[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1414 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1414
To provide incentives for States to establish and administer periodic
testing and merit pay programs for elementary school and secondary
school teachers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 10, 2001
Mr. Craig introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To provide incentives for States to establish and administer periodic
testing and merit pay programs for elementary school and secondary
school teachers, 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 ``Parent and Teacher Achievement Act
of 2001''.
SEC. 2. STATE INCENTIVES FOR TEACHER TESTING AND MERIT PAY.
(a) Amendments.--Title II of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6601 et seq.) is amended--
(1) by redesignating part E as part F;
(2) by redesignating sections 2401 and 2402 as sections
2501 and 2502, respectively; and
(3) by inserting after part D the following:
``PART E--STATE INCENTIVES FOR TEACHER TESTING AND MERIT PAY
``SEC. 2401. STATE INCENTIVES FOR TEACHER TESTING AND MERIT PAY.
``(a) State Awards.--From funds made available under subsection (b)
for a fiscal year, the Secretary shall make an award to each State
that--
``(1) administers a test to each elementary school and
secondary school teacher in the State, with respect to the
subjects taught by the teacher, every 3 to 5 years;
``(2) has an elementary school and secondary school teacher
compensation system that is based on merit; and
``(3) requires elementary school and secondary school
teachers to earn continuing education credits as part of a
State recertification process.
``(b) Available Funding.--Notwithstanding any other provision of
law, the amount of funds that are available to carry out this section
for a fiscal year is 50 percent of the amount of funds appropriated to
carry out this title that are in excess of the amount so appropriated
for fiscal year 2001, except that no funds shall be available to carry
out this section for any fiscal year for which--
``(1) the amount appropriated to carry out this title
exceeds $600,000,000; or
``(2) each of the several States is eligible to receive an
award under this section.
``(c) Award Amount.--A State shall receive an award under this
section in an amount that bears the same relation to the total amount
available for awards under this section for a fiscal year as the number
of States that are eligible to receive such an award for the fiscal
year bears to the total number of all States so eligible for the fiscal
year.
``(d) Use of Funds.--Funds provided under this section may be used
by States to carry out the activities described in section 2207.
``(e) Definition of State.--In this section, the term `State' means
each of the 50 States and the District of Columbia.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2001.
SEC. 3. TEACHER TESTING AND MERIT PAY.
(a) In General.--Notwithstanding any other provision of law, a
State may use Federal education funds--
(1) to carry out a test of each elementary school or
secondary school teacher in the State with respect to the
subjects taught by the teacher; or
(2) to establish a merit pay program for the teachers.
(b) Definitions.--In this section, the terms ``elementary school''
and ``secondary school'' have the meanings given the terms in section
14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
8801).
SEC. 4. NONREFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL
EXPENSES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25B the
following new section:
``SEC. 25C. CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL EXPENSES.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the qualified elementary and
secondary education expenses (within the meaning of section 530(b)(4))
with respect to one or more qualifying students which are paid or
incurred by the individual during such taxable year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed by subsection (a)
for any taxable year shall not exceed $1000 per qualifying
student.
``(2) Maximum tuition expenses.--The tuition expenses which
may be taken into account in determining qualified elementary
and secondary education expenses for any taxable year shall not
exceed $500 per qualifying student.
``(c) Qualifying Student.--For purposes of this section, the term
`qualifying student' means a dependent (within the meaning of section
152) or a relative of the taxpayer who is enrolled in school (as
defined in section 530(b)(4)(B)) on a full-time basis. For purposes of
the preceding sentence, the term `relative' means an individual bearing
a relationship to the taxpayer which is described in any of paragraphs
(1) through (8) of section 152(a).
``(d) Denial of Double Benefit.--No deduction or exclusion shall be
allowed under this chapter for any expense for which credit is allowed
under this section.
``(e) Election To Have Credit Not Apply.--A taxpayer may elect to
have this section not apply for any taxable year.''.
(b) Conforming Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25B the
following new item:
``Sec. 25C. Credit for elementary and
secondary school expenses.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 5. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF ELEMENTARY AND
SECONDARY SCHOOLS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits) is
amended by adding at the end the following new section:
``SEC. 30B. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF ELEMENTARY AND
SECONDARY SCHOOLS.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 75 percent of the qualified charitable contributions of the
taxpayer for the taxable year.
``(b) Maximum Credit.--
``(1) Individuals.--In the case of a taxpayer other than a
corporation, the credit allowed by subsection (a) for any
taxable year shall not exceed $500 ($1,000 in the case of a
joint return).
``(2) Corporations.--In the case of a corporation, the
credit allowed by subsection (a) shall not exceed $100,000.
