1.
(a)This Act may be cited as the
Upstate Works
Act
.
(b)Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c)The table of contents of this Act is as
follows:
Sec. 1. Short title;
etc.
TITLE I—Investments for manufacturing progress and clean
technology
Sec. 101. Clean energy manufacturing revolving loan fund
program.
Sec. 102. Clean
energy and efficiency manufacturing partnerships.
Sec. 103. Technical
amendments.
TITLE II—Agricultural producers value-added investment tax
credit
Sec. 201. Credit for
farmer investment in value-added agricultural property.
TITLE III—Training grants for employees
Sec. 301. Definition of Secretary.
Sec. 302. Authorization.
Sec. 303. Use of amounts.
Sec. 304. Requirement of matching funds.
Sec. 305. Limit on administrative expenses.
Sec. 306. Authorization of appropriations.
TITLE IV—Tax credits to expand broadband access
Sec. 401. Credit for
property used to furnish broadband services in rural areas.
TITLE V—Supporting investment in urban centers
Sec. 501. Extension
of benefits.
Sec. 502. Expansion
of businesses eligible for benefits; expansion of eligible business
activities.
Sec. 503.
Modifications permitting expansion of designated areas.
Sec. 504. Expanded
use of tax-exempt bonds.
Sec. 505. Other
modifications.
Sec. 506. Grants for
awareness of zone benefits and technical assistance to small
business.
Sec. 507. Effective
date.
<enum>I</enum><header display-inline="yes-display-inline">Investments for manufacturing progress and
clean technology</header>
<section commented="no" display-inline="no-display-inline" id="id56E09BB6ED6545F3AE7F9BC8A7C55819" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Clean energy manufacturing revolving loan
fund program</header><text display-inline="no-display-inline">The National
Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/271">15 U.S.C. 271 et seq.</external-xref>) is amended by
inserting after section 26 the following:</text>
<quoted-block display-inline="no-display-inline" id="H18162042E48248D683159DE105A33CBA" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HD2AB70326EAC4742B3509A4EA5ABE3E6" section-type="subsequent-section"><enum>27.</enum><header display-inline="yes-display-inline">Clean energy manufacturing revolving loan
fund program</header>
<subsection commented="no" display-inline="no-display-inline" id="H2C266341806A4530ABB1996D356220FC"><enum>(a)</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="yes-display-inline">The purposes of this section are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5D05AA8441AF42CA9E5C16AD0A92B570"><enum>(1)</enum><text display-inline="yes-display-inline">to develop the long-term manufacturing
capacity of the United States;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDCA488F84806402B9590938A5CB3A6BB"><enum>(2)</enum><text display-inline="yes-display-inline">to create jobs through the retooling and
expansion of manufacturing facilities to produce clean energy technology
products and energy efficient products;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H04D4E9EB305544A4A101C4A8C39166C4"><enum>(3)</enum><text display-inline="yes-display-inline">to improve the long-term competitiveness of
domestic manufacturing by increasing the energy efficiency of manufacturing
facilities; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H663432E90D9B4B9898EEB3CE771F9AE4"><enum>(4)</enum><text display-inline="yes-display-inline">to assist small and medium-sized
manufacturers diversify operations to respond to emerging clean energy
technology product markets.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H88B2538FDFDA4F3696128D18CE2537FB"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCA85719A15694407988C9892CDFA8142"><enum>(1)</enum><header display-inline="yes-display-inline">Clean energy technology
product</header><text display-inline="yes-display-inline">The term <term>clean
energy technology product</term> means technology products relating to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD919E6F1C34F47A2B4122BFCEFF5B2B9"><enum>(A)</enum><text display-inline="yes-display-inline">wind turbines;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBC6FC68AEADF4E5D87022257B3688C25"><enum>(B)</enum><text display-inline="yes-display-inline">solar energy;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1AEBCB34A344ADBB081D64975133AB2"><enum>(C)</enum><text display-inline="yes-display-inline">fuel cells;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H274DA18FBF0148338DE9045B91FC21BE"><enum>(D)</enum><text display-inline="yes-display-inline">advanced batteries, battery systems, or
storage devices;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0E69DF0A86E34FC7A314CA5AB44D6331"><enum>(E)</enum><text display-inline="yes-display-inline">biomass equipment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3884ECB0F4E540E999A3C3614DE51CE9"><enum>(F)</enum><text display-inline="yes-display-inline">geothermal equipment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H76D18F7B9F1045AEBA226552461D6F1A"><enum>(G)</enum><text display-inline="yes-display-inline">advanced biofuels;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE96B224541BE4BD8A94CC2DF0FD275F7"><enum>(H)</enum><text display-inline="yes-display-inline">ocean energy equipment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8E866A82CFE2436394C189226FD95343"><enum>(I)</enum><text display-inline="yes-display-inline">carbon capture and storage;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H244CABA4E2284DC49F6808EF0653ACFE"><enum>(J)</enum><text display-inline="yes-display-inline">such other products as the Secretary
determines—</text>
<clause commented="no" display-inline="no-display-inline" id="H387113D550AB4172954BEBCE2777F672"><enum>(i)</enum><text display-inline="yes-display-inline">relate to the production, use,
transmission, storage, control, or conservation of energy;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEC26E69E3C1F45F38013F2BEB2C94571"><enum>(ii)</enum><text display-inline="yes-display-inline">reduce greenhouse gas
concentrations;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC3465571C8974546895B2B85ADAEA37B"><enum>(iii)</enum><text display-inline="yes-display-inline">achieve the earliest and maximum emission
reductions within a reasonable period per dollar invested;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCBBF4304C005437E806D6A12D0E54D94"><enum>(iv)</enum><text display-inline="yes-display-inline">result in the fewest non-greenhouse gas
environmental impacts; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE771CBA1C7E142879423F39E60341C5E"><enum>(v)</enum><subclause commented="no" display-inline="yes-display-inline" id="id2496C8499EC341A899E224C950CCE5AE"><enum>(I)</enum><text display-inline="yes-display-inline">reduce the need for additional energy
supplies by—</text>
<item commented="no" display-inline="no-display-inline" id="idFBCCB5FB9CC2452BAF28EFF97944C204" indent="up1"><enum>(aa)</enum><text display-inline="yes-display-inline">using existing energy supplies with greater
efficiency; or</text>
</item><item commented="no" display-inline="no-display-inline" id="H2495A729E4CA439AB2A309AAD1B844D4" indent="up1"><enum>(bb)</enum><text display-inline="yes-display-inline">transmitting, distributing, or transporting
energy with greater effectiveness through the infrastructure of the United
States; or</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="HC96EB79FFA0B4A12A6BB9020A2D5DCE9" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">diversify the sources of energy supply of
the United States—</text>
<item commented="no" display-inline="no-display-inline" id="H5C545FC9570C4C7A9D02A3849204CA5C"><enum>(aa)</enum><text display-inline="yes-display-inline">to strengthen energy security; and</text>
</item><item commented="no" display-inline="no-display-inline" id="H0B54A820659D4444B648AB3F1490E312"><enum>(bb)</enum><text display-inline="yes-display-inline">to increase supplies with a favorable
balance of environmental effects if the entire technology system is
considered.</text>
</item></subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H25361952231B4C3591631EAEDD9B87EC"><enum>(2)</enum><header display-inline="yes-display-inline">Energy efficient product</header><text display-inline="yes-display-inline">The term <term>energy efficient
product</term> means a product that the Secretary, in consultation with the
Secretary of Energy, determines—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF9BF4BA791654EA79894EFCBB3D5EB3D"><enum>(A)</enum><text display-inline="yes-display-inline">consumes significantly less energy than the
average amount that all similar products consumed on the day before the date of
the enactment of this Act; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6E8E026732B34D5798E8844C04B0F5CE"><enum>(B)</enum><text display-inline="yes-display-inline">is a component, system, or group of
subsystems that is designed, developed, and validated to optimize the energy
efficiency of a product.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H713E848449F34DAFBC404EB8144C0E2A"><enum>(3)</enum><header display-inline="yes-display-inline">Program</header><text display-inline="yes-display-inline">The term <term>Program</term> means the
grant program established pursuant to
<internal-xref idref="H0D52E7F4E49F4AB0ABB6A58D819E11BA"> subsection
(c)(1)</internal-xref>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HADD4ACB87657497BA244F0368EE40767"><enum>(4)</enum><header display-inline="yes-display-inline">Revolving loan fund</header><text display-inline="yes-display-inline">The term <term>revolving loan fund</term>
means a revolving loan fund described in subsection (d).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6BC9069F930D450DA214C33A1167B36D"><enum>(5)</enum><header display-inline="yes-display-inline">Small or medium-sized
manufacturer</header><text display-inline="yes-display-inline">The term
<term>small or medium-sized manufacturer</term> means a manufacturer that
employs fewer than 500 full-time equivalent employees at a manufacturing
facility that is not owned or controlled by an automobile manufacturer.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE7E8D3C3363F4CC39B409E7192358B4B"><enum>(c)</enum><header display-inline="yes-display-inline">Grant program</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0D52E7F4E49F4AB0ABB6A58D819E11BA"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Not later than 120 days after the date of
the enactment of this section, the Secretary shall establish a program under
which the Secretary shall award grants to States to establish revolving loan
funds to provide loans to small or medium-sized manufacturers to finance the
cost of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA192C30F53324CABA05B1964D15DA27B"><enum>(A)</enum><text display-inline="yes-display-inline">reequipping, expanding, or establishing
(including applicable engineering costs) a manufacturing facility in the United
States to produce—</text>
<clause commented="no" display-inline="no-display-inline" id="H89BB84FAF32B42879C6C245C420AF643"><enum>(i)</enum><text display-inline="yes-display-inline">clean energy technology products;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCEA5CE9793794036B66CC23EC41E61FB"><enum>(ii)</enum><text display-inline="yes-display-inline">energy efficient products; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7DE7C7E5E72B403A93E31B9FADD4BCAA"><enum>(iii)</enum><text display-inline="yes-display-inline">integral component parts of clean energy
technology products or energy efficient products; or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H03A7F12BB890413DB0CE2AF8424E21BE"><enum>(B)</enum><text display-inline="yes-display-inline">reducing the energy intensity or greenhouse
gas production of a manufacturing facility in the United States, including
using energy intensive feedstocks.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEDF044AD6A0A42DCB59319C437369F7F"><enum>(2)</enum><header display-inline="yes-display-inline">Maximum
amount</header><text display-inline="yes-display-inline">The Secretary may not
award a grant under the Program in an amount that exceeds $500,000,000 in any
fiscal year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBBA13294D7644378BA5B16E73DF4E285"><enum>(d)</enum><header display-inline="yes-display-inline">Criteria for awarding grants</header>
<paragraph commented="no" display-inline="no-display-inline" id="H813C3D332A80449CB79668173E015C4E"><enum>(1)</enum><header display-inline="yes-display-inline">Matching
funds</header><text display-inline="yes-display-inline">The Secretary may not
award a grant to a State under the Program unless the State ensures that not
less than 20 percent of the amount of each loan provided by the State under the
Program originates from non-Federal sources.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC852D9B4CD8548DFA8D6F433558A1256"><enum>(2)</enum><header display-inline="yes-display-inline">Administrative costs</header><text display-inline="yes-display-inline">Grants under the Program may only be used
for the costs of administering the revolving loan fund, in accordance with
regulations promulgated by the Secretary.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC47734CF789F4839B00DF2863360A454"><enum>(3)</enum><header display-inline="yes-display-inline">Application</header><text display-inline="yes-display-inline">Each State seeking a grant under the
Program shall submit an application to the Secretary in such form, in such
manner, and containing such information as the Secretary considers
appropriate.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7AC4CFA51025418C8FADEF558946499F"><enum>(4)</enum><header display-inline="yes-display-inline">Evaluation</header><text display-inline="yes-display-inline">The Secretary shall evaluate and prioritize
each application submitted by a State for a grant under the Program on the
basis of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6024AEC00D6B4A248DB55458CBE036B1"><enum>(A)</enum><text display-inline="yes-display-inline">the description of—</text>
<clause commented="no" display-inline="no-display-inline" id="idF0B1AFB344784E8D805A4EB68EE0B4D1"><enum>(i)</enum><text display-inline="yes-display-inline">the revolving loan fund to be established
with the grant; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id65D98B0EFFBA45418E2AE1F32AB23987"><enum>(ii)</enum><text display-inline="yes-display-inline">how such revolving loan fund is expected to
achieve the purposes described in
<internal-xref idref="H2C266341806A4530ABB1996D356220FC"> subsection
(a)</internal-xref>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H82737F7401DA4A48BB49692965340BEC"><enum>(B)</enum><text display-inline="yes-display-inline">whether the State will be able to provide
