I 
108TH CONGRESS 
2D SESSION 
H. R. 4096 
To amend the Internal Revenue Code of 1986 to expand the incentives 
for renewal communities. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 31, 2004 
Mr. SENSENBRENNER (for himself and Mr. MEEHAN) 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 expand 
the incentives for renewal communities. 
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 ‘‘Renewal Communities Ex-
pansion and Technical Improvements Act of 2004’’. 
SEC. 2. EXPANSION OF TAX INCENTIVES FOR RENEWAL 
COMMUNITIES. 
(a) EMPLOYMENT CREDIT ALLOWED FOR EMPLOY-
EES RESIDING
IN ANY RENEWAL COMMUNITY.—Sub-
section (b) of section 1400H of the Internal Revenue Code
of 1986 (relating to modification) is amended by striking 
‘‘and’’ at the end of paragraph (1), by striking the period 
at the end of paragraph (2) and inserting ‘‘, and’’, and 
by inserting after paragraph (2) the following new para-
graph: 
‘‘(3) subsection (d)(1)(B) thereof shall be ap-
plied by substituting ‘within any’ for ‘within such’.’’. 
(b) PUBLIC SERVICE CAP EXEMPTION.— 
(1) IN GENERAL.—Part III of subchapter X of 
chapter 1 of such Code (relating to additional incen-
tives) is amended by adding at the end the following 
new section: 
‘‘SEC. 1400K. PUBLIC SERVICE CAP EXEMPTION. 
‘‘In the case of an area designated as a renewal com-
munity which was an enterprise community, the same ex-
emption from the percentage limitation under section 
105(a)(8) of the Housing and Community Development 
Act of 1974 on the use of community development block 
grants for provision of public services that applied to such 
enterprise community shall apply to the renewal commu-
nity.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for Part III of subchapter X of chapter 1 of 
such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 1400K. Public service cap exemption.’’.
(c) EXPANSION OF RENEWAL COMMUNITY TO IN-
CLUDE ADJACENT AREAS OF HIGH ECONOMIC DISTRESS 
AND CERTAIN NONCONTIGUOUS PARCELS.—Subsection 
(a) of section 1400E of such Code is amended by adding 
at the end the following new paragraph: 
‘‘(6) EXPANSION OF DESIGNATED AREAS.— 
‘‘(A) IN
GENERAL.—The Secretary of 
Housing and Urban Development may expand 
the boundaries of any area designated as a re-
newal community to include— 
‘‘(i) any census tract or census block 
group adjacent to the renewal community 
which the Secretary of Housing and Urban 
Development determines is an area of high 
economic distress, 
‘‘(ii) any census tract or census block 
group adjacent to the renewal community 
if not less than 50 percent of such tract or 
group is non-residential, or 
‘‘(iii) any census tract or census block 
group which is noncontiguous to the re-
newal community (determined without re-
gard to this paragraph) if not less than 50 
percent of such tract or group is non-resi-
dential.
‘‘(B) LIMITATION
ON
NUMBER
OF
PAR-
CELS.—Subparagraph (A)(iii) shall not apply to 
more than 5 parcels with respect to any renewal 
community. 
‘‘(C) PERIOD FOR WHICH DESIGNATION IS 
IN EFFECT.—Any expansion of a renewal com-
munity under this paragraph shall be effective 
on the date designated by the Secretary of 
Housing and Urban Development and shall con-
tinue in effect thereafter as part of such re-
newal community.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after the date 
of the enactment of this Act. 
Æ