[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4461 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4461
To establish an independent agency in the executive branch to be known
as the Federal Institute of Technology, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 16, 2021
Mr. Khanna (for himself, Ms. DelBene, Mr. Evans, and Ms. Barragan)
introduced the following bill; which was referred to the Committee on
Education and Labor, and in addition to the Committees on Oversight and
Reform, Ways and Means, Financial Services, Transportation and
Infrastructure, Science, Space, and Technology, and Energy and
Commerce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish an independent agency in the executive branch to be known
as the Federal Institute of Technology, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``21st Century Jobs Act''.
SEC. 2. FINDINGS AND SENSE OF CONGRESS.
(a) Findings.--Congress finds the following:
(1) In the year 2018, funding for research and development
in science and technology in the United States was $124.7
billion, or approximately 0.6 percent of the gross domestic
product.
(2) In the year 1964, the United States spent approximately
2 percent of gross domestic product on research and development
in science and technology.
(3) Public funding for research and development in science
and technology financed a majority of the innovations that
powered growth in the United States after World War II,
including digital computing and modern pharmaceutical science.
(4) The United States currently ranks ninth in the world
for total percentage of gross domestic product used for
research and development in science and technology and twelfth
in the world for public funding for research and development in
science and technology.
(5) Funding for research and development in science and
technology is concentrated in a small number of geographic
regions in the United States.
(6) Established technology centers that promote research
and development in science and technology are extremely
crowded, have high real estate costs, and are in locations that
require long commutes for many of the researchers at such
centers.
(7) The private sector has a limited ability or desire to
invest outside of such centers, which limits the potential for
growth in science and technology, including the availability of
employment opportunities in such industries.
(8) Increasing public funding for research and development
in science and technology to 1 percent of the gross domestic
product would significantly increase the rank of the United
States with respect to funding for such research and
development among developed countries.
(b) Sense of Congress.--It is the sense of the Congress that
amounts provided through this Act will be used--
(1) in a manner that is similar to breakthrough-focused,
project management models of the Defense Advanced Research
Projects Agency of the Department of Defense; and
(2) to supplement existing funding to Federal agencies.
SEC. 3. THE FEDERAL INSTITUTE OF TECHNOLOGY.
(a) Establishment.--There is established in the executive branch of
the Government an independent agency to be known as the ``Federal
Institute of Technology'' (in this section referred to as the
``Institute'').
(b) Headquarters.--The Institute shall be headquartered in the
District of Columbia.
(c) Board of Directors.--
(1) In general.--The Institute shall have a Board of
Directors (in this section referred to as the ``Board'').
(2) Duties of the board.--The duties of the Board shall
include the following:
(A) Not later than 2 years after the date of the
enactment of this section, establish a minimum of 10
local boards in accordance with subsection (d),
including--
(i) appointing the members of each local
board with consideration given to the
recommendations provided pursuant to subsection
(d)(1)(A)(iii);
(ii) providing funding to local boards to
support the local boards in achieving the
duties under subsection (d)(3) and to carry out
the comprehensive strategy under subsection
(d)(2), including funds from amounts in the
private endowment established under subsection
(e); and
(iii) annually evaluate the effectiveness
of each local board based on the requirements
developed pursuant to subsection (d)(1)(D).
(B) Provide funds to Federal, State, and local
agencies to support programs and research in the
qualified subjects, including programs and research in
certain technology sectors.
(3) Local board limitation.--The Board may establish--
(A) not more than 30 local boards in the 10-year
period after the date of the enactment of this Act; and
(B) not more than 3 local boards each fiscal year
during such period.
(4) New local board applications.--The Board may consider
new applications on an annual basis each fiscal year for the
10-year period after the date of the enactment of this Act, and
every 3 years thereafter.
(5) Members; chair.--The President shall--
(A) appoint 5 members of the Board by and with the
advice and consent of the Senate; and
(B) designate a Chair from among the members.
