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RAISE Act of 2025
3/25/2025, 8:05 AM
Summary of Bill HR 1611
The proposed tax credit would be refundable, meaning that even if a teacher does not owe any federal income tax, they would still receive the full amount of the credit. This is significant as it ensures that all eligible teachers, regardless of their tax liability, would benefit from this financial assistance.
The bill emphasizes the importance of supporting teachers who play a crucial role in shaping the future of our society by educating and inspiring the next generation. By providing this tax credit, the government aims to recognize the hard work and dedication of teachers and help alleviate some of the financial burdens they may face. In addition to providing a tax credit for teachers, the bill also includes provisions for other purposes related to improving the financial well-being of educators. Overall, the Teacher Tax Credit Act seeks to address the issue of low teacher salaries and provide much-needed financial relief to those who are essential to the education system.
Congressional Summary of HR 1611
Respect, Advancement, and Increasing Support for Educators Act of 2025 or the RAISE Act of 2025
This bill establishes a refundable federal tax credit for eligible educators and increases and expands the federal tax deduction for certain classroom and professional development expenses. The bill also increases federal funding for programs that support effective instruction.
Specifically, the bill allows (1) eligible educators (elementary and secondary public school teachers and early childhood educators) to claim a tax credit of $1,000, and (2) eligible educators employed at a qualifying school to claim an additional tax credit of up to $14,000 ($9,000 for an early childhood educator without a bachelor’s degree) based on the qualifying school’s student poverty ratio.
The bill generally defines a qualifying school as
- a public elementary or secondary school served by a local education agency eligible for federal grants that support the education of disadvantaged children,
- an elementary school or secondary school funded by the Bureau of Indian Education, or
- an early childhood education program serving children who are eligible for certain financial or food assistance.
Further, the bill increases to $500 ($300 in 2025) and continues to adjust annually the above-the-line tax deduction for certain classroom and professional development expenses of educators. The bill also expands eligibility for the credit to include early childhood educators. (Above-the-line tax deductions are subtracted from gross income to calculate adjusted gross income.)
Finally, the bill provides additional funding for education programs, including teacher salary incentive grants and professional development, certificate, and credentialing programs.
