[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3730 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3730

To amend the Internal Revenue Code of 1986 to provide a refundable tax 
credit for certain teachers as a supplement to State efforts to provide 
                     teachers with a livable wage.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 6, 2018

  Mr. Booker 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 refundable tax 
credit for certain teachers as a supplement to State efforts to provide 
                     teachers with a livable wage.

    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 ``Rightfully Investing in Supporting 
Educators Act'' or the ``RISE Act''.

SEC. 2. REFUNDABLE TEACHER TAX CREDIT.

    (a) Allowance of Tax Credit.--
            (1) In general.--Subpart C of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        inserting after section 36B the following new section:

``SEC. 36C. TEACHER TAX CREDIT.

    ``(a) Credit Allowed.--In the case of an individual who is an 
eligible elementary or secondary school teacher or an early childhood 
educator during school years ending with or within the taxable year, 
there shall be allowed as a credit against the tax imposed by this 
chapter an amount equal to the applicable amount.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable amount is--
                    ``(A) $12,500, in the case of an individual who 
                is--
                            ``(i) an eligible elementary or secondary 
                        teacher, or
                            ``(ii) an early childhood educator with a 
                        bachelor's degree, and
                    ``(B) $8,000, in the case of any eligible early 
                childhood educator not described in subparagraph 
                (A)(ii).
            ``(2) Limitations.--
                    ``(A) In general.--The amount under paragraph 
                (1)(A) shall be reduced (but not below zero) by the sum 
                of--
                            ``(i) $100 for each percentage point by 
                        which the student poverty ratio at the 
                        qualifying school (in the case of an eligible 
                        elementary or secondary teacher) or the 
                        subsidized student ratio at the early childhood 
                        education center (in the case of an early 
                        childhood educator with a bachelor's degree) at 
                        which the individual is employed is below 100 
                        percent, and
                            ``(ii) $300 for each percentage point by 
                        which the student poverty ratio at the 
                        qualifying school (in the case of an eligible 
                        elementary or secondary teacher) or the 
                        subsidized student ratio at the early childhood 
                        education center (in the case of an early 
                        childhood educator with a bachelor's degree) at 
                        which the individual is employed is below 75 
                        percent.
                    ``(B) Early childhood educators without a 
                bachelor's degree.--The amount under paragraph (1)(B) 
                shall be reduced (but not below zero) by $320 for each 
                percentage point by which the subsidized student ratio 
                at the early childhood education center at which the 
                individual is employed is below 75 percent.
    ``(c) Definitions Relating to Eligible Elementary or Secondary 
School Teachers.--For purposes of this section--
            ``(1) Eligible elementary or secondary school teacher.--
                    ``(A) In general.--The term `eligible elementary or 
                secondary school teacher' means an individual who--
                            ``(i) is a teacher of record who provides 
                        direct classroom teaching (or classroom-type 
                        teaching in a nonclassroom setting) in a 
                        qualifying school for not less than 90 percent 
                        of the normal or statutory number of hours of 
                        work for a full-time teacher over a complete 
                        school year (as determined by the State in 
                        which the qualifying school is located), and
                            ``(ii) is fully certified or licensed to 
                        teach in the State in which the qualifying 
                        school is located in the subject area in which 
                        the individual is the teacher of record.
                    ``(B) Teacher of record.--For purposes of 
                subparagraph (A), the term `teacher of record' means a 
                teacher who has been assigned the responsibility for 
                specified pupils' learning in a grade, subject, or 
                course as reflected on the school's official record of 
                attendance.
            ``(2) Qualifying school.--
                    ``(A) In general.--In this section, the term 
                `qualifying school' means, with respect to any school 
                year--
                            ``(i) a public secondary school that--
                                    ``(I) has a student poverty ratio 
                                of 50 percent or greater, and
                                    ``(II) is in the school district of 
                                a local educational agency that is 
                                eligible in such year for assistance 
                                pursuant to part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965,
                            ``(ii) a public secondary school served by 
                        an educational service agency, or location 
                        operated by an educational service agency, 
                        that--
                                    ``(I) has a student poverty ratio 
                                of 50 percent or greater, and
                                    ``(II) is served by a local 
                                educational agency that is eligible, 
                                for the year in which the determination 
                                is made, for assistance under part A of 
                                title I of the Elementary and Secondary 
                                Education Act of 1965 (20 U.S.C. 6311 
                                et seq.),
                            ``(iii) a public elementary school that--
                                    ``(I) has a student poverty ratio 
                                of 50 percent or greater, and
                                    ``(II) is in the school district of 
                                a local educational agency that is 
                                eligible in such year for assistance 
                                pursuant to part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965,
                            ``(iv) a public elementary school served by 
                        an educational service agency, or a location 
                        operated by an educational service agency, 
                        that--
                                    ``(I) has a student poverty ratio 
                                of 50 percent or greater, and
                                    ``(II) is served by a local 
                                educational agency that is eligible, 
                                for the year in which the determination 
                                is made, for assistance under part A of 
                                title I of the Elementary and Secondary 
                                Education Act of 1965 (20 U.S.C. 6311 
                                et seq.),
                            ``(v) an elementary school or secondary 
                        school that is funded by the Bureau of Indian 
                        Education and that--
                                    ``(I) has a student poverty ratio 
                                of 50 percent or greater, and
                                    ``(II) is in the school district of 
                                a local educational agency that is 
                                eligible in such year for assistance 
                                pursuant to part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965, or
                            ``(vi) an early childhood education program 
                        or center which has a student poverty ratio of 
                        50 percent or greater.
                    ``(B) ESEA definitions.--In this paragraph, the 
                terms `educational service agency', `elementary 
                school', `poverty line', `secondary school', and `State 
                educational agency' have the meanings given the terms 
                in section 8101 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801 et seq.).
            ``(3) Student poverty ratio.--
                    ``(A) In general.--The term `student poverty ratio' 
                means, with respect to any qualifying school, the ratio 
                (expressed as a percentage) of--
                            ``(i) the total number of children served 
                        at such school meeting at least one measure of 
                        poverty described in section 1113(a)(5) of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 6313(a)(5)(A)), to
                            ``(ii) the total number of children served 
                        at such school.
                    ``(B) Determination of ratio.--In determining the 
                student poverty ratio with respect to a qualifying 
                school under subparagraph (A), the Secretary shall use 
                the same measure of poverty as is used for purposes of 
                determining the allocation of funds under part A of 
                title I of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 6311 et seq.) with respect to the 
                qualifying school.
    ``(d) Definitions Relating to Early Childhood Educators.--
            ``(1) Early childhood educator.--The term `early childhood 
        educator' means a teacher who--
                    ``(A) has obtained an associate's degree or higher, 
                and
                    ``(B) has primary responsibility for the learning 
                and development of children at an early childhood 
                education center that has a subsidized student ratio of 
                not less than 50 percent.
            ``(2) Early childhood education center.--The term `early 
        childhood education center' means a center that provides early 
        childhood education and is licensed by the State in which the 
        center is located.
            ``(3) Subsidized student ratio.--The term `subsidized 
        student ratio' means, with respect to an early childhood 
        education center, the ratio of children served at such center 
        who receive services for which financial assistance is provided 
        in accordance with the Child Care and Development Block Grant 
        of 1990 (42 U.S.C. 9858 et seq.) or the child and adult care 
        food program established under section 17 of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1766).
    ``(e) Inflation Adjustment.--In the case of any taxable year 
beginning after 2018, each of the dollar amount in paragraphs (1) and 
(2) of subsection (b) shall be increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting in subparagraph (A)(ii) 
        thereof `calendar year 2017' for `calendar year 2016'.''.
            (2) Conforming amendments.--
                    (A) The table of sections for subpart C 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 36B the following new item:

