I 

109TH CONGRESS 

1ST SESSION H. R. 2683 

To increase the expertise and capacity of community-based organizations 

involved in economic development activities and key community development programs. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2005 

Mrs. JONES of Ohio (for herself, Mr. TIBERI, Mr. GRIJALVA, Mr. 

BLUMENAUER, Mr. MCINTYRE, Ms. EDDIE BERNICE JOHNSON of Texas, 

Mr. OWENS, Mr. KILDEE, Ms. CARSON, Ms. SCHAKOWSKY, and Mr. 

BROWN of Ohio) introduced the following bill; which was referred to the 

Committee on Financial Services, and in addition to the Committee on 

Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To increase the expertise and capacity of community-based 

organizations involved in economic development activities 

and key community development programs. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Economic 

5 Development Expertise Enhancement Act of 2005’’. 
2 

•HR 2683 IH 

1 TITLE I—EXPERTISE 

2 ENHANCEMENT 

3 SEC. 101. FINDINGS AND PURPOSES. 

4 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

5 that— 

6 (1) there are a multitude of community eco7 nomic development programs that the Federal Gov8 ernment successfully administers that help many of 

9 the Nation’s most economically distressed areas revi10 talize their physical and economic structures and 

11 provide support to small and medium-sized busi12 nesses to help them grow and generate long-term 

13 jobs and economic opportunity; 

14 (2) there are many nonprofit, nongovernmental, 

15 community-based economic development organiza16 tions, including faith-based organizations, that have 

17 successfully operated community economic develop18 ment programs that create jobs, build homes, and 

19 revitalize local markets; 

20 (3) existing Federal community economic devel21 opment programs are intended to leverage private 

22 sector investment as part of an overall community 

23 development effort; 

24 (4) existing Federal community economic devel25 opment programs connect residents of distressed 
3 

•HR 2683 IH 

1 neighborhoods to jobs and opportunities of the re2 gional marketplace, thereby replacing economic dis3 tress with opportunity; 

4 (5) existing Federal community economic devel5 opment programs provide financial assistance, in6 cluding tax credits and loan guarantees, involve pri7 vate investment institutions and universities, and 

8 provide technical expertise for small businesses; 

9 (6) existing Federal community economic devel10 opment programs build upon ongoing efforts to en11 courage economic growth in distressed communities, 

12 helping to create new affordable housing opportuni13 ties, allowing communities to address important pub14 lic safety, access to capital, infrastructure, and envi15 ronmental concerns, and providing social services in16 cluding affordable health care, transportation, child 

17 care, and youth development; 

18 (7) the continuing success of Federal commu19 nity economic development programs will depend in 

20 great measure upon the ability of community-based 

21 organizations and private sector institutions to form 

22 partnerships that connect residents of distressed 

23 neighborhoods to jobs and other opportunities; 

24 (8) the Federal Government administers various 

25 programs that employ the services and capabilities 
4 

•HR 2683 IH 

1 of community-based organizations to deliver a wide 

2 range of services to residents of distressed commu3 nities; 

4 (9) Federal community economic development 

5 programs help achieve lasting improvement and en6 hance domestic prosperity by the establishment of 

7 stable and diversified local economies, sustainable 

8 development, and improved local conditions; 

9 (10) there is a need for greater cooperation be10 tween the Federal Government, States, and other 

11 entities to ensure that, consistent with national com12 munity economic development objectives, Federal 

13 programs are compatible with, and further the objec14 tives of, State, regional, and local economic develop15 ment plans and comprehensive economic develop16 ment strategies; 

17 (11) while economic development is an inher18 ently local process, the Federal Government should 

19 work in closer partnership with community-based 

20 economic development organizations to ensure that 

21 existing resources are fully utilized and all Ameri22 cans have an opportunity to participate in the eco23 nomic growth of the United States; and 
5 

•HR 2683 IH 

1 (12) extending technical assistance to commu2 nity-based economic development organizations may 

3 be necessary or desirable to— 

4 (A) alleviate economic distress; 

5 (B) encourage and support public-private 

6 partnerships for the formation and improve7 ment of economic development strategies that 

8 promote the growth of the national economy; 

9 (C) stimulate modernization and techno10 logical advances in the generation and commer11 cialization of goods and services; and 

12 (D) enhance the effectiveness of United 

13 States companies in the global economy. 

14 (b) PURPOSES.—The purposes of this title are— 

15 (1) to provide a new source of Federal funding 

16 to enhance the capabilities of nonprofit, nongovern17 mental, community-based economic development or18 ganizations, or collaborations of such organizations, 

19 to leverage private sector investment in low income, 

20 renewal communities, enterprise communities, and 

21 empowerment zones as part of an overall community 

22 development strategy; 

23 (2) to establish educational programs for non24 profit, nongovernmental, community-based organiza-
6 

•HR 2683 IH 

1 tions to expand their project development capabili2 ties; 

3 (3) to increase the use of tax incentives to le4 verage private sector investment in community eco5 nomic development projects; 

6 (4) to promote and facilitate investments in 

7 community-based economic development projects 

8 from traditional and nontraditional capital sources; 

9 (5) to encourage partnerships between commu10 nity-based organizations that will expand and en11 hance the expertise of emerging such nonprofit, non12 governmental organizations in utilizing private sec13 tor investment as part of their comprehensive com14 munity development strategies; and 

15 (6) to ensure that viable community economic 

16 development projects are successfully pursued 

17 throughout the United States in communities having 

18 a wide range of economic, geographic, and social 

19 characteristics. 
7 

•HR 2683 IH 

1 SEC. 102. GRANTS TO INCREASE CAPACITY AND EXPERTISE 

2 OF NONPROFIT, NONGOVERNMENTAL COM3 MUNITY-BASED ORGANIZATIONS INVOLVED 

4 IN COMMUNITY ECONOMIC DEVELOPMENT 

5 ACTIVITIES. 

6 (a) GRANT AUTHORITY.—The Secretary of Housing 

7 and Urban Development may make grants under this sec8 tion only to eligible community-based economic develop9 ment organizations only for the purposes under subsection 

10 (c). 

11 (b) ELIGIBLE COMMUNITY-BASED ECONOMIC DE12 VELOPMENT ORGANIZATIONS.—For purposes of this sec13 tion, the term ‘‘eligible community-based economic devel14 opment organization’’ means a community-based economic 

15 development organization (as such term is defined under 

16 section 7), or a collaboration of such organizations (such 

17 as city or state community economic development associa18 tions), that demonstrates management capacity by meet19 ing, as determined by the Secretary, two or more of the 

20 following requirements: 

21 (1) AFFORDABLE HOUSING.—Having completed 

22 construction of 10 or more dwelling units of afford23 able housing. 

24 (2) FACILITIES.—Having completed construc25 tion of a commercial, industrial, retail, or commu26 nity facility project. 
8 

•HR 2683 IH 

1 (3) PARTNERING.—Partnering, or having a his2 tory of partnering, with community-based economic 

3 development organizations to provide training, edu4 cation, capacity, technical assistance, or other men5 toring services. 

6 (4) SUPPORT OF EMERGING ORGANIZATIONS.— 

7 Exhibiting willingness to form operational partner8 ships and execute contractual agreements with 

9 emerging community-based economic development 

10 organizations. 

11 (5) OWNERSHIP OF ASSETS.—Having owner12 ship of tangible assets the value of which are equal 

13 to or exceed the value of the grant requested under 

14 this section. 

15 (c) USE OF FUNDS.— 

16 (1) PURPOSES.—Amounts from grants under 

17 this section may be used only for the following pur18 poses: 

19 (A) SALARIES AND ADMINISTRATIVE EX20 PENSES.—For salaries or administrative ex21 penses of the grantee or an emerging commu22 nity-based economic development organization 

23 that is undertaking a community economic de24 velopment project. 
9 

•HR 2683 IH 

1 (B) TECHNICAL ASSISTANCE.—To provide 

2 technical assistance to an emerging community3 based economic development organization that 

4 is undertaking a community economic develop5 ment project. 

6 (C) TRAINING AND RESEARCH.—Through 

7 subgrants pursuant to paragraph (2), for train8 ing, research, and technical assistance relating 

9 to community economic development, including 

10 subgrants for program evaluation and economic 

11 impact analyses. 

12 (2) EXPENDITURE.—Amounts from grants 

13 under this section may be used directly by the eligi14 ble community-based economic development organi15 zation receiving the grant or redistributed by such 

16 recipient to other nonprofit, nongovernmental enti17 ties in grants, loans, loan guarantees, payments to 

18 reduce interest on loan guarantees, or other appro19 priate assistance, except that a recipient may not 

20 provide any such assistance from grant amounts to 

21 a private, for-profit entity. 

22 (d) SELECTION CRITERIA.—The Secretary shall issue 

23 rules, guidelines, and procedures to provide for the selec24 tion of eligible community-based economic development or25 ganizations for grants under this section, based upon a 
10 

•HR 2683 IH 

1 determination of the relative effectiveness of such organi2 zations in carrying out the purposes of this title. Such 

3 rules, guidelines, and procedures shall provide for consid4 eration of the following factors: 

5 (1) The number of such organizations eligible 

6 to receive assistance under existing programs other 

7 than this section. 

8 (2) The extent to which grant amounts pro9 vided under this section will enhance the capabilities 

10 of community-based economic development organiza11 tions in underserved States and localities. 

12 (3) The extent to which an eligible community13 based economic development organization applying 

14 for a grant does not have access to other traditional 

15 local financial sources. 

16 (4) The extent to which such an organization 

17 represents nonprofit, nongovernmental organizations 

18 that serve low-income communities and persons. 

19 (5) The extent to which such an organization 

20 will implement a plan to become financially sustain21 able. 

22 (e) AMOUNT.—A grant under this section to a single 

23 grantee shall be in an amount that is not less than 

24 $250,000 and does not exceed $1,000,000. 
11 

•HR 2683 IH 

1 (f) PROHIBITION OF MATCHING FUNDS REQUIRE2 MENT.—The Secretary may not require a grantee under 

3 this section to provide amounts from sources other than 

4 this section to fund the specific activities to be carried out 

5 with grant amounts under this section. 

6 (g) ELIGIBILITY FOR COMMUNITY REINVESTMENT

7 ACT CREDITS.—In assessing and taking into account, 

8 under section 804(a) of the Community Reinvestment Act 

9 of 1977, the record of any regulated financial institution, 

10 the appropriate Federal financial supervisory agency (as 

11 defined in section 803(1) of such Act) may consider as 

12 a factor investments in community economic development 

13 projects of eligible community-based economic develop14 ment organizations in determining whether the institution 

15 is meeting the credit needs of its community for purposes 

16 of such section 804(a). 

17 (h) AUTHORIZATION OF APPROPRIATIONS.— 

18 (1) IN GENERAL.—There are authorized to be 

19 appropriated for grants under this section 

20 $75,000,000 for each of fiscal years 2006, 2007, 

21 and 2008. 

22 (2) SET-ASIDE FOR TECHNICAL ASSISTANCE

23 AND TRAINING.—Of the amount made available 

24 under this title for each fiscal year, $10,000,000 

25 shall be available only for technical assistance and 
12 

•HR 2683 IH 

1 training activities, to be conducted by national com2 munity development organizations, state community 

3 development associations, or city community develop4 ment associations, which have extensive nationwide 

5 partnerships and experience in working with commu6 nity-based economic development organizations, as 

7 authorized by section 4 of the HUD Demonstration 

8 Act of 1993 (42 U.S.C. 9816 note), as in effect im9 mediately before May 1, 2000. Of the amount re10 served for use under this paragraph, not less than 

11 $4,000,000 shall be used for the support of develop12 ment organizations in rural areas. 

13 SEC. 103. ASSESSMENT OF COMMUNITY-BASED ECONOMIC 

14 DEVELOPMENT EXPERTISE. 

15 (a) CAPABILITY STUDY.—The Secretary shall con16 duct a study to assess the capability needs of community17 based economic development organizations, which shall— 

18 (1) analyze, evaluate, and recommend processes 

19 to improve the administrative and operational capa20 bilities of such organizations to acceptable levels of 

21 success in support of the role of the Federal Govern22 ment in community economic development; and 

23 (2) assess the extent to which federal agencies 

24 can incorporate such organizations into the formula25 tion of the strategic plans of funding agencies and, 
13 

•HR 2683 IH 

1 if the extent or quality of this type of involvement 

2 is satisfactory, can support the role of the Federal 

3 Government in community economic development. 

4 The Secretary shall submit a report regarding the results 

5 of the study under this subsection not later than the expi6 ration of the 6-month period beginning on the date of the 

7 enactment of this Act. 

8 (b) ANNUAL REPORTS TO CONGRESS.—Not later 

9 than the first March 1 occurring after the end of each 

10 fiscal year for which amounts are made available for 

11 grants under section 3, the Secretary shall submit a report 

12 to the Congress, which shall include— 

13 (1) an evaluation of the progress made during 

14 such fiscal year to enhance the administrative and 

15 operational capabilities of community-based eco16 nomic development organizations in support of the 

17 role of the Federal Government in community eco18 nomic development; 

19 (2) an assessment of the extent to which Fed20 eral agencies have, during such fiscal year, involved 

21 community-based economic development organiza22 tions in responsibilities for carrying out community 

23 economic development programs administered by the 

24 agencies and delivering services under such pro-
14 

•HR 2683 IH 

1 grams that enhance the operational capabilities of 

2 the organizations; and 

3 (3) a plan for making recommendations for ac4 tions or measures to further involve community5 based economic development organizations in the 

6 strategic operations of Federal agencies in support 

7 of community economic development. 

8 (c) FINAL EVALUATION.—The Secretary shall select 

9 an independent entity that has experience with national 

10 community economic development activities, nonprofit 

11 community-based developers, and impact evaluation and 

12 analysis to conduct an evaluation of the impact of the 

13 grant program under section 3. The evaluation shall be 

14 conducted upon the termination of the program. Not later 

15 than 6 months after the conclusion of the last fiscal year 

16 for which amounts are made available for grants under 

17 section 3, the entity conducting the evaluation shall sub18 mit to the Secretary and the Congress a final report re19 garding the evaluation. 

20 SEC. 104. ADVISORY COUNCIL. 

21 (a) ESTABLISHMENT AND DUTIES.—The Secretary 

22 shall establish an advisory council to be known as the Sec23 retary’s Advisory Council on Community Economic Devel24 opment (in this section referred to as the ‘‘Advisory Coun25 cil’’). The Advisory Council shall make recommendations 
15 

•HR 2683 IH 

1 to the Secretary on carrying out this title, including rec2 ommendations on developing plans under section 4(b)(3) 

3 and reviewing and making recommendations on such plans 

4 that have been developed. 

5 (b) MEMBERSHIP.—The Advisory Council shall con6 sist of not less than 19 members, appointed by the Sec7 retary, as follows: 

8 (1) EX OFFICIO MEMBERS.—The following 

9 members, who shall serve as nonvoting members: 

10 (A) The Secretary of Housing and Urban 

11 Development, or the designee of such Secretary. 

12 (B) The Secretary of Health and Human 

13 Services, or the designee of such Secretary. 

14 (C) The Assistant Secretary for Economic 

15 Development of the Department of Commerce, 

16 or the designee of the Assistant Secretary. 

17 (D) The Administrator of the Community 

18 Development Financial Institutions Fund, or 

19 the designee of the Administrator. 

20 (E) The Under Secretary of Agriculture 

21 for Rural Development, or the designee of the 

22 Under Secretary. 

23 (2) OTHER MEMBERS.—No fewer than 14 

24 members, who are not officers or employees of the 
16 

•HR 2683 IH 

1 Federal Government, who shall serve as voting mem2 bers: 

3 (A) No fewer than 2 individuals who con4 duct research on community economic develop5 ment activities. 

6 (B) No fewer than 2 individuals who are 

7 experts in community economic development fi8 nancing. 

9 (C) No fewer than 3 individuals who are 

10 publicly elected officials. 

11 (D) No fewer than 7 individuals who are 

12 representatives of community-based economic 

13 development organizations that carry out com14 munity economic development activities. 

15 (c) TRAVEL EXPENSES.—Members of the Advisory 

16 Council shall not receive any pay by reason of their service 

17 on the Advisory Council, but shall receive travel expenses, 

18 including per diem in lieu of subsistence, in accordance 

19 with sections 5702 and 5703 of title 5, United States 

20 Code. 

21 SEC. 105. COORDINATION WITH PRESIDENT’S ANNUAL 

22 BUDGET REQUEST. 

23 The President of the United States shall include, to24 gether with each annual budget of the United States Gov25 ernment required to be submitted under section 1105(a) 
17 

•HR 2683 IH 

1 of title 31, United States Code, a report regarding Federal 

2 financial support for community economic development 

3 that includes— 

4 (1) a detailed summary of the total level of 

5 funding committed to community-based economic de6 velopment organizations throughout all Federal 

7 agencies; 

8 (2) a statement of projected funding levels for 

9 the grant program under section 102 of this Act for 

10 the upcoming fiscal year and each fiscal year there11 after until 2010, and projected funding levels for fi12 nancial assistance for economic development activi13 ties for each Federal agency that provides such as14 sistance; 

15 (3) an identification and analysis of the method 

16 (including grant agreements, procurement contracts, 

17 and cooperative agreements (as such terms are used 

18 in chapter 63 of title 31, United States Code) by 

19 which such financial assistance is provided for each 

20 such economic development activity; and 

21 (4) Recommendations for specific activities and 

22 measures to enhance community-based economic de23 velopment capacity building in states having less 

24 concentrated economic and infrastructure resources 
18 

•HR 2683 IH 

1 and to strengthen nationwide community-based eco2 nomic development. 

3 SEC. 106. DEFINITIONS. 

4 For purposes of this title, the following definitions 

5 shall apply: 

6 (1) COMMUNITY-BASED ECONOMIC DEVELOP7 MENT ORGANIZATION.— 

8 (A) IN GENERAL.—For purposes of this 

9 section, the term ‘‘community-based economic 

10 development organization’’ means a nonprofit, 

11 nongovernmental organization that— 

12 (i) has as its primary mission to 

13 serve, or provide investment capital for, 

14 low-income communities and low-income 

15 persons; and 

16 (ii)(I) maintains accountability to resi17 dents of low-income communities through 

18 their representation on any governing 

19 board of the organization or on any advi20 sory board to the organization; or 

21 (II) maintains accountability to low22 income communities by having a board pri23 marily consisting of leaders of community24 based development organizations from its 

25 region or State on its governing board. 
19 

•HR 2683 IH 

1 (B) NONDISCRIMINATION AGAINST FAITH2 BASED ORGANIZATIONS.—Such term shall in3 clude any faith-based organization that complies 

4 with the requirements under clauses (i) and (ii) 

5 of subparagraph (A). 

6 (C) TREATMENT OF COMMUNITY DEVEL7 OPMENT FINANCIAL INSTITUTIONS.—The re8 quirements of subparagraph (A) shall be treat9 ed as met by any community development fi10 nancial institution (as such term is defined in 

11 section 103 of the Community Development 

12 Banking and Financial Institutions Act of 1994 

13 (12 U.S.C. 4702). 

14 (2) COMMUNITY ECONOMIC DEVELOPMENT

15 PROJECT.—The term ‘‘community economic develop16 ment project’’ means a project that involves— 

17 (A) investment in business enterprises, in18 cluding investments in the form of loan origina19 tion, equity investment, and monetary assist20 ance to home buyers or to business owners for 

21 business development projects; or 

22 (B) the construction or rehabilitation of fa23 cilities, including commercial or industrial facili24 ties, homes, apartment buildings, and commu25 nity parks. 
20 

•HR 2683 IH 

1 (3) LOW-INCOME COMMUNITIES AND PER2 SONS.—The terms ‘‘low-income communities’’ and 

3 ‘‘low-income persons’’ shall have the meanings given 

4 such terms in section 45D of the Internal Revenue 

5 Code of 1986 (26 U.S.C. 45D). 

6 (4) SECRETARY.—The term ‘‘Secretary’’ means 

7 the Secretary of Housing and Urban Development. 

8 TITLE II—TAX INCENTIVES FOR 

9 DEVELOPMENT PROJECTS IN 

10 RENEWAL, EMPOWERMENT, 

11 AND ENTERPRISE COMMU12 NITIES 

13 SEC. 201. HOUSING INFRASTRUCTURE CREDIT. 

14 (a) IN GENERAL.—Subpart D of part IV of sub15 chapter A of chapter 1 of the Internal Revenue Code of 

16 1986 (relating to business-related credits) is amended by 

17 adding at the end the following new section: 

18 ‘‘SEC. 45J. HOUSING INFRASTRUCTURE. 

19 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec20 tion 38, the housing infrastructure credit determined 

21 under this section for the taxable year is an amount equal 

22 to 50 percent of the aggregate bases of qualified housing 

23 infrastructure property placed in service by the taxpayer 

24 during the taxable year. 
21 

•HR 2683 IH 

1 ‘‘(b) QUALIFIED HOUSING INFRASTRUCTURE PROP2 ERTY.—For purposes of this subpart— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified housing 

4 infrastructure property’ means any housing infra5 structure property— 

6 ‘‘(A) which is property to which section 

7 168 applies, 

8 ‘‘(B) which is placed in service after the 

9 date of the enactment of this section, and 

10 ‘‘(C)(i) the construction, reconstruction, or 

11 erection of which is completed by the taxpayer, 

12 or 

13 ‘‘(ii) which is acquired by the taxpayer if 

14 the original use of such property commences 

15 with the taxpayer. 

16 ‘‘(2) HOUSING INFRASTRUCTURE PROPERTY.— 

17 For purposes of this subsection, the term ‘housing 

18 infrastructure property’ means property— 

19 ‘‘(A) which is located in an empowerment 

20 zone, enterprise community, or renewal commu21 nity, and 

22 ‘‘(B) substantially all of the use of which 

23 is to provide water, sewer, electricity, or natural 

24 gas services to residences located in such a zone 

25 or community. 
22 

•HR 2683 IH 

1 Such term shall not include property which uses 

2 such services after the point of residential metering. 

3 ‘‘(c) CERTAIN RULES NOT TO APPLY.— 

4 ‘‘(1) RECAPTURE NOT TO APPLY TO DISPOSI5 TIONS TO GOVERNMENT.—Section 50(a) shall not 

6 apply to a disposition to a governmental unit. 

7 ‘‘(2) USE BY GOVERNMENT PERMITTED.—Sec8 tion 50(b)(4) shall not apply.’’. 

9 (b) CREDIT TO BE PART OF GENERAL BUSINESS

10 CREDIT.—Subsection (a) of section 38 of such Code is 

11 amended by striking ‘‘plus’’ at the end of paragraph (18), 

12 by striking the period at the end of paragraph (19) and 

13 inserting ‘‘, plus’’, and by adding at the end the following 

14 new paragraph: 

15 ‘‘(20) the housing infrastructure credit deter16 mined under section 45J(a).’’. 

17 (c) CLERICAL AMENDMENT.—The table of sections 

18 for subpart D of part IV of subchapter A of chapter 1 

19 of such Code is amended by adding at the end the fol20 lowing new item: 

‘‘Sec. 45J. Housing infrastructure.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to periods after the date of the 

23 enactment of this Act under rules similar to the rules of 

24 section 48(m) of the Internal Revenue Code of 1986 (as 
23 

•HR 2683 IH 

1 in effect on the day before the the date of the enactment 

2 of the Revenue Reconciliation Act of 1990). 

3 SEC. 202. INCREASE AND EXTENSION OF BENEFITS FOR 

4 EMPLOYMENT AND CERTAIN INVESTMENTS. 

5 (a) CREDITS FOR EMPLOYMENT.— 

6 (1) WORK OPPORTUNITY CREDIT.— 

7 (A) CREDIT DOUBLED.—Subsection (b) of 

8 section 51 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the fol10 lowing new paragraph: 

11 ‘‘(4) TEMPORARY DOUBLING OF CREDIT.—In 

12 the case of individuals beginning work for the em13 ployer after the date of the enactment of the Com14 munity Economic Development Expertise Enhance15 ment Act of 2005 and before January 1, 2010, this 

16 section shall be applied by doubling each of the dol17 lar amounts in paragraph (3) and subsections 

18 (d)(7)(B)(ii) and (h)(1). ’’. 

19 (B) EXTENSION.—Subparagraph (B) of 

20 section 51(c)(4) of such Code is amended by 

21 striking ‘‘December 31 2005’’ and inserting 

22 ‘‘December 31, 2009’’. 

23 (2) WELFARE-TO-WORK CREDIT.— 

24 (A) TEMPORARY DOUBLING OF CREDIT.— 

25 Section 51A of such Code is amended by redes-
24 

•HR 2683 IH 

1 ignating subsection (f) as subsection (g) and by 

2 inserting after subsection (e) the following new 

3 subsection: 

4 ‘‘(f) TEMPORARY DOUBLING OF CREDIT.—In the 

5 case of individuals beginning work for the employer after 

6 the date of the enactment of the Community Economic 

7 Development Expertise Enhancement Act of 2005 and be8 fore January 1, 2010, this section shall be applied by dou9 bling each of the dollar amounts in paragraphs (4) and 

10 (5)(C) of subsection (b). ’’. 

11 (B) EXTENSION.—Subsection (f) of section 

12 51A of such Code is amended by striking ‘‘De13 cember 31 2005’’ and inserting ‘‘December 31, 

14 2009’’. 

15 (3) TEMPORARY DOUBLING OF EMPOWERMENT

16 ZONE EMPLOYMENT CREDIT.—Subsection (c) of sec17 tion 1396 of such Code is amended by adding at the 

18 end the following new paragraph: 

19 ‘‘(4) TEMPORARY DOUBLING OF CREDIT.—In 

20 the case of individuals beginning work for the em21 ployer after the date of the enactment of the Com22 munity Economic Development Expertise Enhance23 ment Act of 2005 and before January 1, 2010, this 

24 section shall be applied by doubling the dollar 

25 amounts in paragraphs (2) and (3)(B).’’. 
25 

•HR 2683 IH 

1 (4) TEMPORARY DOUBLING OF RENEWAL COM2 MUNITY EMPLOYMENT CREDIT.—Subsection (b) of 

3 section 1400H of such Code is amended by adding 

4 at the end the following new flush sentence: 

5 ‘‘In the case of individuals beginning work for the em6 ployer after the date of the enactment of the Community 

7 Economic Development Expertise Enhancement Act of 

8 2005 and before January 1, 2010, paragraph (2) shall be 

9 applied by substituting ‘$20,000’ for ‘$10,000’. ’’. 

10 (5) INDIAN EMPLOYMENT CREDIT.— 

11 (A) TEMPORARY INCREASE IN CREDIT.— 

12 (i) IN GENERAL.—Paragraph (3) of 

13 section 45A(b) of such Code is amended by 

14 inserting before the period ‘‘($25,000 in 

15 the case of individuals beginning work for 

16 the employer after the date of the enact17 ment of the Community Economic Devel18 opment Expertise Enhancement Act of 

19 2005 and before January 1, 2010)’’. 

20 (ii) CONFORMING AMENDMENT.— 

21 Paragraph (2) of section 45A(c) of such 

22 Code is amended by adding at the end the 

23 following new sentence: ‘‘In the case of in24 dividuals beginning work for the employer 

25 after the date of the enactment of the 
26 

•HR 2683 IH 

1 Community Economic Development Exper2 tise Enhancement Act of 2005 and before 

3 January 1, 2010, the limitation under the 

4 preceding sentence shall not be less than 

5 the limitation in effect under subsection 

6 (b)(3).’’. 

7 (B) EXTENSION.—Subsection (f) of section 

8 45A of such Code is amended by striking ‘‘De9 cember 31 2005’’ and inserting ‘‘December 31, 

10 2009’’. 

11 (b) DEDUCTIONS FOR EXPENSING THE COST OF

12 PROPERTY.— 

13 (1) INCREASE IN SECTION 179 DEDUCTION.— 

14 (A) DOLLAR LIMITATION.—Paragraph (1) 

15 of section 179(b) of such Code is amended by 

16 striking the parenthetical and inserting 

17 ‘‘($125,000 in the case of taxable years begin18 ning after the date of the enactment of the 

19 Community Economic Development Expertise 

20 Enhancement Act of 2005 and before January 

21 1, 2010)’’. 

22 (B) REDUCTION IN LIMITATION.—Para23 graph (2) of section 179(b) of such Code is 

24 amended by striking the parenthetical and in25 serting ‘‘($500,000 in the case of taxable years 
27 

•HR 2683 IH 

1 beginning after the date of the enactment of the 

2 Community Economic Development Expertise 

3 Enhancement Act of 2005 and before January 

4 1, 2010)’’. 

5 (2) INCREASE IN DEDUCTION FOR COMMERCIAL

6 REVITALIZATION.— 

7 (A) DOLLAR LIMITATION PER BUILDING.— 

8 Paragraph (1) of section 1400I(c) of such Code 

9 is amended by inserting before the comma 

10 ‘‘($12,500,000 in the case of buildings placed in 

11 service after the date of the enactment of the 

12 Community Economic Development Expertise 

13 Enhancement Act of 2005 and before January 

14 1, 2010)’’. 

15 (B) DOLLAR LIMITATION PER RENEWAL

16 COMMUNITY.—Subparagraph (A) of section 

17 1400I(d)(2) of such Code is amended by strik18 ing ‘‘$12,000,000’’ and inserting ‘‘$12,000,000 

19 ($15,000,000 in the case of calendar years end20 ing after the date of the enactment of the Com21 munity Economic Development Expertise En22 hancement Act of 2005 and before 2010)’’. 

23 (3) EXTENSION OF SPECIAL DEDUCTION FOR

24 ENVIRONMENTAL REMEDIATION.—Subsection (h) of 

25 section 198 of such Code is amended by striking 
28 

•HR 2683 IH 

1 ‘‘December 31 2005’’ and inserting ‘‘December 31, 

2 2009’’. 

3 (4) EXTENSION OF SPECIAL DEDUCTION FOR

4 PROPERTY USED ON INDIAN RESERVATIONS.—Para5 graph (8) of section 168(j) of such Code is amended 

6 by striking ‘‘December 31 2005’’ and inserting ‘‘De7 cember 31, 2009’’. 

Æ