I 
111TH CONGRESS 
1ST SESSION H. R. 1677 
To amend the Internal Revenue Code of 1986 to extend and expand the 
benefits for businesses operating in empowerment zones, enterprise com-
munities, or renewal communities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 24, 2009 
Mr. DAVIS of Alabama (for himself, Mr. ALEXANDER, Mr. MAFFEI, Mr. HIG-
GINS, Mr. CAO, Ms. CLARKE, Mr. MCGOVERN, Mr. SNYDER, Mr. LEWIS 
of Georgia, Mr. RODRIGUEZ, Mr. CARNAHAN, and Mr. FRANK of Massa-
chusetts) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to extend 
and expand the benefits for businesses operating in em-
powerment zones, enterprise communities, or renewal 
communities, 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. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Empowerment Zone, Renewal Community and Enter-
prise Community Enhancement Act of 2009’’. 
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(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
SEC. 2. EXTENSION OF BENEFITS. 
(a) EMPOWERMENT ZONES.— 
(1) ROUNDS I AND II DESIGNATIONS.—Section 
1391(d)(1) is amended by striking ‘‘December 31, 
2009’’ in subparagraph (A)(i) and inserting ‘‘De-
cember 31, 2015’’. 
(2) 
ROUND
III
DESIGNATIONS.—Section 
1391(h)(2) is amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2015’’. 
(b) RURAL
ENTERPRISE
COMMUNITIES.—Section 
1391(d)(1)(A) is amended by striking ‘‘or’’ at the end of 
clause (i) and by striking clause (ii) and inserting the fol-
lowing new clauses: 
‘‘(ii) in the case of an enterprise commu-
nity not described in clause (iii), the close of 
the 10th calendar year beginning on or after 
such date of designation, or 
‘‘(iii) in the case of an enterprise commu-
nity designated in a rural area pursuant to sec-
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one job for each $150,000 in face amount of the 
issue, 
‘‘(3) at any time within 3 years after the date 
of the issuance of an issue, the date property is 
placed in service, or the date of the sale of an asset, 
the requirements of such subsections are met, or 
‘‘(4) the business enters into a binding agree-
ment with the appropriate local government employ-
ment agency to apply a first source rule to advertise 
and prioritize employment opportunities with such 
business for qualified residents of such zone or com-
munity.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act, except that in the case of ob-
ligations which are outstanding on such date, such 
date shall be deemed the date of issuance for such 
obligations. 
(b) ELIGIBILITY OF BUSINESSES DEVELOPING OR 
HOLDING INTANGIBLES.— 
(1) IN
GENERAL.—Paragraph (4) of section 
1397C(d) is amended by inserting before the period 
‘‘unless the intangibles are developed within the em-
powerment zone’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(c) REDUCED WAGE CREDIT ALLOWABLE FOR ZONE 
RESIDENTS EMPLOYED OUTSIDE THE ZONE; EMPLOYEES 
NEED NOT BE RESIDENTS OF ZONE IN WHICH EM-
PLOYED.— 
(1) IN
GENERAL.—Subsection (b) of section 
1396 is amended to read as follows: 
‘‘(b) APPLICABLE PERCENTAGE.— 
‘‘(1) QUALIFIED ZONE EMPLOYEES WHO PER-
FORM SUBSTANTIALLY ALL OF THEIR SERVICES IN 
AN EMPOWERMENT ZONE.—The applicable percent-
age is 20 percent with respect to qualified zone em-
ployees who would meet the requirement of sub-
section (d)(1) if only services performed within an 
empowerment zone were taken into account. 
‘‘(2) OTHER QUALIFIED ZONE EMPLOYEES.— 
‘‘(A) IN
GENERAL.—The applicable per-
centage is— 
‘‘(i) 20 percent in the case of des-
ignated qualified zone employees of em-
ployers which are enterprise zone busi-
nesses, and 
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‘‘(ii) 10 percent in the case of any 
other designated qualified zone employee. 
‘‘(B) LIMITATIONS ON NUMBER OF DES-
IGNATED EMPLOYEES.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘designated 
qualified zone employee’ means a qualified 
zone employee— 
‘‘(I) to whom paragraph (1) does 
not apply, and 
‘‘(II) who is designated under 
this subparagraph. 
‘‘(ii) MANNER
OF
DESIGNATIONS.— 
Designations under this subparagraph 
shall be made by the local government or 
governments which nominated the area to 
be an empowerment zone. 
