Bill to help teachers with out-of-pocket expenses passes out of House committee
01/28/2015

 

The House Education Committee passed a pro-teacher bill HB 1005 out of committee 11-0 this morning to provide a tax credit of up to $200 for teachers who spend money out-of-pocket for classroom materials.

 

ISTA supported the bill along with the Indiana Department of Education, Indiana Coalition for Public Education, Indiana Chamber of Commerce and AFT.

 

Indiana is only below North Carolina in the growth of teacher salaries in the last ten years according to NEA’s Ranking of the States. Prior to 2002, IRS provisions allowed teachers to deduct up to the full amount of expenditures from their income on materials. However, the amount has been capped at $250 since that time.

 

HB 1005 is certainly a step in the right direction – a tax credit is better than a deduction in that a credit is a direct offset from a teacher’s tax liability.

 

Rep. Smaltz acknowledged that Indiana teachers are grossly underpaid. He also indicated that 22 percent of teachers spend up to $100 of their own money on materials each year and 54 percent spend more than $200. Rep. Smaltz raised the point that teachers incur significant student debt to pursue their passion for teaching. HB 1005 seeks to provide support for extra expenses teachers incur in their daily jobs to help students in their classrooms.

 

The House Education Committee voted to pass the bill and it now moves onto the House Ways and Means Committee for approval.

 

Please thank Rep. Ben Smaltz (R-Auburn) and co-authors Rep. Matt Ubelhor (R-Bloomfield) and Rep. Martin Carbaugh (R-Fort Wayne) for bringing forward this positive legislation to assist teachers.