(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 stra-
tegic plan that is devised for an eligible
commercial revitalization area through a
citizen 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, 2005.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 39(d) of the Internal Revenue Code
of 1986 is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) 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 December 31, 1999.’’
(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) of
such Code 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’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
December 31, 1999.
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