H.R. 2940 would amend the Internal Revenue Code to permanently extend and expand the tax deduction of up to $250 that is allowed for certain classroom expenses of teachers. Under current law the deduction is unavailable for taxable years after 2014, and H.R. 2940 would permanently extend the deduction. The bill would also expand eligible expenses to include those for professional development and index the maximum deduction for inflation.
The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 2940 would reduce revenues, thus increasing federal deficits, by about $3 billion over the 2016-2025 period.
The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. Enacting H.R. 2940 would result in revenue losses in each year beginning in 2016.
JCT has determined that the bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.