loans from the revolving loan fund to small or medium-sized manufacturers
within 120 days after receiving the grant;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC1D8F982EEBA4D12935009350CACDB5B"><enum>(C)</enum><text display-inline="yes-display-inline">a description of how the State is planning
to coordinate the administration of the revolving loan fund with other State
and Federal programs, including programs administered by the Assistant
Secretary for Economic Development;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EB5AF28729946FEA1981E70F6FF3F37"><enum>(D)</enum><text display-inline="yes-display-inline">a description of the actual or potential
clean energy manufacturing supply chains, including significant component
parts, in the region served by the revolving loan fund;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA4B068B30A34033877C62977C5183D4"><enum>(E)</enum><text display-inline="yes-display-inline">how the State is planning to target the
provision of loans under the Program to manufacturers located in regions
characterized by high unemployment and sudden and severe economic dislocation,
particularly if mass layoffs have resulted in a precipitous increase in
unemployment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9A123D02319F4593B44F0FFB32FBD924"><enum>(F)</enum><text display-inline="yes-display-inline">the availability of a skilled manufacturing
workforce in the region served by the revolving loan fund;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE85862C193984BA4BBB8EEDD6BCC9244"><enum>(G)</enum><text display-inline="yes-display-inline">the capacity of the region’s workforce and
education systems to provide pathways for unemployed or low-income workers into
skilled manufacturing employment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB0BDCB4C48E747AE9F28CCA9F14EB458"><enum>(H)</enum><text display-inline="yes-display-inline">a description of how the State will target
loans to small or medium-sized manufacturers that—</text>
<clause commented="no" display-inline="no-display-inline" id="H19B2AFAA998747F8A93B65ADD021A7B1"><enum>(i)</enum><text display-inline="yes-display-inline">manufacture automobile components;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H42EF2649B17944259A2C0ACB9DBF6414"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id0D506A26D14B416B9BB182C22A7F252C"><enum>(I)</enum><text display-inline="yes-display-inline">increase the energy efficiency of their
manufacturing facilities; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idDE3D8F5134014CE58799A8949B3D2752" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">retool to manufacture clean energy products
or energy efficient products, including manufacturing components to improve the
compliance of an automobile with fuel economy standards prescribed under
<external-xref legal-doc="usc" parsable-cite="usc/49/32902">section
32902</external-xref> of title 49, United States Code;</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBE95A712FDBC472396DA1583B97C3B61"><enum>(I)</enum><text display-inline="yes-display-inline">a description of how the State is planning
to use the loan fund to achieve the earliest and maximum greenhouse gas
emission reductions within a reasonable period of time for each dollar invested
and with the fewest non-greenhouse gas environmental impacts; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCB4FE14394A54139BEFB11989FBB320B"><enum>(J)</enum><text display-inline="yes-display-inline">such other factors as the Secretary
considers appropriate to ensure that grants awarded under the Program
effectively and efficiently achieve the purposes described in
<internal-xref idref="H2C266341806A4530ABB1996D356220FC"> subsection
(a)</internal-xref>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HAFC62AD1992940CD8346F51F0EF60F07"><enum>(e)</enum><header display-inline="yes-display-inline">Revolving loan funds</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD744EE4C499042B88D0DA9403D70A3E3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A State receiving a grant under the Program
shall establish, maintain, and administer a revolving loan fund in accordance
with this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF0B4B0CE9DB943EEB01999D36AA7EE6C"><enum>(2)</enum><header display-inline="yes-display-inline">Deposits</header><text display-inline="yes-display-inline">A revolving loan fund shall consist
of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1E4F5C775A5C4E16875B94624AFA345A"><enum>(A)</enum><text display-inline="yes-display-inline">amounts from grants awarded under this
section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H288CA050352A4711B635CF0D76B4D098"><enum>(B)</enum><text display-inline="yes-display-inline">all amounts held or received by the State
incident to the provision of loans described in
<internal-xref idref="H14D27D3D2EF54E708E23677E981F4E7D">subsection
(f)</internal-xref>, including all collections of principal and
interest.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4B7DCD4C8D0A4ECB80B005A32F50B574"><enum>(3)</enum><header display-inline="yes-display-inline">Expenditures</header><text display-inline="yes-display-inline">Amounts in the revolving loan fund shall be
available for the provision and administration of loans in accordance with
<internal-xref idref="H14D27D3D2EF54E708E23677E981F4E7D">subsection
(f)</internal-xref>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H14D27D3D2EF54E708E23677E981F4E7D"><enum>(f)</enum><header display-inline="yes-display-inline">Loans</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3CEF093A5EAB4C7997DD3E20A62A8901"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A State receiving a grant under this
section shall use the amount in the revolving loan fund to provide loans to
small or medium-sized manufacturers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7CF59A4A1C86495794742C703216F560"><enum>(2)</enum><header display-inline="yes-display-inline">Loan terms and conditions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H02225E06C42B4F078BD442E9175A3184"><enum>(A)</enum><header display-inline="yes-display-inline">Terms</header><text display-inline="yes-display-inline">In determining the term of each loan
provided under paragraph (1), the State shall ensure that—</text>
<clause commented="no" display-inline="no-display-inline" id="HF4E1726522A2453AB11671D32B610FDC"><enum>(i)</enum><text display-inline="yes-display-inline">the term of any loan for fixed assets does
not exceed the useful life of the asset and is shorter than 15 years;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H66D014CCE29D4D5785BDCB41018B3D62"><enum>(ii)</enum><text display-inline="yes-display-inline">the term of any loan for working capital is
not longer than 3 years.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAF7B395146864D5AA40545C2F2867FBA"><enum>(B)</enum><header display-inline="yes-display-inline">Interest
rates</header><text display-inline="yes-display-inline">The interest rate set
by the State for each loan provided under paragraph (1)—</text>
<clause commented="no" display-inline="no-display-inline" id="idFBE476554C9144F5A5C02EECA40E0409"><enum>(i)</enum><text display-inline="yes-display-inline">shall enable the loan recipient to
accomplish the activities described in subparagraphs (A) and (B) of subsection
(c)(1);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H51AFC7527FD9488097B0FAA977162787"><enum>(ii)</enum><text display-inline="yes-display-inline">may be set at below-market interest
rates;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC18930D820D2459CAA3C9E656BD21BA3"><enum>(iii)</enum><text display-inline="yes-display-inline">may not be lower than 0 percent; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H09DA39CAA66641489B0203AA051E80D2"><enum>(iv)</enum><text display-inline="yes-display-inline">may not be greater than 500 basis points
above the prime rate, as of the settlement date for such loan.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC192D3E31684495282FBA292EF2B0DA3"><enum>(C)</enum><header display-inline="yes-display-inline">Description and budget for use of loan
funds</header><text display-inline="yes-display-inline">Each recipient of a
loan from a State under the Program shall develop and submit, to the State and
to the Secretary, a description and budget for the use of loan amounts,
including a description of—</text>
<clause commented="no" display-inline="no-display-inline" id="H8DCB6D156AA246A097F495D48D51EEBB"><enum>(i)</enum><text display-inline="yes-display-inline">any new business expected to be developed
with the loan;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCBC81D71AADB42AB84BCD4AB0F53D4A0"><enum>(ii)</enum><text display-inline="yes-display-inline">any improvements to manufacturing
operations to be developed with the loan; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2BF1723084AE4E218756F4FD7BDB504F"><enum>(iii)</enum><text display-inline="yes-display-inline">any technology expected to be
commercialized with the loan.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6CD268DCF6E34161B542EDD0EA3FDEDA"><enum>(D)</enum><header display-inline="yes-display-inline">Priority in review and preference in
selection for certain loan applicants</header>
<clause commented="no" display-inline="no-display-inline" id="H3A63F7A6802A41D2A451636F48A45C5C"><enum>(i)</enum><header display-inline="yes-display-inline">Review</header><text display-inline="yes-display-inline">In reviewing applications submitted by
small or medium-sized manufacturers for a loan, a recipient of a grant under
the Program shall give priority to small or medium-sized manufacturers
described in clause (iii).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H560A328847694D6EB25518DFA381FE00"><enum>(ii)</enum><header display-inline="yes-display-inline">Selection</header><text display-inline="yes-display-inline">In selecting small or medium-sized
manufacturers to receive a loan, a recipient of a grant under the Program shall
give preference to small or medium-sized manufacturers described in clause
(iii).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H33851753E05A478BAB0BB18CEF57879E"><enum>(iii)</enum><header display-inline="yes-display-inline">Priority and preferred small or
medium-sized manufacturers</header><text display-inline="yes-display-inline">A
small or medium-sized manufacturer described in this clause is a manufacturer
that—</text>
<subclause commented="no" display-inline="no-display-inline" id="H5AE7E94CD1CF4E1581A5897D63106AA3"><enum>(I)</enum><text display-inline="yes-display-inline">is certified by a Hollings Manufacturing
Extension Center or a manufacturing-related local intermediary designated by
the Secretary for purposes of providing such certification; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H2EE6698AF11A466FB0FC953455BB132C"><enum>(II)</enum><text display-inline="yes-display-inline">provides individuals employed at the
manufacturing facilities of the manufacturer with—</text>
<item commented="no" display-inline="no-display-inline" id="H57B20365C0C54127B5F242DFF4257C7F"><enum>(aa)</enum><text display-inline="yes-display-inline">pay that is, on average, not less than the
average wage of an individual working in a manufacturing facility in the State;
and</text>
</item><item commented="no" display-inline="no-display-inline" id="H579B1C5FA3C64FAABC4E7DBBB7FC859F"><enum>(bb)</enum><text display-inline="yes-display-inline">health benefits.</text>
</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H2C67FF892B2D4C30AB94A2EB9B5A32FF"><enum>(iv)</enum><header display-inline="yes-display-inline">Certification by Hollings Manufacturing
Extension Center</header><text display-inline="yes-display-inline">A Hollings
Manufacturing Extension Center or other entity designated by the Secretary for
purposes of providing certification under clause (iii)(I) may not certify
applications for a loan until the Center or other entity has completed a
qualitative and quantitative review of the applicant’s business strategy,
manufacturing operations, and technological ability to contribute to the
purposes described in subsection (a).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H98C4A5A0DF164B9DB528CAC9E6E630CE"><enum>(E)</enum><header display-inline="yes-display-inline">Repayment upon relocation outside United
States</header>
<clause commented="no" display-inline="no-display-inline" id="H1E2D03B57AD74A10A60800B2D100FC70"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The recipient of a loan under paragraph (1)
to finance the cost of reequipping, expanding, or establishing a manufacturing
facility or to reduce the energy intensity of a manufacturing facility that
relocates the production activities of such manufacturing facility outside the
United States during the term of the loan shall repay such loan in full in
accordance with this subparagraph.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDB920AA7DE144E77BE7E0DD8134BE6B9"><enum>(ii)</enum><header display-inline="yes-display-inline">Payment of interest</header><text display-inline="yes-display-inline">The repayment of a loan under clause (i)
shall bear interest at a penalty rate determined by the Secretary to deter
recipients of loans under paragraph (1) from relocating production activities
outside the United States.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2A07C2BCE4AC44B6BFD7A87EE5D8BF8F"><enum>(iii)</enum><header display-inline="yes-display-inline">Period of repayment</header><text display-inline="yes-display-inline">The Secretary shall determine the duration
of the repayment of a loan under clause (i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB2FB4B61AF6F4619953A3AB08DDB30F2"><enum>(F)</enum><header display-inline="yes-display-inline">Compliance with wage rate
requirements</header><text display-inline="yes-display-inline">Each recipient
of a loan under paragraph (1) shall incorporate, into all contracts for
construction, alteration, or repair, which are paid for, in whole or in part,
with amounts obtained pursuant to such loan, a requirement that all laborers
and mechanics employed by contractors and subcontractors performing
construction, alteration, or repair shall be paid wages at rates not less than
those determined by the Secretary of Labor, in accordance with subchapter IV of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40,
United States Code (known as the <quote>Davis-Bacon Act</quote>), to be
prevailing for the corresponding classes of laborers and mechanics employed on
projects of a character similar to the contract work in the same locality in
which the work is to be performed. With respect to the labor standards
specified in this subparagraph, the Secretary of Labor shall have the authority
and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed.