(6) Terms.--
(A) Length.--Each Board member shall be appointed
for a term of 5 years.
(B) Amount.--Each Board member shall not serve more
than 2 terms.
(7) Vacancy.--A vacancy on the Board shall be filled in the
manner in which the original appointment was made.
(8) Basic pay.--To the extent or in the amounts provided in
advance in appropriation Acts, members shall each be paid at a
rate not to exceed the rate of basic pay for level II of the
Executive Schedule.
(d) Local Boards.--
(1) Applications.--
(A) In general.--In establishing local boards
pursuant to subsection (c)(1)(A), the Board shall
consider applications on a competitive basis from State
and local governments, which shall include the
following:
(i) The location of the local board, which
must be in a covered region that--
(I) possesses relevant assets for
the development of technology; and
(II) does not possess a leading
technology center.
(ii) A comprehensive strategy described
under paragraph (2).
(iii) A recommendation of individuals to be
appointed to the local board.
(B) Duration period.--Each grant under this section
shall be made for a period of 10 years, provided that
the local board that receives such grant meets the
requirements developed pursuant to subparagraph (C).
(C) Requirements.--The Board shall develop
requirements for each local board based on the
comprehensive strategy of each such local board.
(2) Comprehensive strategy.--Each local board shall submit
to the Board a comprehensive strategy that includes the
following:
(A) A technology development plan, including the
focus of the local board and existing advantages for
the development of a hub in the covered region of the
local board.
(B) A spending plan, including an outline of the
use of funds based on the duties of the local board
under paragraph (3).
(C) A plan to address infrastructure barriers to
the development of a hub, including--
(i) the development of data infrastructure;
(ii) remediation of environmentally damaged
sites;
(iii) the development of buildings, labs,
roads, and bridges; and
(iv) improvements to airports, train
stations, and other forms of public transit.
(D) A higher education improvement plan,
including--
(i) hiring faculty;
(ii) supporting students; and
(iii) partnering with institutions of
higher education.
(E) A primary and secondary education improvement
plan, including--
(i) an outline with respect to educating
students in science, technology, engineering,
and mathematics through the use of Federal
resources; and
(ii) an evidence-based program to overcome
existing barriers to student achievement in the
covered region.
(F) A career placement plan based on the duties of
the local board under paragraph (3).
(G) A plan to improve access to capital for local
businesses.
(H) A sustainable growth plan that--
(i) ensures housing remains affordable in
the covered region; and
(ii) addresses environmentally damaged
areas in the covered region.
(3) Duties of the local board.--Each local board shall--
(A) establish a hub and oversee the activities of
such hub;
(B) make grants available for programs and research
in the qualified subjects in covered regions, which may
include grants to--
(i) promote the development of student
skills at all levels, including--
(I) primary and secondary school
improvements that support education in
technology and the qualified subjects;
(II) fellowships for undergraduate
students to support education in
technology and the qualified subjects;
and
(III) post-graduate fellowship
programs to support such graduate
students working in technology and the
qualified subjects;
(ii) improve the ability of local
institutions of higher education to carry out
leading-edge research in technology and the
qualified subjects, including--
(I) hiring faculty in the relevant
areas;
(II) laboratory construction and
development;
(III) developing and sponsoring
programs to promote technological
entrepreneurship among students (in
partnership with leading firms in the
covered region); and
(IV) developing partnerships with
local businesses to facilitate the
transition of students to the
technology workforce; and
(iii) develop effective pathways for career
advancement in technology that creates and
reduces the costs of--
(I) training programs for work in
technology jobs; and
(II) apprenticeship programs in
technology jobs;
(C) develop effective infrastructure to promote the
creation of a technology center as described in the
plan under paragraph (2)(C);
(D) improve access to capital for businesses in the
covered region, including--
(i) supporting partnerships with venture
capitalists in regions with developed
technology centers in the United States; and
(ii) providing matching funds for Federal
grants that support innovative businesses;
(E) develop and implement a plan for improving
education in the qualified subjects;
(F) develop and implement a plan for increasing
employment opportunities in the covered region in which
the local board is located, including--
(i) coordinating with the heads of
businesses and institutions of higher education
to support job placement in the covered region;
and
(ii) analyzing employment indicators with
respect to high-wage job opportunities in the
covered region of the local board to
determine--
(I) areas that need development in
such industries; and
(II) ways such industries would
benefit from the advancement of
technology;
(G) analyze infrastructure in covered regions and
provide policy recommendations to the Board with
respect to inadequate infrastructure, including data
infrastructure;
(H) analyze the cost of housing, zoning
regulations, and laws related to housing in the covered
region of the local board and provide policy
recommendations to State and local governments to
ensure the cost of housing remains affordable as the
hub established pursuant to subparagraph (A) increases
research activities in such covered region; and
(I) provide support for the development of
technology, including establishing partnerships with
institutions of higher education.
