tification or licensure assessments of the State 
in which the institution is located, but only for 
those students who took those assessments 
within 3 years of receiving a degree from the 
institution or completing the program. 
‘‘(ii) A comparison of the institution or 
program’s pass rate for students who have com-
pleted at least 50 percent of the requirements 
for the teacher preparation program with the 
average pass rate for institutions and programs 
in the State. 
‘‘(iii) A comparison of the institution or 
program’s average raw score for students who 
have completed at least 50 percent of the re-
quirements for the teacher preparation program 
with the average raw scores for institutions and 
programs in the State. 
‘‘(iv) In the case of programs with fewer 
than 10 students who have completed at least 
50 percent of the requirements for a teacher 
preparation program taking any single initial 
teacher certification or licensure assessment 
during an academic year, the institution shall 
collect and publish information with respect to
an average pass rate on State certification or li-
censure assessments taken over a 3-year period. 
‘‘(v) A report on the number of times can-
didates have to take the test before passing. 
‘‘(B) PROGRAM INFORMATION.—The num-
ber of students in the program, the average 
number of hours of supervised practice teaching 
required for those in the program, and the 
number of full-time equivalent faculty and stu-
dents in supervised practice teaching. 
‘‘(C) STATEMENT.—In States that require 
approval or accreditation of teacher education 
programs, a statement of whether the institu-
tion’s program is so approved or accredited, 
and by whom. 
‘‘(D) 
DESIGNATION
AS
LOW-PER-
FORMING.—Whether the program has been des-
ignated as low-performing by the State under 
section 208(a). 
‘‘(2) 
REQUIREMENT.—The 
information 
de-
scribed in paragraph (1) shall be reported through 
publications such as school catalogs and promotional 
materials sent to potential applicants, secondary 
school guidance counselors, and prospective employ-
ers of the institution’s program graduates, including 
materials sent by electronic means. 
‘‘(3) FINES.—In addition to the actions author-
ized in section 487(c), the Secretary may impose a 
fine not to exceed $25,000 on an institution of high-
er education for failure to provide the information 
described in this subsection in a timely or accurate 
manner. 
‘‘(e) DATA QUALITY.—Either— 
‘‘(1) the Governor of the State; or 
‘‘(2) in the case of a State for which the con-
stitution or law of such State designates another in-
dividual, entity, or agency in the State to be respon-
sible for teacher certification and preparation activ-
ity, such individual, entity, or agency; 
shall attest annually, in writing, as to the reliability, valid-
ity, integrity, and accuracy of the data submitted pursuant 
to this section. 
‘‘SEC. 208. STATE FUNCTIONS. 
‘‘(a) STATE ASSESSMENT.—In order to receive funds 
under this Act, a State shall have in place a procedure 
to identify and assist, through the provision of technical 
assistance, low-performing programs of teacher prepara-
tion within institutions of higher education. Such State 
shall provide the Secretary an annual list of such low-per-
forming institutions that includes an identification of 
those institutions at risk of being placed on such list. Such 
levels of performance shall be determined solely by the 
State and may include criteria based upon information col-
lected pursuant to this part. Such assessment shall be de-
scribed in the report under section 207(a). A State receiv-
ing Federal funds under this title shall develop plans to 
close or reconstitute underperforming programs of teacher 
preparation within institutions of higher education. 
‘‘(b) TERMINATION OF ELIGIBILITY.—Any institu-
tion of higher education that offers a program of teacher 
preparation in which the State has withdrawn the State’s 
approval or terminated the State’s financial support due 
to the low performance of the institution’s teacher prepa-
ration program based upon the State assessment described 
in subsection (a)— 
‘‘(1) shall be ineligible for any funding for pro-
fessional development activities awarded by the De-
partment of Education; and 
‘‘(2) shall not be permitted to accept or enroll 
any student who receives aid under title IV of this 
Act in the institution’s teacher preparation program. 
‘‘SEC. 209. GENERAL PROVISIONS. 
