[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 402 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 402

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
               elementary and secondary school teachers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 2005

 Mr. Paul (for himself, Mr. Miller of Florida, Ms. Millender-McDonald, 
    Mr. Ryun of Kansas, and Mr. Davis of Tennessee) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
               elementary and secondary school teachers.

    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 Cut Act of 2005''.

SEC. 2. CREDIT FOR TEACHERS OF ELEMENTARY OR SECONDARY SCHOOLS.

    (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. ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to $1,000.
    ``(b) Definitions.--
            ``(1) Eligible individual.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for purposes of subsection (a), the 
                term `eligible individual' means an individual who--
                            ``(i) is a teacher in an elementary or 
                        secondary school, and
                            ``(ii) is employed on a full-time basis for 
                        an academic year ending during the taxable 
                        year.
                    ``(B) Excluded individuals.--Such term does not 
                include an individual who is employed, on a full-time 
                basis for such academic year, as other staff (as 
                defined in section 9101(29) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7801(29))).
            ``(2) Elementary or secondary school.--The term `elementary 
        or secondary school' means any organization described in 
        section 170(b)(1)(A)(ii) which provides education solely at or 
        below the 12th grade.
    ``(c) Cost-of-Living Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2005, the $1000 amount 
        contained in subsection (a) shall be increased by an amount 
        equal to--
                    ``(A) $1000, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `calendar year 
                2004' for `calendar year 1992' in subparagraph (B) 
                thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $10, such increase shall be rounded to 
        the next highest multiple of $10. In the case of a married 
        individual (as determined under section 7703) filing a separate 
        return, the preceding sentence shall be applied by substituting 
        `$5' for `$10' each place it appears.
    ``(d) Regulations.--The Secretary shall prescribe regulations to 
carry out this section, including regulations providing for claiming 
the credit under this section on Form 1040EZ.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25B the following new 
item:

``Sec. 25C. Elementary and secondary school teachers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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