‘‘(i) the excess (if any) of— 
‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) $125,000 ($225,000 in the 
case of a joint return), bears to 
‘‘(ii) $20,000. 
‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of subparagraph (A), the 
term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for 
the taxable year increased by any amount ex-
cluded from gross income under section 911, 
931, or 933. 
‘‘(3) 
LIMITATION
BASED
ON
PURCHASE 
PRICE.—No credit shall be allowed under subsection 
(a) for the purchase of any residence if the purchase 
price of such residence exceeds $800,000. 
‘‘(4) AGE LIMITATION.—No credit shall be al-
lowed under subsection (a) with respect to the pur-
chase of any residence unless the taxpayer has at-
tained age 18 as of the date of such purchase. In 
the case of any taxpayer who is married (within the 
meaning of section 7703), the taxpayer shall be 
treated as meeting the age requirement of the pre-
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
ceding sentence if the taxpayer or the taxpayer’s 
spouse meets such age requirement. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) 
FIRST-TIME
HOMEBUYER.—The 
term 
‘first-time homebuyer’ means any individual if such 
individual (and if married, such individual’s spouse) 
had no present ownership interest in a principal resi-
dence during the 3-year period ending on the date 
of the purchase of the principal residence to which 
this section applies. 
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used 
in section 121. 
‘‘(3) 
ECONOMICALLY
DISTRESSED
COMMU-
NITY.— 
‘‘(A) IN
GENERAL.—The term ‘economi-
cally distressed community’ means any area 
identified as an economically distressed commu-
nity for purposes of this section by the Sec-
retary of Housing and Urban Development. 
‘‘(B) FACTORS
TO
BE
TAKEN
INTO
AC-
COUNT.—For purposes of identifying areas as 
economically distressed communities for pur-
poses of this section, the Secretary of Housing 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
and Urban Development shall take into account 
the following: 
‘‘(i) Percent of the population in such 
area which has attained age 25 and is 
without a high school degree. 
‘‘(ii) Percent of habitable housing in 
such area that is unoccupied, excluding 
properties that are for seasonal, rec-
reational, or occasional use. 
‘‘(iii) Percent of the population in 
such area which has attained age 16 and 
is not currently employed. 
‘‘(iv) Percent of population in such 
area which is living under the poverty line. 
‘‘(v) Ratio of such area’s median in-
come to the median income of the State in 
which such area is located. 
‘‘(vi) Percent change in the number of 
employed individuals in such area in 2013 
compared to 2010. 
‘‘(vii) Percent change in the number 
of business establishments in such areas in 
2013 compared to 2010. 
‘‘(viii) Such other factors as such Sec-
retary determines appropriate. 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘(4) PURCHASE.— 
‘‘(A) IN GENERAL.—The term ‘purchase’ 
means any acquisition, but only if— 
‘‘(i) the property is not acquired from 
a person related to the person acquiring 
such property (or, if married, such individ-
ual’s spouse), and 
‘‘(ii) the basis of the property in the 
hands of the person acquiring such prop-
erty is not determined— 
‘‘(I) in whole or in part by ref-
erence to the adjusted basis of such 
property in the hands of the person 
from whom acquired, or 
‘‘(II) under section 1014(a) (re-
lating to property acquired from a de-
cedent). 
‘‘(B) CONSTRUCTION.—A residence which 
is constructed by the taxpayer shall be treated 
as purchased by the taxpayer on the date the 
taxpayer first occupies such residence. 
‘‘(5) PURCHASE
PRICE.—The term ‘purchase 
price’ means the adjusted basis of the principal resi-
dence on the date such residence is purchased. 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘(6) RELATED
PERSONS.—A person shall be 
treated as related to another person if the relation-
ship between such persons would result in the dis-
allowance of losses under section 267 or 707(b) (but, 
in applying section 267(b) and (c) for purposes of 
this section, paragraph (4) of section 267(c) shall be 
treated as providing that the family of an individual 
shall include only his spouse, ancestors, and lineal 
descendants). 
‘‘(7) EXCEPTION
FOR
LONG-TIME
RESIDENTS 
OF SAME PRINCIPAL RESIDENCE.—In the case of an 
individual (and, if married, such individual’s spouse) 
who has owned and used the same residence as such 
individual’s principal residence for any 5-consecu-
tive-year period during the 8-year period ending on 
the date of the purchase of a subsequent principal 
residence, such individual shall be treated as a first- 
time homebuyer for purposes of this section with re-
spect to the purchase of such subsequent residence. 
‘‘(d) EXCEPTIONS.—No credit under subsection (a) 
shall be allowed to any taxpayer for any taxable year with 
respect to the purchase of a residence if— 
‘‘(1) the taxpayer is a nonresident alien, 
‘‘(2) the taxpayer disposes of such residence (or 
such residence ceases to be the principal residence of 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
the taxpayer (and, if married, the taxpayer’s 
spouse)) before the close of such taxable year, 
‘‘(3) a deduction under section 151 with respect 
to such taxpayer is allowable to another taxpayer for 
such taxable year, or 
‘‘(4) the taxpayer fails to attach to the return 
of tax for such taxable year a properly executed copy 
of the settlement statement used to complete such 
purchase. 
‘‘(e) REPORTING.—If the Secretary requires informa-
tion reporting under section 6045 by a person described 
in subsection (e)(2) thereof to verify the eligibility of tax-
payers for the credit allowable by this section, the excep-
tion provided by section 6045(e) shall not apply. 
‘‘(f) RECAPTURE OF CREDIT.— 
‘‘(1) IN GENERAL.—If a taxpayer disposes of 
the principal residence with respect to which a credit 
was allowed under subsection (a) (or such residence 
ceases to be the principal residence of the taxpayer 
(and, if married, the taxpayer’s spouse)) before the 
end of the 5-year period beginning on the date of the 
purchase of such residence by the taxpayer, the tax 
imposed by this chapter for the taxable year of such 
disposition or cessation shall be increased by the 
amount of the credit so allowed. 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘(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.—Paragraph 
(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. 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
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 tax 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 
VerDate Sep 11 2014 
20:31 Sep 28, 2017
Jkt 069200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
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: 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘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; 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘(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 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
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 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘(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: 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
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 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
‘‘(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 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
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. 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
(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-
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS
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: 
VerDate Sep 11 2014 
22:40 Sep 27, 2017
Jkt 069200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H3839.IH
H3839
srobinson on DSKBC5CHB2PROD with BILLS