Leadership Invests in the Future Through Helping Individuals Gain Higher Education and Retraining Act of 2012 or the LIFT HIGHER Act of 2012 - Amends the Internal Revenue Code to allow applicants to a graduate school program an income-based refundable tax credit for expenses in connection with a graduate school program application, including application fees, fees for taking any required test, and amounts paid for study and preparation materials or for tutorial and preparation services for any test required by a graduate program. Limits the amount of such credit in any taxable year to $500 over the aggregate amount of credits allowable for all prior taxable years.
-
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6565 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6565
To amend the Internal Revenue Code of 1986 to provide a refundable tax
credit for certain expenses of applying to graduate school.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 28, 2012
Ms. Richardson introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a refundable tax
credit for certain expenses of applying to graduate school.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS.
(a) Short Title.--This Act may be cited as the ``Leadership Invests
in the Future Through Helping Individuals Gain Higher Education and
Retraining Act of 2012'' or as the ``LIFT HIGHER Act of 2012''.
(b) Findings.--Congress finds the following:
(1) The median student loan debt for students who graduated
from college between 2006 and 2010 is $20,000.
(2) Application fees for individual schools range from $40
to $140. The cost of taking the Graduate Record Exam once is
$150. Law school admission test preparation courses cost
upwards of $1,500. These costs make it difficult for many
students to apply to graduate school and discourage others from
doing so.
(3) The percentage of Americans with graduate degrees is
continuing to rise, with 10.9% of the population having
graduate degrees as of 2011.
(4) Persons with advanced degrees earn on average $3.2
million in their lifetime compared to those holding a bachelors
degree who earn about $2.27 million.
(5) It is in the national interest to have highly educated
citizenry.
(6) University education is the best and most effective way
to obtain professional training and skills.
SEC. 2. REFUNDABLE TAX CREDIT FOR GRADUATE SCHOOL APPLICATION EXPENSES.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36C. CREDIT FOR GRADUATE SCHOOL APPLICATION EXPENSES.
``(a) Allowance of Credit.--In the case of a specified graduate
school applicant, there shall be allowed as a credit against the tax
imposed by this subtitle for such taxable year an amount equal to the
qualified graduate school application expenses paid or incurred by such
applicant during such taxable year.
``(b) Limitations.--
``(1) Dollar limitation.--The amount allowable as a credit
under subsection (a) with respect to any individual for any
taxable year shall not exceed the excess of $500 over the
aggregate amount of the credits allowable under subsection (a)
with respect to such individual for all prior taxable years.
``(2) Limitation based on modified adjusted gross income.--
``(A) In general.--The amount allowable as a credit
under subsection (a) (determined without regard to this
paragraph and after the application of paragraph (1))
for the taxable year shall be reduced (but not below
zero) by the amount which bears the same ratio to the
amount which is so allowable as--
``(i) the excess (if any) of--
``(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
``(II) $60,000 ($120,000 in the
case of a joint return), bears to
``(ii) $5,000.
``(B) Modified adjusted gross income.--For purposes
of subparagraph (A), the term `modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year increased by any amount excluded
from gross income under section 911, 931, or 933.
``(c) Specified Graduate School Applicant.--For purposes of this
section, the term `specified graduate school applicant' means any
individual who applies to an eligible educational institution (as
defined in section 25A(f)(2)) for acceptance into a program of
postbaccalaureate study leading to a graduate degree from such
institution.
``(d) Qualified Graduate School Application Expenses.--For purposes
of this section, the term `qualified graduate school application
expenses' means amounts paid or incurred--
``(1) as an application fee with respect to applying for
the program of study referred to in subsection (c),
``(2) as a fee for taking any test which is required in
connection with applying for such program of study,
``(3) for study and preparation materials (whether printed
or electronic) for any test referred to in paragraph (2), or
``(4) for tutorial and preparation services for any test
referred to in paragraph (2) if such services are provided by a
person approved or licensed under State law to provide such
services.
``(e) Credit Not Allowed to Individuals Who Can Be Claimed as
Dependents.--No credit shall be allowable under subsection (a) with
respect to any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable year
beginning in the calendar year in which the taxable year referred to in
subsection (a) begins.''.
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 6211(b)(4) of such Code is
amended by inserting ``36C,'' after ``36B,''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
(c) Clerical Amendment.--The table of sections for subpart C of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 36B the
following new item:
``Sec. 36C. Credit for graduate school application expenses.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line