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.
Passed the House of Representatives May 17, 2004.
Attest:
Clerk.