‘‘In complying with sections 207 and 208, the Sec-
retary shall ensure that States and institutions of higher
education use fair and equitable methods in reporting and 
that the reporting methods do not allow identification of 
individuals.’’. 
SEC. 303. ENFORCING NCLB’S TEACHER EQUITY PROVI-
SION. 
Subpart 2 of part E of title IX of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7901) 
is amended by adding at the end the following: 
‘‘SEC. 9537. ASSURANCE OF REASONABLE PROGRESS TO-
WARD 
EQUITABLE 
ACCESS 
TO 
TEACHER 
QUALITY. 
‘‘(a) IN GENERAL.—The Secretary may not provide 
any assistance to a State under this Act unless, in the 
State’s application for such assistance, the State— 
‘‘(1) provides the plan required by section 
1111(b)(8)(C) and at least one public report pursu-
ant to that section; 
‘‘(2) clearly articulates the measures the State 
is using to determine whether poor and minority stu-
dents are being taught disproportionately by inexpe-
rienced, unqualified, or out-of-field teachers; 
‘‘(3) includes an evaluation of the success of the 
State’s plan required by section 1111(b)(8)(C) in 
addressing any such disparities;
‘‘(4) with respect to any such disparities, pro-
poses modifications to such plan; and 
‘‘(5) includes a description of the State’s activi-
ties to monitor the compliance of local educational 
agencies in the State with section 1112(c)(1)(L). 
‘‘(b) EFFECTIVE DATE.—This section applies with 
respect to any assistance under this Act for which an ap-
plication is submitted after the date of the enactment of 
this section. ’’. 
TITLE 
IV—EQUIPPING 
TEACH-
ERS, SCHOOLS, LOCAL EDU-
CATIONAL 
AGENCIES, 
AND 
STATES WITH THE 21st CEN-
TURY DATA, TOOLS, AND AS-
SESSMENTS THEY NEED 
SEC. 401. 21ST CENTURY DATA, TOOLS, AND ASSESSMENTS. 
Part E of title II of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6601 et seq.), as added 
by titles II and III of this Act, is amended by adding at 
the end the following: 
‘‘Subpart 3—21st Century Data, Tools, and 
Assessments 
‘‘SEC. 2521. DEVELOPING VALUE-ADDED DATA SYSTEMS. 
‘‘(a) TEACHER AND PRINCIPAL EVALUATION.—
‘‘(1) GRANTS.—The Secretary shall make 
grants to States to develop and implement statewide 
data systems to collect and analyze data on the ef-
fectiveness of elementary school and secondary 
school teachers and principals, based on value-added 
student achievement gains, for the purposes of— 
‘‘(A) determining the distribution of effec-
tive teachers and principals in schools across 
the State; 
‘‘(B) developing measures for helping 
teachers and principals to improve their in-
struction; and 
‘‘(C) evaluating effectiveness of teacher 
and principal preparation programs. 
‘‘(2) DATA REQUIREMENTS.—At a minimum, a 
statewide data system under this section shall— 
‘‘(A) track student course-taking patterns 
and teacher characteristics, such as certification 
status and performance on licensure exams; and 
‘‘(B) allow for the analysis of gains in 
achievement made by individual students over 
time, including gains demonstrated through stu-
dent academic assessments under section 1111 
and tests required by the State for course com-
pletion.
‘‘(3) STANDARDS.—The Secretary shall develop 
standards for the collection of data with grant funds 
under this section to ensure that such data are sta-
tistically valid and reliable. 
‘‘(4) APPLICATION.—To seek a grant under this 
section, a State shall submit an application at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. At a minimum, 
each such application shall demonstrate to the Sec-
retary’s satisfaction that the the assessments used 
by the State to collect and analyze data for purposes 
of this subsection— 
‘‘(A) are aligned to State standards; 
‘‘(B) have the capacity to assess the 
highest- and lowest-performing students; and 
‘‘(C) are statistically valid and reliable. 
