1.This Act may be cited as the
College Research Education and Teacher
Excellence (CREATE) Opportunity Act of 2012
.
<enum>I</enum><header>Research credit
made permanent and other modifications</header>
<section id="H1281FA66F595466AABE44212E81AAECF" section-type="subsequent-section"><enum>101.</enum><header>Research credit made
permanent and other modifications</header>
<subsection id="H2097708D3D404CA3B0886648B4ACF316"><enum>(a)</enum><header>Credit made
permanent</header>
<paragraph id="HCA2EF599C306475CBB67D57AEF9CE51A"><enum>(1)</enum><header>In
general</header><text>Section 41 of the Internal Revenue Code of 1986 is
amended by striking subsection (h).</text>
</paragraph><paragraph id="HB935765BC89743AEAE4C12D53AAD17B6"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (1) of section 45C(b) of such Code is amended
by striking subparagraph (D).</text>
</paragraph></subsection><subsection id="H2564144BB38D492A8C1A572AAE3947F4"><enum>(b)</enum><header>Increased
percentage of contract research expenses paid to colleges and
universities</header><text display-inline="yes-display-inline">Paragraph (3) of
section 41(b) of such Code is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H711A22B7567C40909D915F32B91A8A66" style="OLC">
<subparagraph id="H15BF48F25CD544BBB2CA678EFF8C039E"><enum>(E)</enum><header>Amounts paid to
colleges and universities</header><text>In the case of amounts paid for
qualified research by the taxpayer to an institution of higher education (as
defined in section 3304(f))—</text>
<clause id="H52CDE29692B84FF3B0F315E8BCEABF77"><enum>(i)</enum><text>subparagraph (A)
shall be applied by substituting <quote>100 percent</quote> for <quote>65
percent</quote>, and</text>
</clause><clause id="H150F205E0950460BA7A3A1AABDF8BE1F"><enum>(ii)</enum><text>subparagraphs (C)
and (D) shall not
apply.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H32FBACD8322D47A59F13F54A50C39A53"><enum>(c)</enum><header>Research in
social sciences included in qualified research</header><text>Subparagraph (G)
of section 41(d)(6) of such Code is amended—</text>
<paragraph id="HEDAD4AF112E24130B59F4139557DDBD4"><enum>(1)</enum><text>by striking
<quote>social sciences, arts,</quote> in the text and inserting
<quote>arts</quote>, and</text>
</paragraph><paragraph id="H298F0AAB8A4A4CA192FB29F6D15590D5"><enum>(2)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">Social sciences,
etc</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subparagraph" style="OLC">Arts and
humanities</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HB8BE3019844A41F68CB0C2BB18BC94D7"><enum>(d)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to amounts
paid or incurred after December 31, 2011.</text>
</subsection></section><enum>II</enum><header>Year-round Pell
grants</header>
<section id="H0F47BC5B8A1F4917B659B5967C630293"><enum>201.</enum><header>Amendments</header><text display-inline="no-display-inline">Section 401(b) of the Higher Education Act
of 1965 (20 U.S.C. 1070a(b)) is amended—</text>
<paragraph id="H64EC1D466D5246D69D8FFFB11D190BBE"><enum>(1)</enum><text>by redesignating
paragraphs (5) through (7) as paragraphs (6) through (8), respectively;
and</text>
</paragraph><paragraph id="HC39FC494E0094CD69F63E07BCF210495"><enum>(2)</enum><text>by inserting after
paragraph (4), the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H09BA403D24B4421EBE0B0E98E303C1CE" style="OLC">
<paragraph id="HF44FD714AFED4F8C9D0DCC9CE7DC2154"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HD786862258564EF4897EAE60BACFF10F"><enum>(A)</enum><text>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 award year to permit such student to accelerate the student’s progress
toward a degree or certificate if the student is enrolled—</text>
<clause id="H61B1CB507CC948069AB1F74EF046B036" indent="up1"><enum>(i)</enum><text>on at least a half-time basis for a
period of more than one academic year, or more than two semesters or an
equivalent period of time, during a single award year; and</text>
</clause><clause id="H8967C38BFF7A4FAABD91AE927AF4A10D" indent="up1"><enum>(ii)</enum><text>in a program of instruction at the
junior or community college for which the college awards an associate degree or
a certificate.</text>
</clause></subparagraph><subparagraph id="H11665A67DDD445218CEDDA176C825BC3" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">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 Federal 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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H037D06DBBA914108BEC2688B7CCF37B1"><enum>202.</enum><header>Conforming
change</header><text display-inline="no-display-inline">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 <quote>paragraph (7)(B)</quote> and
inserting <quote>paragraph (8)(B)</quote>.</text>
</section><section id="H444DC4886BD94A618FC989BBC76077BC"><enum>203.</enum><header>Effective
date</header><text display-inline="no-display-inline">The amendments made by
section 201 shall be effective for award year 2013–2014 and each succeeding
award year.</text>
</section><enum>III</enum><header>Amendments to
the TEACH grant program</header>
<section id="H5293814A573042B58C2E83DED8B9F397" section-type="subsequent-section"><enum>301.</enum><header>Amendments</header><text display-inline="no-display-inline">Section 420N of the Higher Education Act of
1965 (20 U.S.C. 1070g–2) is amended—</text>
<paragraph id="H6B98C66C83AE4CBAAFB750418C7E2FAC"><enum>(1)</enum><text>by amending
subsection (b)(2) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H30AA1C649A324B98B50C86512550210C" style="OLC">
<paragraph id="H91168769A6C34837818B7828C7415FC5"><enum>(2)</enum><text display-inline="yes-display-inline">in the event that the applicant is
determined 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</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8B9A550962044394ABA3671BDADDB3E0"><enum>(2)</enum><text>by amending
subsection (c) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H426E5F9D694845B7B6D704635213F83E" style="OLC">
<subsection id="H8BF7BF2979B04E33ACAFABDD35923675"><enum>(c)</enum><header>Repayment for
Inability To Complete Service</header><text display-inline="yes-display-inline">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 portion of the service obligation under subsection
(d)(2), the 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 Federal 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
obligation and in accordance with terms and conditions specified by the
Secretary in regulations under this
subpart.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HD44199ABE6B24FC9807628AF84DBE5C9"><enum>302.</enum><header>Effective
date</header><text display-inline="no-display-inline">The amendments made by
section 301 shall apply to TEACH grants awarded for academic year 2013–2014 and
each succeeding academic year.</text>
</section>