,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #beaj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #ai1         
#bjai,mr4 ,book] introduc$ ! foll[+     
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 provide a refundable tax cr$it = c]ta9 
tea*]s z a supplem5t to ,/ate ef=t to   
provide tea*]s ) a livable wage1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,respect1 ,advancem5t1 &
 ,increas+ ,support = ,educators ,act or
 ! ,,raise ,act4  #b4 ,refundable tea*] 
tax cr$it  7a7 ,all[ance ( tax cr$it    
7#a7 ,9 g5]al ,subp>t ,c ( "p ,,iv (    
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #cf;,b ! foll[+ new       
section3  #cf;,c4 ,tea*] tax cr$it  7a7 
,cr$it all[$ ,9 ! case ( an individual  
:o is an eligible educator dur+ s*ool   
ye>s end+ ) or )9 ! taxable ye>1 !re    
%all be all[$ z a cr$it aga9/ ! tax     
impos$ by ?is *apt] an am\nt equal to ! 

sum (--  7#a7 #ejj1 plus  7#b7 9 ! case 
( an eligible educator :o is employ$ at 
a qualify+ s*ool1 ! applicable am\nt4   
7b7 ,applicable am\nt ,= purposes (     
subsection 7a71 ! applicable am\nt is ! 
am\nt :i* be>s ! same ratio 7n to exce$ 
"o7 to #i1ejj 7#g1ejj1 9 ! case ( any   
e>ly *ildhood educator )\t a ba*elor's  
degree7 z--  7#a7 ! numb] ( p]c5tage    
po9ts by :i* ! /ud5t pov]ty ratio = su* 
qualify+ s*ool exce$s #di p]c5t1 be>s to
  7#b7 #bf p]c5tage po9ts4  7c7         
,eligible educator ,= purposes ( ?is    
section--  7#a7 ,9 g5]al ,! t]m eligible
 educator means-- 7,a7 any elem5t>y or  
second>y tea*]1 &  7,b7 any e>ly        
*ildhood educator4  7#b7 ,elem5t>y or   
second>y tea*]  7,a7 ,9 g5]al ,! t]m    
elem5t>y or second>y tea*] means an     
individual :o--  7i7 is a tea*] ( record
 :o provides direct classroom tea*+ 7or 
classroom-type tea*+ 9 a nonclassroom   
sett+7 9 a public elem5t>y s*ool or a   
public second>y s*ool = n less ?an #ge  
p]c5t ( ! normal or /atutory numb] (    

h\rs ( "w = a full-"t tea*] ov] a       
complete s*ool ye> 7z det]m9$ by ! ,/ate
 9 :i* ! s*ool is locat$71  7ii7 meets  
applicable ,/ate c]tification & lic5sure
 requirem5ts1 includ+ any requirem5ts = 
c]tification obta9$ ?r\gh alt]native    
r\tes to c]tification1 9 ! ,/ate 9 :i*  
su* s*ool is locat$ 9 ! subject area 9  
:i* ! individual is ! tea*] ( record1 & 
7iii7 has met ! requirem5ts ( clauses   
7i7 & 7ii7 = a p]iod ( n less ?an #a ye>
 be=e ! fir/ day ( ! taxable ye>4  7,b7 
,tea*] ( record ,= purposes (           
subp>agraph 7,a71 ! t]m tea*] ( record  
means a tea*] :o has be5 assign$ !      
responsibility = specifi$ pupils' le>n+ 
9 a grade1 subject1 or c\rse z reflect$ 
on ! s*ool's (ficial record ( att5dance4
  7#c7 ,e>ly *ildhood educator ,! t]m   
e>ly *ildhood educator means an         
individual :o-- 7,a7 has--  7i7 an      
associate's degree or high]1 or  7ii7   
cr$5tials or a lic5se "u ,/ate law =    
e>ly *ildhood education1  7,b7 has      
prim>y responsibility = ! le>n+ &       