(e) Gifts, Bequests, and Devises.--Notwithstanding section 3302 of
title 31, United States Code, and without further appropriation, the
Board may accept, use, or dispose of gifts, bequests, or devises of
services or property, both real and personal, for the purpose of aiding
or facilitating the work of the Institute. Gifts, bequests, or devises
of money and proceeds from sales of other property received as gifts,
bequests, or devices shall be deposited in a private endowment for
disbursement upon order of the Board.
(f) Inspector General of the Federal Institute of Technology.--
Section 12 of the Inspector General Act of 1978 (Public Law 95-452; 5
U.S.C. App.) is amended--
(1) in paragraph (1), by inserting ``the Board of Directors
of the Federal Institute of Technology;'' after ``the Tennessee
Valley Authority;''; and
(2) in paragraph (2), by inserting ``the Federal Institute
of Technology,'' after the ``Tennessee Valley Authority,''.
(g) Reports.--
(1) Local board report.--Not later than 1 year after the
date of the enactment of this section, and annually thereafter,
each local board shall submit to the Board a report containing
recommendations based on the activities of each such local
board, including recommendations for--
(A) legislation that--
(i) supports research and education in the
qualified subjects;
(ii) increases employment opportunities
related to the qualified subjects;
(iii) addresses inadequate infrastructure
in covered regions; and
(iv) ensures the cost of housing is
affordable in covered regions;
(B) funding scientific development; and
(C) policy priorities with respect to supporting
scientific development.
(2) Breakthrough science report.--Not later than 1 year
after the date of the enactment of this section, and annually
thereafter, the Board shall submit to the President and
Congress a report known as the ``Breakthrough Science Report''
containing recommendations for--
(A) legislation based on the activities of the
Institute; and
(B) policy priorities with respect to supporting
scientific development, which shall take the funding
priorities of the private sector into account.
(3) National academy of sciences report.--Not later than 1
year after the date of the enactment of this section, and
annually thereafter, the National Academy of Sciences shall
submit to Congress a report on the activities of the local
boards, including an analysis of research activities for areas
that did not receive grants from such local boards.
(4) Authorization of appropriations; use of amounts.--
(A) Authorization of appropriations.--To carry out
this section, there is authorized to be appropriated to
the Board--
(i) $67,500,000,000 for fiscal year 2022;
(ii) $72,500,000,000 for fiscal year 2023;
(iii) $77,500,000,000 for fiscal year 2024;
(iv) $82,500,000,000 for fiscal year 2025;
(v) $87,500,000,000 for fiscal year 2026;
(vi) $92,500,000,000 for fiscal year 2027;
(vii) $97,500,000,000 for fiscal year 2028;
(viii) $102,500,000,000 for fiscal year
2029;
(ix) $107,500,000,000 for fiscal year 2030;
and
(x) $112,500,000,000 for fiscal year 2031.
(B) Use of amounts.--Of the amounts made available
to the Board under subparagraph (A) in each fiscal year
to carry out this section not less than--
(i) 12.5 percent shall be used to provide
funds to the Department of Energy;
(ii) 12.5 percent shall be used to provide
funds to the National Science Foundation;
(iii) 12.5 percent shall be used to provide
funds to the National Institutes of Health; and
(iv) 20 percent shall be used to provide
funds to the local boards to carry out the
duties under subsection (d)(3).
(C) Definitions.--In this section:
(i) Certain technology sectors.--The term
``certain technology sectors'' means areas in
technology that relate to the qualified
subjects, which may include the following:
(I) Advanced manufacturing.
(II) Artificial intelligence.
(III) Biotechnology.
(IV) Blockchain technology.
(V) Climate science.
(VI) Computer science.
(VII) Cybersecurity.
(VIII) Material science.
(IX) Medical technology.
(X) Synthetic biology.
(XI) Telecommunications.
(XII) Transportation technology.
(XIII) Virtual reality and
augmented reality.
(ii) Covered region.--The term ``covered
region'' means a physical boundary identified
by a local board and located near an
institution of higher education.
(iii) Hub.--The term ``hub'' means a center
for research in the qualified subjects.
(iv) Qualified subjects.--The term
``qualified subjects'' means mathematics and
the physical, biological, engineering, social,
and chemical sciences.
SEC. 4. PREFERENCE FOR SOFTWARE PRODUCED IN RURAL AREAS AND MINORITY
MAJORITY AREAS.
(a) In General.--Chapter 33 of title 41, United States Code, is
amended by adding at the end the following:
``Sec. 3313. Preference for software produced in rural areas and
minority majority areas
``In awarding a contract for the procurement of software, an agency
shall provide a contracting preference to an offeror who demonstrates
in the bid or proposal of that offeror that at least 10 percent of the
production or development of the software offered in that bid or
proposal occurred in or will occur in--
``(1) a rural area, as that term is defined under section
343(a)(13) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1991(a)(13)); or
``(2) a ZIP Code in which over 50 percent of the residents
of such ZIP Code are minorities, as that term is defined under
section 365 of the Higher Education of 1965 (20 U.S.C.
1067k).''.
(b) Technical Amendment.--The table of sections at the beginning of
chapter 33 of title 41, United States Code, is amended by inserting
after the matter relating to section 3312 the following:
``3313. Preference for software produced in rural areas and minority
majority areas.''.
SEC. 5. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION RULES REQUIRED FOR
EMPLOYERS TO REPORT INFORMATION REGARDING EMPLOYEES.
The Equal Employment Opportunity Commission shall--
(1) initiate a rulemaking proceeding, including notice and
opportunity for public comment, not later than 90 days after
the date of the enactment of this section, and
(2) issue rules not later than 18 months after the date of
the enactment of this section,
to require employers to specify in the periodic employer information
reports submitted to the Commission by each such employer the number of
individuals employed by the employer, the number of individuals
performing services billed hourly by head count or by team for the
employer, the countries in which such respective individuals reside,
and all of the revenue generated by the employer in each such country.
SEC. 6. AMENDMENT TO THE ELEMENTARY AND SECONDARY EDUCATION ACT.
(a) In General.--Section 1111(b)(1)(C) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)(C)) is amended by
striking ``and science'' and inserting ``science, and computer
science''.
(b) Effective Date.--Not later than 5 years after the date of the
enactment of this section, the amendment made by subsection (a) shall
take effect.
(c) Report Required.--Not later than 3 years after the date of the
enactment of this section, each State educational agency shall submit
to the Secretary a report on preparations made by local educational
agencies within the State to implement academic standards for computer
science as required under section 1111(b)(1)(C) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)(C)), as amended
by subsection (a).
SEC. 7. COMPUTER SCIENCE EDUCATION GRANTS.
