[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3243 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 3243

 To amend the Internal Revenue Code of 1986 to help rebuild and renew 
               rural communities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2016

  Mr. Gardner introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to help rebuild and renew 
               rural communities, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Rebuilding and 
Renewing Rural America Act of 2016''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--REVITALIZING RURAL COMMUNITIES

                 Subtitle A--Philanthropic Facilitation

Sec. 101. Facilitation of program-related investments.
Sec. 102. Declaratory judgment remedy.
Sec. 103. Information returns.
Sec. 104. Publicity of information.
Sec. 105. Conforming amendments.
Sec. 106. Regulations.
Sec. 107. Effective date.
                Subtitle B--Rebuilding Rural Main Street

Sec. 111. Tax credits for reduction of lead, radon, and asbestos 
                            hazards in rural commercial structures.
                   Subtitle C--Renewing Rural America

Sec. 121. Additional new markets tax credit for rural renewal 
                            communities.
                    Subtitle D--Job Creator Credits

Sec. 131. Expensing for rural renewal community businesses.
Sec. 132. Reduced payroll taxes for individuals and businesses in rural 
                            renewal communities.
            Subtitle E--Encouraging Small Business Start Ups

Sec. 141. Renewal community business start-up savings accounts.
        TITLE II--SETTING RURAL AMERICA FREE FROM OVERREGULATION

Sec. 201. Short title.
Sec. 202. Reducing excessive Government in rural America.

                TITLE I--REVITALIZING RURAL COMMUNITIES

                 Subtitle A--Philanthropic Facilitation

SEC. 101. FACILITATION OF PROGRAM-RELATED INVESTMENTS.

    Subsection (c) of section 4944 of the Internal Revenue Code of 1986 
is amended to read as follows:
    ``(c) Program-Related Investments.--
            ``(1) Treatment of program-related investments.--For 
        purposes of this subchapter, program-related investments--
                    ``(A) are not investments which jeopardize the 
                carrying out of one or more purposes described in 
                section 170(c)(2)(B),
                    ``(B) are not business holdings under section 4943, 
                and
                    ``(C) may be qualifying distributions under section 
                4942.
            ``(2) Program-related investments defined.--
                    ``(A) In general.--For purposes of this subchapter 
                and chapter 61, an investment made by a private 
                foundation constitutes a program-related investment 
                if--
                            ``(i) the primary purpose of the investment 
                        is to accomplish one or more of the purposes 
                        described in section 170(c)(2)(B),
                            ``(ii) no significant purpose of the 
                        investment is the production of income or the 
                        appreciation of property, and
                            ``(iii) no purpose of the investment is to 
                        accomplish one or more of the purposes 
                        described in section 170(c)(2)(D).
                    ``(B) Special rules.--For purposes of subparagraph 
                (A)--
                            ``(i) determinations of whether an 
                        investment qualifies as a program-related 
                        investment shall be based on consideration of 
                        all relevant facts and circumstances, and
                            ``(ii) the fact that the entity produces 
                        significant income or capital appreciation 
                        shall not, in the absence of other factors, be 
                        conclusive evidence of a significant purpose 
                        involving the production of income or the 
                        appreciation of property.
            ``(3) Safe harbor determinations.--The Secretary shall 
        establish a procedure which shall be substantially similar to 
        the processes for recognition of exemption under section 501(a) 
        or 4945(g) and under which an entity seeking to receive 
        program-related investments may petition the Secretary for a 
        determination that, based on consideration of all relevant 
        facts and circumstances, investments by private foundations in 
        such entity will be program-related investments meeting the 
        requirements of paragraph (2). Under this procedure, the 
        Secretary shall rule on all requests within 120 days of 
        submission.
            ``(4) Effect of determination.--Once a determination has 
        been made that investments in an entity qualify as program-
        related investments, organizations making such investments 
        shall be entitled to rely on the determination, unless and 
        until the Secretary publishes notice of revocation of the 
        determination.
            ``(5) Voluntary nature of process.--Entities seeking 
        program-related investments are not required to seek a 
        determination under paragraph (3), and the absence of such a 
        determination shall not affect the ability of a private 
        foundation to make a program-related investment based on its 
        own determination that the investment qualifies as a program-
        related investment.
            ``(6) Organizations treated as private foundations.--For 
        purposes of this subsection and section 6104A, all references 
        to private foundations include organizations that are treated 
        as private foundations under any of the provisions of sections 
        4940 through 4948, inclusive, whether created under State law 
        or the law of any federally recognized tribe.''.

