Sec. 101. Refundable tax credit for educators and school leaders in elementary and secondary schools located in high poverty or rural areas
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Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section: In the case of an eligible teacher or school leader, 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 for the eligible academic year ending during such taxable year. For purposes of this section— In the case of an eligible teacher who performs services in a public kindergarten or a public elementary or secondary school described in subparagraph
(B)during the eligible academic year, the applicable amount is $1,000. A public kindergarten or a public elementary or secondary school is described in this subparagraph if— at least 75 percent of the students attending such kindergarten or school receive free or reduced-cost lunches under the school lunch program established under the Richard B. Russell National School Lunch Act , or such kindergarten or school is designated with a school locale code of 32, 33, 41, 42, or 43, as determined by the Secretary of Education. In the case of an eligible teacher who is described in paragraph
(1)and who is certified by the National Board for Professional Teaching Standards for the eligible academic year, paragraph (1)(A) shall be applied by substituting $2,000 for $1,000 . In the case of an eligible school leader who serves in a public kindergarten or a public elementary or secondary school described in paragraph (1)(B)(ii), paragraph (1)(A) shall be applied by substituting $2,000 for $1,000 . For purposes of this section, the term eligible teacher means, for any eligible academic year, an individual who is a kindergarten through grade 12 classroom teacher or instructor in a public kindergarten or a public elementary or secondary school on a full-time basis for such eligible academic year. For purposes of this section, the term eligible school leader means, for any eligible academic year, an individual who, on a full-time basis for such eligible academic year, is a kindergarten through grade 12 principal or assistant principal in a public kindergarten or a public elementary or is a school superintendent or other administrator employed by a local educational agency. For purposes of this section— The terms elementary school , secondary school , and local educational agency have the respective meanings given such terms by section 9101 of the Elementary and Secondary Education Act of 1965 . The term eligible academic year means any academic year ending in a taxable year beginning after December 31, 2015. . Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting , 36C after 36B . The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Tax credit for educators and school leaders in elementary and secondary schools located in high poverty or rural areas. . The amendments made by this section shall apply to academic years ending in taxable years beginning after December 31, 2015.