‘‘(2) LIMITATION BASED ON GAIN.—In the case 
of the sale of the principal residence to a person who 
is not related to the taxpayer, the increase in tax de-
termined under paragraph (1) shall not exceed the 
amount of gain (if any) on such sale. Solely for pur-
poses of the preceding sentence, the adjusted basis 
of such residence shall be reduced by the amount of 
the credit allowed under subsection (a). 
‘‘(3) EXCEPTIONS.— 
‘‘(A) DEATH OF TAXPAYER.—Paragraphs 
(1) shall not apply to any taxable year ending 
after the date of the taxpayer’s death. 
‘‘(B) INVOLUNTARY
CONVERSION.—Para-
graph (a) shall not apply in the case of a resi-
dence which is compulsorily or involuntarily 
converted (within the meaning of section 
1033(a)) if the taxpayer acquires a new prin-
cipal residence during the 2-year period begin-
ning on the date of the disposition or cessation 
referred to in paragraph (1). Paragraph (1) 
shall apply to such new principal residence dur-
ing the 5-year period referred to therein in the 
same manner as if such new principal residence 
were the converted residence. 
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‘‘(C) TRANSFERS BETWEEN SPOUSES OR 
INCIDENT TO DIVORCE.—In the case of a trans-
fer of a residence to which section 1041(a) ap-
plies— 
‘‘(i) paragraph (1) shall not apply to 
such transfer, and 
‘‘(ii) in the case of taxable years end-
ing after such transfer, paragraph (1) shall 
apply to the transferee in the same manner 
as if such transferee were the transferor 
(and shall not apply to the transferor). 
‘‘(4) JOINT RETURNS.—In the case of a credit 
allowed under subsection (a) with respect to a joint 
return, half of such credit shall be treated as having 
been allowed to each individual filing such return for 
purposes of this subsection. 
‘‘(5) RETURN REQUIREMENT.—If the tax im-
posed by this chapter for the taxable year is in-
creased under this subsection, the taxpayer shall, 
notwithstanding section 6012, be required to file a 
return with respect to the taxes imposed under this 
subtitle. 
‘‘(g) APPLICATION OF SECTION.—This section shall 
only apply to a principal residence purchased by the tax-
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payer after December 31, 2017, and before January 1, 
2020.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subpart C of part IV of subchapter A of 
chapter 1 of such Code is amended by striking the 
item relating to section 36 and inserting the fol-
lowing new item: 
‘‘Sec. 36. First-time homebuyer credit for economically distressed commu-
nities.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall apply to principal residences 
purchased after December 31, 2017. 
(b) USE OF HARDEST HIT FUND AMOUNTS FOR 
COMMERCIAL DEMOLITION.— 
(1) AUTHORITY.—Notwithstanding any provi-
sion of title I of the Emergency Economic Stabiliza-
tion Act of 2008 (12 U.S.C. 5211 et seq.), any regu-
lation, guidance, order, or other directive of the Sec-
retary of the Treasury, or any agreement (or amend-
ment thereto) entered into under the Hardest Hit 
Fund program of the Secretary under such title I, 
to the extent that any amounts of assistance that 
have been, or are, allocated for or provided to a 
State or State agency through the Hardest Hit 
Fund program may be used for demolishing and 
greening vacant and abandoned blighted residential 
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properties and related expenses, such amounts may 
also be used for demolishing and greening vacant 
and abandoned blighted commercial properties and 
related expenses. 
(2) REPORT.—Not later than the expiration of 
the 2-year period beginning on the date of the enact-
ment of this Act, the Secretary of the Treasury shall 
submit a report to the Congress regarding the im-
pacts of using assistance provided under the Hard-
est Hit Fund program pursuant to the authority 
provided under paragraph (1) and the effectiveness 
of such use. 
Subtitle B—Retail Redlining and 
Food Deserts 
SEC. 221. ECONOMIC GROWTH, RETENTION, AND RECRUIT-
MENT OF COMMERCIAL INVESTMENT IN ECO-
NOMICALLY UNDERSERVED COMMUNITIES. 
The Small Business Investment Act of 1958 (15 
U.S.C. 661 et seq.) is amended by adding at the end the 
following new title: 
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‘‘TITLE 
VIII—ECONOMIC 
GROWTH, 
RETENTION, 
AND 
RECRUITMENT OF COMMER-
CIAL INVESTMENT IN ECO-
NOMICALLY 
UNDERSERVED 
COMMUNITIES 
‘‘SEC. 811. PURPOSE. 
