RETAIN Act

I 117TH CONGRESS 1ST SESSION H. R. 1732 To amend the Internal Revenue Code of 1986 to address the teacher and school leader shortage in early childhood, elementary, and secondary education, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 10, 2021 Mrs. BUSTOS introduced the following bill; which was referred to the Com- mittee on Ways and Means, and in addition to the Committee on Edu- cation and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to address the teacher and school leader shortage in early childhood, elementary, and secondary education, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Retaining Educators 4 Takes Added Investment Now Act’’ or the ‘‘RETAIN 5 Act’’. 6 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 1732 IH SEC. 2. PURPOSE. 1 The purpose of this Act is to create a refundable tax 2 credit for early childhood educators, teachers, early child- 3 hood education program directors, school leaders, and 4 school-based mental health services providers in early 5 childhood, elementary, and secondary education settings 6 that rewards retention based on the time spent serving 7 high-need students. 8 SEC. 3. FINDINGS. 9 Congress finds the following: 10 (1) The shortage of experienced, qualified early 11 childhood educators and elementary school and sec- 12 ondary school teachers is a national problem that 13 compromises the academic outcomes and long-term 14 success of students. 15 (2) The shortage is the result of many factors 16 including low pay, frequent turnover in school lead- 17 ership, poor teaching conditions, and inadequate 18 teacher supports. 19 (3) The shortage is worse in high-poverty areas 20 where the factors contributing to the shortage are 21 particularly acute and have an increased negative 22 impact on teachers of color remaining in the field. 23 (4) A child’s access to high-quality early child- 24 hood education is critical to supporting positive out- 25 comes, and early childhood educators— 26 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 1732 IH (A) play an important role in setting the 1 foundation for future learning, and 2 (B) promote the development of vital skills, 3 habits, and mindsets that children need to be 4 successful in school and in life. 5 (5) In 2019, the national median pay of early 6 childhood educators was a mere $30,520, with many 7 early childhood educators relying on government as- 8 sistance programs such as Medicaid, the supple- 9 mental nutrition assistance program established 10 under the Food and Nutrition Act of 2008 (7 U.S.C. 11 2011 et seq.), or the temporary assistance for needy 12 families program established under part A of title IV 13 of the Social Security Act (42 U.S.C. 601 et seq.), 14 and struggling to provide for their own families. 15 (6) Studies have demonstrated that well-quali- 16 fied, experienced teachers are the single most impor- 17 tant school-based element contributing to a child’s 18 academic achievement and success. 19 (7) In 2019, the average teacher salary in pub- 20 lic elementary schools and secondary schools was 21 only $64,470, which is on average 19.2 percent less 22 than other college graduates working in non-teach- 23 ing fields, and with many teachers struggling with 24 large amounts of student loan debt. 25 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 1732 IH (8) An experienced, well-qualified education 1 workforce must also be reflective of the diversity of 2 the student body across race, ethnicity, and dis- 3 ability. 4 (9) Experienced, well-qualified school leaders 5 and school-based mental health service providers are 6 essential for providing strong educational opportuni- 7 ties and services for students and promoting teacher 8 retention through improved professional supports 9 and teaching conditions. 10 (10) In 2020, surveys found nearly 27 percent 11 of educators were considering leaving teaching due 12 to the COVID–19 pandemic, including 55 percent of 13 teachers with more than 30 years of experience. 14 SEC. 4. REFUNDABLE TAX CREDIT FOR TEACHER AND 15 SCHOOL LEADER RETENTION. 16 (a) IN GENERAL.—Subpart C of part IV of sub- 17 chapter A of chapter 1 of subtitle A of the Internal Rev- 18 enue Code of 1986 is amended by inserting after section 19 36B the following new section: 20 ‘‘SEC. 36C. TEACHER AND SCHOOL LEADER RETENTION 21 CREDIT. 22 ‘‘(a) ALLOWANCE OF CREDIT.— 23 ‘‘(1) IN GENERAL.