HR1611-119

1. Short title This Act may be cited as the Respect, Advancement, and Increasing Support for Educators Act of 2025 or the RAISE Act of 2025.

2. Refundable teacher tax credit 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 individual who is an eligible educator during school years ending with or within the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the sum of— $1,000, plus in the case of an eligible educator who is employed at a qualifying school, the applicable amount. For purposes of subsection (a), the applicable amount is the amount which bears the same ratio (not to exceed one) to $14,000 ($9,000, in the case of any early childhood educator without a bachelor's degree) as— the number of percentage points by which the student poverty ratio for such qualifying school exceeds 39 percent, bears to 36 percentage points. For purposes of this section— The term eligible educator means— any elementary or secondary teacher, and any early childhood educator. The term elementary or secondary teacher means an individual who— is a teacher of record who provides direct classroom teaching (or classroom-type teaching in a nonclassroom setting) in a public elementary school or a public secondary school for not less than 75 percent of the normal or statutory number of hours of work for a full-time teacher over a complete school year (as determined by the State in which the school is located), meets the applicable requirements for State certification and licensure in the State in which such school is located in the subject area in which the individual is the teacher of record, and has met the requirements of clauses (i) and (ii) for a period of not less than 1 year before the first day of the taxable year. For purposes of subparagraph (A), the term teacher of record means a teacher who has been assigned the responsibility for specified pupils’ learning in a grade, subject, or course as reflected on the school’s official record of attendance. The term early childhood educator means an individual who— has a Child Development Associate credential (or an equivalent credential), or has an associate's degree or higher, meets the applicable requirements for State certification, licensure, or permitting under State law for early childhood education, has primary responsibility for the learning and development of children in an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) for not less than 75 percent of the normal or statutory number of hours of work for a full-time teacher over a complete program year, as determined by the Secretary of Health and Human Services, and has met the requirements of subparagraphs (A), (B), and (C) for a period of not less than 1 year before the first day of the taxable year. The term qualifying school means, with respect to any school year— a public elementary school or a public secondary school that— is served by a local educational agency that is eligible in such year for assistance pursuant to part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), or is served by an educational service agency, or a location operated by an educational service agency, that is eligible, for the year in which the determination is made, for assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), an elementary school or secondary school that is funded by the Bureau of Indian Education, or an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) that serves children who receive, or are eligible for, services for which financial assistance is provided in accordance with the Child Care and Development Block Grant of 1990 (42 U.S.C. 9857 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). For purposes of this subsection, the terms educational service agency, elementary school, local educational agency, secondary school, and State educational agency have the meanings given such terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801). The term student poverty ratio means— with respect to any qualifying school described in subparagraph (A) or (B) of subsection (d)(1), the ratio (expressed as a percentage) of— the total number of children served at such qualifying school meeting at least one measure of poverty described in section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), to the total number of children served at such qualifying school, and with respect to any qualifying school described in subsection (d)(1)(C), the ratio (expressed as a percentage) of— the total number of children attending such qualifying school who are eligible for services under the Child Care and Development Block Grant of 1990 (42 U.S.C. 9857 et seq.) or for 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), to the total number of children attending such qualifying school. In determining the student poverty ratio with respect to a qualifying school under paragraph (1)(A), the Secretary shall use the same measure of poverty as is used for purposes of determining the allocation of funds under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) with respect to the qualifying school. In the case of any taxable year beginning after 2026, each of the dollar amounts in subsections (a) and (b) 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, determined by substituting in subparagraph (A)(ii) thereof calendar year 2025 for calendar year 2016. If any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50. 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: Section 6211(b)(4)(A) of such Code is amended by inserting 36C, after 36B,. Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B,. The Secretary of Education shall— collect such information as necessary for purposes of determining whether a school is a qualifying school (as defined in section 36C of the Internal Revenue Code of 1986, as added by subsection (a)) and the appropriate amount of tax credit under such section; and provide such information to the Secretary of the Treasury (or the Secretary's delegate). As a condition of receiving Federal funds and if requested by the Secretary of Education, each qualifying school shall collect and submit to the Secretary of Education such information as may be necessary to enable the Secretary of Education to carry out paragraph (1). A State educational agency or local educational agency (as such terms are defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) shall not reduce or adjust any teacher pay or teacher loan forgiveness program due to the eligibility of teachers within the jurisdiction of such agency for the tax credit under section 36C of the Internal Revenue Code of 1986. Each State educational agency and local educational agency (as so defined), upon request by the Secretary of the Treasury, shall demonstrate that the methodology used to allocate teacher pay and teacher loan forgiveness (if applicable) to qualifying schools (as defined in section 36C(d) of such Code) ensures that each such school receives the same State and local funds for teacher compensation it would receive if the credit under such section 36C had not been enacted. An agency or other entity that funds, licenses, or regulates an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) shall not reduce or adjust any teacher pay or teacher loan forgiveness program, or permit such a reduction or adjustment in the early childhood education program, due to the eligibility of teachers within the jurisdiction of such agency for the tax credit under section 36C of the Internal Revenue Code of 1986. Each such agency or entity, upon request by the Secretary of the Treasury, shall demonstrate that the methodology used to allocate teacher pay and teacher loan forgiveness (if applicable) to such early childhood education programs ensures that each such program receives the same State and local funds for teacher compensation it would receive if the credit under such section 36C had not been enacted. An employer that engages in collective bargaining with employees who are eligible educators, as defined in section 36C(c) of the Internal Revenue Code of 1986, shall not include the amount of the teacher tax credit under section 36C of such Code in determining the amount of salary or other compensation provided to any employee under the collective bargaining agreement. An employer of an eligible educator, as defined in section 36C of the Internal Revenue Code of 1986, shall not change the work assignment or location of the eligible educator if one of the primary reasons for the change is to— prevent the eligible educator from receiving a teacher tax credit under section 36C of such Code; or reduce the amount of the teacher tax credit that the eligible educator will receive. Notwithstanding any other provision of law, the Federal Labor Relations Authority shall have the authority to investigate and enforce any alleged violation of this section in the same manner, and subject to the same procedures, as would apply to an allegation of an unfair labor practice under section 7118 of title 5, United States Code. In this subsection— the term affecting commerce has the meaning given the term in section 2 of the National Labor Relations Act (29 U.S.C. 152); the term employee means an employee of an employer who is employed in a business of an employer that affects commerce; and the term employer means a person, including a State or political subdivision of a State, engaged in a business affecting commerce. The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 36C.Teacher tax credit(a)Credit allowedIn the case of an individual who is an eligible educator during school years ending with or within the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the sum of—(1)$1,000, plus(2)in the case of an eligible educator who is employed at a qualifying school, the applicable amount.(b)Applicable amountFor purposes of subsection (a), the applicable amount is the amount which bears the same ratio (not to exceed one) to $14,000 ($9,000, in the case of any early childhood educator without a bachelor's degree) as—(1)the number of percentage points by which the student poverty ratio for such qualifying school exceeds 39 percent, bears to(2)36 percentage points.(c)Eligible educatorFor purposes of this section—(1)In generalThe term eligible educator means—(A)any elementary or secondary teacher, and(B)any early childhood educator.(2)Elementary or secondary teacher(A)In generalThe term elementary or secondary teacher means an individual who—(i)is a teacher of record who provides direct classroom teaching (or classroom-type teaching in a nonclassroom setting) in a public elementary school or a public secondary school for not less than 75 percent of the normal or statutory number of hours of work for a full-time teacher over a complete school year (as determined by the State in which the school is located),(ii)meets the applicable requirements for State certification and licensure in the State in which such school is located in the subject area in which the individual is the teacher of record, and(iii)has met the requirements of clauses (i) and (ii) for a period of not less than 1 year before the first day of the taxable year.