I 
112TH CONGRESS 
2D SESSION 
H. R. 6678 
To amend the Internal Revenue Code of 1986 to encourage research at 
community colleges and other institutions of higher education, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2012 
Mr. HOLT introduced the following bill; which was referred to the Committee 
on Education and the Workforce, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
research at community colleges and other institutions 
of higher education, 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 ‘‘College Research Edu-
cation and Teacher Excellence (CREATE) Opportunity 
Act of 2012’’. 
VerDate Mar 15 2010 
00:55 Dec 27, 2012
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6678.IH
H6678
pwalker on DSK7TPTVN1PROD with
TITLE 
I—RESEARCH 
CREDIT 
MADE 
PERMANENT 
AND 
OTHER MODIFICATIONS 
SEC. 101. RESEARCH CREDIT MADE PERMANENT AND 
OTHER MODIFICATIONS. 
(a) CREDIT MADE PERMANENT.— 
(1) IN GENERAL.—Section 41 of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (h). 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of section 45C(b) of such Code is amended by strik-
ing subparagraph (D). 
(b) INCREASED PERCENTAGE
OF CONTRACT RE-
SEARCH EXPENSES PAID TO COLLEGES AND UNIVER-
SITIES.—Paragraph (3) of section 41(b) of such Code is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) AMOUNTS PAID TO COLLEGES AND 
UNIVERSITIES.—In the case of amounts paid 
for qualified research by the taxpayer to an in-
stitution of higher education (as defined in sec-
tion 3304(f))— 
‘‘(i) subparagraph (A) shall be applied 
by substituting ‘100 percent’ for ‘65 per-
cent’, and 
VerDate Mar 15 2010 
00:55 Dec 27, 2012
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6678.IH
H6678
pwalker on DSK7TPTVN1PROD with
‘‘(ii) subparagraphs (C) and (D) shall 
not apply.’’. 
(c) RESEARCH IN SOCIAL SCIENCES INCLUDED IN 
QUALIFIED RESEARCH.—Subparagraph (G) of section 
41(d)(6) of such Code is amended— 
(1) by striking ‘‘social sciences, arts,’’ in the 
text and inserting ‘‘arts’’, and 
(2) by striking ‘‘SOCIAL SCIENCES, ETC’’ in the 
heading and inserting ‘‘ARTS AND HUMANITIES’’. 
(d) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to amounts paid or incurred 
after December 31, 2011. 
TITLE II—YEAR-ROUND PELL 
GRANTS 
SEC. 201. AMENDMENTS. 
Section 401(b) of the Higher Education Act of 1965 
(20 U.S.C. 1070a(b)) is amended— 
(1) by redesignating paragraphs (5) through 
(7) as paragraphs (6) through (8), respectively; and 
(2) by inserting after paragraph (4), the fol-
lowing new paragraph: 
‘‘(5)(A) In the case of a student attending a 
junior or community college (as defined in section 
312(f)), the Secretary shall award the student not 
more than two Federal Pell Grants during a single 
VerDate Mar 15 2010 
00:55 Dec 27, 2012
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6678.IH
H6678
pwalker on DSK7TPTVN1PROD with
award year to permit such student to accelerate the 
student’s progress toward a degree or certificate if 
the student is enrolled— 
‘‘(i) on at least a half-time basis for a pe-
riod of more than one academic year, or more 
than two semesters or an equivalent period of 
time, during a single award year; and 
‘‘(ii) in a program of instruction at the 
junior or community college for which the col-
lege awards an associate degree or a certificate. 
‘‘(B) In the case of a student receiving more 
than one Federal Pell Grant in a single award year 
under subparagraph (A), the total amount of Fed-
eral Pell Grants awarded to such student for the 
award year may exceed the maximum basic grant 
level specified in the appropriate appropriations Act 
for such award year.’’. 
SEC. 202. CONFORMING CHANGE. 
Section 401(b)(2)(A)(ii) of the Higher Education Act 
of 1965 (20 U.S.C. 1070a(b)(2)(A)(ii)) is amended by 
striking ‘‘paragraph (7)(B)’’ and inserting ‘‘paragraph 
(8)(B)’’. 
VerDate Mar 15 2010 
00:55 Dec 27, 2012
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6678.IH
H6678
pwalker on DSK7TPTVN1PROD with
SEC. 203. EFFECTIVE DATE. 
The amendments made by section 201 shall be effec-
tive for award year 2013–2014 and each succeeding award 
year. 
TITLE III—AMENDMENTS TO 
THE TEACH GRANT PROGRAM 
SEC. 301. AMENDMENTS. 
Section 420N of the Higher Education Act of 1965 
(20 U.S.C. 1070g–2) is amended— 
(1) by amending subsection (b)(2) to read as 
follows: 
‘‘(2) in the event that the applicant is deter-
mined to have failed or refused to comply with all 
or part of such service obligation, at least a portion 
of the amount of any TEACH Grants received by 
such applicant will be treated as a loan and collected 
from the applicant in accordance with subsection (c) 
and the regulations thereunder; and’’. 
(2) by amending subsection (c) to read as fol-
lows: 
‘‘(c) REPAYMENT
FOR INABILITY TO COMPLETE 
SERVICE.—In the event that a recipient of a grant under 
this subpart fails or refuses to comply with all or part of 
the recipient’s service obligation in the agreement under 
subsection (b) and is not excused from fulfilling that por-
tion of the service obligation under subsection (d)(2), the 
VerDate Mar 15 2010 
00:55 Dec 27, 2012
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6678.IH
H6678
pwalker on DSK7TPTVN1PROD with
sum of the amounts of any TEACH Grants received by 
such recipient shall, upon a determination of such a failure 
or refusal in such service obligation, be treated as a Fed-
eral Direct Unsubsidized Stafford Loan under part D of 
title IV, and shall be subject to repayment, together with 
interest thereon accruing from the date of the grant 
award, but only in proportion to the degree to which the 
recipient fails or refuses to comply with such service obli-
gation and in accordance with terms and conditions speci-
fied by the Secretary in regulations under this subpart.’’. 
SEC. 302. EFFECTIVE DATE. 
The amendments made by section 301 shall apply to 
TEACH grants awarded for academic year 2013–2014 
and each succeeding academic year. 
Æ 
VerDate Mar 15 2010 
00:55 Dec 27, 2012
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H6678.IH
H6678
pwalker on DSK7TPTVN1PROD with