I 
115TH CONGRESS 
1ST SESSION H. R. 2931 
To expand certain empowerment zone provisions to communities receiving 
a Worker Adjustment and Retraining Notification Act notice, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2017 
Mr. CARTWRIGHT introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Fi-
nancial Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To expand certain empowerment zone provisions to commu-
nities receiving a Worker Adjustment and Retraining 
Notification Act notice, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Community Economic 
Assistance Act of 2017’’. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
SEC. 2. EXTENSION OF EMPOWERMENT ZONE PROVISIONS 
TO CERTAIN COMMUNITIES. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
chapter U the following new subchapter: 
‘‘Subchapter U–1—Community Economic 
Assistance Zones 
‘‘Sec. 1397G. Designation of community economic assistance zones. 
‘‘Sec. 1397H. Incentives for community economic assistance zones. 
‘‘SEC. 1397G. DESIGNATION OF COMMUNITY ECONOMIC AS-
SISTANCE ZONES. 
‘‘(a) IN GENERAL.—For purposes of this title, the 
term ‘community economic assistance zone’ means any 
area— 
‘‘(1) which is nominated by the governor or 
governors of the State or States in which it is lo-
cated for designation as a community economic as-
sistance zone (hereafter in this section referred to as 
a ‘nominated area’), and 
‘‘(2) which the Secretary designates as a com-
munity economic assistance zone, after consultation 
with— 
‘‘(A) the Secretary of Labor, and 
‘‘(B) in the case of an area on an Indian 
reservation, the Secretary of the Interior. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(b) DESIGNATION BASED ON LOSS OF EMPLOY-
MENT, ETC.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, a nominated area designated as 
a community economic assistance zone under this 
subsection shall be— 
‘‘(A) a nominated area— 
‘‘(i) where— 
‘‘(I) a facility is located with re-
spect to which a notice was issued 
after December 31, 2014, under sec-
tion 3 of the Worker Adjustment and 
Retraining 
Notification 
Act 
(29 
U.S.C. 2102) with respect to 250 or 
more employees, or 
‘‘(II) where 100 or more employ-
ees with respect to which such a no-
tice was issued reside, 
‘‘(ii) where the number of employ-
ees— 
‘‘(I) with respect to which the no-
tice was issued (in the case of an area 
described in clause (i)(I)), or 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(II) the number of employees 
who are described in clause (i)(II) (in 
any other case), 
is equal to or greater than 0.5 percent of 
the employed population of the metropoli-
tan statistical area (as determined by the 
Secretary), and 
‘‘(iii) where a loss of employment sat-
isfying the requirements applicable to such 
notice under clauses (i) and (ii) actually 
occurs, 
‘‘(B) a nominated area which the Sec-
retary, in consultation with the Secretaries of 
Labor and Commerce, determines has been or 
will be seriously impacted by changes in trade 
through loss of employment (directly or indi-
rectly), taking into account the number of indi-
viduals certified as eligible to apply for trade 
adjustment assistance under chapter 2 of title 
II of the Trade Act of 1974 or who are receiv-
ing benefits under such chapter, or 
‘‘(C) a nominated area which satisfies not 
less than two of the conditions described in 
paragraph (2). 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(2) CONDITIONS DESCRIBED.—The conditions 
described in this subparagraph are the following: 
‘‘(A) The area is designated by the gov-
ernor of the State as an energy-transitioning 
community. 
‘‘(B) The area, at the time of nomina-
tion— 
‘‘(i) has a composite index value, as 
determined by the Appalachian Regional 
Commission, among the lowest 10 percent 
of counties in the State, 
‘‘(ii) is a low-income community (as 
defined in section 45D(e)), or 
‘‘(iii) has an unemployment rate 
which is 8 percent or greater, or which is 
6.5 percent or greater and is equal to or 
greater than 125 percent of the average 
unemployment rate of the State. 
