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HR 5334119th CongressIn Committee
SEED Act of 2025
Introduced: Sep 11, 2025
Sponsor: Rep. Panetta, Jimmy [D-CA-19] (D-California)
Economy & TaxesTechnology & Innovation
Standard Summary
Comprehensive overview in 1-2 paragraphs
The SEED Act of 2025 expands the educator expense deduction to include early childhood educators, in addition to existing kindergarten through 12th grade (K-12) teachers. The bill updates the wording to reflect a broader category of eligible educators and clarifies that the deduction applies to unreimbursed classroom expenses such as books, supplies, equipment, and supplementary materials. The changes apply to expenses incurred in taxable years beginning after December 31, 2024, making the expansion effective for the 2025 tax year onward. In short, more educators who work with pre-K through 12th grade students would be able to deduct out-of-pocket classroom costs from their taxable income.
Key Points
- 1Expands the educator expense deduction to include early childhood educators (pre-kindergarten) alongside K-12 teachers.
- 2Renames and clarifies the deduction’s scope to cover early childhood, elementary, and secondary education.
- 3Applies to expenses incurred in taxable years beginning after December 31, 2024 (i.e., starting with the 2025 tax year).
- 4Maintains the basic mechanism of the educator expense deduction for unreimbursed classroom costs (the bill text does not specify a change in the deduction amount).
- 5The bill’s changes are limited to definitional and eligibility scope within the internal revenue code; no other tax provisions are amended.
Impact Areas
Primary group/area affected: Early childhood educators (pre-K through pre-kindergarten) and other educators who incur unreimbursed classroom expenses, now eligible for the educator expense deduction.Secondary group/area affected: Employers and school districts (public and private) that employ early childhood educators and K-12 staff, as well as the administration of educator reimbursements and related payroll/tax reporting.Additional impacts: Potentially modest federal revenue impact due to more educators qualifying for the above-the-line deduction, plus minor administrative adjustments for the IRS and taxpayers to accommodate the broadened category.
Generated by gpt-5-nano on Oct 8, 2025