SEC. 102. DECLARATORY JUDGMENT REMEDY.

    Paragraph (1) of section 7428(a) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (C) and 
by adding after subparagraph (D) the following new subparagraph:
                    ``(E) with respect to whether investments in an 
                entity are program-related investments (as described in 
                section 4944(c)(2)), or''.

SEC. 103. INFORMATION RETURNS.

    Part III of subchapter A of chapter 61 of the Internal Revenue Code 
of 1986 is amended by inserting after section 6033 the following new 
section:

``SEC. 6033A. INFORMATION REPORTING BY FOR-PROFIT ORGANIZATIONS 
              RECEIVING PROGRAM-RELATED INVESTMENTS.

    ``(a) Organizations Required To File.--If investments in an entity 
have been determined to be program-related investments through a 
determination of the Internal Revenue Service pursuant to section 
4944(c)(3) or by a determination of a court pursuant to section 
7428(a), the entity shall, in addition to any other applicable filing 
obligations, file an annual return providing the information specified 
in subsection (b) for any taxable year in which it receives or retains 
one or more program-related investments (as defined in section 
4944(c)(2)).
    ``(b) Required Reporting.--The return described in subsection (a) 
shall provide, in such manner and at such time as the Secretary may by 
forms or regulations prescribe, the following information--
            ``(1) the organization's gross income for the year,
            ``(2) its expenses attributable to such income incurred 
        within the year,
            ``(3) its disbursements within the year for one or more 
        purposes described in section 170(c)(2)(B), together with a 
        narrative statement describing the results obtained from the 
        use of those assets for such one or more purposes described in 
        section 170(c)(2)(B),
            ``(4) a balance sheet showing its assets, liabilities, and 
        net worth as of the beginning and end of such year,
            ``(5) the names and addresses of all private foundations 
        holding program-related investments in the organization,
            ``(6) a statement of the portion of its liabilities and net 
        worth that represent capitalization obtained by means of 
        program-related investments as of the beginning and end of such 
        year,
            ``(7) a statement of any interest, dividends, or other 
        distributions paid with respect to any program-related 
        investments during the year, and
            ``(8) such other information as may be necessary for the 
        return described in subsection (a) to satisfy the annual 
        financial reporting required by the expenditure responsibility 
        rules pursuant to the regulations under section 4945 or as the 
        Secretary may by forms or regulations prescribe.''.

SEC. 104. PUBLICITY OF INFORMATION.

    Subchapter B of chapter 61 of the Internal Revenue Code of 1986 is 
amended by inserting after section 6104 the following new section:

``SEC. 6104A. PUBLICITY OF INFORMATION REGARDING ORGANIZATIONS 
              RECEIVING PROGRAM-RELATED INVESTMENTS.

    ``(a) Inspection of Petitions for Determination of Program-Related 
Investment Status.--If an entity seeks a determination pursuant to 
section 4944(c)(3) that investments by private foundations in such 
organization will be program-related investments, the petition seeking 
such a determination, together with any documents submitted in support 
of such petition and any determination or other document issued by the 
Internal Revenue Service with respect to such petition, shall be open 
to public inspection at the national office of the Internal Revenue 
Service.
    ``(b) Inspection of Annual Information Returns.--The information 
required to be furnished by section 6033A, together with the names and 
addresses of such entity, shall be made available to the public at such 
times and in such places as the Secretary may prescribe.
    ``(c) Public Inspection of Petitions and Annual Information 
Returns.--Any entity that receives a determination from the Internal 
Revenue Service that private foundation investments shall be program-
related investments pursuant to section 4944(c)(3) shall make copies 
available at the organization's principal office, during regular 
business hours, of the petition for such determination (together with 
supporting materials provided with the petition and documents issued by 
the Internal Revenue Service with respect to such petition), as well as 
the annual returns required by section 6033A filed by such 
organization. Upon request of an individual made at such principal 
office, copies of such petition materials and annual reports shall be 
provided to such individual without charge other than a reasonable fee 
for any reproduction and mailing costs. The inspection and duplication 
rights granted in this subsection shall apply to an annual return only 
during the three-year period beginning on the last day prescribed for 
filing such return (determined with regard to any extension of time for 
filing).
    ``(d) Limitation on Providing Copies.--Paragraph (c) shall not 
apply to any request if, in accordance with regulations promulgated by 
the Secretary, the entity has made the requested documents widely 
available, or the Secretary determines, upon application by an entity, 
that such request is part of a harassment campaign and that compliance 
with such request is not in the public interest.''.