‘‘(C) Tax revenues collected in the area de-
creased, not due to any changes in tax law or 
policy, by at least— 
‘‘(i) 7 percent as compared to the pre-
ceding year, or 
‘‘(ii) an average of 10 percent over 
the preceding 3 years. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(D) The number of business establish-
ments in the area decreased significantly during 
the preceding year or on average during the 
preceding 3 years, as determined by the Sec-
retary. 
‘‘(E) The area is among the 10 percent of 
counties nationally which have experienced the 
largest increases in unemployment and the larg-
est decreases in manufacturing over the pre-
ceding 3 years, as determined by the Secretary. 
‘‘(3) ENERGY-TRANSITIONING COMMUNITIES.— 
For purposes of paragraph (2)(A)— 
‘‘(A) IN
GENERAL.—The term ‘energy- 
transitioning communities’ means those nomi-
nated areas where the Secretary of Labor, in 
consultation with the Secretary of Energy, de-
termines there is a high concentration of jobs in 
industries or at facilities directly affected by an 
energy source transition. 
‘‘(B) ENERGY SOURCE TRANSITION.—For 
purposes of subparagraph (A), the term ‘energy 
source transition’ means— 
‘‘(i) a situation in which the occur-
rence of a shift from the use of a type of 
fossil fuel to use of other sources of energy 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
is followed by the closing of a facility, or 
layoff of employees at a facility, that 
mines, extracts, produces, processes, or 
utilizes fossil fuels to generate electricity, 
and 
‘‘(ii) another situation as determined 
by the Secretary of Labor, in consultation 
with the Secretary of Energy, which is in-
dicative of new demands or burdens on af-
fected employees or employees in affected 
industries due to a significant change in 
the source of energy used by the facility or 
industry involved. 
‘‘(4) ELIGIBILITY
CRITERIA.—A nominated 
area shall be eligible for designation under this sub-
section only if it meets the requirements of section 
1392(a)(1) and subparagraphs (A), (B), and (C) of 
section 1392(a)(3). 
‘‘(c) PERIOD FOR WHICH DESIGNATION IS IN EF-
FECT.—Any designation of an area as a community eco-
nomic assistance zone shall remain in effect during the 
period beginning on January 1, 2017, and ending on the 
date that is 5 years after the latest designation of such 
area as a community economic assistance zone. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(d) LIMITATION
RELATING
TO
STATE
POPU-
LATION.—An area shall not be designated as a community 
economic assistance zone under subsection (b) if such des-
ignation would result in more than 10 percent of the popu-
lation of the State residing in such a zone (determined 
by aggregating all such zones within the State). 
‘‘(e) COORDINATION WITH TREATMENT
OF RE-
NEWAL COMMUNITIES, EMPOWERMENT ZONES, AND EN-
TERPRISE COMMUNITIES.—For purposes of this title, the 
designation under any other provision of this title of any 
area as a renewal community, empowerment zone, or en-
terprise community shall cease to be in effect as of the 
date that the designation of any portion of such area as 
a community economic assistance zone takes effect. 
‘‘SEC. 1397H. INCENTIVES FOR COMMUNITY ECONOMIC AS-
SISTANCE ZONES. 
‘‘(a) EMPLOYMENT CREDIT.— 
‘‘(1) IN GENERAL.—Section 1396 shall be ap-
plied— 
‘‘(A) by treating any reference to an em-
powerment zone as a reference to a community 
economic assistance zone, 
‘‘(B) by treating any reference to an em-
ployer as a reference to a qualified employer, 
and 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(C) 
without 
respect 
to 
subsection 
(d)(1)(B) thereof. 
‘‘(2) QUALIFIED ZONE EMPLOYER.—For pur-
poses of paragraph (1), with respect to a taxable 
year, the term ‘qualified employer’ means any em-
ployer other than an excepted taxpayer described in 
subsection (g). 
