I 
112TH CONGRESS 
2D SESSION 
H. R. 3780 
To amend the Internal Revenue Code of 1986 to allow an ordinary and 
necessary business expense deduction for contributions to regional infra-
structure improvement zones, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 18, 2012 
Mr. DAVIS of Kentucky introduced the following bill; which was referred to 
the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow an 
ordinary and necessary business expense deduction for 
contributions to regional infrastructure improvement 
zones, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ORDINARY AND NECESSARY BUSINESS EX-
PENSE DEDUCTION FOR CONTRIBUTIONS TO 
REGIONAL INFRASTRUCTURE IMPROVEMENT 
ZONES. 
(a) IN GENERAL.—Section 162 of the Internal Rev-
enue Code of 1986 (relating to trade or business expenses) 
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is amended by redesignating subsection (p) as subsection 
(q) and by inserting after subsection (o) the following new 
subsection: 
‘‘(p) CONTRIBUTIONS
TO REGIONAL INFRASTRUC-
TURE IMPROVEMENT ZONES.—For purposes of this sub-
title— 
‘‘(1) IN GENERAL.—At the election of the tax-
payer, any qualified regional infrastructure improve-
ment zone contribution made by such taxpayer in 
any taxable year— 
‘‘(A) shall be treated as an ordinary and 
necessary expense paid or incurred during such 
taxable year in carrying on a trade or business, 
‘‘(B) shall not be treated as chargeable to 
capital account, and 
‘‘(C) shall not be treated as a charitable 
contribution for purposes of section 170. 
‘‘(2) QUALIFIED
REGIONAL
INFRASTRUCTURE 
IMPROVEMENT ZONE CONTRIBUTION.—For purposes 
of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
regional infrastructure improvement zone con-
tribution’ means any contribution to a qualified 
regional infrastructure improvement zone— 
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‘‘(i) by a taxpayer using real property 
(whether owned or leased) within such 
zone, 
‘‘(ii) used for public infrastructure lo-
cated within such zone— 
‘‘(I) which is provided for in the 
long-range infrastructure plans for 
such zone approved by the multi-juris-
dictional regional planning organiza-
tion which created and designated 
such zone, or 
‘‘(II) which is consistent with any 
other long-range plans and is certified 
by the chief executive of, and the local 
governments represented by, such or-
ganization as appropriate and clearly 
beneficial to the public. 
‘‘(B) QUALIFIED REGIONAL INFRASTRUC-
TURE IMPROVEMENT ZONE.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied regional infrastructure improvement 
zone’ means any zone— 
‘‘(I) created and designated by a 
multi-jurisdictional regional planning 
organization empowered under Fed-
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eral, State or local laws to perform 
such planning, through the filing of a 
certificate of designation with the Sec-
retary or the Secretary’s designee and 
with the Attorney General of each 
State in which the proposed zone is to 
be located, 
‘‘(II) located only within the 
boundaries of the political subdivisions 
represented by such organization, and 
‘‘(III) administered by an incor-
porated or unincorporated association 
designated by the such organization, 
the members of which are businesses 
and individuals— 
‘‘(aa) located within the pro-
posed zone or political subdivi-
sions the boundaries of which in-
clude all or any portion of the 
proposed zone, and 
‘‘(bb) who voluntarily join 
such association. 
‘‘(ii) ZONE
ESTABLISHMENT
IN
AB-
SENCE
OF
MULTI-JURISDICTIONAL
RE-
GIONAL PLANNING ORGANIZATION.—In the 
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absence of a multi-jurisdictional regional 
planning organization, such term means 
any zone created and designated by any 
local government or consortia of local gov-
ernments certifying to the Secretary or the 
Secretary’s designee that such zone meets 
the criteria to be a qualified regional infra-
structure improvement zone in that the 
projects within the zone are— 
‘‘(I) under the auspices of a local 
governmental agency, 
‘‘(II) pursuant to a plan of that 
agency, 
‘‘(III) managed by the agency’s 
fiscal agent to ensure the implementa-
tion complies with all Federal, State 
and local laws, and 
‘‘(IV) subject to public review 
through at least 2 public hearings. 
‘‘(C) MULTI-JURISDICTIONAL
REGIONAL 
PLANNING ORGANIZATION.— 
‘‘(i) IN GENERAL.—The term ‘multi- 
jurisdictional regional planning organiza-
tion’ means any regional planning organi-
zation which— 
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planning functions, and provides pro-
fessional technical assistance to the 
public and the local governments to 
which it is accountable, 
‘‘(III) any organization of local 
elected officials and representatives 
that cooperates with the State within 
which it is located to plan networks, 
and advise officials on planning, in 
rural areas that are not represented 
by a metropolitan planning organiza-
tion and have a population of at least 
5,000, 
‘‘(IV) any economic development 
district (as defined in section 3 of the 
Public Works and Economic Develop-
ment Act of 1965 (42 U.S.C. 3122), 
and 
‘‘(V) any local development dis-
trict (as defined in section 15101(2) 
of title 40, United States Code). 
‘‘(D) INFRASTRUCTURE.—The term ‘infra-
structure’ means publicly owned and operated 
assets, including— 
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‘‘(i) any highways, roadway, bridges, 
public transit systems, or intermodal trans-
portation, 
‘‘(ii) any wastewater, drinking water, 
or storm water treatment facility (or facil-
ity related to such a facility), and 
‘‘(iii) any green infrastructure relating 
to any facility described in clause (ii). 
‘‘(3) TERMINATION.—No election with respect 
to any contribution may be made under this sub-
section for any taxable year beginning more than 5 
years after the date of the enactment of this sub-
section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 162(b) of the Internal Revenue 
Code is amended by striking ‘‘No deduction’’ and in-
serting ‘‘Except as provided under subsection (p), no 
deduction’’. 
(2) Section 263(a)(1) of such Code is amended 
by striking ‘‘or’’ at the end of subparagraph (K), by 
striking the period at the end of subparagraph (L) 
and inserting ‘‘, or’’, and by adding at the end the 
following new subparagraph: 
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‘‘(M) expenditures for which a deduction is 
allowed by reason of an election under section 
162(p).’’. 
(3) Section 170(c) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(6) 
Except 
as 
provided 
in 
section 
162(p)(1)(C), a qualified regional infrastructure im-
provement zone (as defined in subsection 162(p)) for 
a purpose described in section 162(p)(2)(A)(ii).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after the 
date of the enactment of this Act. 
Æ 
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