[House Report 119-600]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-600
======================================================================
SUPPORTING EARLY-CHILDHOOD EDUCATORS'
DEDUCTIONS ACT
_______
April 9, 2026.--Committed to the Committee of the Whole House on the
State of
the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means, submitted
the following
R E P O R T
[To accompany H.R. 5334]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 5334) to amend the Internal Revenue Code of 1986 to
allow early childhood educators to take the educator expense
deduction, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND............................................2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 3
D. Designated Hearing.................................. 3
II. EXPLANATION OF THE BILL...........................................3
III.VOTE OF THE COMMITTEE.............................................4
IV. BUDGET EFFECTS OF THE BILL........................................5
A. Committee Estimate of Budgetary Effects............. 5
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 5
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 6
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE........6
A. Committee Oversight Findings and Recommendations.... 6
B. Statement of General Performance Goals and
Objectives......................................... 6
C. Applicability of House Rule XXI, Clause 5(b)........ 6
D. Information Relating to Unfunded Mandates........... 6
E. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 6
F. Duplication of Federal Programs..................... 7
G. Tax Complexity Analysis............................. 7
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED.............7
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supporting Early-childhood Educators'
Deductions Act'' or the ``SEED Act''.
SEC. 2. EDUCATOR EXPENSE DEDUCTION TO INCLUDE EARLY CHILDHOOD
EDUCATORS.
(a) In General.--Section 62(d)(1) of the Internal Revenue Code of
1986 is amended--
(1) in subparagraph (A), by striking ``a kindergarten through
grade 12 teacher'' and inserting ``an early childhood or
kindergarten through grade 12 teacher'', and
(2) in subparagraph (B), to read as follows:
``(B) School.--The term `school' means--
``(i) in the case of early childhood
education, any school or childcare facility
which--
``(I) provides educational or
childcare services for more than 2
individuals (other than individuals who
reside at the school or facility) who
have not attained age 6, and
``(II) operates at the public expense
or receives a fee, payment, or grant
for providing such services for any of
the individuals (regardless of whether
such school or facility is operated for
profit), and
``(ii) in the case of elementary education or
secondary education (kindergarten through grade
12), any school which provides such education,
as determined under State law.''.
(b) Conforming Amendment.--Section 62(a)(2)(D) of such Code is
amended by striking ``Certain expenses of elementary and secondary
school teachers'' in the heading and inserting ``Certain expenses of
early childhood, elementary, and secondary school teachers''.
(c) Effective Date.--The amendments made by this section shall apply
to expenses paid or incurred in taxable years beginning after December
31, 2025.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
The bill, H.R. 5334 as amended, the ``Supporting Early-
childhood Educators' Deductions Act'' or the ``SEED Act,'' was
ordered reported by the Committee on Ways and Means on March
25, 2026.
Certain individuals referred to as ``eligible educators''
are allowed a limited above-the-line deduction for specified
expenses paid in connection with their work. A broader group of
educators is also allowed an itemized deduction, not limited to
prescribed dollar amount, for a broader category of expenses
paid in connection with their work. Educators who are allowed
these deductions are educators of children in kindergarten
through grade 12. Neither the above-the-line deduction nor the
itemized deduction is allowed to early childhood educators. The
bill allows the deductions to early childhood educators.
B. Background and Need for Legislation
A top priority of the Ways and Means Committee has been
listening to the concerns of American workers and families and
developing policy solutions to help. Pre-school educators are
currently not afforded the same benefits under the tax code as
their K-12 educator counterparts. Under current law, pre-school
educators must cover regular classroom expenses, such as school
supplies, out of their own pockets, whereas K-12 educators can
deduct much of these expenses. This legislation builds on the
bipartisan legislative history of helping early childhood
educators afford to carry out their essential careers in caring
for the nation's youngest students.
C. Legislative History
Background
H.R. 5334 was introduced on September 11, 2025, and was
referred to the Committee on Ways and Means.
Committee Hearings
On January 22, 2025, the Committee held a Full Committee
Member Day Hearing on matters within the Committee's
jurisdiction.
