[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1567 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1567
To amend the Internal Revenue Code of 1986 to address the teacher and
school leader shortage in early childhood, elementary, and secondary
education, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 11, 2023
Mr. Durbin (for himself, Ms. Baldwin, and Ms. Smith) 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 address the teacher and
school leader shortage in early childhood, elementary, and secondary
education, and for other purposes.
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 ``Retaining Educators Takes Added
Investment Now Act'' or the ``RETAIN Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to create a refundable tax credit for
early childhood educators, teachers, early childhood education program
directors, school leaders, and school-based mental health services
providers in early childhood, elementary, and secondary education
settings that rewards retention based on the time spent serving high-
need students.
SEC. 3. FINDINGS.
Congress finds the following:
(1) The shortage of experienced, 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 students.
(2) The shortage is the result of many factors including
low pay, frequent turnover in school leadership, poor teaching
conditions, and inadequate teacher supports.
(3) 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 field.
(4) A child's access to high-quality early childhood
education is critical to supporting positive outcomes, and
early childhood educators--
(A) play an important role in setting the
foundation for future learning, and
(B) promote the development of vital skills,
habits, and mindsets that children need to be
successful in school and in life.
(5) In 2021, the national median pay of early childhood
educators was a mere $30,210, with many early childhood
educators relying on government assistance programs such as
Medicaid, the supplemental nutrition assistance program
established under the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.), or the temporary assistance for needy families
program established under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), and struggling to provide
for their own families.
(6) Studies have demonstrated that well-qualified,
experienced teachers are the single most important school-based
element contributing to a child's academic achievement and
success.
(7) In the 2021-2022 academic year, the average teacher
salary in public elementary schools and secondary schools was
only $66,397, a 2 percent increase from the previous academic
year. When adjusted for inflation, the average teacher salary
has declined by 6.4 percent over the past decade.
(8) On average, public elementary school and secondary
school teachers were paid 23.5 percent less than other college
graduates working in non-teaching fields, and many teachers
struggle with large amounts of student loan debt.
(9) In 2021, the average teacher salary for a first-year
teacher in a public elementary school or secondary school was
$41,770.
(10) An experienced, well-qualified education workforce
must also be reflective of the diversity of the student body
across race, ethnicity, and disability.
(11) Higher pay for teachers can result in a more diverse
teacher workforce, and minority students often perform better
on standardized tests, have improved attendance, and are
suspended less frequently when they have at least one same-race
teacher.
(12) Experienced, 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 conditions.
(13) Between February 2020 and May 2022, at least 300,000
teachers at public elementary schools and secondary schools
left the field, a nearly 3 percent decline in the teacher
workforce.
SEC. 4. REFUNDABLE TAX CREDIT FOR TEACHER AND SCHOOL LEADER RETENTION.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of subtitle A of the Internal Revenue Code of 1986 is amended by
inserting after section 36B the following new section:
``SEC. 36C. TEACHER AND SCHOOL LEADER RETENTION CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--In the case of an individual who is
employed in a position described in paragraph (2) during a
school year ending with or within the taxable year, 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
(as determined under subsection (b)).
``(2) Eligible positions.--The positions described in this
paragraph shall consist of the following:
``(A) An eligible early childhood educator.
``(B) An eligible early childhood education program
director.
``(C) An eligible early childhood education
provider.
``(D) An eligible teacher.
``(E) An eligible paraprofessional.
``(F) An eligible school-based mental health
services provider.
``(G) An eligible school leader.
``(b) Applicable Amount.--
``(1) In general.--For purposes of this section, 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
(a)(2), as follows:
``(A) Subject to paragraph (2), for the first year
of employment, $5,800.
``(B) For the second continuous year of employment,
$5,800.
``(C) For the third and fourth continuous year of
employment, $7,000.
``(D) For the fifth, sixth, seventh, eighth, and
ninth continuous year of employment, $8,700.
``(E) For the tenth continuous year of employment,
$11,600.
``(F) For the eleventh, twelfth, thirteenth,
fourteenth, and fifteenth continuous year of
employment, $8,700.
``(G) For the sixteenth continuous year of
employment, $7,000.
``(H) For the seventeenth, eighteenth, nineteenth,
and twentieth continuous year of employment, $5,800.
``(2) First year.--For purposes of the first year of
employment ending with or within a taxable year, an individual
must have been so employed for a period of not less than 4
months before the first day of such taxable year.
``(3) Limitation based on total number of school years.--In
the case of any individual who has been employed in any
position described in subsection (a)(2) for a total of more
than 20 school years, the applicable amount shall be reduced to
zero.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2024, each of the dollar amounts in subsection
(b)(1) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by
substituting `calendar year 2023' for `calendar year
2016' in subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase determined under paragraph
(1) is not a multiple of $100, such increase shall be rounded
to the nearest multiple of $100.