‘‘(iii) 
LIMITATION
ON
DESIGNA-
TIONS.—The number of employees for 
whom a designation under this subpara-
graph is in effect at any one time with re-
spect to each empowerment zone shall not 
exceed— 
‘‘(I) 500 for purposes of subpara-
graph (A)(i), and 
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‘‘(II) 2,000 for purposes of sub-
paragraph (A)(ii).’’. 
(2) QUALIFIED ZONE EMPLOYEE.—Paragraph 
(1) of section 1396(d) is amended— 
(A) by striking ‘‘within an empowerment 
zone’’ in subparagraph (A), and 
(B) by striking ‘‘such empowerment zone’’ 
in subparagraph (B) and inserting ‘‘an em-
powerment zone’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(d) CARRYFORWARD OF UNALLOCATED STATE COM-
MERCIAL REVITALIZATION EXPENDITURE CEILING.— 
(1) IN
GENERAL.—Paragraph (1) of section 
1400I(d) is amended to read as follows: 
‘‘(1) IN GENERAL.—The aggregate commercial 
revitalization expenditure amount which a commer-
cial revitalization agency may allocate for any cal-
endar year is the amount equal to the sum of— 
‘‘(A) the amount of the State commercial 
revitalization expenditure ceiling determined 
under this paragraph for such calendar year for 
such agency (determined without regard to sub-
paragraph (B)), and 
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‘‘(B) the aggregate of the unused State 
commercial revitalization expenditure ceilings 
determined under this paragraph for such agen-
cy for each of the 2 preceding calendar years. 
For purposes of subparagraph (B), amounts of ex-
penditure ceiling shall be treated as allocated by an 
agency first from unused amounts for the second 
preceding calendar year, then from unused amounts 
for the 1st preceding calendar year, and then from 
amounts from the current year State allocation.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to calendar years be-
ginning after the date of the enactment of this Act. 
(e) COMMERCIAL REVITALIZATION DEDUCTION FOR 
BUILDING EXPANSIONS.— 
(1) IN
GENERAL.—Section 1400I(b)(1) is 
amended— 
(A) by striking ‘‘any building (and its 
structural components) if’’, 
(B) by inserting ‘‘any building (and its 
structural components) if’’ before ‘‘the building 
is placed’’ in subparagraph (A), 
(C) by striking ‘‘or’’ at the end of subpara-
graph (A), 
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(D) by striking ‘‘such building not de-
scribed in subparagraph (A),’’ in subparagraph 
(B) and inserting ‘‘any building (and its struc-
tural components) not described in subpara-
graph (A) if’’, 
(E) by striking the period at the end of 
subparagraph (B)(ii) and inserting ‘‘, or’’, and 
(F) by adding at the end the following new 
subparagraph: 
‘‘(C) in the case of any expansion of a 
building not described in subparagraph (A) or 
(B), such expansion if— 
‘‘(i) such expansion is made to a 
building owned by the taxpayer, 
‘‘(ii) the taxpayer provides a detailed 
accounting of the distinct capital costs at-
tributable to such expansion, and 
‘‘(iii) such expansion is placed in serv-
ice by the taxpayer in a renewal commu-
nity and the original use of such expansion 
begins with the taxpayer.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after the date of the enactment of this Act. 
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(f) AUTHORITY TO EXPAND BOUNDARIES OF ZONES 
AND COMMUNITIES.— 
(1) EMPOWERMENT
ZONES
AND
ENTERPRISE 
COMMUNITIES.—Section 1391 is amended by adding 
at the end the following new subsection: 
‘‘(i) AUTHORITY TO EXPAND BOUNDARIES OF DES-
IGNATED AREAS.— 
‘‘(1) IN GENERAL.—At the request of all gov-
ernments which nominated an area as an empower-
ment zone or enterprise community, the appropriate 
Secretary may expand the area of such zone or com-
munity to include 1 or more contiguous or non-
contiguous areas if such governments establish to 
the satisfaction of the appropriate Secretary that 
such expansion furthers the purposes of the designa-
tion of the initial area as such a zone or community. 
