[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1584 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 1584

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, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2023

Mr. Booker (for himself, Mr. Padilla, Mr. Heinrich, Mr. Blumenthal, Mr. 
Menendez, and Mr. Van Hollen) 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, and for other purposes.

    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 ``Respect, Advancement, and Increasing 
Support for Educators Act of 2023'' or the ``RAISE Act of 2023''.

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 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 sum of--
            ``(1) $1,000, plus
            ``(2) in the case of an eligible educator who is employed 
        at a qualifying school, the applicable amount.
    ``(b) Applicable Amount.--For purposes of subsection (a), the 
applicable amount is the amount which bears the same ratio (not to 
exceed one) to $14,000 ($9,000, in the case of any early childhood 
educator without a bachelor's degree) as--
            ``(1) the number of percentage points by which the student 
        poverty ratio for such qualifying school exceeds 39 percent, 
        bears to
            ``(2) 36 percentage points.
    ``(c) Eligible Educator.--For purposes of this section--
            ``(1) In general.--The term `eligible educator' means--
                    ``(A) any elementary or secondary teacher, and
                    ``(B) any early childhood educator.
            ``(2) Elementary or secondary teacher.--
                    ``(A) In general.--The term `elementary or 
                secondary 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 public 
                        elementary school or a public secondary school 
                        for not less than 75 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 school is 
                        located),
                            ``(ii) meets the applicable requirements 
                        for State certification and licensure in the 
                        State in which such school is located in the 
                        subject area in which the individual is the 
                        teacher of record, and
                            ``(iii) has met the requirements of clauses 
                        (i) and (ii) for a period of not less than 1 
                        year before the first day of the taxable year.
                    ``(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.
            ``(3) Early childhood educator.--The term `early childhood 
        educator' means an individual who--
                    ``(A) has a Child Development Associate credential 
                (or an equivalent credential), or has an associate's 
                degree or higher,
                    ``(B) meets the applicable requirements for State 
                certification, licensure, or permitting under State law 
                for early childhood education,
                    ``(C) has primary responsibility for the learning 
                and development of children in an early childhood 
                education program (as defined in section 103 of the 
                Higher Education Act of 1965 (20 U.S.C. 1003)) for not 
                less than 75 percent of the normal or statutory number 
                of hours of work for a full-time teacher over a 
                complete program year, as determined by the Secretary 
                of Health and Human Services, and
                    ``(D) has met the requirements of subparagraphs 
                (A), (B), and (C) for a period of not less than 1 year 
                before the first day of the taxable year.
    ``(d) Qualifying School.--
            ``(1) In general.--The term `qualifying school' means, with 
        respect to any school year--
                    ``(A) a public elementary school or a public 
                secondary school that--
                            ``(i) is served by 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 
                        (20 U.S.C. 6311 et seq.), or
                            ``(ii) is served by an educational service 
                        agency, or a location operated by an 
                        educational service 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.),
                    ``(B) an elementary school or secondary school that 
                is funded by the Bureau of Indian Education, or
                    ``(C) an early childhood education program (as 
                defined in section 103 of the Higher Education Act of 
                1965 (20 U.S.C. 1003)) that serves children who 
                receive, or are eligible for, services for which 
                financial assistance is provided in accordance with the 
                Child Care and Development Block Grant of 1990 (42 
                U.S.C. 9857 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).
            ``(2) ESEA definitions.--For purposes of this subsection, 
        the terms `educational service agency', `elementary school', 
        `local educational agency', `secondary school', and `State 
        educational agency' have the meanings given such terms in 
        section 8101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801 et seq.).
    ``(e) Student Poverty Ratio.--
            ``(1) In general.--The term `student poverty ratio' means--
                    ``(A) with respect to any qualifying school 
                described in subparagraph (A) or (B) of subsection 
                (d)(1), the ratio (expressed as a percentage) of--
                            ``(i) the total number of children served 
                        at such qualifying 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)), 
                        to
                            ``(ii) the total number of children served 
                        at such qualifying school, and
                    ``(B) with respect to any qualifying school 
                described in subsection (d)(1)(C), the ratio (expressed 
                as a percentage) of--
                            ``(i) the total number of children 
                        attending such qualifying school who are 
                        eligible for the Child Care and Development 
