‘‘(4) substantially all of the services performed
for such entity by its employees are performed in a
tax enterprise zone,
‘‘(5) at least 1⁄3 of its employees are residents
of a tax enterprise zone,
‘‘(6) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
entity is attributable to collectibles (as defined in
section 408(m)(2)) other than collectibles that are
held primarily for sale to customers in the ordinary
course of such business, and
‘‘(7) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
entity is attributable to nonqualified financial prop-
erty.
‘‘(c) QUALIFIED PROPRIETORSHIP.—For purposes of
this section, the term ‘qualified proprietorship’ means,
with respect to any taxable year, any qualified business
carried on by an individual as a proprietorship if for such
year—
‘‘(1) at least 80 percent of the total gross in-
come of such individual from such business is de-
rived from the active conduct of such business in a
tax enterprise zone,
‘‘(2) substantially all of the use of the tangible
property of such individual in such business (wheth-
er owned or leased) is within a tax enterprise zone,
‘‘(3) substantially all of the intangible property
of such business is used in, and exclusively related
to, the active conduct of such business,
‘‘(4) substantially all of the services performed
for such individual in such business by employees of
such business are performed in a tax enterprise
zone,
‘‘(5) at least 1⁄3 of such employees are residents
of a tax enterprise zone,
‘‘(6) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
individual which is used in such business is attrib-
utable 
to 
collectibles 
(as 
defined 
in 
section
408(m)(2)) other than collectibles that are held pri-
marily for sale to customers in the ordinary course
of such business, and
‘‘(7) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
individual which is used in such business is attrib-
utable to nonqualified financial property.
For purposes of this subsection, the term ‘employee’ in-
cludes the proprietor.
‘‘(d) QUALIFIED BUSINESS.—For purposes of this
section—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘qualified business’
means any trade or business.
‘‘(2) RENTAL OF REAL PROPERTY.—The rental
to others of real property located in a tax enterprise
zone shall be treated as a qualified business if and
only if—
‘‘(A) in the case of real property which is
not residential rental property (as defined in
section 168(e)(2)), the lessee is an enterprise
zone business, or
‘‘(B) in the case of residential rental prop-
erty (as so defined)—
‘‘(i) such property was originally
placed in service after the date the tax en-
terprise zone was designated, or
‘‘(ii) such property is rehabilitated
after such date in a rehabilitation which
meets requirements based on the principles
of section 42(e)(3).
‘‘(3) RENTAL OF TANGIBLE PERSONAL PROP-
ERTY.—The rental to others of tangible personal
property shall be treated as a qualified business if
and only if substantially all of the rental of such
property is by enterprise zone businesses or by resi-
dents of a tax enterprise zone.
‘‘(4) TREATMENT OF BUSINESS HOLDING IN-
TANGIBLES.—The term ‘qualified business’ shall not
include any trade or business consisting predomi-
nantly of the development or holding of intangibles
for sale or license.
‘‘(5) CERTAIN
BUSINESSES
EXCLUDED.—The
term ‘qualified business’ shall not include—
‘‘(A) any trade or business consisting of
the operation of any facility described in section
144(c)(6)(B), and
‘‘(B) any trade or business the principal
activity of which is farming (within the meaning
of subparagraphs (A) or (B) of section
2032A(e)(5)), but only if, as of the close of the
preceding taxable year, the sum of—
‘‘(i) the aggregate unadjusted bases
(or, if greater, the fair market value) of
the assets owned by the taxpayer which are
used in such a trade or business, and
‘‘(ii) the aggregate value of assets
leased by the taxpayer which are used in
such a trade or business,
exceeds $500,000.
For purposes of subparagraph (B), rules similar to
the rules of section 1395(b) shall apply.
‘‘(e) NONQUALIFIED FINANCIAL PROPERTY.—For
purposes of this section, the term ‘nonqualified financial
property’ means debt, stock, partnership interests, op-
tions, futures contracts, forward contracts, warrants, no-
tional principal contracts, annuities, and other similar
property specified in regulations; except that such term
shall not include—
‘‘(1) reasonable amounts of working capital
held in cash, cash equivalents, or debt instruments
with a term of 18 months or less, or
‘‘(2) debt instruments described in section
1221(4).
‘‘SEC. 1397C. OTHER DEFINITIONS.
‘‘(a) QUALIFIED ZONE ASSET.—For purposes of this
subpart—
‘‘(1) IN GENERAL.—The term ‘qualified zone
asset’ means—
‘‘(A) any qualified zone stock,
‘‘(B) any qualified zone business property,
and
‘‘(C) any qualified zone partnership inter-
est.
‘‘(2) QUALIFIED ZONE STOCK.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘qualified zone
stock’ means any stock in a domestic corpora-
tion if—
‘‘(i) such stock is acquired by the tax-
payer on original issue from the corpora-
tion solely in exchange for cash,
‘‘(ii) as of the time such stock was is-
sued, such corporation was an enterprise
zone business (or, in the case of a new cor-
poration, such corporation was being orga-
nized for purposes of being an enterprise
zone business), and
‘‘(iii) during substantially all of the
taxpayer’s holding period for such stock,
such corporation qualified as an enterprise
zone business.
‘‘(B) EXCLUSION OF STOCK FOR WHICH
DEDUCTION UNDER SECTION 1396 ALLOWED.—
The term ‘qualified zone stock’ shall not include
any stock the basis of which is reduced under
section 1396(e)(1).
‘‘(C) REDEMPTIONS.—The term ‘qualified
zone stock’ shall not include any stock acquired
from a corporation which made a substantial
stock redemption or distribution (without a
bona fide business purpose therefor) in an at-
tempt to avoid the purposes of this section.
‘‘(3) QUALIFIED ZONE BUSINESS PROPERTY.—
‘‘(A) IN
GENERAL.—The term ‘qualified
zone business property’ means tangible property
if—
‘‘(i) such property was acquired by
the taxpayer by purchase (as defined in
section 179(d)(2)) after the date on which
the designation of the tax enterprise zone
took effect,
‘‘(ii) the original use of such property
in a tax enterprise zone commences with
the taxpayer, and
‘‘(iii) during substantially all of the
taxpayer’s holding period for such prop-
erty, substantially all of the use of such
property was in a tax enterprise zone and
in an enterprise zone business of the tax-
payer.
‘‘(B) SPECIAL RULE FOR SUBSTANTIAL IM-
PROVEMENTS.—The requirements of clauses (i)
and (ii) of subparagraph (A) shall be treated as
satisfied with respect to—
‘‘(i) property which is substantially
improved by the taxpayer, and
‘‘(ii) any land on which such property
is located.
For purposes of the preceding sentence, prop-
erty shall be treated as substantially improved
by the taxpayer if, during any 24-month period
beginning after the date on which the designa-
tion of the tax enterprise zone took effect, addi-
tions to basis with respect to such property in
the hands of the taxpayer exceed the greater of
(i) an amount equal to the adjusted basis at the
beginning of such 24-month period in the hands
of the taxpayer, or (ii) $5,000.
‘‘(C) LIMITATION
ON
LAND.—The term
‘qualified zone business property’ shall not in-
clude land which is not an integral part of a
qualified business (as defined in section
1397B(c)).
