109 HR 6276 IH: To amend the Internal Revenue Code of 1986 to alleviate U.S. House of Representatives 2006-09-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 6276 IN THE HOUSE OF REPRESENTATIVES September 29, 2006 Mr. Clay (for himself, Mr. Akin, Mr. Blunt, Mr. Carnahan, Mrs. Emerson, and Mr. Hulshof) 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 alleviate poverty by encouraging the employment of residents by empowerment zone businesses through the employment of residents in designated areas of pervasive poverty, unemployment, and general distress.

1.

Special rule for employment of residents in an empowerment zone

(a)

In general

Section 1397C of the Internal Revenue Code of 1986 (defining enterprise zone business) is amended by adding at the end the following new subsection: (g)

Special rules relating to resident employment requirements

(1)

In general

If a business entity or proprietorship uses all reasonable efforts during the first 6-month period of any taxable year to meet the 35 percent employee requirement under subsection (b)(6) or (c)(5) or under any other provision of this subchapter, but is unable to do so because insufficient applications of qualified candidates willing to accept and continue employment were received by such business entity or proprietorship during such period, then the business entity or proprietorship may file with the Secretary of Housing and Urban Development necessary information, including available statistics concerning the labor pool and applications received, documenting such reasonable efforts during such period and request that the Secretary of Housing and Urban Development determine whether such business entity or proprietorship used all reasonable efforts during such period to meet such requirement. If the Secretary of Housing and Urban Development determines that the business entity or proprietorship used such reasonable efforts, the Secretary of Housing and Urban Development shall issue a finding stating such determination and such requirement shall be deemed to be met for all purposes of this subchapter for such taxable year if during the final 3 months of such taxable year at least 35 percent of the employees of such business entity or proprietorship are residents of— (A)the empowerment zone, or (B)any area within a 15 mile radius of the qualified business of such business entity or proprietorship which has been designated by any Federal, State, city, or municipal governmental unit as an area of pervasive poverty, unemployment, and general distress. Any employee taken into account for purposes of such requirement by reason of this paragraph for any taxable year may continue to be taken into account for such requirement for any subsequent taxable year during which such employee remains a resident of the area described in subparagraph (A) or (B).(2)

Determination by hud

The Secretary of Housing and Urban Development shall make any and all necessary inquiries (including requesting additional information of the business entity or proprietorship) in order to respond to the request made under paragraph (1) (by making such finding or providing notice of a failure to make such finding) within 30 days of the date of such request. Any finding under paragraph (1) shall also contain a statement by the Secretary of Housing and Urban Development verifying that the areas described in paragraph (1)(B) are areas of pervasive poverty, unemployment and general distress. (3)

Employment by management company

For purposes of this subchapter, a business entity or proprietorship owner of a enterprise zone business shall be deemed the employer of any employees that a management company hires to operate such enterprise zone business. . (b)

Reports to Congress

(1)

In general

The Secretary of Housing and Urban Development shall submit to Congress, every 3 years, a report summarizing the information submitted to the Secretary by a business entity or proprietorship under section 1397C(g) of the Internal Revenue Code of 1986 (as added by subsection (a)) and the actions taken by the Secretary in response. (2)

Final report

The Comptroller General of the United States shall use the reports submitted by the Secretary of Housing and Urban Development under paragraph (1), and such other information the Comptroller General deems relevant, to make an assessment of the impact of such section 1397C(g), in the form of an update to the reports required by section 101(c) of the Community Renewal Tax Relief Act of 2000. (c)

Effective date

The amendment made by this section shall apply to taxable years beginning on and after January 1, 2006, and shall apply to any bonds outstanding on that date.