[Congressional Record Volume 169, Number 80 (Thursday, May 11, 2023)]
[Senate]
[Pages S1626-S1627]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Ms. Baldwin, and Ms. Smith):
  S. 1567. A bill to amend the Internal Revenue Code of 1986 to address 
the teacher and school leader shortage in early childhood, elementary, 
and secondary education, and for other purposes; to the Committee on 
Finance.
  Mr. DURBIN. Madam President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1567

       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 ``Retaining Educators Takes 
     Added Investment Now Act'' or the ``RETAIN Act''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to create a refundable tax 
     credit for early childhood educators, teachers, early 
     childhood education program directors, school leaders, and 
     school-based mental health services providers in early 
     childhood, elementary, and secondary education settings that 
     rewards retention based on the time spent serving high-need 
     students.

     SEC. 3. FINDINGS.

       Congress finds the following:
       (1) The shortage of experienced, qualified early childhood 
     educators and elementary school and secondary school teachers 
     is a national problem that compromises the academic outcomes 
     and long-term success of students.
       (2) The shortage is the result of many factors including 
     low pay, frequent turnover in school leadership, poor 
     teaching conditions, and inadequate teacher supports.
       (3) The shortage is worse in high-poverty areas where the 
     factors contributing to the shortage are particularly acute 
     and have an increased negative impact on teachers of color 
     remaining in the field.
       (4) A child's access to high-quality early childhood 
     education is critical to supporting positive outcomes, and 
     early childhood educators--
       (A) play an important role in setting the foundation for 
     future learning, and
       (B) promote the development of vital skills, habits, and 
     mindsets that children need to be successful in school and in 
     life.
       (5) In 2021, the national median pay of early childhood 
     educators was a mere $30,210, with many early childhood 
     educators relying on government assistance programs such as 
     Medicaid, the supplemental nutrition assistance program 
     established under the Food and Nutrition Act of 2008 (7 
     U.S.C. 2011 et seq.), or the temporary assistance for needy 
     families program established under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), and struggling 
     to provide for their own families.
       (6) Studies have demonstrated that well-qualified, 
     experienced teachers are the single most important school-
     based element contributing to a child's academic achievement 
     and success.
       (7) In the 2021-2022 academic year, the average teacher 
     salary in public elementary schools and secondary schools was 
     only $66,397, a 2 percent increase from the previous academic 
     year. When adjusted for inflation, the average teacher salary 
     has declined by 6.4 percent over the past decade.
       (8) On average, public elementary school and secondary 
     school teachers were paid 23.5 percent less than other 
     college graduates working in non-teaching fields, and many 
     teachers struggle with large amounts of student loan debt.
       (9) In 2021, the average teacher salary for a first-year 
     teacher in a public elementary school or secondary school was 
     $41,770.
       (10) An experienced, well-qualified education workforce 
     must also be reflective of the diversity of the student body 
     across race, ethnicity, and disability.
       (11) Higher pay for teachers can result in a more diverse 
     teacher workforce, and minority students often perform better 
     on standardized tests, have improved attendance, and are 
     suspended less frequently when they have at least one same-
     race teacher.
       (12) Experienced, well-qualified school leaders and school-
     based mental health service providers are essential for 
     providing strong educational opportunities and services for 
     students and promoting teacher retention through improved 
     professional supports and teaching conditions.
       (13) Between February 2020 and May 2022, at least 300,000 
     teachers at public elementary schools and secondary schools 
     left the field, a nearly 3 percent decline in the teacher 
     workforce.

     SEC. 4. REFUNDABLE TAX CREDIT FOR TEACHER AND SCHOOL LEADER 
                   RETENTION.

