I 
108TH CONGRESS 
2D SESSION 
H. R. 4144 
To amend the Internal Revenue Code of 1986 to provide for the exclusion 
from gross income of certain wages of a certified master teacher, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2004 
Mr. CARDIN introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for the exclusion from gross income of certain wages 
of a certified master teacher, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. MASTER TEACHER EXCLUSION. 
(a) MASTER TEACHER EXCLUSION.—Part III of sub-
chapter B of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 139 the fol-
lowing new section:
‘‘SEC. 139A. CERTAIN WAGES OF CERTIFIED MASTER 
TEACHERS. 
‘‘(a) 25 PERCENT EXCLUSION.—Gross income does 
not include 25 percent of wages earned by a certified mas-
ter teacher in remuneration for employment at a qualified 
school in need of improvement. 
‘‘(b) CERTIFIED MASTER TEACHER.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘certified master 
teacher’ means any eligible teacher who is certified 
by a State as being eligible for the exclusion from 
gross income provided under subsection (a) with re-
spect to wages earned during a 4-year certification 
period. A teacher shall not be treated as a certified 
master teacher except during the certification period. 
‘‘(2) RECERTIFICATION PROHIBITED.—A teach-
er shall not be certified as a certified master teacher 
for more than one certification period. 
‘‘(3) STATE LIMITATION ON NUMBER OF CER-
TIFIED MASTER TEACHERS.—A State may not cer-
tify any teacher if such certification would result (at 
the time of such certification) in more than 10 per-
cent of the State’s public school teachers being cer-
tified master teachers. 
‘‘(c) QUALIFIED SCHOOL
IN NEED
OF IMPROVE-
MENT.—For purposes of this section, the term ‘qualified
school in need of improvement’ means, with respect to any 
certified master teacher— 
‘‘(1) the school in need of improvement which 
first employs such teacher during the certification 
period, 
‘‘(2) any school in need of improvement which 
subsequently employs such teacher, but only if each 
school in need of improvement which previously em-
ployed such teacher during the certification period 
has ceased to be a school in need of improvement, 
and 
‘‘(3) any school described in paragraph (1) or 
(2) which ceases to be a school in need of improve-
ment, but only if such teacher was employed by such 
school (during such teacher’s certification period) at 
the time that such school ceased to be a school in 
need of improvement. 
‘‘(d) SCHOOL IN NEED OF IMPROVEMENT.—For pur-
poses of this section, the term ‘school in need of improve-
ment’ means a public elementary or secondary school 
that— 
‘‘(1) is identified for school improvement, cor-
rective action, or restructuring under section 1116 
of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6316), and
‘‘(h) TERMINATION.—This section shall not apply to 
any taxable year beginning after December 31, 2013.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting after the 
item relating to section 139 the following new item: 
‘‘Sec. 139A. Certain wages of certified master teachers.’’. 
(c) REPORT TO CONGRESS.—The Secretary of the 
Treasury shall transmit to the Congress for each of cal-
endar years 2005 through 2013 an annual report stating, 
with respect to each State, the number of individuals cer-
tified by such State as certified master teachers who were 
allowed an exclusion from gross income under section 
139A of the Internal Revenue Code of 1986 for a taxable 
year ending in such calendar year. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
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