Parent and Teacher Achievement Act of 2001

Parent and Teacher Achievement Act of 2001 - Amends the Elementary and Secondary Education Act of 1965 to establish a program for State incentives for teacher testing and merit pay. Directs the Secretary of Education to make an award of such program funds to each State that: (1) administers a test to each elementary and secondary school teacher in the State, with respect to the subjects taught by the teacher, every three to five years; (2) has school teacher compensation system that is based on merit; and (3) requires school teachers to earn continuing education credits as part of a State recertification process.

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.