,i #aafth ,,congress #b;d ,session ,h4 ,r4 #ggfi ,,in ,,the ,,house ,,of ,,representatives ,july #bd1 #bjbj,mrs4 ,bustos introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to address the teacher and school leader shortage in early childhood1 elementary1 and secondary education1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,retaining ,educators ,takes ,added ,investment ,now ,act or the ,,retain ,act4 #b4 ,purpose ,the purpose of this ,act is to create a refundable tax credit for early childhood educators1 teachers1 early childhood education program directors1 school leaders1 and school-based mental health services providers in early childhood1 elementary1 and secondary education settings that rewards retention based on the time spent serving high-need students4 #c4 ,findings ,congress finds the following3 7#a7 ,the shortage of experienced1 qualified early childhood educators and elementary school and secondary school teachers is a national problem that compromises the academic outcomes and long-term success of students4 7#b7 ,the shortage is the result of many factors including low pay1 frequent turnover in school leadership1 poor teaching conditions1 and inadequate teacher supports4 7#c7 ,the shortage is worse in high-poverty areas where the factors contributing to the shortage are particularly acute and have an increased negative impact on teachers of color remaining in the field4 7#d7 ,a child's access to high-quality early childhood education is critical to supporting positive outcomes1 and early childhood educators-- 7,a7 play an important role in setting the foundation for future learning1 and 7,b7 promote the development of vital skills1 habits1 and mindsets that children need to be successful in school and in life4 7#e7 ,in #bjae1 the national median pay of early childhood educators was a mere #bh1egj1 with many early childhood educators relying on government assistance programs such as ,medicaid1 the supplemental nutrition assistance program established under the ,food and ,nutrition ,act of #bjjh 7#g ,u4,s4,c4 #bjaa et seq471 or the temporary assistance for needy families program established under part ,a of title ,,iv of the ,social ,security ,act 7#db ,u4,s4,c4 #fja et seq471 and struggling to provide for their own families4 7#f7 ,studies have demonstrated that well-qualified1 experienced teachers are the single most important school-based element contributing to a child's academic achievement and success4 7#g7 ,in #bjaf1 the average teacher salary in public elementary schools and secondary schools was only #eh1iej1 which is on average #ba4d percent less than other college graduates working in non-teaching fields1 and with many teachers struggling with large amounts of student loan debt4 7#h7 ,an experienced1 well-qualified education workforce must also be reflective of the diversity of the student body across race1 ethnicity1 and disability4 7#i7 ,experienced1 well-qualified school leaders and school-based mental health service providers are essential for providing strong educational opportunities and services for students and promoting teacher retention through improved professional supports and teaching conditions4 #d4 ,refundable tax credit for teacher and school leader retention 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,teacher and school leader retention credit 7a7 ,allowance of credit 7#a7 ,in general ,in the case of an individual who is employed in a position described in paragraph 7#b7 during a school year ending with or within the taxable year1 there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the applicable amount 7as determined under subsection 7b774 7#b7 ,eligible positions ,the positions described in this paragraph shall consist of the following3 7,a7 ,an eligible early childhood educator4 7,b7 ,an eligible early childhood education program director4 7,c7 ,an eligible early childhood education provider4 7,d7 ,an eligible teacher4 7,e7 ,an eligible paraprofessional4 7,f7 ,an eligible school-based mental health services provider4 7,g7 ,an eligible school leader4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of this section1 the applicable amount shall be an amount determined based on the number of school years for which the individual has been continuously employed in any position described in subsection 7a77#b71 as follows3 7,a7 ,subject to paragraph 7#b71 for the first year of employment1 #e1hjj4 7,b7 ,for the second continuous year of employment1 #e1hjj4 7,c7 ,for the third and fourth continuous year of employment1 #g1jjj4 7,d7 ,for the fifth1 sixth1 seventh1 eighth1 and ninth continuous year of employment1 #h1gjj4 7,e7 ,for the tenth continuous year of employment1 #aa1fjj4 7,f7 ,for the eleventh1 twelfth1 thirteenth1 fourteenth1 and fifteenth continuous year of employment1 #h1gjj4 7,g7 ,for the sixteenth continuous year of employment1 #g1jjj4 7,h7 ,for the seventeenth1 eighteenth1 nineteenth1 and twentieth continuous year of employment1 #e1hjj4 7#b7 ,first