The SEED Act expands who can claim the educator expense deduction under the Internal Revenue Code. Currently available to certain K-12 educators for unreimbursed classroom costs, the bill broadens eligibility to include early childhood educators (pre-kindergarten through pre-K), in addition to kindergarten through 12th grade teachers and related staff. The change is purely definitional and eligibility-based; it does not create a new deduction amount or alter existing deduction rules beyond who's eligible. The amendments apply to expenses incurred in taxable years beginning after December 31, 2025. The bill is introduced in the Senate by Sen. Bennet, with Sen. Collins as a co-sponsor, and is titled the Supporting Early-childhood Educators’ Deductions Act (SEED Act).
Key Points
- 1Expands the educator expense deduction to include early childhood educators (through pre-kindergarten) alongside elementary and secondary educators.
- 2Reframes the relevant definitions in the code to reflect inclusion of early childhood education in heading and category terms.
- 3The deduction continues to cover unreimbursed expenses teachers incur for classroom needs (e.g., books, supplies, equipment), but eligibility now includes early childhood educators.
- 4Effective for expenses incurred in taxable years beginning after December 31, 2025.
- 5Acknowledges current deduction structure remains; the bill does not change the deduction amount or categories beyond extending eligibility.