The "Supporting Early-childhood Educators' Deductions Act" expands educator expense deductions to include early childhood educators, benefiting childcare facilities and educators. It amends the Internal Revenue Code to define 'school' for early childhood education, allowing deductions for facility-related expenses for educators. The Act also extends eligibility to include early childhood, elementary, and secondary schoolteachers, with the effective date of the amendments applying to expenses paid or incurred after December 31, 2025. This Act aims to support early childhood educators and childcare facilities, recognizing their financial contributions and promoting affordable early childhood education.
Supporting Early-childhood Educators' Deductions Act of 2025 or the SEED Act of 2025
This bill expands eligibility for the above-the-line federal tax deduction for certain eligible educator expenses to include early childhood educators. (An above-the-line tax deduction is subtracted from gross income to calculate adjusted gross income.)
Under current law, kindergarten through grade 12 teachers, instructors, counselors, principals, or aides in schools that provide elementary or secondary education are allowed an above-the-line tax deduction of up to $300 (in 2025 and adjusted annually) for certain unreimbursed professional development and classroom expenses. (Other conditions apply.)
The bill expands eligibility for the tax deduction for such educator expenses to include early childhood educators in schools that provide early childhood (pre-kindergarten) education.
