107th CONGRESS
1st Session
S. 904
To amend the Internal Revenue Code of 1986 to provide an above-the-line
deduction for qualified professional development expenses of elementary and
secondary school teachers and to allow a credit against income tax to elementary
and secondary school teachers who provide classroom materials.
IN THE SENATE OF THE UNITED STATES
May 16 (legislative day, MAY 15), 2001
Ms. COLLINS (for herself, Mr. WARNER, Ms. LANDRIEU, Mr. COCHRAN, Mr. ALLEN,
and Mr. HATCH) introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide an above-the-line
deduction for qualified professional development expenses of elementary and
secondary school teachers and to allow a credit against income tax to elementary
and secondary school teachers who provide classroom materials.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Teacher Relief Act of 2001'.
SEC. 2. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED PROFESSIONAL DEVELOPMENT
EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) DEDUCTION ALLOWED- Part VII of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 (relating to additional itemized deductions for individuals)
is amended by redesignating section 222 as section 223 and by inserting after
section 221 the following new section:
`SEC. 222. QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES.
`(a) ALLOWANCE OF DEDUCTION- In the case of an eligible educator, there shall
be allowed as a deduction an amount equal to the qualified professional development
expenses paid or incurred by the taxpayer during the taxable year.
`(b) MAXIMUM DEDUCTION- The deduction allowed under subsection (a) for any
taxable year shall not exceed $500.
`(c) QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES OF ELIGIBLE EDUCATORS- For
purposes of this section--
`(1) QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES-
`(A) IN GENERAL- The term `qualified professional development expenses'
means expenses for tuition, fees, books, supplies, equipment, and transportation
required for the enrollment or attendance of an individual in a qualified
course of instruction.
`(B) QUALIFIED COURSE OF INSTRUCTION- The term `qualified course of instruction'
means a course of instruction which--
`(I) directly related to the curriculum and academic subjects in which
an eligible educator provides instruction,
`(II) designed to enhance the ability of an eligible educator to understand
and use State standards for the academic subjects in which such educator
provides instruction,
`(III) designed to provide 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 talented), or
`(IV) designed to provide instruction in how best to discipline children
in the classroom and identify early and appropriate interventions
to help children described in subclause (III) to learn,
`(I) challenging State or local content standards and student performance
standards, or
`(II) strategies and programs that demonstrate effectiveness in increasing
student academic achievement and student performance, or substantially
increasing the knowledge and teaching skills of an eligible educator,
`(iii) is of sufficient intensity and duration to have a positive and
lasting impact on the performance of an eligible educator in the classroom
(which shall not include 1-day or short-term workshops and conferences),
except that this clause shall not apply to an activity if such activity
is 1 component described in a long-term comprehensive professional development
plan established by an eligible educator and the educator's supervisor
based upon an assessment of the needs of the educator, the students
of the educator, and the local educational agency involved, and
`(iv) is part of a program of professional development which is approved
and certified by the appropriate local educational agency as furthering
the goals of the preceding clauses.
`(C) LOCAL EDUCATIONAL AGENCY- The term `local educational agency' has
the meaning given such term by section 14101 of the Elementary and Secondary
Education Act of 1965, as in effect on the date of the enactment of this
section.
`(A) IN GENERAL- The term `eligible educator' means an individual who
is a kindergarten through grade 12 teacher, instructor, counselor, principal,
or aide in an elementary or secondary school for at least 900 hours during
a school year.
`(B) ELEMENTARY OR SECONDARY SCHOOL- The terms `elementary school' and
`secondary school' have the meanings given such terms by section 14101
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801),
as so in effect.
`(d) DENIAL OF DOUBLE BENEFIT-
`(1) IN GENERAL- No other deduction or credit shall be allowed under this
chapter for any amount taken into account for which a deduction is allowed
under this section.
`(2) COORDINATION WITH EXCLUSIONS- A deduction 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.'.
(b) DEDUCTION ALLOWED IN COMPUTING ADJUSTED GROSS INCOME- Section 62(a) of
the Internal Revenue Code of 1986 is amended by inserting after paragraph
(17) the following new paragraph:
`(18) QUALIFIED PROFESSIONAL DEVELOPMENT EXPENSES- The deduction allowed
by section 222.'.
(c) CONFORMING AMENDMENTS-
(1) Sections 86(b)(2), 135(c)(4), 137(b)(3), and 219(g)(3) of the Internal
Revenue Code of 1986 are each amended by inserting `222,' after `221,'.
(2) Section 221(b)(2)(C) of such Code is amended by inserting `222,' before
`911'.
(3) Section 469(i)(3)(E) of such Code is amended by striking `and 221' and
inserting `, 221, and 222'.
(4) The table of sections for part VII of subchapter B of chapter 1 of such
Code is amended by striking the item relating to section 222 and inserting
the following new items:
`Sec. 222. Qualified professional development expenses.
`Sec. 223. Cross reference.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable
years beginning after December 31, 2000.
SEC. 3. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO PROVIDE CLASSROOM
MATERIALS.
(a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to other credits) is amended by adding at the
end the following new section:
`SEC. 30B. CREDIT TO ELEMENTARY AND SECONDARY SCHOOL TEACHERS WHO PROVIDE
CLASSROOM MATERIALS.
`(a) ALLOWANCE OF CREDIT- In the case of an eligible educator, there shall
be allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to 50 percent of the qualified elementary and secondary
education expenses which are paid or incurred by the taxpayer during such
taxable year.
`(b) MAXIMUM CREDIT- The credit allowed by subsection (a) for any taxable
year shall not exceed $250.
`(1) ELIGIBLE EDUCATOR- The term `eligible educator' has the same meaning
given such term in section 222(c).
`(2) QUALIFIED ELEMENTARY AND SECONDARY EDUCATION EXPENSES- The term `qualified
elementary and secondary education expenses' means expenses for books, supplies
(other than nonathletic supplies for courses of instruction in health or
physical education), computer equipment (including related software and
services) and other equipment, and supplementary materials used by an eligible
educator in the classroom.
`(3) ELEMENTARY OR SECONDARY SCHOOL- The term `elementary or secondary school'
means any school which provides elementary education or secondary education
(through grade 12), as determined under State law.
`(1) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed under this
chapter for any expense for which credit is allowed under this section.
`(2) APPLICATION WITH OTHER CREDITS- The credit allowable under subsection
(a) for any taxable year shall not exceed the excess (if any) of--
`(A) the regular tax for the taxable year, reduced by the sum of the credits
allowable under subpart A and the preceding sections of this subpart,
over
`(B) the tentative minimum tax 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.'.
(b) CLERICAL AMENDMENT- The table of sections for subpart B of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended
by adding at the end the following new item:
`Sec. 30B. Credit to elementary and secondary school teachers who provide
classroom materials.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable
years beginning after December 31, 2001.
END
