A bill to provide for teaching excellence in America's classrooms and homerooms.

TITLE I--NATIONAL BOARD CERTIFICATION ASSISTANCE

SEC. 101. NATIONAL BOARD CERTIFICATION ASSISTANCE.

    Part A of title II of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6621 et seq.) is amended by adding at the end the 
following:

``SEC. 2104. NATIONAL BOARD CERTIFICATION ASSISTANCE.

    ``(a) Short Title.--This section may be cited as the `Teaching 
Excellence in America's Classrooms and Homerooms Act' (TEACH).
    ``(b) Findings.--Congress makes the following findings:
            ``(1) Accomplished teachers are an essential resource for 
        schools and key to the success of any effective education 
        reform initiative. What teachers know and can do are the most 
        important influences on what students learn, according to 
        national studies.
            ``(2) Three years after the landmark 1983 report, `A Nation 
        at Risk', the Carnegie Task Force on Teaching as a Profession 
        issued a seminal report entitled `A Nation Prepared: Teachers 
        for the 21st Century'. Its leading recommendation called for 
        the establishment of a National Board for Professional Teaching 
        Standards. Founded in 1987, the National Board for Professional 
        Teaching Standards is an independent, nonprofit and nonpartisan 
        organization whose mission is to establish high and rigorous 
        standards for what accomplished teachers should know and be 
        able to do.
            ``(3) Over 9,500 teachers from all 50 States and the 
        District of Columbia have completed advanced certification by 
        the National Board for Professional Teaching Standards, which 
        certification is the most rigorous assessment process that a 
        teacher can go through and the highest professional credential 
        in the field of teaching. And more than 12,000 teachers have 
        applied for National Board Certification in the 2000-2001 
        school year.
            ``(4) Teacher salaries have remained stagnant over the past 
        decade, according to a new study by the National Education 
        Association, and \2/3\ of the States do not meet the national 
        average of $40,582 for teacher salaries.
            ``(5) The full fee for National Board Certification is 
        $2,300. Thirty-nine States and 181 local school districts have 
        enacted financial incentives for teachers seeking National 
        Board Certification, including fee support to candidates and 
        salary increases for teachers who achieve National Board 
        Certification.
            ``(6) Recent data from the Accomplished Teaching Validation 
        Study have demonstrated that teachers who are certified by the 
        National Board for Professional Teaching Standards 
        significantly outperform their peers who are not National Board 
        Certified on 11 of 13 key measures of teaching expertise.
            ``(7) If we are to improve student achievement and success 
        in school, the United States must encourage and support the 
        training and development of our Nation's teachers, who are the 
        single, most important in-school influence on student learning.
    ``(c) Purpose.--The purpose of this section is to provide a Federal 
subsidy and support to certain elementary school and secondary school 
teachers who pursue advanced certification provided by the National 
Board for Professional Teaching Standards.
    ``(d) Definitions.--In this section:
            ``(1) Board.--The term `Board' means the National Board for 
        Professional Teaching Standards.
            ``(2) Eligible teacher.--The term `eligible teacher' means 
        an individual who is a prekindergarten or early childhood 
        educator, or a kindergarten through grade 12 classroom teacher, 
        instructor, counselor, or principal in an elementary school or 
        secondary school on a full-time basis.
    ``(e) Program Authorization.--
            ``(1) Program authorized.--From sums appropriated pursuant 
        to the authority of subsection (g) for any fiscal year, the 
        Secretary, in accordance with this section, shall provide 
        financial assistance to the National Board for Professional 
        Teaching Standards, in order to pay the Federal share of the 
        costs of the authorized activities described in subsection (f).
    ``(f) Authorized Activities.--
            ``(1) In general.--Federal funds received under this 
        section may be used only for the following activities:
                    ``(A) To help States and local school districts 
                provide fee support to teachers seeking National Board 
                Certification.
                    ``(B) For outreach and educational activities 
                directly related to teachers' awareness and pursuit of 
                National Board Certification.
            ``(2) Priorities.--The Board shall give priority to 
        providing outreach and educational activities under paragraph 
        (1)(B) among the following:
                    ``(A) School districts in which there are a 
                significant number of low-performing schools.
                    ``(B) School districts with low teacher 
                participation rates in the National Board Certification 
                process.
                    ``(C) School districts serving special populations, 
                including--
                            ``(i) limited English proficient children;
                            ``(ii) gifted and talented children;
                            ``(iii) children with disabilities; and
                            ``(iv) economically and educationally 
                        disadvantaged children.
    ``(g) Authorization of Appropriations; Allocation.--
            ``(1) Authorization of appropriations.--For the purpose of 
        carrying out this section, there are authorized to be 
        appropriated $6,000,000 for fiscal year 2002 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years.
            ``(2) Allocation.--Of the amounts appropriated under 
        paragraph (1) for any fiscal year, the Secretary shall make 
        available--
                    ``(A) 85 percent of such amounts to carry out 
                subsection (f)(1)(A); and
                    ``(B) 15 percent of such amounts to carry out 
                subsection (f)(1)(B).''.