(a) In General.--Not later than 1 year after the date of the
enactment of this section, the Secretary of Education (referred to in
this section as the ``Secretary'') shall carry out a program known as
the ``Computer Science Education Grant Program'' (referred to in this
section as the ``Program'') to make grants on a competitive basis to
eligible entities to pay the Federal share of the costs of training
teachers and developing computer science curriculum (which includes
data analytics) in accordance with subsection (c).
(b) Applications.--To be eligible to receive a grant under the
Program, an eligible entity shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require.
(c) Requirement for Uses of Grant Funds.--An eligible entity that
receives a grant under the Program shall use grant funds to--
(1) create opportunities for licensed elementary school
teachers to pursue and receive training in computer science for
the purpose of incorporating computer science in the curriculum
and educational material of such teacher;
(2) create opportunities for licensed secondary school
teachers to add computer science endorsements to the license of
each such teacher and to provide computer science learning
experiences that are age-appropriate;
(3) provide assistance to States that do not have computer
science standards for teachers or students to develop such
standards and provide licenses and endorsements with respect to
such standards;
(4) create opportunities for teacher candidates interested
in computer science to complete a full-year residency program
specialized in computer science;
(5) expand access for teachers and students to high-quality
learning materials, including computer equipment and high speed
network infrastructure that supports the study of computer
science;
(6) expand computer science education programs--
(A) at public institutions of higher education; and
(B) for the education of teachers;
(7) create and implement plans for expanding access to
rigorous classes in science, technology, engineering, and math
for underrepresented groups, including minorities, girls, and
youth from low-income families; and
(8) ensure support and resources for students, which may
include mentoring for students traditionally underrepresented
in fields related to science, technology, engineering, and
math.
(d) Priority.--In awarding grants under this section, the Secretary
shall give priority to applicants that demonstrate greater need as
determined by the Secretary.
(e) Evaluation and Report.--An eligible entity that receives a
grant under the Program shall--
(1) conduct an evaluation on the effects of the Program,
including any increase in the ability of teachers to teach
computer science; and
(2) submit to the Secretary a report on such evaluation.
(f) Limitation on Use of Grant Funds.--An eligible entity that
receives a grant under the Program may not use more than 20 percent of
the grant funds to purchase computer equipment and network
infrastructure.
(g) Grant Duration and Amount.--
(1) Duration.--Each grant under this section shall be made
for a period of 5 years.
(2) Amount.--The Secretary shall determine the maximum
amount of each grant under this section.
(h) Federal Share.--The Federal share of a grant under the Program
shall not exceed 90 percent of the costs of carrying out the activities
described in subsection (c).
(i) Supplement, Not Supplant.--An eligible entity shall use a grant
received under the Program only to supplement funds that would, in the
absence of such grant, be made available from other Federal, State, or
local sources for activities supported by the grant, not to supplant
such funds.
(j) Eligible Entity Defined.--The term ``eligible entity'' means--
(1) a State educational agency;
(2) an institution of higher education; and
(3) a local educational agency.
(k) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000,000 for fiscal year
2021.
SEC. 8. SMART STUDENTS EVERYWHERE GRANTS.
