article: SECTION 1. SHORT TITLE. This Act may be cited as the ``National Education Technology Corps Act'' or as the ``NET Corps Act''. SEC. 2. FINDINGS. Congress finds the following: (1) Elementary and secondary school students who receive regular access in school to Internet-accessible computers enjoy higher quality educational opportunities and are better prepared to succeed in college or the workplace. (2) Local educational agencies have made extraordinary gains in the acquisition of computers and other information technology equipment for schools. The Department of Education reported in January 2001 that each school contains on average 100 computers. In 1999, 63 percent of school rooms used for the instruction of students had access to the Internet. (3) However, local educational agencies are dedicating almost all of their information technology resources to equipment acquisition, while information technology training for teachers and other school staff receives little financial support. A CEO Forum on Education and Technology study indicated that, in the 1997-1998 school year, schools expended just five percent of their information technology budget on teacher training. (4) The Department of Education reported in 1999 that only 33 percent of public school teachers with access to computers and the Internet indicated that they were ``well prepared'' to integrate the use of computers and the Internet into their instruction. (5) As new information technologies are introduced into classrooms, teachers will need regular access to professional technology training. (6) The Corporation for National and Community Service established by section 191 of the National and Community Service Act of 1990 (42 U.S.C. 12651) has a proven record of mobilizing the most intelligent, qualified, and altruistic members of our communities for the purpose of meeting our Nation's most urgent needs. (7) The Volunteers in Service to America program, commonly known as VISTA, which is administered by the Corporation to efforts to eliminate and alleviate poverty and poverty-related problems in the United States, would provide a ready means to facilitate the expanded use of information technology in schools, libraries, and community centers, particularly in low- income areas, and to provide information technology training for teachers and administrators of school, library, and community center information technology networks. SEC. 3. CREATION OF NATIONAL EDUCATION TECHNOLOGY CORPS AS A PART OF VISTA. The Domestic Volunteer Service Act of 1973 is amended by inserting after section 109 (42 U.S.C. 4959) the following new section: ``SEC. 109A. NATIONAL EDUCATION TECHNOLOGY CORPS. ``(a) Establishment.--As part of the Volunteers in Service to America program established under this part, the Director shall establish a National Education Technology Corps for the purpose of developing, strengthening, supplementing, and expanding efforts of the Federal Government, State and local governments, and public and nonprofit organizations to mobilize local, State, Federal, and private sector financial and volunteer resources-- ``(1) to improve the ability of teachers, staff, students, and other persons to use information technology in schools, libraries, and community centers; ``(2) to provide information technology training for teachers so that teachers can incorporate the use of computers and other information technologies in classroom instruction; and ``(3) to provide technical support to administrators of school, library, and community center information technology networks. ``(b) Recruitment of Volunteers.-- ``(1) Eligibility criteria.--In establishing the recruitment procedures under section 103(b) applicable to the selection and placement of volunteers for service in the National Education Technology Corps, the Director shall limit selection to individuals-- ``(A) who already have sufficient experience or expertise regarding information technology and its uses to permit their prompt participation in the types of activities described in subsection (a); or ``(B) who, with minimal additional training (as determined by the Director), would be ready to participate in such activities. ``(2) Relationship to americorps.--A participant in a national service program assisted under subtitle C of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.), commonly known as the Americorps program, may be selected to also serve in the National Education Technology Corps if the participant meets the eligibility criteria in paragraph (2). ``(c) Placement.-- ``(1) In general.--The Director shall assign volunteers selected for the National Education Technology Corps to projects and programs that utilize volunteers to perform the types of activities described in subsection (a). Such programs and projects may be administered by public or private nonprofit agencies and organizations, community-based nonprofit organizations, local and State education agencies, local and State agencies administering information technology programs, educational institutions, libraries, and local, municipal, and State governmental entities. ``(2) Technology plan.--A volunteer serving in the National Education Technology Corps may not be assigned to a school to perform services described in subsection (a) unless the school, or a local educational agency on behalf of the school, submits to the Director a technology plan that-- ``(A) outlines the goals for the school's education technology; and ``(B) complies with such guidelines as the Director may establish. ``(3) Placement priority.--In the assignment of volunteers under this section, the Director shall give priority consideration to programs and projects to assist schools that-- ``(A) are located in urban or rural areas with the highest concentrations of illiteracy and of low income individuals and families; or ``(B) have been unable to secure assistance for information technology improvements and training from other sources. ``(d) Partnerships With Qualified Nonprofit Organizations.