I 

108TH CONGRESS 

2D SESSION H. R. 4193 

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. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2004 

Mr. ISTOOK 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 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. 

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 
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1 communities) is amended by adding at the end the fol2 lowing new subsection: 

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

4 2000 CENSUS.— 

5 ‘‘(1) IN GENERAL.—At the request of all gov6 ernments which nominated an area as a renewal 

7 community, the Secretary of Housing and Urban 

8 Development may expand the area of such commu9 nity to include any census tract if— 

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

11 nominated, such community would have met the 

12 requirements of this section using 1990 census 

13 data even if such tract had been included in 

14 such community, and 

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

16 2000 census data which exceeds the poverty 

17 rate for such tract using 1990 census data, or 

18 ‘‘(B)(i) such community would be de19 scribed in subparagraph (A)(i) but for the fail20 ure to meet one or more of the requirements of 

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

22 subsection (c) using 1990 census data, 

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

24 has a population of not more than 200,000 
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1 using either 1990 census data or 2000 census 

2 data, 

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

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

5 and 

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

7 subparagraph (A)(ii). 

8 ‘‘(2) EXCEPTION FOR CERTAIN CENSUS TRACTS

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

10 census tract which did not have a poverty rate deter11 mined by the Bureau of the Census using 1990 cen12 sus data, paragraph (1)(B) shall be applied without 

13 regard to clause (iv) thereof. 

14 ‘‘(3) SPECIAL RULE FOR CERTAIN CENSUS

15 TRACTS WITH LOW POPULATION IN 2000.—At the re16 quest of all governments which nominated an area 

17 as a renewal community, the Secretary of Housing 

18 and Urban Development may expand the area of 

19 such community to include any census tract if— 

20 ‘‘(A) either— 

21 ‘‘(i) such tract has no population 

22 using 2000 census data, or 

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

24 determined by the Bureau of the Census 

25 using 2000 census data, 
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1 ‘‘(B) such tract is one of general distress, 

2 and 

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

4 meets the requirements of subparagraphs (A) 

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

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

7 under this subsection shall take effect as provided in 

8 subsection (b).’’ 

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

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

11 amendments made by section 101 of the Community Re12 newal Tax Relief Act of 2000. 

13 SEC. 2. POPULATION CENSUS TRACTS WITH LOW POPU14 LATIONS TREATED AS LOW-INCOME COMMU15 NITIES FOR PURPOSES OF NEW MARKETS 

16 TAX CREDIT. 

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

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

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

20 new paragraph: 

21 ‘‘(4) TRACTS WITH LOW POPULATION.—A pop22 ulation census tract with a population of less than 

23 2,000 shall be treated as a low-income community 

24 for purposes of this section if such tract— 
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1 ‘‘(A) is within an empowerment zone, the 

2 designation of which is in effect under section 

3 1391, and 

4 ‘‘(B) is contiguous to one or more low-in5 come communities (determined without regard 

6 to this paragraph).’’. 

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

8 this section shall apply to investments made after the date 

9 of the enactment of this Act. 

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