II
112th CONGRESS
2d Session
S. 2180
IN THE SENATE OF THE UNITED STATES
March 8, 2012
Mr. Begich 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 provide a tax credit for professional school personnel in early childhood education, to expand the deduction for certain expenses of teachers to teachers in early childhood education, and to modify the credit for dependent care services.
Short title
This Act may be cited as the
Tax Credit for Early Educators Act of
2012
.
Tax credit for professional school personnel in early childhood education
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:
Professional school personnel in early childhood education
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.
Eligible individual
For purposes of this section—
In general
The term eligible individual means any individual—
who is employed in a position which involves regular contact with students in an early childhood school or program, and
whose position involves the formulation or implementation of the educational program for such school or program.
Early childhood school or program
The term early childhood school or program means any school or program which provides early childhood education, as determined under State law.
Cost-of-Living adjustment
In general
In the case of any taxable year beginning in a calendar year after 2012, the $3,000 amount contained in subsection (a) shall be increased by an amount equal to—
such dollar 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 2011
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 increased to the next highest multiple of $10.
.
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 25D the following new item:
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Deduction for certain expenses of early childhood, preschool, elementary and secondary school teachers
In general
Subparagraph (D) of section 62(a)(2) of the Internal Revenue Code of 1986 (relating to certain expenses of elementary and secondary school teachers) is amended to read as follows:
Certain expenses of early childhood, preschool, elementary and secondary school teachers
In the case of taxable years beginning before 2017, the deductions allowed by section 162 which consist of expenses, not in excess of the applicable amount, paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom.
.
Definitions
Subsection (d) of section 62 of such Code (relating to definition; special rules) is amended to read as follows:
Definitions relating to early childhood, preschool, elementary and secondary school teachers
For purposes of subsection (a)(2)(D) and this subsection—
Applicable amount
The term applicable amount means—
$500 in the case of a full-time educator, and
$250 in any other case.
Eligible educator
The term eligible educator means, with respect to any taxable year, an individual who is—
a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school for at least 450 hours during a school year which ends during such taxable year, or
a teacher, instructor, counselor, or aid in a preschool or early childhood program for at least 450 hours during the taxable year.
Full-time educator
The term full-time educator means, with
respect to any taxable year, an individual who for such taxable year satisfies
the requirements of subparagraph (A) or (B) of paragraph (2) applied by
substituting 900 hours
for 450 hours
therein.
School
The term school means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law.
Preschool or early childhood program
The term preschool or early childhood program means any program which—
is for providing preschool and receives funds for carrying out preschool programs pursuant to—
part A of title I of the Elementary and Secondary Education Act of 1965, or
subpart 2 of part B of title I of such Act, or
is an early childhood program, as defined under section 103 of the Higher Education Act of 1965.
.
Effective date
The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
Modification of credit for dependent care services
In general
Subsection (a) of section 21 of the Internal Revenue Code of 1986 is amended to read as follows:
Allowance of credit
In the case of an individual for which there are 1 or more qualifying individuals (as defined in subsection (b)(1)) with respect to such individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 35 percent of the employment-related expenses (as defined in subsection (b)(2)) paid by such individual during the taxable year.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.