``(d) Supplementing, Not Supplanting, State and Local Education
Funds.--
``(1) In general.--A State educational agency or local
educational agency shall not reduce or adjust any compensation,
or any assistance provided through a loan forgiveness program,
to an employee of the State educational agency or local
educational agency who serves in any position described in
subsection (a)(2) due to the individual's eligibility for the
credit under this section.
``(2) Methodology.--Upon request by the Secretary of
Education, 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 (1) 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 agency, respectively, 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 enacted.
``(e) 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 school, respectively.
``(f) Definitions.--For purposes of this section--
``(1) ESEA definitions.--The terms `elementary school',
`local educational agency', `secondary school', and `State
educational agency' have the meanings given the terms in
section 8101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
``(2) 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
program.
``(3) Eligible early childhood education provider.--The
term `eligible early childhood education provider' means an
individual--
``(A) who--
``(i) has an associate's degree or higher
degree in early childhood education or a
related field, or
``(ii) 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 degree, and
``(B) who is responsible for the daily
instructional leadership and managerial operations of a
qualifying early childhood education program in a home-
based setting.
``(4) Eligible early childhood educator.--The term
`eligible early childhood educator' means an individual--
``(A) who--
``(i) has an associate's degree or higher
degree in early childhood education or a
related field, or
``(ii) 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 degree,
``(B) who has credentials or a license under State
law for early childhood education, as applicable, and
``(C) whose primary responsibility is for the
learning and development of children in a qualifying
early childhood education program during the taxable
year.
``(5) Eligible paraprofessional.--The term `eligible
paraprofessional' means an individual--
``(A) who is a paraprofessional, as defined in
section 3201 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7011),
``(B) who meets the applicable State professional
standards and qualifications pursuant to section
1111(g)(2)(M) of such Act (20 U.S.C. 6311(g)(2)(M)),
``(C) whose primary responsibilities involve
working or assisting in a classroom setting, and
``(D) who is employed in a qualifying school or a
qualifying early childhood education program.
``(6) Eligible school-based mental health services
provider.--The term `eligible school-based mental health
services provider' means an individual--
``(A) described in section 4102(6) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7112(6)), and
``(B) who is employed in a qualifying school or a
qualifying early childhood education program.
``(7) Eligible school leader.--The term `eligible school
leader' means a principal, assistant principal, or other
individual who is--
``(A) an employee or officer of a qualifying
school, and
``(B) responsible for the daily instructional
leadership and managerial operations in the qualifying
school.
``(8) Eligible teacher.--The term `eligible teacher' means
an individual who--
``(A) is an elementary school or secondary school
teacher who, as determined by the State or local
educational agency, is a teacher of record who provides
direct classroom teaching (or classroom-type teaching
in a nonclassroom setting) to students in a qualifying
school, and
``(B)(i) meets applicable State certification and
licensure requirements, including any requirements for
certification obtained through alternative routes to
certification, in the State in which such school is
located and in the subject area in which the individual
is the teacher of record, or
``(ii) is enrolled during the taxable year in a
program leading to State certification and licensure as
described in clause (i) and is making satisfactory
progress toward such certification and licensure
requirements.
``(9) Qualifying early childhood education program.--
``(A) In general.--The term `qualifying early
childhood education program' means an early childhood
education program, as defined in section 103 of the
Higher Education Act of 1965 (20 U.S.C. 1003), that,
regardless of setting--
``(i) serves children who receive services
for which financial assistance is provided in
accordance with the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9857 et
seq.), the Head Start Act (42 U.S.C. 9831 et
seq.), or the child and adult care food program
established under section 17 of the Richard B.
Russell National School Lunch Act (42 U.S.C.
1766), and
``(ii) participates in a State tiered and
transparent system for measuring program
quality.
``(B) Special rule.--Notwithstanding subparagraph
(A), an early childhood education program that does not
satisfy the requirements of subparagraph (A)(ii) shall
be deemed to be a qualifying early childhood education
program until September 30, 2023, if the program--
``(i) satisfies all requirements of
subparagraph (A) except for clause (ii) of such
subparagraph, and
``(ii)(I) meets the Head Start program
performance standards described in section
641A(a) of the Head Start Act (42 U.S.C.
9836a(a)), if applicable, or
``(II) is accredited by a national
accreditor of early learning programs as of the
date of enactment of the Retaining Educators
Takes Added Investment Now Act.
``(10) Qualifying school.--The term `qualifying school'
means--
``(A) a public elementary school or secondary
school that--
``(i) 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 1965
(20 U.S.C. 6311 et seq.), or
``(ii) is served or operated by an
educational service agency that is eligible for
such assistance, or
``(B) 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 assistance.''.
(b) W-2 Reporting of Continuous Employment for Certain Positions at
Qualifying Early