‘‘The purpose of this title is to assist with the eco-
nomic growth of economically underserved communities 
that have potential for strong Class 1 commercial invest-
ment, but that continue to have a difficult time recruiting 
Class 1 commercial investment. 
‘‘SEC. 812. GRANT PROGRAM. 
‘‘(a) AUTHORIZATION.—From amounts appropriated 
under section 814, the Administrator shall make grants 
on a competitive basis to an eligible community for— 
‘‘(1) the creation of a grant program or revolv-
ing loan fund program (or both) that helps develop 
financing packages for Class 1 commercial invest-
ment in the community; 
‘‘(2) lowering real estate property tax rates in 
the community; 
‘‘(3) conducting community-wide market anal-
ysis to help recruit and retain Class 1 commercial 
investment; 
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‘‘(4) creating employment training programs for 
Class 1 business customer service, sales, and mana-
gerial positions in the community; 
‘‘(5) retail marketing strategies to solicit new 
Class 1 commercial investment starts in the commu-
nity; 
‘‘(6) program allowances for activities to pro-
mote Class 1 commercial investment in the commu-
nity, such as the publication of marketing materials, 
development of economic development web pages, 
and educational outreach activities with retail trade 
associations; and 
‘‘(7) hiring business recruitment specialists to 
operate in the community. 
‘‘(b) ELIGIBILITY.—The Administrator may only 
make a grant under subsection (a) to a community whose 
demographics include— 
‘‘(1) a median per capita income no higher than 
$35,000; and 
‘‘(2) an identified lack of Class 1 commercial 
investment. 
‘‘(c) APPLICATION.—A community seeking a grant 
under subsection (a) shall submit an application at such 
time, in such form, and containing such information and 
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assurances as the Administrator may require, except that 
the application shall include— 
‘‘(1) a description of how the community, 
through the activities the community proposes to 
carry out with the grant funds will recruit, retain 
and grow its economy through Class 1 commercial 
investment; and 
‘‘(2) a description of the difficulty the commu-
nity has faced recruiting, retaining and growing its 
economy through Class 1 commercial investment. 
‘‘(d) MATCHING FUNDS.— 
‘‘(1) IN GENERAL.—The Administrator may not 
make a grant to a community under subsection (a) 
unless the community agrees that, with respect to 
the costs to be incurred by the community in car-
rying out the activities for which the grant is award-
ed, the community will make available non-Federal 
contributions in an amount equal to not less than 10 
percent of the Federal funds provided under the 
grant. 
‘‘(2) SATISFYING MATCHING REQUIREMENTS.— 
The non-Federal contributions required under para-
graph (1) may be— 
‘‘(A) in cash or in-kind, including services, 
fairly evaluated; and 
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‘‘(B) from— 
‘‘(i) any private source; 
‘‘(ii) State or local governmental enti-
ty; or 
‘‘(iii) nonprofit source. 
‘‘(3) WAIVER.—The Administrator may waive 
or reduce the non-Federal contribution required by 
paragraph (1) if the community involved dem-
onstrates that the community cannot meet the con-
tribution requirement due to financial hardship. 
‘‘(e) LIMITATIONS.—Amounts appropriated pursuant 
to the authorization of appropriations in section 814 for 
a fiscal year shall be allocated as follows: 
‘‘(1) No more than 5 percent of such funds 
shall go to administrative costs; 
‘‘(2) 70 percent of such funds shall go toward 
activities described in paragraphs (1) through (4) of 
subsection (a), after taking into account administra-
tive costs under subparagraph (A); and 
‘‘(3) 30 percent of such funds shall go toward 
activities described in paragraphs (5) through (7) of 
subsection (a), after taking into account administra-
tive costs under subparagraph (A). 
‘‘SEC. 813. DEFINITIONS. 
‘‘In this title: 
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‘‘(1) 
COMMUNITY.—The 
term 
‘community’ 
means a governance structure that includes county, 
parish, city, village, township, district or borough. 
‘‘(2) CLASS 1 COMMERCIAL INVESTMENT.—The 
term ‘Class 1 commercial investment’ means retail 
grocery chains, food service retailers, restaurants 
and franchises, retail stores, cafes, shopping malls, 
and other shops. 