‘‘(b) TEACHER TRAINING.—The Secretary may make 
grants to institutions of higher education, local edu-
cational agencies, nonprofit organizations, and teacher or-
ganizations to develop and implement innovative programs 
to provide preservice and in-service training to elementary 
and secondary schools on— 
‘‘(1) understanding increasingly sophisticated 
student achievement data, especially data derived 
from value-added longitudinal data systems; and
‘‘(2) using such data to improve classroom in-
struction. 
‘‘(c) STUDY.—The Secretary shall enter into an 
agreement with the National Academy of Sciences— 
‘‘(1) to evaluate the quality of data on the ef-
fectiveness of elementary and secondary school 
teachers, based on value-added student achievement 
gains; and 
‘‘(2) to compare a range of models for collecting 
and analyzing such data. 
‘‘(d) AUTHORIZATION
OF
APPROPRIATIONS.—To 
carry out this section, there are authorized to be appro-
priated $200,000,000 for the period of fiscal years 2006 
and 2007 and such sums as may be necessary for each 
of the 4 succeeding fiscal years.’’. 
SEC. 402. COLLECTING NATIONAL DATA ON DISTRIBUTION 
OF TEACHERS. 
Section 155 of the Education Sciences Reform Act 
of 2002 (20 U.S.C. 9545) is amended by adding at the 
end the following: 
‘‘(d) SCHOOLS AND STAFFING SURVEY.—Not later 
than the end of fiscal year 2006, and every 3 years there-
after, the Statistics Commissioner shall publish the results 
of the Schools and Staffing Survey (or any successor sur-
vey).’’.
TITLE V—RETENTION: KEEPING 
OUR BEST TEACHERS IN THE 
CLASSROOM 
SEC. 501. AMENDMENT TO ELEMENTARY AND SECONDARY 
EDUCATION ACT OF 1965. 
Part E of title II of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6601 et seq.), as added 
by titles II, III, and IV of this Act, is amended by adding 
at the end the following: 
‘‘Subpart 4—Retention and Working Conditions 
‘‘SEC. 2531. IMPROVING PROFESSIONAL DEVELOPMENT OP-
PORTUNITIES. 
‘‘(a) GRANTS.—The Secretary may make grants to 
eligible entities for the establishment and operation of new 
teacher centers or the support of existing teacher centers. 
‘‘(b) SPECIAL CONSIDERATION.—In making grants 
under this section, the Secretary shall give special consid-
eration to any application submitted by an eligible entity 
that is— 
‘‘(1) a high-need local educational agency; or 
‘‘(2) a consortium that includes at least one 
high-need local educational agency. 
‘‘(c) DURATION.—Each grant under this section shall 
be for a period of 3 years.
‘‘(d) REQUIRED ACTIVITIES.—A teacher center re-
ceiving assistance under this section shall carry out each 
of the following activities: 
‘‘(1) Providing high-quality professional devel-
opment to teachers to assist them in improving their 
knowledge, skills, and teaching practices in order to 
help students to improve their achievement and meet 
State academic standards. 
‘‘(2) Providing teachers with information on de-
velopments in curricula, assessments, and edu-
cational research, including the manner in which the 
research and data can be used to improve teaching 
skills and practice. 
‘‘(3) Providing training and support for new 
teachers. 
‘‘(e) PERMISSIBLE ACTIVITIES.—A teacher center 
may use assistance under this section for any of the fol-
lowing: 
‘‘(1) Assessing the professional development 
needs of the teachers and other instructional school 
employees, such as librarians, counselors, and para-
professionals, to be served by the center. 
‘‘(2) Providing intensive support to staff to im-
prove instruction in literacy, math, science, and
other curricular areas necessary to provide a well- 
rounded education to students. 
‘‘(3) Providing support to mentors working with 
new teachers. 
‘‘(4) Providing training in effective instructional 
services and classroom management strategies for 
mainstream teachers serving students with disabil-
ities and students with limited English proficiency. 
‘‘(5) Enabling teachers to engage in study 
groups and other collaborative activities and collegial 
interactions regarding instruction. 
‘‘(6) Paying for release time and substitute 
teachers in order to enable teachers to participate in 
the activities of the teacher center. 