‘‘(4) QUALIFIED
ZONE
PARTNERSHIP
INTER-
EST.—The term ‘qualified zone partnership interest’
means any interest in a partnership if—
‘‘(A) such interest is acquired by the tax-
payer from the partnership solely in exchange
for cash,
‘‘(B) as of the time such interest was ac-
quired, such partnership was an enterprise zone
business (or, in the case of a new partnership,
such partnership was being organized for pur-
poses of being an enterprise zone business), and
‘‘(C) during substantially all of the tax-
payer’s holding period for such interest, such
partnership qualified as an enterprise zone
business.
A rule similar to the rule of paragraph (2)(C) shall
apply for purposes of this paragraph.
‘‘(5) 
TREATMENT
OF
SUBSEQUENT
PUR-
CHASERS.—The term ‘qualified zone asset’ includes
any property which would be a qualified zone asset
but for paragraph (2)(A)(i), (3)(A)(ii), or (4)(A) in
the hands of the taxpayer if such property was a
qualified zone asset in the hands of any prior holder.
‘‘(6) 10-YEAR SAFE HARBOR.—If any property
ceases to be a qualified zone asset by reason of para-
graph (2)(A)(iii), (3)(A)(iii), or (4)(C) after the 10-
year period beginning on the date the taxpayer ac-
quired such property, such property shall continue to
be treated as meeting the requirements of such
paragraph; except that the amount of gain which is
qualified capital gain on any sale or exchange of
such property shall not exceed the amount which
would be qualified capital gain had such property
been sold on the date of such cessation.
‘‘(7) TREATMENT OF ZONE TERMINATIONS.—
The termination of any designation of an area as a
tax enterprise zone shall be disregarded for purposes
of determining whether any property is a qualified
zone asset.
‘‘(b) OTHER DEFINITIONS AND SPECIAL RULES.—
For purposes of this section—
‘‘(1) QUALIFIED
CAPITAL
GAIN.—Except as
otherwise provided in this subsection, the term
‘qualified capital gain’ means any long-term capital
gain.
‘‘(2) CERTAIN GAIN ON REAL PROPERTY NOT
QUALIFIED.—The term ‘qualified capital gain’ shall
not include any gain which would be treated as ordi-
nary income under section 1250 if section 1250 ap-
plied to all depreciation rather than the additional
depreciation.
‘‘(3) GAIN ATTRIBUTABLE TO PERIODS AFTER
TERMINATION OF ZONE DESIGNATION NOT QUALI-
FIED.—The term ‘qualified capital gain’ shall not in-
clude any gain attributable to periods after the ter-
mination of any designation of an area as a tax en-
terprise zone.
‘‘(c) TREATMENT OF PASS-THRU ENTITIES.—
‘‘(1) SALES
AND
EXCHANGES.—Gain on the
sale or exchange of an interest in a pass-thru entity
held by the taxpayer (other than an interest in an
entity which was an enterprise zone business during
substantially all of the period the taxpayer held such
interest) for more than 5 years shall be treated as
qualified capital gain to the extent such gain is at-
tributable to amounts which would be qualified cap-
ital gain on qualified zone assets (determined as if
such assets had been sold on the date of the sale or
exchange) held by such entity for more than 5 years
and throughout the period the taxpayer held such in-
terest. A rule similar to the rule of paragraph (2)(C)
shall apply for purposes of the preceding sentence.
‘‘(2) INCOME INCLUSIONS.—
‘‘(A) IN GENERAL.—Any amount included
in income by reason of holding an interest in a
pass-thru entity (other than an entity which
was an enterprise zone business during substan-
tially all of the period the taxpayer held the in-
terest to which such inclusion relates) shall be
treated as qualified capital gain if such amount
meets the requirements of subparagraph (B).
‘‘(B) REQUIREMENTS.—An amount meets
the requirements of this subparagraph if—
‘‘(i) such amount is attributable to
qualified capital gain recognized on the
sale or exchange by the pass-thru entity of
property which is a qualified zone asset in
the hands of such entity and which was
held by such entity for the period required
under subsection (a), and
‘‘(ii) such amount is includible in the
gross income of the taxpayer by reason of
the holding of an interest in such entity
which was held by the taxpayer on the date
on which such pass-thru entity acquired
such asset and at all times thereafter be-
fore the disposition of such asset by such
pass-thru entity.
‘‘(C) LIMITATION
BASED
ON
INTEREST
ORIGINALLY
HELD
BY
TAXPAYER.—Subpara-
graph (A) shall not apply to any amount to the
extent such amount exceeds the amount to
which subparagraph (A) would have applied if
such amount were determined by reference to
the interest the taxpayer held in the pass-thru
entity on the date the qualified zone asset was
acquired.
‘‘(3) PASS-THRU ENTITY.—For purposes of this
subsection, the term ‘pass-thru entity’ means—
‘‘(A) any partnership,
‘‘(B) any S corporation,
‘‘(C) any regulated investment company,
and
‘‘(D) any common trust fund.
‘‘(d) SALES
AND EXCHANGES
OF INTERESTS
IN
PARTNERSHIPS
AND
S CORPORATIONS
WHICH
ARE
QUALIFIED ZONE BUSINESSES.—In the case of the sale
or exchange of an interest in a partnership, or of stock
in an S corporation, which was an enterprise zone business
during substantially all of the period the taxpayer held
such interest or stock, the amount of qualified capital gain
shall be determined without regard to—
‘‘(1) any intangible, and any land, which is not
an integral part of any qualified business (as defined
in section 1397B(b)), and
‘‘(2) gain attributable to periods before the des-
ignation of an area as a tax enterprise zone.
‘‘(e) CERTAIN
TAX-FREE
AND
OTHER
TRANS-
FERS.—For purposes of this section—
‘‘(1) IN GENERAL.—In the case of a transfer of
a qualified zone asset to which this subsection ap-
plies, the transferee shall be treated as—
‘‘(A) having acquired such asset in the
same manner as the transferor, and
‘‘(B) having held such asset during any
continuous period immediately preceding the
transfer during which it was held (or treated as
held under this subsection) by the transferor.
‘‘(2) TRANSFERS TO WHICH SUBSECTION AP-
PLIES.—This subsection shall apply to any trans-
fer—
‘‘(A) by gift,
‘‘(B) at death, or
‘‘(C) from a partnership to a partner
thereof of a qualified zone asset with respect to
which the requirements of subsection (d)(2) are
met at the time of the transfer (without regard
to the 5-year holding requirement).
‘‘(3) CERTAIN
RULES
MADE
APPLICABLE.—
Rules similar to the rules of section 1244(d)(2) shall
apply for purposes of this section.
‘‘Subpart C—Regulations
‘‘Sec. 1397D. Regulations.
‘‘SEC. 1397D. REGULATIONS.
‘‘The Secretary shall prescribe such regulations as
may be necessary or appropriate to carry out the purposes
of this part, including—
‘‘(1) regulations limiting the benefit of this part
in circumstances where such benefits, in combination
with benefits provided under other Federal pro-
grams, would result in an activity being 100 percent
or more subsidized by the Federal Government,
‘‘(2) regulations preventing abuse of the provi-
sions of this part, and
‘‘(3) regulations dealing with inadvertent fail-
ures of entities to be qualified zone businesses.’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 is amended by inserting after the
item relating to subchapter T the following new item:
‘‘Subchapter U. Designation and treatment of tax enterprise
zones.’’
SEC. 103. TECHNICAL AND CONFORMING AMENDMENTS.