‘‘(3) ECONOMICALLY
UNDERSERVED
COMMU-
NITY.—The term ‘economically underserved commu-
nity’ means an area suffering from low income and 
resultant low purchasing power, limiting its ability 
to generate sufficient goods and services to be used 
in exchange with other areas to meet current con-
sumption needs. 
‘‘SEC. 814. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There is authorized to be appropriated to the Ad-
ministrator to make grants under section 812(a) 
$40,000,000 for each of fiscal years 2018 through 2024.’’. 
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SEC. 222. PRODUCER DISCRETION TO PLANT ADDITIONAL 
FRUITS AND VEGETABLES ON BASE ACRES 
TO ALLEVIATE FOOD DESERTS WITHOUT A 
RESULTING REDUCTION IN PAYMENT ACRES. 
Section 1114(e) of the Agricultural Act of 2014 (7 
U.S.C. 9014(e)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) PRODUCER DISCRETION TO PLANT ADDI-
TIONAL
FRUITS
AND
VEGETABLES
TO
ALLEVIATE 
FOOD DESERTS.— 
‘‘(A) ADDITIONAL PLANTING AUTHORITY; 
PURPOSE.—The percentages specified in para-
graphs (2) and (3) are increased by an addi-
tional five percent of base acres, to 20 percent 
and 40 percent respectively, if the crops re-
ferred to in paragraph (1) grown on the addi-
tional base acres are grown solely for sale or 
donation, directly or indirectly by the producer 
and with or without processing, in a food 
desert. 
‘‘(B) FOOD
DESERT
DEFINED.—In this 
paragraph, the term ‘food desert’ means a cen-
sus tract that, as determined by the Sec-
retary— 
‘‘(i) has a poverty rate of 20 percent 
or greater; and 
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‘‘(ii) provides difficult access to a re-
tail outlet that provides a wide-variety of 
fruits and vegetables.’’. 
Subtitle C—Digital Infrastructure 
SEC. 231. GAO REPORT ON FEDERAL EFFORTS TO EXPAND 
BROADBAND SERVICE. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall submit to Congress a report 
on the efficiency and effectiveness of efforts by Federal 
agencies to expand access to broadband service, including 
through the programs described in subsection (c). 
(b) INCLUDED MATTERS.—The report required by 
subsection (a) shall include— 
(1) for each program covered by the report and 
over a period of time for such program considered 
appropriate by the Comptroller General, an analysis 
of the number of subscribers that have gained ac-
cess, through or as a result of such program, to 
broadband service that has the capacity to transmit 
data to enable subscribers to originate and receive 
high-quality voice, data, graphics, and video; and 
(2) an analysis of implementation by Federal 
agencies of the recommendations of the Broadband 
Opportunity Council, established by the Presidential 
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Memorandum entitled ‘‘Expanding Broadband De-
ployment and Adoption by Addressing Regulatory 
Barriers and Encouraging Investment and Train-
ing’’ and dated March 23, 2015. 
(c) INCLUDED PROGRAMS.—The programs described 
in this subsection are the following: 
(1) Federal universal service support mecha-
nisms established under section 254 of the Commu-
nications Act of 1934 (47 U.S.C. 254). 
(2) The Broadband Technology Opportunities 
Program established under section 6001 of the 
American Recovery and Reinvestment Act of 2009 
(47 U.S.C. 1305). 
(3) Rural broadband loans under section 601 of 
the Rural Electrification Act of 1936 (7 U.S.C. 
950bb). 
(4) Telecommunications infrastructure loans 
under section 201 of the Rural Electrification Act of 
1936 (7 U.S.C. 922). 
(5) Community Connect grants under the last 
proviso under the heading ‘‘Distance Learning, Tele-
medicine, and Broadband Program’’ in title III of 
the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropria-
tions Act, 2004. 
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(6) Distance Learning and Telemedicine grants 
under chapter 1 of subtitle D of title XXIII of the 
Food, Agriculture, Conservation, and Trade Act of 
1990. 
(d) FEDERAL AGENCY DEFINED.—In this section, 
the term ‘‘Federal agency’’ has the meaning given the 
term ‘‘agency’’ in section 551 of title 5, United States 
Code. 
Subtitle D—Direct Lending 
SEC. 241. DIRECT LOANS TO SMALL BUSINESS CONCERNS. 
(a) IN GENERAL.—From amounts appropriated pur-
suant to subsection (e), the Administrator of the Small 
Business Administration shall establish a program to 
make direct loans to small business concerns (as defined 
under section 3 of the Small Business Act (15 U.S.C. 
