[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5718 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 5718

To amend the Internal Revenue Code of 1986 to revise the new market tax 
    credit rules for population census tracts with low populations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2012

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

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to revise the new market tax 
    credit rules for population census tracts with low populations.

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

SECTION 1. REVISION OF NEW MARKETS TAX CREDIT RULES FOR TRACTS WITH LOW 
              POPULATIONS.

    (a) In General.--Paragraph (4) of section 45D(e) of the Internal 
Revenue Code of 1986 (relating to tracts with low population) is 
amended to read as follows:
            ``(4) Tracts with low population.--A population census 
        tract with a population of less than 2,000 shall be treated as 
        a low-income community for purposes of this section if--
                    ``(A) such tract is contiguous to 1 or more low-
                income communities (determined without regard to this 
                paragraph), and
                    ``(B) either--
                            ``(i) such tract is within an empowerment 
                        zone the designation of which is in effect 
                        under section 1391, or
                            ``(ii) any 1 or more of such contiguous 
                        low-income communities meets at least 1 of the 
                        following criteria:
                                    ``(I) The poverty rate is greater 
                                than 30 percent.
                                    ``(II) The median family income--
                                            ``(aa) in the case of a 
                                        community not located within a 
                                        metropolitan area, does not 
                                        exceed 60 percent of statewide 
                                        median family income, or
                                            ``(bb) in the case of a 
                                        community located within a 
                                        metropolitan area, does not 
                                        exceed 60 percent of the 
                                        greater of statewide median 
                                        family income or the 
                                        metropolitan area median family 
                                        income.
                                    ``(III) The unemployment rate is 
                                not less than 1.5 times the national 
                                average unemployment rate.
        For purposes of this paragraph, any population census tract 
        which is a zero population census tract shall be treated as 
        having the levels of economic distress which are present in the 
        contiguous census tract.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.
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