(a) ENTERPRISE ZONE EMPLOYMENT CREDIT PART
OF GENERAL BUSINESS CREDIT.—
(1) Subsection (b) of section 38 (relating to
current year business credit) is amended by striking
‘‘plus’’ at the end of paragraph (7), by striking the
period at the end of paragraph (8) and inserting ‘‘,
plus’’, and by adding at the end the following new
paragraph:
‘‘(9) the enterprise zone employment credit de-
termined under section 1394(a).’’
(2) Subsection (d) of section 39 is amended by
adding at the end thereof the following new para-
graph:
‘‘(4) NO CARRYBACK OF SECTION 1394 CREDIT
BEFORE
ENACTMENT.—No portion of the unused
business credit for any taxable year which is attrib-
utable to the enterprise zone employment credit de-
termined under section 1394 may be carried to a
taxable year ending before the date of the enactment
of section 1394.’’
(b) NONITEMIZERS ALLOWED DEDUCTION FOR EN-
TERPRISE ZONE STOCK.—Subsection (a) of section 62 is
amended by adding at the end thereof the following new
paragraph:
‘‘(15) ENTERPRISE ZONE STOCK.—The deduc-
tion allowed by section 1396.’’
(c) DENIAL OF DEDUCTION FOR PORTION OF WAGES
EQUAL TO ENTERPRISE ZONE EMPLOYMENT CREDIT.—
(1) Subsection (a) of section 280C (relating to
rule for targeted jobs credit) is amended—
(A) by striking ‘‘the amount of the credit
determined for the taxable year under section
51(a)’’ and inserting ‘‘the sum of the credits
determined for the taxable year under sections
51(a) and 1394(a)’’, and
(B) by striking ‘‘TARGETED JOBS CRED-
IT’’ in the subsection heading and inserting
‘‘EMPLOYMENT CREDITS’’.
(2) Subsection (c) of section 196 (relating to
deduction for certain unused business credits) is
amended by striking ‘‘and’’ at the end of paragraph
(4), by striking the period at the end of paragraph
(5) and inserting ‘‘, and’’, and by adding at the end
the following new paragraph:
‘‘(6) the enterprise zone employment credit de-
termined under section 1394(a).’’
(d) OTHER AMENDMENTS.—
(1) Subsection (c) of section 381 (relating to
carryovers in certain corporate acquisitions) is
amended by adding at the end the following new
paragraph:
‘‘(26) ENTERPRISE
ZONE
PROVISIONS.—The
acquiring corporation shall take into account (to the
extent proper to carry out the purposes of this sec-
tion and subchapter U, and under such regulations
as may be prescribed by the Secretary) the items re-
quired to be taken into account for purposes of sub-
chapter U in respect of the distributor or transferor
corporation.’’
(2) Paragraph (1) of section 1371(d) (relating
to coordination with investment credit recapture) is
amended by inserting before the period at the end
the 
following 
‘‘and 
for 
purposes 
of 
section
1394(d)(3)’’.
(3) Subsection (a) of section 1016 (relating to
adjustments to basis) is amended by striking ‘‘and’’
at the end of paragraph (25), by striking the period
at the end of paragraph (26) and inserting a semi-
colon, and by adding at the end thereof the following
new paragraphs:
‘‘(27) in the case of stock with respect to which
a deduction was allowed under section 1396(a), to
the extent provided in section 1396(e); and
‘‘(28) in the case of property the acquisition of
which resulted under section 1397A in the non-
recognition of any part of the gain realized on the
sale or exchange of other property, to the extent pro-
vided in section 1397A(e).’’
(4) Section 1223 (relating to holding period of
property) is amended by redesignating paragraph
(15) as paragraph (16) and by inserting after para-
graph (14) the following new paragraph:
‘‘(15) In determining the period for which the
taxpayer has held property the acquisition of which
resulted under section 1397A in the nonrecognition
of any part of the gain realized on the sale or ex-
change of any qualified zone asset (as defined in sec-
tion 1397C(b)), there shall be included the period
for which such asset had been held as of the date
of such sale or exchange.’’
SEC. 104. EFFECTIVE DATE.
(a) GENERAL RULE.—The amendments made by this
subtitle shall take effect on the date of the enactment of
this Act.
(b) REQUIREMENT FOR RULES.—Not later than the
date 4 months after the date of the enactment of this Act,
the appropriate Secretaries shall issue rules—
(1) establishing the procedures for nominating
areas for designation as tax enterprise zones,
(2) establishing a method for comparing the
factors listed in section 1392(d) of the Internal Rev-
enue Code of 1986 (as added by this subtitle), and
(3) providing that State and local governments
shall have at least 30 days after such rules are pub-
lished to file applications for nominated areas before
such applications are evaluated and compared and
any area designated as a tax enterprise zone.
Subtitle B—Redevelopment Bonds
for Tax Enterprise Zones
SEC. 111. SPECIAL RULES FOR REDEVELOPMENT BONDS
PROVIDING FINANCING FOR TAX ENTER-
PRISE ZONES.
(a) IN GENERAL.—Subsection (c) of section 144 (re-
lating to qualified redevelopment bonds) is amended by
adding at the end thereof the following new paragraph:
‘‘(9) SPECIAL
RULES
FOR
TAX
ENTERPRISE
ZONES.—For purposes of this subsection, in the case
of bonds issued during the 60-month period begin-
ning on the date a tax enterprise zone is des-
ignated—
‘‘(A) TREATMENT
AS
A
DESIGNATED
BLIGHTED
AREA.—Such tax enterprise zone
shall be treated as a designated blighted area
during such 60-month period (or, if shorter, the
period such designation is in effect). Any area
designated by reason of the preceding sentence
shall not be taken into account in applying
paragraph (4)(C).
‘‘(B) SECURITY FOR BONDS.—The require-
ments of paragraph (2)(B) shall be treated as
met with respect to a financed area that is
within a tax enterprise zone if the general pur-
pose governmental unit guarantees the payment
of principal and interest on the issue either di-
rectly or through insurance, a letter of credit,
or a similar agreement but only if the cost
thereof is financed other than with proceeds of
any tax-exempt private activity bond or earn-
ings on such proceeds.
‘‘(C) EXPANSION
OF
REDEVELOPMENT
PURPOSES.—
‘‘(i) IN GENERAL.—The term ‘redevel-
opment purposes’ includes the making of
loans to any enterprise zone business (as
defined in section 1397B) for—
‘‘(I) the acquisition of land with-
in the tax enterprise zone for use in
such business, or
‘‘(II) the acquisition, construc-
tion, reconstruction, or improvement
by such business of land, or property
of a character subject to the allowance
for depreciation, for use in such busi-
ness.
‘‘(ii) $5,000,000 LIMITATION.—Clause
(i) shall apply to loans made to any enter-
prise zone business only if the aggregate
principal amount of such loans (whether or
not financed by the same issue) does not
exceed $5,000,000. For purposes of the
preceding sentence, all persons treated as a
single employer under subsection (a) or (b)
of section 52 shall be treated as 1 person.
‘‘(iii) LOANS MUST BE MADE WITHIN
18 MONTHS AFTER BONDS ISSUED; REPAY-
MENTS
MUST
BE
USED
FOR
REDEMP-
TIONS.—Clause (i) shall apply only to
loans—
‘‘(I) made during the 18-month
period beginning on the date of issu-
ance of the issue financing such loan,
‘‘(II) repayments of principal on
which are used not later than the
close of the 1st semiannual period be-
ginning after the date the repayment
is received to redeem bonds which are
part of such issue, and
‘‘(III) the effective rate of inter-
est on which does not exceed the yield
on the issue by more than 0.125 per-
centage points.
