Teacher Incentive Fund Act - Amends the Elementary and Secondary Education Act of 1965 to create a Teacher Incentive Fund program of competitive grants to assist states, local educational agencies (LEAs), and nonprofit organizations to develop and implement, or improve, appraisal and performance-based compensation systems to reward teachers and principals who raise student academic achievement and close the achievement gap, especially in the highest-need LEAs.
Increases required non-federal contributions to the program, on a graduated basis, from an amount equal 25% of the grant amount received in the first year to 50% of the grant amount received in the grant's fifth and final year. Allows the Secretary of Education to waive such matching requirement for high-need LEAs.