(a) Eligible Participants.--
(1) In general.--Section 401A of the Higher Education Act
of 1965 (20 U.S.C. 1070a-1) is amended--
(A) in subsection (a), by inserting ``or graduate''
before ``education'';
(B) in subsection (b)--
(i) in paragraph (1), by striking ``and''
at the end;
(ii) in paragraph (2), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(3) for the first through fourth year in a graduate
program in science, technology, engineering, or mathematics
shall be known as a `SMART Students Everywhere Grant'.'';
(C) by amending subsection (c) to read as follows:
``(c) Definition of Eligible Student.--In this section, the term
`eligible student' means a student who--
``(1) either--
``(A) received a high school diploma from a high
school located in a county that has a college
graduation rate that is below the national average; or
``(B) is a minority student; and
``(2) for the award year for which the determination of
eligibility is made for a grant under this section--
``(A) except with respect to a student described in
clause (C)(vi), is eligible for a Federal Pell Grant;
``(B) is enrolled or accepted for enrollment in an
institution of higher education on not less than a
half-time basis; and
``(C) in the case of a student enrolled or accepted
for enrollment in--
``(i) the first year of a program of
undergraduate education at an institution of
higher education (including a program of not
less than one year for which the institution
awards a certificate)--
``(I) has not been previously
enrolled in a program of undergraduate
education, except as part of a
secondary school program of study; and
``(II) is certified by the
institution of higher education as
pursuing a major in the physical, life,
or computer sciences, mathematics,
technology, or engineering (as
determined by the Secretary pursuant to
regulations); or
``(ii) the second year of a program of
undergraduate education at a two- or four-year
degree-granting institution of higher education
(including a program of not less than two years
for which the institution awards a
certificate), is certified by the institution
of higher education as pursuing a major in a
subject described in clause (i)(II);
``(iii) the third or fourth year of a
program of undergraduate education at a four-
year degree-granting institution of higher
education, is certified by the institution of
higher education to be pursuing a major in a
subject described in clause (i)(II);
``(iv) the third or fourth year of a
program of undergraduate education at an
institution of higher education (as defined in
section 101(a)), if such institution of higher
education demonstrates, to the satisfaction of
the Secretary, that--
``(I) such institution of higher
education offers a single liberal arts
curriculum leading to a baccalaureate
degree, under which students are not
permitted by the institution to declare
a major in a particular subject area,
and the student--
``(aa) studies, in such
years, a subject described in
clause (i)(II) that is at least
equal to the requirements for
an academic major at an
institution of higher education
that offers a baccalaureate
degree in such subject, as
certified by an appropriate
official from such institution;
or
``(bb) is required, as part
of the student's degree
program, to undertake a course
of study in a subject described
in clause (i)(II) which
consists of at least--
``(AA) 4 years of
study in mathematics;
and
``(BB) 3 years of
study in the sciences,
with a laboratory
component in each of
those years; and
``(II) such institution offered
such curriculum prior to February 8,
2006;
``(v) the fifth year of a program of
undergraduate education that requires 5 full
years of coursework, as certified by the
appropriate official of the degree-granting
institution of higher education, for which a
baccalaureate degree is awarded by a degree-
granting institution of higher education, is
certified by such institution of higher
education to be pursuing a major in a subject
described in clause (i)(II); or
``(vi) the first through fourth year of a
graduate program at an institution of higher
education, is certified by such institution of
higher education to be pursuing a graduate
degree (including a program of not less than
two years for which the institution awards a
certificate) in a subject described in clause
(i)(II).'';
(D) in subsection (d)--
(i) in paragraph (1)--
(I) by amending subparagraph (A) to
read as follows:
``(A) In general.--The Secretary shall award a
grant under this section in the amount of--
``(i) $10,000 for an eligible student under
clause (i) through (v) of subsection (c)(2)(C);
and
``(ii) $20,000 for an eligible student
under clause (vi) of subsection (c)(2)(C).'';
(II) in subparagraph (B)(i), by
striking ``a student'' and inserting
``an undergraduate student'' ; and
(III) by adding at the end the
following:
``(C) Reduction for less than full-time graduate
students.--Notwithstanding subparagraph (A), in any
case in which a graduate that attends an institution of
higher education on less than a full-time basis, the
amount of the grant that such a student may receive
shall be reduced in proportion to the degree to which
such student is not so attending on a full-time
basis.'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by
inserting ``or graduate'' after
``undergraduate''; and
(II) in subparagraph (B), by
striking ``subsection (c)(3)'' and
inserting ``subsection (c)(2)(C)''; and
(iii) in paragraph (3), by inserting ``to
an undergraduate student'' before ``in the same
manner''; and
(E) by striking subsections (e), (f), and (g) and
inserting the following:
``(e) Report to Secretary.--An institution of higher education
shall submit to the Secretary a report on the students who receive a
grant under this section, including data disaggregated with respect to
the degree being pursued by such students and (if applicable) the
earnings of such students.