‘‘(b) INCREASE
IN EXPENSING UNDER SECTION 
179.— 
‘‘(1) IN GENERAL.—Section 1397A shall be ap-
plied— 
‘‘(A) by treating any reference to an em-
powerment zone as a reference to a community 
economic assistance zone, 
‘‘(B) by treating any reference to an enter-
prise zone business as a reference to a commu-
nity economic assistance zone business, 
‘‘(C) by treating any reference to qualified 
zone property as a reference to qualified com-
munity economic assistance zone property, and 
‘‘(D) by substituting ‘20 percent of such 
limitation’ for ‘$35,000’ in subsection (a)(1)(A) 
thereof. 
‘‘(2) COMMUNITY ECONOMIC ASSISTANCE ZONE 
BUSINESS.—For purposes of this subsection, the 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
term ‘community economic assistance zone business’ 
means— 
‘‘(A) any business entity, and 
‘‘(B) any proprietorship, 
other than an excepted taxpayer described in sub-
section (g), which would be a qualified business enti-
ty (as defined in section 1397C(b)) or a qualified 
proprietorship (as defined in section 1397C(c)) if 
section 1397C were applied by substituting ‘commu-
nity economic assistance zone’ for ‘empowerment 
zone’ each place it appears. 
‘‘(c) NONRECOGNITION OF GAIN ON ROLLOVER OF 
COMMUNITY
ECONOMIC
ASSISTANCE
ZONE
INVEST-
MENTS.— 
‘‘(1) IN GENERAL.—In the case of any sale of 
a qualified community economic assistance zone 
asset held by the taxpayer for more than 1 year and 
with respect to which such taxpayer elects the appli-
cation of this subsection, gain from such sale shall 
be recognized only to the extent that the amount re-
alized on such sale exceeds— 
‘‘(A) the cost of any qualified community 
economic assistance zone asset (with respect to 
the same zone as the asset sold) purchased by 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
the taxpayer during the 60-day period begin-
ning on the date of such sale, reduced by 
‘‘(B) any portion of such cost previously 
taken into account under this subsection. 
‘‘(2) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) QUALIFIED
COMMUNITY
ECONOMIC 
ASSISTANCE ZONE ASSET.—The term ‘qualified 
community economic assistance zone asset’ 
means any property which would be a qualified 
community 
asset 
(as 
defined 
in 
section 
1400F(b)) if in section 1400F(b)— 
‘‘(i) ‘after December 31, 2016’ were 
substituted for ‘after December 31, 2001, 
and before January 1, 2010’ each place it 
appears, 
‘‘(ii) ‘after December 31, 2016’ were 
substituted for ‘before January 1, 2010’ in 
paragraph (4)(B)(i) thereof, 
‘‘(iii) references to community eco-
nomic assistance zone businesses (as de-
fined in subsection (b)(2) of this section) 
were substituted for references to renewal 
community businesses, and 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(iv) references to community eco-
nomic assistance zones were substituted 
for references to renewal communities. 
‘‘(B) OTHER RULES.—The rules of para-
graphs (2), (3), (4), and (5) of section 
1397B(b) shall apply— 
‘‘(i) by treating any reference to an 
enterprise zone business as a reference to 
a community economic assistance zone 
business (as defined in subsection (b)(2)), 
‘‘(ii) by treating any reference to a 
qualified empowerment zone asset as a ref-
erence to a qualified community economic 
assistance zone asset, and 
‘‘(iii) by treating any reference to sub-
section (a) of section 1397B as a reference 
to paragraph (1) of this subsection. 
‘‘(3) EXCEPTED
TAXPAYERS.—Paragraph (1) 
shall not apply in the case of an excepted taxpayer 
described in subsection (g). 
‘‘(d) 3–YEAR
CARRYBACK
OF
NET
OPERATING 
LOSSES.— 
‘‘(1) IN GENERAL.—If a portion of any net op-
erating loss of a taxpayer for any taxable year is a 
qualified community economic assistance zone loss, 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
section 172(b)(1) shall be applied with respect to 
such portion— 
‘‘(A) by substituting ‘3 taxable years’ for 
‘2 taxable years’ in subparagraph (A)(i), and 
‘‘(B) by not taking such portion into ac-
count in determining any eligible loss of the 
taxpayer under subparagraph (E) thereof for 
the taxable year. 
