I 
112TH CONGRESS 
1ST SESSION H. R. 1611 
To amend the Internal Revenue Code of 1986 to provide for the designation 
of Clean Energy Business Zones and for tax incentives for the construc-
tion of, and employment at, energy-efficient buildings and clean energy 
facilities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 15, 2011 
Mr. GRIMM (for himself and Mr. BARTLETT) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Small Business, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for the designation of Clean Energy Business Zones and 
for tax incentives for the construction of, and employ-
ment at, energy-efficient buildings and clean energy fa-
cilities, and for other purposes. 
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 ‘‘Clean Energy Business 
Zone Act of 2011’’ and as the ‘‘Clean Energy Empower-
ment Zone Act of 2011’’. 
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SEC. 2. DESIGNATION OF CLEAN ENERGY BUSINESS ZONES 
AND TAX INCENTIVES WITH RESPECT TO 
SUCH ZONES. 
(a) IN GENERAL.—Chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subchapter: 
‘‘Subchapter Z—Clean Energy Business Zones 
‘‘PART I. DESIGNATION. 
‘‘PART II. TAX BENEFITS. 
‘‘PART I—DESIGNATION 
‘‘Sec. 1400V–1. Designation of Clean Energy Business Zones. 
‘‘SEC. 1400V–1. DESIGNATION OF CLEAN ENERGY BUSINESS 
ZONES. 
‘‘(a) IN GENERAL.—The Secretary may designate 40 
clean energy business zones. 
‘‘(b) CONSULTATION.—In designating such zones, the 
Secretary shall consult with— 
‘‘(1) the Secretary of Housing and Urban De-
velopment in the case of urban areas, and 
‘‘(2) the Secretary of Agriculture in the case of 
rural areas. 
‘‘(c) DESIGNATION CRITERIA.—In designating such 
zones, the Secretary shall consider the following factors: 
‘‘(1) Whether the area already has a clean en-
ergy infrastructure or otherwise has a deteriorating 
conventional energy infrastructure. 
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‘‘(2) Whether the area is reliant on carbon-in-
tensive industries and, consequently, job loss is an-
ticipated due to the transition to a clean energy 
economy. 
‘‘(3) Whether the area is home to business sec-
tors that could complement new clean energy indus-
tries. 
‘‘(4) Whether the area has other environmental 
or economic conditions conducive to the establish-
ment of facilities relating to the manufacture or re-
search of clean energy or clean energy technologies, 
including the components used in such manufacture 
or research and the production of clean energy. 
‘‘(d) SIZE.—An area may be designated as a Clean 
Energy Business Zone only if it meets the requirements 
of section 1392(a)(3). 
‘‘(e) PERIOD DESIGNATIONS MAY BE MADE.—A des-
ignation may be made under subsection (a) only after 
2011 and before 2014. 
‘‘(f) PERIOD FOR WHICH DESIGNATION IS IN EF-
FECT.—Any designation under this section shall remain 
in effect during the period beginning on the date of the 
designation and ending on the close of the 10th calendar 
year beginning on or after such date of designation. 
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‘‘PART II—TAX BENEFITS 
‘‘Sec. 1400V–2. Tax benefits for clean energy business zones. 
‘‘SEC. 1400V–2. TAX BENEFITS FOR CLEAN ENERGY BUSI-
NESS ZONES. 
‘‘(a) WAGE
CREDIT.—For purposes of section 
1396— 
‘‘(1) IN
GENERAL.—Subject to the modifica-
tions in paragraph (2), a Clean Energy Business 
Zone shall be treated as an empowerment zone. 
‘‘(2) MODIFICATIONS.—In applying section 
1396 with respect to Clean Energy Business 
Zones— 
‘‘(A) IN GENERAL.—In the case of quali-
fied wages— 
‘‘(i) subsection (b) thereof shall be ap-
plied by substituting ‘30 percent’ for ‘20 
percent’, and 
‘‘(ii) subsection (c) thereof shall be 
applied by substituting ‘$20,000’ for 
‘$15,000’ each place it appears. 
‘‘(B) QUALIFIED WAGES.—For purposes of 
subparagraph (A), the term ‘qualified wages’ 
means qualified zone wages (as defined in sec-
tion 1396(c)) for services performed by the em-
ployee— 
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‘‘(i) in the construction of any quali-
fied Green building, or 
‘‘(ii) in any qualified clean energy fa-
cility. 
‘‘(C) COORDINATION
WITH
BASIC
CRED-
IT.—The $15,000 amount in section 1396(c)(2) 
(without regard to this subsection) shall be re-
duced for any calendar year by the amount of 
wages paid or incurred during such year which 
are taken into account in determining the credit 
under this subsection. 
‘‘(3) CREDIT TO BE REFUNDABLE.—So much 
of the credit allowable by section 1396 solely by rea-
son of this subsection shall be treated as allowed 
under subpart C of part IV of subchapter A of this 
chapter. 
‘‘(b) EXPANSION OF WORK OPPORTUNITY CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 51, 
a Clean Energy Business Zone employee shall be 
treated as a member of a targeted group. 
‘‘(2) CLEAN ENERGY BUSINESS ZONE BUSINESS 
EMPLOYEE.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘Clean En-
ergy Business Zone employee’ means, with re-
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spect to any period, any employee of a Clean 
Energy Business Zone business if— 
‘‘(i) the principal place of abode of 
such employee during such period is within 
a Clean Energy Business Zone, 
‘‘(ii) substantially all the services per-
formed during such period by such em-
ployee for such business are performed— 
‘‘(I) in the construction of any 
qualified Green energy building, or 
‘‘(II) in a qualified clean energy 
facility, and 
‘‘(iii) such employee had been em-
ployed in a carbon-intensive business at 
any time during the 1-year period ending 
on the date that the individual was first 
hired by the employer. 
‘‘(B) CLEAN
ENERGY
BUSINESS
ZONE 
BUSINESS.—The term ‘Clean Energy Business 
Zone business’ means any trade or business— 
‘‘(i) which is located in a Clean En-
ergy Business Zone, and 
‘‘(ii) at least 15 percent of the em-
ployees of which are residents of a Clean 
Energy Business Zone. 
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