I 
109TH CONGRESS 
1ST SESSION H. R. 2182 
To promote freedom, fairness, and economic opportunity by establishing a 
National Enterprise Zone system to promote prosperity in economically 
depressed areas. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 5, 2005 
Mr. FORTUN˜O (for himself and Mr. RYAN of Wisconsin) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To promote freedom, fairness, and economic opportunity by 
establishing a National Enterprise Zone system to pro-
mote prosperity in economically depressed areas. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘National Enterprise Zone Act of 2005’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. National Enterprise Zones. 
‘‘SUBCHAPTER Z—NATIONAL ENTERPRISE ZONES 
‘‘Sec. 1400M. National Enterprise Zone designation procedure.
‘‘Sec. 1400N. National Enterprise Zone Eligibility Criteria. 
‘‘Sec. 1400O. Effect of National Enterprise Zone designation on individ-
uals, estates and trusts. 
‘‘Sec. 1400P. National Enterprise Zone individual taxable income. 
‘‘Sec. 1400Q. Effect of National Enterprise Zone designation on corpora-
tions. 
‘‘Sec. 1400R. National Enterprise Zone Corporate taxable income. 
‘‘Sec. 1400S. Conduct of an active trade or business within a National En-
terprise Zone by corporations, partnerships and sole pro-
prietors. 
‘‘Sec. 1400T. Definitions and special rules. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) a higher level of private sector economic ac-
tivity is necessary to alleviate poverty and unemploy-
ment in economically depressed regions of the 
United States; 
(2) removing tax disincentives to reside or do 
business in economically depressed areas is an effec-
tive means of promoting economic growth, develop-
ment, employment, a higher standard of living and 
a higher quality of life in economically depressed 
areas; 
(3) lower marginal tax rates on work, savings 
and investment in economically depressed regions 
will promote employment, business activity and de-
velopment in economically depressed areas; and 
(4) improved taxation of business investment in 
plant, equipment and inventories in economically de-
pressed areas will encourage businesses to operate in 
those areas.
SEC. 3. NATIONAL ENTERPRISE ZONES. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after sub-
chapter Y the following new subchapter: 
‘‘Subchapter Z—National Enterprise Zones 
‘‘Sec. 1400M. National Enterprise Zone designation procedure. 
‘‘Sec. 1400N. National Enterprise Zone eligibility criteria. 
‘‘Sec. 1400O. Effect of National Enterprise Zone designation on individuals, es-
tates and trusts. 
‘‘Sec. 1400P. National Enterprise Zone individual taxable income. 
‘‘Sec. 1400Q. Effect of National Enterprise Zone designation on corporations. 
‘‘Sec. 1400R. National Enterprise Zone corporate taxable income. 
‘‘Sec. 1400S. Conduct of an active trade or business within a National Enter-
prise Zone by corporations, partnerships and sole proprietors. 
‘‘Sec. 1400T. Definitions and special rules. 
‘‘SEC. 1400M. NATIONAL ENTERPRISE ZONE DESIGNATION 
PROCEDURE. 
‘‘(a) NOMINATED ZONE.—The governor of a State or 
United States territory or the Mayor of the District of 
Columbia may nominate one or more zones for consider-
ation by the Secretary. This nomination shall take the 
form of a written application submitted in the manner and 
form prescribed by the Secretary. Said application shall 
contain all of the information necessary to determine 
whether a nominated zone meets the National Enterprise 
Zone eligibility criteria. 
‘‘(b) APPLICATION DEADLINE.—The nomination ap-
plication shall be submitted after January 1st and before 
February 28th of the year prior to the proposed effective 
date of the zone.