Reg. 3176; 64 Stat. 1267) and
<external-xref legal-doc="usc" parsable-cite="usc/40/3145">section
3145</external-xref> of title 40, United States Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA328F62378BF4C9A941A0D295F345520"><enum>(G)</enum><header display-inline="yes-display-inline">Annual reports by loan
recipients</header><text display-inline="yes-display-inline">Not less
frequently than once each year during the term of each loan issued by a State
under paragraph (1), the loan recipient shall submit a report to such State
that contains such information as the Secretary may specify for purposes of the
Program, including information that the Secretary can use to determine whether
a recipient of a loan is required to repay the loan under subparagraph
(E).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D6D9B9C500742CBA7391E72DAC85D15"><enum>(3)</enum><header display-inline="yes-display-inline">Annual reports by grant
recipients</header><text display-inline="yes-display-inline">Not less
frequently than once each year, each recipient of a grant under the Program
shall submit a report to the Secretary that describes—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id59A60FFD8F614FA78B5E711583A06A2D"><enum>(A)</enum><text display-inline="yes-display-inline">the impact of each loan issued by the State
under the Program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56E34E7991CC4E28868CF442C00D5B02"><enum>(B)</enum><text display-inline="yes-display-inline">the aggregate impact of all such loans,
including—</text>
<clause commented="no" display-inline="no-display-inline" id="H2CCB23515AFB4CC7ABB8C95A717FBB3E"><enum>(i)</enum><text display-inline="yes-display-inline">the sales increased or retained;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H648906F7D51F4C85B48A55D844504036"><enum>(ii)</enum><text display-inline="yes-display-inline">cost savings or costs avoided;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7ACD6223D11D435F9E554D99E184655B"><enum>(iii)</enum><text display-inline="yes-display-inline">additional investment encouraged;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H24D41AAF2F434CBC93F726CB645D4A7B"><enum>(iv)</enum><text display-inline="yes-display-inline">jobs created or retained.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF414314898D64A9F9BFA1FF598914235"><enum>(g)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated $15,000,000,000 for each of fiscal years 2011 and
2012 to carry out this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H7CDEB1E6F9B345F682524B2A1EDD6A21" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Clean energy and efficiency manufacturing
partnerships</header>
<subsection commented="no" display-inline="no-display-inline" id="H50CBE274E72F4F8C844B3AF7B2F67379"><enum>(a)</enum><header display-inline="yes-display-inline">Hollings Manufacturing Partnership
Program</header><text display-inline="yes-display-inline">Section 25(b) of the
National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k(b)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2F7B0F3D75094B068498F5DF88DF7688"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking
<quote>and</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69771401B7714D8E9B1FE20626493909"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking the period at
the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC54BC516174F4ACBAE48BA63F956026A"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEE9056807E8346E494F8885738A9E097" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE080476DE2AB4146BBA629DD20FB34CC"><enum>(4)</enum><text display-inline="yes-display-inline">the establishment of a clean energy
manufacturing supply chain initiative—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2BD1F7E3C7AA46C482CDD48E24294238"><enum>(A)</enum><text display-inline="yes-display-inline">to support manufacturers in their
identification of and diversification to new markets, including support for
manufacturers transitioning to the use of clean energy supply chains;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5EBFAE3A77054CC1ADD3F2F6AF1F3827"><enum>(B)</enum><text display-inline="yes-display-inline">to assist manufacturers improve their
competitiveness by reducing energy intensity and greenhouse gas production,
including the use of energy intensive feedstocks;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4C004FBFD70A478E9C25EECCAF8C89F5"><enum>(C)</enum><text display-inline="yes-display-inline">to increase adoption and implementation of
innovative manufacturing technologies;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H910FC77447934F57A10C3CEFC6991FFA"><enum>(D)</enum><text display-inline="yes-display-inline">to coordinate and leverage the expertise of
the National Laboratories and Technology Centers and the Industrial Assessment
Centers of the Department of Energy to meet the needs of manufacturers;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H01AC4FC35557426198010979508637D5"><enum>(E)</enum><text display-inline="yes-display-inline">to identify, assist, and certify
manufacturers seeking loans under section
27(e)(1).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H06FAA6A1CD2D4D8EA39DD882808AF48D"><enum>(b)</enum><header display-inline="yes-display-inline">Reduction in cost share
requirements</header><text display-inline="yes-display-inline">Section 25(c) of
the National Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k(c)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HED34BA46A928430B9A5335BD33CD17D7"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>six
years</quote> and inserting <quote>6 years, or as provided in paragraph
(5)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC7F68E3EA7AA4A29B6469753CA56F9F5"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3)(B), by striking <quote>not
less than 50 percent of the costs incurred for the first 3 years and an
increasing share for each of the last 3 years</quote> and inserting <quote>50
percent of the costs incurred, or such lesser percentage of the costs incurred
that the Secretary determines, by rule, to be appropriate</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFBF08E161DC34261B61A8D028319C99C"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (5)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H19E4A84E710A42D9A33256739DDE52B5"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>at declining
levels</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB4DADFC5609548D897EE19045CED53C7"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>one third of the capital
and annual operating and maintenance costs</quote> and inserting <quote>50
percent of the capital and annual operating and maintenance costs, or such
lesser percentage that the Secretary determines, by rule, to be
appropriate</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE038475DB4EF43C4AC8BCD1DEF95A3EC"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary of Commerce for the Hollings
Manufacturing Partnership Program authorized under sections 25 of the National
Institute of Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k</external-xref>) and for the
provision of assistance under section 26 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278l">15 U.S.C.
278l</external-xref>)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H47B533F062854A75AC34B320A8D08D1E"><enum>(1)</enum><text display-inline="yes-display-inline">$200,000,000 for fiscal year 2010;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43B39B651A10463EBED61F63A023E64E"><enum>(2)</enum><text display-inline="yes-display-inline">$250,000,000 for fiscal year 2011;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6EE8A667264B46B8A187CF27B72ED45F"><enum>(3)</enum><text display-inline="yes-display-inline">$300,000,000 for fiscal year 2012;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0684958A812544458446245C3F6BFAC7"><enum>(4)</enum><text display-inline="yes-display-inline">$350,000,000 for fiscal year 2013;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H752F6607F5E84AA3BBC2971925F1BA6C"><enum>(5)</enum><text display-inline="yes-display-inline">$400,000,000 for fiscal year 2014.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H8F6EDFCE49D44BF885857C697AEDA005" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Technical amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="H47193602C11643BD8AEFE210B621E592"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment to National Institute of
Standards and Technology Act</header><text display-inline="yes-display-inline">Section 25 of the National Institute of
Standards and Technology Act (<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C. 278k</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4D6D2EEADDEB459AB3491D54853B39C5"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking
<quote>(hereafter in this Act referred to as the
<quote>Centers</quote>)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2701A84642204254AA0E008184A654DD"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H4166F3B131F442248489E653BB12BC4E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H829417B6DB8A493A9366D25F28740536"><enum>(g)</enum><header display-inline="yes-display-inline">Designation</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB36B5C2056C44B639AAA43FBB6EEF530"><enum>(1)</enum><header display-inline="yes-display-inline">Hollings Manufacturing Partnership
Program</header><text display-inline="yes-display-inline">For purposes of this
Act, the program established under this section shall be known as the
<term>Hollings Manufacturing Partnership Program</term>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE217E16B68D4AE9A7260A6AD7B8CF50"><enum>(2)</enum><header display-inline="yes-display-inline">Hollings Manufacturing Extension
Centers</header><text display-inline="yes-display-inline">For purposes of this
Act, the Regional Centers for the Transfer of Manufacturing Technology created
and supported under subsection (a) shall be known as <term>Hollings
Manufacturing Extension Centers</term> or
<term>Centers</term>).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H84F6D722928844E682F970B487A69984"><enum>(b)</enum><header display-inline="yes-display-inline">Amendment to Consolidated Appropriations
Act, 2005</header><text display-inline="yes-display-inline">Title II of
division B of the Consolidated Appropriations Act, 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/108/447">Public Law
108–447</external-xref>; 118 Stat. 2879;
<external-xref legal-doc="usc" parsable-cite="usc/15/278k">15 U.S.C.
278k</external-xref> note) is amended under the heading <quote><header-in-text level="appropriations-small" other-style="traditional-inline" style="other">industrial technology services</header-in-text></quote> by
striking <quote>2007:
<proviso><italic>Provided further, </italic>That</proviso></quote>
and all that follows through <quote>Extension Centers.</quote> and inserting
<quote>2007.</quote>.</text>
</subsection></section><enum>II</enum><header display-inline="yes-display-inline">Agricultural producers value-added
investment tax credit</header>
<section commented="no" display-inline="no-display-inline" id="H331777D4B1624B1094F038002CCD82FA" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Credit for farmer investment in value-added
agricultural property</header>
<subsection commented="no" display-inline="no-display-inline" id="H414BF6ED80E54D3F9E1250F33DBED83"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended by adding at the
end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H945FABF030BE4D5C91AB6EBEF6ECF13C" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H7268A4427B484048B21B00AEAB96D535" section-type="subsequent-section"><enum>45S.</enum><header display-inline="yes-display-inline">Value-added agricultural property
investment credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H226CFFFAAF774D49B6A59F53AFDEC8E9"><enum>(a)</enum><header display-inline="yes-display-inline">General rule</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of
a taxpayer who is—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H77870FF2A3E14628A9BEA2AB00F9F5C6"><enum>(1)</enum><text display-inline="yes-display-inline">an eligible person, or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC735496425FE4A948DE490B2F24BAA55"><enum>(2)</enum><text display-inline="yes-display-inline">a farmer-owned entity,</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">the value-added agricultural
property investment credit determined under this section for any taxable year
is 50 percent of the basis of any qualified value-added agricultural property
placed in service during the taxable year. In the case of a farmer-owned
entity, such credit shall be allocated on a pro rata basis among eligible
persons holding qualified investments in such entity as of the last day of such
taxable year.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="H94EA7DB5A7214477B1674352CB614D21"><enum>(b)</enum><header display-inline="yes-display-inline">Maximum
credit</header><text display-inline="yes-display-inline">For purposes of
subsection (a)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE9ED0C7F92024B0C83B37425BE69C6CD"><enum>(1)</enum><header display-inline="yes-display-inline">Property placed in service by eligible
person</header><text display-inline="yes-display-inline">In the case of
property placed in service during a taxable year by an eligible person, the
credit determined under this section for such year shall not exceed $30,000,
reduced by the amount of the creditable investments allowed for the taxable
year under paragraph (2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA396167ED04A425EA5FA39E403D31638"><enum>(2)</enum><header display-inline="yes-display-inline">Property placed in service by farmer-owned
entity</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6CCD0818E7CD4250BB38E14EA77059A3"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of property placed in service
by a farmer-owned entity, the credit determined under this section shall not
exceed the sum of the eligible person’s creditable investments in such entity
as of the date such property is placed in service.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H05EFEDC9D46A4B60A9F62108184929BF"><enum>(B)</enum><header display-inline="yes-display-inline">Creditable investments</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term
<term>creditable investments</term> means, with respect to any property placed
in service by a farmer-owned entity, the aggregate qualified investments made
by the eligible person in such entity, reduced (but not below zero) by the sum
of—</text>
<clause commented="no" display-inline="no-display-inline" id="H6FAA44040DBF4ADBAAE4911D37DB8EC0"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of the aggregate qualified
investments made by such person in such entity which were taken into account
under this section with respect to property previously placed in service by
such entity, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1413C34F894A4DE2B750DE99B00BBC8"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of the aggregate qualified
investments made by such person in all other farmer-owned entities which were
taken into account under this section with respect to property previously
placed in service by such other entities.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0A7C6D02156C4E4AAE6226E51D37F250"><enum>(C)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">For purposes of this paragraph, the
aggregate qualified investments made by the eligible person which may be taken
into account for any taxable year shall not exceed $30,000.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4B20E48FF8474D0FB8514D007110C190"><enum>(c)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H569CB7F1CA4C4A2B86295D6FC82A1EB"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified value-added agricultural
