Amends the Internal Revenue Code, with respect to the new markets tax credit, to expand criteria for the designation of a census track with a population of less than 2,000 as a low-income community for purposes of such credit to include consideration of the poverty rate, median family income, or unemployment rate in such community.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5718 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 5718
To amend the Internal Revenue Code of 1986 to revise the new market tax
credit rules for population census tracts with low populations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 10, 2012
Mr. Towns 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 revise the new market tax
credit rules for population census tracts with low populations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REVISION OF NEW MARKETS TAX CREDIT RULES FOR TRACTS WITH LOW
POPULATIONS.
(a) In General.--Paragraph (4) of section 45D(e) of the Internal
Revenue Code of 1986 (relating to tracts with low population) is
amended to read as follows:
``(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--
``(A) such tract is contiguous to 1 or more low-
income communities (determined without regard to this
paragraph), and
``(B) either--
``(i) such tract is within an empowerment
zone the designation of which is in effect
under section 1391, or
``(ii) any 1 or more of such contiguous
low-income communities meets at least 1 of the
following criteria:
``(I) The poverty rate is greater
than 30 percent.
``(II) The median family income--
``(aa) in the case of a
community not located within a
metropolitan area, does not
exceed 60 percent of statewide
median family income, or
``(bb) in the case of a
community located within a
metropolitan area, does not
exceed 60 percent of the
greater of statewide median
family income or the
metropolitan area median family
income.
``(III) The unemployment rate is
not less than 1.5 times the national
average unemployment rate.
For purposes of this paragraph, any population census tract
which is a zero population census tract shall be treated as
having the levels of economic distress which are present in the
contiguous census tract.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2011.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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