article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Incentives to Educate American Children (I Teach) Act of 2002''. SEC. 2. FINDINGS AND PURPOSES. (a) Findings.--Congress makes the following findings: (1) An estimated 2,000,000 new teachers will be needed over the next decade. (2) Under the No Child Left Behind Act of 2001, States must recruit qualified teachers by 2006, yet schools in rural areas and public schools with high poverty have trouble attracting and retaining teachers. (3) Fourteen percent of America's school children attend rural schools, and according to the Rural School and Community Trust 2000 report, ``Why Rural Matters'', rural education is crucial or very important to overall education performance in 25 States, so recruitment and retention of teachers is essential. (4) A 2000 study by the Education Trust reports that high poverty schools are twice as likely not to have teachers certified in their fields than other schools, which highlights that high poverty schools will need special help to meet the goals of No Child Left Behind Act of 2001. (5) The National Board for Professional Teaching Standards was founded in 1987, as a follow up to the landmark 1983 report, ``A Nation at Risk'', by the Carnegie Task Force on Teaching. The National Board for Professional Teaching Standards is an independent, nonprofit, and nonpartisan organization the mission of which is to establish high and rigorous standards for what accomplished teachers should know and be able to do. (6) Over 16,000 teachers from all 50 States and the District of Columbia have completed certification by the National Board for Professional Teaching Standards, which certification is a rigorous assessment process for teachers. (7) Recent data from the Accomplished Teaching Validation Study have demonstrated that teachers who are certified by the National Board for Professional Teaching Standards significantly outperform their peers who are not National Board certified on 11 of 13 key measures of teaching expertise. (8) Teacher salaries have remained stagnant over the past decade, according to a study by the National Education Association, and \2/3\ of the States do not meet the national average of $40,582 for teacher salaries. (b) Purposes.--The purposes of this Act are as follows: (1) To encourage teachers, through a refundable tax credit, to work in public elementary and secondary schools located in rural areas or schools with high poverty. (2) To provide an additional tax credit to teachers who achieve certification from the National Board for Professional Teaching Standards in order to recruit and retain highly qualified teachers in public elementary and secondary schools. SEC. 3. REFUNDABLE TAX CREDIT FOR INDIVIDUALS TEACHING IN ELEMENTARY AND SECONDARY SCHOOLS LOCATED IN HIGH POVERTY OR RURAL AREAS AND CERTIFIED TEACHERS. (a) In General.--Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 35 as section 36 and by inserting after section 34 the following new section: ``SEC. 35. TAX CREDIT FOR INDIVIDUALS TEACHING IN ELEMENTARY AND SECONDARY SCHOOLS LOCATED IN HIGH POVERTY OR RURAL AREAS AND CERTIFIED TEACHERS. ``(a) Allowance of Credit.--In the case of an eligible teacher, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the applicable amount for the eligible academic year ending during such taxable year. ``(b) Applicable Amount.--For purposes of this section-- ``(1) Teachers in schools in rural areas or schools with high poverty.-- ``(A) In general.--In the case of an eligible teacher who performs services in a public kindergarten or a public elementary or secondary school described in subparagraph (B) during the eligible academic year, the applicable amount is $1,000. ``(B) School described.--A public kindergarten or a public elementary or secondary school is described in this subparagraph if-- ``(i) at least 75 percent of the students attending such kindergarten or school receive free or reduced-cost lunches under the school lunch program established under the National School Lunch Act, or ``(ii) such kindergarten or school has a School Locale Code of 7 or 8, as determined by the Secretary of Education. ``(2) Certified teachers.--In the case of an eligible teacher who is certified by the National Board for Professional Teaching Standards for the eligible academic year, the applicable amount is $1,000. ``(3) Certified teachers in schools in rural areas or schools with high poverty.--In the case of an eligible teacher described in paragraphs (1) and (2), the applicable amount is $2,000. ``(c) Eligible Teacher.--For purposes of this section, the term `eligible teacher' means, for any eligible academic year, an individual who is a kindergarten through grade 12 classroom teacher or instructor in a public kindergarten or a public elementary or secondary school on a full-time basis for such eligible academic year. ``(d) Additional Definitions.--For purposes of this section-- ``(1) Elementary and secondary schools.--The terms `elementary school' and `secondary school' have the respective meanings given such terms by section 9101 of the Elementary and Secondary Education Act of 1965. ``(2) Eligible academic year.--The term `eligible academic year' means any academic year ending in a taxable year beginning after December 31, 2002.''. (b) Conforming Amendments.-- (1) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting before the period ``, or from section 35 of such Code''. (2) 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 striking the item relating to section 35 and inserting the following new items: ``Sec. 35. Tax credit for individuals teaching in elementary and secondary schools located in high poverty or rural areas and certified teachers. ``Sec. 36. Overpayments of tax.''. (c) Effective Date.--The amendments made by this section shall apply to academic years ending in taxable years beginning after December 31, 2002.
summary: Incentives to Educate American Children (I Teach) Act of 2002 - Amends the Internal Revenue Code to permit a tax credit of $1,000 for: (1) teachers in public elementary or secondary schools or public kindergartens in rural areas or areas with high poverty; and (2) teachers certified by the National Board for Professional Teaching Standards. Grants a credit of $2,000 for a teacher meeting both criteria.