II 

114TH CONGRESS 

2D SESSION S. 3 

To amend the Internal Revenue Code of 1986 to provide additional new 

markets tax credits for distressed coal communities. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 15, 2016 

Mrs. CAPITO introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

additional new markets tax credits for distressed coal 

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 the ‘‘Creating Opportunities 

5 for Rural Economic Expansion Act’’ or the ‘‘CORE Act’’. 

6 SEC. 2. ADDITIONAL NEW MARKETS TAX CREDIT FOR DIS7 TRESSED COAL COMMUNITIES. 

8 (a) IN GENERAL.—Section 45D(f) of the Internal 

9 Revenue Code of 1986 is amended by adding at the end 

10 the following new paragraph: 


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1 ‘‘(4) SET ASIDE OF PORTION OF LIMITATION

2 FOR DISTRESSED COAL COMMUNITIES.— 

3 ‘‘(A) IN GENERAL.—For any calendar year 

4 after 2016, not less than 5 percent of the new 

5 markets tax credit limitation shall be allocated 

6 to qualified community development entities in 

7 connection with qualified investments the pro8 ceeds of which are substantially used to make 

9 qualified coal community investments. 

10 ‘‘(B) QUALIFIED COAL COMMUNITY IN11 VESTMENT.—For purposes of this paragraph— 

12 ‘‘(i) IN GENERAL.—The term ‘quali13 fied coal community investment’ means— 

14 ‘‘(I) any capital or equity invest15 ment in, or loan to, any qualified ac16 tive distressed coal community busi17 ness, 

18 ‘‘(II) the purchase from another 

19 community development entity of any 

20 loan made by such entity which is a 

21 qualified coal community investment, 

22 ‘‘(III) financial counseling and 

23 other services specified in regulations 

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1 nesses located in, and residents of, 

2 distressed coal communities, and 

3 ‘‘(IV) any equity investment in, 

4 or loan to, any qualified community 

5 development entity in connection with 

6 qualified investments the proceeds of 

7 which are substantially used to make 

8 qualified coal community investments. 

9 ‘‘(ii) QUALIFIED ACTIVE DISTRESSED

10 COAL COMMUNITY BUSINESS.—The term 

11 ‘qualified active coal community business’ 

12 means any business which would be a 

13 qualified active low-income community 

14 business if paragraphs (2) and (3) of sub15 section (d) were applied by substituting 

16 ‘distressed coal community’ for ‘low-income 

17 community’ each place it appears. 

18 ‘‘(iii) DISTRESSED COAL COMMU19 NITY.— 

20 ‘‘(I) IN GENERAL.—The term 

21 ‘distressed coal community’ means 

22 any low-income community which is 

23 located in a county which— 

24 ‘‘(aa) was one of the 30 

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1 ment decrease among coal opera2 tors (as determined under reports 

3 issued by the Mine Safety and 

4 Health Administration) for an 

5 applicable period, or 

6 ‘‘(bb) is contiguous to a 

7 county which— 

8 ‘‘(AA) is described in 

9 item (aa) and is within the 

10 same State as such county, 

11 and 

12 ‘‘(BB) contains not less 

13 than 1 low-income commu14 nity. 

15 ‘‘(II) APPLICABLE PERIODS.— 

16 For purposes of subclause (I)(aa), the 

17 term ‘applicable period’ means any of 

18 the following periods: 

19 ‘‘(aa) Calendar year 2013 

20 compared to calendar year 2012. 

21 ‘‘(bb) Calendar year 2014 

22 compared to calendar year 2013. 

23 ‘‘(cc) Calendar year 2015 

24 compared to calendar year 2014. 


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1 ‘‘(C) LIMITATION OF ALLOCATION OF SET

2 ASIDE.— 

3 ‘‘(i) IN GENERAL.—In allocating the 

4 portion of the new markets tax credit limi5 tation to which subparagraph (A) applies, 

6 the Secretary shall ensure that, with re7 spect to any eligible State, not less than 

8 the minimum percentage of such limitation 

9 is allocated to qualified community devel10 opment entities making qualified coal com11 munity investments in such eligible State. 

12 ‘‘(ii) MINIMUM PERCENTAGE.—For 

13 purposes of clause (i), the minimum per14 centage for any eligible State is the per15 centage equal to 80 percent of the ratio 

16 of— 

17 ‘‘(I) the qualified coal operator 

18 employment decrease in such State, to 

19 ‘‘(II) the total qualified coal op20 erator employment decrease in all eli21 gible States. 

22 ‘‘(iii) QUALIFIED COAL OPERATOR EM23 PLOYMENT DECREASE.—For purposes of 

24 clause (ii), the term ‘qualified coal operator 

25 employment decrease’ means, with respect 


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1 to any eligible State, the aggregate amount 

2 of employment decrease among coal opera3 tors for all counties in such State— 

4 ‘‘(I) in which there is a low-in5 come community, and 

6 ‘‘(II) which are taken into ac7 count under item (aa) of subpara8 graph (B)(iii)(I). 

9 ‘‘(iv) ELIGIBLE STATE.—For purposes 

10 of this subparagraph, the term ‘eligible 

11 State’ means any State in which there is a 

12 distressed coal community. 

13 ‘‘(D) APPLICATION OF CARRYOVER.— 

14 Paragraph (3) shall be applied separately with 

15 respect to amounts described in subparagraph 

16 (A).’’. 

17 (b) APPLICATION OF RECAPTURE RULES.—Section 

18 45D(g)(3)(B) of the Internal Revenue Code of 1986 is 

19 amended by inserting ‘‘(or, in the case of an investment 

20 described in subsection (f)(4), as required under such sub21 section)’’ after ‘‘(b)(1)(B)’’. 

Æ 


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