The RETAIN Act would create a refundable federal tax credit for eligible early childhood educators, teachers, paraprofessionals, program directors, school leaders, and school-based mental health providers. The credit would reward continuous employment at qualifying schools and early childhood education programs. It would range from $5,800 to $11,600 per year, depending on years of service, and would end after 20 years of eligible employment. The bill would also require annual salary data and reporting of employees’ years of continuous service. The tax credit changes would apply to tax years beginning after December 31, 2025.
If you work in an eligible position at a qualifying school or early childhood program, you may qualify for the credit. The amount depends on your years of continuous service in an eligible position. For the first year, you must have worked for at least four months before the first day of the tax year. The bill would prevent state and local education agencies from reducing your compensation or loan-forgiveness assistance because you qualify for the credit.
The bill sets the annual credit amounts but does not state the total cost to the federal government. No publicly available information.
The bill’s stated purpose is to reward educators and other school staff for staying in roles that serve high-need students. Its findings describe educator shortages and say experienced, qualified staff support student outcomes and teacher retention.
No publicly available information.