developm5t ( *ildr5 9 an e>ly *ildhood  
education program 7z def9$ 9 section    
#ajc ( ! ,high] ,education ,act ( #aife 
7#bj ,u4,s4,c4 #ajjc77 dur+ ! taxable   
ye>1 &  7,c7 has met ! requirem5ts (    
subp>agraphs 7,a7 & 7,b7 = a p]iod ( n  
less ?an #a ye> be=e ! fir/ day ( !     
taxable ye>4  7d7 ,qualify+ s*ool  7#a7 
,9 g5]al ,! t]m qualify+ s*ool means1 ) 
respect to any s*ool ye>-- 7,a7 a public
 elem5t>y s*ool or a public second>y    
s*ool t--  7i7 is 9 ! s*ool di/rict ( a 
local educational ag5cy t is eligible 9 
su* ye> = assi/ance pursuant to "p ,a ( 
title ,i ( ! ,elem5t>y & ,second>y      
,education ,act ( #aife 7#bj ,u4,s4,c4  
#fcaa et seq471 or  7ii7 is s]v$ by an  
educational s]vice ag5cy1 or a location 
op]at$ by an educational s]vice ag5cy1 t
 is eligible1 = ! ye> 9 :i* !           
det]m9ation is made1 = assi/ance "u "p  
,a ( title ,i ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#fcaa et seq471  7,b7 an elem5t>y s*ool 
or second>y s*ool t is fund$ by !       

,bureau ( ,indian ,education & t is 9 ! 
s*ool di/rict ( a local educational     
ag5cy t is eligible 9 su* ye> =         
assi/ance pursuant to "p ,a ( title ,i (
 ! ,elem5t>y & ,second>y ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #fcaa et seq471 
or  7,c7 an e>ly *ildhood education     
program 7z def9$ 9 section #ajc ( !     
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajjc77 t s]ves *ildr5 :o     
receive1 or are eligible =1 s]vices =   
:i* f9ancial assi/ance is provid$ 9     
accordance ) ! ,*ild ,c>e & ,developm5t 
,block ,grant ( #aiij 7#db ,u4,s4,c4    
#iheh et seq47 or ! *ild & adult c>e    
food program e/abli%$ "u section #ag ( !
 ,ri*>d ,b4 ,russell ,national ,s*ool   
,lun* ,act 7#db ,u4,s4,c4 #agff74  7#b7 
,,esea def9itions ,= purposes ( ?is     
subsection1 ! t]ms educational s]vice   
ag5cy1 elem5t>y s*ool1 local educational
 ag5cy1 second>y s*ool1 & ,/ate         
educational ag5cy h ! mean+s giv5 su*   
t]ms 9 section #haja ( ! ,elem5t>y &    
,second>y ,education ,act ( #aife 7#bj  

,u4,s4,c4 #ghja et seq474  7e7 ,/ud5t   
pov]ty ratio  7#a7 ,9 g5]al ,! t]m /ud5t
 pov]ty ratio means-- 7,a7 ) respect to 
any qualify+ s*ool describ$ 9           
subp>agraph 7,a7 or 7,b7 ( subsection   
7d77#a71 ! ratio 7express$ z a p]c5tage7
 (--  7i7 ! total numb] ( *ildr5 s]v$ at
 su* qualify+ s*ool meet+ at lea/ "o    
measure ( pov]ty describ$ 9 section     
#aaac7;a77#e7 ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#fcac7;a77#e771 to  7ii7 ! total numb] (
 *ildr5 s]v$ at su* qualify+ s*ool1 &   
7,b7 ) respect to any qualify+ s*ool    
describ$ 9 subsection 7d77#a77;,c71 !   
ratio 7express$ z a p]c5tage7 (--  7i7 !
 total numb] ( *ildr5 att5d+ su*        
qualify+ s*ool :o are eligible = ! ,*ild
 ,c>e & ,developm5t ,block ,grant (     
#aiij 7#db ,u4,s4,c4 #iheh et seq47 or !
 *ild & adult c>e food program e/abli%$ 
"u section #ag ( ! ,ri*>d ,b4 ,russell  
,national ,s*ool ,lun* ,act 7#db        
,u4,s4,c4 #agff71 to  7ii7 ! total numb]
 ( *ildr5 att5d+ su* qualify+ s*ool4    