``(f) Funding.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of Education to carry out
this section $5,000,000,000 for fiscal year 2020 and each
fiscal year thereafter.
``(2) Availability of funds.--The amounts made available by
paragraph (1) for any fiscal year shall be available from
October 1 of that fiscal year and remain available through
September 30 of the succeeding fiscal year.
``(3) Technical assistance.--
``(A) In general.--Of the amounts appropriated for
a fiscal year under paragraph (1), the Secretary may
use 1 percent to carry out technical assistance in such
fiscal year to institutions of higher education to
assist such institutions of higher education in
carrying out SMART Students Everywhere Grants.
``(B) Application.--This paragraph shall only apply
to the first 3 years after the date of the enactment of
this paragraph in which--
``(i) amounts are appropriated under
paragraph (1); and
``(ii) SMART Students Everywhere Grants are
awarded under this section.''.
(2) Effective date.--The amendments made by this subsection
shall take effect on the date that is 1 year after the date of
the enactment of this section.
(b) Tax Credit for First-Year Wages of Qualified Recipients of a
SMART Grant.--
(1) In general.--Section 51(d)(1) of the Internal Revenue
Code of 1986 is amended by striking ``or'' at the end of
subparagraph (I), by striking the period at the end of
subparagraph (J) and inserting a comma, and by adding at the
end the following new subparagraph:
``(K) a qualified recipient of a SMART grant.''.
(2) Definitions and special rules.--Section 51(d) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(16) Qualified recipient of a smart grant.--
``(A) In general.--The term `qualified recipient of
a SMART grant' means any individual who is certified by
the designated local agency as a recipient of a SMART
Students Everywhere Grant pursuant to Section 401A of
the Higher Education Act of 1965 (20 U.S.C. 1070a-1)
during the 1-year period ending on the hiring date.
``(B) Special rules for determining amount of
credit.--For purposes of applying this subpart to any
qualified recipient of a SMART grant--
``(i) subsection (a) shall be applied by
substituting `5 percent (10 percent in the case
of any specified recipient of a SMART grant)'
for `40 percent', and
``(ii) subsection (b)(3) shall be applied
by substituting `$50,000' for `$6,000' and all
that follows in such subsection.
``(C) Aggregate credit dollar limitation per
employer.--
``(i) Limitation with respect to qualified
recipients of a smart grant.--The aggregate
credit determined under subsection (a) with
respect to qualified recipients of a SMART
grant (other than specified recipients of a
SMART grant) shall not exceed $10,000 for any
taxable year of the taxpayer.
``(ii) Limitation with respect to specified
recipients of a smart grant.--The aggregate
credit determined under subsection (a) with
respect to specified recipients of a SMART
grant shall not exceed $20,000 for any taxable
year of the taxpayer.
``(D) Specified recipient of a smart grant.--For
purposes of this paragraph--
``(i) In general.--The term `specified
recipient of a SMART grant' means any qualified
recipient of a SMART grant who is certified by
the designated local agency as a veteran (as
defined in paragraph (3)(B)), a minority, or
employed in a designated county.
``(ii) Designated county.--In this
paragraph, the term `designated county' means a
county that has a college graduation rate that
is below the national average.
``(iii) Minority.--In this paragraph, the
term `minority' has the meaning given the term
under section 365 of the Higher Education of
1965 (20 U.S.C. 1067k).''.
(3) Effective date.--The amendments made by this subsection
shall apply to individuals who begin work for the employer
after the date of the enactment of this section.
SEC. 9. DEFINITIONS.
In this Act:
(1) Elementary and secondary education act terms.--The
terms ``institution of higher education'', ``local educational
agency'', and ``State educational agency'' have the meaning
given the terms under section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(2) Secondary and elementary school.--The terms ``secondary
school'' and ``elementary school'' have the meanings given the
terms under section 8101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801).
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