SEC. 2. DETROIT JOBS TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 9512. DETROIT JOBS TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Detroit Jobs Trust Fund’, consisting 
of such amounts as may be appropriated or credited to 
such fund as provided in this section or section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Detroit Jobs Trust Fund amounts 
equivalent to receipts in the Treasury of taxes (including 
all income, excise, and employment taxes whether imposed 
with respect to individuals or businesses) imposed under 
this title (with respect to periods after the date of the en-
actment of this section) which are (as determined by the 
Secretary) attributable to Detroit, Michigan. The city of 
Detroit, Michigan, shall provide the Secretary such infor-
mation as the Secretary may request for purposes of mak-
ing the determinations required under this subsection. For 
purposes of this subsection, the taxes imposed on a cor-
poration or other business entity shall not be treated as 
attributable to Detroit, Michigan, merely because the 
headquarters of such corporation or entity is located in 
Detroit, Michigan. 
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‘‘(c) EXPENDITURES.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, amounts in the Detroit Jobs 
Trust Fund shall (without need of any further ap-
propriation) be distributed annually by the Secretary 
to the city of Detroit, Michigan, to carry out the 
purposes described in paragraph (2). 
‘‘(2) USE
OF
EXPENDITURES.—Amounts dis-
tributed to the city of Detroit, Michigan, under this 
section shall be used for the following purposes and 
in the following order of priority: 
‘‘(A) First, of the amounts distributed with 
respect the annual period not in excess of the 
Detroit income tax suspension hold harmless 
amount, for any purpose determined by the city 
government of Detroit, Michigan. 
‘‘(B) Second, for payment of principal and 
interest on any general obligation issued by the 
city of Detroit, Michigan (to the extent of such 
obligations). 
‘‘(C) Third, for payment of principal and 
interest on obligations to which section 103 ap-
plies and the proceeds of which were used for 
the public schools of the city of Detroit, Michi-
gan (to the extent of such obligations). 
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‘‘(D) Fourth, for jobs development, public 
safety, education, business infrastructure, or 
public infrastructure (to the extent consistent 
with the plan described in paragraph (4)). 
‘‘(3) RESTRICTION
ON
DISTRIBUTIONS.—No 
distribution shall be made by the Secretary under 
paragraph (1) unless— 
‘‘(A) the city of Detroit, Michigan, does 
not impose an income tax with respect to the 
period to which such distribution relates, 
‘‘(B) such city has reduced the aggregate 
property taxes imposed by an amount not less 
than the reduction in the payment obligations 
of such city by reason of the payments de-
scribed in paragraph (2), 
‘‘(C) all prior distributions made to the 
city under paragraph (2) were used by the city 
in a manner consistent with the requirements of 
paragraph (2), and 
‘‘(D) such city has provided such informa-
tion to the Comptroller General of the United 
States as the Comptroller General may request 
to carry out section 2(b) of the Detroit Eco-
nomic Competitiveness Act. 
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‘‘(4) 5-YEAR DEVELOPMENT PLAN.—A plan is 
described in this paragraph if such plan— 
‘‘(A) is a 5-year plan describing develop-
ment goals for Detroit, Michigan, and detailing 
how distributions for purposes described in 
paragraph (2)(D) will be spent, 
‘‘(B) has been approved by simple majority 
vote of the City Council of Detroit, Michigan 
(after consultation with the Detroit Board of 
Education), and 
‘‘(C) has been submitted to, and approved 
by, the Secretary of the Treasury, the Secretary 
of Housing and Urban Development, and the 
Secretary of Education. 
No distribution shall be made under paragraph (1) 
for a purpose described in paragraph (2)(D) unless 
a plan described in this paragraph is in effect and 
all prior such distributions for such purposes were 
used in accordance with such plan. 
‘‘(5) SPECIAL RULES DURING PERIOD OF PLAN 
DEVELOPMENT.—During the period during which 
the plan described in paragraph (4) is developed 
(but not in excess of the 5-month period beginning 
on the date of the first distribution under paragraph 
(1)), amounts distributed may be used concurrently 
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for the purposes described in subparagraphs (A), 
(B), and (C) of paragraph (2). 
