To amend the Internal Revenue Code of 1986 to provide a refundable tax credit of $1,000 to teachers of elementary and secondary school students, and to provide and expand deductions for unreimbursed expenses for continuing education and classroom materials for such teachers.

Summary: Educator Appreciation and Classroom Help Act - Amends the Internal Revenue Code to permit a $1,000 tax credit for "eligible" primary and secondary school teachers and home school teachers. Defines "eligible" teachers. Eliminates the two-percent floor on miscellaneous itemized deductions from applying to various costs incurred by eligible elementary and secondary school teachers for certain courses to enhance teaching skills.Expands the deduction for eligible elementary and secondary school teachers for unreimbursed costs of classroom supplies to up to $2,000 (currently the maximum allowed deduction is $250) and allows home school educators a deduction of up to $2,000 for supplies.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Educator Appreciation and Classroom 
Help Act''.

SEC. 2. REFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. ELEMENTARY AND SECONDARY EDUCATION TEACHERS.

    ``(a) Allowance of Credit.--In the case of an eligible teacher, 
there shall be allowed a credit in the amount of $1,000 against the tax 
imposed by this subtitle for the taxable year.
    ``(b) Eligible Teacher.--For purposes of this section, the term 
`eligible teacher' means--
            ``(1) an eligible educator, as defined in section 62(d)(1), 
        and
            ``(2) an individual teaching at the elementary education or 
        secondary education level in a home school.
    ``(c) School.--For purposes of this section, the term `school' has 
the meaning provided by section 62(d)(1)(B).''.
    (b) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by striking ``or'' after ``1978,'' and 
        by inserting before the period ``, or enacted by the Educator 
        Appreciation and Classroom Help Act''.
            (2) 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 striking the last item and inserting the 
        following new items:

                              ``Sec. 35. Elementary and secondary 
                                        education teachers.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

SEC. 3. 2-PERCENT FLOOR ON MISCELLANEOUS ITEMIZED DEDUCTIONS NOT TO 
              APPLY TO QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES OF 
              ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) Qualified Professional Development Expenses Deduction.--Section 
67(b) of the Internal Revenue Code of 1986 (defining miscellaneous 
itemized deductions) is amended by striking ``and'' at the end of 
paragraph (11), by striking the period at the end of paragraph (12) and 
inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(13) any deduction allowable for the qualified 
        professional development expenses of an eligible educator.''.
    (b) Definitions.--Section 67 of such Code (relating to 2-percent 
floor on miscellaneous itemized deductions) is amended by redesignating 
subsection (f) as subsection (g) and by inserting after subsection (e) 
the following new subsection:
    ``(f) Qualified Professional Development Expenses of Eligible 
Educators.--For purposes of subsection (b)(13)--
            ``(1) Qualified professional development expenses.--
                    ``(A) In general.--The term `qualified professional 
                development expenses' means expenses--
                            ``(i) for tuition, fees, books, supplies, 
                        equipment, and transportation required for the 
                        enrollment or attendance of an individual in a 
                        qualified course of instruction, and
                            ``(ii) with respect to which a deduction is 
                        allowable under section 162 (determined without 
                        regard to this section).
                    ``(B) Qualified course of instruction.--The term 
                `qualified course of instruction' means a course of 
                instruction which--
                            ``(i) is--
                                    ``(I) at an institution of higher 
                                education (as defined in sections 101 
                                and 102 of the Higher Education Act of 
                                1965 (20 U.S.C. 1001 and 1002)), or
                                    ``(II) a professional conference, 
                                and
                            ``(ii) is part of a program of professional 
                        development which is approved and certified as 
                        furthering the individual's teaching skills 
                        by--
                                    ``(I) in the case of a public 
                                school, the appropriate local 
                                educational agency, and
                                    ``(II) in the case of a private 
                                school, the school that employs the 
                                eligible educator.
                    ``(C) Local educational agency.--The term `local 
                educational agency' has the meaning given such term by 
                section 14101 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 8801).
            ``(2) Eligible educator.--The term `eligible educator' has 
        the meaning provided by 62(d)(1).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.

SEC. 4. EXPANSION OF ABOVE-THE-LINE DEDUCTION FOR CLASSROOM SUPPLIES OF 
              ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) Permanent Extension and Increase.--Section 62(a)(2) (relating 
to certain trade and business deductions of employees) is amended by 
striking ``In the case of taxable years beginning during 2002 or 2003, 
the deductions allowed by section 162 which consist of expenses, not in 
excess of $250'' and inserting ``In the case of taxable years beginning 
after December 31, 2002, the deductions allowed by section 162 which 
consist of expenses, not in excess of $2,000''.
    (b) Coverage of Private Schools.--Subparagraph (A) of section 
62(d)(1) is amended by striking ``aide in a school'' and inserting 
``aide in a public or private school''.
    (c) Deduction Allowed for Certain Expenses of Home School 
Teachers.--
            (1) In general.--Part VII of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 (relating to additional 
        itemized deductions for individuals) is amended by 
        redesignating section 223 as section 224 and by inserting after 
        section 222 the following new section:

``SEC. 223. HOME SCHOOL EXPENSES.

    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction an amount equal to expenses paid or 
incurred by an eligible home school educator in connection with books, 
supplies, computer equipment (including related software and services) 
and other equipment, and supplementary materials used by the eligible 
home school educator in home schooling.
    ``(b) Limitation.--The amount allowable as a deduction under 
subsection (a) shall not exceed $2,000.
    ``(c) Eligible Home School Educator.--For purposes of this section, 
an eligible home school educator is an individual teaching at the 
elementary education or secondary education level in a home school.
    ``(d) School.--For purposes of this section, the term `school' has 
the meaning provided by section 62(d)(1)(B).''.
            (2) Clerical amendment.--The table of sections for part VII 
        of subchapter B of chapter 1 of such Code is amended by 
        striking the last item and inserting the following new items:

                              ``Sec. 223. Home school expenses.
                              ``Sec. 224. Cross reference.''
            (3) Deduction allowed whether or not taxpayer itemizes 
        other deductions.--Subsection (a) of section 62 of such Code is 
        amended by inserting after paragraph (18) the following new 
        paragraph:
            ``(19) Home school expenses.--The deduction allowed by 
        section 223.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2002.