‘‘(2) QUALIFIED
COMMUNITY
ECONOMIC
AS-
SISTANCE ZONE LOSS.—For purposes of paragraph 
(1), the term ‘qualified community economic assist-
ance zone loss’ means the portion of the net oper-
ating loss (as defined in section 172(c)) for the tax-
able year which is attributable to deductions arising 
from— 
‘‘(A) losses in a community economic as-
sistance zone, 
‘‘(B) expenses paid or incurred within a 
community economic assistance zone, and 
‘‘(C) expenses paid or incurred with re-
spect to property placed in service in a commu-
nity economic assistance zone, 
during either the taxable year in which the designa-
tion of such zone goes into effect under section 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
1397G or the immediately succeeding taxable year, 
whichever is elected by the taxpayer. 
‘‘(3) EXCEPTED
TAXPAYERS.—Paragraph (1) 
shall not apply in the case of an excepted taxpayer 
described in subsection (g). 
‘‘(e) CREDIT
TO HOLDERS
OF COMMUNITY ECO-
NOMIC SUPPORT BONDS.— 
‘‘(1) IN GENERAL.—With respect to a taxpayer 
holding a community economic support bond, such 
bond shall be treated in the same manner as a Gulf 
tax credit bond under section 1400N(l), applied— 
‘‘(A) by substituting ‘community economic 
support bond’ for ‘Gulf tax credit bond’ each 
place it appears in paragraphs (1), (2), (3), and 
(7) thereof, and 
‘‘(B) without regard to paragraphs (4) and 
(5) thereof. 
‘‘(2) COMMUNITY ECONOMIC SUPPORT BOND.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘community 
economic support bond’ means any bond issued 
as part of an issue if— 
‘‘(i) the bond is issued by a State in 
which a community economic assistance 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
area (as defined in section 45D(f)(3)(B)) 
is located, 
‘‘(ii) 95 percent or more of the pro-
ceeds of such issue are to be used in ac-
cordance with the priorities outlined in the 
community economic development plan ap-
proved under section 6 of the Community 
Economic Assistance Act of 2017 to imple-
ment the strategies and objectives under 
such plan described in section 6(3) of such 
Act, 
‘‘(iii) the Governor of such State des-
ignates such bond for purposes of this sub-
section, 
‘‘(iv) the bond is a general obligation 
of such State and is in registered form 
(within the meaning of section 149(a)), 
‘‘(v) the maturity of such bond does 
not exceed 15 years, and 
‘‘(vi) the bond is issued after the des-
ignation of such zone goes into effect 
under section 1397G, and before such des-
ignation ends under section 1397G(c). 
‘‘(B) AGGREGATE
LIMIT
ON
BOND
DES-
IGNATIONS.—The maximum aggregate face 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
amount of bonds which may be designated 
under this subsection by the Governor of a 
State shall not exceed $100,000,000 per com-
munity economic assistance area located in the 
State. 
‘‘(C) SPECIAL RULES RELATING TO ARBI-
TRAGE.—A bond which is part of an issue shall 
not be treated as a community economic sup-
port bond unless, with respect to the issue of 
which the bond is a part, the issuer satisfies the 
arbitrage requirements of section 148 with re-
spect to proceeds of the issue and any loans 
made with such proceeds. 
‘‘(3) EXCEPTED
TAXPAYERS.—Paragraph (1) 
shall not apply in the case of an excepted taxpayer 
described in subsection (g). 