Committee Action
The Committee on Ways and Means marked up H.R. 5334, on
March 25, 2026, and ordered the bill, as amended, favorably
reported (with a quorum being present).
D. Designated Hearing
Pursuant to clause 3(c)(6) of rule XIII, the following
hearings were used to develop and consider H.R. 5334:
On January 22, 2025, the Committee held a Full Committee
Member Day Hearing on matters within the Committee's
jurisdiction.
II. EXPLANATION OF THE BILL
Present Law
An eligible educator is allowed a deduction in determining
adjusted gross income (referred to below as an ``above-the-
line'' deduction) for ordinary and necessary expenses paid or
incurred (i) by reason of the educator's participation in
professional development courses related to the curriculum in
which the educator provides instruction or to the students for
which the educator provides instruction, and (ii) 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.\1\
---------------------------------------------------------------------------
\1\Sec. 62(a)(2)(D).
---------------------------------------------------------------------------
The above-the-line deduction for education expenses is
limited to $350 in 2026.\2\
---------------------------------------------------------------------------
\2\Sec. 62(a)(2)(D), (d)(3); Rev. Proc. 2025-32, 2025-45 I.R.B.
695.
---------------------------------------------------------------------------
For purposes of the above-the-line deduction for education
expenses, an eligible educator is, for any taxable year, an
individual who is a kindergarten through grade 12 teacher,
instructor, counselor, principal, or aide in a school for at
least 900 hours during a school year. For this purpose, a
school is any school that provides elementary or secondary
(kindergarten through grade 12) education, as determined under
State law.\3\
---------------------------------------------------------------------------
\3\Sec. 62(d)(1).
---------------------------------------------------------------------------
An itemized deduction, not limited to a prescribed dollar
amount, is allowed for ``educator expenses.''\4\ This itemized
deduction for educator expenses is allowed to a broader class
of individuals for a broader class of education expenses. This
itemized deduction is allowed for interscholastic sports
administrators and coaches as well as for teachers,
instructors, counselors, principals, and aides. This itemized
deduction is allowed both for expenses for which the above-the-
line deduction is allowed and also for expenses paid or
incurred (i) for nonathletic supplies for courses of
instruction in health or physical education or (ii) in
connection with books, supplies, equipment, and supplementary
materials used as part of instructional activity, whether or
not in the classroom.
---------------------------------------------------------------------------
\4\Secs. 67(b)(13), (g), 162(a).
---------------------------------------------------------------------------
An eligible educator who claims the maximum amount of the
above-the-line deduction and who has additional expenses that
are considered educator expenses may, if the individual elects
to itemize deductions, claim an itemized deduction for these
additional expenses.
Reasons for Change
The Committee believes that it is appropriate for early
childhood educators to be allowed the same expense deductions
as are allowed to kindergarten through grade 12 educators.
Explanation of Provision
The bill broadens the present law definition of an eligible
educator. Under the bill an eligible educator includes, in
addition to the individuals within the present law definition,
an early childhood teacher, instructor, counselor, principal,
or aide in a school for at least 900 hours during a school
year.
The bill broadens the present law definition of school.
Under the bill, a school includes both elementary and secondary
schools that are within the present law definition and also, in
the case of early childhood education, a school or childcare
facility that (1) provides educational or childcare services
for more than two individuals (other than individuals who
reside at the school or facility) who are below age six, and
(2) operates at the public expense or receives a fee, payment,
or grant for providing its services (regardless of whether the
school or facility is operated for profit).
The bill makes a conforming amendment to the heading of
Internal Revenue Code section 62(a)(2)(D) so that the heading
reads, ``CERTAIN EXPENSES OF EARLY CHILDHOOD, ELEMENTARY, AND
SECONDARY SCHOOL TEACHERS.''
Effective Date
The bill is effective for expenses paid or incurred in
taxable years beginning after December 31, 2025.
III. VOTE OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 5334, the ``Supporting Early-childhood
Educators' Deductions Act of 2025'' or the ``SEED Act,'' on
March 25, 2026.