SEC. 105. CONFORMING AMENDMENTS.

    (a) Conforming Change to Section 501(n).--Paragraph (4)(A) of 
section 501(n) of the Internal Revenue Code of 1986 is amended by 
inserting ``paragraph (2) of'' before ``section 4944(c).''
    (b) Conforming Change to Section 514(b).--Paragraph (1) of section 
514(b) of the Internal Revenue Code of 1986 is amended by redesignating 
subparagraphs (D) and (E) as subparagraphs (E) and (F) and by inserting 
after subparagraph (C) the following new subparagraph:
                    ``(D) any property owned or treated as owned by a 
                private foundation by virtue of its having made an 
                investment in an entity that has received a 
                determination from the Internal Revenue Service 
                pursuant to section 4944(c)(3), or by a court pursuant 
                to section 7428(a), that such investments in such 
                entity qualify as program-related investments;''.
    (c) Conforming Change to Section 4943(d).--Paragraph (3) of section 
4943(d) of the Internal Revenue Code of 1986 is amended by striking 
``or'' at the end of subparagraph (A), by redesignating subparagraph 
(B) as subparagraph (C) and by inserting after subparagraph (A) the 
following new subparagraph:
                    ``(B) any program-related investment, as defined in 
                section 4944(c)(2), or''.

SEC. 106. REGULATIONS.

    The Secretary of the Treasury shall, not later than 1 year after 
the date of the enactment of this Act, amend any applicable regulations 
as may be necessary or appropriate to implement any amendments 
contained in this subtitle or to carry out the purposes of this 
subtitle, including providing additional examples of qualifying 
program-related investments.

SEC. 107. EFFECTIVE DATE.

    The amendments made by this subtitle shall apply to investments 
made after the date of the enactment of this Act in taxable years 
ending after such date.

                Subtitle B--Rebuilding Rural Main Street

SEC. 111. TAX CREDITS FOR REDUCTION OF LEAD, RADON, AND ASBESTOS 
              HAZARDS IN RURAL COMMERCIAL STRUCTURES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new sections:

