I 
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 Representa-
tives 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 Indi-
viduals Gain Higher Education and Retraining Act of 
2012’’ or as the ‘‘LIFT HIGHER Act of 2012’’. 
(b) FINDINGS.—Congress finds the following: 
VerDate Mar 15 2010 
23:07 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6565.IH
H6565
srobinson on DSK4SPTVN1PROD with
(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 pop-
ulation having graduate degrees as of 2011. 
(4) Persons with advanced degrees earn on av-
erage $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. 
VerDate Mar 15 2010 
23:07 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6565.IH
H6565
srobinson on DSK4SPTVN1PROD with
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 ad-
justed 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
IN-
COME.—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 ex-
cluded 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 postbaccalau-
reate study leading to a graduate degree from such insti-
tution. 
VerDate Mar 15 2010 
03:33 Oct 05, 2012
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6565.IH
H6565
srobinson on DSK4SPTVN1PROD with
‘‘(d) QUALIFIED GRADUATE SCHOOL APPLICATION 
EXPENSES.—For purposes of this section, the term ‘quali-
fied graduate school application expenses’ means amounts 
paid or incurred— 
‘‘(1) as an application fee with respect to apply-
ing for the program of study referred to in sub-
section (c), 
‘‘(2) as a fee for taking any test which is re-
quired 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 indi-
vidual with respect to whom a deduction under section 151 
is allowable to another taxpayer for a taxable year begin-
ning in the calendar year in which the taxable year re-
ferred to in subsection (a) begins.’’. 
(b) CONFORMING AMENDMENTS.— 
VerDate Mar 15 2010 
23:07 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6565.IH
H6565
srobinson on DSK4SPTVN1PROD with
(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 in-
serting 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. 
Æ 
VerDate Mar 15 2010 
23:07 Oct 04, 2012
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H6565.IH
H6565
srobinson on DSK4SPTVN1PROD with