SB 69

For taxable years beginning after December 31, 2008, this bill adopts, for state

income and franchise tax purposes, a provision of the Internal Revenue Code (IRC)

allowing an individual income tax deduction for certain expenses of elementary and

secondary school teachers. This federal law does not apply to taxable years

beginning after December 31, 2009.

For taxable years beginning after December 31, 2008, this bill creates an

individual income tax deduction for an amount of up to $250 that is paid by an eligible

educator for educational materials or supplies for use in a public school, a private

school, a tribal school, or a charter school. The bill defines "eligible educator" as an

individual who is a teacher, instructor, counselor, principal, or aide in a school for at

least 900 hours in the taxable year to which the claim relates. Under the bill, the

deduction may not be claimed in any year for which an individual may claim the

deduction to which the IRC update in this bill applies. In the past, the federal

government has extended this federal deduction upon its expiration.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.