``(c) Qualified Charitable Contribution.--For purposes of this
section--
``(1) In general.--The term `qualified charitable
contribution' means, with respect to any taxable year, the
aggregate amount allowable as a deduction under section 170
(determined without regard to subsection (d)(1)) for cash
contributions to a school tuition organization.
``(2) School tuition organization.--
``(A) In general.--The term `school tuition
organization' means any organization which--
``(i) is described in section 170(c)(2),
``(ii) allocates at least 90 percent of its
gross income and contributions and gifts to
elementary and secondary school scholarships,
and
``(iii) awards scholarships to any student
who is eligible for free or reduced cost lunch
under the school program established under the
Richard B. Russell National School Lunch Act.
``(B) Elementary and secondary school
scholarship.--The term `elementary and secondary school
scholarship' means any scholarship excludable from
gross income under section 117 for expenses related to
education at or below the 12th grade.
``(d) Special Rules.--
``(1) Denial of double benefit.--No deduction shall be
allowed under this chapter for any contribution for which
credit is allowed under this section.
``(2) Application with other credits.--The credit allowable
under subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the regular tax for the taxable year, reduced
by the sum of the credits allowable under subpart A and
the preceding sections of this subpart, over
``(B) the tentative minimum tax for the taxable
year.
``(3) Controlled groups.--All persons who are treated as
one employer under subsection (a) or (b) of section 52 shall be
treated as 1 taxpayer for purposes of this section.
``(e) Election To Have Credit Not Apply.--A taxpayer may elect to
have this section not apply for any taxable year.''.
(b) Conforming Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 30B. Credit for contributions for
the benefit of elementary and
secondary schools.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 6. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO PROVIDE
CLASSROOM MATERIALS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits), as
amended by section 4(a), is amended by adding at the end the following
new section:
``SEC. 30C. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO
PROVIDE CLASSROOM MATERIALS.
``(a) Allowance of Credit.--In the case of an eligible educator,
there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the qualified
elementary and secondary education expenses which are paid or incurred
by the taxpayer during such taxable year.
``(b) Maximum Credit.--The credit allowed by subsection (a) for any
taxable year shall not exceed $1,000.
``(c) Definitions.--
``(1) Eligible educator.--The term `eligible educator'
means an individual who is a teacher, instructor, counselor,
principal, or aide in a school (as defined in section
530(b)(4)(B)) for at least 900 hours during a school year.
``(2) Qualified elementary and secondary education
expenses.--The term `qualified elementary and secondary
education expenses' means expenses for books, supplies (other
than nonathletic supplies for courses of instruction in health
or physical education), computer equipment (including related
software and services) and other equipment, and supplementary
materials used by an eligible educator in the classroom.
``(d) Special Rules.--
``(1) Denial of double benefit.--No deduction shall be
allowed under this chapter for any expense for which credit is
allowed under this section.
``(2) Application with other credits.--The credit allowable
under subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the regular tax for the taxable year, reduced
by the sum of the credits allowable under subpart A and
the preceding sections of this subpart, over
``(B) the tentative minimum tax for the taxable
year.
``(e) Election To Have Credit Not Apply.--A taxpayer may elect to
have this section not apply for any taxable year.''.
(b) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986, as amended by section 4(b), is amended by adding at the end the
following new item:
``Sec. 30C. Credit to elementary and
secondary school teachers who
provide classroom materials.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 7. ADJUSTED GROSS INCOME DETERMINED BY TAKING INTO ACCOUNT
PROFESSIONAL DEVELOPMENT EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) In General.--Section 62(a)(2) of the Internal Revenue Code of
1986 (relating to certain trade and business deductions of employees)
is amended by adding at the end the following:
``(D) Professional development expenses of
elementary and secondary school teachers.--The
deductions allowed by section 162 which consist of
expenses, not in excess of $1,500, paid or incurred by
an eligible educator (as defined section 30C(c)(1)) by
reason of the participation of the educator in
professional development courses which are related to
the curriculum and academic subjects in which the
educator provides instruction or to the students for
which the educator provides instruction and which are
part of a program of professional development which is
approved and certified by the appropriate local
educational agency (as defined by section 14101 of the
Elementary and Secondary Education Act of 1965, as in
effect on the date of the enactment of this
subparagraph).''.
(b) Special Rules.--Section 62 of the Internal Revenue Code of 1986
is amended by adding at the end the following:
``(d) Special Rules.--A deduction shall be allowed under subsection
(a)(2)(D) for expenses only to the extent the amount of such expenses
exceeds the amount excludable under section 135, 529(c)(1), or
530(d)(2) for the taxable year.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
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