s ,all p]sons 
treat$ z a s+le employ] "u subsection   
7b71 7c71 7m71 or 7o7 ( section #dad    
%all be treat$ z #a employ]4  7ii7      
,employ]s n 9 exi/5ce 9 prec$+ ye> ,9 ! 
case ( an employ] :i* 0 n 9 exi/5ce     
?r\gh\t ! prec$+ cal5d> ye>1 !          
det]m9ation ( :e!r su* employ] is an    

eligible employ] %all be bas$ on !      
av]age numb] ( employees t x is         
reasonably expect$ su* employ] w employ 
on bus9ess days 9 ! curr5t cal5d> ye>4  
7iii7 ,pr$ecessors ,any ref]5ce 9 ?is   
p>agraph to an employ] %all include a   
ref]5ce to any pr$ecessor ( su* employ]4
  4  7b7 ,cr$it made "p ( g5]al bus9ess 
cr$it ,section #ch7;b7 ( su* ,code is   
am5d$ by /rik+ plus at ! end ( p>agraph 
7#ca71 by /rik+ ! p]iod at ! end (      
p>agraph 7#cb7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#cc7 ! ,,/em int]n%ip cr$it det]m9$ "u 
section #de,t7a74  4  7c7 ,d5ial ( d\ble
 b5efit ,section #bhj;,c7a7 ( su* ,code 
is am5d$ by ins]t+ #de,t7a71 aft]       
#de,s7a714  7d7 ,cl]ical am5dm5t ,!     
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#de,t4 ,,/em int]n%ip cr$it4  4  7e7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      

beg9n+ aft] ,decemb] #ca1 #bjah4  #e4   
,,/em appr5tice%ip tax cr$it  7a7 ,9    
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf1 z am5d$ by section #d1 is am5d$ 
by add+ at ! end ! foll[+ new section3  
#de,u4 ,,/em appr5tice%ip cr$it  7a7    
,g5]al rule ,= purposes ( section #ch1 9
 ! case ( an eligible employ] ! ,,/em   
appr5tice%ip cr$it det]m9$ "u ?is       
section = ! taxable ye> is an am\nt     
equal to ! taxpay]'s aggregate ,,/em    
cr$it am\nt = ! taxable ye>4  7b7       
,limitation ,! total am\nt ( ! cr$it    
all[$ "u subsection 7a7 to a taxpay] = a
 taxable ye> may n exce$ #ej1jjj4  7c7  
,,/em cr$it am\nt ,= purposes (         
subsection 7a71 ! ,,/em cr$it am\nt )   
respect to an individual %all be-- 7#a7 
#b1jjj 9 ! case ( a new appr5tice1  7#b7
 #c1jjj 9 ! case ( a mid-c>e] appr5tice1
  7#c7 #c1jjj 9 ! case ( a unemploy$    
appr5tice1 &  7#d7 #e1jjj 9 ! case ( a  
complet$ appr5tice%ip employee4  7d7    
,def9itions ,= purposes ( subsection    

7a7--  7#a7 ,eligible employ]  7,a7 ,9  
g5]al ,! t]m eligible employ] means an  
employ] :o employ$ on av]age n m ?an    
#ejj full-"t employees on bus9ess days  
dur+ ! prec$+ cal5d> ye>4 ,= purposes ( 
! prec$+ s5t5ce1 any individual )       
respect to :om a cr$it is all[$ "u ?is  
section %all n be tak5 into acc\nt4     
7,b7 ,rules = det]m9+ employ] size ,=   
purposes ( subp>agraph 7,a7-- 7i7       
,application ( aggregation rule =       
employ]s ,all p]sons treat$ z a s+le    
employ] "u subsection 7b71 7c71 7m71 or 
7o7 ( section #dad %all be treat$ z #a  
employ]4  7ii7 ,employ]s n 9 exi/5ce 9  
prec$+ ye> ,9 ! case ( an employ] :i* 0 
n 9 exi/5ce ?r\gh\t ! prec$+ cal5d> ye>1
 ! det]m9ation ( :e!r su* employ] is an 
eligible employ] %all be bas$ on !      
av]age numb] ( employees t x is         
reasonably expect$ su* employ] w employ 
on bus9ess days 9 ! curr5t cal5d> ye>4  
7iii7 ,pr$ecessors ,any ref]5ce 9 ?is   
p>agraph to an employ] %all include a   
ref]5ce to any pr$ecessor ( su* employ]4

