RETAIN Act

The RETAIN Act creates a refundable tax credit for early childhood educators, teachers, school leaders, and school-based mental health providers who work in high-need schools or early childhood programs. The credit amount increases with years of continuous service: $5,800 for years 1-2, $7,000 for years 3-4, $8,700 for years 5-9, and $11,600 for year 10, with annual inflation adjustments. It requires states and schools to maintain existing compensation and loan forgiveness programs (not reduce them) due to this credit and mandates annual data collection on teacher salaries by school type and geographic region. The bill directly targets educators serving high-poverty schools to address retention challenges linked to low pay and poor working conditions.