‘‘(f) QUALIFIED COMMUNITY ECONOMIC ASSISTANCE 
ZONE PROPERTY.—For purposes of this section, the term 
‘qualified community economic assistance zone property’ 
means any property which would be qualified zone prop-
erty for purposes of section 1397D if such section were 
applied by substituting ‘community economic assistance 
zone’ for ‘empowerment zone’ each place it appears. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(g) TAXPAYERS EXCEPTED.—With respect to any 
community economic assistance zone, an excepted tax-
payer described in this subsection is— 
‘‘(1) an entity that operates a facility in such 
zone with respect to which a notice under section 3 
of the Worker Adjustment and Retraining Notifica-
tion Act (29 U.S.C. 2102) was issued, if such notice 
caused the region to be designated as such a zone, 
and 
‘‘(2) any entity that would be treated as a sin-
gle employer with such an entity under the rules of 
subsection (a) or (b) of section 52 or subsection (m) 
or (o) of section 414.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to 
subchapter U the following new item: 
‘‘SUBCHAPTER U–1—COMMUNITY ECONOMIC ASSISTANCE ZONES’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
SEC. 3. 15-YEAR DEPRECIATION FOR CERTAIN REBUILT 
AND RETROFITTED COMMUNITY ECONOMIC 
ASSISTANCE ZONE PROPERTY. 
(a) IN GENERAL.—Subparagraph (E) of section 
168(e)(3) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘and’’ at the end of clause (viii); 
(2) by striking the period at the end of clause 
(ix) and inserting ‘‘, and’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(x) any qualified rebuilt or retro-
fitted community economic assistance zone 
property.’’. 
(b) QUALIFIED REBUILT OR RETROFITTED COMMU-
NITY ECONOMIC ASSISTANCE ZONE PROPERTY.—Sub-
section (e) of section 168 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new paragraph: 
‘‘(9) QUALIFIED
REBUILT
OR
RETROFITTED 
COMMUNITY
ECONOMIC
ASSISTANCE
ZONE
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
rebuilt or retrofitted community economic as-
sistance zone property’ means property placed 
in service in a community economic assistance 
VerDate Sep 11 2014 
01:02 Jun 24, 2017
Jkt 069200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
zone by a qualified taxpayer during the period 
the designation of such zone is in effect under 
section 1397G which relates to the rebuilding or 
retrofitting of— 
‘‘(i) any qualified community eco-
nomic assistance zone property (as defined 
in section 1397H(f)), and 
‘‘(ii) any residential real property lo-
cated in a community economic assistance 
zone which is acquired by the taxpayer by 
purchase (as defined in section 179(d)(2)) 
during such period, 
if such property was unoccupied and had been 
deemed condemned, neglected, or derelict as of 
the time of acquisition by the taxpayer. 
‘‘(B) QUALIFIED
TAXPAYER.—For pur-
poses of this paragraph, the term ‘qualified tax-
payer’ means a taxpayer other than an excepted 
taxpayer (within the meaning of section 
1397H(g)).’’. 
SEC. 4. INCREASE IN START-UP EXPENDITURES FOR COM-
MUNITY ECONOMIC ASSISTANCE ZONE BUSI-
NESSES. 
Paragraph (3) of section 195(b) of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
‘‘(3) SPECIAL
RULE
FOR
COMMUNITY
ECO-
NOMIC ASSISTANCE ZONE BUSINESSES.—In the case 
of any start-up expenditures made within a commu-
nity economic assistance zone during the period the 
designation of such zone is in effect under section 
1397G— 
‘‘(A) such expenditures shall be treated 
separately from other start-up expenditures of 
the taxpayer for the taxable year, and 
‘‘(B) in determining the deduction under 
paragraph (1) with respect to such expenditures 
within such zone, paragraph (1)(A)(ii) shall be 
applied— 
‘‘(i) by substituting ‘$30,000’ for 
‘$5,000’, and 
‘‘(ii) by substituting ‘$120,000’ for 
‘$50,000’.’’. 
SEC. 5. INCREASE IN NEW MARKETS TAX CREDIT DESIGNA-
TION FOR COMMUNITY ECONOMIC ASSIST-
ANCE ZONES. 
