RETAIN Act

II 116TH CONGRESS 2D SESSION S. 4314 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 SENATE OF THE UNITED STATES JULY 23, 2020 Mr. DURBIN (for himself, Ms. BALDWIN, and Ms. SMITH) 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 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 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 2 •S 4314 IS 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 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 3 •S 4314 IS (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 2015, the national median pay of early 6 childhood educators was a mere $28,570, 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 2016, the average teacher salary in pub- 20 lic elementary schools and secondary schools was 21 only $58,950, which is on average 21.4 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 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 4 •S 4314 IS (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 SEC. 4. REFUNDABLE TAX CREDIT FOR TEACHER AND 11 SCHOOL LEADER RETENTION. 12 (a) IN GENERAL.—Subpart C of part IV of sub- 13 chapter A of chapter 1 of subtitle A of the Internal Rev- 14 enue Code of 1986 is amended by inserting after section 15 36B the following new section: 16 ‘‘SEC. 36C. TEACHER AND SCHOOL LEADER RETENTION 17 CREDIT. 18 ‘‘(a) ALLOWANCE OF CREDIT.— 19 ‘‘(1) IN GENERAL.—In the case of an individual 20 who is employed in a position described in paragraph 21 (2) during a school year ending with or within the 22 taxable year, there shall be allowed as a credit 23 against the tax imposed by this subtitle for the tax- 24 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 5 •S 4314 IS able year an amount equal to the applicable amount 1 (as determined under subsection (b)). 2 ‘‘(2) ELIGIBLE POSITIONS.—The positions de- 3 scribed in this paragraph shall consist of the fol- 4 lowing: 5 ‘‘(A) An eligible early childhood educator. 6 ‘‘(B) An eligible early childhood education 7 program director. 8 ‘‘(C) An eligible early childhood education 9 provider. 10 ‘‘(D) An eligible teacher. 11 ‘‘(E) An eligible paraprofessional. 12 ‘‘(F) An eligible school-based mental 13 health services provider. 14 ‘‘(G) An eligible school leader. 15 ‘‘(b) APPLICABLE AMOUNT.— 16 ‘‘(1) IN GENERAL.—For purposes of this sec- 17 tion, the applicable amount shall be an amount de- 18 termined based on the number of school years for 19 which the individual has been continuously employed 20 in any position described in subsection (a)(2), as fol- 21 lows: 22 ‘‘(A) Subject to paragraph (2), for the first 23 year of employment, $5,800. 24 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 6 •S 4314 IS ‘‘(B) For the second continuous year of 1 employment, $5,800. 2 ‘‘(C) For the third and fourth continuous 3 year of employment, $7,000. 4 ‘‘(D) For the fifth, sixth, seventh, eighth, 5 and ninth continuous year of employment, 6 $8,700. 7 ‘‘(E) For the tenth continuous year of em- 8 ployment, $11,600. 9 ‘‘(F) For the eleventh, twelfth, thirteenth, 10 fourteenth, and fifteenth continuous year of em- 11 ployment, $8,700. 12 ‘‘(G) For the sixteenth continuous year of 13 employment, $7,000. 14 ‘‘(H) For the seventeenth, eighteenth, 15 nineteenth, and twentieth continuous year of 16 employment, $5,800. 17 ‘‘(2) FIRST YEAR.—For purposes of the first 18 year of employment ending with or within a taxable 19 year, an individual must have been so employed for 20 a period of not less than 4 months before the first 21 day of such taxable year. 22 ‘‘(3) LIMITATION BASED ON TOTAL NUMBER OF 23 SCHOOL YEARS.—In the case of any individual who 24 has been employed in any position described in sub- 25 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 7 •S 4314 IS section (a)(2) for a total of more than 20 school 1 years, the applicable amount shall be reduced to 2 zero. 3 ‘‘(c) INFLATION ADJUSTMENT.— 4 ‘‘(1) IN GENERAL.—In the case of any taxable 5 year beginning after 2021, each of the dollar 6 amounts in subsection (b)(1) shall be increased by 7 an amount equal to— 8 ‘‘(A) such dollar amount, multiplied by 9 ‘‘(B) the cost-of-living adjustment deter- 10 mined under section 1(f)(3) for such calendar 11 year by substituting ‘calendar year 2020’ for 12 ‘calendar year 2016’ in subparagraph (A)(ii) 13 thereof. 14 ‘‘(2) ROUNDING.—If any increase determined 15 under paragraph (1) is not a multiple of $100, such 16 increase shall be rounded to the nearest multiple of 17 $100. 18 ‘‘(d) SUPPLEMENTING, NOT SUPPLANTING, STATE 19 AND LOCAL EDUCATION FUNDS.— 20 ‘‘(1) IN GENERAL.—A State educational agency 21 or local educational agency shall not reduce or ad- 22 just any compensation, or any assistance provided 23 through a loan forgiveness program, to an employee 24 of the State educational agency or local educational 25 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 8 •S 4314 IS agency who serves in any position described in sub- 1 section (a)(2) due to the individual’s eligibility for 2 the credit under this section. 3 ‘‘(2) METHODOLOGY.