                        Block Grant of 1990 (42 U.S.C. 9857 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), to
                            ``(ii) the total number of children 
                        attending such qualifying school.
            ``(2) Determination of ratio.--In determining the student 
        poverty ratio with respect to a qualifying school under 
        paragraph (1)(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.
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2024, each of the dollar amounts in subsections 
        (a) and (b) 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, determined by substituting in 
                subparagraph (A)(ii) thereof `calendar year 2023' for 
                `calendar year 2016'.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $50, such increase shall be rounded to 
        the nearest multiple of $50.''.
            (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.--
            (1) In general.--The Secretary of Education shall--
                    (A) collect such information as necessary 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)) and the appropriate amount of tax credit under 
                such section; and
                    (B) provide such information to the Secretary of 
                the Treasury (or the Secretary's delegate).
            (2) Information for the secretary of education.--As a 
        condition of receiving Federal funds and if requested by the 
        Secretary of Education, each qualifying school shall collect 
        and submit to the Secretary of Education such information as 
        may be necessary to enable the Secretary of Education to carry 
        out paragraph (1).
    (c) Supplementation of Funds.--
            (1) Elementary and secondary education.--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(d) 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.
            (2) Early childhood education.--An agency or other entity 
        that funds, licenses, or regulates an early childhood education 
        program (as defined in section 103 of the Higher Education Act 
        of 1965 (20 U.S.C. 1003)) shall not reduce or adjust any 
        teacher pay or teacher loan forgiveness program, or permit such 
        a reduction or adjustment in the early childhood education 
        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 such agency or 
        entity, 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 such early 
        childhood education programs ensures that each such program 
        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) Employer Limitations.--
            (1) Prohibition of use in collective bargaining.--An 
        employer that engages in collective bargaining with employees 
        who are eligible educators, as defined in section 36C(c) of the 
        Internal Revenue Code of 1986, shall not include the amount of 
        the teacher tax credit under section 36C of such Code in 
        determining the amount of salary or other compensation provided 
        to any employee under the collective bargaining agreement.
            (2) Prohibition of use as punishment or retribution.--An 
        employer of an eligible educator, as defined in section 36C of 
        the Internal Revenue Code of 1986, shall not change the work 
        assignment or location of the eligible educator if one of the 
        primary reasons for the change is to--
                    (A) prevent the eligible educator from receiving a 
                teacher tax credit under section 36C of such Code; or
                    (B) reduce the amount of the teacher tax credit 
                that the eligible educator will receive.
            (3) Enforcement.--Notwithstanding any other provision of 
        law, the Federal Labor Relations Authority shall have the 
        authority to investigate and enforce any alleged violation of 
        this section in the same manner, and subject to the same 
        procedures, as would apply to an allegation of an unfair labor 
        practice under section 7118 of title 5, United States Code.
            (4) Definition.--In this subsection--
                    (A) the term ``affecting commerce'' has the meaning 
                given the term in section 2 of the National Labor 
                Relations Act (29 U.S.C. 152);
                    (B) the term ``employee'' means an employee of an 
                employer who is employed in a business of an employer 
                that affects commerce; and
                    (C) the term ``employer'' means a person, including 
                a State or political subdivision of a State, engaged in 
                a business affecting commerce.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. INCREASE IN AND EXPANSION OF DEDUCTION FOR EXPENSES OF 
              ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) Increase.--
            (1) In general.--Subparagraph (D) of section 62(a)(2) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``$250'' and inserting ``$500''.
            (2) Inflation adjustment.--Section 62(d)(3) of such Code is 
        amended--
                    (A) by striking ``2015'' and inserting ``2024'';
                    (B) by striking ``the $250 amount'' and inserting 
                ``each of the dollar amounts''; and
                    (C) by striking ``2014'' in subparagraph (B) 
                thereof and inserting ``2023''.
    (b) Expansion to Early Childhood Educators.--Section 62(d)(1)(A) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``who is a kindergarten'' and inserting 
        ``who is--
                            ``(i) a kindergarten'';
            (2) by striking the period at the end and inserting ``, 
        or''; and
            (3) by adding at the end the following new subparagraph:
                            ``(ii) an early childhood educator (as 
                        defined in section 200 of the Higher Education 
                        Act of 1965 (20 U.S.C. 1021)) in an early 
                        childhood education program (as defined in 
                        section 103 of such Act (20 U.S.C. 1003)) for 
                        at least 1,020 hours during a year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 4. MANDATORY FUNDING TO SUPPORT LOCAL EDUCATIONAL AGENCIES THAT 
              MAINTAIN OR INCREASE TEACHER SALARIES.