Subsection (f) of section 45D of the Internal Revenue 
Code of 1986 is amended— 
(1) by striking ‘‘The limitation’’ in paragraph 
(2) and inserting ‘‘Except as provided in paragraph 
(3), the limitation’’; 
VerDate Sep 11 2014 
01:02 Jun 24, 2017
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
(2) by redesignating paragraph (3) as para-
graph (4); 
(3) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) ALLOCATION
OF
LIMITATION
FOR
CAL-
ENDAR YEARS AFTER 2016.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year described in paragraph (1)(G) be-
ginning after December 31, 2016, the limitation 
under paragraph (1) shall be increased by 
$500,000,000, and such increase shall be allo-
cated as provided in paragraph (2) among 
qualified community development entities lo-
cated in community economic assistance areas. 
‘‘(B) COMMUNITY ECONOMIC ASSISTANCE 
AREA.—For purposes of subparagraph (A), the 
term ‘community economic assistance area’ 
means an area which— 
‘‘(i) is a community economic assist-
ance zone, and 
‘‘(ii) has a community economic devel-
opment plan approved under section 6 of 
the Community Economic Assistance Act 
of 2017. 
VerDate Sep 11 2014 
01:02 Jun 24, 2017
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
SEC. 6. APPROVAL OF COMMUNITY ECONOMIC DEVELOP-
MENT PLANS. 
A community economic development plan for a region 
shall be considered approved under this section if each of 
the following criteria are satisfied: 
(1) The plan is submitted to the Secretary of 
the Treasury in such form, and containing such in-
formation, as the Secretary may require. 
(2) The plan contains a certification that the 
plan was developed and approved through a process 
that included participation from the following: 
(A) State, Indian tribal, and local govern-
ments and agencies or instrumentalities of 
State, Indian tribal, and local governments. 
(B) State planning boards, workforce in-
vestment boards, chambers of commerce, and 
economic development organizations, if relevant. 
(C) Local businesses. 
(D) Labor and health organizations. 
(E) Public school systems and institutions 
of higher education (as defined in section 101 
of the Higher Education Act of 1965 (20 
U.S.C. 1001)). 
(F) Religious and other community-based 
groups in the region, including those that pro-
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
vide assistance to the workers of the region and 
the families of the workers. 
(G) Other public community institutions, 
such as library and park systems. 
(H) Members of the public, including un-
employed or soon to be unemployed workers. 
(3) The Secretary determines that the plan— 
(A) ascertains the severity of an antici-
pated or existing economic dislocation of the re-
gion, including consideration of measures of un-
employment rates and employment opportuni-
ties; 
(B) assesses the capacity of the region to 
respond to such economic dislocation and the 
needs of the region, as the region undertakes 
economic advancement or adjustment, including 
with respect to— 
(i) the diversity of industries in the 
region; 
(ii) the skills of the labor force in the 
region; 
(iii) the condition of the labor market 
of the region; 
(iv) the availability of financial re-
sources in the region; 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
(v) the quality and availability of edu-
cational facilities, including 2-year institu-
tions of higher education and vocational in-
stitutions, that serve the region; and 
(vi) the infrastructure of the region; 
(C) includes a plan to use a local workforce 
and, when necessary, to train a local workforce; 
(D) addresses the need of the region to at-
tract investment, create jobs, increase wages, 
improve educational opportunities, and expand 
the availability of broadband Internet access; 
(E) 
leverages 
the 
region’s 
economic 
strengths and outlines targeted investments to 
develop competitive advantages to execute the 
objectives outlined, including a plan to utilize a 
local workforce and recently dislocated workers 
and, when necessary, train a local workforce; 
(F) is the result of collaboration across a 
wide range of stakeholders; 
(G) outlines a strategy which connects the 
region to drivers of regional economic growth; 
(H) proposes a strategy for focusing on in-
creased access to high quality, affordable, stable 
housing and improved public safety; and 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
(I) discusses the anticipated benefits exe-
cution of the plan will deliver for community in-
tegration, safety, employment outcomes, and 
home weatherization and energy efficiency, and 
the expected contribution of the project to the 
inclusion of individuals with disabilities. 
