[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4096 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4096

To amend the Internal Revenue Code of 1986 to expand the incentives for 
                          renewal communities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 31, 2004

Mr. Sensenbrenner (for himself and Mr. Meehan) 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 expand the incentives for 
                          renewal communities.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as ``Renewal Communities Expansion and 
Technical Improvements Act of 2004''.

SEC. 2. EXPANSION OF TAX INCENTIVES FOR RENEWAL COMMUNITIES.

    (a) Employment Credit Allowed for Employees Residing in Any Renewal 
Community.--Subsection (b) of section 1400H of the Internal Revenue 
Code of 1986 (relating to modification) is amended by striking ``and'' 
at the end of paragraph (1), by striking the period at the end of 
paragraph (2) and inserting ``, and'', and by inserting after paragraph 
(2) the following new paragraph:
            ``(3) subsection (d)(1)(B) thereof shall be applied by 
        substituting `within any' for `within such'.''.
    (b) Public Service Cap Exemption.--
            (1) In general.--Part III of subchapter X of chapter 1 of 
        such Code (relating to additional incentives) is amended by 
        adding at the end the following new section:

``SEC. 1400K. PUBLIC SERVICE CAP EXEMPTION.

    ``In the case of an area designated as a renewal community which 
was an enterprise community, the same exemption from the percentage 
limitation under section 105(a)(8) of the Housing and Community 
Development Act of 1974 on the use of community development block 
grants for provision of public services that applied to such enterprise 
community shall apply to the renewal community.''.
            (2) Clerical amendment.--The table of sections for Part III 
        of subchapter X of chapter 1 of such Code is amended by adding 
        at the end the following new item:

``Sec. 1400K. Public service cap exemption.''.
    (c) Expansion of Renewal Community to Include Adjacent Areas of 
High Economic Distress and Certain Noncontiguous Parcels.--Subsection 
(a) of section 1400E of such Code is amended by adding at the end the 
following new paragraph:
            ``(6) Expansion of designated areas.--
                    ``(A) In general.--The Secretary of Housing and 
                Urban Development may expand the boundaries of any area 
                designated as a renewal community to include--
                            ``(i) any census tract or census block 
                        group adjacent to the renewal community which 
                        the Secretary of Housing and Urban Development 
                        determines is an area of high economic 
                        distress,
                            ``(ii) any census tract or census block 
                        group adjacent to the renewal community if not 
                        less than 50 percent of such tract or group is 
                        non-residential, or
                            ``(iii) any census tract or census block 
                        group which is noncontiguous to the renewal 
                        community (determined without regard to this 
                        paragraph) if not less than 50 percent of such 
                        tract or group is non-residential.
                    ``(B) Limitation on number of parcels.--
                Subparagraph (A)(iii) shall not apply to more than 5 
                parcels with respect to any renewal community.
                    ``(C) Period for which designation is in effect.--
                Any expansion of a renewal community under this 
                paragraph shall be effective on the date designated by 
                the Secretary of Housing and Urban Development and 
                shall continue in effect thereafter as part of such 
                renewal community.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to years beginning after the date of the enactment of this Act.
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