II

106TH CONGRESS

2D SESSION S. 2479

To amend the Internal Revenue Code of 1986 to provide a refundable credit

against income tax to certain elementary and secondary school teachers

who receive advanced certification and to exclude from gross income

certain amounts received by such teachers.

IN THE SENATE OF THE UNITED STATES

APRIL 27, 2000

Ms. LANDRIEU 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 credit against income tax to certain elementary and secondary school teachers who receive advanced

certification and to exclude from gross income certain

amounts received by such teachers.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CERTIFIED TEACHER CREDIT.

4 (a) FINDINGS.—Congress makes the following find5 ings:
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1 (1) Studies have shown that the greatest single

2 in-school factor affecting student achievement is

3 teacher quality.

4 (2) Most accomplished teachers do not get the

5 rewards they deserve.

6 (3) After adjusting amounts for inflation, the

7 average teacher salary for 1997–1998 of $39,347 is

8 just $2 above what it was in 1993. Such salary is

9 also just $1,924 more than the average salary re10 corded in 1972, a real increase of only $75 per year.

11 (4) While K–12 enrollments are steadily in12 creasing, the teacher population is aging. There is a

13 need, now more than ever, to attract competent, ca14 pable, and bright college graduates or mid-career

15 professionals to the teaching profession.

16 (5) The Department of Education projects that

17 2,000,000 new teachers will have to be hired in the

18 next decade. Shortages, if they occur, will most like19 ly be felt in urban or rural regions of the country

20 where working conditions may be difficult or com21 pensation low.

22 (6) If students are to receive a high quality

23 education and remain competitive in the global mar24 ket the United States must attract talented and mo-
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1 tivated people to the teaching profession in large

2 numbers.

3 (b) ALLOWANCE OF CREDIT.—Subpart C of part IV

4 of subchapter A of chapter 1 of the Internal Revenue Code

5 of 1986 (relating to refundable credits) is amended by re6 designating section 35 as section 36 and by inserting after

7 section 34 the following new section:

8 ‘‘SEC. 35. CERTIFIED TEACHER CREDIT.

9 ‘‘(a) ALLOWANCE OF CREDIT.—

10 ‘‘(1) IN GENERAL.—In the case of an eligible

11 teacher, there shall be allowed as a credit against

12 the tax imposed by this chapter for the taxable year

13 $5,000.

14 ‘‘(2) YEAR CREDIT ALLOWED.—The credit

15 under paragraph (1) shall be allowed in the taxable

16 year in which the taxpayer becomes a certified indi17 vidual.

18 ‘‘(b) DEFINITIONS.—For purposes of this section—

19 ‘‘(1) ELIGIBLE TEACHER.—

20 ‘‘(A) IN GENERAL.—The term ‘eligible

21 teacher’ means a certified individual who is a

22 pre-kindergarten or early childhood educator, or

23 a kindergarten through grade 12 classroom

24 teacher, instructor, counselor, aide, or principal

25 in an elementary or secondary school on a full-
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1 time basis for an academic year ending during

2 a taxable year.

3 ‘‘(B) CERTIFIED INDIVIDUAL.—The term

4 ‘certified individual’ means an individual who

5 has successfully completed the requirements for

6 advanced certification provided by the National

7 Board for Professional Teaching Standards.

8 ‘‘(2) ELEMENTARY OR SECONDARY SCHOOL.—

9 The term ‘elementary or secondary school’ means a

10 public elementary or secondary school which—

11 ‘‘(A) is located in a school district of a

12 local educational agency which is eligible, dur13 ing the taxable year, for assistance under part

14 A of title I of the Elementary and Secondary

15 Education Act of 1965 (20 U.S.C. 6311 et

16 seq.), and

17 ‘‘(B) during the taxable year, the Sec18 retary of Education determines to have an en19 rollment of children counted under section

20 1124(c) of such Act (20 U.S.C. 6333(c)) in an

21 amount in excess of an amount equal to 40 per22 cent of the total enrollment of such school.

23 ‘‘(c) VERIFICATION.—The credit allowed under sub24 section (a) shall be allowed with respect to any certified
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1 individual only if the certification is verified in such man2 ner as the Secretary shall prescribe by regulation.

3 ‘‘(d) ELECTION TO HAVE CREDIT NOT APPLY.—A

4 taxpayer may elect to have this section not apply for any

5 taxable year.’’.

6 (c) EXCLUSION FROM INCOME FOR CERTAIN

7 AMOUNTS.—Part III of subchapter B of chapter 1 of the

8 Internal Revenue Code of 1986 (relating to items specifi9 cally excluded from gross income) is amended by redesig10 nating section 139 as section 140 and inserting after sec11 tion 138 the following new section:

12 ‘‘SEC. 139. CERTAIN AMOUNTS RECEIVED BY CERTIFIED

13 TEACHERS.

14 ‘‘(a) IN GENERAL.—In the case of a certified teacher,

15 gross income shall not include the value of anything re16 ceived during the taxable year solely by reason of such

17 teacher having successfully completed the requirements

18 for advanced certification provided by the National Board

19 for Professional Teaching Standards (such as an incentive

20 payment).

21 ‘‘(b) CERTIFIED TEACHER.—For purposes of this

22 section, the term ‘certified teacher’ has the meaning given

23 the term ‘eligible teacher’ under section 35(b)(1).

24 ‘‘(c) VERIFICATION.—The exclusion under subsection

25 (a) shall be allowed with respect to any certified teacher
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1 only if the certification is verified in such manner as the

2 Secretary shall prescribe by regulation.

3 ‘‘(d) AMOUNTS MUST BE REASONABLE.—Amounts

4 excluded under subsection (a) shall include only amounts

5 which are reasonable.’’.

6 (d) CONFORMING AMENDMENTS.—

7 (1) Section 1324(b)(2) of title 31, United

8 States Code, is amended by striking ‘‘or’’ before

9 ‘‘enacted’’ and by inserting before the period at the

10 end ‘‘, or from section 35 of such Code’’.

11 (2) The table of sections for subpart C of part

12 IV of subchapter A of chapter 1 of the Internal Rev13 enue Code of 1986 is amended by striking the item

14 relating to section 35 and inserting the following:

‘‘Sec. 35. Certified teacher credit.

‘‘Sec. 36. Overpayments of tax.’’

15 (3) The table of sections for part III of sub16 chapter B of chapter 1 of such Code is amended by

17 striking the item relating to section 139 and insert18 ing the following new items:

‘‘Sec. 139. Certain amounts received by certified teachers.

‘‘Sec. 140. Cross references to other Acts.’’

19 (e) EFFECTIVE DATE.—The amendments made by

20 this section shall apply to taxable years beginning after

21 December 31, 2000.

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