``SEC. 45S. LEAD HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 10 percent of the lead hazard reduction activity cost paid or 
incurred by the taxpayer during the taxable year for each eligible 
commercial structure.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible commercial structure for any taxable 
year shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Certified lead abatement supervisor.--The term 
        `certified lead abatement supervisor' means an individual 
        certified by the Environmental Protection Agency pursuant to 
        section 745.226 of title 40, Code of Federal Regulations, or an 
        appropriate State agency pursuant to section 745.325 of title 
        40, Code of Federal Regulations.
            ``(2) Certified inspector.--The term `certified inspector' 
        means an inspector certified by the Environmental Protection 
        Agency pursuant to section 745.226 of title 40, Code of Federal 
        Regulations, or an appropriate State agency pursuant to section 
        745.325 of title 40, Code of Federal Regulations.
            ``(3) Certified risk assessor.--The term `certified risk 
        assessor' means a risk assessor certified by the Environmental 
        Protection Agency pursuant to section 745.226 of title 40, Code 
        of Federal Regulations, or an appropriate State agency pursuant 
        to section 745.325 of title 40, Code of Federal Regulations.
            ``(4) Eligible commercial structure.--The term `eligible 
        commercial structure' means, with respect to any taxable year, 
        any building which is--
                    ``(A) within the scope of Standard 90.1-2007 (as 
                defined in section 179(c)(2)),
                    ``(B) placed in service before 2002, and
                    ``(C) located in a rural renewal community (as 
                defined in section 45D(f)(4)(C)).
            ``(5) Lead hazard reduction activity cost.--
                    ``(A) In general.--The term `lead hazard reduction 
                activity cost' means, with respect to any eligible 
                commercial structure--
                            ``(i) the cost for a certified risk 
                        assessor to conduct an assessment to determine 
                        the presence of lead pipes or a lead-based 
                        paint hazard,
                            ``(ii) the cost for performing lead 
                        abatement measures by a certified lead 
                        abatement supervisor, including the removal of 
                        lead pipes, the removal of paint and dust, the 
                        permanent enclosure or encapsulation of lead-
                        based paint, the replacement of painted 
                        surfaces, windows, or fixtures, or the removal 
                        or permanent covering of soil when lead-based 
                        paint hazards are present in such paint, dust, 
                        or soil, and
                            ``(iii) the cost for a certified lead 
                        abatement supervisor, those working under the 
                        supervision of such supervisor, or a qualified 
                        contractor to perform all preparation, cleanup, 
                        disposal, and clearance testing activities 
                        associated with the lead abatement measures.
                    ``(B) Limitations.--
                            ``(i) Other funding.--The term `lead hazard 
                        reduction activity cost' does not include any 
                        cost to the extent such cost is funded by any 
                        grant, contract, or otherwise by another person 
                        or any governmental agency.
                            ``(ii) Initial costs must be incurred 
                        before 2020.--In the case of an eligible 
                        commercial structure for which no significant 
                        lead hazard reduction activity cost has been 
                        incurred before January 1, 2020, the term `lead 
                        hazard reduction activity cost' shall not 
                        include any cost paid or incurred on or after 
                        such date.
            ``(6) Lead-based paint hazard.--The term `lead-based paint 
        hazard' has the meaning given such term by section 745.63 of 
        title 40, Code of Federal Regulations.
            ``(7) Qualified contractor.--The term `qualified 
        contractor' means a Lead-Safe Certified Firm or certified 
        renovator under the Lead Renovation, Repair and Painting 
        Program of the Environmental Protection Agency.
    ``(d) Special Rules.--
            ``(1) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible commercial structure for any taxable year unless--
                    ``(A) after lead hazard reduction activity is 
                complete, a certified inspector or certified risk 
                assessor provides written documentation to the taxpayer 
                that includes--
                            ``(i) evidence that the eligible commercial 
                        structure meets lead hazard evaluation criteria 
                        established by the Environmental Protection 
                        Agency or under an authorized State or local 
                        program, and
                            ``(ii) documentation showing that the lead 
                        hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the lead hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible commercial structure, and
                            ``(iii) a statement certifying that the 
                        commercial structure qualifies as an eligible 
                        commercial structure for such taxable year.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(3) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        lead-based paint abatement shall be reduced by the amount of 
        such credit attributable to such costs.