—Upon request by the 4 Secretary of Education, a State educational agency 5 or local educational agency shall reasonably dem- 6 onstrate that the methodology used to allocate 7 amounts for compensation and for loan forgiveness 8 to the employees described in paragraph (1) at 9 qualifying schools or qualifying early childhood edu- 10 cation programs ensures that employees at each 11 qualifying school or qualifying early childhood edu- 12 cation program in the State or served by the local 13 educational agency, respectively, receive the same 14 amount of State or local funds for compensation and 15 loan forgiveness that the qualifying school or quali- 16 fying early childhood education program would re- 17 ceive if the credit under this section had not been 18 enacted. 19 ‘‘(e) INFORMATION SHARING.—The Secretary of 20 Education and the Secretary of Health and Human Serv- 21 ices shall provide the Secretary with such information as 22 is necessary for purposes of determining whether an early 23 childhood education program or an elementary school or 24 secondary school satisfies the requirements for a quali- 25 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 9 •S 4314 IS fying early childhood education program or a qualifying 1 school, respectively. 2 ‘‘(f) DEFINITIONS.—For purposes of this section— 3 ‘‘(1) ESEA DEFINITIONS.—The terms ‘elemen- 4 tary school’, ‘local educational agency’, ‘secondary 5 school’, and ‘State educational agency’ have the 6 meanings given the terms in section 8101 of the Ele- 7 mentary and Secondary Education Act of 1965 (20 8 U.S.C. 7801). 9 ‘‘(2) ELIGIBLE EARLY CHILDHOOD EDUCATION 10 PROGRAM DIRECTOR.—The term ‘eligible early child- 11 hood education program director’ means an em- 12 ployee or officer of a qualifying early childhood edu- 13 cation program who is responsible for the daily in- 14 structional leadership and managerial operations of 15 such program. 16 ‘‘(3) ELIGIBLE EARLY CHILDHOOD EDUCATION 17 PROVIDER.—The term ‘eligible early childhood edu- 18 cation provider’ means an individual— 19 ‘‘(A) who— 20 ‘‘(i) has an associate’s degree or high- 21 er degree in early childhood education or a 22 related field, or 23 ‘‘(ii) is enrolled during the taxable 24 year in a program leading to such an asso- 25 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 10 •S 4314 IS ciate’s or higher degree and is making sat- 1 isfactory progress toward such degree, and 2 ‘‘(B) who is responsible for the daily in- 3 structional leadership and managerial oper- 4 ations of a qualifying early childhood education 5 program in a home-based setting. 6 ‘‘(4) ELIGIBLE EARLY CHILDHOOD EDUCA- 7 TOR.—The term ‘eligible early childhood educator’ 8 means an individual— 9 ‘‘(A) who— 10 ‘‘(i) has an associate’s degree or high- 11 er degree in early childhood education or a 12 related field, or 13 ‘‘(ii) is enrolled during the taxable 14 year in a program leading to such an asso- 15 ciate’s or higher degree and is making sat- 16 isfactory progress toward such degree, 17 ‘‘(B) who has credentials or a license 18 under State law for early childhood education, 19 as applicable, and 20 ‘‘(C) whose primary responsibility is for 21 the learning and development of children in a 22 qualifying early childhood education program 23 during the taxable year. 24 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 11 •S 4314 IS ‘‘(5) ELIGIBLE PARAPROFESSIONAL.—The term 1 ‘eligible paraprofessional’ means an individual— 2 ‘‘(A) who is a paraprofessional, as defined 3 in section 3201 of the Elementary and Sec- 4 ondary Education Act of 1965 (20 U.S.C. 5 7011), 6 ‘‘(B) who meets the applicable State pro- 7 fessional standards and qualifications pursuant 8 to section 1111(g)(2)(M) of such Act (20 9 U.S.C. 6311(g)(2)(M)), 10 ‘‘(C) whose primary responsibilities involve 11 working or assisting in a classroom setting, and 12 ‘‘(D) who is employed in a qualifying 13 school or a qualifying early childhood education 14 program. 15 ‘‘(6) ELIGIBLE SCHOOL-BASED MENTAL 16 HEALTH SERVICES PROVIDER.—The term ‘eligible 17 school-based mental health services provider’ means 18 an individual— 19 ‘‘(A) described in section 4102(6) of the 20 Elementary and Secondary Education Act of 21 1965 (20 U.S.C. 7112(6)), and 22 ‘‘(B) who is employed in a qualifying 23 school or a qualifying early childhood education 24 program. 25 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L0C42PROD with BILLS 12 •S 4314 IS ‘‘(7) ELIGIBLE SCHOOL LEADER.—The term 1 ‘eligible school leader’ means a principal, assistant 2 principal, or other individual who is— 3 ‘‘(A) an employee or officer of a qualifying 4 school, and 5 ‘‘(B) responsible for the daily instructional 6 leadership and managerial operations in the 7 qualifying school. 8 ‘‘(8) ELIGIBLE TEACHER.—The term ‘eligible 9 teacher’ means an individual who— 10 ‘‘(A) is an elementary school or secondary 11 school teacher who, as determined by the State 12 or local educational agency, is a teacher of 13 record who provides direct classroom teaching 14 (or classroom-type teaching in a nonclassroom 15 setting) to students in a qualifying school, and 16 ‘‘(B) meets applicable State certification 17 and licensure requirements, including any re- 18 quirements for certification obtained through 19 alternative routes to certification, in the State 20 in which such school is located and in the sub- 21 ject area in which the individual is the teacher 22 of record. 23 ‘‘(9) QUALIFYING EARLY CHILDHOOD EDU- 24 CATION PROGRAM.— 25 VerDate Sep 11 2014 02:37 Aug 10, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4314.IS S4314 kjohnson on DSK79L [Text truncated for display. 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