property</header><text display-inline="yes-display-inline">The term
<term>qualified value-added agricultural property</term> means property—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3050601D39E14F4BA44DAE3D66C200CB"><enum>(A)</enum><text display-inline="yes-display-inline">which is used to add value to a good or
product, suitable for food or nonfood use, derived in whole or in part from
organic matter which is available on a renewable basis, including agricultural
crops and agricultural wastes and residues, wood wastes and residues, and
domesticated animal wastes,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H63E839FDF73A440ABE00182EF831433D"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H35A9809AF2F34B5F90E17FF2FAA4082C"><enum>(i)</enum><text display-inline="yes-display-inline">to which section 168 applies without regard
to any useful life, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB9F573CB178C42AF8502836D27742FEE" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which depreciation (or
amortization in lieu of depreciation) is allowable and having a useful life
(determined as of the time such property is placed in service) of 3 years or
more, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H60D782C98C454E6D00EF6818D0F55CC"><enum>(C)</enum><text display-inline="yes-display-inline">which is owned and operated by an eligible
person or a farmer-owned entity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBBD7A5F44E3448D8A4C7663377A734E2"><enum>(2)</enum><header display-inline="yes-display-inline">Eligible person</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC9CC67F6C09C4A3DB98C8F300000F377"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>eligible person</term> means
a person who materially participates during the taxable year in an eligible
farming business.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H195E7CED0D1A42D7AFD021BF52CF1D98"><enum>(B)</enum><header display-inline="yes-display-inline">Material participation</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the
determination of whether a person materially participates in the trade or
business of farming shall be made in a manner similar to the manner in which
such determination is made under section 2032A(e)(6). In the case that the
person is a corporation, cooperative, partnership, estate, or trust, such
determination shall be made at the shareholder, partner, or beneficial
interests level (as the case may be).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81BE79DF50894AED8972A4D3F54D23FD"><enum>(C)</enum><header display-inline="yes-display-inline">Eligible farming business</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term
<term>eligible farming business</term> means a farming business (as defined in
section 263A(e)(4)) which is not a passive activity (within the meaning of
section 469(c)).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5D27BF08A54242A38167ED37F210438C"><enum>(3)</enum><header display-inline="yes-display-inline">Farmer-owned entity</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2C10779DBAC9411ABB7F46FD45C9002"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>farmer-owned entity</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="H3E803D82B9F44BBABAB69836195E9169"><enum>(i)</enum><text display-inline="yes-display-inline">a corporation (including an S corporation)
in which eligible persons own 50 percent or more of the total voting power of
the stock and 50 percent or more (in value) of the stock,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFDC334CFCDE1401085A9D4D00B2B3C8"><enum>(ii)</enum><text display-inline="yes-display-inline">a partnership in which eligible persons own
50 percent or more of the total voting power of the profits interest and 50
percent or more (in value) of the profits interest, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HCE463B9093C54685ACD605E05277101F"><enum>(iii)</enum><text display-inline="yes-display-inline">a cooperative in which eligible persons own
50 percent or more of the total voting power of the member patronage interests
and 50 percent or more (in value) of the member patronage interests.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2211FE22722F4FE78B2711D1DB02D2D7"><enum>(B)</enum><header display-inline="yes-display-inline">Constructive ownership rules</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), rules
similar to the rules of section 263A(e)(2)(B) shall apply; except that, in
applying such rules, the members of an individual’s family shall be the
individuals described in subparagraph (C).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H90665B4EDAC64374BB61640096CE2CA5"><enum>(C)</enum><header display-inline="yes-display-inline">Members of family</header><text display-inline="yes-display-inline">The family of any individual shall include
only his spouse and children, grandchildren, and great grandchildren (whether
by the whole or half blood), and the spouses of his children, grandchildren,
and great grandchildren, who reside in the same household or jointly operate
farming businesses (as defined in section 263A(e)(4)). For purposes of the
preceding sentence, a child who is legally adopted, or who is placed with the
taxpayer by an authorized placement agency for adoption by the taxpayer, shall
be treated as a child by blood.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE75C80566181446084F853CAD930EA8D"><enum>(4)</enum><header display-inline="yes-display-inline">Qualified investments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA49947BD2FB4D21A4DD38125A3D596"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified investments</term>
means a payment of cash for the purchase of a qualified equity interest in a
farmer-owned entity.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H721281BB2F974608966DC68015C37A3"><enum>(B)</enum><header display-inline="yes-display-inline">Qualified equity interest</header><text display-inline="yes-display-inline">The term <term>qualified equity
interest</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="HB49BFC22EE3F4918A1CFCC21D32C36F7"><enum>(i)</enum><text display-inline="yes-display-inline">any stock in a domestic corporation if such
stock is acquired by the taxpayer after December 31, 2008, and before January
1, 2015, at its original issue (directly or through an underwriter) from the
corporation solely in exchange for cash,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H15C7D077932F45B3B4BF2189EE7A6F0"><enum>(ii)</enum><text display-inline="yes-display-inline">any capital or profits interest in a
domestic partnership if such interest is acquired by the taxpayer after
December 31, 2008, and before January 1, 2015, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4911473A44AB41A0BBBBE5F11078FE73"><enum>(iii)</enum><text display-inline="yes-display-inline">any patronage interest in a cooperative if
such interest is acquired by the taxpayer after December 31, 2008, and before
January 1, 2015.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">Rules similar to the rules of
section 1202(c)(3) shall apply for purposes of this paragraph.</continuation-text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8E2504D0FEE24314B8DB897647F08083"><enum>(d)</enum><header display-inline="yes-display-inline">Special rules</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H929E174F41EB4AC08442D9BCEF7B4E04"><enum>(1)</enum><header display-inline="yes-display-inline">Treatment of married
individuals</header><text display-inline="yes-display-inline">In the case of a
separate return by a married individual (as defined in section 7703),
subsection (b)(3)(A) shall be applied by substituting <quote>$15,000</quote>
for <quote>$30,000</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H409BE44ED71A40C39FFB32A4A48BC682"><enum>(2)</enum><header display-inline="yes-display-inline">Applicable rules</header><text display-inline="yes-display-inline">Under regulations prescribed by the
Secretary—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7E470F9236D34217880055AF0546C173"><enum>(A)</enum><header display-inline="yes-display-inline">Allocation of credit in the case of estates
and trusts</header><text display-inline="yes-display-inline">Rules similar to
the rules of subsection (d) of section 52 shall apply.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4EBCF3EBD72E41798BEC4873773E3805"><enum>(B)</enum><header display-inline="yes-display-inline">Certain property not eligible</header><text display-inline="yes-display-inline">Rules similar to the rules of section 50(b)
shall apply.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB9CAC6EA974F4AB4A33900A747B7FE44"><enum>(3)</enum><header display-inline="yes-display-inline">Basis adjustment</header><text display-inline="yes-display-inline">For purposes of this subtitle, if a credit
is allowed under this section to any eligible person with respect to qualified
value-added agricultural property, the basis of such property shall be reduced
by the amount of the credit so allowed and increased by the amount of recapture
under subsection (e).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCED7551BFDDF471593094E57E47FB66"><enum>(e)</enum><header display-inline="yes-display-inline">Recapture in the case of certain
dispositions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFC6769B9BB5C435A84056BF3F5B23D7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Under regulations prescribed by the
Secretary, rules similar to the rules of section 50(a) shall apply with respect
to an eligible person if, within the 5-year period beginning on the date
qualified value-added agricultural property with respect to which such person
was allowed a credit under subsection (a) is originally placed in
service—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA2C1ABE963ED4C07996EE3AACC2F5439"><enum>(A)</enum><text display-inline="yes-display-inline">such property ceases to be qualified for
purposes of this section,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H154C3B60A97747648E1611CAFF27781B"><enum>(B)</enum><text display-inline="yes-display-inline">the eligible person or the farmer-owned
entity (as the case may be) disposes of all or part of such property, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBEDD4DF0F117421D9843B3DF33735400"><enum>(C)</enum><text display-inline="yes-display-inline">the eligible person or the farmer-owned
entity (as the case may be) ceases to be an eligible person or farmer-owned
entity for purposes of this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H84FC2A7A35744B2C9ECD6E76C8C2016E"><enum>(2)</enum><header display-inline="yes-display-inline">Special rules in event of death</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE13035B696F143D9A248FA9CB4FFE958"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The period in paragraph (1) shall be
suspended with respect to an eligible person for the 2-year period beginning on
the date of death of such person.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H367FA3EABCB5414894EB05537162DB3B"><enum>(B)</enum><header display-inline="yes-display-inline">Heirs who are eligible
persons</header><text display-inline="yes-display-inline">In the case that an
heir of an eligible person is also an eligible person, neither paragraph (1)
nor subparagraph (A) of this paragraph (unless elected by such heir) shall
apply with respect to the transfer of property to such heir.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9A26212BBCB243C2BFA3618604433016"><enum>(f)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6ED5E9836A0749C794A6C0D5A411CFD6"><enum>(g)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">This section shall not apply to property
placed in service after December 31,
2012.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0CC00F7EB218447FB83BC58385BA00E0"><enum>(b)</enum><header display-inline="yes-display-inline">Credit allowed as part of general business
credit</header><text display-inline="yes-display-inline">Section 38(b)
(defining current year business credit) is amended by striking
<quote>plus</quote> at the end of paragraph (35), by striking the period at the
end of paragraph (36) and inserting <quote>, plus</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC14D783D1BCA48599EEC94545CF9ADFA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HCBC4134279104C42A47C50B468C1F238"><enum>(37)</enum><text display-inline="yes-display-inline">in the case of an eligible person (as
defined in section 45S(c)(2)) or farmer-owned entity (as defined in section
45S(c)(3)), the value-added agricultural property investment credit determined
under section
45S(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H984AF8618C63409B831E014EEAFAB43"><enum>(c)</enum><header display-inline="yes-display-inline">Credit allowable against minimum
tax</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 38(c)(4) is amended by redesignating clauses (vii) through (ix) as
clauses (viii) through (x), respectively, and by inserting after clause (vi)
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HA8C2628ED1E44FF7BC0461850882A5F7" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HE917C8CD552341EEB18BE4B3563F9705"><enum>(vii)</enum><text display-inline="yes-display-inline">the credit determined under section 45S
(relating to value-added agricultural property investment
credit).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H182C2C11C8EF4CE19887D89667FF00F8"><enum>(d)</enum><header display-inline="yes-display-inline">Deduction for certain unused business
credits</header><text display-inline="yes-display-inline">Subsection (c) of
section 196 is amended by striking <quote>and</quote> at the end of paragraph
(13), by striking the period at the end of paragraph (14) and inserting
<quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H498125C133264607AF00AE5219C21BCF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE82B9BAA3FD04F0A005F9BC356EF8544"><enum>(15)</enum><text display-inline="yes-display-inline">the value-added agricultural property
investment credit determined under section
45S.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H82DFBEB7E9EE4C7BBDD6A497EDAFCAF2"><enum>(e)</enum><header display-inline="yes-display-inline">Basis adjustment</header><text display-inline="yes-display-inline">Subsection (a) of section 1016 is amended
by striking <quote>and</quote> at the end of paragraph (36), by striking the
period at the end of paragraph (37) and inserting <quote>, and</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4F22CD432E1D4A7D82FE61017025A2D7" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H3943D549A7D3416BA9B4C73D0192CD2"><enum>(38)</enum><text display-inline="yes-display-inline">to the extent provided in section
45S(d)(3), in the case of payments with respect to which a credit has been
allowed under section
38.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H66FD56EAB9AC41018F8E025B3782B835"><enum>(f)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart D of part
IV of subchapter A of chapter 1 is amended by adding at the end thereof the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="H550FB89C682E46E2891C2723E4440034" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 45S. Value-added
agricultural property investment
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB61F3CBDCC504CA0A520C79D86E7F0A7"><enum>(g)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to qualified investments (as defined in section
45S(c)(4) of the Internal Revenue Code of 1986, as added by this section) made,
and property placed in service, after December 31, 2010.</text>
</subsection></section><enum>III</enum><header display-inline="yes-display-inline">Training grants for employees</header>
<section commented="no" display-inline="no-display-inline" id="ID92AAF8015D1A4DE482363C22E246597F" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Definition of Secretary</header><text display-inline="no-display-inline">In this title, the term