year ,for purposes of the first year of employment ending with or within a taxable year1 an individual must have been so employed for a period of not less than #d months before the first day of such taxable year4 7#c7 ,limitation based on total number of school years ,in the case of any individual who has been employed in any position described in subsection 7a77#b7 for a total of more than #bj school years1 the applicable amount shall be reduced to zero4 7c7 ,inflation adjustment 7#a7 ,in general ,in the case of any taxable year beginning after #bjba1 each of the dollar amounts in subsection 7b77#a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year by substituting calendar year #bjbj for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7#b7 ,rounding ,if any increase determined under paragraph 7#a7 is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 7d7 ,supplementing1 not supplanting1 ,state and local education funds 7#a7 ,in general ,a ,state educational agency or local educational agency shall not reduce or adjust any compensation1 or any assistance provided through a loan forgiveness program1 to an employee of the ,state educational agency or local educational agency who serves in any position described in subsection 7a77#b7 due to the individual's eligibility for the credit under this section4 7#b7 ,methodology ,upon request by the ,secretary of ,education1 a ,state educational agency or local educational agency shall reasonably demonstrate that the methodology used to allocate amounts for compensation and for loan forgiveness to the employees described in paragraph 7#a7 at qualifying schools or qualifying early childhood education programs ensures that employees at each qualifying school or qualifying early childhood education program in the ,state or served by the local educational agency1 respectively1 receive the same amount of ,state or local funds for compensation and loan forgiveness that the qualifying school or qualifying early childhood education program would receive if the credit under this section had not been enacted4 7e7 ,information sharing ,the ,secretary of ,education and the ,secretary of ,health and ,human ,services shall provide the ,secretary with such information as is necessary for purposes of determining whether an early childhood education program or an elementary school or secondary school satisfies the requirements for a qualifying early childhood education program or a qualifying school1 respectively4 7f7 ,definitions ,for purposes of this section-- 7#a7 ,,esea definitions ,the terms elementary school1 local educational agency1 secondary school1 and ,state educational agency have the meanings given the terms in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja74 7#b7 ,eligible early childhood education program director ,the term eligible early childhood education program director means an employee or officer of a qualifying early childhood education program who is responsible for the daily instructional leadership and managerial operations of such program4 7#c7 ,eligible early childhood education provider ,the term eligible early childhood education provider means an individual-- 7,a7 who-- 7i7 has an associate's degree or higher degree in early childhood education or a related field1 or 7ii7 is enrolled during the taxable year in a program leading to such an associate's or higher degree and is making satisfactory progress toward such degree1 and 7,b7 who is responsible for the daily instructional leadership and managerial operations of a qualifying early childhood education program in a home-based setting4 7#d7 ,eligible early childhood educator ,the term eligible early childhood educator means an individual-- 7,a7 who-- 7i7 has an associate's degree or higher degree in early childhood education or a related field1 or 7ii7 is enrolled during the taxable year in a program leading to such an associate's or higher degree and is making satisfactory progress toward such degree1 7,b7 who has credentials or a license under ,state law for early childhood education1 as applicable1 and 7,c7 whose primary responsibility is for the learning and development of children in a qualifying early childhood education program during the taxable year4 7#e7 ,eligible ,paraprofessional ,the term eligible paraprofessional means an individual-- 7,a7 who is a paraprofessional1 as defined in section #cbja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #gjaa71 7,b7 who meets the applicable ,state professional standards and qualifications pursuant to section #aaaa7;g77#b77,m7 of such ,act 7#bj ,u4,s4,c4 #fcaa7;g77#b77,m771 7,c7 whose primary responsibilities involve working or assisting in a classroom setting1 and 7,d7 who is employed in a qualifying school or a qualifying early childhood education program4 7#f7 ,eligible school-based mental health services provider ,the term eligible school-based mental health services provider means an individual-- 7,a7 described in section #dajb7f7 