text: 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.
target: 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.
feat_title: A bill to amend the Internal Revenue Code of 1986 to provide a tax incentive to individuals teaching in elementary and secondary schools located in rural or high unemployment areas and to individuals who achieve certification from the National Board for Professional Teaching Standards, and for other purposes.