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

     ``SEC. 36C. TEACHER AND SCHOOL LEADER RETENTION CREDIT.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual who is 
     employed in a position described in paragraph (2) during a 
     school year ending with or within the taxable year, there 
     shall be allowed as a credit against the tax imposed by this 
     subtitle for the taxable year an amount equal to the 
     applicable amount (as determined under subsection (b)).
       ``(2) Eligible positions.--The positions described in this 
     paragraph shall consist of the following:
       ``(A) An eligible early childhood educator.
       ``(B) An eligible early childhood education program 
     director.
       ``(C) An eligible early childhood education provider.
       ``(D) An eligible teacher.
       ``(E) An eligible paraprofessional.
       ``(F) An eligible school-based mental health services 
     provider.
       ``(G) An eligible school leader.
       ``(b) Applicable Amount.--
       ``(1) In general.--For purposes of this section, the 
     applicable amount shall be an amount determined based on the 
     number of school years for which the individual has been 
     continuously employed in any position described in subsection 
     (a)(2), as follows:
       ``(A) Subject to paragraph (2), for the first year of 
     employment, $5,800.
       ``(B) For the second continuous year of employment, $5,800.
       ``(C) For the third and fourth continuous year of 
     employment, $7,000.
       ``(D) For the fifth, sixth, seventh, eighth, and ninth 
     continuous year of employment, $8,700.
       ``(E) For the tenth continuous year of employment, $11,600.
       ``(F) For the eleventh, twelfth, thirteenth, fourteenth, 
     and fifteenth continuous year of employment, $8,700.
       ``(G) For the sixteenth continuous year of employment, 
     $7,000.
       ``(H) For the seventeenth, eighteenth, nineteenth, and 
     twentieth continuous year of employment, $5,800.
       ``(2) First year.--For purposes of the first year of 
     employment ending with or within a taxable year, an 
     individual must have been so employed for a period of not 
     less than 4 months before the first day of such taxable year.
       ``(3) Limitation based on total number of school years.--In 
     the case of any individual who has been employed in any 
     position described in subsection (a)(2) for a total of more 
     than 20 school years, the applicable amount shall be reduced 
     to zero.
       ``(c) Inflation Adjustment.--
       ``(1) In general.--In the case of any taxable year 
     beginning after 2024, each of the dollar amounts in 
     subsection (b)(1) 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 such calendar year by substituting 
     `calendar year 2023' for `calendar year 2016' in subparagraph 
     (A)(ii) thereof.
       ``(2) Rounding.--If any increase determined under paragraph 
     (1) is not a multiple of $100, such increase shall be rounded 
     to the nearest multiple of $100.
       ``(d) Supplementing, Not Supplanting, State and Local 
     Education Funds.--
       ``(1) In general.--A State educational agency or local 
     educational agency shall not reduce or adjust any 
     compensation, or any assistance provided through a loan 
     forgiveness program, to an employee of the State educational 
     agency or local educational agency who serves in any position 
     described in subsection (a)(2) due to the individual's 
     eligibility for the credit under this section.
       ``(2) Methodology.--Upon request by the Secretary of 
     Education, a State educational agency or local educational 
     agency shall reasonably demonstrate that the methodology used 
     to allocate amounts for compensation and for loan forgiveness 
     to the employees described in paragraph (1) at qualifying 
     schools or qualifying early childhood education programs 
     ensures that employees at each qualifying school or 
     qualifying early childhood education program in the State or 
     served by the local educational agency, respectively, receive 
     the same amount of State or local funds for compensation and 
     loan forgiveness that the qualifying school or qualifying 
     early childhood education program would receive if the credit 
     under this section had not been enacted.
       ``(e) Information Sharing.--The Secretary of Education and 
     the Secretary of Health and Human Services shall provide the 
     Secretary with such information as is necessary for purposes 
     of determining whether an early childhood education program 
     or an elementary school or secondary school satisfies the 
     requirements for a qualifying early childhood education 
     program or a qualifying school, respectively.
       ``(f) Definitions.--For purposes of this section--
       ``(1) ESEA definitions.--The terms `elementary school', 
     `local educational agency', `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).
       ``(2) Eligible early childhood education program 
     director.--The term `eligible early childhood education 
     program director' means an employee or officer of a 
     qualifying

[[Page S1627]]