‘‘(7) Creating libraries of professional materials 
and educational technology. 
‘‘(8) Providing high-quality professional devel-
opment for other instructional staff, such as para-
professionals, librarians, and counselors. 
‘‘(9) Assisting teachers to become highly quali-
fied and paraprofessionals to become teachers. 
‘‘(10) Assisting paraprofessionals to meet the 
requirements of section 1119. 
‘‘(11) Developing curricula.
‘‘(12) Incorporating additional on-line profes-
sional development resources for participants. 
‘‘(13) Providing funding for individual- or 
group-initiated classroom projects. 
‘‘(14) Developing partnerships with businesses 
and community-based organizations. 
‘‘(15) Establishing a teacher center site. 
‘‘(f) TEACHER CENTER POLICY BOARD.— 
‘‘(1) IN GENERAL.—A teacher center receiving 
assistance under this section shall be operated under 
the supervision of a teacher center policy board. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) TEACHER
REPRESENTATIVES.—The 
majority of the members of a teacher center 
policy board shall be representatives of, and se-
lected by, the elementary and secondary school 
teachers to be served by the teacher center. 
Such representatives shall be selected through 
the teacher organization, or if there is no teach-
er organization, by the teachers directly. 
‘‘(B) 
OTHER
REPRESENTATIVES.—The 
members of a teacher center policy board— 
‘‘(i) shall include at least two mem-
bers who are representative of, or des-
ignated by, the school board of the local
educational agency to be served by the 
teacher center; 
‘‘(ii) shall include at least one member 
who is a representative of, and is des-
ignated by, the institutions of higher edu-
cation (with departments or schools of edu-
cation) located in the area; and 
‘‘(iii) may include paraprofessionals. 
‘‘(g) APPLICATION.— 
‘‘(1) IN GENERAL.—To seek a grant under this 
section, an eligible entity shall submit an application 
at such time, in such manner, and accompanied by 
such information as the Secretary may reasonably 
require. 
‘‘(2) ASSURANCE OF COMPLIANCE.—An appli-
cation under paragraph (1) shall include an assur-
ance that the applicant will require any teacher cen-
ter receiving assistance through the grant to comply 
with the requirements of this section. 
‘‘(3) TEACHER
CENTER
POLICY
BOARD.—An 
application under paragraph (1) shall include the 
following: 
‘‘(A) An assurance that— 
‘‘(i) the applicant has established a 
teacher center policy board;
‘‘(ii) the board participated fully in 
the preparation of the application; and 
‘‘(iii) the board approved the applica-
tion as submitted. 
‘‘(B) A description of the membership of 
the board and the method of its selection. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘eligible entity’ means a local 
educational agency or a consortium of 2 or more 
local educational agencies. 
‘‘(2) The term ‘high-need’, with respect to an 
elementary school or a secondary school, has the 
meaning given to that term in section 2501. 
‘‘(3) The term ‘teacher center policy board’ 
means a teacher center policy board described in 
subsection (f). 
‘‘(i) AUTHORIZATION
OF
APPROPRIATIONS.—To 
carry out this section, there are authorized to be appro-
priated $100,000,000 for fiscal year 2006 and such sums 
as may be necessary for each of the 5 succeeding fiscal 
years.’’.
SEC. 502. EXCLUSION FROM GROSS INCOME OF COMPENSA-
TION OF TEACHERS AND PRINCIPALS IN CER-
TAIN HIGH-NEED SCHOOLS OR TEACHING 
HIGH-NEED SUBJECTS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139A the following new section: 
‘‘SEC. 139B. COMPENSATION OF CERTAIN TEACHERS AND 
PRINCIPALS. 
‘‘(a) TEACHERS
AND PRINCIPALS
IN HIGH-NEED 
SCHOOLS.— 
‘‘(1) IN GENERAL.—In the case of an individual 
employed as a teacher or principal in a high-need 
school during the taxable year, gross income does 
not include so much remuneration for such employ-
ment (which would but for this paragraph be includ-
ible in gross income) as does not exceed $15,000. 