``SEC. 45T. RADON HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 10 percent of the radon hazard reduction activity cost paid or 
incurred by the taxpayer during the taxable year for each eligible 
commercial structure.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible commercial structure for any taxable 
year shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Eligible commercial structure.--The term `eligible 
        commercial structure' means, with respect to any taxable year, 
        any building which is--
                    ``(A) within the scope of Standard 90.1-2007 (as 
                defined in section 179(c)(2)),
                    ``(B) placed in service before 2002, and
                    ``(C) located in a rural renewal community (as 
                defined in section 45D(f)(4)(C)).
            ``(2) Qualified radon measurement professional.--The term 
        `qualified radon measurement professional' means an individual 
        who has demonstrated the minimum degree of appropriate 
        technical knowledge and skills specific to radon measurement in 
        conformance with the requirements of--
                    ``(A) a certification standard promulgated by the 
                American National Standards Institute or International 
                Organization for Standardization,
                    ``(B) a State, local or other governmental 
                licensing (or equivalent) program, or
                    ``(C) any other recognized or accredited 
                certification process as determined by the Secretary.
            ``(3) Qualified radon mitigation professional.--The term 
        `qualified radon mitigation professional' means an individual 
        who has demonstrated the minimum degree of appropriate 
        technical knowledge and skills specific to radon mitigation in 
        conformance with the requirements of--
                    ``(A) a certification standard promulgated by the 
                American National Standards Institute or International 
                Organization for Standardization,
                    ``(B) a State, local or other governmental 
                licensing (or equivalent) program, or
                    ``(C) any other recognized or accredited 
                certification process as determined by the Secretary.
            ``(4) Radon.--The term `radon' has the meaning given the 
        term in section 302 of the Toxic Substances Control Act (15 
        U.S.C. 2662).
            ``(5) Radon hazard reduction activity cost.--
                    ``(A) In general.--The term `radon hazard reduction 
                activity cost' means, with respect to any eligible 
                commercial structure--
                            ``(i) the cost for a qualified radon 
                        measurement professional to conduct an 
                        assessment to determine the indoor radon level 
                        of the commercial structure, and
                            ``(ii) if the indoor radon level of the 
                        commercial structure is not less than 2 
                        picocuries per liter of air, as determined by a 
                        qualified radon measurement professional, the 
                        cost for performing radon abatement measures by 
                        a qualified radon mitigation professional.
                    ``(B) Limitations.--
                            ``(i) Other funding.--The term `radon 
                        hazard reduction activity cost' does not 
                        include any cost to the extent such cost is 
                        funded by any grant, contract, or otherwise by 
                        another person or any governmental agency.
                            ``(ii) Initial costs must be incurred 
                        before 2020.--In the case of an eligible 
                        commercial structure for which no significant 
                        radon hazard reduction activity cost has been 
                        incurred before January 1, 2020, the term 
                        `radon hazard reduction activity cost' shall 
                        not include any cost paid or incurred on or 
                        after such date.
    ``(d) Special Rules.--
            ``(1) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible commercial structure for any taxable year unless--
                    ``(A) after radon hazard reduction activity is 
                complete, a qualified radon measurement professional 
                provides written documentation to the taxpayer that 
                includes--
                            ``(i) evidence that the eligible commercial 
                        structure meets radon hazard evaluation 
                        criteria established under an authorized State 
                        or local program, and
                            ``(ii) documentation showing that the radon 
                        hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the radon hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible commercial structure, and
                            ``(iii) a statement certifying that the 
                        commercial structure qualifies as an eligible 
                        commercial structure for such taxable year.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(3) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        radon abatement shall be reduced by the amount of such credit 
        attributable to such costs.