     early childhood education program who is responsible for the 
     daily instructional leadership and managerial operations of 
     such program.
       ``(3) Eligible early childhood education provider.--The 
     term `eligible early childhood education provider' means an 
     individual--
       ``(A) who--
       ``(i) has an associate's degree or higher degree in early 
     childhood education or a related field, or
       ``(ii) is enrolled during the taxable year in a program 
     leading to such an associate's or higher degree and is making 
     satisfactory progress toward such degree, and
       ``(B) who is responsible for the daily instructional 
     leadership and managerial operations of a qualifying early 
     childhood education program in a home-based setting.
       ``(4) Eligible early childhood educator.--The term 
     `eligible early childhood educator' means an individual--
       ``(A) who--
       ``(i) has an associate's degree or higher degree in early 
     childhood education or a related field, or
       ``(ii) is enrolled during the taxable year in a program 
     leading to such an associate's or higher degree and is making 
     satisfactory progress toward such degree,
       ``(B) who has credentials or a license under State law for 
     early childhood education, as applicable, and
       ``(C) whose primary responsibility is for the learning and 
     development of children in a qualifying early childhood 
     education program during the taxable year.
       ``(5) Eligible paraprofessional.--The term `eligible 
     paraprofessional' means an individual--
       ``(A) who is a paraprofessional, as defined in section 3201 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7011),
       ``(B) who meets the applicable State professional standards 
     and qualifications pursuant to section 1111(g)(2)(M) of such 
     Act (20 U.S.C. 6311(g)(2)(M)),
       ``(C) whose primary responsibilities involve working or 
     assisting in a classroom setting, and
       ``(D) who is employed in a qualifying school or a 
     qualifying early childhood education program.
       ``(6) Eligible school-based mental health services 
     provider.--The term `eligible school-based mental health 
     services provider' means an individual--
       ``(A) described in section 4102(6) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7112(6)), and
       ``(B) who is employed in a qualifying school or a 
     qualifying early childhood education program.
       ``(7) Eligible school leader.--The term `eligible school 
     leader' means a principal, assistant principal, or other 
     individual who is--
       ``(A) an employee or officer of a qualifying school, and
       ``(B) responsible for the daily instructional leadership 
     and managerial operations in the qualifying school.
       ``(8) Eligible teacher.--The term `eligible teacher' means 
     an individual who--
       ``(A) is an elementary school or secondary school teacher 
     who, as determined by the State or local educational agency, 
     is a teacher of record who provides direct classroom teaching 
     (or classroom-type teaching in a nonclassroom setting) to 
     students in a qualifying school, and
       ``(B)(i) meets applicable State certification and licensure 
     requirements, including any requirements for certification 
     obtained through alternative routes to certification, in the 
     State in which such school is located and in the subject area 
     in which the individual is the teacher of record, or
       ``(ii) is enrolled during the taxable year in a program 
     leading to State certification and licensure as described in 
     clause (i) and is making satisfactory progress toward such 
     certification and licensure requirements.
       ``(9) Qualifying early childhood education program.--
       ``(A) In general.--The term `qualifying early childhood 
     education program' means an early childhood education 
     program, as defined in section 103 of the Higher Education 
     Act of 1965 (20 U.S.C. 1003), that, regardless of setting--
       ``(i) serves children who receive services for which 
     financial assistance is provided in accordance with the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 
     et seq.), the Head Start Act (42 U.S.C. 9831 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), and
       ``(ii) participates in a State tiered and transparent 
     system for measuring program quality.
       ``(B) Special rule.--Notwithstanding subparagraph (A), an 
     early childhood education program that does not satisfy the 
     requirements of subparagraph (A)(ii) shall be deemed to be a 
     qualifying early childhood education program until September 
     30, 2023, if the program--
       ``(i) satisfies all requirements of subparagraph (A) except 
     for clause (ii) of such subparagraph, and
       ``(ii)(I) meets the Head Start program performance 
     standards described in section 641A(a) of the Head Start Act 
     (42 U.S.C. 9836a(a)), if applicable, or
       ``(II) is accredited by a national accreditor of early 
     learning programs as of the date of enactment of the 
     Retaining Educators Takes Added Investment Now Act.
       ``(10) Qualifying school.--The term `qualifying school' 
     means--
       ``(A) a public elementary school or secondary school that--
       ``(i) is in the school district of a local educational 
     agency that is eligible for assistance under 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 or operated by an educational service 
     agency that is eligible for such assistance, or
       ``(B) an elementary school or secondary school that is 
     funded by the Bureau of Indian Education and that is in the 
     school district of a local educational agency that is 
     eligible for such assistance.''.
       (b) W-2 Reporting of Continuous Employment for Certain 
     Positions at Qualifying Early Childhood Education Programs or 
     Qualifying Schools.--Section 6051(a) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     paragraph (16), by striking the period at the end of 
     paragraph (17) and inserting ``, and'', and by inserting 
     after paragraph (17) the following new paragraph:
       ``(18) in the case of an employee who is employed in a 
     position described in subsection (a)(2) of section 36C, the 
     number of school years for which such employee has been 
     continuously employed in any such position.''.
       (c) Conforming Amendments.--
       (1) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of subtitle A of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 36B the following:

``Sec. 36C. Teacher and school leader retention credit.''.

       (2) Section 6211(b)(4)(A) of such Code is amended by 
     inserting ``36C,'' after ``36B,''.
       (3) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``36C,'' after ``36B,''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2023.

     SEC. 5. DEVELOPING INTERAGENCY DATA SERIES.

       The Secretary of Labor, in coordination with the Secretary 
     of Treasury, the Secretary of Education, and the Secretary of 
     Health and Human Services, shall--
       (1) develop and publish on the internet website of the 
     Bureau of Labor Statistics a data series that captures--
       (A) the average base salary of teachers in elementary 
     schools and secondary schools, disaggregated by--
       (i) employment in public elementary schools and secondary 
     schools that receive assistance under part A of title I of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311 et seq.),
       (ii) employment in public elementary schools and secondary 
     schools that do not receive such assistance, and
       (iii) geographic region, and
       (B) the average base salary of early childhood educators, 
     disaggregated by highest level of degree attained, and
       (2) update the data series under paragraph (1) on an annual 
     basis.
                                 ______