7#b7 ,det]m9ation ( ratio ,9 det]m9+ !  
/ud5t pov]ty ratio ) respect to a       
qualify+ s*ool "u p>agraph 7#a77;,a71 ! 
,secret>y %all use ! same measure (     
pov]ty z is us$ = purposes ( det]m9+ !  
allocation ( funds "u "p ,a ( title ,i (
 ! ,elem5t>y & ,second>y ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #fcaa et seq47 )
 respect to ! qualify+ s*ool4  7f7      
,inflation adju/m5t  7#a7 ,9 g5]al ,9 ! 
case ( any taxable ye> beg9n+ aft]      
#bjai1 ea* ( ! doll> am\nts 9           
subsections 7a7 & 7b7 %all be increas$  
by an am\nt equal to--  7,a7 su* doll>  
am\nt1 multipli$ by  7,b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ 9 subp>agraph     
7,a77ii7 !re( cal5d> ye> #bjah = cal5d> 
ye> #bjaf4  7#b7 ,r\nd+ ,if any increase
 det]m9$ "u p>agraph 7#a7 is n a        
multiple ( #ej1 su* increase %all be    
r\nd$ to ! ne>e/ multiple ( #ej4  4     
7#b7 ,con=m+ am5dm5ts  7,a7 ,! table (  
sections = subp>t ,c ( "p ,,iv (        

sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #cf;,b ! 
foll[+ new item3  ,sec4 #cf;,c4 ,tea*]  
tax cr$it4  4  7,b7 ,section            
#fbaa7;b77#d77;,a7 ( su* ,code is am5d$ 
by ins]t+ #cf;,c1 aft] #cf;,b14  7,c7   
,section #acbd7;b77#b7 ( title #ca1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
#cf;,c1 aft] #cf;,b14  7b7 ,in=mation   
%>+ ,! ,secret>y ( ,education %all      
provide su* in=mation z necess>y to !   
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 = purposes (      
det]m9+ :e!r a s*ool is a qualify+ s*ool
 7z def9$ 9 section #cf;,c ( ! ,int]nal 
,rev5ue ,code ( #aihf1 z add$ by        
subsection 7a774  7c7 ,supplem5tation ( 
,/ate & local educational funds ,a ,/ate
 educational ag5cy or local educational 
ag5cy 7z su* t]ms are def9$ 9 section   
#haja ( ! ,elem5t>y & ,second>y         
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ghja et seq477 %all n r$uce or adju/   
any tea*] pay or tea*] loan =giv5ess    

program due to ! eligibility ( tea*]s )9
 ! jurisdiction ( su* ag5cy = ! tax     
cr$it "u section #cf;,c ( ! ,int]nal    
,rev5ue ,code ( #aihf4 ,ea* ,/ate       
educational ag5cy & local educational   
ag5cy 7z s def9$71 ^u reque/ by !       
,secret>y ( ! ,treasury1 %all demon/rate
 t ! me?odology us$ to allocate tea*]   
pay & tea*] loan =giv5ess 7if           
applicable7 to qualify+ s*ools 7z def9$ 
9 section #cf;,c7d7 ( su* ,code7 ensures
 t ea* su* s*ool receives ! same ,/ate &
 local funds = tea*] comp5sation x w\ld 
receive if ! cr$it "u su* section #cf;,c
 _h n be5 enact$4  7d7 ,employ]         
limitations  7#a7 ,prohibition ( use 9  
collective b>ga9+ ,an employ] t engages 
9 collective b>ga9+ ) employees :o are  
eligible educators1 z def9$ 9 section   
#cf;,c7c7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 %all n include ! am\nt ( ! tea*] 
tax cr$it "u section #cf;,c ( su* ,code 
9 det]m9+ ! am\nt ( sal>y or o!r        
comp5sation provid$ to any employee "u !
 collective b>ga9+ agreem5t4  7#b7      