H.R. 5334 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 43 yeas to 0
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ X ......... .........
Mr. Buchanan.................. X ......... ......... Mr. Doggett..... X ......... .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... X ......... .........
Mr. Kelly..................... X ......... ......... Mr. Larson...... X ......... .........
Mr. Schweikert................ X ......... ......... Mr. Davis....... X ......... .........
Mr. LaHood.................... X ......... ......... Ms. Sanchez..... X ......... .........
Mr. Arrington................. X ......... ......... Ms. Sewell...... X ......... .........
Mr. Estes..................... X ......... ......... Ms. DelBene..... X ......... .........
Mr. Smucker................... X ......... ......... Ms. Chu......... X ......... .........
Mr. Hern...................... X ......... ......... Ms. Moore (WI).. X ......... .........
Mrs. Miller (WV).............. X ......... ......... Mr. Boyle....... X ......... .........
Dr. Murphy.................... X ......... ......... Mr. Beyer....... ........ ......... .........
Mr. Kustoff.................. X ......... ......... Mr. Evans....... X ......... .........
Mr. Fitzpatrick............... X ......... ......... Mr. Schneider... X ......... .........
Mr. Steube.................... X ......... ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... X ......... ......... Mr. Gomez....... ........ ......... .........
Mrs. Fischbach............... X ......... ......... Mr. Horsford.... X ......... .........
Mr. Moore (UT)................ X ......... ......... Ms. Plaskett.... X ......... .........
Ms. Van Duyne................. X ......... ......... Mr. Suozzi...... X ......... .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
Mr. Yakym..................... X ......... .........
Mr. Miller (OH)............... X ......... .........
Mr. Bean...................... X ......... .........
Mr. Moran..................... X ......... .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 5334 as
reported.
The staff of the Joint Committee on Taxation estimates that
the bill as amended has the following effect on Federal fiscal
year budget receipts:
FISCAL YEARS
[Millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2026- 31 2026- 36
--------------------------------------------------------------------------------------------------------------------------------------------------------
-6.............................. -60 -62 -63 -63 -61 -61 -63 -69 -69 -70 -315 -648
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTE: Details may not add to totals due to rounding. The date of enactment is assumed to be April 30, 2026.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority.
C. Cost Estimate Prepared by the Congressional
Budget Office
In The Congressional Budget Act of 1974, as amended
stipulates that revenue estimates provided by the staff of the
Joint Committee on Taxation (``JCT'') will be the official
estimates for all tax legislation considered by Congress. As
such CBO incorporates these estimates into its cost estimates
of the effects of the legislation. The estimates for the
revenue provisions of H.R. 5334, the ``Supporting Early-
childhood Educators' Deductions Act of 2025'' or the ``SEED
Act,'' as reported were provided by JCT (see Part IV, A).
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. Applicability of House Rule XXI, Clause 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
provide such a Federal income tax rate increase.
D. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
E. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
F. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
G. Tax Complexity Analysis
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the
staff of the Joint Committee on Taxation (in consultation with
the Internal Revenue Service and the Treasury Department) to
provide a tax complexity analysis. The complexity analysis is
required for all legislation reported by the Senate Committee
on Finance, the House Committee on Ways and Means, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
and has widespread applicability to individuals or small
businesses.
The staff of the Joint Committee on Taxation has determined
that there are no provisions that are of widespread
applicability to individuals or small businesses.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL,
AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
INTERNAL REVENUE CODE OF 1986
* * * * * * *
Subtitle A--Income Taxes
* * * * * * *
CHAPTER 1--NORMAL TAXES AND SURTAXES
* * * * * * *
Subchapter B--COMPUTATION OF TAXABLE INCOME
* * * * * * *
PART I--DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE
INCOME, ETC.
* * * * * * *
SEC. 62. ADJUSTED GROSS INCOME DEFINED.
(a) General rule.--For purposes of this subtitle, the term
``adjusted gross income'' means, in the case of an individual,
gross income minus the following deductions:
(1) Trade and business deductions.--The deductions
allowed by this chapter (other than by part VII of this
subchapter) which are attributable to a trade or
business carried on by the taxpayer, if such trade or
business does not consist of the performance of
services by the taxpayer as an employee.
