THE NATIONAL STEM EDUCATION TAX INCENTIVE FOR TEACHERS ACT OF 2009

THE NATIONAL STEM EDUCATION TAX INCENTIVE FOR TEACHERS ACT OF 2009
Prepared by:
Ana Ottman (aottman@wpllc.net)
February 3, 2009

OVERVIEW
On January 27, 2009, Rep. Vernon Ehlers (R-MI) introduced H.R. 705, the National STEM Education Tax Incentive for Teachers Act of 2009. The purpose of the bill is to encourage teachers to pursue teaching science, technology, engineering, and math subjects at elementary and secondary schools by providing certain tax incentives. A similar bill, H.R. 36 was introduced in the 110th Congress, but did not move through the legislative process.

The bill currently has 11 bipartisan co-sponsors: Rep. Russ Carnahan (D-MO); Rep. Elton Gallegly (R-CA); Rep. Bart Gordon (D-TN); Rep. Mazie Hirono (D-HI); Rep. Rush Holt (DNJ); Rep. Daniel Lipinski (D-IL); Rep. James McGovern (D-MA); Rep. Pete Olson (R-TX); Rep. Silvestre Reyes (D-TX); Rep. Laura Richardson (D-CA); and Rep. Ileana Ros-Lehtinen (RFL).

BILL DETAILS
H.R. 705 amends the Internal Revenue Code to allow teachers to receive a tax credit equal to ten percent of their undergraduate tuition. The credit must not exceed $1000 per taxable year, or $1500 for those teachers teaching in an elementary or secondary school receiving Title I funds. Eligible teachers are full-time teachers (including substitute teachers) in any grades kindergarten through 12th grade who: teach STEM courses in one or more of grades 9 – 12; teach STEM courses in one or more of kindergarten through grade 8; in the case of middle or secondary school teachers, received a baccalaureate or
similar degree in a STEM field; and are highly qualified as defined by the No Child Left Behind Act. If passed, this bill would become effective beginning the taxable years after the date of enactment.

NEXT STEPS
The National STEM Education Tax Incentive for Teachers Act of 2009 was referred to the House Committee on Ways and Means. Washington Partners will continue to monitor this bill as it moves through the legislative process. To read Rep. Ehlers’ press release on the bill’s introduction, visit
http://www.house.gov/apps/list/press/mi03_ehlers/STEM_tax_credit_introdu_2009.html..