,prohibition ( use z puni%m5t or        
retribution ,an employ] ( an eligible   
educator1 z def9$ 9 section #cf;,c ( !  
,int]nal ,rev5ue ,code ( #aihf1 %all n  
*ange ! "w assignm5t or location ( !    
eligible educator if "o ( ! prim>y      
reasons = ! *ange is to--  7,a7 prev5t !
 eligible educator f receiv+ a tea*] tax
 cr$it "u section #cf;,c ( su* ,code2 or
  7,b7 r$uce ! am\nt ( ! tea*] tax cr$it
 t ! eligible educator w receive4  7#c7 
,en=cem5t ,not)/&+ any o!r provision (  
law1 ! ,f$]al ,labor ,relations         
,au?ority %all h ! au?ority to          
inve/igate & en=ce any alleg$ violation 
( ?is section 9 ! same mann]1 & subject 
to ! same proc$ures1 z w\ld apply to an 
allegation ( an unfair labor practice "u
 section #gaah ( title #e1 ,unit$ ,/ates
 ,code4  7#d7 ,def9ition ,9 ?is         
subsection-- 7,a7 ! t]m affect+ comm]ce 
has ! mean+ giv5 ! t]m 9 section #b ( ! 
,national ,labor ,relations ,act 7#bi   
,u4,s4,c4 #aeb72  7,b7 ! t]m employee   
means an employee ( an employ] :o is    

employ$ 9 a bus9ess ( an employ] t      
affects comm]ce2 &  7,c7 ! t]m employ]  
means a p]son1 includ+ a ,/ate or       
political subdivision ( a ,/ate1 engag$ 
9 a bus9ess affect+ comm]ce4  7e7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #c4 ,increase 9 & expansion (    
d$uction = exp5ses ( elem5t>y & second>y
 s*ool tea*]s  7a7 ,increase  7#a7 ,9   
g5]al ,subp>agraph 7,d7 ( section       
#fb7;a77#b7 ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by /rik+ #bej & ins]t+  
#ejj4  7#b7 ,inflation adju/m5t ,section
 #fb7;d77#c7 ( su* ,code is am5d$--     
7,a7 by /rik+ #bjae & ins]t+ #bjai2     
7,b7 by /rik+ ! #bej am\nt & ins]t+ ea* 
( ! doll> am\nts2 &  7,c7 by /rik+ #bjad
 9 subp>agraph 7,b7 !re( & ins]t+ #bjah4
  7b7 ,expansion to e>ly *ildhood       
educators ,section #fb7;d77#a7 ( !      
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ :o is a k9d]g>t5 
& ins]t+ :o is-- 7,a7 a k9d]g>t5  2     

7#b7 by /rik+ ! p]iod at ! end & ins]t+ 
1 &2 &  7#c7 by add+ at ! end ! foll[+  
new subp>agraph3  7,b7 an e>ly *ildhood 
educator 7z def9$ 9 section #bjj ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajba77 9 an e>ly *ildhood    
education program 7z def9$ 9 section    
#ajc ( su* ,act 7#bj ,u4,s4,c4 #ajjc77 =
 at lea/ #a1jbj h\rs dur+ a ye>4  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to am\nts paid or   
incurr$ 9 taxable ye>s beg9n+ aft] !    
date ( ! enactm5t ( ?is ,act4  #d4      
,m&atory fund+ to support local         
educational ag5cies t ma9ta9 or increase
 tea*] sal>ies ,section #bjjc ( !       
,elem5t>y & ,second>y ,education ,act ( 
#aife 7#bj ,u4,s4,c4 #ffjc7 is am5d$--  
7#a7 9 ! section head+1 by /rik+        
,au?orization ( appropriations & ins]t+ 
,fund+2 &  7#b7 by /rik+ subsection 7a7 
& ins]t+ ! foll[+3  7a7 ,appropriations 
= "p ,a  7#a7 ,9 g5]al ,!re are au?oriz$
 to be appropriat$1 & !re are           
appropriat$1 out ( any funds n o!rwise  

