CORE Act

To amend the Internal Revenue Code of 1986 to provide additional new markets tax credits for distressed coal communities. 1. Short title This Act may be cited as the Creating Opportunities for Rural Economic Expansion Act CORE Act 2. Additional new markets tax credit for distressed coal communities (a) In general Section 45D(f) (4) Set aside of portion of limitation for distressed coal communities (A) In general For any calendar year after 2016, not less than 5 percent of the new markets tax credit limitation shall be allocated to qualified community development entities in connection with qualified investments the proceeds of which are substantially used to make qualified coal community investments. (B) Qualified coal community investment For purposes of this paragraph— (i) In general The term qualified coal community investment (I) any capital or equity investment in, or loan to, any qualified active distressed coal community business, (II) the purchase from another community development entity of any loan made by such entity which is a qualified coal community investment, (III) financial counseling and other services specified in regulations prescribed by the Secretary to businesses located in, and residents of, distressed coal communities, and (IV) any equity investment in, or loan to, any qualified community development entity in connection with qualified investments the proceeds of which are substantially used to make qualified coal community investments. (ii) Qualified active distressed coal community business The term qualified active coal community business distressed coal community low-income community (iii) Distressed coal community (I) In general The term distressed coal community (aa) was one of the 30 counties with the biggest employment decrease among coal operators (as determined under reports issued by the Mine Safety and Health Administration) for an applicable period, or (bb) is contiguous to a county which— (AA) is described in item (aa) and is within the same State as such county, and (BB) contains not less than 1 low-income community. (II) Applicable periods For purposes of subclause (I)(aa), the term applicable period (aa) Calendar year 2013 compared to calendar year 2012. (bb) Calendar year 2014 compared to calendar year 2013. (cc) Calendar year 2015 compared to calendar year 2014. (C) Limitation of allocation of set aside (i) In general In allocating the portion of the new markets tax credit limitation to which subparagraph (A) applies, the Secretary shall ensure that, with respect to any eligible State, not less than the minimum percentage of such limitation is allocated to qualified community development entities making qualified coal community investments in such eligible State. (ii) Minimum percentage For purposes of clause (i), the minimum percentage for any eligible State is the percentage equal to 80 percent of the ratio of— (I) the qualified coal operator employment decrease in such State, to (II) the total qualified coal operator employment decrease in all eligible States. (iii) Qualified coal operator employment decrease For purposes of clause (ii), the term qualified coal operator employment decrease (I) in which there is a low-income community, and (II) which are taken into account under item (aa) of subparagraph (B)(iii)(I). (iv) Eligible State For purposes of this subparagraph, the term eligible State (D) Application of carryover Paragraph (3) shall be applied separately with respect to amounts described in subparagraph (A). . (b) Application of recapture rules Section 45D(g)(3)(B) (or, in the case of an investment described in subsection (f)(4), as required under such subsection) (b)(1)(B)

Summary: Creating Opportunities for Rural Economic Expansion Act or the CORE Act This bill amends the Internal Revenue Code to require at least 5% of the new markets tax credit limitation to be allocated to community development entities in connection with certain investments, financial counseling, and other services in distressed coal communities. A "distressed coal community" is any low-income community located in a county that: (1) was one of the 30 counties with the biggest employment decrease among coal operators over a specified time period; or (2) is contiguous to a county that has the required decrease in employment, is located in the same state, and contains at least one low-income community.