I 
108TH CONGRESS 
2D SESSION 
H. R. 4193 
To amend the Internal Revenue Code of 1986 to allow for the expansion 
of areas designated as renewal communities based on 2000 census data 
and to treat certain census tracts with low populations as low-income 
communities for purposes of the new markets tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 22, 2004 
Mr. ISTOOK 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 allow for 
the expansion of areas designated as renewal commu-
nities based on 2000 census data and to treat certain 
census tracts with low populations as low-income commu-
nities for purposes of the new markets tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXPANSION OF DESIGNATED RENEWAL COM-
MUNITY AREA BASED ON 2000 CENSUS DATA. 
(a) IN GENERAL.—Section 1400E of the Internal 
Revenue Code of 1986 (relating to designation of renewal
communities) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) EXPANSION OF DESIGNATED AREA BASED ON 
2000 CENSUS.— 
‘‘(1) IN GENERAL.—At the request of all gov-
ernments which nominated an area as a renewal 
community, the Secretary of Housing and Urban 
Development may expand the area of such commu-
nity to include any census tract if— 
‘‘(A)(i) at the time such community was 
nominated, such community would have met the 
requirements of this section using 1990 census 
data even if such tract had been included in 
such community, and 
‘‘(ii) such tract has a poverty rate using 
2000 census data which exceeds the poverty 
rate for such tract using 1990 census data, or 
‘‘(B)(i) such community would be de-
scribed in subparagraph (A)(i) but for the fail-
ure to meet one or more of the requirements of 
paragraphs (2)(C)(i), (3)(C), and (3)(D) of 
subsection (c) using 1990 census data, 
‘‘(ii) such community, including such tract, 
has a population of not more than 200,000
using either 1990 census data or 2000 census 
data, 
‘‘(iii) such tract meets the requirement of 
subsection (c)(3)(C) using 2000 census data, 
and 
‘‘(iv) such tract meets the requirement of 
subparagraph (A)(ii). 
‘‘(2) EXCEPTION FOR CERTAIN CENSUS TRACTS 
WITH LOW POPULATION IN 1990.—In the case of any 
census tract which did not have a poverty rate deter-
mined by the Bureau of the Census using 1990 cen-
sus data, paragraph (1)(B) shall be applied without 
regard to clause (iv) thereof. 
‘‘(3) SPECIAL
RULE
FOR
CERTAIN
CENSUS 
TRACTS WITH LOW POPULATION IN 2000.—At the re-
quest of all governments which nominated an area 
as a renewal community, the Secretary of Housing 
and Urban Development may expand the area of 
such community to include any census tract if— 
‘‘(A) either— 
‘‘(i) such tract has no population 
using 2000 census data, or 
‘‘(ii) no poverty rate for such tract is 
determined by the Bureau of the Census 
using 2000 census data,
‘‘(B) such tract is one of general distress, 
and 
‘‘(C) such community, including such tract, 
meets the requirements of subparagraphs (A) 
and (B) of subsection (c)(2). 
‘‘(4) PERIOD
IN
EFFECT.—Any expansion 
under this subsection shall take effect as provided in 
subsection (b).’’ 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in the 
amendments made by section 101 of the Community Re-
newal Tax Relief Act of 2000. 
SEC. 2. POPULATION CENSUS TRACTS WITH LOW POPU-
LATIONS TREATED AS LOW-INCOME COMMU-
NITIES FOR PURPOSES OF NEW MARKETS 
TAX CREDIT. 
(a) IN GENERAL.—Subsection (e) of section 45D of 
the Internal Revenue Code of 1986 (relating to low-income 
community) is amended by adding at the end the following 
new paragraph: 
‘‘(4) TRACTS WITH LOW POPULATION.—A pop-
ulation census tract with a population of less than 
2,000 shall be treated as a low-income community 
for purposes of this section if such tract—
‘‘(A) is within an empowerment zone, the 
designation of which is in effect under section 
1391, and 
‘‘(B) is contiguous to one or more low-in-
come communities (determined without regard 
to this paragraph).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to investments made after the date 
of the enactment of this Act. 
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