In determining the effective rate of interest
for purposes of subclause (III), there shall
be taken into account all fees, charges, and
other amounts (other than amounts for
any credit report) borne by the borrower
which are attributable to the loan or the
bond issue.
‘‘(iv) HOUSING LOANS EXCLUDED.—
Clause (i) shall not apply to any loan to be
used directly or indirectly to provide resi-
dential real property.
‘‘(v) COORDINATION
WITH
RESTRIC-
TIONS ON USE OF PROCEEDS.—Paragraphs
(6) and (8) shall apply notwithstanding
clause (i); except that in applying para-
graph (6), subsection (a)(8) shall be treat-
ed as not including a reference to a facility
the primary purpose of which is retail food
services.
‘‘(D) ISSUER TO DESIGNATE AMOUNT OF
ISSUE TO BE USED FOR LOANS.—Subparagraph
(C) shall not apply with respect to any issue
unless the issuer designates before the date of
issuance the amount of the proceeds of such
issue which is to be used for loans to which
subparagraph (C)(i) applies. If such amount ex-
ceeds the principal amount of loans to which
subparagraph (C)(i) applies, an amount of pro-
ceeds equal to such excess shall be used not
later than the close of the 1st semiannual pe-
riod beginning after the close of the 18-month
period referred to in subparagraph (C)(iii) to
redeem bonds which are part of such issue.
‘‘(E) DE MINIMIS REDEMPTIONS NOT RE-
QUIRED.—Subparagraphs (C)(iii) and (D) shall
not be construed to require amounts of less
than $250,000 to be used to redeem bonds. The
Secretary may by regulation treat related issues
as 1 issue for purposes of the preceding sen-
tence.
‘‘(F) PENALTY.—
‘‘(i) IN
GENERAL.—In the case of
property with respect to which financing
was provided under this paragraph, if at
any time during the 10-period beginning
on the date such financing was provided—
‘‘(I) such property ceases to be in
use in an enterprise zone business (as
defined in section 1397B), or
‘‘(II) substantially all of the use
of such property ceases to be in a tax
enterprise zone,
there is hereby imposed on the trade or
business to which such financing was pro-
vided a penalty equal to 1.25 percent of so
much of the face amount of all financing
provided (whether or not from the same
issue and whether or not such issue is out-
standing) before such cessation to the
trade or business using such property.
‘‘(ii) NO
PENALTY
BY
REASON
OF
ZONE TERMINATION.—No penalty shall be
imposed under clause (i) solely by reason
of the termination or revocation of a tax
enterprise zone designation.
‘‘(iii) 
EXCEPTION
FOR
BANK-
RUPTCY.—Clause (i) shall not apply to any
cessation resulting from bankruptcy.’’
(b) VOLUME CAP ONLY CHARGED WITH 50 PER-
CENT
OF TAX ENTERPRISE ZONE REDEVELOPMENT
BONDS.—Subsection (g) of section 146 is amended by
striking ‘‘and’’ at the end of paragraph (3), by striking
the period at the end of paragraph (4) and inserting
‘‘, and’’, and by adding at the end thereof the following
new paragraph:
‘‘(5) 50 percent of any qualified redevelopment
bond issued—
‘‘(A) as part of an issue 95 percent or
more of the net proceeds of which are to be
used for 1 or more redevelopment purposes (as
defined in section 144(c)) in a tax enterprise
zone, and
‘‘(B) during the 60-month period begin-
ning on the date of the designation of such
zone.’’
(c) PENALTIES FOR LOANS MADE TO BUSINESSES
THAT CEASE TO BE ENTERPRISE ZONE BUSINESSES,
ETC.—Subsection (b) of section 150 is amended by adding
at the end thereof the following new paragraph:
‘‘(6) 
ENTERPRISE
ZONE
REDEVELOPMENT
BONDS.—In the case of any financing provided by
an issue the interest on which is exempt from tax by
reason of section 144(c)(9)—
‘‘(A) IN GENERAL.—No deduction shall be
allowed under this chapter for interest on such
financing which accrues during the period be-
ginning on the first day of the calendar year
which includes the date on which—
‘‘(i) the trade or business to which the
financing was provided ceases to be an en-
terprise zone business (as defined in sec-
tion 1397B), or
‘‘(ii) substantially all of the use of the
property (determined in accordance with
subchapter U) with respect to which the fi-
nancing was provided ceases to be in a tax
enterprise zone.
The preceding sentence shall not apply solely by
reason of the termination or revocation of a tax
enterprise zone designation.
‘‘(B) EXCEPTION FOR BANKRUPTCY.—This
paragraph shall not apply to any cessation re-
sulting from bankruptcy.’’
Subtitle C—Expansion of Targeted
Jobs Credit
SEC. 121. ECONOMICALLY DISADVANTAGED ZONE RESI-
DENTS INCLUDED AS MEMBERS OF TAR-
GETED GROUP.
(a) ALLOWANCE OF CREDIT FOR HIRING TAX EN-
TERPRISE ZONE RESIDENTS.—Paragraph (1) of section
51(d) (defining members of targeted groups) is amended
by striking ‘‘or’’ at the end of subparagraph (I), by strik-
ing the period at the end of subparagraph (J) and insert-
ing ‘‘, or’’, and by adding at the end the following new
subparagraph:
‘‘(K) an economically disadvantaged tax enter-
prise zone resident.’’
(b) ECONOMICALLY DISADVANTAGED TAX ENTER-
PRISE ZONE RESIDENT.—Section 51(d) is amended by
adding at the end thereof the following new paragraph:
‘‘(17) ECONOMICALLY
DISADVANTAGED
TAX
ENTERPRISE ZONE RESIDENT.—
‘‘(A) IN
GENERAL.—The term ‘economi-
cally disadvantaged tax enterprise zone resi-
dent’ means an individual—
‘‘(i) whose principal place of abode
while performing services for the employer
is within a tax enterprise zone (as defined
in section 1391(a)), and
‘‘(ii) who is certified by the designated
local agency as being a member of an eco-
nomically disadvantaged family (as deter-
mined under paragraph (11)).
‘‘(B) SPECIAL
RULE
FOR
DETERMINING
AMOUNT OF CREDIT.—For purposes of applying
this subpart to wages paid or incurred to any
economically disadvantaged tax enterprise zone
resident, subsection (a) shall be applied by sub-
stituting ‘30 percent’ for ‘40 percent’.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to individuals who begin work for
the employer after the date of the enactment of this Act.
Subtitle D—Credit for Contribu-
tions to Certain Community De-
velopment Corporations
SEC. 131. CREDIT FOR CONTRIBUTIONS TO CERTAIN COM-
MUNITY DEVELOPMENT CORPORATIONS.
(a) IN GENERAL.—For purposes of section 38 of the
Internal Revenue Code of 1986, the current year business
credit shall include the credit determined under this sec-
tion.
(b) DETERMINATION OF CREDIT.—The credit deter-
mined under this section for each taxable year in the credit
period with respect to any qualified CDC contribution
made by the taxpayer is an amount equal to 5 percent
of such contribution.
(c) CREDIT PERIOD.—For purposes of this section,
the credit period with respect to any qualified CDC con-
tribution is the period of 10 taxable years beginning with
the taxable year during which such contribution was made.
