‘‘(2) COMMERCIAL
REVITALIZATION
CREDIT
AMOUNT FOR AGENCIES.—
‘‘(A) IN GENERAL.—The aggregate com-
mercial revitalization credit amount which a
commercial revitalization credit agency may al-
locate for any calendar year is the amount of
the State commercial revitalization credit ceil-
ing determined under this paragraph for such
calendar year for such agency.
‘‘(B) STATE COMMERCIAL REVITALIZATION
CREDIT CEILING.—
‘‘(i) IN
GENERAL.—The State com-
mercial revitalization credit ceiling applica-
ble to any State for any calendar year is
$2,000,000 for each empowerment zone
and enterprise community in the State des-
ignated under subchapter U.
‘‘(ii) SPECIAL RULE WHERE ZONE OR
COMMUNITY
LOCATED
IN
MORE
THAN
STATE.—If an empowerment zone or enter-
prise community is located in more than 1
State, a State’s share of the amount speci-
fied in clause (i) with respect to such zone
or community shall be an amount that
bears the same ratio to $2,000,000 as the
population in the State bears to the popu-
lation in all States in which such zone or
community is located.
‘‘(iii) OTHER SPECIAL RULES.—Rules
similar to the rules of subparagraphs (D),
(E), (F), and (G) of section 42(h)(3) shall
apply for purposes of this subsection.
‘‘(C) COMMERCIAL REVITALIZATION CRED-
IT AGENCY.—For purposes of this section, the
term ‘commercial revitalization credit agency’
means any agency authorized by a State to
carry out this section.
‘‘(f) RESPONSIBILITIES OF COMMERCIAL REVITAL-
IZATION CREDIT AGENCIES.—
‘‘(1) PLANS FOR ALLOCATION.—Notwithstand-
ing any other provision of this section, the commer-
cial revitalization credit dollar amount with respect
to any building shall be zero unless—
‘‘(A) such amount was allocated pursuant
to a qualified allocation plan of the commercial
revitalization credit agency which is approved
by the governmental unit (in accordance with
rules similar to the rules of section 147(f)(2)
(other than subparagraph (B)(ii) thereof)) of
which such agency is a part, and
‘‘(B) such agency notifies the chief execu-
tive officer (or its equivalent) of the local juris-
diction within which the building is located of
such project and provides such individual a rea-
sonable opportunity to comment on the project.
‘‘(2) QUALIFIED ALLOCATION PLAN.—For pur-
poses of this subsection, the term ‘qualified alloca-
tion plan’ means any plan—
‘‘(A) which sets forth selection criteria to
be used to determine priorities of the commer-
cial revitalization credit agency which are ap-
propriate to local conditions,
‘‘(B) which considers—
‘‘(i) the degree to which a project con-
tributes to the implementation of a strate-
gic plan that is devised for an eligible com-
mercial revitalization area through a citi-
zen participation process,
‘‘(ii) the amount of any increase in
permanent, full-time employment by reason
of any project, and
‘‘(iii) the active involvement of resi-
dents and nonprofit groups within the eli-
gible commercial revitalization area, and
‘‘(C) which provides a procedure that the
agency (or its agent) will follow in monitoring
for compliance with this section.
‘‘(g) TERMINATION.—This section shall not apply to
any building placed in service after December 31, 2000.’’
(c) CONFORMING AMENDMENTS.—
(1) Section 39(d) of the Internal Revenue Code
of 1986 is amended by adding at the end the follow-
ing new paragraph:
‘‘(7) NO CARRYBACK OF SECTION 48A CREDIT
BEFORE
ENACTMENT.—No portion of the unused
business credit for any taxable year which is attrib-
utable to any commercial revitalization credit deter-
mined under section 48A may be carried back to a
taxable year ending before the date of the enactment
of section 48A.’’
(2) Subparagraph (B) of section 48(a)(2) of
such Code is amended by inserting ‘‘or commercial
revitalization’’ after ‘‘rehabilitation’’ each place it
appears in the text and heading thereof.