``SEC. 45U. ASBESTOS HAZARD REDUCTION ACTIVITY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 10 percent of the asbestos hazard reduction activity cost paid 
or incurred by the taxpayer during the taxable year for each eligible 
commercial structure.
    ``(b) Limitation.--The amount of the credit allowed under 
subsection (a) for any eligible commercial structure for any taxable 
year shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Accredited asbestos abatement contractor or 
        supervisor.--The term `accredited asbestos abatement contractor 
        or supervisor' means any person accredited as a contractor or 
        supervisor under the Asbestos Model Accreditation Plan of the 
        Environmental Protection Agency.
            ``(2) Accredited asbestos inspector.--The term `accredited 
        asbestos inspector' means any person accredited as an inspector 
        under the Asbestos Model Accreditation Plan of the 
        Environmental Protection Agency.
            ``(3) Asbestos.--The term `asbestos' has the meaning given 
        the term in section 202 of the Toxic Substances Control Act (15 
        U.S.C. 2642).
            ``(4) Asbestos hazard.--The term `asbestos hazard' has the 
        meaning given the term `imminent hazard to the health and 
        safety' in section 11 of the Asbestos School Hazard Detection 
        and Control Act of 1980 (20 U.S.C. 3610).
            ``(5) Asbestos hazard reduction activity cost.--
                    ``(A) In general.--The term `asbestos hazard 
                reduction activity cost' means, with respect to any 
                eligible commercial structure--
                            ``(i) the cost for an accredited asbestos 
                        inspector to conduct an assessment to determine 
                        the presence of a asbestos hazard,
                            ``(ii) the cost for performing asbestos 
                        abatement measures by an accredited asbestos 
                        abatement contractor or supervisor,
                            ``(iii) the cost for performing interim 
                        asbestos control measures to reduce exposure or 
                        likely exposure to asbestos hazards, but only 
                        if such measures are evaluated and completed by 
                        an accredited asbestos abatement contractor or 
                        supervisor using accepted methods, are 
                        conducted by an accredited asbestos abatement 
                        contractor or supervisor, and have an expected 
                        useful life of more than 10 years, and
                            ``(iv) the cost for an accredited asbestos 
                        abatement supervisor, those working under the 
                        supervision of such supervisor, or an 
                        accredited asbestos abatement contractor or 
                        supervisor to perform all preparation, cleanup, 
                        disposal, and clearance testing activities 
                        associated with the asbestos abatement measures 
                        or interim asbestos control measures.
                    ``(B) Limitations.--
                            ``(i) Other funding.--The term `asbestos 
                        hazard reduction activity cost' does not 
                        include any cost to the extent such cost is 
                        funded by any grant, contract, or otherwise by 
                        another person or any governmental agency.
                            ``(ii) Initial costs must be incurred 
                        before 2020.--In the case of an eligible 
                        commercial structure for which no significant 
                        asbestos hazard reduction activity cost has 
                        been incurred before January 1, 2020, the term 
                        `asbestos hazard reduction activity cost' shall 
                        not include any cost paid or incurred on or 
                        after such date.
            ``(6) Eligible commercial structure.--The term `eligible 
        commercial structure' means, with respect to any taxable year, 
        any building which is--
                    ``(A) within the scope of Standard 90.1-2007 (as 
                defined in section 179(c)(2)),
                    ``(B) placed in service before 2002, and
                    ``(C) located in a rural renewal community (as 
                defined in section 45D(f)(4)(C)).
    ``(d) Special Rules.--
            ``(1) Documentation required for credit allowance.--No 
        credit shall be allowed under subsection (a) with respect to 
        any eligible commercial structure for any taxable year unless--
                    ``(A) after asbestos hazard reduction activity is 
                complete, an accredited asbestos inspector provides 
                written documentation to the taxpayer that includes--
                            ``(i) evidence that the eligible commercial 
                        structure meets asbestos hazard evaluation 
                        criteria established under an authorized State 
                        or local program, and
                            ``(ii) documentation showing that the 
                        asbestos hazard reduction activity meets the 
                        requirements of this section, and
                    ``(B) the taxpayer files with the appropriate State 
                agency and attaches to the tax return for the taxable 
                year--
                            ``(i) the documentation described in 
                        subparagraph (A),
                            ``(ii) documentation of the asbestos hazard 
                        reduction activity costs paid or incurred 
                        during the taxable year with respect to the 
                        eligible commercial structure, and
                            ``(iii) a statement certifying that the 
                        commercial structure qualifies as an eligible 
                        commercial structure for such taxable year.
            ``(2) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(3) No double benefit.--Any deduction allowable for costs 
        taken into account in computing the amount of the credit for 
        asbestos abatement shall be reduced by the amount of such 
        credit attributable to such costs.''.
    (b) Technical Amendments.--
            (1) Section 38(b) is amended--
                    (A) in paragraph (35), by striking ``plus'' at the 
                end,
                    (B) in paragraph (36), by striking the period at 
                the end and inserting a comma, and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(37) the lead hazard reduction activity credit determined 
        under section 45S(a),
            ``(38) the radon hazard reduction activity credit 
        determined under section 45T(a), plus
            ``(39) the asbestos hazard reduction activity credit 
        determined under section 45U(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new items:

``Sec. 45S. Lead hazard reduction activity.
``Sec. 45T. Radon hazard reduction activity.
``Sec. 45U. Asbestos hazard reduction activity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to costs incurred after December 31, 2016, in taxable years 
ending after that date.

                   Subtitle C--Renewing Rural America

SEC. 121. ADDITIONAL NEW MARKETS TAX CREDIT FOR RURAL RENEWAL 
              COMMUNITIES.

    (a) Allocations Designated for Rural Renewal.--Section 45D(f) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Additional limitation for rural renewal 
        communities.--
                    ``(A) In general.--The new markets tax credit 
                limitation otherwise determined under paragraph (1) 
                shall be increased by $3,500,000,000 for 2017, 2018, 
                and 2019. A qualified community development entity 
                shall be eligible for an allocation under paragraph (2) 
                of the increase described in the preceding sentence 
                only if a significant mission of such entity is 
                serving, or providing investment capital for, rural 
                renewal communities.
                    ``(B) Application of carryover.--Paragraph (3) 
                shall be applied separately with respect to the 
                increase provided under this paragraph.
                    ``(C) Rural renewal community.--For purposes of 
                this paragraph, the term `rural renewal community' 
                means any low-income community--
                            ``(i) which--
                                    ``(I) has a population of at least 
                                200 people but not more than 25,000 
                                people, and
                                    ``(II) is not located in a 
                                metropolitan area which has a 
                                population of 200,000 or more, or
                            ``(ii) which is entirely within an Indian 
                        reservation (as determined by the Secretary of 
                        the Interior).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to calendar years beginning after December 31, 2016.