(2) Certain trade and business deductions of
employees.--
(A) Reimbursed expenses of employees.--The
deductions allowed by part VI (section 161 and
following) which consist of expenses paid or
incurred by the taxpayer, in connection with
the performance by him of services as an
employee, under a reimbursement or other
expense allowance arrangement with his
employer. The fact that the reimbursement may
be provided by a third party shall not be
determinative of whether or not the preceding
sentence applies.
(B) Certain expenses of performing artists.--
The deductions allowed by section 162 which
consist of expenses paid or incurred by a
qualified performing artist in connection with
the performances by him of services in the
performing arts as an employee.
(C) Certain expenses of officials.--The
deductions allowed by section 162 which consist
of expenses paid or incurred with respect to
services performed by an official as an
employee of a State or a political subdivision
thereof in a position compensated in whole or
in part on a fee basis.
(D) [Certain expenses of elementary and
secondary school teachers] Certain expenses of
early childhood, elementary, and secondary
school teachers.--The deductions allowed by
section 162 which consist of expenses, not in
excess of $250, paid or incurred by an eligible
educator--
(i) by reason of the participation of
the educator in professional
development courses related to the
curriculum in which the educator
provides instruction or to the students
for which the educator provides
instruction, and
(ii) 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.
(E) Certain expenses of members of reserve
components of the Armed Forces of the United
States.--The deductions allowed by section 162
which consist of expenses, determined at a rate
not in excess of the rates for travel expenses
(including per diem in lieu of subsistence)
authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United
States Code, paid or incurred by the taxpayer
in connection with the performance of services
by such taxpayer as a member of a reserve
component of the Armed Forces of the United
States for any period during which such
individual is more than 100 miles away from
home in connection with such services.
(3) Losses from sale or exchange of property.--The
deductions allowed by part VI (sec. 161 and following)
as losses from the sale or exchange of property.
(4) Deductions attributable to rents and royalties.--
The deductions allowed by part VI (sec. 161 and
following), by section 212 (relating to expenses for
production of income), and by section 611 (relating to
depletion) which are attributable to property held for
the production of rents or royalties.
(5) Certain deductions of life tenants and income
beneficiaries of property.--In the case of a life
tenant of property, or an income beneficiary of
property held in trust, or an heir, legatee, or devisee
of an estate, the deduction for depreciation allowed by
section 167 and the deduction allowed by section 611.
(6) Pension, profit-sharing, and annuity plans of
self-employed individuals.--In the case of an
individual who is an employee within the meaning of
section 401(c)(1), the deduction allowed by section
404.
(7) Retirement savings.--The deduction allowed by
section 219 (relating to deduction of certain
retirement savings).
(9) Penalties forfeited because of premature
withdrawal of funds from time savings accounts or
deposits.--The deductions allowed by section 165 for
losses incurred in any transaction entered into for
profit, though not connected with a trade or business,
to the extent that such losses include amounts
forfeited to a bank, mutual savings bank, savings and
loan association, building and loan association,
cooperative bank or homestead association as a penalty
for premature withdrawal of funds from a time savings
account, certificate of deposit, or similar class of
deposit.
(11) Reforestation expenses.--The deduction allowed
by section 194.
(12) Certain required repayments of supplemental
unemployment compensation benefits.--The deduction
allowed by section 165 for the repayment to a trust
described in paragraph (9) or (17) of section 501(c) of
supplemental unemployment compensation benefits
received from such trust if such repayment is required
because of the receipt of trade readjustment allowances
under section 231 or 232 of the Trade Act of 1974 (19
U.S.C. 2291 and 2292).
(13) Jury duty pay remitted to employer.--Any
deduction allowable under this chapter by reason of an
individual remitting any portion of any jury pay to
such individual's employer in exchange for payment by
the employer of compensation for the period such
individual was performing jury duty. For purposes of
the preceding sentence, the term ``jury pay'' means any
payment received by the individual for the discharge of
jury duty.