(d) QUALIFIED CDC CONTRIBUTION.—For purposes
of this section—
(1) IN GENERAL.—The term ‘‘qualified CDC
contribution’’ means any transfer of cash—
(A) which is made to a selected community
development corporation during the 5-year pe-
riod beginning on the date such corporation was
selected for purposes of this section,
(B) the amount of which is available for
use by such corporation for at least 10 years,
(C) which is to be used by such corpora-
tion for qualified low-income assistance within
its operational area, and
(D) which is designated by such corpora-
tion for purposes of this section.
(2) LIMITATIONS ON AMOUNT DESIGNATED.—
The aggregate amount of contributions to a selected
community development corporation which may be
designated by such corporation shall not exceed
$2,000,000.
(e) SELECTED COMMUNITY DEVELOPMENT COR-
PORATIONS.—
(1) IN GENERAL.—For purposes of this section,
the term ‘‘selected community development corpora-
tion’’ means any corporation—
(A) which is described in section 501(c)(3)
of such Code and exempt from tax under sec-
tion 501(a) of such Code,
(B) the principal purposes of which include
promoting employment of, and business oppor-
tunities for, low-income individuals who are
residents of the operational area, and
(C) which is selected by the Secretary of
Housing and Urban Development for purposes
of this section.
(2) ONLY
CORPORATIONS
MAY
BE
SE-
LECTED.—
(A) IN GENERAL.—The Secretary of Hous-
ing and Urban Development may select 10 cor-
porations for purposes of this section, subject to
the availability of eligible corporations. Such se-
lections may be made only before January 1,
1994. At least 4 of the operational areas of the
corporations selected must be rural areas (as
defined by section 1393(6) of such Code).
(B) PRIORITY OF DESIGNATIONS.—In se-
lecting corporations for purposes of this section,
such Secretary shall give priority to corpora-
tions with a demonstrated record of perform-
ance in administering community development
programs which target at least 75 percent of
the jobs emanating from their investment funds
to low income or unemployed individuals.
(3) OPERATIONAL AREAS MUST HAVE CERTAIN
CHARACTERISTICS.—A corporation may be selected
for purposes of this section only if its operational
area meets the following criteria:
(A) The area meets the size requirements
under paragraph (1)(C) or (2)(C) of section
1391(b) which would apply if such area were to
be designated as a tax enterprise zone.
(B) The unemployment rate (as deter-
mined by the appropriate available data) is not
less than the national unemployment rate.
(C) The median family income of residents
of such area does not exceed 80 percent of the
median gross income of residents of the juris-
diction of the local government which includes
such area.
(f) QUALIFIED LOW-INCOME ASSISTANCE.—For pur-
poses of this section, the term ‘‘qualified low-income as-
sistance’’ means assistance—
(1) which is designed to provide employment of,
and business opportunities for, low-income individ-
uals who are residents of the operational area of the
community development corporation, and
(2) which is approved by the Secretary of Hous-
ing and Urban Development.
Subtitle E—Authority for National
Banks To Deal in Securities of
Corporations Located in Tax
Enterprise Zones
SEC. 141. AUTHORITY FOR NATIONAL BANKS TO DEAL IN
SECURITIES OF CORPORATIONS LOCATED IN
TAX ENTERPRISE ZONES.
The clause designated the ‘‘Seventh’’ of section 5136
of the Revised Statutes (12 U.S.C. 24) is amended by add-
ing at the end thereof the following new sentence: ‘‘Any
national bank meeting minimum capital requirements
which is located in (or maintains a branch located in) a
tax enterprise zone (as defined in section 1391 of the In-
ternal Revenue Code of 1986) may deal in securities is-
sued by any corporation whose office is located in such
zone and may underwrite the securities of any corporation
headquartered in such zone.’’
Subtitle F—Report on Number of
Areas Meeting Enterprise Zone
Criteria
SEC. 151. REPORT.
(a) IN GENERAL.—The Secretary of the Treasury, in
consultation with the Secretary of Housing and Urban De-
velopment and the Secretary of Agriculture, shall conduct
a study to determine—
(1) the number of areas in the United States
which satisfy the tax enterprise zone eligibility cri-
teria specified in section 1391(b) of the Internal
Revenue Code of 1986, and
(2) the estimated additional cost to the Federal
Government by reason of this title and title II if all
such areas were designated as tax enterprise zones.
(b) REPORT.—The report of the study required by
subsection (a) shall be submitted to the Congress not later
than 1 year after the date of the enactment of this Act.
TITLE II—ADDITIONAL ASSIST-
ANCE TO ENTERPRISE ZONES
AND 
OTHER 
DISTRESSED
COMMUNITIES
SEC. 201. PURPOSE.
The purpose of this title is to implement initiatives
to improve the quality of life and expand economic oppor-
tunity by providing assistance to States, units of general
local government, and other entities for implementing ac-
tivities to rejuvenate neighborhoods and promote economic
opportunity.
Subtitle A—National Public-Private
Partnership Program
SEC. 211. SENSE OF CONGRESS.
It is the sense of Congress that public-private part-
nerships between government and community-based orga-
nizations offer an opportunity to empower residents of
low-income distressed communities and to forge innovative
solutions to the challenges confronting these communities,
and that increased resources should be invested in such
partnerships.
SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—To promote national public-pri-
vate partnerships, there are authorized to be appro-
priated—
(1) for grants under section 236 for implemen-
tation of the Model Neighborhood Aid Program es-
tablished under chapter 2 of subtitle B of this Act—
(A) $40,000,000 for fiscal year 1993;
(B) $126,000,000 for fiscal year 1994;
(C) $132,000,000 for fiscal year 1995;
(D) $138,000,000 for fiscal year 1996;
(E) $147,000,000 for fiscal year 1997;
(F) $153,000,000 for fiscal year 1998;
(G) $162,000,000 for fiscal year 1999;
(H) $168,000,000 for fiscal year 2000;
(I) $227,000,000 for fiscal year 2001; and
(J) $236,000,000 for fiscal year 2002;
(2) for the National Community Economic
Partnership program established under subtitle E of
this title—
(A) $40,000,000 for fiscal year 1993;
(B) $126,000,000 for fiscal year 1994;
(C) $132,000,000 for fiscal year 1995;
(D) $138,000,000 for fiscal year 1996;
(E) $147,000,000 for fiscal year 1997;
(F) $153,000,000 for fiscal year 1998;
(G) $162,000,000 for fiscal year 1999;
(H) $168,000,000 for fiscal year 2000;
(I) $227,000,000 for fiscal year 2001; and
(J) $236,000,000 for fiscal year 2002; and
(3) for the Enterprise Capital Access Fund
Demonstration Program established under section
281 of this Act—
(A) $20,000,000 for fiscal year 1993;
(B) $63,000,000 for fiscal year 1994;
(C) $66,000,000 for fiscal year 1995;
(D) $68,000,000 for fiscal year 1996;
(E) $72,000,000 for fiscal year 1997;
(F) $78,000,000 for fiscal year 1998;
(G) $81,000,000 for fiscal year 1999;
(H) $84,000,000 for fiscal year 2000;
(I) $115,000,000 for fiscal year 2001; and
(J) $118,000,000 for fiscal year 2002.
(b) AVAILABILITY OF AMOUNTS.—Notwithstanding
any other provision of this Act, of the amounts appro-
priated for programs pursuant to paragraphs (2) and (3)
of subsection (a), not less than 50 percent shall be avail-
able only for projects or activities that directly and prin-
cipally benefit the residents of tax enterprise zones des-
ignated pursuant to section 1391 of the Internal Revenue
Code of 1986.
