I 

108TH CONGRESS 

2D SESSION H. R. 4096 

To amend the Internal Revenue Code of 1986 to expand the incentives 

for renewal communities. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2004 

Mr. SENSENBRENNER (for himself and Mr. MEEHAN) 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 expand 

the incentives for renewal communities. 

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 ‘‘Renewal Communities Ex5 pansion and Technical Improvements Act of 2004’’. 

6 SEC. 2. EXPANSION OF TAX INCENTIVES FOR RENEWAL 

7 COMMUNITIES. 

8 (a) EMPLOYMENT CREDIT ALLOWED FOR EMPLOY9 EES RESIDING IN ANY RENEWAL COMMUNITY.—Sub10 section (b) of section 1400H of the Internal Revenue Code 
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1 of 1986 (relating to modification) is amended by striking 

2 ‘‘and’’ at the end of paragraph (1), by striking the period 

3 at the end of paragraph (2) and inserting ‘‘, and’’, and 

4 by inserting after paragraph (2) the following new para5 graph: 

6 ‘‘(3) subsection (d)(1)(B) thereof shall be ap7 plied by substituting ‘within any’ for ‘within such’.’’. 

8 (b) PUBLIC SERVICE CAP EXEMPTION.— 

9 (1) IN GENERAL.—Part III of subchapter X of 

10 chapter 1 of such Code (relating to additional incen11 tives) is amended by adding at the end the following 

12 new section: 

13 ‘‘SEC. 1400K. PUBLIC SERVICE CAP EXEMPTION. 

14 ‘‘In the case of an area designated as a renewal com15 munity which was an enterprise community, the same ex16 emption from the percentage limitation under section 

17 105(a)(8) of the Housing and Community Development 

18 Act of 1974 on the use of community development block 

19 grants for provision of public services that applied to such 

20 enterprise community shall apply to the renewal commu21 nity.’’. 

22 (2) CLERICAL AMENDMENT.—The table of sec23 tions for Part III of subchapter X of chapter 1 of 

24 such Code is amended by adding at the end the fol25 lowing new item: 

‘‘Sec. 1400K. Public service cap exemption.’’. 
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1 (c) EXPANSION OF RENEWAL COMMUNITY TO IN2 CLUDE ADJACENT AREAS OF HIGH ECONOMIC DISTRESS

3 AND CERTAIN NONCONTIGUOUS PARCELS.—Subsection 

4 (a) of section 1400E of such Code is amended by adding 

5 at the end the following new paragraph: 

6 ‘‘(6) EXPANSION OF DESIGNATED AREAS.— 

7 ‘‘(A) IN GENERAL.—The Secretary of 

8 Housing and Urban Development may expand 

9 the boundaries of any area designated as a re10 newal community to include— 

11 ‘‘(i) any census tract or census block 

12 group adjacent to the renewal community 

13 which the Secretary of Housing and Urban 

14 Development determines is an area of high 

15 economic distress, 

16 ‘‘(ii) any census tract or census block 

17 group adjacent to the renewal community 

18 if not less than 50 percent of such tract or 

19 group is non-residential, or 

20 ‘‘(iii) any census tract or census block 

21 group which is noncontiguous to the re22 newal community (determined without re23 gard to this paragraph) if not less than 50 

24 percent of such tract or group is non-resi25 dential. 
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1 ‘‘(B) LIMITATION ON NUMBER OF PAR2 CELS.—Subparagraph (A)(iii) shall not apply to 

3 more than 5 parcels with respect to any renewal 

4 community. 

5 ‘‘(C) PERIOD FOR WHICH DESIGNATION IS

6 IN EFFECT.—Any expansion of a renewal com7 munity under this paragraph shall be effective 

8 on the date designated by the Secretary of 

9 Housing and Urban Development and shall con10 tinue in effect thereafter as part of such re11 newal community.’’. 

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

13 this section shall apply to years beginning after the date 

14 of the enactment of this Act. 

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