108TH CONGRESS

2D SESSION H. R. 4193

AN ACT

To amend the Internal Revenue Code of 1986 to

of the new markets tax credit.lations as low-income communities for purposesand to treat certain census tracts with low popunewal communities based on 2000 census dataallow for the expansion of areas designated as re-

108TH CONGRESS

2D SESSION H. R. 4193

AN ACT

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

3 SECTION 1. EXPANSION OF DESIGNATED RENEWAL COM4 MUNITY AREA BASED ON 2000 CENSUS DATA.

5 (a) IN GENERAL.—Section 1400E of the Internal

6 Revenue Code of 1986 (relating to designation of renewal

7 communities) is amended by adding at the end the fol8 lowing new subsection:

9 ‘‘(g) EXPANSION OF DESIGNATED AREA BASED ON

10 2000 CENSUS.—

11 ‘‘(1) IN GENERAL.—At the request of all gov12 ernments which nominated an area as a renewal

13 community, the Secretary of Housing and Urban

14 Development may expand the area of such commu15 nity to include any census tract if—

16 ‘‘(A)(i) at the time such community was

17 nominated, such community would have met the

18 requirements of this section using 1990 census

19 data even if such tract had been included in

20 such community, and

21 ‘‘(ii) such tract has a poverty rate using

22 2000 census data which exceeds the poverty

23 rate for such tract using 1990 census data, or

24 ‘‘(B)(i) such community would be de25 scribed in subparagraph (A)(i) but for the fail-
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1 ure to meet one or more of the requirements of

2 paragraphs (2)(C)(i), (3)(C), and (3)(D) of

3 subsection (c) using 1990 census data,

4 ‘‘(ii) such community, including such tract,

5 has a population of not more than 200,000

6 using either 1990 census data or 2000 census

7 data,

8 ‘‘(iii) such tract meets the requirement of

9 subsection (c)(3)(C) using 2000 census data,

10 and

11 ‘‘(iv) such tract meets the requirement of

12 subparagraph (A)(ii).

13 ‘‘(2) EXCEPTION FOR CERTAIN CENSUS TRACTS

14 WITH LOW POPULATION IN 1990.—In the case of any

15 census tract which did not have a poverty rate deter16 mined by the Bureau of the Census using 1990 cen17 sus data, paragraph (1)(B) shall be applied without

18 regard to clause (iv) thereof.

19 ‘‘(3) SPECIAL RULE FOR CERTAIN CENSUS

20 TRACTS WITH LOW POPULATION IN 2000.—At the re21 quest of all governments which nominated an area

22 as a renewal community, the Secretary of Housing

23 and Urban Development may expand the area of

24 such community to include any census tract if—

25 ‘‘(A) either—
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1 ‘‘(i) such tract has no population

2 using 2000 census data, or

3 ‘‘(ii) no poverty rate for such tract is

4 determined by the Bureau of the Census

5 using 2000 census data,

6 ‘‘(B) such tract is one of general distress,

7 and

8 ‘‘(C) such community, including such tract,

9 meets the requirements of subparagraphs (A)

10 and (B) of subsection (c)(2).

11 ‘‘(4) PERIOD IN EFFECT.—Any expansion

12 under this subsection shall take effect as provided in

13 subsection (b).’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall take effect as if included in the

16 amendments made by section 101 of the Community Re17 newal Tax Relief Act of 2000.

18 SEC. 2. POPULATION CENSUS TRACTS WITH LOW POPU19 LATIONS TREATED AS LOW-INCOME COMMU20 NITIES FOR PURPOSES OF NEW MARKETS

21 TAX CREDIT.

22 (a) IN GENERAL.—Subsection (e) of section 45D of

23 the Internal Revenue Code of 1986 (relating to low-income

24 community) is amended by adding at the end the following

25 new paragraph:
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1 ‘‘(4) TRACTS WITH LOW POPULATION.—A pop2 ulation census tract with a population of less than

3 2,000 shall be treated as a low-income community

4 for purposes of this section if such tract—

5 ‘‘(A) is within an empowerment zone, the

6 designation of which is in effect under section

7 1391, and

8 ‘‘(B) is contiguous to one or more low-in9 come communities (determined without regard

10 to this paragraph).’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 this section shall apply to investments made after the date

13 of the enactment of this Act.

Passed the House of Representatives May 17, 2004.

Attest:

Clerk.