(15) Moving expenses.--The deduction allowed by
section 217.
(16) Archer MSAs.--The deduction allowed by section
220.
(17) Interest on education loans.--The deduction
allowed by section 221.
(19) Health savings accounts.--The deduction allowed
by section 223.
(20) Costs involving discrimination suits, etc..--Any
deduction allowable under this chapter for attorney
fees and court costs paid by, or on behalf of, the
taxpayer in connection with any action involving a
claim of unlawful discrimination (as defined in
subsection (e)) or a claim of a violation of subchapter
III of chapter 37 of title 31, United States Code, or a
claim made under section 1862(b)(3)(A) of the Social
Security Act (42 U.S.C. 1395y(b)(3)(A)). The preceding
sentence shall not apply to any deduction in excess of
the amount includible in the taxpayer's gross income
for the taxable year on account of a judgment or
settlement (whether by suit or agreement and whether as
lump sum or periodic payments) resulting from such
claim.
(21) Attorneys' fees relating to awards to
whistleblowers.--
(A) In general.--Any deduction allowable
under this chapter for attorney fees and court
costs paid by, or on behalf of, the taxpayer in
connection with any award under--
(i) section 7623(b), or
(ii) in the case of taxable years
beginning after December 31, 2017, any
action brought under--
(I) section 21F of the
Securities Exchange Act of 1934
(15 U.S.C. 78u-6),
(II) a State false claims
act, including a State false
claims act with qui tam
provisions, or
(III) section 23 of the
Commodity Exchange Act (7
U.S.C. 26).
(B) May not exceed award.--Subparagraph (A)
shall not apply to any deduction in excess of
the amount includible in the taxpayer's gross
income for the taxable year on account of such
award.
Nothing in this section shall permit the same item to be
deducted more than once. Any deduction allowed by section 199A
shall not be treated as a deduction described in any of the
preceding paragraphs of this subsection.
(b) Qualified performing artist.--
(1) In general.--For purposes of subsection
(a)(2)(B), the term ``qualified performing artist''
means, with respect to any taxable year, any individual
if--
(A) such individual performed services in the
performing arts as an employee during the
taxable year for at least 2 employers,
(B) the aggregate amount allowable as a
deduction under section 162 in connection with
the performance of such services exceeds 10
percent of such individual's gross income
attributable to the performance of such
services, and
(C) the adjusted gross income of such
individual for the taxable year (determined
without regard to subsection (a)(2)(B)) does
not exceed $16,000.
(2) Nominal employer not taken into account.--An
individual shall not be treated as performing services
in the performing arts as an employee for any employer
during any taxable year unless the amount received by
such individual from such employer for the performance
of such services during the taxable year equals or
exceeds $200.
(3) Special rules for married couples.--
(A) In general.--Except in the case of a
husband and wife who lived apart at all times
during the taxable year, if the taxpayer is
married at the close of the taxable year,
subsection (a)(2)(B) shall apply only if the
taxpayer and his spouse file a joint return for
the taxable year.
(B) Application of paragraph (1).--In the
case of a joint return--
(i) paragraph (1) (other than
subparagraph (C) thereof) shall be
applied separately with respect to each
spouse, but
(ii) paragraph (1)(C) shall be
applied with respect to their combined
adjusted gross income.
(C) Determination of marital status.--For
purposes of this subsection, marital status
shall be determined under section 7703(a).
(D) Joint return.--For purposes of this
subsection, the term ``joint return'' means the
joint return of a husband and wife made under
section 6013.
(c) Certain arrangements not treated as reimbursement
arrangements.--For purposes of subsection (a)(2)(A), an
arrangement shall in no event be treated as a reimbursement or
other expense allowance arrangement if--
(1) such arrangement does not require the employee to
substantiate the expenses covered by the arrangement to
the person providing the reimbursement, or
(2) such arrangement provides the employee the right
to retain any amount in excess of the substantiated
expenses covered under the arrangement.
The substantiation requirements of the preceding sentence shall
not apply to any expense to the extent that substantiation is
not required under section 274(d) for such expense by reason of
the regulations prescribed under the 2nd sentence thereof.
