H. R. 2488—56 
‘‘(B) such allocation shall be effective on and after 
the date of such transfer, or, in the case of an allocation 
deemed to have been made at the close of an estate tax 
inclusion period, on and after the close of such estate 
tax inclusion period.’’. 
(b) TRANSFERS
AT
DEATH.—Subparagraph (A) of section 
2642(b)(2) is amended to read as follows: 
‘‘(A) TRANSFERS AT DEATH.—If property is transferred 
as a result of the death of the transferor, the value of 
such property for purposes of subsection (a) shall be its 
value as finally determined for purposes of chapter 11; 
except that, if the requirements prescribed by the Secretary 
respecting allocation of post-death changes in value are 
not met, the value of such property shall be determined 
as of the time of the distribution concerned.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the amendments made by section 
1431 of the Tax Reform Act of 1986. 
SEC. 634. RELIEF PROVISIONS. 
(a) IN GENERAL.—Section 2642 is amended by adding at the 
end the following new subsection: 
‘‘(g) RELIEF PROVISIONS.— 
‘‘(1) RELIEF FOR LATE ELECTIONS.— 
‘‘(A) IN GENERAL.—The Secretary shall by regulation 
prescribe such circumstances and procedures under which 
extensions of time will be granted to make— 
‘‘(i) an allocation of GST exemption described in 
paragraph (1) or (2) of subsection (b), and 
‘‘(ii) an election under subsection (b)(3) or (c)(5) 
of section 2632. 
Such regulations shall include procedures for requesting 
comparable relief with respect to transfers made before 
the date of the enactment of this paragraph. 
‘‘(B) BASIS
FOR
DETERMINATIONS.—In determining 
whether to grant relief under this paragraph, the Secretary 
shall take into account all relevant circumstances, 
including evidence of intent contained in the trust 
instrument or instrument of transfer and such other factors 
as the Secretary deems relevant. For purposes of deter-
mining whether to grant relief under this paragraph, the 
time for making the allocation (or election) shall be treated 
as if not expressly prescribed by statute. 
‘‘(2) SUBSTANTIAL
COMPLIANCE.—An allocation of GST 
exemption under section 2632 that demonstrates an intent 
to have the lowest possible inclusion ratio with respect to 
a transfer or a trust shall be deemed to be an allocation 
of so much of the transferor’s unused GST exemption as pro-
duces the lowest possible inclusion ratio. In determining 
whether there has been substantial compliance, all relevant 
circumstances shall be taken into account, including evidence 
of intent contained in the trust instrument or instrument of 
transfer and such other factors as the Secretary deems rel-
evant.’’. 
(b) EFFECTIVE DATES.— 
(1) RELIEF FOR LATE ELECTIONS.—Section 2642(g)(1) of the 
Internal Revenue Code of 1986 (as added by subsection (a)) 
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H. R. 2488—57 
shall apply to requests pending on, or filed after, the date 
of the enactment of this Act. 
(2) SUBSTANTIAL COMPLIANCE.—Section 2642(g)(2) of such 
Code (as so added) shall take effect on the date of the enactment 
of this Act and shall apply to allocations made prior to such 
date for purposes of determining the tax consequences of 
generation-skipping transfers with respect to which the period 
of time for filing claims for refund has not expired. No implica-
tion is intended with respect to the availability of relief for 
late elections or the application of a rule of substantial compli-
ance prior to the enactment of this amendment. 
Subtitle E—Conservation Easements 
SEC. 641. EXPANSION OF ESTATE TAX RULE FOR CONSERVATION EASE-
MENTS. 
(a) WHERE LAND IS LOCATED.— 
(1) IN
GENERAL.—Clause (i) of section 2031(c)(8)(A) 
(defining land subject to a conservation easement) is amended— 
(A) by striking ‘‘25 miles’’ both places it appears and 
inserting ‘‘50 miles’’, and 
(B) striking ‘‘10 miles’’ and inserting ‘‘25 miles’’. 
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to estates of decedents dying after December 
31, 1999. 
(b) CLARIFICATION OF DATE FOR DETERMINING VALUE OF LAND 
AND EASEMENT.— 
(1) IN
GENERAL.—Section 2031(c)(2) (defining applicable 
percentage) is amended by adding at the end the following 
new sentence: ‘‘The values taken into account under the pre-
ceding sentence shall be such values as of the date of the 
contribution referred to in paragraph (8)(B).’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to estates of decedents dying after December 
31, 1997. 
TITLE 
VII—TAX 
RELIEF 
FOR 
DIS-
TRESSED COMMUNITIES AND INDUS-
TRIES 
Subtitle A—American Community Renewal 
Act of 1999 
SEC. 701. SHORT TITLE. 
This subtitle may be cited as the ‘‘American Community 
Renewal Act of 1999’’. 
SEC. 702. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL 
COMMUNITIES. 
(a) IN GENERAL.—Chapter 1 is amended by adding at the 
end the following new subchapter: 
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H. R. 2488—58 
‘‘Subchapter X—Renewal Communities 
‘‘Part 
I. Designation. 
‘‘Part II. Renewal community capital gain; renewal community business. 
