The Teacher Incentive Allotment (TIA) was created by the Texas Legislature as part of House Bill 3 to help attract and retain highly effective teachers at traditionally hard-to-staff schools. The TIA would provide additional funding to eligible teachers based upon their T-TESS score and Student Growth measures. The funding formula prioritizes high needs and rural campuses. Districts, if they choose to, can develop a local designation system and designate high-performing teachers (Master, Exemplary or Recognized). Districts will receive additional funding ($3,000-$32,000 per year) for every designated teacher they employ.

The funding available from the Teacher Incentive Allotment varies by designation. The exact amount of funding per teacher is determined by a formula that takes into account the level of socioeconomic need at a campus and whether the campus is rural.

TIA funding goes to the campus where the teacher works and not directly to the teacher. However, districts must spend at least 90 percent of their allotment funds on teacher compensation on the campuses where the designated teacher works. Districts can set aside the remaining 10 percent for costs associated with implementing TIA.