--The Director is authorized and encouraged to enter into partnerships with qualified nonprofit organizations that undertake the types of services described in subsection (a) for schools, libraries, and community centers to support and expand the efforts of these organizations. ``(e) Coordination With Department of Education.--The Director shall coordinate with the Secretary of Education in the training of volunteers for the National Education Technology Corps to ensure that the activities undertaken by the volunteers under this section is consistent with the educational needs of schools. ``(f) Agreements with Private Sector.--The Director may enter into an agreement with a private sector business under which an employee of the business who has experience or expertise regarding information technology and its uses will assist, without financial remuneration from the Director, on a full-time or part-time basis-- ``(1) the National Education Technology Corps and programs and projects that receive volunteers to undertake the types of activities described in subsection (a); and ``(2) the Director in the training of National Education Technology Corps volunteers. ``(g) Effect of Funding Reduction.--In any fiscal year in which the services provided under this part are reduced, the services provided under this section shall be proportionately reduced.''. SEC. 4. INCOME TAX CREDIT FOR ASSISTANCE PROVIDED TO NATIONAL EDUCATION TECHNOLOGY CORPS. (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by inserting after section 45D the following new section: ``SEC. 45E. NATIONAL EDUCATION TECHNOLOGY CORPS ASSISTANCE. ``(a) General Rule.--For purposes of section 38, the National Education Technology Corps assistance credit determined under this section for the taxable year is an amount equal to 20 percent of the sum of -- ``(1) the wages paid or incurred by the taxpayer during the taxable year for qualified employee services, and ``(2) the amount allowed as a deduction under section 170 for the taxable year for qualified contributions. ``(b) Maximum Credit.-- ``(1) National limitation.--The amount of credit determined under this section for all taxable years beginning in a calendar year shall not exceed $75,000,000. ``(2) Taxpayer limitation.--The amount of credit determined under this section for a taxpayer for a taxable year shall not exceed the portion of the national limitation under paragraph (1) for the calendar year in which such taxable year begins which is allocated by the National Education Technology Corps to such taxpayer for such year. ``(3) Per employee limit.--The credit determined under this section with respect to services performed by an employee during a taxable year shall not exceed $25,000 (or such lesser amount determined under paragraph (2)). ``(c) Definitions.--For purposes of this section-- ``(1) Qualified employee services.--The term `qualified employee services' means any service furnished by an employee of the taxpayer through the National Education Technology Corps, either directly as a volunteer in the National Education Technology Corps or as a participant in a National Education Technology Corps partnership entered into under section 109A(d) of the Domestic Volunteer Service Act of 1973. ``(2) Qualified contribution.--The term `qualified contribution' means any contribution of tangible personal property to or for the benefit of the National Education Technology Corps. ``(3) Wages.--The term `wages' has the meaning given to such term by section 51. ``(d) Controlled Groups.--Rules similar to the rules of section 1397(b) shall apply for purposes of this section.''. (b) Denial of Double Benefit.--Subsection (a) of section 280C of such Code is amended by inserting ``45E(a),'' after ``45A(a),''. (c) Credit Made Part of General Business Credit.-- (1) In general.--Subsection (b) of section 38 of such Code (relating to current year business credit) is amended by striking ``plus'' at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting ``, plus'', and by adding at the end thereof the following new paragraph: ``(14) the National Education Technology Corps assistance credit determined under section 45E(a).''. (2) Limitation on carryback.--Subsection (d) of section 39 of such Code is amended by adding at the end the following new paragraph: ``(10) No carryback of national education technology corps assistance credit before effective date.--No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 45E may be carried back to any taxable year ending before the date of the enactment of this paragraph.''. (3) Deduction for certain unused business credits.-- Subsection (c) of section 196 of such Code is amended by striking ``and'' at the end of paragraph (8), by striking the period at the end of paragraph (9) and inserting ``, and'', and by adding after paragraph (9) the following new paragraph: ``(10) the National Education Technology Corps assistance credit determined under section 45E.''. (d) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45D the following new item: ``Sec. 45E. National Education Technology Corps assistance.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
summary: National Education Technology Corps Act (NET Corps Act) - Amends the Domestic Volunteer Service Act of 1973 to establish a National Education Technology Corps (NET Corps) as part of the Volunteers in Service to America (VISTA) program, using VISTA volunteers and others with appropriate expertise, in partnerships to facilitate use of information technology in schools, libraries, and community centers.Amends the Internal Revenue Code to establish a business-related tax credit for employers for assistance to the NET Corps through their employees' services either as volunteers or as participants in partnerships.