Sponsors (4)
Creates a nonrefundable tutoring tax credit for eligible preschool, elementary, and secondary teachers: $500 base plus up to $500 supplemental tied to tutoring hours above 150 (effective 2026–2032).
The bill incentivizes extensive K–12 tutoring by giving credentialed teachers a modest tax credit and generates oversight data, but it leaves out low-income and less-credentialed educators, adds administrative burden, and imposes federal fiscal costs.
Teachers who provide at least 150 hours of qualifying tutoring receive a $500 tax credit (plus up to $500 more for additional hours), directly increasing take-home pay for participating educators.
Students stand to benefit because the credit encourages more out-of-school tutoring in math, reading/writing, and science, which may improve academic outcomes.
Congress and taxpayers gain better oversight and data on program uptake and geography through required annual Treasury reports, enabling potential program evaluation and refinement.
All taxpayers bear the fiscal cost of the credit, which could reduce revenue available for other services or increase federal deficits over 2026–2032.
Low-income teachers with little or no income tax liability may receive no benefit because the credit is nonrefundable, excluding those who may need financial support most.
The 150-hour threshold and requirement for state certification will exclude part-time, uncertified, or early-career instructors from receiving the credit, limiting who can benefit.
Based on analysis of 2 sections of legislative text.
Official title: To amend the Internal Revenue Code of 1986 to establish a temporary tax credit for eligible teachers who provide tutoring services, and for other purposes.
Introduced July 17, 2025 by Jennifer Kiggans · Last progress July 17, 2025
Creates a nonrefundable federal tax credit for eligible preschool, elementary, and secondary school teachers who provide after-hours academic tutoring. The credit is a base $500 plus up to $500 supplemental credit tied to qualified tutoring hours above 150, phasing in to the supplemental cap, and applies for tax years beginning after December 31, 2025 through 2032. Defines eligibility and qualified tutoring subjects, requires separate spouse claim rules on joint returns, directs Treasury to issue regulations and an annual report to Congress on utilization, and adds the new credit to the Internal Revenue Code table of sections.