Allows States, regardless of any other Federal law, to use Federal education funds to: (1) test elementary or secondary school teachers in the subjects they teach; or (2) establish a merit pay program for such teachers.
Amends the Internal Revenue Act to provide certain tax credits for: (1) elementary and secondary school expenses; (2) contributions for the benefit of elementary and secondary schools; and (3) elementary and secondary school teachers who provide classroom materials. Allows elementary and secondary school teachers to take a tax deduction for certain professional development expenses.