(3) Subparagraph (C) of section 49(a)(1) of
such Code is amended by striking ‘‘and’’ at the end
of clause (ii), by striking the period at the end of
clause (iii) and inserting ‘‘, and’’, and by adding at
the end the following new clause:
‘‘(iv) the basis of any qualified revital-
ization building attributable to qualified re-
vitalization expenditures.’’
(4) Paragraph (2) of section 50(a) of such Code
is amended by inserting ‘‘or 48A(d)(2)’’ after ‘‘sec-
tion 47(d)’’ each place it appears.
(5) Subparagraph (B) of section 50(a)(2) of
such Code is amended by adding at the end the fol-
lowing new sentence: ‘‘A similar rule shall apply for
purposes of section 48A.’’
(6) Paragraph (2) of section 50(b) of such Code
is amended by striking ‘‘and’’ at the end of subpara-
graph (C), by striking the period at the end of sub-
paragraph (D) and inserting ‘‘, and’’, and by adding
at the end the following new subparagraph:
‘‘(E) a qualified revitalization building to
the extent of the portion of the basis which is
attributable to qualified revitalization expendi-
tures.’’
(7) Subparagraph (C) of section 50(b)(4) of
such Code is amended by inserting ‘‘or commercial
revitalization’’ after ‘‘rehabilitated’’ each place it ap-
pears in the text or heading thereof.
(8) Subparagraph (C) of section 469(i)(3) is
amended—
(A) by inserting ‘‘or section 48A’’ after
‘‘section 42’’; and
(B) by striking ‘‘CREDIT’’ in the heading
and inserting ‘‘AND COMMERCIAL REVITALIZA-
TION CREDITS’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
December 31, 1995.
TITLE II—REGULATORY
FLEXIBILITY
SEC. 
201. 
DEFINITION 
OF 
SMALL 
ENTITIES 
IN
EMPOWERMENT 
ZONES 
AND 
ENTERPRISE
COMMUNITIES 
FOR 
ANALYSIS 
OF 
REGU-
LATORY FUNCTIONS.
Section 601 of title 5, United States Code, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(5); and
(2) by striking paragraph (6) and inserting the
following:
‘‘(6) the term ‘small entity’ means—
‘‘(A) a small business, small organization,
or small governmental jurisdiction defined in
paragraphs (3), (4), and (5) of this section; and
‘‘(B)(i) any enterprise zone business (as
defined by section 1394(b)(3) of the Internal
Revenue Code of 1986);
‘‘(ii) any unit of government that nomi-
nated an area which the appropriate Secretary
designates as an empowerment zone or enter-
prise community (within the meaning of section
1391 of the Internal Revenue Code of 1986)
that has a rule pertaining to the carrying out
of any project, activity, or undertaking within
such zone or community; and
‘‘(iii) any not-for-profit enterprise carrying
out a significant portion of its activities within
such a zone or community.
For purposes of subparagraph (B)(ii), the term ‘ap-
propriate Secretary’ has the meaning given such
term by section 1393(a)(1) of the Internal Revenue
Code of 1986.’’
SEC. 202. WAIVER OR MODIFICATION OF AGENCY RULES IN
EMPOWERMENT 
ZONES 
AND 
ENTERPRISE
COMMUNITIES.
(a) IN GENERAL.—Chapter 6 of title 5, United
States Code, is amended by adding after section 612 the
following new section:
‘‘§ 613. Waiver or modification of agency rules in
empowerment zones and enterprise com-
munities
‘‘(a) Upon the written request of any government
which nominated an area that the appropriate Secretary
has designated as an empowerment zone or enterprise
community under section 1391 of the Internal Revenue
Code of 1986, an agency is authorized, in order to further
the job creation, community development, or economic re-
vitalization objectives with respect to such zone or commu-
nity, to waive or modify all or part of any rule which such
agency has authority to promulgate, as such rule pertains
to the carrying out of projects, activities, or undertakings
within such zone or community.
‘‘(b) Nothing in this section shall authorize an agency
to waive or modify any rule adopted to carry out a statute
or Executive order which prohibits, or the purpose of
which is to protect persons against, discrimination on the
basis of race, color, religion, sex, familial status, national
origin, age, or handicap.
