H.R. 4507: Teachers Utilizing Tutoring Opportunities for Relief Act

This bill, known as the Teachers Utilizing Tutoring Opportunities for Relief Act (or TUTOR Act), aims to provide a temporary tax credit for eligible teachers who offer tutoring services. Here’s a breakdown of its main components:

Tax Credit Overview

The Act proposes a tax credit for teachers who meet specific conditions related to their tutoring activities. The credit consists of two parts:

• Base Credit: Eligible teachers can receive a credit of $500 against their tax liability.
• Supplemental Amount: In addition to the base credit, teachers may receive an additional amount based on the number of qualified tutoring hours provided beyond 150 hours during the taxable year. This supplemental amount can increase their total credit but is capped at $500.

Eligibility Requirements

To qualify for this credit, teachers must meet the following criteria:

• Be employed as a teacher at a preschool, elementary school, or secondary school.
• Meet state certification and licensure requirements for their teaching positions.
• Provide at least 150 hours of qualified tutoring to students enrolled at the same type of school where they are employed.

Definition of Qualified Tutoring

Qualified tutoring must:

• Occur during times when school is not in session.
• Focus on academic subjects such as mathematics, reading and writing, or science.

Special Provision for Married Couples

If a married couple files jointly, each spouse who is an eligible teacher may claim the tax credit separately. This means both spouses can benefit from the credit if they both meet the eligibility criteria.

Reporting Requirements

The Secretary of the Treasury is required to submit an annual report to Congress regarding the use of this tax credit. This report must include:

• The number of individuals claiming the credit.
• The total and average number of qualified tutoring hours provided.
• The geographic distribution of credit claimants.
• Any additional information deemed necessary by the Secretary.

Implementation Timeline

The amendments made by this Act would be effective for taxable years beginning after December 31, 2025. However, the provision for the tax credit is set to terminate after December 31, 2032, meaning the tax credits would no longer be available for tax years following that date.

Clerical Amendments

To accommodate this new section within the tax code, a clerical amendment will be made to add the new section titled "Tutoring credit" within the internal revenue regulations.

Relevant Companies

None found.