[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2479 Introduced in Senate (IS)]

  2d Session
                                S. 2479

  To amend the Internal Revenue Code of 1986 to provide a refundable 
 credit against income tax to certain elementary and secondary school 
 teachers who receive advanced certification and to exclude from gross 
           income certain amounts received by such teachers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2000

 Ms. Landrieu 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 provide a refundable 
 credit against income tax to certain elementary and secondary school 
 teachers who receive advanced certification and to exclude from gross 
           income certain amounts received by such teachers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTIFIED TEACHER CREDIT.

    (a) Findings.--Congress makes the following findings:
            (1) Studies have shown that the greatest single in-school 
        factor affecting student achievement is teacher quality.
            (2) Most accomplished teachers do not get the rewards they 
        deserve.
            (3) After adjusting amounts for inflation, the average 
        teacher salary for 1997-1998 of $39,347 is just $2 above what 
        it was in 1993. Such salary is also just $1,924 more than the 
        average salary recorded in 1972, a real increase of only $75 
        per year.
            (4) While K-12 enrollments are steadily increasing, the 
        teacher population is aging. There is a need, now more than 
        ever, to attract competent, capable, and bright college 
        graduates or mid-career professionals to the teaching 
        profession.
            (5) The Department of Education projects that 2,000,000 new 
        teachers will have to be hired in the next decade. Shortages, 
        if they occur, will most likely be felt in urban or rural 
        regions of the country where working conditions may be 
        difficult or compensation low.
            (6) If students are to receive a high quality education and 
        remain competitive in the global market the United States must 
        attract talented and motivated people to the teaching 
        profession in large numbers.
    (b) Allowance of Credit.--Subpart C of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to refundable 
credits) is amended by redesignating section 35 as section 36 and by 
inserting after section 34 the following new section:

``SEC. 35. CERTIFIED TEACHER CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an eligible teacher, 
        there shall be allowed as a credit against the tax imposed by 
        this chapter for the taxable year $5,000.
            ``(2) Year credit allowed.--The credit under paragraph (1) 
        shall be allowed in the taxable year in which the taxpayer 
        becomes a certified individual.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible teacher.--
                    ``(A) In general.--The term `eligible teacher' 
                means a certified individual who is a pre-kindergarten 
                or early childhood educator, or a kindergarten through 
                grade 12 classroom teacher, instructor, counselor, 
                aide, or principal in an elementary or secondary school 
                on a full-time basis for an academic year ending during 
                a taxable year.
                    ``(B) Certified individual.--The term `certified 
                individual' means an individual who has successfully 
                completed the requirements for advanced certification 
                provided by the National Board for Professional 
                Teaching Standards.
            ``(2) Elementary or secondary school.--The term `elementary 
        or secondary school' means a public elementary or secondary 
        school which--
                    ``(A) is located in a school district of a local 
                educational agency which is eligible, during the 
                taxable year, for assistance under part A of title I of 
                the Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq.), and
                    ``(B) during the taxable year, the Secretary of 
                Education determines to have an enrollment of children 
                counted under section 1124(c) of such Act (20 U.S.C. 
                6333(c)) in an amount in excess of an amount equal to 
                40 percent of the total enrollment of such school.
    ``(c) Verification.--The credit allowed under subsection (a) shall 
be allowed with respect to any certified individual only if the 
certification is verified in such manner as the Secretary shall 
prescribe by regulation.
    ``(d) Election To Have Credit Not Apply.--A taxpayer may elect to 
have this section not apply for any taxable year.''.
    (c) Exclusion From Income for Certain Amounts.--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 139 as section 140 and inserting after section 
138 the following new section:

``SEC. 139. CERTAIN AMOUNTS RECEIVED BY CERTIFIED TEACHERS.

    ``(a) In General.--In the case of a certified teacher, gross income 
shall not include the value of anything received during the taxable 
year solely by reason of such teacher having successfully completed the 
requirements for advanced certification provided by the National Board 
for Professional Teaching Standards (such as an incentive payment).
    ``(b) Certified Teacher.--For purposes of this section, the term 
`certified teacher' has the meaning given the term `eligible teacher' 
under section 35(b)(1).
    ``(c) Verification.--The exclusion under subsection (a) shall be 
allowed with respect to any certified teacher only if the certification 
is verified in such manner as the Secretary shall prescribe by 
regulation.
    ``(d) Amounts Must Be Reasonable.--Amounts excluded under 
subsection (a) shall include only amounts which are reasonable.''.
    (d) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by striking ``or'' before ``enacted'' and by inserting 
        before the period at the end ``, or from section 35 of such 
        Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the item relating to section 35 and 
        inserting the following:

                              ``Sec. 35. Certified teacher credit.
                              ``Sec. 36. Overpayments of tax.''
            (3) 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 new items:

``Sec. 139. Certain amounts received by certified teachers.
``Sec. 140. Cross references to other Acts.''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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