[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9677 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 9677
To increase the aggregate limitation on grants to low-income taxpayer
clinics, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 22, 2022
Mr. Danny K. Davis of Illinois (for himself and Mr. Raskin) introduced
the following bill; which was referred to the Committee on Ways and
Means
_______________________________________________________________________
A BILL
To increase the aggregate limitation on grants to low-income taxpayer
clinics, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Low-Income Tax Clinic Modernization
Act''.
SEC. 2. LOW-INCOME TAXPAYER CLINICS.
(a) Qualified Low-Income Taxpayer Clinic.--Section 7526(b)(1) of
the Internal Revenue Code of 1986 is amended--
(1) in subparagraph (A)(ii)--
(A) in subclause (I), by striking ``or'' at the
end,
(B) in subclause (II), by striking the period at
the end and inserting ``; or'', and
(C) by adding at the end the following:
``(III) operates a program to provide
technical advice and litigation support to
programs described in subclauses (I) and
(II).'', and
(2) in subparagraph (B)(i), by inserting ``(or such other
percentage, not to exceed 400 percent, as established by the
Secretary with respect to such clinic, provided that the
Secretary has determined that such percentage will increase the
ability of the clinic to represent additional taxpayers)''
after ``250 percent''.
(b) Limitations.--Section 7526(c) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (1), by striking ``$6,000,000'' and
inserting ``$20,000,000'',
(2) in paragraph (2), by striking ``$100,000'' and
inserting ``$500,000'', and
(3) by adding at the end the following:
``(7) Limitation on use of grants for overhead and
administration.--With respect to any costs incurred by the
institution sponsoring the low-income taxpayer clinic for
general overhead and program administration, such costs shall
not exceed 10 percent of the amount of any grant provided under
this section with respect to such clinic.
``(8) Adjustment for inflation.--
``(A) In general.--In the case of any calendar year
beginning after 2023, the dollar amounts in paragraphs
(1) and (2) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `2022' for `2016' in
subparagraph (A)(ii) thereof.
``(B) Rounding.--
``(i) Aggregate limitation.--With respect
to the dollar amount in paragraph (1), if such
amount, as increased under subparagraph (A), is
not a multiple of $500,000, such amount shall
be rounded to the nearest multiple of $500,000.
``(ii) Limitation on annual grants to a
clinic.--With respect to the dollar amount in
paragraph (2), if such amount, as increased
under subparagraph (A), is not a multiple of
$5,000, such amount shall be rounded to the
nearest multiple of $5,000.''.
(c) Matching Funds.--Paragraph (5) of section 7526(c) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(5) Requirement of matching funds.--
``(A) In general.--Except as provided under
subparagraph (B), with respect to any grant provided to
a low-income taxpayer clinic under this section, such
clinic shall provide matching funds equal to the
applicable percentage of the amount of such grant.
``(B) Exception.--The requirement under
subparagraph (A) shall not apply to any low-income
taxpayer clinic during its first 2 years of operation.
``(C) Matching funds.--
``(i) In general.--For purposes of this
paragraph, the term `matching funds' may
include--
``(I) the salary (including fringe
benefits) of individuals performing
services for the low-income taxpayer
clinic, and
``(II) the cost of equipment used
in the low-income taxpayer clinic.
``(ii) Exclusion.--For purposes of this
paragraph, the term `matching funds' shall not
include any indirect expenses, such as general
overhead of the institution sponsoring the low-
income taxpayer clinic.
``(D) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be
100 percent, except that the Secretary may establish a
lower percentage (not below 50 percent) if the
Secretary determines that such percentage would expand
the coverage of the low-income taxpayer clinic to
additional taxpayers.''.
(d) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after the date of enactment of this
Act.
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