Economic Freedom Zones Act of 2015

Bill: 114-s-790
Sponsor: Sen. Paul, Rand [R-KY]
Introduced: 2015-03-18 in the Senate
Policy area: Economics and Public Finance
Subjects: Administrative law and regulatory procedures
Air quality
Bankruptcy
Building construction
Business investment and capital
Capital gains tax
Charitable contributions
Corporate finance and management
Credit and credit markets
Economic development
Economic performance and conditions
Education programs funding
Elementary and secondary education
Employee benefits and pensions
Employment taxes
Environmental Protection Agency (EPA)
Environmental assessment, monitoring, research
Environmental regulatory procedures
Foreign labor
Government employee pay, benefits, personnel management
Government lending and loan guarantees
Government trust funds
Income tax credits
Income tax deductions
Income tax exclusion
Income tax rates
Labor standards
Labor-management relations
Licensing and registrations
Poverty and welfare assistance
Public contracts and procurement
Residential rehabilitation and home repair
Roads and highways
Securities
Self-employed
Social security and elderly assistance
Social work, volunteer service, charitable organizations
State and local finance
State and local taxation
Student aid and college costs
Tax reform and tax simplification
Transportation programs funding
Unemployment
Visas and passports
Wages and earnings
Water quality
Wilderness and natural areas, wildlife refuges, wild rivers, habitats

Summary:
action_date: 2015-03-18
text: 

Economic Freedom Zones Act of 2015
 
 
Prohibits federal assistance (e.g., loans, loan guarantees, or purchases) from being provided to: (1) a municipality or a zip code (eligible entity), other than an entity that is designated an Economic Free Zone by this Act; (2) a municipality that is a debtor in a bankruptcy proceeding; or (3) a municipality that is insolvent. 
 
Sets forth requirements for the designation of an eligible entity that is a municipality as an Economic Freedom Zone for a 10-year period, including bankruptcy eligibility, insolvency, or pervasive poverty, unemployment, and general distress.
 
Amends the Internal Revenue Code to provide tax incentives for investment in an Economic Freedom Zone, including; (1) a 5% flat tax rate on the taxable income of individuals and corporations, (2) a 0% capital gains tax rate for gain from the sale or exchange of Economic Freedom Zone assets or real property, (3) reduced employment tax rates, and (4) an increase in the expensing allowance for business property in an Economic Freedom Zone.
 
Exempts an area designated as an Economic Freedom Zone from: (1) compliance with specified environmental regulations, (2) requirements applicable to a National Heritage Area, and (3) wage rate requirements under the Davis-Bacon Act.
 
Amends the Internal Revenue Code to allow: (1) a tax credit, up to $5,000 in a taxable year for the elementary and secondary education expenses of a student attending a public, private, or religious school whose principal residence is located in an Economic Freedom Zone; (2) a tax-exempt Economic Freedom Zone educational savings account for individuals whose principal residence is located in an Economic Freedom Zone; and (3) a tax credit, in lieu of a tax deduction, for contributions to a charitable organization serving individuals in an Economic Freedom Zone.
 
Amends the Elementary and Secondary Education Act of 1965 to allow a special allocation of grant funds under such Act for the benefit of children from families residing in an Economic Freedom Zone whose incomes are below the federal poverty level.
 
Authorizes the Secretary of Homeland Security (DHS), in collaboration with the Secretary of Labor, to issue Special Economic Freedom Zone Visas to aliens meeting certain educational and skill requirements who intend to enter the United States to invest in an Economic Freedom Zone. 
 
Expresses the sense of the Senate that state and local governments should review and adopt specified policy recommendations relating to pension reform, tax reduction, adoption of school choice options, adoption of right-to-work laws, streamlining the regulatory burden, and reducing or fixing abandoned structures.


Legislative actions:
action_date: 2015-03-18
text: Read twice and referred to the Committee on Finance.
action_date: 2015-03-18
text: Introduced in Senate