—In the case of an individual 24 who is employed in a position described in paragraph 25 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 1732 IH (2) during a school year ending with or within the 1 taxable year, there shall be allowed as a credit 2 against the tax imposed by this subtitle for the tax- 3 able year an amount equal to the applicable amount 4 (as determined under subsection (b)). 5 ‘‘(2) ELIGIBLE POSITIONS.—The positions de- 6 scribed in this paragraph shall consist of the fol- 7 lowing: 8 ‘‘(A) An eligible early childhood educator. 9 ‘‘(B) An eligible early childhood education 10 program director. 11 ‘‘(C) An eligible early childhood education 12 provider. 13 ‘‘(D) An eligible teacher. 14 ‘‘(E) An eligible paraprofessional. 15 ‘‘(F) An eligible school-based mental 16 health services provider. 17 ‘‘(G) An eligible school leader. 18 ‘‘(b) APPLICABLE AMOUNT.— 19 ‘‘(1) IN GENERAL.—For purposes of this sec- 20 tion, the applicable amount shall be an amount de- 21 termined based on the number of school years for 22 which the individual has been continuously employed 23 in any position described in subsection (a)(2), as fol- 24 lows: 25 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 1732 IH ‘‘(A) Subject to paragraph (2), for the first 1 year of employment, $5,800. 2 ‘‘(B) For the second continuous year of 3 employment, $5,800. 4 ‘‘(C) For the third and fourth continuous 5 year of employment, $7,000. 6 ‘‘(D) For the fifth, sixth, seventh, eighth, 7 and ninth continuous year of employment, 8 $8,700. 9 ‘‘(E) For the tenth continuous year of em- 10 ployment, $11,600. 11 ‘‘(F) For the eleventh, twelfth, thirteenth, 12 fourteenth, and fifteenth continuous year of em- 13 ployment, $8,700. 14 ‘‘(G) For the sixteenth continuous year of 15 employment, $7,000. 16 ‘‘(H) For the seventeenth, eighteenth, 17 nineteenth, and twentieth continuous year of 18 employment, $5,800. 19 ‘‘(2) FIRST YEAR.—For purposes of the first 20 year of employment ending with or within a taxable 21 year, an individual must have been so employed for 22 a period of not less than 4 months before the first 23 day of such taxable year. 24 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 1732 IH ‘‘(3) LIMITATION BASED ON TOTAL NUMBER OF 1 SCHOOL YEARS.—In the case of any individual who 2 has been employed in any position described in sub- 3 section (a)(2) for a total of more than 20 school 4 years, the applicable amount shall be reduced to 5 zero. 6 ‘‘(c) INFLATION ADJUSTMENT.— 7 ‘‘(1) IN GENERAL.—In the case of any taxable 8 year beginning after 2022, each of the dollar 9 amounts in subsection (b)(1) shall be increased by 10 an amount equal to— 11 ‘‘(A) such dollar amount, multiplied by 12 ‘‘(B) the cost-of-living adjustment deter- 13 mined under section 1(f)(3) for such calendar 14 year by substituting ‘calendar year 2021’ for 15 ‘calendar year 2016’ in subparagraph (A)(ii) 16 thereof. 17 ‘‘(2) ROUNDING.—If any increase determined 18 under paragraph (1) is not a multiple of $100, such 19 increase shall be rounded to the nearest multiple of 20 $100. 21 ‘‘(d) SUPPLEMENTING, NOT SUPPLANTING, STATE 22 AND LOCAL EDUCATION FUNDS.— 23 ‘‘(1) IN GENERAL.—A State educational agency 24 or local educational agency shall not reduce or ad- 25 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 1732 IH just any compensation, or any assistance provided 1 through a loan forgiveness program, to an employee 2 of the State educational agency or local educational 3 agency who serves in any position described in sub- 4 section (a)(2) due to the individual’s eligibility for 5 the credit under this section. 6 ‘‘(2) METHODOLOGY.—Upon request by the 7 Secretary of Education, a State educational agency 8 or local educational agency shall reasonably dem- 9 onstrate that the methodology used to allocate 10 amounts for compensation and for loan forgiveness 11 to the employees described in paragraph (1) at 12 qualifying schools or qualifying early childhood edu- 13 cation programs ensures that employees at each 14 qualifying school or qualifying early childhood edu- 15 cation program in the State or served by the local 16 educational agency, respectively, receive the same 17 amount of State or local funds for compensation and 18 loan forgiveness that the qualifying school or quali- 19 fying early childhood education program would re- 20 ceive if the credit under this section had not been 21 enacted. 22 ‘‘(e) INFORMATION SHARING.