(c) TREATMENT
OF APPROPRIATED AMOUNTS.—
Notwithstanding the provisions of title XII of Public Law
102–368 (106 Stat. 1160–1161) and the programs re-
ferred to in such title, the National Public/Private Part-
nership Program under such title shall consist of the eligi-
ble programs, projects, and activities under the programs
under the provisions of this subtitle, chapter 2 of subtitle
B, subtitle E, and section 281 and such provisions shall
be considered the National Public/Private Partnership
Program for which amounts are available under title XII
of Public Law 102–368.
Subtitle B—Coordinated and Com-
prehensive Neighborhood Aid
for Tax Enterprise Zones and
Other Communities
CHAPTER 
1—ENTERPRISE 
COMMUNITY
BLOCK GRANT DEMONSTRATION PRO-
GRAM
SEC. 221. FUNDING.
(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated for assistance under sec-
tion 
222, 
$400,000,000 
for 
fiscal 
year 
1993,
$1,260,000,000 for fiscal year 1994, $1,320,000,000 for
fiscal year 1995, $1,380,000,000 for fiscal year 1996,
$1,470,000,000 for fiscal year 1997, and such sums as
may be necessary for each of the fiscal years 1998 through
2002, except that amounts authorized under this section
for each of the fiscal years 1998 through 2002 shall not
be less than twice the amount of the revenue loss estimates
to result as a result of enterprise zone tax preferences
under section 1391 of the Internal Revenue Code of 1986
less the sum of the amounts authorized by section 212(a)
of this Act.
(b) TREATMENT OF APPROPRIATED AMOUNTS.—The
program for providing assistance under this chapter shall
be considered the Enterprise Community Block Grant
Demonstration Program for which amounts are available
under title XII of Public Law 102–368 (106 Stat. 1160).
SEC. 222. ALLOCATION OF AMOUNTS AMONG TAX ENTER-
PRISE ZONES.
(a) IN GENERAL.—The Interagency Council estab-
lished under section 242 of this Act shall make any
amounts available pursuant to section 221 (and not set
aside under section 222(d)) available under this chapter
to provide assistance on behalf of each tax enterprise zone
designated under section 1391 of the Internal Revenue
Code of 1986 for which a neighborhood aid plan under
section 243 of this Act has been submitted and approved
by the Interagency Council.
(b) ALLOCATION BETWEEN URBAN
AND RURAL
ZONES.—Of the amounts available for each fiscal year
under this chapter for tax enterprise zones, 80 percent
shall be available for urban tax enterprise zones and 20
percent shall be available for rural development investment
zones.
(c) DIVISION AMONG URBAN AND RURAL ZONES.—
(1) URBAN ZONES.—The amounts available for
each fiscal year under this chapter for urban tax en-
terprise zones shall be allocated so as to reserve an
equal amount for each urban zone that may be des-
ignated prior to the end of the calendar year begin-
ning during the fiscal year for which such amounts
were made available, pursuant to the annual limits
on zones specified in section 1391 of the Internal
Revenue Code of 1986.
(2) RURAL ZONES.—The amounts available for
each fiscal year under this chapter for rural develop-
ment investment zones shall be allocated so as to re-
serve an equal amount for each rural development
investment zone that may be designated prior to the
end of the calendar year beginning during the fiscal
year for which such amounts were made available,
pursuant to the annual limits on zones specified in
section 1391 of the Internal Revenue Code of 1986.
(d) SET ASIDE.—Of the amounts available pursuant
to subsection (a) for fiscal year 1993, the Interagency
Council established under section 242 shall make not less
than $5,000,000 available for the access to jobs/reverse
commuting demonstration program under section 282.
(e) AVAILABILITY.—Notwithstanding any other pro-
vision of law, amounts available pursuant to authoriza-
tions under this chapter shall remain available until the
end of the fiscal year following the year for which such
amounts are appropriated.
SEC. 223. USE OF AMOUNTS.
(a) IN GENERAL.—The assistance allocated for a fis-
cal year under section 222 on behalf of each tax enterprise
zone shall be available only for carrying out selected pro-
grams within the tax enterprise zone, in accordance with
the neighborhood aid plan of the tax enterprise zone for
the fiscal year approved under section 243 and subject to
the provisions of this section.
(b) ALLOCATION AMONG PROGRAM CATEGORIES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), of the total amount of assistance provided
under this chapter on behalf of a tax enterprise zone
for any fiscal year, the sum of the amounts used to
carry out selected programs referred to under any
one of paragraphs (1) through (6) of section 241
may not exceed 20 percent of such total amount.
(2) WAIVER OF CAPS.—Pursuant to a request
contained in an neighborhood aid plan under section
243, the interagency council may provide that the
requirement under paragraph (1) shall not apply
with respect to amounts for the fiscal year involved
that are used to carry out selected programs under
the plan, except that of the total amount of assist-
ance provided under this chapter on behalf of such
tax enterprise zone for the fiscal year, the sum of
the amounts used to carry out selected programs re-
ferred to under any single paragraph under section
241 may not exceed 30 percent of such total amount
and may not be less than 5 percent of such total
amount.
(c) PROVISION OF ASSISTANCE.—Upon the approval
of a neighborhood aid plan under section 243 for a tax
enterprise zone, the appropriate Federal agency head for
each selected program under the approved plan shall make
available on behalf of the enterprise zone (under such pro-
gram and through the appropriate eligible entity), from
amounts available on behalf of such zone pursuant to sec-
tion 222 for the fiscal year involved, the amount of assist-
ance determined in accordance with the approved plan.
(d) 
SUPPLEMENTATION
REQUIREMENT.—Any
amounts provided under this chapter shall be in supple-
ment to, and shall not supplant, any Federal, State, local,
or private funds from other sources already used, or com-
mitted for use, for programs, projects, activities, and serv-
ices assisted under this chapter or comparable to such pro-
grams, projects, activities, and services. No appropriate
Federal agency head may reduce the usual allocations with
respect to any jurisdiction under any eligible program be-
cause such jurisdiction allocates funds under this chapter
to any of such programs.
CHAPTER 2—MODEL NEIGHBORHOOD AID
PROGRAM
SEC. 231. PURPOSE.
The purposes of this chapter are—
(1) to encourage communities to develop coordi-
nated and comprehensive neighborhood aid plans,
with the participation of various governmental, com-
munity, neighborhood, law enforcement, business,
school and other representatives, that target the de-
livery of Federal, State, local, and private assistance
to the community in an effective and coordinated
manner; and
(2) to provide for communities to request fund-
ing under various Federal assistance programs by
submission of the single comprehensive plan, to bet-
ter coordinate the provision of assistance under such
programs.
SEC. 232. SINGLE APPLICATIONS BY LOCAL GOVERNMENTS
FOR FUNDING UNDER ELIGIBLE PROGRAMS.
(a) IN GENERAL.—The Interagency Council estab-
lished under section 242 shall carry out a program under
this subtitle to make assistance for each fiscal year under
the eligible programs referred to in section 241 available
to entities eligible to receive and administer such assist-
ance in the fiscal year, pursuant to the submission and
approval of a single coordinated and comprehensive neigh-
borhood aid plan under section 243 for such year on behalf
of such entities by a unit of general local government.
(b) TREATMENT OF NEIGHBORHOOD AID PLAN.—
Except as provided in section 234, each appropriate Fed-
eral agency head for each selected program under a neigh-
borhood aid plan submitted in accordance with the re-
quirements of this chapter and chapter 3 shall treat the
plan as an application for assistance under the selected
program for the fiscal year submitted in full compliance
with the requirements for requesting or applying for as-
sistance under the program.