          TITLE II--TAX INCENTIVES FOR TEACHER CERTIFICATIONS

SEC. 201. EXCLUSION OF CERTAIN AMOUNTS RECEIVED BY CERTIFIED TEACHERS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by redesignating section 139 as section 
140 and inserting after section 138 the following new section:

``SEC. 139. CERTAIN AMOUNTS RECEIVED BY CERTIFIED TEACHERS.

    ``(a) In General.--In the case of an eligible teacher, gross income 
shall not include the value of any eligible financial benefit received 
during the taxable year.
    ``(b) Eligible Teacher.--For purposes of this section--
            ``(1) In general.--The term `eligible teacher' means an 
        individual who is a pre-kindergarten or early childhood 
        educator, or a kindergarten through grade 12 classroom teacher, 
        instructor, counselor, aide, or principal in an elementary or 
        secondary school on a full-time basis for an academic year 
        ending during a taxable year.
            ``(2) Elementary and secondary schools.--The terms 
        `elementary school' and `secondary school' have the respective 
        meanings given such terms by section 14101 of the Elementary 
        and Secondary Education Act of 1965.
    ``(c) Eligible Financial Benefit.--For purposes of this section, 
the term `eligible financial benefit' means any financial benefit, 
including incentive payment, received solely by reason of the 
successful completion by the eligible teacher of the requirements for 
advanced certification provided by the National Board for Professional 
Teaching Standards. Such completion shall be verified in such manner as 
the Secretary shall prescribe by regulation.
    ``(d) Amounts Must Be Reasonable.--Amounts excluded under 
subsection (a) shall include only amounts which are reasonable.''.
    (b) Conforming Amendments.--
            (1) Section 3401(a)(19) of the Internal Revenue Code of 
        1986 is amended by striking ``117 or 132'' and inserting ``117, 
        132, or 139''.
            (2) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 139 and inserting the following new items:

``Sec. 139. Certain amounts received by certified teachers.
``Sec. 140. Cross references to other Acts.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 202. 2-PERCENT FLOOR ON MISCELLANEOUS ITEMIZED DEDUCTIONS NOT TO 
              APPLY TO QUALIFIED ADVANCED CERTIFICATION EXPENSES OF 
              ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

    (a) In General.--Section 67(b) of the Internal Revenue Code of 1986 
(defining miscellaneous itemized deductions) is amended by striking 
``and'' at the end of paragraph (11), by striking the period at the end 
of paragraph (12) and inserting ``, and'', and by adding at the end the 
following new paragraph:
            ``(13) any deduction allowable for the qualified advanced 
        certification expenses paid or incurred by an eligible teacher 
        (as defined in section 139(b)).''.
    (b) Definitions.--Section 67 of the Internal Revenue Code of 1986 
(relating to 2-percent floor on miscellaneous itemized deductions) is 
amended by adding at the end the following new subsection:
    ``(g) Qualified Advanced Certification Expenses of Eligible 
Teachers.--For purposes of subsection (b)(13), the term `qualified 
advanced certification expenses' means expenses--
            ``(1) for fees, supplies, equipment, transportation, and 
        lodging required to secure the advanced certification provided 
        by the National Board for Professional Teaching Standards, and
            ``(2) with respect to which a deduction is allowable under 
        section 162 (determined without regard to this section).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

Summary: Teaching Excellence in America's Classrooms and Homerooms Act (TEACH) - Amends the Elementary and Secondary Education Act of 1965 to direct the Secretary of Education to provide financial assistance to the National Board for Professional Teaching Standards (NB) for: (1) helping States and local school districts provide fee support to teachers seeking NB certification; and (2) outreach and educational activities directly related to teachers' awareness and pursuit of such certification, with priority for districts in which there are a significant number of low-performing schools, or with low teacher participation rates in the NB certification process, or serving special populations.Amends the Internal Revenue Code to: (1) exclude from gross income any financial benefit, including incentive payment, received solely by reason of the successful completion by an eligible teacher of the requirements for NB advanced certification; and (2) make a two-percent floor on miscellaneous itemized deductions inapplicable to qualified NB advanced certification expenses of elementary and secondary school teachers.