[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 904 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 904

To amend the Internal Revenue Code of 1986 to provide an above-the-line 
deduction for qualified professional development expenses of elementary 
and secondary school teachers and to allow a credit against income tax 
   to elementary and secondary school teachers who provide classroom 
                               materials.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 16 (legislative day, May 15), 2001

 Ms. Collins (for herself, Mr. Warner, Ms. Landrieu, Mr. Cochran, Mr. 
  Allen, and Mr. Hatch) 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 an above-the-line 
deduction for qualified professional development expenses of elementary 
and secondary school teachers and to allow a credit against income tax 
   to elementary and secondary school teachers who provide classroom 
                               materials.

    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 Relief Act of 2001''.

SEC. 2. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED PROFESSIONAL DEVELOPMENT 
              EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) Deduction Allowed.--Part VII of subchapter B of chapter 1 of 
the Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 222 as 
section 223 and by inserting after section 221 the following new 
section:

``SEC. 222. QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES.

    ``(a) Allowance of Deduction.--In the case of an eligible educator, 
there shall be allowed as a deduction an amount equal to the qualified 
professional development expenses paid or incurred by the taxpayer 
during the taxable year.
    ``(b) Maximum Deduction.--The deduction allowed under subsection 
(a) for any taxable year shall not exceed $500.
    ``(c) Qualified Professional Development Expenses of Eligible 
Educators.--For purposes of this section--
            ``(1) Qualified professional development expenses.--
                    ``(A) In general.--The term `qualified professional 
                development expenses' means expenses for tuition, fees, 
                books, supplies, equipment, and transportation required 
                for the enrollment or attendance of an individual in a 
                qualified course of instruction.
                    ``(B) Qualified course of instruction.--The term 
                `qualified course of instruction' means a course of 
                instruction which--
                            ``(i) is--
                                    ``(I) directly related to the 
                                curriculum and academic subjects in 
                                which an eligible educator provides 
                                instruction,
                                    ``(II) designed to enhance the 
                                ability of an eligible educator to 
                                understand and use State standards for 
                                the academic subjects in which such 
                                educator provides instruction,
                                    ``(III) designed to provide 
                                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), or
                                    ``(IV) designed to provide 
                                instruction in how best to discipline 
                                children in the classroom and identify 
                                early and appropriate interventions to 
                                help children described in subclause 
                                (III) to learn,
                            ``(ii) is tied to--
                                    ``(I) challenging State or local 
                                content standards and student 
                                performance standards, or
                                    ``(II) strategies and programs that 
                                demonstrate effectiveness in increasing 
                                student academic achievement and 
                                student performance, or substantially 
                                increasing the knowledge and teaching 
                                skills of an eligible educator,
                            ``(iii) is of sufficient intensity and 
                        duration to have a positive and lasting impact 
                        on the performance of an eligible educator in 
                        the classroom (which shall not include 1-day or 
                        short-term workshops and conferences), except 
                        that this clause shall not apply to an activity 
                        if such activity is 1 component described in a 
                        long-term comprehensive professional 
                        development plan established by an eligible 
                        educator and the educator's supervisor based 
                        upon an assessment of the needs of the 
                        educator, the students of the educator, and the 
                        local educational agency involved, and
                            ``(iv) is part of a program of professional 
                        development which is approved and certified by 
                        the appropriate local educational agency as 
                        furthering the goals of the preceding clauses.
                    ``(C) Local educational agency.--The term `local 
                educational agency' has the meaning given such term by 
                section 14101 of the Elementary and Secondary Education 
                Act of 1965, as in effect on the date of the enactment 
                of this section.
            ``(2) Eligible educator.--
                    ``(A) In general.--The term `eligible educator' 
                means an individual who is a kindergarten through grade 
                12 teacher, instructor, counselor, principal, or aide 
                in an elementary or secondary school for at least 900 
                hours during a school year.
                    ``(B) Elementary or secondary school.--The terms 
                `elementary school' and `secondary school' have the 
                meanings given such terms by section 14101 of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 8801), as so in effect.
    ``(d) Denial of Double Benefit.--
            ``(1) In general.--No other deduction or credit shall be 
        allowed under this chapter for any amount taken into account 
        for which a deduction is allowed under this section.
            ``(2) Coordination with exclusions.--A deduction 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.''.
    (b) Deduction Allowed in Computing Adjusted Gross Income.--Section 
62(a) of the Internal Revenue Code of 1986 is amended by inserting 
after paragraph (17) the following new paragraph:
            ``(18) Qualified professional development expenses.--The 
        deduction allowed by section 222.''.
    (c) Conforming Amendments.--
            (1) Sections 86(b)(2), 135(c)(4), 137(b)(3), and 219(g)(3) 
        of the Internal Revenue Code of 1986 are each amended by 
        inserting ``222,'' after ``221,''.
            (2) Section 221(b)(2)(C) of such Code is amended by 
        inserting ``222,'' before ``911''.
            (3) Section 469(i)(3)(E) of such Code is amended by 
        striking ``and 221'' and inserting ``, 221, and 222''.
            (4) The table of sections for part VII of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 222 and inserting the following new items:

                              ``Sec. 222. Qualified professional 
                                        development expenses.
                              ``Sec. 223. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 3. 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) is 
amended by adding at the end the following new section:

``SEC. 30B. 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 50 percent of 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 $250.
    ``(c) Definitions.--
            ``(1) Eligible educator.--The term `eligible educator' has 
        the same meaning given such term in section 222(c).
            ``(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.
            ``(3) Elementary or secondary school.--The term `elementary 
        or secondary school' means any school which provides elementary 
        education or secondary education (through grade 12), as 
        determined under State law.
    ``(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 is amended by adding at the end the following new item:

                              ``Sec. 30B. 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.
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