SEC. 2. REFUNDABLE CREDIT FOR PORTION OF TUITION 
PAID FOR UNDERGRADUATE EDUCATION OF 
CERTAIN TEACHERS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. TUITION FOR UNDERGRADUATE EDUCATION OF 
CERTAIN TEACHERS. 
‘‘(a) IN GENERAL.—In the case of an individual who 
is an eligible teacher for the taxable year, there shall be 
allowed as a credit against the tax imposed by this subtitle 
an amount equal to 10 percent of qualified undergraduate 
tuition paid by such individual. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR AMOUNT.—The credit allowed by 
this section for any taxable year shall not exceed 
$1,000. 
‘‘(2) TEACHERS IN HIGH-NEEDS SCHOOLS DIS-
TRICTS.—In the case of one of the first 5 taxable 
years in which a teacher is an eligible teacher who 
teaches in an elementary school or a secondary 
school (as those terms are defined in section 9101 
of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801)) receiving funds under part 
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A of title I of such Act (20 U.S.C. 6311 et seq.), 
subparagraph (A) shall be applied by substituting 
‘$1,500’ for ‘$1,000’. 
‘‘(3) CREDIT ALLOWED ONLY FOR 10 YEARS.— 
No credit shall be allowed under this section for any 
taxable year after the 10th taxable year for which 
credit is allowed under this section. 
‘‘(c) ELIGIBLE TEACHER.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘eligible teacher’ 
means, with respect to a taxable year, any indi-
vidual— 
‘‘(A) who is a full-time teacher, including 
a full-time substitute teacher, in any of grades 
kindergarten through 12th grade for the aca-
demic year ending in such taxable year, 
‘‘(B)(i) 
who 
teaches 
primarily 
math, 
science, engineering, or technology courses in 1 
or more of grades 9 through 12 during such 
academic year, or 
‘‘(ii) who teaches math, science, engineer-
ing, or technology courses in 1 or more of 
grades kindergarten through 8 during such aca-
demic year, 
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‘‘(C) who, in the case that such individual 
is a middle or secondary school teacher, re-
ceived a baccalaureate or similar degree with a 
major in mathematics, science, engineering, or 
technology from an institution of higher edu-
cation, and 
‘‘(D) who is highly qualified (as defined in 
section 9101(23) of the Elementary and Sec-
ondary Education Act of 1965). 
‘‘(2) SPECIAL RULE FOR ADMINISTRATIVE PER-
SONNEL.—School administrative functions shall be 
treated as teaching courses referred to in paragraph 
(1)(B) if such functions primarily relate to such 
courses or are for a school which focuses primarily 
on such courses. 
‘‘(d) QUALIFIED UNDERGRADUATE TUITION.—For 
purposes of this section, the term ‘qualified undergraduate 
tuition’ means qualified higher education expenses (as de-
fined in section 529(e)(3)) for enrollment or attendance 
at an institution of higher education, reduced as provided 
in section 25A(g)(2) and by any credit allowed by section 
25A with respect to such expenses. 
‘‘(e) INSTITUTION
OF HIGHER EDUCATION.—The 
term ‘institution of higher education’ means an institution 
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of higher education as defined in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be appropriate to carry out the 
purposes of this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
36’’ after ‘‘section 35’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the last 
item and inserting the following new items: 
‘‘Sec. 36. Tuition for undergraduate education of certain teachers. 
‘‘Sec. 37. Overpayments of tax.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act; except that only 
periods of being an eligible teacher (as defined in section 
36(c) of the Internal Revenue Code of 1986, as added by 
this section) after such date shall be taken into account 
under section 36(b)(3) of such Code, as so added. 
Æ 
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