[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1423 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1423

   To amend the Internal Revenue Code of 1986 to exclude from income 
  $40,000 of the salary of certain teachers who teach in high-poverty 
                                schools.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 1999

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to exclude from income 
  $40,000 of the salary of certain teachers who teach in high-poverty 
                                schools.

    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 ``Teacher Tax Relief Act of 1999''.

SEC. 2. EXCLUSION FROM GROSS INCOME OF WAGES OF CERTAIN TEACHERS IN 
              HIGH-POVERTY SCHOOLS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 138 as section 
139 and by inserting after section 137 the following new section:

``SEC. 138. WAGES OF TEACHERS IN HIGH-POVERTY SCHOOLS.

    ``(a) In General.--Gross income does not include amounts received 
as wages by a qualified teacher employed at a high-poverty school.
    ``(b) Limitations.--
            ``(1) Amount of exclusion.--The amount excluded under 
        subsection (a) for any taxable year shall not exceed $40,000.
            ``(2) Adjusted gross income.--The exclusion under 
        subsection (a) shall not apply to any taxpayer whose adjusted 
        gross income for the taxable year exceeds $120,000.
    ``(c) Qualified Teacher Defined.--For purposes of this section--
            ``(1) In general.--The term `qualified teacher' means an 
        academic teacher, a special education teacher, or a bilingual 
        teacher. The term does not include an individual teaching under 
        an emergency or other provisional status in which any State 
        teaching qualification or licensing criteria have been waived.
            ``(2) Academic Teacher.--The term `academic teacher' means 
        an individual who meets all of the following criteria:
                    ``(A) The teacher has performed at a high level on 
                academic subject matter tests, or has a bachelor's 
                degree or higher with an academic major in each of the 
                subjects taught by the teacher.
                    ``(B) The principal of the school where the teacher 
                is assigned asserts that the teacher is qualified to 
                provide instruction in each academic course and in each 
                grade level taught at the school.
                    ``(C) In the case of a teacher of students in 
                elementary school, the teacher must have demonstrated 
                the teaching skill and general subject matter knowledge 
                required to teach effectively in reading, writing, 
                mathematics, social studies, science, and other 
                elements of a liberal arts education.
                    ``(D) In the case of a teacher of students in 
                middle school or secondary school, the teacher must 
                have demonstrated a high level of teaching skill and 
                subject matter knowledge in all of the subject areas 
                that they teach.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Academic subjects.--The term `academic subjects' 
        includes English, language arts, social studies, history, 
        mathematics, science, and related subjects.
            ``(2) High-poverty school.--The term `high-poverty school' 
        means a school in which at least 50 percent of the students 
        attending such school are eligible for free or reduced-cost 
        lunches under the school lunch program established under the 
        National School Lunch Act.
            ``(3) School.--The term `school' means any public school 
        which provides elementary education or secondary education 
        (through grade 12), as determined under State law.
            ``(4) Wages.--The term `wages' has the meaning provided by 
        section 3401(a).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 139 and inserting the following:

                              ``Sec. 138. Wages of teachers in high-
                                        poverty schools.
                              ``Sec. 139. Cross references to other 
                                        Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received in taxable years beginning after December 31, 
1999.
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