grams that enhance the operational capabilities of 
the organizations; and 
(3) a plan for making recommendations for ac-
tions or measures to further involve community- 
based economic development organizations in the 
strategic operations of Federal agencies in support 
of community economic development. 
(c) FINAL EVALUATION.—The Secretary shall select 
an independent entity that has experience with national 
community economic development activities, nonprofit 
community-based developers, and impact evaluation and 
analysis to conduct an evaluation of the impact of the 
grant program under section 3. The evaluation shall be 
conducted upon the termination of the program. Not later 
than 6 months after the conclusion of the last fiscal year 
for which amounts are made available for grants under 
section 3, the entity conducting the evaluation shall sub-
mit to the Secretary and the Congress a final report re-
garding the evaluation. 
SEC. 104. ADVISORY COUNCIL. 
(a) ESTABLISHMENT AND DUTIES.—The Secretary 
shall establish an advisory council to be known as the Sec-
retary’s Advisory Council on Community Economic Devel-
opment (in this section referred to as the ‘‘Advisory Coun-
cil’’). The Advisory Council shall make recommendations
to the Secretary on carrying out this title, including rec-
ommendations on developing plans under section 4(b)(3) 
and reviewing and making recommendations on such plans 
that have been developed. 
(b) MEMBERSHIP.—The Advisory Council shall con-
sist of not less than 19 members, appointed by the Sec-
retary, as follows: 
(1) EX
OFFICIO
MEMBERS.—The following 
members, who shall serve as nonvoting members: 
(A) The Secretary of Housing and Urban 
Development, or the designee of such Secretary. 
(B) The Secretary of Health and Human 
Services, or the designee of such Secretary. 
(C) The Assistant Secretary for Economic 
Development of the Department of Commerce, 
or the designee of the Assistant Secretary. 
(D) The Administrator of the Community 
Development Financial Institutions Fund, or 
the designee of the Administrator. 
(E) The Under Secretary of Agriculture 
for Rural Development, or the designee of the 
Under Secretary. 
(2) OTHER
MEMBERS.—No fewer than 14 
members, who are not officers or employees of the
Federal Government, who shall serve as voting mem-
bers: 
(A) No fewer than 2 individuals who con-
duct research on community economic develop-
ment activities. 
(B) No fewer than 2 individuals who are 
experts in community economic development fi-
nancing. 
(C) No fewer than 3 individuals who are 
publicly elected officials. 
(D) No fewer than 7 individuals who are 
representatives of community-based economic 
development organizations that carry out com-
munity economic development activities. 
(c) TRAVEL EXPENSES.—Members of the Advisory 
Council shall not receive any pay by reason of their service 
on the Advisory Council, but shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance 
with sections 5702 and 5703 of title 5, United States 
Code. 
SEC. 105. COORDINATION WITH PRESIDENT’S ANNUAL 
BUDGET REQUEST. 
The President of the United States shall include, to-
gether with each annual budget of the United States Gov-
ernment required to be submitted under section 1105(a)
of title 31, United States Code, a report regarding Federal 
financial support for community economic development 
that includes— 
(1) a detailed summary of the total level of 
funding committed to community-based economic de-
velopment organizations throughout all Federal 
agencies; 
(2) a statement of projected funding levels for 
the grant program under section 102 of this Act for 
the upcoming fiscal year and each fiscal year there-
after until 2010, and projected funding levels for fi-
nancial assistance for economic development activi-
ties for each Federal agency that provides such as-
sistance; 
(3) an identification and analysis of the method 
(including grant agreements, procurement contracts, 
and cooperative agreements (as such terms are used 
in chapter 63 of title 31, United States Code) by 
which such financial assistance is provided for each 
such economic development activity; and 
(4) Recommendations for specific activities and 
measures to enhance community-based economic de-
velopment capacity building in states having less 
concentrated economic and infrastructure resources
and to strengthen nationwide community-based eco-
nomic development. 
SEC. 106. DEFINITIONS. 
For purposes of this title, the following definitions 
shall apply: 
(1) COMMUNITY-BASED
ECONOMIC
DEVELOP-
MENT ORGANIZATION.— 
(A) IN GENERAL.—For purposes of this 
section, the term ‘‘community-based economic 
development organization’’ means a nonprofit, 
nongovernmental organization that— 
(i) has as its primary mission to 
serve, or provide investment capital for, 
low-income communities and low-income 
persons; and 
(ii)(I) maintains accountability to resi-
dents of low-income communities through 
their representation on any governing 
board of the organization or on any advi-
sory board to the organization; or 
(II) maintains accountability to low- 
income communities by having a board pri-
marily consisting of leaders of community- 
based development organizations from its 
region or State on its governing board.
(B) NONDISCRIMINATION AGAINST FAITH- 
BASED
ORGANIZATIONS.—Such term shall in-
clude any faith-based organization that complies 
with the requirements under clauses (i) and (ii) 
of subparagraph (A). 
