To amend the Internal Revenue Code of 1986 to allow for the expansion of areas designated as renewal communities based on 2000 census data and to treat certain census tracts with low populations as low-income communities for purposes of the new markets tax credit.

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

Amends the Internal Revenue Code to: (1) authorize the Secretary of Housing and Urban Development, at the request of all governments that nominated an area as a renewal community, to expand an area designated as such a community to include certain census tracts of general distress or with increased poverty rates based on 2000 census data; and (2) treat population census tracts with populations of less than 2,000 that are within empowerment zones and that are contiguous to a low income community as low-income communities for purposes of the new markets tax credit.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4193 Introduced in House (IH)]







108th CONGRESS
  2d Session
                                H. R. 4193

 To amend the Internal Revenue Code of 1986 to allow for the expansion 
 of areas designated as renewal communities based on 2000 census data 
 and to treat certain census tracts with low populations as low-income 
        communities for purposes of the new markets tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 2004

  Mr. Istook introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow for the expansion 
 of areas designated as renewal communities based on 2000 census data 
 and to treat certain census tracts with low populations as low-income 
        communities for purposes of the new markets tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXPANSION OF DESIGNATED RENEWAL COMMUNITY AREA BASED ON 2000 
              CENSUS DATA.

    (a) In General.--Section 1400E of the Internal Revenue Code of 1986 
(relating to designation of renewal communities) is amended by adding 
at the end the following new subsection:
    ``(g) Expansion of Designated Area Based on 2000 Census.--
            ``(1) In general.--At the request of all governments which 
        nominated an area as a renewal community, the Secretary of 
        Housing and Urban Development may expand the area of such 
        community to include any census tract if--
                    ``(A)(i) at the time such community was nominated, 
                such community would have met the requirements of this 
                section using 1990 census data even if such tract had 
                been included in such community, and
                    ``(ii) such tract has a poverty rate using 2000 
                census data which exceeds the poverty rate for such 
                tract using 1990 census data, or
                    ``(B)(i) such community would be described in 
                subparagraph (A)(i) but for the failure to meet one or 
                more of the requirements of paragraphs (2)(C)(i), 
                (3)(C), and (3)(D) of subsection (c) using 1990 census 
                data,
                    ``(ii) such community, including such tract, has a 
                population of not more than 200,000 using either 1990 
                census data or 2000 census data,
                    ``(iii) such tract meets the requirement of 
                subsection (c)(3)(C) using 2000 census data, and
                    ``(iv) such tract meets the requirement of 
                subparagraph (A)(ii).
            ``(2) Exception for certain census tracts with low 
        population in 1990.--In the case of any census tract which did 
        not have a poverty rate determined by the Bureau of the Census 
        using 1990 census data, paragraph (1)(B) shall be applied 
        without regard to clause (iv) thereof.
            ``(3) Special rule for certain census tracts with low 
        population in 2000.--At the request of all governments which 
        nominated an area as a renewal community, the Secretary of 
        Housing and Urban Development may expand the area of such 
        community to include any census tract if--
                    ``(A) either--
                            ``(i) such tract has no population using 
                        2000 census data, or
                            ``(ii) no poverty rate for such tract is 
                        determined by the Bureau of the Census using 
                        2000 census data,
                    ``(B) such tract is one of general distress, and
                    ``(C) such community, including such tract, meets 
                the requirements of subparagraphs (A) and (B) of 
                subsection (c)(2).
            ``(4) Period in effect.--Any expansion under this 
        subsection shall take effect as provided in subsection (b).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the amendments made by section 101 of the 
Community Renewal Tax Relief Act of 2000.

SEC. 2. POPULATION CENSUS TRACTS WITH LOW POPULATIONS TREATED AS LOW-
              INCOME COMMUNITIES FOR PURPOSES OF NEW MARKETS TAX 
              CREDIT.

    (a) In General.--Subsection (e) of section 45D of the Internal 
Revenue Code of 1986 (relating to low-income community) is amended by 
adding at the end the following new paragraph:
            ``(4) Tracts with low population.--A population census 
        tract with a population of less than 2,000 shall be treated as 
        a low-income community for purposes of this section if such 
        tract--
                    ``(A) is within an empowerment zone, the 
                designation of which is in effect under section 1391, 
                and
                    ``(B) is contiguous to one or more low-income 
                communities (determined without regard to this 
                paragraph).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to investments made after the date of the enactment of this Act.
                                 <all>