‘‘(c) A request under subsection (a) shall specify the
rule or rules to be waived or modified and the change pro-
posed, and shall briefly describe why the change would
promote the achievement of the job creation, community
development, or economic revitalization objectives of the
empowerment zone or enterprise community. If such a re-
quest is made to any agency other than the Department
of Housing and Urban Development or the Department
of Agriculture, the requesting government shall send a
copy of the request to the Secretary of Housing and Urban
Development or to the Secretary of Agriculture, whichever
is appropriate, at the time the request is made.
‘‘(d) Any petition for a modification or waiver shall—
(i) identify the requirements for which the
modification or waiver is sought;
‘‘(ii) identify the existing or proposed business
or type of business to which the modification or
waiver would pertain;
‘‘(iii) demonstrate that the public interest which
the proposed change would serve in furthering such
job creation, community development, or economic
revitalization outweighs the public interest which
continuation of the rule unchanged would serve;
‘‘(iv) demonstrate the extent to which the pro-
posed change is likely to further job creation, com-
munity development, or economic revitalization with-
in the empowerment zone or enterprise community
against the effect the change is likely to have on the
underlying purposes of applicable statutes in the ge-
ographic area which would be affected by the
change; and
‘‘(v) demonstrate that the waiver or modifica-
tion is necessary because the existing rule impedes
the implementation of an existing or proposed busi-
ness or type of business that furthers job creation,
community development, or economic revitalization.
‘‘(e) The agency may approve, in its discretion, a pe-
tition upon determining that the petition meets the above-
stated criteria. The agency shall not approve any request
to waive or modify a rule if that waiver or modification
would—
‘‘(1) violate a statutory requirement (including
any requirements of the Fair Labor Standards Act
of 1938 (52 Stat. 1060; 29 U.S.C. 201 et seq.)); or
‘‘(2) be likely to present a significant risk to the
public health, including environmental or occupa-
tional health or safety or of environmental pollution.
‘‘(f) A modified rule shall be enforceable as if it were
the issuance of an amendment to the rule being modified
or waived.
‘‘(g) If a request is disapproved, the agency shall in-
form all the requesting governments, and the appropriate
Secretary (as defined in section 1393(a)(1) of the Internal
Revenue Code of 1986), in writing of the reasons therefor
and shall, to the maximum extent possible, work with such
governments to develop an alternative, consistent with the
standards contained in subsection (d).
‘‘(h) No later than the date on which the petitioner
submits the petition to the agency, the petitioner shall in-
form the public of the submission of such petition (includ-
ing a brief description of the petition) through publication
of a notice in newspapers of general circulation in the area
in which the facility is located. The agency may authorize
or require petitioners to use additional or alternative
means of informing the public of the submission of such
petitions. If the agency proposes to grant the petitions,
the agency shall provide public notice and opportunity to
comment. The agency shall publish a notice in the Federal
Register stating any waiver or modification of a rule under
this section, the time such waiver or modification takes
effect and its duration, and the scope of the applicability
of such waiver or modification, consistent with the Admin-
istrative Procedure Act requirements.
‘‘(i) In the event that an agency proposes to amend
a rule for which a waiver or modification under this sec-
tion is in effect, the agency shall not change the waiver
or modification to impose additional requirements unless
it determines, consistent with standards contained in sub-
section (d), that such action is necessary. Such determina-
tions shall be published with the proposal to amend such
rule.
‘‘(j) No waiver or modification of a rule under this
section shall remain in effect with respect to an
empowerment zone or enterprise community after the zone
or community designation has expired or has been re-
voked.
‘‘(k) For purposes of this section, the term ‘rule’
means—
‘‘(1) any rule as defined in section 551(4) of
this title, or
‘‘(2) any rulemaking conducted on the record
after opportunity for an agency hearing pursuant to
sections 556 and 557 of this title.’’
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 6 of title 5, United States Code, is amended by insert-
ing after the item relating to section 612, the following
new item:
‘‘613. Waiver or modification of agency rules in empowerment zones and enter-
prise communities.’’
(c) CONFORMING AMENDMENTS.—
(1) Section 601(2) of such title 5 is amended
by inserting ‘‘(except for purposes of section 613)’’
before ‘‘means’’.
(2) Section 612 of such title 5 is amended—