(ii) 
EMPLOYEE
TRAINING
EX-
PENSES.—Subsection (b) of section 41 of 
such Code is amended— 
(I) by redesignating paragraph 
(4) as paragraph (5), and 
(II) by inserting after paragraph 
(3) the following new paragraph: 
‘‘(4) EMPLOYEE TRAINING EXPENSES.— 
‘‘(A) IN
GENERAL.—The term ‘employee 
training expenses’ means any wages paid or in-
curred to an employee in connection with train-
ing for the employee to perform qualified serv-
ices described in clause (i) or (ii) of paragraph 
(2)(B). Such term does not include wages paid 
or incurred in connection with general employer 
training which does not specifically pertain to 
such qualified services. 
‘‘(B) WAGES, ETC.—For purposes of this 
paragraph— 
‘‘(i) IN GENERAL.—The term ‘wages’ 
shall not include any amount taken into 
account under paragraph (2)(A)(i). 
‘‘(ii) RULES.—The rules of paragraph 
(2)(D) shall apply. 
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‘‘(C) TERMINATION.—The term ‘employee 
training expenses’ does not include any wages 
paid or incurred after December 31, 2030.’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to taxable 
years beginning after December 31, 2021. 
(d) REGULATORY MODERNIZATION.— 
(1) DEFINITION.—In this paragraph, the term 
‘‘startup’’ means a small business concern (as de-
fined in section 3(a) of the Small Business Act (15 
U.S.C. 632(a))) that— 
(A) has been in existence for less than 3 
years; and 
(B) has annual average gross receipts of 
less than $3,000,000. 
(2) 
REQUIREMENT.—Notwithstanding 
any 
other provision of law, in the case of a startup that 
is operating within an innovation center, any re-
quirement related to a Federal grant that prohibits 
the use of university laboratory or other research as-
sets purchased or supposed by the grant from being 
used for commercial purposes for an initial time pe-
riod shall be waived. 
(e) BUSINESS ACCESS TO CAPITAL.— 
(1) INNOVATION CENTER DEBENTURES.— 
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(A) IN
GENERAL.—Section 303 of the 
Small Business Investment Act of 1958 (15 
U.S.C. 683) is amended by adding at the end 
the following: 
‘‘(l) INNOVATION CENTER DEBENTURES.—In addi-
tion to any other authority under this Act, on and after 
the first day of the first fiscal year beginning after the 
date of enactment of this subsection, a small business in-
vestment company may issue innovation center deben-
tures.’’. 
(B) DEFINITIONS.—Section 103 of the 
Small Business Investment Act of 1958 (15 
U.S.C. 662) is amended— 
(i) in paragraph (19), by striking 
‘‘and’’ at the end; 
(ii) in paragraph (20), by striking the 
period at the end and inserting a semi-
colon; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(21) the term ‘innovation center debenture’ 
means a deferred interest debenture that— 
‘‘(A) is issued at a discount; 
‘‘(B) has a 5-year maturity or a 10-year 
maturity; 
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‘‘(C) requires no interest payment or an-
nual charge for the first 5 years; 
‘‘(D) is restricted to companies located 
within an innovation center, as defined in sec-
tion 2 of the Innovation Centers Acceleration 
Act; and 
‘‘(E) is issued at no cost (as defined in 
section 502 of the Credit Reform Act of 1990 
(2 U.S.C. 661a)) with respect to purchasing 
and guaranteeing the debenture; and 
‘‘(22) the term ‘innovation center startup’ 
means any company that— 
‘‘(A) is primarily located within an innova-
tion center (as defined in section 2 of the Inno-
vation Centers Acceleration Act); 
‘‘(B) is innovation- or technology-oriented; 
and 
‘‘(C) has been in existence for less than 5 
years.’’. 