632)). 
(b) AMOUNT.—Loans made under this section shall 
be in an amount not greater than the lesser of— 
(1) 5 percent of the annual revenue of the small 
business concern requesting the loan; or 
(2) $250,000. 
(c) INTEREST RATE.—The interest rate on a loan 
made under this section shall be equal to the discount win-
dow primary credit interest rate most recently published 
on the Federal Reserve Statistical Release on selected in-
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terest rates (daily or weekly), commonly referred to as the 
H.15 release. 
(d) REPORT.—The Administrator of the Small Busi-
ness Administration shall submit a report to Congress on 
the implementation and results of the program established 
under this section. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $25,000,000 for each 
of fiscal years 2018 to 2022. 
TITLE III—NEW ECONOMY AND 
INNOVATION INVESTMENT 
SEC. 301. COMMISSION ON INNOVATION. 
(a) COMPOSITION OF COMMISSION.—There is estab-
lished in the Office of Management and Budget, a com-
mission, to be known as the Commission on Innovation 
(hereinafter in this section referred to as the commission), 
which shall be composed of the following members: 
(1) The Director of the Office of Management 
and Budget, or his or her designee, who shall serve 
as the chair of the Commission. 
(2) Five individuals from the private sector, to 
be appointed by the Director of the Office of Man-
agement and Budget. 
(3) A representative appointed by the head of 
each of the following: 
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(A) The National Institute of Standards 
and Technology. 
(B) The National Science Foundation. 
(C) The Federal Communications Commis-
sion. 
(D) The Department of Commerce. 
(E) The Department of the Treasury. 
(F) The General Service Administration. 
(b) DUTIES OF COMMISSION.—The commission shall 
study new and developing technologies, and shall make 
recommendations to each Federal agency on how the agen-
cy should take into consideration the existence, possible 
uses, development, and potential effect that such tech-
nologies may have on the agency’s carrying out of its stat-
utory duties. The commission shall submit a report to 
Congress not later than 1 year after the effective date of 
enactment of this Act and annually thereafter on the ac-
tivities of the commission during the 12 months imme-
diately preceding the date of the report, including sum-
maries of all recommendations made to agencies. 
(c) APPLICATION OF FEDERAL ADVISORY COMMIS-
SION ACT.—The provisions of the Federal Advisory Com-
mittee Act shall apply to the commission. 
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SEC. 302. PILOT PROGRAM TO FUND LOCAL INCUBATORS. 
(a) ESTABLISHMENT.—The Secretary of Commerce 
shall establish a competitive program to make grants to 
States and political subdivisions of States to partner with 
local incubators in order to provide start-ups with work-
space and other resources for use in developing their busi-
nesses. 
(b) ELIGIBILITY.—The Secretary may only award a 
grant under this section to a State or political subdivision 
of a State that submits an application at such time, in 
such form, and with such information and assurances as 
the Secretary may require, including an identification of 
one or more incubators with which the State or political 
subdivision will partner in implementing the grant. 
(c) LIMITATIONS.— 
(1) ONE GRANT PER STATE OR POLITICAL SUB-
DIVISION.—A State or political subdivision of a 
State may not receive more than one grant under 
this section. For purposes of the preceding sentence, 
a grant received by a State shall not be considered 
to be received by a political subdivision of the State, 
and a grant received by a political subdivision of a 
State shall not be considered to be received by the 
State. 
(2) AMOUNT
OF
GRANT.—A grant awarded 
under this section may not exceed $500,000. 
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(d) USE OF FUNDS.— 
(1) IN GENERAL.—A State or political subdivi-
sion of a State that receives a grant under this sec-
tion shall use grant funds to partner with one or 
more incubators located within the territory of such 
State or political subdivision in order to provide 
start-ups with workspace and other resources for use 
in developing their businesses. The partnership may 
take such form as the Secretary considers appro-
priate, including one or more subgrants from the 
State or political subdivision to the incubator or in-
cubators. 
(2) SPECIFIC
EXPENSES
INCLUDED.—Grant 
funds may be used for any expense incurred in order 
to provide start-ups with workspace and other re-
sources for use in developing their businesses, in-
cluding— 
(A) purchase or rental of land; 
(B) modification of buildings; 
(C) charges for utility services or broad-
band service; 
(D) fees of consultants for the provision of 
technical or professional assistance; 
(E) costs of promoting the incubator or in-
cubators; and 
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