SEC. 233. AVAILABILITY AND USE OF AMOUNTS.
(a) AVAILABILITY.—Any amounts made available for
a fiscal year to carry out the eligible programs may be
made available pursuant to an approved plan for such
year, except that the amounts made available in accord-
ance with section 221 may be made available only as pro-
vided in this subtitle.
(b) USE.—Any assistance provided on behalf of a
unit of general local government pursuant to an approved
plan for the fiscal year shall be available only for carrying
out the selected programs under the plan in the amounts
and manner provided in the plan.
(c) PROVISION OF ASSISTANCE.—Upon the approval
of a neighborhood aid plan under section 243 for a unit
of general local government, the appropriate Federal agen-
cy head for each selected program under the approved
plan shall make available on behalf of the unit of general
local government (under such program and through the
appropriate eligible entity) the amount of assistance for
the fiscal year involved that is approved under the plan
by the Interagency Council.
(d) WAIVER
OF PROGRAM REQUIREMENTS.—The
Interagency Council may waive the applicability of any
Federal laws and regulations relating to the eligible pro-
grams to the extent necessary to facilitate providing as-
sistance under eligible programs pursuant to plans for as-
sistance under this chapter.
SEC. 234. PRIORITY IN FUNDING.
In allocating any amounts made available for a fiscal
year to carry out each eligible program (that is not allo-
cated based on a formula), the appropriate Federal agency
head shall give priority to providing such amounts pursu-
ant to any neighborhood aid plan for the fiscal year sub-
mitted under this chapter that (1) is approved by the
Interagency Council with respect to such program, and (2)
under which such program is a selected program.
SEC. 235. TREATMENT OF PREVIOUSLY APPROVED WEED
AND SEED COMMUNITIES.
(a) TREATMENT.—Any strategy under subsection (b)
shall be considered to be a neighborhood aid plan submit-
ted in accordance with the requirements of this chapter
and chapter 3, except to the extent that the Interagency
Council for Neighborhood Aid established under section
242 requires the unit of general local government submit-
ting the strategy to amend the strategy for purposes of
including any information necessary to facilitate the provi-
sion of assistance under this chapter. If any such unit of
general government submits the additional information re-
quired by such Interagency Council, the strategy shall be
considered to be a neighborhood aid plan approved under
section 243, except that the Interagency Council may exer-
cise any authority under section 243(f)(2)(B) with respect
to such strategy.
(b) IDENTIFICATION
OF PREVIOUSLY APPROVED
WEED AND SEED STRATEGIES.—A strategy referred to
in subsection (a) is any comprehensive neighborhood aid
strategy of any unit of general local government approved,
before the date of the enactment of this Act, by the inter-
agency council responsible for coordinating the weed and
seed program activities in connection with amounts made
available for the Executive Office of Weed and Seed by
Public Law 102–395 (106 Stat. 1830), and shall include
any such strategy submitted by a unit of general local gov-
ernment and approved by such interagency council but not
funded with the amounts made available by such Act.
SEC. 236. ONE-TIME STRATEGY IMPLEMENTATION GRANTS.
To the extent amounts are available to carry out this
section, the Interagency Council shall make grants to
units of general local government for which neighborhood
aid plans have been approved pursuant to this chapter,
subject to the following requirements:
(1) USE.—Amounts from a grant under this
section shall be used by the unit of general local gov-
ernment or the eligible entities referred to in the ap-
proved plan only for the following purposes:
(A) LOCAL COORDINATING BOARD.—To es-
tablish a permanent local coordinating board
under section 243(c), which shall carry out the
functions required under such section and ad-
vise the local government and such entities re-
garding implementation of any approved plans
of the local government pursuant to this
chapter.
(B) UNIQUE OR ESSENTIAL ACTIVITIES.—
To the extent that such use is authorized in the
approved plan of the unit of general local gov-
ernment, to carry out any unique or essential
aspect of the approved plan of the unit of gen-
eral local government for which funding is not
available under the selected programs for which
funding is provided under the approved plan.
(C) SUPPLEMENTATION
OF
SELECTED
PROGRAMS.—To the extent that such use is not
prohibited by the Interagency Council in the ap-
proved plan of the unit of general local govern-
ment, to supplement amounts provided under
the approved plan for carrying out activities
under selected programs.
(2) ONE-TIME GRANTS.—No community may be
awarded more than 1 grant under this section.
(3) GRANT LIMIT.—No grant awarded under
this section may exceed $1,000,000.
(4) DISBURSEMENT.—The Interagency Council
may disburse the amounts of any grant awarded
under this section to the unit of general local gov-
ernment in increments over a reasonable period of
time, as determined by the Council, beginning upon
the availability of such grant amounts.
CHAPTER 3—ELIGIBLE PROGRAMS AND
INTERAGENCY COUNCIL FOR NEIGH-
BORHOOD AID
SEC. 241. ELIGIBLE PROGRAMS.
Assistance may be provided under chapters 1 and 2
for carrying out the following activities, projects, and pro-
grams:
(1) CRIME AND CRIMINAL JUSTICE.—
(A) Community policing projects and ac-
tivities under the Edward Byrne Memorial
State and Local Law Enforcement Assistance
Program under part E of title I of the Omnibus
Crime Control and Safe Streets Act of 1968
(42 U.S.C. 3751 et seq.).
(B) Chapter B of subpart 2 of part E of
title I of the Omnibus Crime Control and Safe
Streets Act of 1968.
(C) Projects and activities under chapter 1
of subtitle B of title III of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11801 et seq.).
(2) JOB TRAINING.—
(A) The Young Adult Employment Dem-
onstration program under part K of title IV of
the Job Training Partnership Act (as added by
section 241 of this Act).
(B) The Job Corps program under part B
of title IV of the Job Training Partnership Act
(29 U.S.C. 1692 et seq.).
(C) Title II of the Job Training Partner-
ship Act (29 U.S.C. 1601 et seq.).
(D) The American Conservation and Youth
Corps program under subtitle C of title I of the
National and Community Service Act of 1990
(42 U.S.C. 12541 et seq.).
(E) The Access to Jobs/Reverse Commut-
ing Demonstration Program established under
section 286 of this Act.
(3) EDUCATION.—
(A) The Head Start program under the
Head Start Act (42 U.S.C. 9831 et seq.).
(B) The programs under the Carl D. Per-
kins Vocational Educational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.).
(C) Projects under the Comprehensive
Child Development Act (42 U.S.C. 9881 et
seq.).
(D) Activities under the Child Care and
Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.).
(E) The programs under chapter 1 of title
I of the Elementary and Secondary Education
Act of 1965.
(F) The TRIO programs under part A of
title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.).
(G) The programs under the Adult Edu-
cation Act (20 U.S.C. 1201 et seq.).
(H) Literacy activities authorized under
the National Literacy Act of 1991.
(4) HEALTH, NUTRITION AND FAMILY ASSIST-
ANCE.—
(A) The special supplemental food program
for women, infants, and children under section
17 of the Child Nutrition Act of 1966.
(B) The following programs under the
Public Health Service Act (42 U.S.C. 201 et
seq.):
(i) Capacity expansion of substance
abuse treatment facilities.
(ii) Substance abuse treatment for in-
dividuals under criminal justice super-
vision.
(iii) Substance abuse treatment for
pregnant and postpartum women.