‘‘Part III. Family development accounts. 
‘‘Part
IV. Additional incentives. 
‘‘PART I—DESIGNATION 
‘‘Sec. 1400E. Designation of renewal communities. 
‘‘SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES. 
‘‘(a) DESIGNATION.— 
‘‘(1) DEFINITIONS.—For purposes of this title, the term 
‘renewal community’ means any area— 
‘‘(A) which is nominated by one or more local govern-
ments and the State or States in which it is located for 
designation as a renewal community (hereinafter in this 
section referred to as a ‘nominated area’); and 
‘‘(B) which the Secretary of Housing and Urban 
Development designates as a renewal community, after 
consultation with— 
‘‘(i) the Secretaries of Agriculture, Commerce, 
Labor, and the Treasury; the Director of the Office 
of Management and Budget; and the Administrator 
of the Small Business Administration; and 
‘‘(ii) in the case of an area on an Indian reservation, 
the Secretary of the Interior. 
‘‘(2) NUMBER OF DESIGNATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary of Housing and 
Urban Development may designate not more than 20 nomi-
nated areas as renewal communities. 
‘‘(B) MINIMUM DESIGNATION IN RURAL AREAS.—Of the 
areas designated under paragraph (1), at least four must 
be areas— 
‘‘(i) which are within a local government jurisdic-
tion or jurisdictions with a population of less than 
50,000, 
‘‘(ii) which are outside of a metropolitan statistical 
area (within the meaning of section 143(k)(2)(B)), or 
‘‘(iii) which are determined by the Secretary of 
Housing and Urban Development, after consultation 
with the Secretary of Commerce, to be rural areas. 
‘‘(3) AREAS
DESIGNATED
BASED
ON
DEGREE
OF
POVERTY, 
ETC.— 
‘‘(A) IN
GENERAL.—Except as otherwise provided in 
this section, the nominated areas designated as renewal 
communities under this subsection shall be those nomi-
nated areas with the highest average ranking with respect 
to the criteria described in subparagraphs (B), (C), and 
(D) of subsection (c)(3). For purposes of the preceding sen-
tence, an area shall be ranked within each such criterion 
on the basis of the amount by which the area exceeds 
such criterion, with the area which exceeds such criterion 
by the greatest amount given the highest ranking. 
‘‘(B) EXCEPTION WHERE INADEQUATE COURSE OF ACTION, 
ETC.—An area shall not be designated under subparagraph 
(A) if the Secretary of Housing and Urban Development 
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H. R. 2488—59 
determines that the course of action described in subsection 
(d)(2) with respect to such area is inadequate. 
‘‘(C) PRIORITY FOR EMPOWERMENT ZONES AND ENTER-
PRISE COMMUNITIES WITH RESPECT TO FIRST HALF OF DES-
IGNATIONS.—With respect to the first 10 designations made 
under this section— 
‘‘(i) all shall be chosen from nominated areas which 
are empowerment zones or enterprise communities 
(and are otherwise eligible for designation under this 
section); and 
‘‘(ii) two shall be areas described in paragraph 
(2)(B). 
‘‘(4) LIMITATION ON DESIGNATIONS.— 
‘‘(A) PUBLICATION OF REGULATIONS.—The Secretary of 
Housing and Urban Development shall prescribe by regula-
tion no later than 4 months after the date of the enactment 
of this section, after consultation with the officials described 
in paragraph (1)(B)— 
‘‘(i) the procedures for nominating an area under 
paragraph (1)(A); 
‘‘(ii) the parameters relating to the size and popu-
lation characteristics of a renewal community; and 
‘‘(iii) the manner in which nominated areas will 
be evaluated based on the criteria specified in sub-
section (d). 
‘‘(B) TIME LIMITATIONS.—The Secretary of Housing and 
Urban Development may designate nominated areas as 
renewal communities only during the 24-month period 
beginning on the first day of the first month following 
the month in which the regulations described in subpara-
graph (A) are prescribed. 
‘‘(C) PROCEDURAL RULES.—The Secretary of Housing 
and Urban Development shall not make any designation 
of a nominated area as a renewal community under para-
graph (2) unless— 
‘‘(i) the local governments and the States in which 
the nominated area is located have the authority— 
‘‘(I) to nominate such area for designation as 
a renewal community; 
‘‘(II) to make the State and local commitments 
described in subsection (d); and 
‘‘(III) to provide assurances satisfactory to the 
Secretary of Housing and Urban Development that 
such commitments will be fulfilled, 
‘‘(ii) a nomination regarding such area is submitted 
in such a manner and in such form, and contains 
such information, as the Secretary of Housing and 
Urban Development shall by regulation prescribe; and 
‘‘(iii) the Secretary of Housing and Urban Develop-
ment determines that any information furnished is 
reasonably accurate. 
‘‘(5) NOMINATION PROCESS FOR INDIAN RESERVATIONS.—For 
purposes of this subchapter, in the case of a nominated area 
on an Indian reservation, the reservation governing body (as 
determined by the Secretary of the Interior) shall be treated 
as being both the State and local governments with respect 
to such area. 
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