In 2007, the Chicago Public Schools (CPS) began implementing a schoolwide reform called the Teacher Advancement Program (TAP) using funds from the federal Teacher Incentive Fund (TIF) and private foundations. Under the TAP model, teachers can earn extra pay and responsibilities through promotion to mentor or master teacher as well as annual performance bonuses based on a combination of their value added to student achievement and observed performance in the classroom. The idea behind the program is that performance incentives, combined with tools for teachers to track performance and improve instruction, should help schools attract and retain talented teachers and help all teachers produce greater student achievement. This report provides evidence on the impacts of TAP during the 2008-2009 school year, the second year of the program's rollout in CPS. Appended are: (1) Propensity Score Matching; and (2) Longitudinal Analysis of Test Score Data. (Contains 18 tables, 7 figures and 14 footnotes.) [For the Year One Impact Report, see ED507502.]