I 
117TH CONGRESS 
2D SESSION 
H. R. 9677 
To increase the aggregate limitation on grants to low-income taxpayer clinics, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 22, 2022 
Mr. DANNY K. DAVIS of Illinois (for himself and Mr. RASKIN) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To increase the aggregate limitation on grants to low-income 
taxpayer clinics, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Low-Income Tax Clinic 
Modernization Act’’. 
SEC. 2. LOW-INCOME TAXPAYER CLINICS. 
(a) QUALIFIED LOW-INCOME TAXPAYER CLINIC.— 
Section 7526(b)(1) of the Internal Revenue Code of 1986 
is amended— 
(1) in subparagraph (A)(ii)— 
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(A) in subclause (I), by striking ‘‘or’’ at 
the end, 
(B) in subclause (II), by striking the pe-
riod at the end and inserting ‘‘; or’’, and 
(C) by adding at the end the following: 
‘‘(III) operates a program to provide 
technical advice and litigation support to 
programs described in subclauses (I) and 
(II).’’, and 
(2) in subparagraph (B)(i), by inserting ‘‘(or 
such other percentage, not to exceed 400 percent, as 
established by the Secretary with respect to such 
clinic, provided that the Secretary has determined 
that such percentage will increase the ability of the 
clinic to represent additional taxpayers)’’ after ‘‘250 
percent’’. 
(b) LIMITATIONS.—Section 7526(c) of the Internal 
Revenue Code of 1986 is amended— 
(1) in paragraph (1), by striking ‘‘$6,000,000’’ 
and inserting ‘‘$20,000,000’’, 
(2) in paragraph (2), by striking ‘‘$100,000’’ 
and inserting ‘‘$500,000’’, and 
(3) by adding at the end the following: 
‘‘(7) LIMITATION
ON
USE
OF
GRANTS
FOR 
OVERHEAD AND ADMINISTRATION.—With respect to 
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any costs incurred by the institution sponsoring the 
low-income taxpayer clinic for general overhead and 
program administration, such costs shall not exceed 
10 percent of the amount of any grant provided 
under this section with respect to such clinic. 
‘‘(8) ADJUSTMENT FOR INFLATION.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year beginning after 2023, the dollar 
amounts in paragraphs (1) and (2) shall each 
be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘2022’ for 
‘2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.— 
‘‘(i) AGGREGATE
LIMITATION.—With 
respect to the dollar amount in paragraph 
(1), if such amount, as increased under 
subparagraph (A), is not a multiple of 
$500,000, such amount shall be rounded 
to the nearest multiple of $500,000. 
‘‘(ii) LIMITATION ON ANNUAL GRANTS 
TO A CLINIC.—With respect to the dollar 
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amount in paragraph (2), if such amount, 
as increased under subparagraph (A), is 
not a multiple of $5,000, such amount 
shall be rounded to the nearest multiple of 
$5,000.’’. 
(c) MATCHING FUNDS.—Paragraph (5) of section 
7526(c) of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(5) REQUIREMENT OF MATCHING FUNDS.— 
‘‘(A) IN
GENERAL.—Except as provided 
under subparagraph (B), with respect to any 
grant provided to a low-income taxpayer clinic 
under this section, such clinic shall provide 
matching funds equal to the applicable percent-
age of the amount of such grant. 
‘‘(B) EXCEPTION.—The requirement under 
subparagraph (A) shall not apply to any low-in-
come taxpayer clinic during its first 2 years of 
operation. 
‘‘(C) MATCHING FUNDS.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘matching funds’ 
may include— 
‘‘(I) the salary (including fringe 
benefits) of individuals performing 
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services for the low-income taxpayer 
clinic, and 
‘‘(II) the cost of equipment used 
in the low-income taxpayer clinic. 
‘‘(ii) EXCLUSION.—For purposes of 
this paragraph, the term ‘matching funds’ 
shall not include any indirect expenses, 
such as general overhead of the institution 
sponsoring the low-income taxpayer clinic. 
‘‘(D) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage shall be 100 percent, except that the 
Secretary may establish a lower percentage (not 
below 50 percent) if the Secretary determines 
that such percentage would expand the coverage 
of the low-income taxpayer clinic to additional 
taxpayers.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
the date of enactment of this Act. 
Æ 
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