  7#b7 ,new appr5tice ,! t]m new        
appr5tice means an employee :o1 )       
respect to an eligible employ]-- 7,a7   
complet$ dur+ ! taxable ye> a qualifi$  
appr5tice%ip program1 &  7,b7 prior to  
beg9n+ ! qualifi$ appr5tice%ip program1 
has n receiv$ comp5sation dur+ ! prec$+ 
#a-ye> p]iod = s]vices provid$ to !     
eligible employ]4  7#c7 ,mid-c>e]       
appr5tice ,! t]m mid-c>e] appr5tice     
means an employee :o-- 7,a7 prior to be+
 employ$ by ! eligible employ] 0 ei!r-- 
7i7 employ$ 9 an indu/ry sector diff]5t 
f ! indu/ry section ! eligible employ]  
is 91 z det]m9$ "u regulations ( !      
,secret>y1 or  7ii7 or 0 unemploy$1 &   
7,b7 complet$ dur+ ! taxable ye> a      
qualifi$ appr5tice%ip program4  7#d7    
,complet$ appr5tice%ip employee ,! t]m  
complet$ appr5tice%ip employee means an 
employee :o1 ) respect to an eligible   
employ]1 complet$ #a ye> ( s]vice ) !   
eligible employ] dur+ ! taxable ye> aft]
 complet+ a qualifi$ appr5tice%ip       
program4  7#e7 ,qualifi$ appr5tice%ip   

program ,! t]m qualifi$ appr5tice%ip    
program means an appr5tice%ip program 9 
a field ( sci5ce1 te*nology1 eng9e]+1 or
 ma? t is recogniz$ "u any program      
adm9i/]$ by ! ,secret>y ( ,labor4  7#f7 
,unemploy$ ,an individual is unemploy$  
if ! individual is c]tifi$ by !         
designat$ local ag5cy z be+ 9 receipt ( 
unemploym5t comp5sation "u ,/ate or     
,f$]al law = n less ?an #d weeks dur+ ! 
#a-ye> p]iod end+ on ! hir+ date4  7#g7 
,hir+ date2 designat$ local ag5cy ,!    
t]ms hir+ date & designat$ local ag5cy h
 ! mean+s giv5 su* t]ms by section      
#ea7;d77#aa7 & 7#ab71 respectively4  7e7
 ,d5ial ( d\ble b5efit ,no d$uction or  
cr$it %all be all[$ "u any o!r provision
 ( ?is *apt] = any exp5ses paid or      
incurr$ ) respect to an individual to ! 
ext5t ( ! cr$it all[$ "u ?is section )  
respect to ! individual4  4  7b7 ,cr$it 
made "p ( g5]al bus9ess cr$it           
,subsection 7b7 ( section #ch ( su*     
,code1 z am5d$ by section #d1 is am5d$  
by /rik+ plus at ! end ( p>agraph 7#cb71

 by /rik+ ! p]iod at ! end ( p>agraph   
7#cc7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#cd7 !     
,,/em appr5tice%ip cr$it det]m9$ "u     
section #de,u7a74  4  7c7 ,d5ial ( d\ble
 b5efit ,section #bhj;,c7a7 ( su* ,code 
is am5d$ by ins]t+ #de,u7a71 aft]       
#de,t7a714  7d7 ,cl]ical am5dm5t ,!     
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#de,u4 ,,/em appr5tice%ip cr$it4  4  7e7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjah4  #f4   
,m&atory m9imum allocation ( portion (  
,f$]al ,"w-,/udy program funds = ,,/em  
employm5t  7a7 ,m&atory ,m9imum         
,allocation = ,,/em ,employm5t ,section 
#ddc7;b77#b7 ( ! ,high] ,education ,act 
( #aife 7#bj ,u4,s4,c4 #bgec7;b77#b77 is
 am5d$--  7#a7 by /rik+ & at ! end (    
subp>agraph 7,a72  7#b7 by r$esignat+   
subp>agraph 7,b7 z subp>agraph 7,c72 &  

7#c7 by ins]t+ aft] subp>agraph 7,a7 !  
foll[+ new subp>agraph3  7,b7 = fiscal  
ye> #bjbj & succe$+ fiscal ye>s1 an     
in/itution %all use at lea/ #g p]c5t ( !
 total am\nt ( funds grant$ to su*      
in/itution "u ?is section = su* fiscal  
ye> to comp5sate /ud5ts employ$ 9       
sci5ce1 te*nology1 eng9e]+1 or          
ma!matics1 except t ! ,secret>y may     
waive ?is subp>agraph if ! ,secret>y    
det]m9es t en=c+ ?is subp>agraph w\ld   
cause h>d%ip = /ud5ts at ! in/itution4  
4  7b7 ,con=m+ ,am5dm5t ,relat+ to      
,(f-,campus ,,/em ,employm5t = ,/ud5ts  
at ,propriet>y ,in/itutions ( ,high]    
,education ,section #ddc7;b77#h7 ( su*  
,act 7#bj ,u4,s4,c4 #bgec7;b77#h77 is   
am5d$-- 7#a7 by /rik+ or at ! end (     
subp>agraph 7,a72  7#b7 by add+ or at ! 
end ( subp>agraph 7,b72 &  7#c7 by add+ 
at ! end ! foll[+ new subp>agraph3  7,c7
 9 sci5ce1 te*nology1 eng9e]+1 or       
ma!matics1 9 accordance ) p>agraph      
7#b77;,b7 ( ?is subsection2  4