(d) Definition; Special Rules.--
(1) Eligible educator.--
(A) In general.--For purposes of subsection
(a)(2)(D), the term ``eligible educator''
means, with respect to any taxable year, an
individual who is [a kindergarten through grade
12 teacher] an early childhood or kindergarten
through grade 12 teacher, instructor,
counselor, principal, or aide in a school for
at least 900 hours during a school year.
[(B) School.--The term ``school'' means any
school which provides elementary education or
secondary education (kindergarten through grade
12), as determined under State law.]
(B) School.--The term ``school'' means--
(i) in the case of early childhood
education, any school or childcare
facility which--
(I) provides educational or
childcare services for more
than 2 individuals (other than
individuals who reside at the
school or facility) who have
not attained age 6, and
(II) operates at the public
expense or receives a fee,
payment, or grant for providing
such services for any of the
individuals (regardless of
whether such school or facility
is operated for profit), and
(ii) in the case of elementary
education or secondary education
(kindergarten through grade 12), any
school which provides such education,
as determined under State law.
(2) Coordination with exclusions.--A deduction shall
be allowed under subsection (a)(2)(D) for expenses only
to the extent the amount of such expenses exceeds the
amount excludable under section 135, 529(c)(1), or
530(d)(2) for the taxable year.
(3) Inflation adjustment.--In the case of any taxable
year beginning after 2015, the $250 amount in
subsection (a)(2)(D) 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 ``calendar year 2014'' for
``calendar year 2016'' in subparagraph (A)(ii)
thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest multiple of $50.
(e) Unlawful discrimination defined.--For purposes of
subsection (a)(20), the term ``unlawful discrimination'' means
an act that is unlawful under any of the following:
(1) Section 302 of the Civil Rights Act of 1991 (42
U.S.C. 2000e-16b).
(2) Section 201, 202, 203, 204, 205, 206, 207, or 208
of the Congressional Accountability Act of 1995 (2
U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317).
(3) The National Labor Relations Act (29 U.S.C. 151
et seq.).
(4) The Fair Labor Standards Act of 1938 (29 U.S.C.
201 et seq.).
(5) Section 4 or 15 of the Age Discrimination in
Employment Act of 1967 (29 U.S.C. 623 or 633a).
(6) Section 501 or 504 of the Rehabilitation Act of
1973 (29 U.S.C. 791 or 794).
(7) Section 510 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1140).
(8) Title IX of the Education Amendments of 1972 (20
U.S.C. 1681 et seq.).
(9) The Employee Polygraph Protection Act of 1988 (29
U.S.C. 2001 et seq.).
(10) The Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2102 et seq.).
(11) Section 105 of the Family and Medical Leave Act
of 1993 (29 U.S.C. 2615).
(12) Chapter 43 of title 38, United States Code
(relating to employment and reemployment rights of
members of the uniformed services).
(13) Section 1977, 1979, or 1980 of the Revised
Statutes (42 U.S.C. 1981, 1983, or 1985).
(14) Section 703, 704, or 717 of the Civil Rights Act
of 1964 (42 U.S.C. 2000e-2, 2000e-3, or 2000e-16).
(15) Section 804, 805, 806, 808, or 818 of the Fair
Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or
3617).
(16) Section 102, 202, 302, or 503 of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12112, 12132,
12182, or 12203).
(17) Any provision of Federal law (popularly known as
whistleblower protection provisions) prohibiting the
discharge of an employee, the discrimination against an
employee, or any other form of retaliation or reprisal
against an employee for asserting rights or taking
other actions permitted under Federal law.
(18) Any provision of Federal, State, or local law,
or common law claims permitted under Federal, State, or
local law--
(i) providing for the enforcement of civil
rights, or
(ii) regulating any aspect of the employment
relationship, including claims for wages,
compensation, or benefits, or prohibiting the
discharge of an employee, the discrimination
against an employee, or any other form of
retaliation or reprisal against an employee for
asserting rights or taking other actions
permitted by law.
* * * * * * *
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