‘‘(2) RURAL AREAS.—With respect to any em-
powerment zone or enterprise community located in 
a rural area, at the request of the nominating local 
government, the appropriate Secretary shall expand 
the area of such zone or community to include the 
entire area of such nominating local government, but 
only if— 
‘‘(A) either— 
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‘‘(i) the poverty rate and the unem-
ployment rate for such entire area as de-
termined by the 2000 decennial census 
data was at least 110 percent of such rate 
for the United States, or 
‘‘(ii) during the period beginning with 
the 1990 decennial census and ending with 
the 2000 decennial census, such entire 
area has a net out migration of inhabitants 
of at least 10 percent of the population of 
such area, and 
‘‘(B) such entire area meets 1 or more of 
the following criteria determined by the 2000 
decennial census data: 
‘‘(i) Median household income is not 
more than 70 percent of such income for 
the United States. 
‘‘(ii) Per capita income is not more 
than 75 percent of such income for the 
United States. 
‘‘(iii) The percentage of such area’s 
population which is disabled is at least 130 
percent of such percentage for the United 
States.’’. 
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(2) RENEWAL COMMUNITIES.—Section 1400E 
is amended by adding at the end the following new 
subsection: 
‘‘(h) AUTHORITY TO EXPAND BOUNDARIES OF DES-
IGNATED AREAS.— 
‘‘(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 1 or more noncontiguous areas if 
such governments establish to the satisfaction of 
such Secretary that such expansion furthers the pur-
poses of the designation of the initial area as a re-
newal community. 
‘‘(2) RURAL AREAS.—With respect to any re-
newal community located in a rural area, at the re-
quest of the nominating local government, the Sec-
retary of Housing and Urban Development shall ex-
pand the area of such community to include the en-
tire area of such nominating local government, but 
only if— 
‘‘(A) either— 
‘‘(i) the poverty rate and the unem-
ployment rate for such entire area as de-
termined by the 2000 decennial census 
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data was at least 110 percent of such rate 
for the United States, or 
‘‘(ii) during the period beginning with 
the 1990 decennial census and ending with 
the 2000 decennial census, such entire 
area has a net out migration of inhabitants 
of at least 10 percent of the population of 
such area, and 
‘‘(B) such entire area meets 1 or more of 
the following criteria determined by the 2000 
decennial census data: 
‘‘(i) Median household income is not 
more than 70 percent of such income for 
the United States. 
‘‘(ii) Per capita income is not more 
than 75 percent of such income for the 
United States. 
‘‘(iii) The percentage of such area’s 
population which is disabled is at least 130 
percent of such percentage for the United 
States.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
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(g) MODIFICATION OF REQUIREMENT FOR EXPAND-
ING DESIGNATED AREA BASED ON 2000 CENSUS.— 
(1) IN
GENERAL.—Clause (ii) of section 
1400E(g)(1)(A) is amended to read as follows: 
‘‘(ii) such tract has a poverty rate 
using 2000 census data— 
‘‘(I) which is at least 20 percent, 
or 
‘‘(II) which exceeds the poverty 
rate for such tract using 1990 census 
data.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
(h) REPEAL OF EXCLUSION OF CENTRAL BUSINESS 
DISTRICT FROM ELIGIBILITY AS DESIGNATED AREA.— 
(1) IN
GENERAL.—Paragraph (3) of section 
1392(a) is amended by adding ‘‘and’’ at the end of 
subparagraph (B), by striking ‘‘, and’’ at the end of 
subparagraph (C) and inserting a period, and by 
striking subparagraph (D). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
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(i) CARRYOVER OF UNUSED INCREASED SECTION 
179 EXPENSING LIMIT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
1397A(a)(1) is amended to read as follows: 
‘‘(A) the sum of— 
‘‘(i) $35,000, and 
‘‘(ii) the aggregate of the unused in-
creased limitations for each of the 2 pre-
ceding taxable years, or’’. 
(2) UNUSED INCREASED LIMITATION.—Section 
1397A is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) UNUSED INCREASED LIMITATION.—For pur-
poses of subsection (a)(1)(A)— 
‘‘(1) IN GENERAL.—The unused increased limi-
tation for any taxable year is the excess (but not 
more than $35,000) of the limitation under section 
179(b)(1) as increased under subsection (a) over the 
cost of section 179 property which is qualified zone 
property placed in service during the taxable year. 
