[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1135 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1135

    To amend the Internal Revenue Code of 1986 to provide increased 
incentives for business investments in low-income communities and small 
                              businesses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 2003

Mr. Jefferson introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide increased 
incentives for business investments in low-income communities and small 
                              businesses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. $1,000,000,000 INCREASE IN NEW MARKETS TAX CREDIT FOR 2003 
              AND 2004.

    (a) In General.--The table contained in paragraph (1) of section 
45D(f) of the Internal Revenue Code of 1986 (relating to national 
limitation on amount of investments designated) is amended by striking 
``and 2003'' in subparagraph (B), by redesignating subparagraph (D) as 
subparagraph (F), and by striking subparagraph (C) and inserting the 
following new subparagraphs:
                    ``(C) $2,500,000,000 for 2003,
                    ``(D) $3,000,000,000 for 2004,
                    ``(E) $2,000,000,000 for 2005, and''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to calendar years after 2002.

SEC. 2. AUTHORITY TO TARGET LOW-INCOME POPULATIONS.

    Subsection (e) of section 45D of the Internal Revenue Code of 1986 
(defining low-income community) is amended by adding at the end the 
following new paragraph:
            ``(4) Targeted population.--The Secretary shall prescribe 
        regulations under which 1 or more targeted populations (within 
        the meaning of section 3(20) of the Riegle Community 
        Development and Regulatory Improvement Act of 1974 (12 U.S.C. 
        4702(20))) may be treated as low-income communities without 
        regard to paragraph (2). Such regulations shall include 
        procedures for determining which entities are qualified active 
        low-income community businesses with respect to such 
        populations.''

SEC. 3. SPECIAL STATUS FOR NEW MARKETS VENTURE CAPITAL COMPANIES.

    (a) In general.--Paragraph (2) of section 45D(c) of the Internal 
Revenue Code of 1986 (relating to qualified community development 
entity) is amended by striking ``and'' at the end of subparagraph (A), 
by striking the period at the end of subparagraph (B) and inserting ``, 
and'', and by adding at the end the following new subparagraph:
                    ``(C) any conditionally approved New Markets 
                Venture Capital Company (as defined by section 101 of 
                the Community Renewal and New Markets Initiatives Act 
                of 2001).''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2003.
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