‘‘(6) DETROIT INCOME TAX SUSPENSION HOLD 
HARMLESS AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (2)(A), the term ‘Detroit income tax sus-
pension hold harmless amount’ means the 
amount (as determined by the Secretary) of 
revenue collected by the city of Detroit pursu-
ant to the income tax imposed by such city dur-
ing the calendar year preceding the calendar 
year which includes the date of the enactment 
of this section. 
‘‘(B) CROSS
REFERENCE.—For provision 
which requires suspension of the Detroit income 
tax, see paragraph (3)(A). 
‘‘(C) TAX
RETURNS
MAY
STILL
BE
RE-
QUIRED.—The city of Detroit, Michigan, shall 
not be treated as failing to satisfy the require-
ment of paragraph (3)(A) with respect to any 
period merely because taxpayers are required to 
file tax returns and report income with respect 
to such period. 
‘‘(7) AMOUNTS MADE AVAILABLE NOT TO RE-
DUCE OTHER FUNDING.—Amounts distributed to the 
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city of Detroit, Michigan, under this section shall 
supplement, and not supplant, any other funding 
(including any Federal funding) for such city. 
‘‘(d) TERMINATION.—No amount shall be distributed 
from, or appropriated to, the Detroit Jobs Trust Fund 
after the 5-year period beginning on the date of the enact-
ment of this section. Any amounts remaining in such 
Trust Fund at the end of such period shall be transferred 
to the general fund of the Treasury. The 5-year period 
specified in this subsection shall not be renewed or ex-
tended.’’. 
(b) GAO REPORTS.—The Comptroller General of the 
United States shall submit an annual report to Congress 
which— 
(1) describes the manner and purposes for 
which distributions made from the Detroit Jobs 
Trust Fund have been used, 
(2) describes the extent to which progress has 
been made toward meeting the development goals 
under the plan described in section 9512(c)(4) of the 
Internal Revenue Code of 1986 (as added by this 
section) and whether such progress is consistent 
with meeting such goals, and 
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(3) includes any recommendations the Comp-
troller General may have regarding improvements to 
the program described in section 9512 of such Code. 
The first such annual report shall be submitted not later 
than 90 days after the 1-year period beginning on the date 
of the enactment of this Act and the last such annual re-
port shall be submitted not later than 90 days after the 
date on which the Detroit Jobs Trust Fund terminates 
pursuant to section 9512(d) of such Code. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 9512. Detroit Jobs Trust Fund.’’. 
SEC. 3. ZERO CAPITAL GAINS RATE FOR CERTAIN NEW IN-
VESTMENTS IN DETROIT, MICHIGAN. 
(a) IN GENERAL.—Subchapter Y of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART IV—CERTAIN NEW INVESTMENTS IN 
DETROIT, MICHIGAN 
‘‘Sec. 1400V. Zero capital gains rate for certain new investments in Detroit, 
Michigan. 
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‘‘SEC. 1400V. ZERO CAPITAL GAINS RATE FOR CERTAIN NEW 
INVESTMENTS IN DETROIT, MICHIGAN. 
‘‘(a) IN GENERAL.—Gross income does not include 
any qualified capital gain from the sale or exchange of 
a specified new investment held for more than 1 year. 
‘‘(b) SPECIFIED NEW INVESTMENT.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘specified new in-
vestment’ means— 
‘‘(A) any qualified stock, 
‘‘(B) any qualified partnership interest, 
and 
‘‘(C) any qualified business property. 
‘‘(2) QUALIFIED STOCK.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘qualified stock’ 
means any stock in a domestic corporation if— 
‘‘(i) such stock is acquired by the tax-
payer during the 1-year period beginning 
on the date of the enactment of this sec-
tion, at its original issue (directly or 
through an underwriter) from the corpora-
tion solely in exchange for cash, 
‘‘(ii) as of the time such stock was 
issued, such corporation was a specified 
Detroit business (or, in the case of a new 
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corporation, such corporation was being or-
ganized for purposes of being a specified 
Detroit business), and 
‘‘(iii) during substantially all of the 
taxpayer’s holding period for such stock, 
such corporation qualified as a specified 
Detroit business. 