(iv) Community prevention grants re-
garding substance abuse.
(v) Substance abuse treatment im-
provement grants.
(vi) The programs under sections 329,
330, 340 and 340A of such Act (42 U.S.C.
254c).
(C) The programs under title XXVI of the
Public Health Service Act (42 U.S.C. 300ff–21
et seq.).
(D) The family support programs under
subtitle F of title VII of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 1148
et seq.).
(E) Projects for high risk youth under title
V of the Public Health Service Act (42 U.S.C.
290aa et seq.).
(F) Emergency child protective service
grants under section 107 of the Child Abuse
Prevention and Treatment Act (42 U.S.C.
5106a).
(G) Family support centers and family re-
source and support programs under sections
933 and 934(d) of the Augustus F. Hawkins
Human Services Reauthorization Act of 1990
(Public Law 101–501).
(5) HOUSING
AND
COMMUNITY
DEVELOP-
MENT.—
(A) The community development block
grant program under title I of the Housing and
Community Development Act of 1974 (42
U.S.C. 5301 et seq.).
(B) The public and Indian housing mod-
ernization program under section 14 of the
United States Housing Act of 1937 (42 U.S.C.
14371).
(C) The public and assisted housing drug
elimination program under chapter 2 of subtitle
C of title V of the Anti-Drug Abuse Act of
1988 (42 U.S.C. 11901 et seq.).
(D) Contracts for rental assistance at-
tached to structures pursuant to paragraph (2)
of section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f).
(E) The HOME investment partnership
program under title II of the Cranston-Gon-
zalez National Affordable Housing Act (42
U.S.C. 12721 et seq.).
(F) The self-help housing technical assist-
ance grant program under section 523 of the
Housing Act of 1949 (42 U.S.C. 1490c).
(G) Rural housing preservation grants
under section 533 of the Housing Act of 1949
(42 U.S.C. 1490m).
(H) Rural rental housing loans under sec-
tion 515 of the Housing Act of 1949 (42
U.S.C. 1485).
(I) Rural rental housing assistance pay-
ments under section 521(a)(2) of the Housing
Act of 1949 (42 U.S.C. 1490a).
(J) Rural water and waste disposal grants
pursuant to paragraphs (2) and (6) of section
306(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1926(a)) and water
and waste facility loans and grants under sec-
tion 306C of such Act.
(K) Private business enterprise grants
under section 310B(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1926).
(L) Loan guarantees under section 108 of
the Housing and Community Development Act
(as amended by section 232 of this Act).
(M) Outreach and assistance for socially
disadvantaged farmers and ranchers under sec-
tion 2501 of the Food, Agriculture, and Trade
Act of 1990 (7 U.S.C. 2279).
(N) Public Housing Family Investment
Centers under section 22 of the United States
Housing Act of 1937 (42 U.S.C. 1437t).
(O) The Youthbuild program under sub-
title D of title IV of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C.
12899 et seq.).
(P) The Neighborhood Reinvestment Cor-
poration under title VI of the Housing and
Community Development Amendments of 1978
(42 U.S.C. 8101 et seq.).
(6) OTHERS.—Any other activities, projects,
and programs authorized in law that are consistent
with the purposes of this subtitle, as the Interagency
Council may provide.
SEC. 242. INTERAGENCY COUNCIL FOR NEIGHBORHOOD
AID.
(a) ESTABLISHMENT.—There is hereby established
an interagency council to be known as the Interagency
Council for Neighborhood Aid.
100
(b) MEMBERSHIP.—The members of the council shall
be the Secretary of Agriculture, the Secretary of Edu-
cation, the Secretary of Health and Human Services, the
Secretary of Housing and Urban Development, the Sec-
retary of Labor, the Director of the Office of National
Drug Control Policy, the Attorney General of the United
States and the Chairperson of the Commission on
National and Community Service.
(c) DUTIES.—The Interagency Council shall—
(1) review and approve neighborhood aid plans
for assistance under chapters 1 and 2 submitted
pursuant to section 243;
(2) direct the appropriate Federal agency head
to provide assistance under the selected programs
under approved plans in the amount approved, pur-
suant to the provisions of chapters 1 and 2; and
(3) carry out any other responsibilities of the
Council as provided under this subtitle.
SEC. 243. NEIGHBORHOOD AID PLANS.
(a) ESTABLISHMENT
OF
APPLICATION
PROCE-
DURE.—The Interagency Council shall establish, by regu-
lation, a procedure for submission and approval of a single
comprehensive neighborhood aid plan for a fiscal year as
an application under this section for receiving assistance
for the fiscal year under chapter 1 or 2.
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(b) REQUIREMENTS.—The Interagency Council shall
provide for the form and manner of submission of neigh-
borhood aid plans and shall require that the plan be sub-
mitted—
(1) in the case of a plan for assistance under
chapter 1, by the State, unit of local government, or
economic or community development corporation,
that submitted the nomination for designation of the
area designated as a tax enterprise zone, and
promptly after such designation; and
(2) in the case of a plan for assistance under
chapter 2, by a unit of general local government.
(c) LOCAL COORDINATION.—
(1) PURPOSES.—Each neighborhood aid plan
submitted under this section shall be developed in
coordination and consultation with a local coordinat-
ing board under paragraph (2). The local coordinat-
ing board shall ensure that the programs, projects,
activities, and services under section 241(1) carried
out with amounts provided pursuant to an approved
plan are sufficiently coordinated with the other pro-
grams, projects, activities, and services carried out
pursuant to the plan, and that all such programs,
projects, activities, and services are coordinated with
law enforcement efforts within the area nominated
102
for designation as a tax enterprise zone or the area
served under the plan submitted by the unit of gen-
eral local government, as appropriate.
(2) 
MEMBERSHIP.—The 
local 
coordinating
board referred to in paragraph (1) shall include rep-
resentatives of units of local government within such
area, representatives of law enforcement agencies
having jurisdiction within such area, residents of the
area, and community leaders (including local busi-
ness persons, bankers, architects or planners, rep-
resentatives of school boards, and representatives of
nonprofit community-based organizations such as
community development corporations, community ac-
tion agencies, community health centers, Head Start
agencies, agencies or organizations establishing Job
Corps centers, and local Neighborhood Housing
Services organizations).
(d) CONTENTS.—Each neighborhood aid plan for a
fiscal year shall include the following information:
(1) A list of the eligible programs for which
funding is requested for the fiscal year and a general
description of the types of activities to be carried out
with such assistance.
(2) A statement of—
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(A) in the case of a plan for assistance
under chapter 1 for a tax enterprise zone, the
percentage of the total amount of any funding
received for the fiscal year under chapter 1 that
will be used for each selected program; and
(B) in the case of a plan for assistance
under chapter 2 on behalf of a unit of general
local government, the amount of funding re-
quested for the fiscal year for each selected pro-
gram.
(3) A statement documenting the entities that
will receive any assistance provided for the selected
programs on behalf of the tax enterprise zone or
unit of general local government, as appropriate, and
the entities’ eligibility for such assistance.
(4) A statement documenting the membership
of the local coordinating board organized pursuant
to subsection (c) and describing the coordination be-
tween the programs, projects, activities, and services
assisted pursuant to the plan and local law enforce-
ment efforts in the tax enterprise zone or unit of
general local government, as appropriate.
(5) In the case of a plan for assistance under
chapter 1, a request for any waiver of the require-
ment under section 223(b)(1) (as authorized in