‘‘(2) HIGH-NEED
SCHOOL.—For purposes of 
this subsection, the term ‘high-need school’ means 
any public elementary school or public secondary 
school eligible for assistance under section 1114 of 
the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6314). 
‘‘(b) TEACHERS OF HIGH-NEED SUBJECTS.— 
‘‘(1) IN GENERAL.—In the case of an individual 
employed as a teacher of high-need subjects during
the taxable year, gross income does not include so 
much remuneration for such employment (which 
would but for this paragraph be includible in gross 
income) as does not exceed $15,000. 
‘‘(2) TEACHER OF HIGH-NEED SUBJECTS.—For 
purposes of this subsection, the term ‘teacher of 
high-need subjects’ means any teacher in a public el-
ementary or secondary school who— 
‘‘(A)(i) teaches primarily 1 or more high- 
need subjects in 1 or more grades 9 through 
12, or 
‘‘(ii) teaches 1 or more high-need subjects 
in 1 or more grades kindergarten through 8, 
‘‘(B) received a baccalaureate or similar 
degree from an eligible educational institution 
(as defined in section 25A(f)(2)) with a major 
in a high-need subject, and 
‘‘(C) is highly qualified (as defined in sec-
tion 9101(23) of the Elementary and Secondary 
Education Act of 1965). 
‘‘(3) HIGH-NEED SUBJECTS.—For purposes of 
this subsection, the term ‘high-need subject’ means 
math, science, engineering, technology, special edu-
cation, teaching English language learners, or any
other subject identified as a high-need subject by the 
Secretary of Education for purposes of this section. 
‘‘(c) COORDINATION.—Subsection (b) shall not apply 
with respect to any individual if any amount is excludible 
from gross income under subsection (a) with respect to 
such individual.’’. 
(b) CLERICAL AMENDMENT.—The table of section of 
such part is amended by inserting after the item relating 
to section 139A the following new item: 
‘‘Sec. 139B. Compensation of certain teachers and principals.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to remuneration received in taxable 
years beginning after the date of the enactment of this 
Act. 
SEC. 503. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EX-
PENSES OF ELEMENTARY AND SECONDARY 
SCHOOL TEACHERS INCREASED AND MADE 
PERMANENT. 
(a) IN GENERAL.—Subparagraph (D) of section 
62(a)(2) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘In the case of’’ and all that follows through 
‘‘$250’’ and inserting ‘‘The deductions allowed by section 
162 which consist of expenses, not in excess of $500’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act.
TITLE VI—MISCELLANEOUS 
PROVISIONS 
SEC. 601. CONFORMING AMENDMENTS. 
The table of contents at section 2 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.) is amended— 
(1) by inserting after the items relating to part 
D of title II of such Act the following new items: 
‘‘PART E—TEACHER EXCELLENCE FOR ALL CHILDREN 
‘‘Sec. 2500. Definitions. 
‘‘SUBPART 1—DISTRIBUTION 
‘‘Sec. 2501. Premium pay; loan repayment. 
‘‘Sec. 2502. Career ladders for teachers program. 
‘‘SUBPART 2—PREPARATION 
‘‘Sec. 2511. Establishing state-of-the-art teacher induction programs. 
‘‘Sec. 2512. Peer mentoring and review programs. 
‘‘Sec. 2513. Establishing state-of-the-art principal training and induction 
programs and performance-based principal certification. 
‘‘Sec. 2514. Study on developing a portable performance-based teacher as-
sessment. 
‘‘SUBPART 3—21ST CENTURY DATA, TOOLS, AND ASSESSMENTS 
‘‘Sec. 2521. Developing value-added data systems. 
‘‘SUBPART 4—RETENTION AND WORKING CONDITIONS 
‘‘Sec. 2531. Improving professional development opportunities.’’; 
and 
(2) by inserting after the items relating to sub-
part 2 of part E of title IX of the Elementary and 
Secondary Education Act of 1965 the following new 
items: