I 

111TH CONGRESS 

2D SESSION H. R. 6041 

To amend the Internal Revenue Code of 1986 to exclude income attributable 

to certain empowerment zone real property from gross income. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2010 

Mr. KIRK 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 exclude 

income attributable to certain empowerment zone real 

property from gross income. 

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 ‘‘Bringing Business 

5 Back Act of 2010’’. 

6 SEC. 2. INCENTIVES FOR CERTAIN EMPOWERMENT ZONE 

7 REAL PROPERTY. 

8 (a) IN GENERAL.—Subchapter U of chapter 1 of the 

9 Internal Revenue Code of 1986 is amended by redesig10 nating part V as part VI, by redesignating section 1397F 


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1 as section 1397G, and by inserting after part IV the fol2 lowing new part: 

3 ‘‘PART V—INCENTIVE FOR EMPOWERMENT ZONE 

4 REAL PROPERTY 

5 ‘‘SEC. 1397F. INCOME ATTRIBUTABLE TO EMPOWERMENT 

6 ZONE REAL PROPERTY EXCLUDED FROM 

7 GROSS INCOME. 

8 ‘‘(a) IN GENERAL.—Gross income shall not include 

9 income or gain attributable to qualified real property for 

10 any taxable year beginning during the exclusion period. 

11 ‘‘(b) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) QUALIFIED REAL PROPERTY.— 

13 ‘‘(A) IN GENERAL.—The term ‘qualified 

14 real property’ means any real property— 

15 ‘‘(i) which is certified by the State or 

16 local zoning authority, and any economic 

17 development board, with respect to such 

18 property as meeting the requirements of 

19 subparagraph (B), and 

20 ‘‘(ii) with respect to which an election 

21 has been made (at such time and in such 

22 form and manner as the Secretary shall by 

23 regulation prescribe) to have this section 

24 apply. 


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1 ‘‘(B) REQUIREMENTS.—Property meets 

2 the requirements of this subparagraph if such 

3 property— 

4 ‘‘(i) is zoned for commercial use, 

5 ‘‘(ii) has been undeveloped and vacant 

6 during the 2-year period ending on the 

7 date of certification, and 

8 ‘‘(iii) is located within a qualified cen9 sus tract. 

10 ‘‘(C) QUALIFIED CENSUS TRACT.—The 

11 term ‘qualified census tract’ means any census 

12 tract which— 

13 ‘‘(i)(I) has an average poverty rate ex14 ceeding the national average poverty rate, 

15 or 

16 ‘‘(II) has an unemployment rate above 

17 the national unemployment rate, and 

18 ‘‘(ii) exhibits another condition of dis19 tress, such as high crime, deteriorating in20 frastructure, or population decline. 

21 Poverty rates shall be determined by using 

22 2010 census data, and unemployment rates 

23 shall be determined by reference to the rate of 

24 unemployment announced by the Bureau of 

25 Labor Statistics of the Department of Labor 


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1 for the months in the 2 most recently ended 

2 calendar quarters. 

3 ‘‘(D) ECONOMIC DEVELOPMENT BOARD.— 

4 The term ‘economic development board’ means, 

5 with respect to any property, any entity estab6 lished by law to oversee the economic develop7 ment of an area within which such property is 

8 located. 

9 ‘‘(2) EXCLUSION PERIOD.—The term ‘exclusion 

10 period’ means, with respect to a taxable year, the 10 

11 taxable year period beginning with the first taxable 

12 year beginning after the date of the enactment of 

13 this section for which the income attributable to the 

14 qualified real property exceeds the pre-depreciation 

15 expenses attributable to such real property. 

16 ‘‘(c) SPECIAL RULES.—For purposes of this sec17 tion— 

18 ‘‘(1) SUBSEQUENT TAXPAYERS.—Subsection (a) 

19 shall only apply to a taxpayer who has an ownership 

20 interest in the qualified real property on the first 

21 day of the exclusion period with respect to such 

22 property. 

23 ‘‘(2) LIMITATION ON APPLICATION OF SEC24 TION.—An election to have this section apply may 

25 only be made once with respect to any property. 


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1 ‘‘(3) TAX-EXEMPT USE PROPERTY.—This sec2 tion shall not apply to any property which is tax-ex3 empt use property (as defined in section 168(h)). 

4 ‘‘(d) REGULATIONS.—The Secretary may prescribe 

5 such regulations as may be necessary or appropriate to 

6 carry out the purposes of this section, including methods 

7 for allocating income and expenses to property and rules 

8 to prevent abuse of this section.’’. 

9 (b) CLERICAL AMENDMENT.—The table of parts for 

10 subchapter U of chapter 1 of such Code is amended by 

11 striking the item relating to part V and inserting the fol12 lowing new items: 

‘‘PART V. INCENTIVE FOR EMPOWERMENT ZONE REAL PROPERTY. 

‘‘PART VI. REGULATIONS.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

Æ 


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