RAISE Act of 2023

The RAISE Act of 2023 creates a new refundable tax credit for K-12 teachers and early childhood educators working in schools with high student poverty rates. Eligible educators can receive a base $1,000 credit plus an additional amount up to $14,000 (or $9,000 for early childhood educators without bachelor's degrees) based on their school's student poverty ratio. The bill also increases the deduction for educator expenses from $250 to $500 and expands this deduction to cover early childhood educators. Additionally, it requires 20% of federal education funds above $2.2 billion to be reserved for teacher salary incentive grants in school districts that maintain or increase teacher pay.