of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #gaab7f771 and 7,b7 who is employed in a qualifying school or a qualifying early childhood education program4 7#g7 ,eligible school leader ,the term eligible school leader means a principal1 assistant principal1 or other individual who is-- 7,a7 an employee or officer of a qualifying school1 and 7,b7 responsible for the daily instructional leadership and managerial operations in the qualifying school4 7#h7 ,eligible teacher ,the term eligible teacher means an individual who-- 7,a7 is an elementary school or secondary school teacher who1 as determined by the ,state or local educational agency1 is a teacher of record who provides direct classroom teaching 7or classroom-type teaching in a nonclassroom setting7 to students in a qualifying school1 and 7,b7 meets applicable ,state certification and licensure requirements1 including any requirements for certification obtained through alternative routes to certification1 in the ,state in which such school is located and in the subject area in which the individual is the teacher of record4 7#i7 ,qualifying early childhood education program 7,a7 ,in general ,the term qualifying early childhood education program means an early childhood education program1 as defined in section #ajc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjc71 that1 regardless of setting-- 7i7 serves children who receive services for which financial assistance is provided in accordance with the ,child ,care and ,development ,block ,grant ,act of #aiij 7#db ,u4,s4,c4 #iheh et seq471 the ,head ,start ,act 7#db ,u4,s4,c4 #ihca et seq471 or the child and adult care food program established under section #ag of the ,richard ,b4 ,russell ,national ,school ,lunch ,act 7#db ,u4,s4,c4 #agff71 and 7ii7 participates in a ,state tiered and transparent system for measuring program quality4 7,b7 ,special rule ,notwithstanding subparagraph 7,a71 an early childhood program that does not satisfy the requirements of subparagraph 7,a77ii7 shall be deemed to be a qualifying early childhood education program until ,september #cj1 #bjba1 if the program-- 7i7 satisfies all requirements of subparagraph 7,a7 except for clause 7ii7 of such subparagraph1 and 7ii7 7,i7 meets the ,head ,start program performance standards described in section #fda;,a7a7 of the ,head ,start ,act 7#db ,u4,s4,c4 #ihc;a7a771 if applicable1 or 7,,ii7 is accredited by a national accreditor of early learning programs as of the date of enactment of the ,retaining ,educators ,takes ,added ,investment ,now ,act4 7#aj7 ,qualifying school ,the term qualifying school means-- 7,a7 a public elementary school or secondary school that-- 7i7 is in the school district of a local educational agency that is eligible for assistance under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa et seq471 or 7ii7 is served or operated by an educational service agency that is eligible for such assistance1 or 7,b7 an elementary school or secondary school that is funded by the ,bureau of ,indian ,education and that is in the school district of a local educational agency that is eligible for such assistance4 4 7b7 ,w-#b reporting of continuous employment for certain positions at qualifying early childhood education programs or qualifying schools ,section #fjea7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#af71 by striking the period at the end of paragraph 7#ag7 and inserting 1 and1 and by inserting after paragraph 7#ag7 the following new paragraph3 7#ah7 in the case of an employee who is employed in a position described in subsection 7a77#b7 of section #cf;,c1 the number of school years for which such employee has been continuously employed in any such position4 4 7c7 ,conforming amendments 7#a7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #cf;,b the following3 ,sec4 #cf;,c4 ,teacher and school leader retention credit44 7#b7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended by striking and #cf;,b1 #afh7k77#d7 and inserting #cf;,b1 and #cf;,c4 7#c7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #e4 ,developing interagency data series ,the ,secretary of ,labor1 in coordination with the ,secretary of the ,treasury1 the ,secretary of ,education1 and the ,secretary of ,health and ,human ,services1 shall-- 7#a7 develop and publish on the internet website of the ,bureau of ,labor ,statistics a data series that captures-- 7,a7 the average base salary of teachers in elementary schools and secondary schools1 disaggregated by-- 7i7 employment in public elementary schools and secondary schools that receive assistance under part ,a of title ,i of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #fcaa et seq471 7ii7 employment in public elementary schools and secondary schools that do not receive such assistance1 and 7iii7 geographic region1 and 7,b7 the average base salary of early childhood educators1 disaggregated by highest level of degree attained1 and 7#b7 update the data series under paragraph 7#a7 on an annual basis4