To amend the Internal Revenue Code of 1986 to exclude income attributable to certain empowerment zone real property from gross income.

Summary: Bringing Business Back Act of 2010 - Amends the Internal Revenue Code to exclude from gross income for a specified 10-year period, for income tax purposes, income or gain from real property that is certified as zoned for commercial use, that has been undeveloped and vacant for a 2-year period, and that is located in a qualified census tract. Defines "qualified census tract" as any census tract that has an average poverty and unemployment rate exceeding the national rate and that exhibits another condition of distress, such as high crime, deteriorating infrastructure, or population decline.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bringing Business Back Act of 
2010''.

SEC. 2. INCENTIVES FOR CERTAIN EMPOWERMENT ZONE REAL PROPERTY.

    (a) In General.--Subchapter U of chapter 1 of the Internal Revenue 
Code of 1986 is amended by redesignating part V as part VI, by 
redesignating section 1397F as section 1397G, and by inserting after 
part IV the following new part:

         ``PART V--INCENTIVE FOR EMPOWERMENT ZONE REAL PROPERTY

``SEC. 1397F. INCOME ATTRIBUTABLE TO EMPOWERMENT ZONE REAL PROPERTY 
              EXCLUDED FROM GROSS INCOME.

    ``(a) In General.--Gross income shall not include income or gain 
attributable to qualified real property for any taxable year beginning 
during the exclusion period.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified real property.--
                    ``(A) In general.--The term `qualified real 
                property' means any real property--
                            ``(i) which is certified by the State or 
                        local zoning authority, and any economic 
                        development board, with respect to such 
                        property as meeting the requirements of 
                        subparagraph (B), and
                            ``(ii) with respect to which an election 
                        has been made (at such time and in such form 
                        and manner as the Secretary shall by regulation 
                        prescribe) to have this section apply.
                    ``(B) Requirements.--Property meets the 
                requirements of this subparagraph if such property--
                            ``(i) is zoned for commercial use,
                            ``(ii) has been undeveloped and vacant 
                        during the 2-year period ending on the date of 
                        certification, and
                            ``(iii) is located within a qualified 
                        census tract.
                    ``(C) Qualified census tract.--The term `qualified 
                census tract' means any census tract which--
                            ``(i)(I) has an average poverty rate 
                        exceeding the national average poverty rate, or
                            ``(II) has an unemployment rate above the 
                        national unemployment rate, and
                            ``(ii) exhibits another condition of 
                        distress, such as high crime, deteriorating 
                        infrastructure, or population decline.
                Poverty rates shall be determined by using 2010 census 
                data, and unemployment rates shall be determined by 
                reference to the rate of unemployment announced by the 
                Bureau of Labor Statistics of the Department of Labor 
                for the months in the 2 most recently ended calendar 
                quarters.
                    ``(D) Economic development board.--The term 
                `economic development board' means, with respect to any 
                property, any entity established by law to oversee the 
                economic development of an area within which such 
                property is located.
            ``(2) Exclusion period.--The term `exclusion period' means, 
        with respect to a taxable year, the 10 taxable year period 
        beginning with the first taxable year beginning after the date 
        of the enactment of this section for which the income 
        attributable to the qualified real property exceeds the pre-
        depreciation expenses attributable to such real property.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Subsequent taxpayers.--Subsection (a) shall only 
        apply to a taxpayer who has an ownership interest in the 
        qualified real property on the first day of the exclusion 
        period with respect to such property.
            ``(2) Limitation on application of section.--An election to 
        have this section apply may only be made once with respect to 
        any property.
            ``(3) Tax-exempt use property.--This section shall not 
        apply to any property which is tax-exempt use property (as 
        defined in section 168(h)).
    ``(d) Regulations.--The Secretary may prescribe such regulations as 
may be necessary or appropriate to carry out the purposes of this 
section, including methods for allocating income and expenses to 
property and rules to prevent abuse of this section.''.
    (b) Clerical Amendment.--The table of parts for subchapter U of 
chapter 1 of such Code is amended by striking the item relating to part 
V and inserting the following new items:

        ``Part V. Incentive for Empowerment Zone Real Property.

                       ``Part VI. Regulations.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.