SEC. 7. GRANTS TO CARRY OUT ASSESSMENTS REQUIRED 
FOR DEVELOPMENT OF COMMUNITY ECO-
NOMIC DEVELOPMENT PLANS. 
(a) IN GENERAL.—The Secretary of the Treasury 
may award a grant to an eligible entity involved in the 
development of a community economic development plan 
described in section 6 to carry out such assessments and 
other activities as may be required for the plan to meet 
the requirements of section 6(3). 
(b) ELIGIBLE ENTITIES.—For purposes of this sec-
tion, an eligible entity is a local or Indian tribal govern-
ment or an agency or instrumentality of such a govern-
ment. 
(c) GRANT AMOUNT.—The Secretary may not award 
a grant under this section in excess of $1,000,000. 
(d) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—An eligible entity receiving a 
grant under this section shall provide non-Federal 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
matching funds equal to not less than 20 percent of 
the amount of the grant. 
(2) IN-KIND
SUPPORT.—Matching funds may 
include in-kind support. 
SEC. 8. FEDERAL ECONOMIC SUPPORT TEAM. 
(a) DEPLOYMENT REQUIRED.—The Secretary of 
Commerce shall deploy a targeted investment generating 
economic recovery team to a region to provide support and 
assistance to such region if— 
(1) the Governor of the State requests such de-
ployment; and 
(2) the Secretary of Commerce determines that 
the region is experiencing an actual or threatened 
abrupt rise of unemployment or economic hardship 
due to the closing or curtailment of a major source 
of employment, significant industry transition, or 
other mitigating economic factors, including inter-
national trade. 
(b) SUPPORT AND ASSISTANCE.— 
(1) DEVELOPMENT
OF
ECONOMIC
RECOVERY 
AND EMPLOYMENT PLAN.—In providing support and 
assistance to a region under subsection (a), a tar-
geted investment generating economic recovery team 
shall work in coordination with a State or regional 
economic development and workforce agency and the 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
Rapid Response team of the Department of Labor to 
assist in the development of an economic recovery 
and employment plan for the region, including by 
identifying grants, sources of State and Federal 
funding, and unemployment insurance resources (in-
cluding short-time compensation) which may be ben-
eficially utilized in the region. 
(2) CASES OF FACILITIES SHUTDOWN.—In ad-
dition to the support and assistance provided under 
paragraph (1), in a case in which the actual or 
threatened abrupt rise of unemployment or economic 
hardship in the region involves the shutdown of a fa-
cility of a business unit, the team shall work in co-
ordination with the Administrator of the Small Busi-
ness Administration to assess the feasibility and ad-
visability of an employee purchase of such business 
unit. 
(3) COORDINATION.—In addition to the support 
and assistance provided by a team under paragraph 
(1) to a region, the team, in coordination with the 
Secretary of Labor, shall— 
(A) coordinate the activities of all Federal 
agencies relating to the provision of assistance 
to the region in response to the actual or 
threatened abrupt rise of unemployment or eco-
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
nomic hardship referred to in subsection (a)(2); 
and 
(B) act as a liaison between the region and 
all Federal agencies providing assistance in re-
sponse to such actual or threatened abrupt rise 
of unemployment or economic hardship, includ-
ing, as the case may be, the following: 
(i) The Department of Agriculture. 
(ii) The Department of Commerce. 
(iii) The Department of Defense. 
(iv) The Department of Education. 
(v) The Department of Energy. 
(vi) The Department of Health and 
Human Services. 
(vii) The Department of Housing and 
Urban Development. 
(viii) The Department of Labor. 
(ix) The Department of Transpor-
tation. 
(x) The Department of the Treasury. 
(xi) The National Economic Council. 
(xii) The Small Business Administra-
tion. 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS
(xiii) The Department of Veterans Af-
fairs. 
Æ 
VerDate Sep 11 2014 
01:30 Jun 23, 2017
Jkt 069200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6301
E:\BILLS\H2931.IH
H2931
rfrederick on DSK3GLQ082PROD with BILLS