‘‘(b) MAXIMUM CREDIT.—The credit allowed by sub-
section (a) for the taxable year shall not exceed $1,000.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE TEACHER.—The term ‘eligible
teacher’ means an individual who is a kindergarten
through grade 12 classroom teacher, instructor,
counselor, aide, or principal in a public elementary
or secondary school on a full-time basis for an aca-
demic year ending during a taxable year.
‘‘(2) 
ELEMENTARY
AND
SECONDARY
SCHOOLS.—The terms ‘elementary school’ and ‘sec-
ondary school’ have the respective meanings given
such terms by section 14101 of the Elementary and
Secondary Education Act of 1965, as in effect of the
date of enactment of this section.
‘‘(3) QUALIFIED EDUCATION EXPENSES.—The
term ‘qualified education expenses’ means expenses
for books, supplies (other than nonathletic supplies
for courses of instruction in health or physical edu-
cation), computer equipment (including related soft-
ware and services) and other equipment, and supple-
mentary materials used by an eligible teacher in the
classroom.
‘‘(4) QUALIFIED PROFESSIONAL DEVELOPMENT
EXPENSES.—
‘‘(A) IN
GENERAL.—The term ‘qualified
professional 
development 
expenses’ 
means
expenses—
‘‘(i) for tuition, fees, books, supplies,
and equipment required for the enrollment
or attendance of an individual in a quali-
fied 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
INSTRUC-
TION.—The term ‘qualified course of instruc-
tion’ means a course of instruction which—
‘‘(i) directly relates to the curriculum
and academic subjects in which an eligible
teacher provides instruction,
‘‘(ii) is designed to enhance the ability
of an eligible teacher to understand and
use State standards for the academic sub-
jects in which such teacher provides in-
struction,
‘‘(iii) provides instruction in how to
teach children with different learning
styles, particularly children with disabilities
and children with special learning needs
(including children who are gifted and tal-
ented),
‘‘(iv) provides instruction in how best
to discipline children in the classroom and
identify early and appropriate interventions
to help children described in clause (iii)
learn, or
‘‘(v) is tied to strategies and programs
that demonstrate effectiveness in increas-
ing student academic achievement and stu-
dent performance, or substantially increas-
ing the knowledge and teaching skills of
the eligible teacher.
‘‘(5) QUALIFIED EDUCATION LOAN.—The term
‘qualified education loan’ has the meaning given
such term by section 221(e)(1), but only with re-
spect to qualified higher education expenses of the
taxpayer.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—
‘‘(1) IN
GENERAL.—No deduction or other
credit shall be allowed under this chapter for any
amount taken into account for which credit is al-
lowed under this section.
‘‘(2) COORDINATION
WITH
EXCLUSIONS.—A
credit shall be allowed under subsection (a) for
qualified professional development expenses only to
the extent the amount of such expenses exceeds the
amount excludable under section 135, 529(c)(1), or
530(d)(2) for the taxable year.
‘‘(e) ELECTION TO HAVE CREDIT NOT APPLY.—A
taxpayer may elect to have this section not apply for any
taxable year.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pro-
visions of this section.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subpart A of part IV of subchapter A of chapter
1 of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 25A the fol-
lowing new item:
‘‘Sec. 25B. Teaching expenses, professional development expenses,
and interest on higher education loans of public ele-
mentary and secondary school teachers.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
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