``Sec. 36C. Teacher tax credit.''.
                    (B) Section 6211(b)(4)(A) of such Code is amended 
                by inserting ``36C,'' after ``36B,''.
                    (C) Section 1324(b)(2) of title 31, United States 
                Code, is amended by inserting ``36C,'' after ``36B,''.
    (b) Information Sharing.--The Secretary of Education shall provide 
such information as necessary to the Secretary of the Treasury (or the 
Secretary's delegate) for purposes of determining whether a school is a 
qualifying school (as defined in section 36C of the Internal Revenue 
Code of 1986, as added by subsection (a)).
    (c) Supplementation of State and Local Educational Funds.--A State 
educational agency or local educational agency (as such terms are 
defined in section 8101 of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7801 et seq.)) shall not reduce or adjust any 
teacher pay or teacher loan forgiveness program due to the eligibility 
of teachers within the jurisdiction of such agency for the tax credit 
under section 36C of the Internal Revenue Code of 1986. Each State 
educational agency and local educational agency (as so defined), upon 
request by the Secretary of the Treasury, shall demonstrate that the 
methodology used to allocate teacher pay and teacher loan forgiveness 
(if applicable) to qualifying schools (as defined in section 36C(c)(2) 
of such Code) ensures that each such school receives the same State and 
local funds for teacher compensation it would receive if the credit 
under such section 36C had not been enacted.
    (d) 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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