<quote>Secretary</quote> means the Secretary of Labor.</text>
</section><section commented="no" display-inline="no-display-inline" id="ID855F93BA14164EFA002682FB651B21C4" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Authorization</header>
<subsection commented="no" display-inline="no-display-inline" id="IDB070C835283E4CD8B282EF5407092729"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary, in consultation with the
Secretary of Commerce, shall award grants to eligible entities described in
subsection (b) to assist the entities to improve the job skills necessary for
employment in specific industries.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID634757F17F294F13964016FDB52F23EA"><enum>(b)</enum><header display-inline="yes-display-inline">Eligible entities described</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDDE6716EF4CF64A449F21CC903C1C0092"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An eligible entity described in this
subsection is a consortium that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID40A4F7D4FEB04A118409F8F2DF55547C"><enum>(A)</enum><text display-inline="yes-display-inline">shall consist of representatives from not
less than 5 businesses, or a lesser number of businesses if such lesser number
of businesses employs at least 30 percent of the employees in the industry
involved in the region (or a nonprofit organization that represents such
businesses);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2A7B75559D8F4876BD52CC5229D075D7"><enum>(B)</enum><text display-inline="yes-display-inline">may consist of representatives from—</text>
<clause commented="no" display-inline="no-display-inline" id="ID241766B51952478A84421C6EC36C4EB6"><enum>(i)</enum><text display-inline="yes-display-inline">labor organizations;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID8A4A01AD455F4B008EDE00AA6F1FABEE"><enum>(ii)</enum><text display-inline="yes-display-inline">State and local government; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID81DC96ED84BB426197F9BCDE5CAEDE62"><enum>(iii)</enum><text display-inline="yes-display-inline">educational institutions;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID84538C2653CD4D99897543AEF63186FA"><enum>(C)</enum><text display-inline="yes-display-inline">is established to serve 1 or more
particular industries; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDDEA9D83D993A48C38DCE97F287BEDB03"><enum>(D)</enum><text display-inline="yes-display-inline">is established to serve an eligible
area.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7B83ADE08B6D45B8AC65A85B87F21D15"><enum>(2)</enum><header display-inline="yes-display-inline">Eligible area</header><text display-inline="yes-display-inline">The term <term>eligible area</term> means
any county that, based on information contained in the most recent decennial
census, has a population of not more than 1,000,000 residents.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDEC1DABA3576F4A96912E7DB0BA8E3F71"><enum>(3)</enum><header display-inline="yes-display-inline">Majority of representatives</header><text display-inline="yes-display-inline">A majority of the representatives
comprising the consortium shall be representatives described in paragraph
(1)(A).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8D0FF41EFCB84035BDF0754604E6C8FB"><enum>(c)</enum><header display-inline="yes-display-inline">Priority for small businesses</header><text display-inline="yes-display-inline">In providing grants under subsection (a),
the Secretary shall give priority to an eligible entity if a majority of
representatives forming the entity represent small-business concerns (as
defined in <external-xref legal-doc="act" parsable-cite="SBA/3(a)">section
3(a)</external-xref> of the <act-name parsable-cite="SBA">Small Business
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/632(a)">15
U.S.C. 632(a)</external-xref>).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDC11AE0BA18144C198ECAA1B9A49E7EDE"><enum>(d)</enum><header display-inline="yes-display-inline">Maximum amount of grant</header><text display-inline="yes-display-inline">The amount of a grant awarded to an
eligible entity under subsection (a) may not exceed $1,000,000 for any fiscal
year.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDED610B1416E54188B0898885E3145DEB" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Use of amounts</header>
<subsection commented="no" display-inline="no-display-inline" id="ID2164E29215AE4487B8D8F300B0B5A02D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary may not award a grant under
section 402 to an eligible entity unless the entity agrees to use amounts
received from the grant to improve the job skills necessary for employment by
businesses in the industry with respect to which the entity was
established.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID6004F2683EDD4750B922E6009BC3FA9B"><enum>(b)</enum><header display-inline="yes-display-inline">Conduct of program</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID157E59AE51684310AD5E76D013D38200"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In carrying out the program described in
subsection (a), the eligible entity may provide for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDB58356DA80AF4BE697246F99F300B469"><enum>(A)</enum><text display-inline="yes-display-inline">an assessment of training and job skill
needs for the industry;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD5876894047649FCBF27001CC1FEF074"><enum>(B)</enum><text display-inline="yes-display-inline">the development of a sequence of skill
standards that are benchmarked to advanced industry practices;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1F7A48416F664FD2BF6CCDFFE73046F0"><enum>(C)</enum><text display-inline="yes-display-inline">the development of curriculum and training
methods, including, where appropriate, e-learning or technology-based
training;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID47FEB665500F42B58972C9C1FE92641E"><enum>(D)</enum><text display-inline="yes-display-inline">the purchase, lease, or receipt of
donations of training equipment;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID59780EC370BD40A6A565BB9E5823F086"><enum>(E)</enum><text display-inline="yes-display-inline">the identification of training providers
and the development of partnerships between the industry and educational
institutions, including community colleges;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDD0784200DF80448DB4794D63199834CF"><enum>(F)</enum><text display-inline="yes-display-inline">the development of apprenticeship
programs;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE77BB12ACCF54993BB3BB400D2B0A025"><enum>(G)</enum><text display-inline="yes-display-inline">the development of training programs for
workers, including dislocated workers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDE13B24F4F9C540C8AF8D2D9CCF336453"><enum>(H)</enum><text display-inline="yes-display-inline">the development of training plans for
businesses; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF5697EFE1064465FAA0544FA64F27218"><enum>(I)</enum><text display-inline="yes-display-inline">the development of the membership of the
entity.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID92E7FE0A93164B8AB05FFF08F52240FB"><enum>(2)</enum><header display-inline="yes-display-inline">Additional requirement</header><text display-inline="yes-display-inline">In carrying out the program described in
subsection (a), the eligible entity shall provide for the development and
tracking of performance outcome measures for the program and the training
providers involved in the program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDD3FF8EB2C382477AB4D1B7A6F7FCCF35"><enum>(c)</enum><header display-inline="yes-display-inline">Administrative costs</header><text display-inline="yes-display-inline">The eligible entity may use not more than
10 percent of the amount of a grant to pay for administrative costs associated
with the program described in subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDDC70D624CEBE467A82E8AD6DFF72C656" section-type="subsequent-section"><enum>304.</enum><header display-inline="yes-display-inline">Requirement of matching funds</header>
<subsection commented="no" display-inline="no-display-inline" id="IDBDB8983AAE7547E3829033F31E98417B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary may not award a grant under
section 402 to an eligible entity unless the entity agrees that the entity will
make available non-Federal contributions toward the costs of carrying out
activities under the grant in an amount that is not less than $2 for each $1 of
Federal funds provided under the grant, of which—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID6A851EB3DB434207A7F827331DAEB4E6"><enum>(1)</enum><text display-inline="yes-display-inline">$1 shall be provided by the businesses
participating in the entity; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDA544750C62E45C086BF44E2DED67E90"><enum>(2)</enum><text display-inline="yes-display-inline">$1 shall be provided by the State or local
government involved.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3EDF7D5DFABC4F7EBEEE14C00096A84C"><enum>(b)</enum><header display-inline="yes-display-inline">Other contributions</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDB9BCDF7FAA15432E8F8F37254B2422F2"><enum>(1)</enum><header display-inline="yes-display-inline">Equipment</header><text display-inline="yes-display-inline">Equipment donations to facilities that are
not owned or operated by the members of the eligible entity involved and that
are shared by the members may be included in determining compliance with
subsection (a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE6E7024B6F20497C92FEE504635DEDBB"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idBE8270D9B0B14B0D9BB57E0C8955F95B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An eligible entity may not include in-kind
contributions in complying with the requirement of subsection (a).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9CD033A48C9B4D3C9841CBE8477823D4"><enum>(B)</enum><header display-inline="yes-display-inline">Consideration</header><text display-inline="yes-display-inline">The Secretary may consider donations
described in subparagraph (A) in ranking applications.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="ID8CF42CB9AE7C42EE92B4B782DB1000AA" section-type="subsequent-section"><enum>305.</enum><header display-inline="yes-display-inline">Limit on administrative
expenses</header><text display-inline="no-display-inline">The Secretary may use
not more than 5 percent of the amounts made available to carry out this title
to pay the Federal administrative costs associated with awarding grants under
this title.</text>
</section><section commented="no" display-inline="no-display-inline" id="ID49DECBE441FB44B195ED125210C5C51F" section-type="subsequent-section"><enum>306.</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated to carry out this title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idBE4F9A20EA034891BAA37F43E0A9B2D3"><enum>(1)</enum><text display-inline="yes-display-inline">$50,000,000 for each of fiscal years 2011
through 2015; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBFBD776424204968AB2AA2DCE5D5DF30"><enum>(2)</enum><text display-inline="yes-display-inline">such sums as are necessary for each fiscal
year thereafter.</text>
</paragraph></section><enum>IV</enum><header display-inline="yes-display-inline">Tax credits to expand broadband
access</header>
<section commented="no" display-inline="no-display-inline" id="HD0691423A1104208A07DB2BF21C5D378" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Credit for property used to furnish
broadband services in rural areas</header>
<subsection commented="no" display-inline="no-display-inline" id="H583E4134BD814F1F80E0EA11850079B0"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits), as amended by this Act, is
amended by inserting after section 45S the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HEF4E7C864D4D4DF896B4276C63BAA48" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HB58783F8318943AF8C6DC571B482C51C" section-type="subsequent-section"><enum>45T.</enum><header display-inline="yes-display-inline">Property used to furnish broadband services
in rural areas</header>
<subsection commented="no" display-inline="no-display-inline" id="HE5536B9D8D774478BBD038DA87115C98"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of section 38, the broadband
services credit determined under this section is an amount equal to 50 percent
of the cost of each qualified broadband property placed in service during the
taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE5A0A6CA4D80443B9717DB8C8F7979EB"><enum>(b)</enum><header display-inline="yes-display-inline">Increased percentage where high speed
service provided</header><text display-inline="yes-display-inline">Subsection
(a) shall be applied by substituting <quote>60 percent</quote> for <quote>50
percent</quote> in any case where the qualified broadband property provides
transmission service at a speed which is not less than—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC66E52DE68CC4DB287642B382945AC81"><enum>(1)</enum><text display-inline="yes-display-inline">except in the case of commercial mobile
radio services, 50 megabits per second downstream and 20 megabits per second
upstream, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC0556F0DF5E4ECCBFC30744F67F31E0"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of commercial mobile radio
services, 10 megabits per second downstream and 2 megabits per second
upstream.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3FDA66A7F64144C2A16C85D64A099C4"><enum>(c)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBE1B70AAE7F847869043030453F36700"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified broadband property</header><text display-inline="yes-display-inline">The term <term>qualified broadband
property</term> means section 1245 property (as defined in section
1245(a)(3))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H98980B798B894A728174B9F596A44591"><enum>(A)</enum><text display-inline="yes-display-inline">which is used to provide broadband services
in rural areas to purchasers of such services,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAD6D54E7E471474EBD404DC5ACAAB6B8"><enum>(B)</enum><text display-inline="yes-display-inline">which is—</text>
<clause commented="no" display-inline="no-display-inline" id="HE66DDE840FBC4144A0AA3BBA19BA9575"><enum>(i)</enum><text display-inline="yes-display-inline">tangible property (to which section 168
applies), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEF0F9A562F0347B0B1279289834F5B8C"><enum>(ii)</enum><text display-inline="yes-display-inline">computer software (as defined in section
197(e)(3)(B)) which is described in section 197(e)(3)(A) and to which section
167 applies, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA9706E795A254DF400F0BB9934F300DB"><enum>(C)</enum><text display-inline="yes-display-inline">the original use of which commences with
the taxpayer.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Such term shall not include any
property described in section 50(b).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H545366247A6940A09219CC55E2DA01C8"><enum>(2)</enum><header display-inline="yes-display-inline">Broadband</header><text display-inline="yes-display-inline">The term <term>broadband</term> means an
Internet Protocol-based transmission service (at a speed which is not less than
5 megabits per second downstream and 1 megabit per second upstream) that
enables users to send and receive voice, video, data, graphics, or a
combination, without regard to any transmission media or technology.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE35A62207C094195BD02FC9092084866"><enum>(3)</enum><header display-inline="yes-display-inline">Rural area</header><text display-inline="yes-display-inline">The term <term>rural area</term> means any