‘‘(2) ORDERING RULE.—The limitation under 
section 179(b)(1) as increased under subsection (a) 
shall be treated as used first from unused limitation 
for the second preceding calendar year, then from 
unused limitation for the 1st preceding calendar 
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year, and then from such limitation for the current 
year.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(j) ELECTION
OF FINANCING ARRANGEMENT
IN 
LIEU OF TAX BENEFITS.— 
(1) IN GENERAL.—Section 1396 is amended by 
adding at the end the following new subsection: 
‘‘(e) ELECTION OF FINANCING ARRANGEMENT IN 
LIEU OF TAX BENEFITS.— 
‘‘(1) IN GENERAL.—At the election of any sig-
nificant empowerment zone business, for the pay-
ment period of the debt obligation designated in 
such election (or as an amendment to such election) 
by such business— 
‘‘(A) such business— 
‘‘(i) shall not be allowed an empower-
ment zone employment credit described in 
subsection (a), and 
‘‘(ii) shall not be allowed any deduc-
tion for depreciation under section 168 
with respect to qualified zone property that 
provides a cost recovery benefit described 
in paragraph (2), and 
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‘‘(B) the Secretary shall make the pay-
ments described in paragraph (2) to a trustee 
designated by the electing business to accept 
such payments on behalf of such holders). 
‘‘(2) PAYMENTS.— 
‘‘(A) IN GENERAL.—At the beginning of 
each year of the payment period, the Secretary 
shall pay (out of any money in the Treasury not 
otherwise appropriated) to the trustee des-
ignated by such business an amount equal to— 
‘‘(i) the empowerment zone employ-
ment credit computed for such year under 
this section as if the election was not made 
under this subsection, and 
‘‘(ii) except as provided in paragraph 
(4)(A), the amount equal to the cost recov-
ery benefit divided by the number of years 
in the payment period described in sub-
paragraph (C). 
‘‘(B) COST RECOVERY BENEFIT.—For pur-
poses of subparagraph (A), the cost recovery 
benefit shall be an amount equal to 25 percent 
of— 
‘‘(i) the cost of any tangible property 
which is qualified zone property (including 
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improvements to such tangible property) 
incurred by the significant empowerment 
zone business before the end of the first 5 
full calendar years beginning after the date 
the election is made under this subsection, 
and 
‘‘(ii) any such cost for which a bind-
ing contract for financing the acquisition 
of such tangible property (including im-
provements to such tangible property) has 
been made by such business and which 
under the terms of the financing is to be 
incurred within the first 5 full calendar 
years beginning after the date of the elec-
tion made under this subsection. 
‘‘(C) PAYMENT PERIOD.—The payment pe-
riod is the period of 15 calendar years begin-
ning with the earlier of— 
‘‘(i) the calendar year specified by the 
significant empowerment zone business as 
the 1st year of the payment period without 
regard to the date the property is placed in 
service, or 
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‘‘(ii) the 5th calendar year beginning 
after the date that the election under this 
subsection is made. 
‘‘(3) SIGNIFICANT EMPOWERMENT ZONE BUSI-
NESS.—For purposes of this subsection, the term 
‘significant empowerment zone business’ means any 
trade or business operating in an empowerment zone 
if— 
‘‘(A) such business is nominated by the 
chief executive or the legislative body of the 
State or a local government in which the zone 
property is located, and 
‘‘(B) the Secretary of Housing and Urban 
Development determines that— 
‘‘(i) it is a facility for qualified re-
search as defined in section 41(d) which is 
reasonably anticipated to make at least 
$50,000,000 of capital expenditures within 
the first 3 years of the payment period, or 
‘‘(ii) with respect to any other busi-
ness, it is reasonably anticipated that such 
business will increase employment in such 
zone by the end of the first 3 years of the 
payment period by at least the lesser of— 
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‘‘(I) 1,000 full-time employees or 
equivalents, or 
‘‘(II) 10 percent of the number 
of full-time employees estimated to 
have been employed in such zone on 
the date of its designation. 
‘‘(4) SPECIAL RULES.— 
‘‘(A) ADJUSTMENT
TO
COST
RECOVERY 
BENEFIT.—In the event that the significant em-
powerment zone business does not incur a cost 
within the period described in paragraph (2)(B) 
and for which a cost recovery benefit payment 
is made under this subsection, the Secretary 
shall reduce future recovery benefit payments to 
recover 110 percent of the overpayments in 
equal installments over the remaining payment 
period. In the event that a cost described in 
paragraph (2)(B)(i) is incurred, or a contract 
described in paragraph (2)(B)(ii) is entered 
into, after the beginning of the payment period, 
the Secretary shall increase future recover ben-
efit payments to recover 100 percent of the cost 
recovery benefit associated with such costs or 
contracts in equal installments over the remain-
ing payment period. 