(C) EXEMPTION FROM CAPITAL REQUIRE-
MENTS.—Section 301(c) of the Small Business 
Investment Act of 1958 (15 U.S.C. 681(c)) is 
amended by adding at the end the following: 
‘‘(5) EXCEPTION FOR APPLICATIONS LOCATED 
IN INNOVATION CENTERS.—An applicant that is lo-
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cated in an innovation center (as defined in section 
2 of the Innovation Centers Acceleration Act) and 
that does not satisfy the requirements of section 
302(a) shall be limited to 1 tier of leverage available 
under section 302(b) until the applicant meets the 
requirements of section 302(a).’’. 
(2) 7(a) LOAN
FINANCING
FOR
INNOVATION 
CENTER STARTUPS.— 
(A) LOAN
GUARANTEE
PERCENTAGE.— 
Section 7(a)(2) of the Small Business Act (15 
U.S.C. 636(a)(2)) is amended— 
(i) in subparagraph (A), in the matter 
preceding clause (i), by striking ‘‘and (F)’’ 
and inserting ‘‘(F), and (G)’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(G) PARTICIPATION
FOR
INNOVATION 
CENTER STARTUPS.— 
‘‘(i) DEFINITION.—In this subpara-
graph, the term ‘innovation center startup’ 
means any small business concern that— 
‘‘(I) is primarily located within 
an innovation center (as defined in 
section 2 of the Innovation Centers 
Acceleration Act); 
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‘‘(II) is innovation- or tech-
nology-oriented; and 
‘‘(III) has been in existence for 
less than 5 years. 
‘‘(ii) PARTICIPATION.—In an agree-
ment to participate in a loan on a deferred 
basis under this subsection for an innova-
tion center startup, the participation by 
the Administration shall be 90 percent.’’. 
(B) GUARANTEE
FEE
REDUCTION.—Sec-
tion 7(a)(18) of the Small Business Act (15 
U.S.C. 636(a)(18)) is amended— 
(i) in subparagraph (A), by striking 
‘‘With respect’’ and inserting ‘‘Except as 
provided in subparagraph (C), with re-
spect’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(C) INNOVATION
CENTER
STARTUPS.— 
With respect to a loan guaranteed under this 
subsection for a small business concern de-
scribed in paragraph (2)(G)(i)— 
‘‘(i) the Administration may not col-
lect a guarantee fee under this paragraph 
for a loan of not more than $350,000; and 
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(i) in clause (iii), by striking ‘‘or’’ at 
the end; 
(ii) by redesignating clause (iv) as 
clause (v); and 
(iii) by inserting after clause (iii) the 
following: 
‘‘(iv) for an innovation startup— 
‘‘(I) at least 5 percent of the 
total cost of the project financed, if 
the innovation startup has been in op-
eration for a period of 2 years or less; 
and 
‘‘(II) at least 5 percent of the 
total cost of the project financed if the 
project involves the construction of a 
limited or single purpose building or 
structure.’’. 
(4) SBA RESOURCES.— 
(A) IN
GENERAL.—The Small Business 
Administration shall provide innovation center 
startups (as defined in section 7(a)(2)(G) of the 
Small Business Act (15 U.S.C. 636(a)(2)(G))) 
access to financing resources of the Administra-
tion and assist those startups in navigating the 
application process. 
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(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to 
the 
Small 
Business 
Administration 
$2,500,000 for fiscal year 2021 and every fiscal 
year thereafter to carry out subparagraph (A). 
(f) NEIGHBORHOOD, PROPERTY, AND INFRASTRUC-
TURE MODERNIZATION.— 
(1) COMMUNITY DEVELOPMENT BLOCK GRANT 
FUNDING.— 
(A) DEFINITIONS.—In this paragraph— 
(i) the term ‘‘eligible entity’’ means a 
unit of general local government or Indian 
tribe that receives assistance under title I 
of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5301 et 
seq.); 
(ii) the terms ‘‘Indian tribe’’ and 
‘‘unit of general local government’’ have 
the meanings given those terms in section 
102 of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302); 
(iii) the term ‘‘qualified affordable 
housing’’ means a housing development 
that consists of 5 or more dwelling units of 
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which 20 percent or more are made avail-
able— 
(I) for rental only by a low-in-
come family (as defined in section 
3(b) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b))); 
(II) at a monthly rent amount 
that does not exceed 30 percent of the 
monthly adjusted income (as defined 
in such section 3(b)) of the tenant 
low-income family; and 
(III) maintains affordability for 
residents who are low-income families 
for a period of not less than 30 years; 
and 
(iv) the term ‘‘Secretary’’ means the 
Secretary of Housing and Urban Develop-
ment. 
