SEED Act
The SEED Act, introduced in the Senate by Senator Bennet (with Senator Collins), would expand the educator expense deduction to cover early childhood educators (including pre-kindergarten teachers) in addition to the current elementary and secondary (K-12) teachers. It amends the Internal Revenue Code to reword and broaden the categories that qualify for the deduction, so unreimbursed classroom expenses by early childhood educators can be claimed in the same way as those by K-12 teachers. The change is prospective: it applies to expenses incurred in taxable years beginning after December 31, 2025 (i.e., starting with the 2026 tax year). The bill does not specify a new deduction amount or create a new program; it simply expands who can claim the existing educator expense deduction.
Key Points
- 1Expands the educator expense deduction to include early childhood educators (pre-K) alongside elementary and secondary teachers.
- 2Reforms the code’s headings and definitions to reflect the broadened category: “early childhood, elementary, and secondary” education.
- 3Applies to expenses incurred in taxable years beginning after December 31, 2025 (tax year 2026 and later).
- 4Maintains the existing structure and amount of the deduction (no new dollar cap is specified in the bill, so the current limit remains in place).
- 5Does not create new programs or funding; it simply extends eligibility to a broader group of educators.