‘‘(B) REDEMPTIONS.—A rule similar to 
the rule of section 1202(c)(3) shall apply for 
purposes of this paragraph. 
‘‘(3) QUALIFIED
PARTNERSHIP
INTEREST.— 
The term ‘qualified partnership interest’ means any 
capital or profits interest in a domestic partnership 
if— 
‘‘(A) such interest is acquired by the tax-
payer during the 1-year period beginning on the 
date of the enactment of this section, from the 
partnership solely in exchange for cash, 
‘‘(B) as of the time such interest was ac-
quired, such partnership was a specified Detroit 
business (or, in the case of a new partnership, 
such partnership was being organized for pur-
poses of being a specified Detroit business), and 
‘‘(C) during substantially all of the tax-
payer’s holding period for such interest, such 
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partnership qualified as a specified Detroit 
business. 
A rule similar to the rule of paragraph (2)(B) shall 
apply for purposes of this paragraph. 
‘‘(4) QUALIFIED BUSINESS PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
business property’ means tangible property if— 
‘‘(i) such property was acquired by 
the taxpayer by purchase (as defined in 
section 179(d)(2)) during the 1-year period 
beginning on the date of the enactment of 
this section, 
‘‘(ii) the original use of such property 
in Detroit, Michigan, 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 specified Detroit busi-
ness of the taxpayer. 
‘‘(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— 
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‘‘(i) property which is substantially 
improved by the taxpayer before the end of 
the period described in subparagraph 
(A)(i), and 
‘‘(ii) any land on which such property 
is located. 
The determination of whether a property is sub-
stantially improved shall be made under clause 
(ii) of section 1400B(b)(4)(B), except that ‘the 
date of the enactment of section 1400V’ shall 
be substituted for ‘December 31, 1997’ in such 
clause. 
‘‘(c) QUALIFIED CAPITAL GAIN.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘qualified capital 
gain’ means any gain recognized on the sale or ex-
change of— 
‘‘(A) a capital asset, or 
‘‘(B) property used in the trade or busi-
ness (as defined in section 1231(b)). 
‘‘(2) GAIN
BEFORE
ENACTMENT
NOT
QUALI-
FIED.—The term ‘qualified capital gain’ shall not in-
clude any gain attributable to periods before the 
date of the enactment of this section. 
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‘‘(3) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of paragraphs (3), (4), and (5) of sec-
tion 1400B(e) shall apply for purposes of this sub-
section. 
‘‘(d) SPECIFIED DETROIT BUSINESS.—For purposes 
of this section, the term ‘specified Detroit business’ means 
any enterprise zone business (as defined in section 
1397C), determined— 
‘‘(1) without regard to subsections (b)(6) and 
(c)(5) thereof, 
‘‘(2) by substituting ‘80 percent’ for ‘50 per-
cent’ in subsections (b)(2) and (c)(1) thereof, 
‘‘(3) by treating Detroit, Michigan, as an em-
powerment zone (and by treating no area other than 
Detroit, Michigan, as an empowerment zone). 
‘‘(e) CERTAIN RULES TO APPLY.—For purposes of 
this section, rules similar to the rules of paragraphs (6) 
and (7) of subsection (b), and subsections (f) and (g), of 
section 1400B shall apply; except that for such purposes 
section 1400B(g)(2) shall be applied by substituting ‘be-
fore the date of the enactment of section 1400V’ for ‘be-
fore January 1, 1998, or after December 31, 2014’. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be appropriate to carry out the 
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purposes of this section, including regulations to prevent 
the abuse of the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by 
adding at the end the following new item: 
‘‘PART IV. CERTAIN NEW INVESTMENTS IN DETROIT, MICHIGAN’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property acquired after the date 
of the enactment of this Act. 
Æ 
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