The RETAIN Act would create a refundable federal tax credit for eligible early childhood educators, teachers, paraprofessionals, school leaders, and school-based mental health providers who work at qualifying schools or early childhood programs. The credit would depend on how many school years a person has been continuously employed in an eligible position. The bill would also require annual federal data on educator salaries.
For tax years beginning after December 31, 2025, eligible workers could qualify for a credit ranging from $5,800 to $11,600, depending on their years of continuous employment. The credit reaches $11,600 in the tenth year, then declines in later years and ends after 20 years. Special rules apply to first-year workers. Qualifying schools generally serve districts eligible for Title I aid, and qualifying early childhood programs must meet requirements in the bill. State and local agencies could not reduce an eligible worker’s compensation or loan forgiveness because of the credit.
The bill does not provide an estimate of the total federal cost. It sets credit amounts for eligible workers. No publicly available information.
The bill’s stated purpose is to reward educators and school staff for staying in their jobs, especially when serving students in high-need settings. Its findings describe educator shortages, low pay, and staff turnover as problems.
No publicly available information.