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‘‘(B) BASIS ADJUSTMENT.—For purposes 
of this subtitle, if a cost recovery payment is 
made under this subsection with respect to any 
property, the basis of such property shall be re-
duced by the amount of such payment. 
‘‘(5) TREATMENT
OF
PAYMENTS.—Any pay-
ment made under this subsection shall not be treat-
ed as a Federal Government guarantee for purposes 
of section 149(b).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1016(a) is amended by striking ‘‘and’’ at the end of 
paragraph (36), by striking the period at the end of 
paragraph (37) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
‘‘(38) to the extent provided in section 
1396(e)(4)(B).’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
(k) CERTAIN
FEDERALLY
GUARANTEED
BONDS 
ISSUED TO PROVIDE INVESTMENTS IN EMPOWERMENT 
ZONES AND RENEWAL COMMUNITIES PERMITTED TO BE 
TAX-EXEMPT, ETC.— 
(1) IN GENERAL.—Subparagraph (A) of section 
149(b)(3) is amended by striking ‘‘or’’ at the end of 
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clause (ii), by striking the period at the end of 
clause (iii) and inserting ‘‘, or’’, and by adding at 
the end the following new clause: 
‘‘(iv) any guarantee by a Federal 
Home Loan Bank for a bond 95 percent or 
more of the net proceeds of which are to 
be used to provide property in an em-
powerment zone or renewal community.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to bonds issued after 
the date of the enactment of this Act. 
(l) TAX-EXEMPT INTEREST OF FINANCIAL INSTITU-
TIONS ON ZONE FACILITY BONDS NOT SUBJECT TO IN-
TEREST DISALLOWANCE.— 
(1) IN GENERAL.—Subparagraph (B) of section 
265(b)(3) (defining qualified bond) is amended by 
adding at the end the following new clause: 
‘‘(iii) ENTERPRISE
ZONE
FACILITY 
BONDS.—The term ‘qualified tax-exempt 
obligation’ includes any obligation which is 
treated as an exempt facility bond by sec-
tion 1394.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act. 
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(m) DEVELOPABLE SITES POPULATION CLARIFICA-
TION.— 
(1) IN GENERAL.—Subparagraph (C) of section 
1391(g)(3) (relating to modifications to eligibility 
criteria, etc.) is amended to read as follows: 
‘‘(C) POPULATION LIMITATION.— 
‘‘(i) AGGREGATE POPULATION LIMITA-
TION.—The aggregate population limita-
tion under the last sentence of subsection 
(b)(2) shall not apply to a designation 
under paragraph (1). 
‘‘(ii) EXCEPTION FOR DEVELOPABLE 
SITES.—The parcels described in subpara-
graph (A)(iii) shall not be taken into ac-
count in determining whether the require-
ment of section 1392(a)(1)(A) is met.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
(n) REPORTING.—The Secretary of the Treasury (or 
the Secretary’s delegate) shall annually submit to the 
Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate 
a report detailing for each empowerment zone, enterprise 
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community, and renewal community the amount and type 
of claimed tax benefits. 
SEC. 4. ADDITIONAL ACCESS TO CAPITAL BY RURAL EN-
TERPRISE COMMUNITIES AND CERTAIN EM-
POWERMENT ZONES. 
(a) IN GENERAL.—Section 1394 (relating to tax-ex-
empt enterprise zone facility bonds) is amended by adding 
at the end the following new subsection: 
‘‘(g) BONDS
FOR
RURAL
ENTERPRISE
COMMU-
NITIES.— 
‘‘(1) IN GENERAL.—In the case of a rural en-
terprise community bond— 
‘‘(A) such bond shall not be treated as a 
private activity bond for purposes of section 
146, and 
‘‘(B) subsections (c) and (f)(2) of this sec-
tion shall not apply. 
‘‘(2) LIMITATION OF AMOUNT OF BONDS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
apply to a rural enterprise community bond 
only if such bond is designated for purposes of 
this subsection by the Secretary of Agriculture 
for the area to which such bond relates. 
