article: 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.
summary: 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.)