appropriat$--  7,a7 = fiscal ye> #bjbj1 
#c1bjj1jjj1jjj to c>ry out "p ,a2 &     
7,b7 = fiscal ye> #bjba & ea* succe$+   
fiscal ye>1 ! am\nt appropriat$ "u ?is  
p>agraph = ! prec$+ ye>1 increas$ by a  
p]c5tage equal to ! annual p]c5tage     
increase 9 ! ,consum] ,price ,index =   
,all ,urban ,consum]s publi%$ by !      
,dep>tm5t ( ,labor = ! mo/ rec5t cal5d> 
ye>4  7#b7 ,res]vation = tea*] sal>y    
inc5tive grants  7,a7 ,def9itions ,9 ?is
 p>agraph3 7i7 ,eligible local          
educational ag5cy ,! t]m eligible local 
educational ag5cy means a local         
educational ag5cy t1 = ! prec$+ s*ool   
ye>1 ma9ta9$ or increas$ ! sal>y s*$ule 
= all tea*]s employ$ by ! local         
educational ag5cy4  7ii7 ,tea*] sal>y   
inc5tive res]vation ,! t]m tea*] sal>y  
inc5tive res]vation means1 = ea* fiscal 
ye>1 ! am\nt t is #bj p]c5t ( ! am\nt by
 :i* ! funds appropriat$ "u p>agraph    
7#a7 = ! fiscal ye> exce$s              
#b1bjj1jjj1jjj4  7,b7 ,9 g5]al ,= ea*   
fiscal ye> = :i* ! total am\nt          

appropriat$ "u p>agraph 7#a7 is great]  
?an #b1bjj1jjj1jjj1 ! ,secret>y %all1   
aft] mak+ any res]vations "u section    
#baja7;a71 res]ve & use ! tea*] sal>y   
inc5tive res]vation to aw>d grants1 bas$
 on allotm5ts "u subp>agraph 7,c71 to   
eligible local educational ag5cies =    
purposes describ$ 9 subp>agraph 7,e74   
7,c7 ,allotm5ts ,an allotm5t "u ?is     
subp>agraph = a fiscal ye> to an        
eligible local educational ag5cy %all   
be> ! same relation%ip to ! tea*] sal>y 
inc5tive res]vation z ! numb] ( *ildr5  
c\nt$ "u section #aabd7;c7 :o are s]v$  
by ! local educational ag5cy be>s to !  
total numb] ( su* *ildr5 c\nt$ "u su*   
section s]v$ by all eligible local      
educational ag5cies t submitt$ an       
application "u subp>agraph 7,d74  7,d7  
,application ,an eligible local         
educational ag5cy desir+ an allotm5t "u 
?is p>agraph %all submit to ! ,secret>y 
an application at su* "t1 9 su* mann]1 &
 conta9+ su* in=mation z ! ,secret>y may
 require4  7,e7 ,use ( funds ,a local   

educational ag5cy receiv+ an allotm5t "u
 subp>agraph 7,c7 may use ! allotm5t =  
any program or activity describ$ 9      
section #bajc7;b7 t ! local educational 
ag5cy selects4  7,f7 ,supplem5t1 n      
supplant ,a local educational ag5cy     
receiv+ an allotm5t "u subp>agraph 7,c7 
%all use ! allotm5t to supplem5t1 & n   
supplant1 any ,/ate funds or ef=ts to   
raise tea*] pay4  4