(C) TREATMENT OF COMMUNITY DEVEL-
OPMENT
FINANCIAL
INSTITUTIONS.—The re-
quirements of subparagraph (A) shall be treat-
ed as met by any community development fi-
nancial institution (as such term is defined in 
section 103 of the Community Development 
Banking and Financial Institutions Act of 1994 
(12 U.S.C. 4702). 
(2) 
COMMUNITY
ECONOMIC
DEVELOPMENT 
PROJECT.—The term ‘‘community economic develop-
ment project’’ means a project that involves— 
(A) investment in business enterprises, in-
cluding investments in the form of loan origina-
tion, equity investment, and monetary assist-
ance to home buyers or to business owners for 
business development projects; or 
(B) the construction or rehabilitation of fa-
cilities, including commercial or industrial facili-
ties, homes, apartment buildings, and commu-
nity parks.
(3) LOW-INCOME
COMMUNITIES
AND
PER-
SONS.—The terms ‘‘low-income communities’’ and 
‘‘low-income persons’’ shall have the meanings given 
such terms in section 45D of the Internal Revenue 
Code of 1986 (26 U.S.C. 45D). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
TITLE II—TAX INCENTIVES FOR 
DEVELOPMENT PROJECTS IN 
RENEWAL, 
EMPOWERMENT, 
AND 
ENTERPRISE 
COMMU-
NITIES 
SEC. 201. HOUSING INFRASTRUCTURE CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45J. HOUSING INFRASTRUCTURE. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the housing infrastructure credit determined 
under this section for the taxable year is an amount equal 
to 50 percent of the aggregate bases of qualified housing 
infrastructure property placed in service by the taxpayer 
during the taxable year.
‘‘(b) QUALIFIED HOUSING INFRASTRUCTURE PROP-
ERTY.—For purposes of this subpart— 
‘‘(1) IN GENERAL.—The term ‘qualified housing 
infrastructure property’ means any housing infra-
structure property— 
‘‘(A) which is property to which section 
168 applies, 
‘‘(B) which is placed in service after the 
date of the enactment of this section, and 
‘‘(C)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer, 
or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such property commences 
with the taxpayer. 
‘‘(2) HOUSING INFRASTRUCTURE PROPERTY.— 
For purposes of this subsection, the term ‘housing 
infrastructure property’ means property— 
‘‘(A) which is located in an empowerment 
zone, enterprise community, or renewal commu-
nity, and 
‘‘(B) substantially all of the use of which 
is to provide water, sewer, electricity, or natural 
gas services to residences located in such a zone 
or community.
Such term shall not include property which uses 
such services after the point of residential metering. 
‘‘(c) CERTAIN RULES NOT TO APPLY.— 
‘‘(1) RECAPTURE NOT TO APPLY TO DISPOSI-
TIONS TO GOVERNMENT.—Section 50(a) shall not 
apply to a disposition to a governmental unit. 
‘‘(2) USE BY GOVERNMENT PERMITTED.—Sec-
tion 50(b)(4) shall not apply.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (a) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (18), 
by striking the period at the end of paragraph (19) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(20) the housing infrastructure credit deter-
mined under section 45J(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45J. Housing infrastructure.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as
in effect on the day before the the date of the enactment 
of the Revenue Reconciliation Act of 1990). 
SEC. 202. INCREASE AND EXTENSION OF BENEFITS FOR 
EMPLOYMENT AND CERTAIN INVESTMENTS. 
(a) CREDITS FOR EMPLOYMENT.— 
(1) WORK OPPORTUNITY CREDIT.— 
(A) CREDIT DOUBLED.—Subsection (b) of 
section 51 of the Internal Revenue Code of 
1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) TEMPORARY
DOUBLING
OF
CREDIT.—In 
the case of individuals beginning work for the em-
ployer after the date of the enactment of the Com-
munity Economic Development Expertise Enhance-
ment Act of 2005 and before January 1, 2010, this 
section shall be applied by doubling each of the dol-
lar amounts in paragraph (3) and subsections 
(d)(7)(B)(ii) and (h)(1). ’’. 
(B) EXTENSION.—Subparagraph (B) of 
section 51(c)(4) of such Code is amended by 
striking ‘‘December 31 2005’’ and inserting 
‘‘December 31, 2009’’. 
(2) WELFARE-TO-WORK CREDIT.— 
(A) TEMPORARY DOUBLING OF CREDIT.— 
Section 51A of such Code is amended by redes-
ignating subsection (f) as subsection (g) and by 
inserting after subsection (e) the following new 
subsection: 
‘‘(f) TEMPORARY DOUBLING
OF CREDIT.—In the 
case of individuals beginning work for the employer after 
the date of the enactment of the Community Economic 
Development Expertise Enhancement Act of 2005 and be-
fore January 1, 2010, this section shall be applied by dou-
bling each of the dollar amounts in paragraphs (4) and 
(5)(C) of subsection (b). ’’. 
