I 
109TH CONGRESS 
1ST SESSION 
H. R. 402 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
elementary and secondary school teachers. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 26, 2005 
Mr. PAUL (for himself, Mr. MILLER of Florida, Ms. MILLENDER-MCDONALD, 
Mr. RYUN of Kansas, and Mr. DAVIS of Tennessee) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a tax credit for elementary and secondary school teachers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Teacher Tax Cut Act 
of 2005’’. 
SEC. 2. CREDIT FOR TEACHERS OF ELEMENTARY OR SEC-
ONDARY SCHOOLS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following new 
section: 
‘‘SEC. 25C. ELEMENTARY AND SECONDARY SCHOOL TEACH-
ERS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible individual, there shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an 
amount equal to $1,000. 
‘‘(b) DEFINITIONS.— 
‘‘(1) ELIGIBLE INDIVIDUAL.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), for purposes of subsection 
(a), the term ‘eligible individual’ means an indi-
vidual who— 
‘‘(i) is a teacher in an elementary or 
secondary school, and 
‘‘(ii) is employed on a full-time basis 
for an academic year ending during the 
taxable year. 
‘‘(B) 
EXCLUDED
INDIVIDUALS.—Such 
term does not include an individual who is em-
ployed, on a full-time basis for such academic 
year, as other staff (as defined in section 
9101(29) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7801(29))).
‘‘(2) ELEMENTARY OR SECONDARY SCHOOL.— 
The term ‘elementary or secondary school’ means 
any 
organization 
described 
in 
section 
170(b)(1)(A)(ii) which provides education solely at 
or below the 12th grade. 
‘‘(c) COST-OF-LIVING ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2005, the 
$1000 amount contained in subsection (a) shall be 
increased by an amount equal to— 
‘‘(A) $1000, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, by sub-
stituting ‘calendar year 2004’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any increase determined 
under paragraph (1) is not a multiple of $10, such 
increase shall be rounded to the next highest mul-
tiple of $10. In the case of a married individual (as 
determined under section 7703) filing a separate re-
turn, the preceding sentence shall be applied by sub-
stituting ‘$5’ for ‘$10’ each place it appears. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section, including regulations
providing for claiming the credit under this section on 
Form 1040EZ.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25B the following new item: 
‘‘Sec. 25C. Elementary and secondary school teachers.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
Æ