    Section 2003 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6603) is amended--
            (1) in the section heading, by striking ``authorization of 
        appropriations'' and inserting ``funding''; and
            (2) by striking subsection (a) and inserting the following:
    ``(a) Appropriations for Part A.--
            ``(1) In general.--There are authorized to be appropriated, 
        and there are appropriated, out of any funds not otherwise 
        appropriated--
                    ``(A) for fiscal year 2023, $5,200,000,000 to carry 
                out part A; and
                    ``(B) for fiscal year 2024 and each succeeding 
                fiscal year, the amount appropriated under this 
                paragraph for the preceding year, increased by a 
                percentage equal to the annual percentage increase in 
                the Consumer Price Index for All Urban Consumers 
                published by the Department of Labor for the most 
                recent calendar year.
            ``(2) Reservation for teacher salary incentive grants.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Eligible local educational agency.--
                        The term `eligible local educational agency' 
                        means a local educational agency that, for the 
                        preceding school year, maintained or increased 
                        the salary schedule for all teachers employed 
                        by the local educational agency.
                            ``(ii) Teacher salary incentive 
                        reservation.--The term `teacher salary 
                        incentive reservation' means, for each fiscal 
                        year, the amount that is 20 percent of the 
                        amount by which the funds appropriated under 
                        paragraph (1) for the fiscal year exceeds 
                        $2,200,000,000.
                    ``(B) In general.--For each fiscal year for which 
                the total amount appropriated under paragraph (1) is 
                greater than $2,200,000,000, the Secretary shall, after 
                making any reservations under section 2101(a), reserve 
                and use the teacher salary incentive reservation to 
                award grants, based on allotments under subparagraph 
                (C), to eligible local educational agencies for 
                purposes described in subparagraph (E).
                    ``(C) Allotments.--An allotment under this 
                subparagraph for a fiscal year to an eligible local 
                educational agency shall bear the same relationship to 
                the teacher salary incentive reservation as the number 
                of children counted under section 1124(c) who are 
                served by the local educational agency bears to the 
                total number of such children counted under such 
                section served by all eligible local educational 
                agencies that submitted an application under 
                subparagraph (D).
                    ``(D) Application.--An eligible local educational 
                agency desiring an allotment under this paragraph shall 
                submit to the Secretary an application at such time, in 
                such manner, and containing such information as the 
                Secretary may require.
                    ``(E) Use of funds.--A local educational agency 
                receiving an allotment under subparagraph (C) may use 
                the allotment to carry out one or more of the 
                following:
                            ``(i) Comprehensive teacher or school 
                        leader preparation programs described 
                        subsection (d), (e), or (f) of section 202 of 
                        the Higher Education Act of 1965.
                            ``(ii) Support for teachers to earn 
                        certifications or credentials in high-need 
                        fields or advanced credentials, such as 
                        certification or credentialing by the National 
                        Board for Professional Teaching Standards.
                            ``(iii) Teacher leadership programs.
                            ``(iv) Induction or mentoring programs for 
                        new teachers, principals, or other school 
                        leaders.
                            ``(v) High-quality research-based 
                        professional development.
                            ``(vi) Other activities approved by the 
                        Secretary that--
                                    ``(I) promote and strengthen the 
                                teaching profession;
                                    ``(II) attract, retain, and 
                                diversify the educator workforce; or
                                    ``(III) advance the skills and 
                                efficacy of the educator workforce.
                    ``(F) Supplement, not supplant.--A local 
                educational agency receiving an allotment under 
                subparagraph (C) shall use the allotment to supplement, 
                and not supplant, any State funds or efforts to raise 
                teacher pay.''.
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