census tract outside a metropolitan statistical area (as defined by the Office
of Management and Budget).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H317D0D296CFF4CD0936EAD092182FC1C"><enum>(4)</enum><header display-inline="yes-display-inline">Regulated entities</header><text display-inline="yes-display-inline">The credit determined under subsection (a)
may not be used to reduce a taxpayer's cost of service, but may be used to
reduce rate base, provided that such reduction is restored not less rapidly
than ratably. For purposes of determining ratable restorations to rate base,
the period of time used in computing depreciation expense for purposes of
reflecting operating results in the taxpayer's regulated books of account shall
be used.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H34EA3B792972456C94EA7BEE556932F9"><enum>(d)</enum><header display-inline="yes-display-inline">Other rules to apply</header><text display-inline="yes-display-inline">Rules similar to the rules of paragraphs
(3), (4), and (5) of section 179(d) shall apply for purposes of this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9016EE644C814C8CB30064EA5E4E8DB8"><enum>(e)</enum><header display-inline="yes-display-inline">Basis reduction</header><text display-inline="yes-display-inline">Rules similar to the rules of sections
50(c) (other than paragraph (3) thereof) and 1016(a)(19) shall apply for
purposes of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC5354ECC28F9469683A9444CBCF94E38"><enum>(b)</enum><header display-inline="yes-display-inline">Credit To be part of general business
credit</header><text display-inline="yes-display-inline">Subsection (b) of
section 38, as amended by this Act, is amended by striking <quote>plus</quote>
at the end of paragraph (37), by striking the period at the end of paragraph
(38) and inserting <quote>, plus</quote>, and by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H089D508E34164D97849357D182E72E9" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HDFE2DA370A9F437D93D3BE1F47F1A807"><enum>(39)</enum><text display-inline="yes-display-inline">the broadband services credit determined
under section
45T(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H82405FE04B92451DAE38EFC5AB9003E3"><enum>(c)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections subpart D of part IV
of subchapter A of chapter 1, as amended by this Act, is amended by adding at
the end the following new item:</text>
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section"><quote>Sec. 45T. Property used
to furnish broadband services in rural areas.</quote>.</toc-entry>
</toc>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2A2EAAFF94F04803845B25F236151211"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to property placed in service after the date of
enactment of this Act in taxable years ending after such date.</text>
</subsection></section><enum>V</enum><header display-inline="yes-display-inline">Supporting investment in urban
centers</header>
<section commented="no" display-inline="no-display-inline" id="HBE8CFE6F60D24750AA4273EB0C39132E" section-type="subsequent-section"><enum>501.</enum><header display-inline="yes-display-inline">Extension of benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="HCC5A2AED758F4D1C99A2F4C2788EACBA"><enum>(a)</enum><header display-inline="yes-display-inline">Empowerment zones</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8D6DA8C6F8D845278B73C8F66A33F094"><enum>(1)</enum><header display-inline="yes-display-inline">Rounds i and ii designations</header><text display-inline="yes-display-inline">Section 1391(d)(1) is amended by striking
<quote>December 31, 2009</quote> in subparagraph (A)(i) and inserting
<quote>December 31, 2019</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H771F1AE64B0C46AB9349391534E440FC"><enum>(2)</enum><header display-inline="yes-display-inline">Round iii designations</header><text display-inline="yes-display-inline">Section 1391(h)(2) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2019</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCF46AB03DC1B4997AC8A095649FE1E26"><enum>(b)</enum><header display-inline="yes-display-inline">Rural enterprise communities</header><text display-inline="yes-display-inline">Section 1391(d)(1)(A) is amended by
striking <quote>or</quote> at the end of clause (i) and by striking clause (ii)
and inserting the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="H067759609AD14058A953A808B36313AE" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HAF1642995CF74C59874160413B71941B"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of an enterprise community not
described in clause (iii), the close of the 10th calendar year beginning on or
after such date of designation, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H159CFE20C4ED4870B3550685006577EA"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of an enterprise community
designated in a rural area pursuant to section 766 of division A of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act, 1999, December 31,
2019,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H53BEBD6BA9FE45F29A880BF5E82A8581"><enum>(c)</enum><header display-inline="yes-display-inline">Renewal communities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8BE71F65043F4355ACB1382DA65ECB0F"><enum>(1)</enum><text display-inline="yes-display-inline">Sections 1400E(b) and 1400I(g) are each
amended by striking <quote>December 31, 2009</quote> each place it appears and
inserting <quote>December 31, 2019</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAEA4D264EBE84CE891E7FACCEC46D0A4"><enum>(2)</enum><text display-inline="yes-display-inline">Sections 1400E(b)(3), 1400F(b), and
1400J(b) are each amended by striking <quote>January 1, 2010</quote> each place
it appears and inserting <quote>January 1, 2020</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H561DD5A4352140FDB60CF65522B14B9B"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1400F(c)(2) amended by striking
<quote>December 31, 2014</quote> and inserting <quote>December 31,
2024</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7C882213645543A6902F5906B64A8FDF"><enum>(4)</enum><text display-inline="yes-display-inline">Section 1400F(d) is amended by striking
<quote>December 31, 2014</quote> and inserting <quote>December 31,
2024</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF9126A294F1448B5A940284C181B23A5"><enum>(5)</enum><text display-inline="yes-display-inline">Section 1400I(d)(2)(A) is amended by
striking <quote>2010</quote> and inserting <quote>2020</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB636EDE635D043569C1D7BD26728F21E"><enum>(d)</enum><header display-inline="yes-display-inline">Treatment of termination dates specified in
nominations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H12ABF48B23F94A71AC1A17A3F878C8CC"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 1391(d) is amended
by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H5579BFA7F96740A3B69B531B2075B14A" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">The termination date referred to in
subparagraph (B) shall be treated as being no earlier than the termination date
under subparagraph (A) unless an earlier termination date is designated under
subparagraph (B) after the date of the enactment of this
sentence.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFECADC787AF3436593FF5DE5FF15342C"><enum>(2)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 1400E(b) is
amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="HE94CD5D6C6754FBFBFC9476F691378BB" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">The termination date referred to in
subparagraph (B) shall be treated as being no earlier than the termination date
under subparagraph (A) unless an earlier termination date is designated under
subparagraph (B) after the date of the enactment of this
sentence</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7E49075141004D89A7AB6CF181CD9A67" section-type="subsequent-section"><enum>502.</enum><header display-inline="yes-display-inline">Expansion of businesses eligible for
benefits; expansion of eligible business activities</header>
<subsection commented="no" display-inline="no-display-inline" id="HCB98C40393324278BEBD5165BA865A6C"><enum>(a)</enum><header display-inline="yes-display-inline">Expansion of qualified business
entities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1D75257BCCC442E7AAA9B6B1DF4EC77F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsections (b) and (c) of section 1397C
are amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0FCCB6DD1A8A42E19FC690394C996186" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA5C958933CF84A369D17524710F2D4D9"><enum>(b)</enum><header display-inline="yes-display-inline">Qualified business entity</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified business entity</term> means, with respect to any taxable year,
any corporation or partnership if for such year—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1C9AF7327ED545E89B08D465C2435EA1"><enum>(1)</enum><text display-inline="yes-display-inline">any trade or business of such entity is the
active conduct of a qualified business within an empowerment zone,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA4364B98ABBD4BF39FEB38FD5611BBFD"><enum>(2)</enum><text display-inline="yes-display-inline">at least 35 percent of its employees are
residents of an empowerment zone,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA755352CEB4540B8979E8B43443F714B"><enum>(3)</enum><text display-inline="yes-display-inline">less than 5 percent of the average of the
aggregate unadjusted bases of the property of such entity is attributable to
collectibles (as defined in section 408(m)(2)) other than collectibles that are
held primarily for sale to customers in the ordinary course of such business,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H841BEAB54588454695B3EF5EB5613572"><enum>(4)</enum><text display-inline="yes-display-inline">less than 5 percent of the average of the
aggregate unadjusted bases of the property of such entity is attributable to
nonqualified financial property.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBFD1E1EA1B8C451DB7E47067EFC987B1"><enum>(c)</enum><header display-inline="yes-display-inline">Qualified proprietorship</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified proprietorship</term> means, with respect to any taxable year,
any qualified business carried on by an individual as a proprietorship if for
such year—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H72C1645995C84448AA6318CD2472007A"><enum>(1)</enum><text display-inline="yes-display-inline">at least 35 percent of such employees are
residents of an empowerment zone,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB93DE1488E564BB5AEC93521355128CF"><enum>(2)</enum><text display-inline="yes-display-inline">less than 5 percent of the average of the
aggregate unadjusted bases of the property of such individual which is used in
such business is attributable to collectibles (as defined in section 408(m)(2))
other than collectibles that are held primarily for sale to customers in the
ordinary course of such business, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC09825644DAB4B0E91AD4F5A1226E795"><enum>(3)</enum><text display-inline="yes-display-inline">less than 5 percent of the average of the
aggregate unadjusted bases of the property of such individual which is used in
such business is attributable to nonqualified financial property.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">For purposes of this subsection, the
term <term>employee</term> includes the
proprietor.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF71EEE820AC3428EA9F9D148DAD04C99"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3F9861F7977D497FA09F661C2E79BF6F"><enum>(A)</enum><text display-inline="yes-display-inline">Subsection (e) of section 1400 is amended
by striking <quote>subsections (b)(6) and (c)(5)</quote> and inserting
<quote>subsections (b)(2) and (c)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H470AA20FBB5C4D93B075DD55538CC472"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 1400B(c) is
amended by inserting <quote>(as in effect on the day before the date of the
enactment of the <short-title>Upstate Works
Act</short-title>)</quote> after <quote>1397C</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1B8FCA96AC1B4C7981ED1A1C4303D297"><enum>(b)</enum><header display-inline="yes-display-inline">Modification of employment requirement for
businesses located in areas with lower population density</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9953D2259AE94A02A854A25F12C3AEBB"><enum>(1)</enum><header display-inline="yes-display-inline">Definition of qualified business
entity</header><text display-inline="yes-display-inline">Section 1397C is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H605C95BA3F85472C85F0C2F7A55E279E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8E764D1FA6F9447286860C1775D8C908"><enum>(g)</enum><header display-inline="yes-display-inline">Modification of employment requirement for
businesses located in areas with lower population density</header>
<paragraph commented="no" display-inline="no-display-inline" id="H220A85F18A25473D845D0F31B8607A35"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of businesses located in a
lower-density empowerment zone, subsections (b)(2) and (c)(1) shall be applied
by treating employees as residents of the empowerment zone if they are
residents of a census tract—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD1E8459E5EF54969B1D80516E35D3FD2"><enum>(A)</enum><text display-inline="yes-display-inline">which is an area of pervasive poverty,
unemployment, and general distress (within the meaning of section
1400E(c)(3)(A)), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB7F3DBAB72D448218AFD0765F9341098"><enum>(B)</enum><text display-inline="yes-display-inline">any point on the boundary of which is
within 50 miles of any point on the boundary of the empowerment zone.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H514FD8CC779040F28A4AE60356FFFEBD"><enum>(2)</enum><header display-inline="yes-display-inline">Lower-density empowerment
zone</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the term <term>lower density empowerment zone</term> means any
empowerment zone the average population of population census tracts within such
zone is less than
3,000.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5E2CC64CA5FE47C5B8161A9F25C8FE6B"><enum>(2)</enum><header display-inline="yes-display-inline">Employment credit</header><text display-inline="yes-display-inline">Paragraph (1) of section 1396(d) is amended
by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H55D6D603F946450B9A32771291730A42" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">In the case of businesses located in
a lower-density empowerment zone (as defined in section 1397C(g)(2)),
subparagraph (B) shall be applied by treating employees as residents of the
empowerment zone if they are residents of a census tract which is an area of
pervasive poverty, unemployment, and general distress (within the meaning of
section 1400E(c)(3)(A)), and any point on the boundary of such tract is within
50 miles of any point on the boundary of the empowerment
zone.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE40E42C4F66A4EE29E4FB607DD599D4C"><enum>(c)</enum><header display-inline="yes-display-inline">Expansion of eligible business
activities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB4C186073C8745C8834C83F0CA0C0E4A"><enum>(1)</enum><header display-inline="yes-display-inline">Renting real or personal property
permitted</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HABDFBC9767774B16912A4DD71170B964"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (d) of section 1397C is amended
