This report submitted to the Congress from the Committee on Human Resources contains the Career Education Incentive Act, a bill which provides federal financial incentives to states to develop, implement, and strengthen career education programs. A summary of the bill follows a chronological review of the legislation's consideration in Congress. Also presented are the committee's views, including the following information: definition of career education; need for career education; history of career education; accomplishments of career education; and need for more extensive federal support. The provisions of the bill are explained under the following categories: purpose, authorizations, allotments, within-state distribution, applications, state plan, use of funds, model programs, career education information, evaluation, postsecondary education demonstration projects, payments, administration, and definitions. Cost estimates are given, and regulatory impact evaluation is explained. The votes the bill received in the committee are designated, and a section-by-section analysis of the bill's sixteen sections is presented. Finally, changes in the existing law (Education Amendments of 1974, Title IV, Section 406) are described. (BM)