(B) FUNDING.— 
(i) IN GENERAL.—The Secretary shall 
provide a grant to each eligible entity 
that— 
(I) is within the area covered by 
an innovation center; and 
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(II) the Committee certifies is 
working in partnership with that inno-
vation center. 
(ii) AMOUNT.—The amount of a grant 
provided to an eligible entity under clause 
(i) for a fiscal year shall be equal to the 
allocation that the eligible entity receives 
under title I of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 
5301 et seq.) for that fiscal year. 
(iii) 
PROHIBITION.—The 
Secretary 
may not reduce the amount that any eligi-
ble entity receives under title I of the 
Housing and Community Development Act 
of 1974 (42 U.S.C. 5301 et seq.) because 
eligible entities receive grants under this 
subparagraph. 
(C) USE
OF
FUNDS.—An eligible entity 
shall use grant funds provided under subpara-
graph (B) for the development and preservation 
of qualified affordable housing, including the 
construction of such housing, within the area 
covered by an innovation center, in accordance 
with title I of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5301 et seq.) 
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and after consultation with the innovation cen-
ter. 
(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated such sums as may be necessary to carry 
out this paragraph for each fiscal year in which 
an innovation center designation is in effect. 
(2) INFRASTRUCTURE FINANCING.— 
(A) BUILD GRANTS.— 
(i) 
DEFINITION
OF
BUILD
PRO-
GRAM.—In this subparagraph, the term 
‘‘BUILD program’’ means the program for 
national infrastructure investments (com-
monly known as the ‘‘Better Utilizing In-
vestments 
to 
Leverage 
Development 
(BUILD) discretionary grant program’’) of 
the Department of Transportation. 
(ii) AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appro-
priated to the Secretary of Transportation 
$300,000,000 for each of fiscal years 2022 
through 2032 to carry out projects under 
the BUILD program in innovation centers. 
(iii) SUPPLEMENT, NOT SUPPLANT.— 
Amounts authorized to be appropriated 
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under clause (ii) shall supplement and not 
supplant any other amounts authorized to 
be appropriated for the BUILD program. 
(B) INFRA GRANTS.— 
(i) AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appro-
priated to the Secretary of Transportation 
$300,000,000 for each of fiscal years 2022 
through 2032 to carry out projects under 
the nationally significant freight and high-
way projects program under section 117 of 
title 23, United States Code, in innovation 
centers. 
(ii) SUPPLEMENT, NOT SUPPLANT.— 
Amounts authorized to be appropriated 
under clause (i) shall supplement and not 
supplant any other amounts authorized to 
be appropriated for the nationally signifi-
cant freight and highway projects program 
under section 117 of title 23, United 
States Code. 
(C) TIFIA PROGRAM.— 
(i) 
LINES
OF
CREDIT.—Section 
604(b)(2) of title 23, United States Code, 
is amended— 
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(I) by striking ‘‘The total’’ and 
inserting the following: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the total’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(B) PROJECTS
IN
INNOVATION
CEN-
TERS.—In the case of a project in an innova-
tion center (as defined in section 2 of the Inno-
vation Centers Acceleration Act), the total 
amount of a line of credit under this section 
shall not exceed 49 percent of the reasonably 
anticipated eligible project costs.’’. 
(ii) FEE
WAIVER.—Section 605 of 
title 23, United States Code, is amended 
by adding at the end the following: 
‘‘(g) PROJECTS IN INNOVATION CENTERS.—Notwith-
standing any other provision of this chapter, in the case 
of a project in an innovation center (as defined in section 
2 of the Innovation Centers Acceleration Act), the Sec-
retary shall not require the payment of any fees under 
section 603(b)(7), section 604(b)(9), or subsection (b).’’. 
Æ 
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