by striking paragraphs (2) and (3).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H01F63926CCC84B789BEC897522A7959B"><enum>(B)</enum><header display-inline="yes-display-inline">Recovery zone property</header><text display-inline="yes-display-inline">Paragraph (2) of section 1400U–3(c) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC7DE4E65909E4806BE47423897508CE7" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id830E050A75EF422E9789AF6724561A31"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified business</header><text display-inline="yes-display-inline">The term <term>qualified business</term>
means any trade or business except that such term shall not include any trade
or business consisting of the operation of any facility described in section
144(c)(6)(B).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5239901942D34C36BADBC9F33A0EB388"><enum>(C)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (3) of section 45D(d) is amended
by striking <quote>; except that</quote> and all that follows and inserting a
period.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6DC6809F339944C589B0B237B207D392"><enum>(2)</enum><header display-inline="yes-display-inline">Developing or holding intangibles
permitted</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H612E2674EF6A48DA828E2E3258BB28BE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (d) of section 1397C is amended
by striking paragraph (4).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC8975CE8C2C74AD9BA875ED1FE5ABE3B"><enum>(B)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Clause (iii) of section 1394(b)(3)(B) is
amended by striking <quote>, (4),</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0EA6BA7A17914395B306CA7657A9C96F"><enum>(d)</enum><header display-inline="yes-display-inline">Empowerment zone employment credit To apply
to employees at certain additional businesses and to employees who are family
members</header><text display-inline="yes-display-inline">Subparagraph (D) of
section 1396(d)(2) (defining qualified zone employee) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE9579C40BE224E19ABB4E1DBC9B6AF54"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subparagraph (A),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HACABAC91CD3F486A97743CE2C41A2A0A"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (B), (C),
(D), and (E) as subparagraphs (A), (B), (C), and (D), respectively, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H381626AFC7464C9680439053858C2CBB"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>any facility described
in section 144(c)(6)(B)</quote> in subparagraph (C), as so redesignated, and
inserting <quote>any excluded facility (as defined in section
1397C(d)(5))</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD54328A2FCC449EB8300929CC0267B9F"><enum>(e)</enum><header display-inline="yes-display-inline">Certain businesses may be financed with
gulf opportunity zone bonds</header>
<paragraph commented="no" display-inline="no-display-inline" id="H32192333AD3A472CBBE3D45308FC378D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (E) of section 1400N(a)(2) is
amended by striking <quote>any property described in section
144(c)(6)(B)</quote> and inserting <quote>any excluded facility (as defined in
section 1397C(d)(5))</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB00FFD0EC6B74DCB949324AA8C0E696F"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall apply to obligations issued after the date of the
enactment of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H3E189D5267BE43B4B94935B2CD79DC78" section-type="subsequent-section"><enum>503.</enum><header display-inline="yes-display-inline">Modifications permitting expansion of
designated areas</header>
<subsection commented="no" display-inline="no-display-inline" id="H8047D41164C84837804DAA70B18B2F6E"><enum>(a)</enum><header display-inline="yes-display-inline">Authority to expand boundaries of zones and
communities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDEB5629D6AFA47ACAC516B5C1DFB94F5"><enum>(1)</enum><header display-inline="yes-display-inline">Empowerment zones and enterprise
communities</header><text display-inline="yes-display-inline">Section 1391 is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9E142E86725F4683A119116A7821CB72" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA83B729314AF44608D7702D50A496057"><enum>(i)</enum><header display-inline="yes-display-inline">Authority To expand boundaries of
designated areas</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4DEFF33F848D47F39D5ACAFCEE893C30"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the request of all governments which
nominated an area as an empowerment zone or enterprise community, the
appropriate Secretary may expand the area of such zone or community to include
1 or more contiguous or noncontiguous areas if such governments establish to
the satisfaction of the appropriate Secretary that such expansion furthers the
purposes of the designation of the initial area as such a zone or
community.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB9C4D55A6BEE44479B95297E21A425DC"><enum>(2)</enum><header display-inline="yes-display-inline">Rural areas</header><text display-inline="yes-display-inline">With respect to any empowerment zone or
enterprise community located in a rural area, at the request of the nominating
local government, the appropriate Secretary shall expand the area of such zone
or community to include the entire area of such nominating local government,
but only if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0112F9EFD3E841E3BBFBB34A5E487FFA"><enum>(A)</enum><text display-inline="yes-display-inline">either—</text>
<clause commented="no" display-inline="no-display-inline" id="HA4208F4ACA37405CB09D6C1C5A129D0F"><enum>(i)</enum><text display-inline="yes-display-inline">the poverty rate and the unemployment rate
for such entire area as determined by the data from the most recent census was
at least 110 percent of such rate for the United States, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB568BA11F63B464A8FD8963C0BBF214F"><enum>(ii)</enum><text display-inline="yes-display-inline">during the period beginning with the
decennial census immediately preceding the most recent decennial census and
ending with the most recent decennial census, such entire area has a net out
migration of inhabitants of at least 10 percent of the population of such area,
and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFB0550C7444D49AB9607DB1CA30816CB"><enum>(B)</enum><text display-inline="yes-display-inline">such entire area meets 1 or more of the
following criteria determined by data from the most recent decennial
census:</text>
<clause commented="no" display-inline="no-display-inline" id="HCD8B6A3C45DF4E9FB761FA49E6C1A3E6"><enum>(i)</enum><text display-inline="yes-display-inline">Median household income is not more than 70
percent of such income for the United States.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7F3B43B007AC4969BED52C071479D136"><enum>(ii)</enum><text display-inline="yes-display-inline">Per capita income is not more than 75
percent of such income for the United States.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0738AADB7D3E4CA19C7C784BA1B2AEC7"><enum>(iii)</enum><text display-inline="yes-display-inline">The percentage of such area's population
which is disabled is at least 130 percent of such percentage for the United
States.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H89571E3C321F4B509D9FF9FB63C47F13"><enum>(2)</enum><header display-inline="yes-display-inline">Renewal communities</header><text display-inline="yes-display-inline">Section 1400E is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H05AA7CB6FBC64ED494FB4958E0DFDD80" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2DF0F83F114A47B5BF6375152E10E046"><enum>(h)</enum><header display-inline="yes-display-inline">Authority To expand boundaries of
designated areas</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA70272BFE51F4ED7AAFDACF8F86D5ECD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the request of all governments which
nominated an area as a renewal community, the Secretary of Housing and Urban
Development may expand the area of such community to include 1 or more
noncontiguous areas if such governments establish to the satisfaction of such
Secretary that such expansion furthers the purposes of the designation of the
initial area as a renewal community.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H51D6F099716047EBB9800B6B36C945DC"><enum>(2)</enum><header display-inline="yes-display-inline">Rural areas</header><text display-inline="yes-display-inline">With respect to any renewal community
located in a rural area, at the request of the nominating local government, the
Secretary of Housing and Urban Development shall expand the area of such
community to include the entire area of such nominating local government, but
only if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBD45E157E65C44D9BE410DA08B53C53F"><enum>(A)</enum><text display-inline="yes-display-inline">either—</text>
<clause commented="no" display-inline="no-display-inline" id="H9B9D32FAA63D4535BEA1F653091E826C"><enum>(i)</enum><text display-inline="yes-display-inline">the poverty rate and the unemployment rate
for such entire area as determined by data from the most recent decennial
census was at least 110 percent of such rate for the United States, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9FBD5EB6D2D54AE7A50FF773C90DFE22"><enum>(ii)</enum><text display-inline="yes-display-inline">during the period beginning with the
decennial census immediately preceding the most recent decennial census and
ending with the most recent decennial census, such entire area has a net out
migration of inhabitants of at least 10 percent of the population of such area,
and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCE20DCC109C545FCA9037B2637880DA7"><enum>(B)</enum><text display-inline="yes-display-inline">such entire area meets 1 or more of the
following criteria determined by data from the most recent census:</text>
<clause commented="no" display-inline="no-display-inline" id="HCAE920BB5B7948BF8299E4C2A2C0B5B0"><enum>(i)</enum><text display-inline="yes-display-inline">Median household income is not more than 70
percent of such income for the United States.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1F98D1AD5B6F4F7889BD401A4D85F8AB"><enum>(ii)</enum><text display-inline="yes-display-inline">Per capita income is not more than 75
percent of such income for the United States.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H99680DCD6F2B47CAA57B47D358357F0D"><enum>(iii)</enum><text display-inline="yes-display-inline">The percentage of such area's population
which is disabled is at least 130 percent of such percentage for the United
States.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H891A7AB261984548B64EDC44D1970C92"><enum>(3)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall take effect on the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H77792787D85B4F82ACE1C073ACD8AEDB"><enum>(b)</enum><header display-inline="yes-display-inline">Modification of requirement for expanding
designated area based on 2000 census</header>
<paragraph commented="no" display-inline="no-display-inline" id="H38C9F496EE3C4780B8ACFD32204BACC2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (ii) of section 1400E(g)(1)(A) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0CD03E12B1AF4B9E8B5B63D5DD428F38" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H2545E707C7BA486285611FF37B6A70E2"><enum>(ii)</enum><text display-inline="yes-display-inline">such tract has a poverty rate using 2000
census data—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7CD2E9AA51AB4F0B875A6D3FD555DF11"><enum>(I)</enum><text display-inline="yes-display-inline">which is at least 20 percent, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H134077CC0F8747ABA9719576B9E97899"><enum>(II)</enum><text display-inline="yes-display-inline">which exceeds the poverty rate for such
tract using 1990 census
data.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H269803D0F4F54A5B97E53A2147C67FD2"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall take effect on the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDD1C74FAE027431D9995E13636C0E306"><enum>(c)</enum><header display-inline="yes-display-inline">Repeal of exclusion of central business
district from eligibility as designated area</header>
<paragraph commented="no" display-inline="no-display-inline" id="H07724648875147EC8601E0E50C477CA5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 1392(a) is amended
by adding <quote>and</quote> at the end of subparagraph (B), by striking
<quote>, and</quote> at the end of subparagraph (C) and inserting a period, and
by striking subparagraph (D).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F7CF96BF3944875AD328CC26B3A8381"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall take effect on the date of the enactment of this
Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H90EC5E956E3A4B6FBB55A4BD1CAC000C" section-type="subsequent-section"><enum>504.</enum><header display-inline="yes-display-inline">Expanded use of tax-exempt bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="HBDFCA39D9BA3403E8988BE69D8D5C84B"><enum>(a)</enum><header display-inline="yes-display-inline">Enterprise facility bond limit for small
cities To be the same as for larger cities</header><text display-inline="yes-display-inline">Subparagraph (B) of section 1394(f)(2) is
amended by adding <quote>and</quote> at the end of clause (i), by striking
clause (iii), and by amending clause (ii) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HEB33CBE125A34F949A14E11DA3E805EB" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H8126BF3415A44B949EE2E5CB5CF0A422"><enum>(ii)</enum><text display-inline="yes-display-inline">$230,000,000 if such zone is in an urban
area.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2148A1C78B7D4809BE7F3E9AA01B8D29"><enum>(b)</enum><header display-inline="yes-display-inline">Zone employment requirement need not be met
after testing period under zone facility bond rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE360B7D0CEE44925AA2606D97AB91FDA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iii) of section 1394(b)(3)(B) is
amended by striking <quote>if at least 35 percent of the employees of such
business for such year are residents of an empowerment zone or an enterprise
community</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D1A688A621D4E08B6641EA5200BF13F"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (a) of section 1400A is amended
by striking <quote>and section 1394(b)(3)(B)(iii) shall be applied without
regard to the employee residency requirement</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8B2EE2D547CA48598C34BBACE9202367"><enum>(c)</enum><header display-inline="yes-display-inline">Zone facility bonds for small businesses
may be guaranteed</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4567992A3CF74579BBE867CA9239B7FC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (d) of section 1394 is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFC2C769AD89A4078B5DC442376C84C22" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7775A887BBEE4D54A473EB7AE5E99BDD"><enum>(d)</enum><header display-inline="yes-display-inline">Special rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA6F88C5EDC85488491F8AEE595EE4351"><enum>(1)</enum><header display-inline="yes-display-inline">Acquisition of land and existing property
permitted</header><text display-inline="yes-display-inline">The requirements of
sections 147(c)(1)(A) and 147(d) shall not apply to any bond described in
subsection (a).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H69ED2EDE961943E79DC05A7D416B44D7"><enum>(2)</enum><header display-inline="yes-display-inline">Bonds for small business may be