‘‘(B) 
LIMITATION
ON
BONDS
DES-
IGNATED.—The aggregate face amount of 
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bonds which may be designated under subpara-
graph (A) with respect to all rural enterprise 
communities shall not exceed $200,000,000. 
‘‘(C) SPECIAL RULES.— 
‘‘(i) COORDINATION WITH OTHER LIM-
ITATIONS.—Bonds to which paragraph (1) 
applies shall not be taken into account in 
applying the limitation of subsection (c) or 
(f)(2) to other bonds. 
‘‘(ii) CURRENT
REFUNDINGS
NOT 
TAKEN INTO ACCOUNT.—In the case of a 
refunding (or series of refundings) of a 
bond designated under this paragraph, the 
refunding obligation shall be treated as 
designated under this paragraph (and shall 
not be taken into account in applying sub-
paragraph (B)) if— 
‘‘(I) the amount of the refunding 
bond does not exceed the outstanding 
amount of the refunded bond, and 
‘‘(II) the refunded bond is re-
deemed not later than 90 days after 
the date of issuance of the refunding 
bond. 
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‘‘(3) RURAL ENTERPRISE COMMUNITY BOND.— 
For purposes of this subsection, the term ‘rural en-
terprise community bond’ means any bond which 
would be described in subsection (a) if all rural en-
terprise communities were taken into account under 
sections 1397C and 1397D. 
‘‘(4) DESIGNATION
PROCEDURE.—The Sec-
retary of Agriculture shall establish within 90 days 
after the date of the enactment of this subsection, 
the procedure for the nomination and selection of 
rural enterprise communities with respect to the des-
ignation of rural enterprise community bonds.’’. 
(b) ACCESS TO ADDITIONAL CAPITAL BY CERTAIN 
EMPOWERMENT ZONES.—Section 1394 (relating to tax- 
exempt enterprise zone facility bonds), as amended by sub-
section (a), is amended by adding at the end the following 
new subsection: 
‘‘(h) ACCESS
TO
CAPITAL
FOR
EMPOWERMENT 
ZONES THAT HAVE UTILIZED THE EXISTING ALLOCA-
TION.— 
‘‘(1) IN GENERAL.—The appropriate Secretary 
may designate empowerment zone facility bonds in 
excess of the applicable limitation amounts under 
subsections (c) and (f)(2) in the case of any em-
powerment zone with respect to which enterprise 
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zone facility bonds and empowerment zone facility 
bonds have been designated and issued up to such 
applicable limitation amounts as of December 31, 
2009. 
‘‘(2) LIMITATION OF AMOUNT OF BONDS.— 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
apply to an empowerment zone facility bond 
only if such bond is designated for purposes of 
this subsection by the appropriate Secretary for 
the area to which such bond relates. 
‘‘(B) 
LIMITATION
ON
BONDS
DES-
IGNATED.—The aggregate face amount of 
bonds which may be designated under subpara-
graph (A)— 
‘‘(i) with respect to all empowerment 
zones described in paragraph (1) shall not 
exceed $300,000,000, 
‘‘(ii) with respect to all urban areas 
shall not exceed $230,000,000, and 
‘‘(iii) with respect to all rural areas 
shall not exceed $70,00,000. 
‘‘(C) SPECIAL RULES.— 
‘‘(i) COORDINATION WITH OTHER LIM-
ITATIONS.—Bonds to which paragraph (1) 
applies shall not be taken into account in 
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applying the limitation of subsection (c) or 
(f)(2) to other bonds. 
‘‘(ii) CURRENT
REFUNDINGS
NOT 
TAKEN INTO ACCOUNT.—In the case of a 
refunding (or series of refundings) of a 
bond designated under this paragraph, the 
refunding obligation shall be treated as 
designated under this paragraph (and shall 
not be taken into account in applying sub-
paragraph (B)) if— 
‘‘(I) the amount of the refunding 
bond does not exceed the outstanding 
amount of the refunded bond, and 
‘‘(II) the refunded bond is re-
deemed not later than 90 days after 
the date of issuance of the refunding 
bond. 
‘‘(3) DESIGNATIONS PROCEDURE.—The appro-
priate Secretary shall establish within 90 days after 
the date of the enactment of this subsection, the 
procedure for the nomination and selection of em-
powerment zones with respect to the designation of 
empowerment zone facility bonds.’’. 
Æ 
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