(B) EXTENSION.—Subsection (f) of section 
51A of such Code is amended by striking ‘‘De-
cember 31 2005’’ and inserting ‘‘December 31, 
2009’’. 
(3) TEMPORARY DOUBLING OF EMPOWERMENT 
ZONE EMPLOYMENT CREDIT.—Subsection (c) of sec-
tion 1396 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(4) TEMPORARY
DOUBLING
OF
CREDIT.—In 
the case of individuals beginning work for the em-
ployer after the date of the enactment of the Com-
munity Economic Development Expertise Enhance-
ment Act of 2005 and before January 1, 2010, this 
section shall be applied by doubling the dollar 
amounts in paragraphs (2) and (3)(B).’’.
(4) TEMPORARY DOUBLING OF RENEWAL COM-
MUNITY EMPLOYMENT CREDIT.—Subsection (b) of 
section 1400H of such Code is amended by adding 
at the end the following new flush sentence: 
‘‘In the case of individuals beginning work for the em-
ployer after the date of the enactment of the Community 
Economic Development Expertise Enhancement Act of 
2005 and before January 1, 2010, paragraph (2) shall be 
applied by substituting ‘$20,000’ for ‘$10,000’. ’’. 
(5) INDIAN EMPLOYMENT CREDIT.— 
(A) TEMPORARY INCREASE IN CREDIT.— 
(i) IN
GENERAL.—Paragraph (3) of 
section 45A(b) of such Code is amended by 
inserting before the period ‘‘($25,000 in 
the case of individuals beginning work for 
the employer after the date of the enact-
ment of the Community Economic Devel-
opment Expertise Enhancement Act of 
2005 and before January 1, 2010)’’. 
(ii) 
CONFORMING
AMENDMENT.— 
Paragraph (2) of section 45A(c) of such 
Code is amended by adding at the end the 
following new sentence: ‘‘In the case of in-
dividuals beginning work for the employer 
after the date of the enactment of the
Community Economic Development Exper-
tise Enhancement Act of 2005 and before 
January 1, 2010, the limitation under the 
preceding sentence shall not be less than 
the limitation in effect under subsection 
(b)(3).’’. 
(B) EXTENSION.—Subsection (f) of section 
45A of such Code is amended by striking ‘‘De-
cember 31 2005’’ and inserting ‘‘December 31, 
2009’’. 
(b) DEDUCTIONS
FOR EXPENSING
THE COST
OF 
PROPERTY.— 
(1) INCREASE IN SECTION 179 DEDUCTION.— 
(A) DOLLAR LIMITATION.—Paragraph (1) 
of section 179(b) of such Code is amended by 
striking 
the 
parenthetical 
and 
inserting 
‘‘($125,000 in the case of taxable years begin-
ning after the date of the enactment of the 
Community Economic Development Expertise 
Enhancement Act of 2005 and before January 
1, 2010)’’. 
(B) REDUCTION
IN
LIMITATION.—Para-
graph (2) of section 179(b) of such Code is 
amended by striking the parenthetical and in-
serting ‘‘($500,000 in the case of taxable years
beginning after the date of the enactment of the 
Community Economic Development Expertise 
Enhancement Act of 2005 and before January 
1, 2010)’’. 
(2) INCREASE IN DEDUCTION FOR COMMERCIAL 
REVITALIZATION.— 
(A) DOLLAR LIMITATION PER BUILDING.— 
Paragraph (1) of section 1400I(c) of such Code 
is amended by inserting before the comma 
‘‘($12,500,000 in the case of buildings placed in 
service after the date of the enactment of the 
Community Economic Development Expertise 
Enhancement Act of 2005 and before January 
1, 2010)’’. 
(B) DOLLAR
LIMITATION
PER
RENEWAL 
COMMUNITY.—Subparagraph (A) of section 
1400I(d)(2) of such Code is amended by strik-
ing ‘‘$12,000,000’’ and inserting ‘‘$12,000,000 
($15,000,000 in the case of calendar years end-
ing after the date of the enactment of the Com-
munity Economic Development Expertise En-
hancement Act of 2005 and before 2010)’’. 
(3) EXTENSION OF SPECIAL DEDUCTION FOR 
ENVIRONMENTAL REMEDIATION.—Subsection (h) of 
section 198 of such Code is amended by striking
‘‘December 31 2005’’ and inserting ‘‘December 31, 
2009’’. 
(4) EXTENSION OF SPECIAL DEDUCTION FOR 
PROPERTY USED ON INDIAN RESERVATIONS.—Para-
graph (8) of section 168(j) of such Code is amended 
by striking ‘‘December 31 2005’’ and inserting ‘‘De-
cember 31, 2009’’. 
Æ