This bill modifies: (1) tax and regulatory policies that affect certain rural communities, and (2) tax rules that apply to private foundations.

The bill amends the Internal Revenue Code, with respect to program-related investments made by private foundations for a charitable purpose, to:

• modify the definition of and requirements for program-related investments;
• allow a declaratory judgment remedy to determine whether investments in any entity are program-related investments;
• expand reporting requirements for for-profit entities that receive program-related investments; and
• allow public inspection of petitions seeking a determination of program-related investment status and annual information returns.

The bill also includes several tax provisions that apply to rural renewal communities, which are low-income communities that: (1) have a population of at least 200 people but not more than 25,000 people, and are not located in a metropolitan area which has a population of 200,000 or more; or (2) are entirely within an Indian reservation.

With respect to such communities, the bill:

• allows tax credits for a portion of the costs of reducing lead, radon, or asbestos hazards in rural commercial structures;
• expands the new markets tax credit;
• allows expensing of certain depreciable business assets;
• reduces payroll taxes; and
• allows tax-preferred rural renewal community business start-up savings accounts.

Reducing Excessive Government in Rural America Act of 2016

Congress must consider legislation to reduce the regulatory cost to rural America by at least 10% over 10 years by repealing certain regulations. The legislation must be considered using expedited legislative procedures specified in the bill.