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Tax Credits and Salary Incentives to Support Educators and Early Childhood Teachers.

This legislation establishes a new refundable tax credit for eligible educators, including K-12 teachers and early childhood staff, designed to supplement their income. Educators in high-poverty schools are eligible for a significantly higher credit amount. Additionally, the tax deduction for educators' out-of-pocket classroom expenses is doubled from $250 to $500 and extended to qualified early childhood educators.
Key points
New refundable tax credit for eligible educators: $1,000 base amount, plus up to $14,000 extra for teachers in qualifying high-poverty schools (based on student poverty ratio).
Increased tax deduction for classroom expenses from $250 to $500, now available also to qualified early childhood educators.
Mandatory federal funding reserved for school districts that maintain or increase teacher salary schedules, with strict rules preventing local agencies from reducing pay due to the new tax credit.
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Additional Information
RAISE Act of 2023
Print number: HR 3264
Sponsor: Rep. Schiff, Adam B. [D-CA-30]
Process start date: 2023-05-11