(B)Teacher of recordFor purposes of subparagraph (A), the term teacher of record means a teacher who has been assigned the responsibility for specified pupils’ learning in a grade, subject, or course as reflected on the school’s official record of attendance.(3)Early childhood educatorThe term early childhood educator means an individual who—(A)has a Child Development Associate credential (or an equivalent credential), or has an associate's degree or higher, (B)meets the applicable requirements for State certification, licensure, or permitting under State law for early childhood education,(C)has primary responsibility for the learning and development of children in an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) for not less than 75 percent of the normal or statutory number of hours of work for a full-time teacher over a complete program year, as determined by the Secretary of Health and Human Services, and(D)has met the requirements of subparagraphs (A), (B), and (C) for a period of not less than 1 year before the first day of the taxable year.(d)Qualifying school(1)In generalThe term qualifying school means, with respect to any school year—(A)a public elementary school or a public secondary school that—(i)is served by a local educational agency that is eligible in such year for assistance pursuant to 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 by an educational service agency, or a location operated by an educational service agency, that is eligible, for the year in which the determination is made, for assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.),(B)an elementary school or secondary school that is funded by the Bureau of Indian Education, or(C)an early childhood education program (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)) that serves children who receive, or are eligible for, services for which financial assistance is provided in accordance with the Child Care and Development Block Grant of 1990 (42 U.S.C. 9857 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).(2)ESEA definitionsFor purposes of this subsection, the terms educational service agency, elementary school, local educational agency, secondary school, and State educational agency have the meanings given such terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).(e)Student poverty ratio(1)In generalThe term student poverty ratio means—(A)with respect to any qualifying school described in subparagraph (A) or (B) of subsection (d)(1), the ratio (expressed as a percentage) of—(i)the total number of children served at such qualifying school meeting at least one measure of poverty described in section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6313(a)(5)), to(ii)the total number of children served at such qualifying school, and(B)with respect to any qualifying school described in subsection (d)(1)(C), the ratio (expressed as a percentage) of—(i)the total number of children attending such qualifying school who are eligible for services under the Child Care and Development Block Grant of 1990 (42 U.S.C. 9857 et seq.) or for 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), to(ii)the total number of children attending such qualifying school.(2)Determination of ratioIn determining the student poverty ratio with respect to a qualifying school under paragraph (1)(A), the Secretary shall use the same measure of poverty as is used for purposes of determining the allocation of funds under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) with respect to the qualifying school. (f)Inflation adjustment(1)In generalIn the case of any taxable year beginning after 2026, each of the dollar amounts in subsections (a) and (b) 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 the calendar year in which the taxable year begins, determined by substituting in subparagraph (A)(ii) thereof calendar year 2025 for calendar year 2016.(2)RoundingIf any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.. Sec. 36C. Teacher tax credit..

3. Increase in and expansion of deduction for expenses of elementary and secondary school teachers Subparagraph (D) of section 62(a)(2) of the Internal Revenue Code of 1986 is amended by striking $250 and inserting $500. Section 62(d)(3) of such Code is amended— by striking 2015 and inserting 2026; by striking the $250 amount and inserting each of the dollar amounts; and by striking 2014 in subparagraph (B) thereof and inserting 2025. Section 62(d)(1)(A) of the Internal Revenue Code of 1986 is amended— by striking who is a kindergarten and inserting who is— a kindergarten by striking the period at the end and inserting , or; and by adding at the end the following new subparagraph: an early childhood educator (as defined in section 200 of the Higher Education Act of 1965 (20 U.S.C. 1021)) in an early childhood education program (as defined in section 103 of such Act (20 U.S.C. 1003)) for at least 1,020 hours during a year. The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act. who is—(i)a kindergarten; (ii)an early childhood educator (as defined in section 200 of the Higher Education Act of 1965 (20 U.S.C. 1021)) in an early childhood education program (as defined in section 103 of such Act (20 U.S.C. 1003)) for at least 1,020 hours during a year..