[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 225 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 225

  To amend the Internal Revenue Code of 1986 to provide incentives to 
  public elementary and secondary school teachers by providing a tax 
 credit for teaching expenses, professional development expenses, and 
                        student education loans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 31, 2001

  Mr. Warner 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 incentives to 
  public elementary and secondary school teachers by providing a tax 
 credit for teaching expenses, professional development expenses, and 
                        student education loans.

    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 Credit Act''.

SEC. 2. CREDIT FOR TEACHING EXPENSES, PROFESSIONAL DEVELOPMENT 
              EXPENSES, AND INTEREST ON HIGHER EDUCATION LOANS OF 
              PUBLIC ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (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 25A the 
following new section:

``SEC. 25B. TEACHING EXPENSES, PROFESSIONAL DEVELOPMENT EXPENSES, AND 
              INTEREST ON HIGHER EDUCATION LOANS OF PUBLIC ELEMENTARY 
              AND SECONDARY SCHOOL TEACHERS.

    ``(a) Allowance of Credit.--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 an amount equal to the sum of--
            ``(1) the qualified education expenses paid or incurred by 
        the taxpayer during the taxable year,
            ``(2) the qualified professional development expenses paid 
        or incurred by the taxpayer during the taxable year, and
            ``(3) interest paid by the taxpayer during the taxable year 
        on any qualified education loan.
    ``(b) Maximum Credit.--The credit allowed by subsection (a) for the 
taxable year shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible teacher.--The term `eligible teacher' means 
        an individual who is a kindergarten through grade 12 classroom 
        teacher, instructor, counselor, aide, or principal in a public 
        elementary or secondary school on a full-time basis for an 
        academic year ending during a taxable year.
            ``(2) Elementary and secondary schools.--The terms 
        `elementary school' and `secondary school' have the respective 
        meanings given such terms by section 14101 of the Elementary 
        and Secondary Education Act of 1965, as in effect of the date 
        of enactment of this section.
            ``(3) Qualified education expenses.--The term `qualified 
        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 teacher in the classroom.
            ``(4) Qualified professional development expenses.--
                    ``(A) In general.--The term `qualified professional 
                development expenses' means expenses--
                            ``(i) for tuition, fees, books, supplies, 
                        and equipment required for the enrollment or 
                        attendance of an individual in a qualified 
                        course of instruction, and
                            ``(ii) with respect to which a deduction is 
                        allowable under section 162 (determined without 
                        regard to this section).
                    ``(B) Qualified course of instruction.--The term 
                `qualified course of instruction' means a course of 
                instruction which--
                            ``(i) directly relates to the curriculum 
                        and academic subjects in which an eligible 
                        teacher provides instruction,
                            ``(ii) is designed to enhance the ability 
                        of an eligible teacher to understand and use 
                        State standards for the academic subjects in 
                        which such teacher provides instruction,
                            ``(iii) provides instruction in how to 
                        teach children with different learning styles, 
                        particularly children with disabilities and 
                        children with special learning needs (including 
                        children who are gifted and talented),
                            ``(iv) provides instruction in how best to 
                        discipline children in the classroom and 
                        identify early and appropriate interventions to 
                        help children described clause (iii) learn, or
                            ``(v) is tied to strategies and programs 
                        that demonstrate effectiveness in increasing 
                        student academic achievement and student 
                        performance, or substantially increasing the 
                        knowledge and teaching skills of the eligible 
                        teacher.
            ``(5) Qualified education loan.--The term `qualified 
        education loan' has the meaning given such term by section 
        221(e)(1), but only with respect to qualified higher education 
        expenses of the taxpayer.
    ``(d) Denial of Double Benefit.--
            ``(1) In general.--No deduction or other credit shall be 
        allowed under this chapter for any amount taken into account 
        for which credit is allowed under this section.
            ``(2) Coordination with exclusions.--A credit shall be 
        allowed under subsection (a) for qualified professional 
        development 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.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect to 
have this section not apply for any taxable year.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the provisions of this section.''.
    (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 25A the 
following new item:

                              ``Sec. 25B. Teaching expenses, 
                                        professional development 
                                        expenses, and interest on 
                                        higher education loans of 
                                        public elementary and secondary 
                                        school teachers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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