To amend the Internal Revenue Code of 1986 to encourage teachers to pursue teaching math and science subjects at elementary and secondary schools.

Summary: National Science Education Tax Incentive for Teachers Act of 2007 - Amends the Internal Revenue Code to allow certain full-time elementary and secondary school teachers of math, science, engineering, or technology courses a refundable tax credit for 10% of their undergraduate tuition up to $1,000 in any taxable year. Increases such credit amount to $1,500 for teachers in schools serving children with disabilities.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Science Education Tax 
Incentive for Teachers Act of 2007''.

SEC. 2. REFUNDABLE CREDIT FOR PORTION OF TUITION PAID FOR UNDERGRADUATE 
              EDUCATION OF CERTAIN 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 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. TUITION FOR UNDERGRADUATE EDUCATION OF CERTAIN TEACHERS.

    ``(a) In General.--In the case of an individual who is an eligible 
teacher for the taxable year, there shall be allowed as a credit 
against the tax imposed by this subtitle an amount equal to 10 percent 
of qualified undergraduate tuition paid by such individual.
    ``(b) Limitations.--
            ``(1) Dollar amount.--The credit allowed by this section 
        for any taxable year shall not exceed $1,000.
            ``(2) Teachers in high-needs schools districts.--In the 
        case of one of the first 5 taxable years in which a teacher is 
        an eligible teacher who teaches in an elementary school or a 
        secondary school (as those terms are defined in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801)) receiving funds under part A of title I of such Act (20 
        U.S.C. 6311 et seq.), subparagraph (A) shall be applied by 
        substituting `$1,500' for `$1,000'.
            ``(3) Credit allowed only for 10 years.--No credit shall be 
        allowed under this section for any taxable year after the 10th 
        taxable year for which credit is allowed under this section.
    ``(c) Eligible Teacher.--For purposes of this section--
            ``(1) In general.--The term `eligible teacher' means, with 
        respect to a taxable year, any individual--
                    ``(A) who is a full-time teacher, including a full-
                time substitute teacher, in any of grades kindergarten 
                through 12th grade for the academic year ending in such 
                taxable year,
                    ``(B)(i) who teaches primarily math, science, 
                engineering, or technology courses in 1 or more of 
                grades 9 through 12 during such academic year, or
                    ``(ii) who teaches math, science, engineering, or 
                technology courses in 1 or more of grades kindergarten 
                through 8 during such academic year,
                    ``(C) who, in the case that such individual is a 
                middle or secondary school teacher, received a 
                baccalaureate or similar degree with a major in 
                mathematics, science, engineering, or technology from 
                an institution of higher education, and
                    ``(D) who is highly qualified (as defined in 
                section 9101(23) of the Elementary and Secondary 
                Education Act of 1965).
            ``(2) Special rule for administrative personnel.--School 
        administrative functions shall be treated as teaching courses 
        referred to in paragraph (1)(B) if such functions primarily 
        relate to such courses or are for a school which focuses 
        primarily on such courses.
    ``(d) Qualified Undergraduate Tuition.--For purposes of this 
section, the term `qualified undergraduate tuition' means qualified 
higher education expenses (as defined in section 529(e)(3)) for 
enrollment or attendance at an institution of higher education, reduced 
as provided in section 25A(g)(2) and by any credit allowed by section 
25A with respect to such expenses.
    ``(e) Institution of Higher Education.--The term `institution of 
higher education' means an institution of higher education as defined 
in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section.''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or 36'' after ``section 
        35''.
            (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. 36. Tuition for undergraduate education of certain teachers.
``Sec. 37. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act; except that only periods of being an eligible teacher (as 
defined in section 36(c) of the Internal Revenue Code of 1986, as added 
by this section) after such date shall be taken into account under 
section 36(b)(3) of such Code, as so added.