guaranteed</header><text display-inline="yes-display-inline">Section 149(b)
shall not apply to any bond issued as part of an issue 95 percent or more of
the net proceeds (as defined in section 150(a)(3)) of which are to be used to
provide any enterprise zone facility the principal user of which is a small
employer (as defined in section
221(c)(4)).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5744B617D13F4FCC88B3971323D58E3B"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified gulf opportunity zone
bonds</header><text display-inline="yes-display-inline">Paragraph (5) of
section 1400N(a) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4355BCF95DD54CB9833FF555674DD4FA" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HBDFFF1EDAD2E42B58EBA81E344ED3639"><enum>(H)</enum><text display-inline="yes-display-inline">Section 149(b) shall not apply to any
qualified Gulf Opportunity Zone Bond issued as part of an issue 95 percent or
more of the net proceeds (as defined in section 150(a)(3)) of such issue are to
be used for qualified project costs for nonresidential real property (including
fixed improvements associated with such property) the principal user of which
is a small employer (as defined in section
221(c)(4)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD2A9366E0E464D659478CE5F69159C8D"><enum>(3)</enum><header display-inline="yes-display-inline">Recovery zone facility bonds</header><text display-inline="yes-display-inline">Subsection (d) of section 1400U–3 is
amended by adding at the end the following new sentence: <quote>Section 149(b)
shall not apply to any recovery zone facility bond issued as part of an issue
95 percent or more of the net proceeds (as defined in section 150(a)(3)) of
such issue are to be used for recovery zone property the principal user of
which is a small employer (as defined in section 221(c)(4)).</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9C461BB5D4314AFDA38BCECB6F9D18E7"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to obligations issued after the date of the enactment
of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H53AB6B3CD14F4E32B6E3D9343392B266" section-type="subsequent-section"><enum>505.</enum><header display-inline="yes-display-inline">Other modifications</header>
<subsection commented="no" display-inline="no-display-inline" id="HBC39746F3C304EC6A4D5A709A523B0BB"><enum>(a)</enum><header display-inline="yes-display-inline">Nonrecognition of gain To apply to real
property and intangibles</header><text display-inline="yes-display-inline">Paragraph (2) of section 1397B(b) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H8F59E669B3FD4001A337E00B8AF3EDB0" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HB77C469043EF4BDAB52F76CDECE37A83"><enum>(2)</enum><header display-inline="yes-display-inline">Gain taxed as ordinary income not eligible
for rollover</header><text display-inline="yes-display-inline">This section
shall not apply to any gain which is treated as ordinary income for purposes of
this
subtitle.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC5C5413D9556496A970060BCD1BAE15E"><enum>(b)</enum><header display-inline="yes-display-inline">Election of financing arrangement in lieu
of tax benefits</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3E238B1BD39B4368B0BBD7726FAEC1A6"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1396 is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H447681016BBB49D4BC6B3F3581083038" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE68189EB4F8341E4918A1701AEC9AF95"><enum>(e)</enum><header display-inline="yes-display-inline">Election of financing arrangement in lieu
of tax benefits</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7F13684E94DC49EB9469DED5A8E5302A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the election of any significant
empowerment zone business, for the payment period of the debt obligation
designated in such election (or as an amendment to such election) by such
business—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H73EB60FDDA784BB488B762832A1BFB74"><enum>(A)</enum><text display-inline="yes-display-inline">such business—</text>
<clause commented="no" display-inline="no-display-inline" id="HB975234EF0A44AF9A77F090BB8F6B278"><enum>(i)</enum><text display-inline="yes-display-inline">shall not be allowed an empowerment zone
employment credit described in subsection (a), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF5613AABD32541968BD6EB205046B32F"><enum>(ii)</enum><text display-inline="yes-display-inline">shall not be allowed any deduction for
depreciation under section 168 with respect to qualified zone property that
provides a cost recovery benefit described in paragraph (2), and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H26710BD36E13497EB231CABE97E768D5"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary shall make the payments
described in paragraph (2) to a trustee designated by the electing business to
accept such payments on behalf of such holders).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H96D0B484DFC84A0D8477146D66DAB2F0"><enum>(2)</enum><header display-inline="yes-display-inline">Payments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HED636D4C82ED440A97715BF6C6F38B39"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">At the beginning of each year of the
payment period, the Secretary shall pay (out of any money in the Treasury not
otherwise appropriated) to the trustee designated by such business an amount
equal to—</text>
<clause commented="no" display-inline="no-display-inline" id="HC30A1E33499D4DA899EF298CB2B36E5B"><enum>(i)</enum><text display-inline="yes-display-inline">the empowerment zone employment credit
computed for such year under this section as if the election was not made under
this subsection, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF33D0A6A9275415DB94A614B018369AE"><enum>(ii)</enum><text display-inline="yes-display-inline">except as provided in paragraph (4)(A), the
amount equal to the cost recovery benefit divided by the number of years in the
payment period described in subparagraph (C).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBCE8ADBE520E4E41BFFB0766CC60BF1F"><enum>(B)</enum><header display-inline="yes-display-inline">Cost recovery benefit</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the cost
recovery benefit shall be an amount equal to 25 percent of—</text>
<clause commented="no" display-inline="no-display-inline" id="HF414967F5FBA4BEF94425ABAF5E1DD1E"><enum>(i)</enum><text display-inline="yes-display-inline">the cost of any tangible property which is
qualified zone property (including improvements to such tangible property)
incurred by the significant empowerment zone business before the end of the
first 5 full calendar years beginning after the date the election is made under
this subsection, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4DB4B1D443CA43879CB29E11ED116848"><enum>(ii)</enum><text display-inline="yes-display-inline">any such cost for which a binding contract
for financing the acquisition of such tangible property (including improvements
to such tangible property) has been made by such business and which under the
terms of the financing is to be incurred within the first 5 full calendar years
beginning after the date of the election made under this subsection.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB2B2DB89045249629251900D4ADAB253"><enum>(C)</enum><header display-inline="yes-display-inline">Payment
period</header><text display-inline="yes-display-inline">The payment period is
the period of 15 calendar years beginning with the earlier of—</text>
<clause commented="no" display-inline="no-display-inline" id="HACF80CBB0ACB4198840CD0653CFE4F03"><enum>(i)</enum><text display-inline="yes-display-inline">the calendar year specified by the
significant empowerment zone business as the 1st year of the payment period
without regard to the date the property is placed in service, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H128B958D750C4DF1A95D0F72AD0C0033"><enum>(ii)</enum><text display-inline="yes-display-inline">the 5th calendar year beginning after the
date that the election under this subsection is made.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1974DB35B0B144B9B1EDF6411AE98BD1"><enum>(3)</enum><header display-inline="yes-display-inline">Significant empowerment zone
business</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <term>significant empowerment zone business</term> means
any trade or business operating in an empowerment zone if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC8CBEB78DDE4BB69AED87F61ACFB41B"><enum>(A)</enum><text display-inline="yes-display-inline">such business is nominated by the chief
executive or the legislative body of the State or a local government in which
the zone property is located, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB5F39C570864B6DAF2F4122F10F0AFB"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary of Housing and Urban
Development determines that—</text>
<clause commented="no" display-inline="no-display-inline" id="H174EB5986CBB47AC8394DB53DBA6BB4D"><enum>(i)</enum><text display-inline="yes-display-inline">it is a facility for qualified research as
defined in section 41(d) which is reasonably anticipated to make at least
$50,000,000 of capital expenditures within the first 3 years of the payment
period, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE57C091DCB3D4D03B482D9E3BD2BEE42"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to any other business, it is
reasonably anticipated that such business will increase employment in such zone
by the end of the first 3 years of the payment period by at least the lesser
of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H4226C5E41CEB4DA4BF0AC913573527F2"><enum>(I)</enum><text display-inline="yes-display-inline">1,000 full-time employees or equivalents,
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H7464A10EA81E43DDB15AA8A70D22056A"><enum>(II)</enum><text display-inline="yes-display-inline">10 percent of the number of full-time
employees estimated to have been employed in such zone on the date of its
designation.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC84408B0C4E14DB08A2B6E2D8BD12392"><enum>(4)</enum><header display-inline="yes-display-inline">Special rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H543397CC931B4DEB8F0518CC041DFE8B"><enum>(A)</enum><header display-inline="yes-display-inline">Adjustment to cost recovery
benefit</header><text display-inline="yes-display-inline">In the event that the
significant empowerment zone business does not incur a cost within the period
described in paragraph (2)(B) and for which a cost recovery benefit payment is
made under this subsection, the Secretary shall reduce future recovery benefit
payments to recover 110 percent of the overpayments in equal installments over
the remaining payment period. In the event that a cost described in paragraph
(2)(B)(i) is incurred, or a contract described in paragraph (2)(B)(ii) is
entered into, after the beginning of the payment period, the Secretary shall
increase future recover benefit payments to recover 100 percent of the cost
recovery benefit associated with such costs or contracts in equal installments
over the remaining payment period.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5B9F41F8DB0F4474B765038036F30994"><enum>(B)</enum><header display-inline="yes-display-inline">Basis adjustment</header><text display-inline="yes-display-inline">For purposes of this subtitle, if a cost
recovery payment is made under this subsection with respect to any property,
the basis of such property shall be reduced by the amount of such
payment.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBC1747C160D044C491B660793849967F"><enum>(5)</enum><header display-inline="yes-display-inline">Treatment of payments</header><text display-inline="yes-display-inline">Any payment made under this subsection
shall not be treated as a Federal Government guarantee for purposes of section
149(b).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3891ACA4A3654CFFB3DE5AF1BF55AAC8"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 1016(a), as amended by this Act, is
amended by striking <quote>and</quote> at the end of paragraph (37), by
striking the period at the end of paragraph (38) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H86C7A5FF8E0F4A2F96297EC69309F941" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H0BF8E62C870A4D6AB23505A79DD730AC"><enum>(39)</enum><text display-inline="yes-display-inline">to the extent provided in section
1396(e)(4)(B).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H4793E6F80A194C26AAEE1C6A679BB9BA" section-type="subsequent-section"><enum>506.</enum><header display-inline="yes-display-inline">Grants for awareness of zone benefits and
technical assistance to small business</header>
<subsection commented="no" display-inline="no-display-inline" id="H4BD0DD7F1C184E21A826D6A77DCFBBBE"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Chapter 77 is amended by adding at the end
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HA9B35876AF45462FB809330182B41EF7" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HC52B04F125234719872D1C916F729791" section-type="subsequent-section"><enum>7529.</enum><header display-inline="yes-display-inline">Grants for awareness of zone benefits and
technical assistance to small business</header>
<subsection commented="no" display-inline="no-display-inline" id="HF351BC5B60234DE688B6B3B6CACD56C0"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary may make grants to State or
local governments, or nonprofit organizations, for the purpose of making
businesses aware of the benefits available under—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD26AF02CE9C8485392133AFC213892D1"><enum>(1)</enum><text display-inline="yes-display-inline">subchapter U of chapter 1 (relating to
designation and treatment of empowerment zones, enterprise communities, and
rural development investment areas),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HADFB9B3AA8F3470FAF7722258397592F"><enum>(2)</enum><text display-inline="yes-display-inline">subchapter W of chapter 1 (relating to
District of Columbia enterprise zone),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H56B88D699B5E4D449186E487BB107CB2"><enum>(3)</enum><text display-inline="yes-display-inline">subchapter X of chapter 1 (relating to
renewal communities), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC57CDD38E460413A8CE82AF86ED2AA9E"><enum>(4)</enum><text display-inline="yes-display-inline">subchapter Y of chapter 1 (relating to
short-term regional benefits).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDA41B2A4FDA34141A82B39A2B166373B"><enum>(b)</enum><header display-inline="yes-display-inline">Technical assistance grants</header><text display-inline="yes-display-inline">The Secretary may make grants to provide
technical assistance to small businesses eligible for any benefits referred to
in subsection
(a).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H91838AC1E6F645AC8B4D53D166D61609"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for such chapter is
amended by adding at the end the following new item:</text>
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section"><quote>Sec. 7529. Grants for
awareness of zone benefits and technical assistance to small
business.</quote>.</toc-entry>
</toc>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDD64FB11D85B4B7988EBC07CCC6AA91A"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect on the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H80C1D124C1D246748ED47B0D02108B35" section-type="subsequent-section"><enum>507.</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this Act, the amendments made by this title shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</section>