I 
115TH CONGRESS 
1ST SESSION 
H. R. 405 
To amend the Internal Revenue Code of 1986 to provide additional new 
markets tax credits for distressed coal communities. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 10, 2017 
Mr. JENKINS of West Virginia 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 provide 
additional new markets tax credits for distressed coal 
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 the ‘‘Creating Opportunities 
for Rural Economies Act’’ or the ‘‘CORE Act’’. 
SEC. 2. ADDITIONAL NEW MARKETS TAX CREDIT FOR DIS-
TRESSED COAL COMMUNITIES. 
(a) IN GENERAL.—Section 45D(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
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‘‘(4) SET ASIDE OF PORTION OF LIMITATION 
FOR DISTRESSED COAL COMMUNITIES.— 
‘‘(A) IN GENERAL.—For any calendar year 
after 2016, not less than 5 percent of the new 
markets tax credit limitation shall be allocated 
to qualified community development entities in 
connection with qualified investments the pro-
ceeds of which are substantially used to make 
qualified coal community investments. 
‘‘(B) QUALIFIED
COAL
COMMUNITY
IN-
VESTMENT.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied coal community investment’ means— 
‘‘(I) any capital or equity invest-
ment in, or loan to, any qualified ac-
tive distressed coal community busi-
ness, 
‘‘(II) the purchase from another 
community development entity of any 
loan made by such entity which is a 
qualified coal community investment, 
‘‘(III) financial counseling and 
other services specified in regulations 
prescribed by the Secretary to busi-
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nesses located in, and residents of, 
distressed coal communities, and 
‘‘(IV) any equity investment in, 
or loan to, any qualified community 
development 
entity 
in 
connection 
qualified investments the proceeds of 
which are substantially used to make 
qualified coal community investments. 
‘‘(ii) QUALIFIED ACTIVE DISTRESSED 
COAL
COMMUNITY
BUSINESS.—The term 
‘qualified active coal community business’ 
means any business which would be a 
qualified active low-income community 
business if paragraphs (2) and (3) of sub-
section (d) were applied by substituting 
‘distressed coal community’ for ‘low-income 
community’ each place it appears. 
‘‘(iii) 
DISTRESSED
COAL
COMMU-
NITY.— 
‘‘(I) IN
GENERAL.—The term 
‘distressed coal community’ means 
any low-income community which is 
located in a county which— 
‘‘(aa) was one of the 30 
counties with the biggest employ-
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ment decrease among coal opera-
tors (as determined under reports 
issued by the Mine Safety and 
Health Administration) for an 
applicable period, or 
‘‘(bb) is contiguous to a 
county which— 
‘‘(AA) is described in 
item (aa) and is within the 
same State as such county, 
and 
‘‘(BB) contains not less 
than 1 low-income commu-
nity. 
‘‘(II) APPLICABLE
PERIODS.— 
For purposes of subclause (I)(aa), the 
term ‘applicable period’ means any of 
the following periods: 
‘‘(aa) Calendar year 2013 
compared to calendar year 2012. 
‘‘(bb) Calendar year 2014 
compared to calendar year 2013. 
‘‘(cc) Calendar year 2015 
compared to calendar year 2014. 
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‘‘(C) LIMITATION OF ALLOCATION OF SET 
ASIDE.— 
‘‘(i) IN GENERAL.—In allocating the 
portion of the new markets tax credit limi-
tation to which subparagraph (A) applies, 
the Secretary shall ensure that, with re-
spect to any eligible State, not less than 
the minimum percentage of such limitation 
is allocated to qualified community devel-
opment entities making qualified coal com-
munity investments in such eligible State. 
‘‘(ii) MINIMUM
PERCENTAGE.—For 
purposes of clause (i), the minimum per-
centage for any eligible State is the per-
centage equal to 80 percent of the ratio 
of— 
‘‘(I) the qualified coal operator 
employment decrease in such State, to 
‘‘(II) the total qualified coal op-
erator employment decrease in all eli-
gible States. 
‘‘(iii) QUALIFIED COAL OPERATOR EM-
PLOYMENT
DECREASE.—For purposes of 
clause (ii), the term ‘qualified coal operator 
employment decrease’ means, with respect 
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to any eligible State, the aggregate amount 
of employment decrease among coal opera-
tors for all counties in such State— 
‘‘(I) in which there is a low-in-
come community, and 
‘‘(II) which are taken into ac-
count under item (aa) of subpara-
graph (B)(iii)(I). 
‘‘(iv) ELIGIBLE STATE.—For purposes 
of this subparagraph, the term ‘eligible 
State’ means any State in which there is a 
distressed coal community. 
‘‘(D) 
APPLICATION
OF
CARRYOVER.— 
Paragraph (3) shall be applied separately with 
respect to amounts described in subparagraph 
(A).’’. 
(b) APPLICATION OF RECAPTURE RULES.—Section 
45D(g)(3)(B) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘(or, in the case of an investment 
described in subsection (f)(4), as required under such sub-
section)’’ after ‘‘(b)(1)(B)’’. 
Æ 
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