[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 438 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 438

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
 professional school personnel in early childhood education, to expand 
  the deduction for certain expenses of teachers to teachers in early 
   childhood education, and to modify the credit for dependent care 
                               services.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2013

Mr. Reid (for Mr. Begich) 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 tax credit for 
 professional school personnel in early childhood education, to expand 
  the deduction for certain expenses of teachers to teachers in early 
   childhood education, and to modify the credit for dependent care 
                               services.

    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 ``Tax Credit for Early Educators Act 
of 2013''.

SEC. 2. TAX CREDIT FOR PROFESSIONAL SCHOOL PERSONNEL IN EARLY CHILDHOOD 
              EDUCATION.

    (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 25D the 
following new section:

``SEC. 25E. PROFESSIONAL SCHOOL PERSONNEL IN EARLY CHILDHOOD EDUCATION.

    ``(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 $3,000.
    ``(b) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means any 
        individual--
                    ``(A) who is employed in a position which involves 
                regular contact with students in an early childhood 
                school or program, and
                    ``(B) whose position involves the formulation or 
                implementation of the educational program for such 
                school or program.
            ``(2) Early childhood school or program.--The term `early 
        childhood school or program' means any school or program which 
        provides early childhood education, as determined under State 
        law.
    ``(c) Cost-of-Living Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2013, the $3,000 amount 
        contained in subsection (a) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, 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 
                2012' 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 increased 
        to the next highest multiple of $10.''.
    (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 25D the following new 
item:

``Sec. 25E. Professional school personnel in early childhood 
                            education.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

SEC. 3. DEDUCTION FOR CERTAIN EXPENSES OF EARLY CHILDHOOD, PRESCHOOL, 
              ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) of the 
Internal Revenue Code of 1986 (relating to certain expenses of 
elementary and secondary school teachers) is amended to read as 
follows:
                    ``(D) Certain expenses of early childhood, 
                preschool, elementary and secondary school teachers.--
                In the case of taxable years beginning before 2018, the 
                deductions allowed by section 162 which consist of 
                expenses, not in excess of the applicable amount, paid 
                or incurred by an eligible educator in connection with 
                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 the eligible educator 
                in the classroom.''.
    (b) Definitions.--Subsection (d) of section 62 of such Code 
(relating to definition; special rules) is amended to read as follows:
    ``(d) Definitions Relating to Early Childhood, Preschool, 
Elementary and Secondary School Teachers.--For purposes of subsection 
(a)(2)(D) and this subsection--
            ``(1) Applicable amount.--The term `applicable amount' 
        means--
                    ``(A) $500 in the case of a full-time educator, and
                    ``(B) $250 in any other case.
            ``(2) Eligible educator.--The term `eligible educator' 
        means, with respect to any taxable year, an individual who is--
                    ``(A) a kindergarten through grade 12 teacher, 
                instructor, counselor, principal, or aide in a school 
                for at least 450 hours during a school year which ends 
                during such taxable year, or
                    ``(B) a teacher, instructor, counselor, or aid in a 
                preschool or early childhood program for at least 450 
                hours during the taxable year.
            ``(3) Full-time educator.--The term `full-time educator' 
        means, with respect to any taxable year, an individual who for 
        such taxable year satisfies the requirements of subparagraph 
        (A) or (B) of paragraph (2) applied by substituting `900 hours' 
        for `450 hours' therein.
            ``(4) School.--The term `school' means any school which 
        provides elementary education or secondary education 
        (kindergarten through grade 12), as determined under State law.
            ``(5) Preschool or early childhood program.--The term 
        `preschool or early childhood program' means any program 
        which--
                    ``(A) is for providing preschool and receives funds 
                for carrying out preschool programs pursuant to--
                            ``(i) part A of title I of the Elementary 
                        and Secondary Education Act of 1965, or
                            ``(ii) subpart 2 of part B of title I of 
                        such Act, or
                    ``(B) is an early childhood program, as defined 
                under section 103 of the Higher Education Act of 
                1965.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. MODIFICATION OF CREDIT FOR DEPENDENT CARE SERVICES.

    (a) In General.--Subsection (a) of section 21 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(a) Allowance of Credit.--In the case of an individual for which 
there are 1 or more qualifying individuals (as defined in subsection 
(b)(1)) with respect to such individual, there shall be allowed as a 
credit against the tax imposed by this chapter for the taxable year an 
amount equal to 35 percent of the employment-related expenses (as 
defined in subsection (b)(2)) paid by such individual during the 
taxable year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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