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H.R.6565 - LIFT HIGHER Act of 2012
To amend the Internal Revenue Code of 1986 to provide a refundable tax credit for certain expenses of applying to graduate school.
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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’.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
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:CommentsClose CommentsPermalink
‘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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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--CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(d) Qualified Graduate School Application Expenses- For purposes of this section, the term ‘qualified graduate school application expenses’ means amounts paid or incurred--CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.’.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink