I
110th CONGRESS
1st Session
H. R. 1059
IN THE HOUSE OF REPRESENTATIVES
February 14, 2007
Mr. Paul introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide a tax credit for elementary and secondary school teachers.
Short title
This Act may be cited as the
Teacher Tax Cut Act of
2007
.
Credit for teachers of elementary or secondary schools
In general
Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:
Elementary and secondary school teachers
Allowance of credit
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to $3,000.
Definitions
Eligible individual
In general
Except as provided in subparagraph (B), for purposes of
subsection (a), the term eligible individual
means an individual
who—
is a teacher in an elementary or secondary school, and
is employed on a full-time basis for an academic year ending during the taxable year.
Excluded individuals
Such term does not include an individual who is employed, on a full-time basis for such academic year, as other staff (as defined in section 9101(29) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801(29))).
Elementary or secondary school
The term elementary or secondary
school
means any organization described in section 170(b)(1)(A)(ii)
which provides education solely at or below the 12th grade.
Cost-of-living adjustment
In general
In the case of any taxable year beginning in a calendar year after 2007, the $3,000 amount contained in subsection (a) shall be increased by—
such amount, multiplied by
the cost-of-living
adjustment determined under section 1(f)(3) for the calendar year in which the
taxable year begins, by substituting calendar year 2006
for
calendar year 1992
in subparagraph (B) thereof.
Rounding
If any increase determined under paragraph (1) is not a multiple of $10, such increase shall be rounded to the next highest multiple of $10.
Regulations
The Secretary shall prescribe regulations to carry out this section, including regulations providing for claiming the credit under this section on Form 1040EZ.
.
Clerical amendment
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25B the following new item:
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2006.