—The Secretary of 23 Education and the Secretary of Health and Human Serv- 24 ices shall provide the Secretary with such information as 25 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 1732 IH is necessary for purposes of determining whether an early 1 childhood education program or an elementary school or 2 secondary school satisfies the requirements for a quali- 3 fying early childhood education program or a qualifying 4 school, respectively. 5 ‘‘(f) DEFINITIONS.—For purposes of this section— 6 ‘‘(1) ESEA DEFINITIONS.—The terms ‘elemen- 7 tary school’, ‘local educational agency’, ‘secondary 8 school’, and ‘State educational agency’ have the 9 meanings given the terms in section 8101 of the Ele- 10 mentary and Secondary Education Act of 1965 (20 11 U.S.C. 7801). 12 ‘‘(2) ELIGIBLE EARLY CHILDHOOD EDUCATION 13 PROGRAM DIRECTOR.—The term ‘eligible early child- 14 hood education program director’ means an em- 15 ployee or officer of a qualifying early childhood edu- 16 cation program who is responsible for the daily in- 17 structional leadership and managerial operations of 18 such program. 19 ‘‘(3) ELIGIBLE EARLY CHILDHOOD EDUCATION 20 PROVIDER.—The term ‘eligible early childhood edu- 21 cation provider’ means an individual— 22 ‘‘(A) who— 23 VerDate Sep 11 2014 02:41 May 07, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 1732 IH ‘‘(i) has an associate’s degree or high- 1 er degree in early childhood education or a 2 related field, or 3 ‘‘(ii) is enrolled during the taxable 4 year in a program leading to such an asso- 5 ciate’s or higher degree and is making sat- 6 isfactory progress toward such degree, and 7 ‘‘(B) who is responsible for the daily in- 8 structional leadership and managerial oper- 9 ations of a qualifying early childhood education 10 program in a home-based setting. 11 ‘‘(4) ELIGIBLE EARLY CHILDHOOD EDUCA- 12 TOR.—The term ‘eligible early childhood educator’ 13 means an individual— 14 ‘‘(A) who— 15 ‘‘(i) has an associate’s degree or high- 16 er degree in early childhood education or a 17 related field, or 18 ‘‘(ii) is enrolled during the taxable 19 year in a program leading to such an asso- 20 ciate’s or higher degree and is making sat- 21 isfactory progress toward such degree, 22 ‘‘(B) who has credentials or a license 23 under State law for early childhood education, 24 as applicable, and 25 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 1732 IH ‘‘(C) whose primary responsibility is for 1 the learning and development of children in a 2 qualifying early childhood education program 3 during the taxable year. 4 ‘‘(5) ELIGIBLE PARAPROFESSIONAL.—The term 5 ‘eligible paraprofessional’ means an individual— 6 ‘‘(A) who is a paraprofessional, as defined 7 in section 3201 of the Elementary and Sec- 8 ondary Education Act of 1965 (20 U.S.C. 9 7011), 10 ‘‘(B) who meets the applicable State pro- 11 fessional standards and qualifications pursuant 12 to section 1111(g)(2)(M) of such Act (20 13 U.S.C. 6311(g)(2)(M)), 14 ‘‘(C) whose primary responsibilities involve 15 working or assisting in a classroom setting, and 16 ‘‘(D) who is employed in a qualifying 17 school or a qualifying early childhood education 18 program. 19 ‘‘(6) ELIGIBLE SCHOOL-BASED MENTAL 20 HEALTH SERVICES PROVIDER.—The term ‘eligible 21 school-based mental health services provider’ means 22 an individual— 23 VerDate Sep 11 2014 19:31 May 03, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1732.IH H1732 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 1732 IH ‘‘(A) described in section 4102(6) of the 1 Elementary and Secondary Education Act of 2 1965 (20 U.S.C. 7112(6)), and 3 ‘‘(B) who is employed in a qualifying 4 school or a qualifying early childhood education 5 program. 6 ‘‘(7) ELIGIBLE SCHOOL LEADER.—The term 7 ‘eligible school leader’ means a principal, assistant 8 principal, or other individual who is— 9 ‘‘(A) an employee or officer of a qualifying 10 school, and 11 ‘‘(B) responsible for the daily instructional 12 leadership and managerial operations in the 13 qualifying school. 14 ‘‘(8) ELIGIBLE TEACHER.—The term ‘eligible 15 teacher’ means an individual who— 16 ‘‘(A) is an elementary school or secondary 17 school teacher who, as determined by the State 18 or local educational agency, is a teacher of 19 record who provides direct classroom teaching 20 (or classroom-type teaching in a nonclassroom 21 setting) to students in a qualifying school, and 22 ‘‘(B) meets applicable State certification 23 and licensure requirements, including any re- 24 quirements f [Text truncated for display. 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