SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Research Education and 
Teacher Excellence (CREATE) Opportunity Act of 2012''.

    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 subsection (h).
            (2) Conforming amendment.--Paragraph (1) of section 45C(b) 
        of such Code is amended by striking subparagraph (D).
    (b) Increased Percentage of Contract Research Expenses Paid to 
Colleges and Universities.--Paragraph (3) of section 41(b) of such Code 
is amended by adding at the end the following new subparagraph:
                    ``(E) Amounts paid to colleges and universities.--
                In the case of amounts paid for qualified research by 
                the taxpayer to an institution of higher education (as 
                defined in section 3304(f))--
                            ``(i) subparagraph (A) shall be applied by 
                        substituting `100 percent' for `65 percent', 
                        and
                            ``(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 following 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 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 period 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 college 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 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.''.

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)''.

SEC. 203. EFFECTIVE DATE.

    The amendments made by section 201 shall be effective 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 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''.
            (2) by amending subsection (c) to read as follows:
    ``(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 
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.''.

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.
College Research Education and Teacher Excellence (CREATE) Opportunity Act of 2012 - Amends the Internal Revenue Code to make the research tax credit permanent.

Makes 100% of a taxpayer's expenditures for qualified research at an institution of higher education eligible for the research tax credit. (Currently, 65% of those expenditures are eligible.)

Considers research in the social sciences to be qualified research, eligible for the research tax credit.

Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow the Secretary of Education to award a student two Pell Grants during a single award year if the student is enrolled in an associate degree or certificate program at a junior or community college on at least a half-time basis for the equivalent of more than one academic year during the Pell Grant award year.

Treats a Teacher Education Assistance for College and Higher Education (TEACH) Grant as a Direct Unsubsidized Stafford Loan only in proportion to the extent to which its recipient fails to comply with the Grant's service obligation. (TEACH Grants are provided to students who agree to teach for four years in a high-need field at an elementary or secondary school that serves a high number or percentage of low-income students.)
{"src": "billsum_test", "title": "To amend the Internal Revenue Code of 1986 to encourage research at community colleges and other institutions of higher education, and for other purposes."}