To amend the Internal Revenue Code of 1986 to expand deductions allowed for education-related expenses and to extend the American Opportunity Tax Credit.
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 ``Deductibility and Incentives to Promote Learning Opportunities and Maximize Assistance Act of 2012'' or as the ``DIPLOMA Act of 2012''.
SEC. 2. DEDUCTION FOR HIGHER EDUCATION EXPENSES.
(a) Elimination of Dollar Limitation for Qualified Tuition and Related Expenses Deduction.--Subsection (b) of section 222 of the Internal Revenue Code of 1986 (relating to qualified tuition and related expenses) is amended to read as follows: ``(b) Limitation Based on Adjusted Gross Income.-- ``(1) In general.--In the case of a taxpayer whose adjusted gross income for a taxable year exceeds $80,000 ($160,000 in the case of a joint return), the amount of the deduction allowed under subsection (a) for the taxable year shall be zero. ``(2) Adjusted gross income.--For purposes of this subsection, adjusted gross income shall be determined-- ``(A) without regard to this section and sections 199, 911, 931, and 933, and ``(B) after application of sections 86, 135, 137, 219, 221, and 469.''. (b) Termination.--Subsection (e) of section 222 of such Code is amended by striking ``December 31, 2011'' and inserting ``December 31, 2017''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
SEC. 3. INTEREST AND PRINCIPAL ON...