                    Subtitle D--Job Creator Credits

SEC. 131. EXPENSING FOR RURAL RENEWAL COMMUNITY BUSINESSES.

    (a) In General.--Part IV of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179E the following new section:

``SEC. 179F. EXPENSING FOR RURAL RENEWAL COMMUNITY BUSINESSES.

    ``(a) In General.--A rural renewal community business may elect to 
treat the cost of any qualified property as property which is not 
chargeable to capital account. Any cost so treated shall be allowed as 
a deduction for the taxable year in which the qualified property is 
placed in service.
    ``(b) Qualified Property.--For purposes of this section, the term 
`qualified property' means property--
            ``(1) which is--
                    ``(A) tangible property (to which section 168 
                applies), or
                    ``(B) computer software (as defined in section 
                197(e)(3)(B)) which is described in section 
                197(e)(3)(A)(i) and to which section 167 applies,
            ``(2) which is section 1245 property (as defined in section 
        1245(a)(3)), and
            ``(3) which is acquired by purchase (as defined in section 
        179(d)(2)) for use in the active conduct of a trade or 
        business.
Such term shall not include any property described in section 50(b).
    ``(c) Rural Renewal Community Business.--For purposes of this 
section--
            ``(1) In general.--The term `rural renewal community 
        business' means--
                    ``(A) any rural renewal community business entity, 
                and
                    ``(B) any rural renewal community proprietorship.
            ``(2) Rural renewal community business entity.--The term 
        `rural renewal community business entity' means, with respect 
        to any taxable year, any corporation or partnership if for such 
        year--
                    ``(A) every trade or business of such entity is the 
                active conduct of a qualified business within a rural 
                renewal community,
                    ``(B) at least 50 percent of the total gross income 
                of such entity is derived from the active conduct of 
                such business,
                    ``(C) a substantial portion of the use of the 
                tangible property of such entity (whether owned or 
                leased) is within an rural renewal community,
                    ``(D) a substantial portion of the intangible 
                property of such entity is used in the active conduct 
                of any such business,
                    ``(E) a substantial portion of the services 
                performed for such entity by its employees are 
                performed in a rural renewal community,
                    ``(F) at least 35 percent of its employees are 
                residents of a rural renewal community,
                    ``(G) 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
                    ``(H) less than 5 percent of the average of the 
                aggregate unadjusted bases of the property of such 
                entity is attributable to nonqualified financial 
                property (as defined in section 1397C(e)).
            ``(3) Rural renewal community proprietorship.--The term 
        `rural renewal community proprietorship' means, with respect to 
        any taxable year, any qualified business carried on by an 
        individual as a proprietorship if for such year--
                    ``(A) at least 50 percent of the total gross income 
                of such individual from such business is derived from 
                the active conduct of such business in a rural renewal 
                community,
                    ``(B) a substantial portion of the use of the 
                tangible property of such individual in such business 
                (whether owned or leased) is within a rural renewal 
                community,
                    ``(C) a substantial portion of the intangible 
                property of such business is used in the active conduct 
                of such business,
                    ``(D) a substantial portion of the services 
                performed for such individual in such business by 
                employees of such business are performed in a rural 
                renewal community,
                    ``(E) at least 35 percent of such employees are 
                residents of a rural renewal community,
                    ``(F) 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
                    ``(G) 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.
                For purposes of this paragraph, the term `employee' 
                includes the proprietor.
            ``(4) Rural renewal community.--The term `rural renewal 
        community' has the meaning given such term under section 
        45D(f)(4)(C).
            ``(5) Treatment of businesses straddling census tract 
        lines.--For purposes of paragraphs (2) and (3), rules similar 
        to the rules of section 1397C(f) shall apply.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Cost.--Rules similar to the rules of section 
        179(d)(3) shall apply.
            ``(2) Recapture.--Rules similar to the rules of section 
        179(d)(10) shall apply.
    ``(e) Termination.--This section shall not apply to property placed 
in service after December 31, 2019.''.
    (b) Conforming Amendments.--
            (1) Section 263(a)(1) of the Internal Revenue Code of 1986 
        is amended by striking ``or'' at the end of subparagraph (K), 
        by striking the period at the end of subparagraph (L) and 
        inserting ``, or'', and by adding at the end the following new 
        subparagraph:
                                    ``(M) expenditures for which a 
                                deduction is allowed under section 
                                179F.''.
            (2) Subparagraph (B) of section 312(k)(3) is amended by 
        striking ``or 179E'' each places it appears and inserting 
        ``179E, or 179F''.
            (3) Paragraphs (2)(C) and (3)(C) of section 1245(a) of such 
        Code are each amended by inserting ``179F,'' after ``179E,''.
            (4) The table of contents for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179E the following new item:

``Sec. 179F. Expensing for rural renewal community businesses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2016.

SEC. 132. REDUCED PAYROLL TAXES FOR INDIVIDUALS AND BUSINESSES IN RURAL 
              RENEWAL COMMUNITIES.

    (a) In General.--
            (1) Employees.--In the case of employment during 2017, 
        2018, and 2019, the rate of tax under 3101(a) of the Internal 
        Revenue Code of 1986 (including for purposes of determining the 
        applicable percentage under sections 3201(a) and 3211(a)(1) of 
        such Code) shall be 4.2 percent for any remuneration received 
        during any period in which the individual's principal residence 
        (within the meaning of section 121 of such Code) is located in 
        a rural renewal community.
            (2) Employers.--
                    (A) In general.--In the case of employment during 
                2017, 2018, and 2019, the rate of tax under section 
                3111(a) of the Internal Revenue Code of 1986 (including 
                for purposes of determining the applicable percentage 
                under sections 3221(a) of such Code) for any rural 
                renewal community business entity shall be 4.2 percent 
                with respect to remuneration paid for qualified 
                services.
                    (B) Qualified services.--For purposes of this 
                section, the term ``qualified services'' means services 
                performed--
                            (i) in a trade or business of a rural 
                        renewal community business entity, or
                            (ii) in the case of a rural renewal 
                        community business entity exempt from tax under 
                        section 501(a) of the Internal Revenue Code of 
                        1986, in furtherance of the activities related 
                        to the purpose or function constituting the 
                        basis of the employer's exemption under section 
                        501 of such Code.
            (3) Self-employed individuals.--In the case of self-
        employment income for taxable years beginning in 2017, 2018, or 
        2019 which is attributable to a rural renewal community 
        proprietorship, the rate of tax under section 1401(a) shall be 
        8.40 percent.
    (b) Definitions.--For purposes of this section--
            (1) Rural renewal community.--The term ``rural renewal 
        community'' has the meaning given such term under section 
        45D(f)(4)(C) of the Internal Revenue Code of 1986.
            (2) Rural renewal community business entity.--The term 
        ``rural renewal community business entity'' has the meaning 
        given such term under section 179F(c)(2) of the Internal 
        Revenue Code of 1986.
            (3) Rural renewal community proprietorship.--The term 
        ``rural renewal community proprietorship'' has the meaning 
        given such term under section 179F(c)(3) of the Internal 
        Revenue Code of 1986.
    (c) Transfers of Funds.--
            (1) Transfers to federal old-age and survivors insurance 
        trust fund.--There are hereby appropriated to the Federal Old-
        Age and Survivors Trust Fund and the Federal Disability 
        Insurance Trust Fund established under section 201 of the 
        Social Security Act (42 U.S.C. 401) amounts equal to the 
        reduction in revenues to the Treasury by reason of the 
        application of subsection (a). Amounts appropriated by the 
        preceding sentence shall be transferred from the general fund 
        at such times and in such manner as to replicate to the extent 
        possible the transfers which would have occurred to such Trust 
        Fund had such amendments not been enacted.
            (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social Security 
        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the application of paragraphs (1) and (2) of 
        subsection (a). Amounts appropriated by the preceding sentence 
        shall be transferred from the general fund at such times and in 
        such manner as to replicate to the extent possible the 
        transfers which would have occurred to such Account had such 
        amendments not been enacted.
            (3) Coordination with other federal laws.--For purposes of 
        applying any provision of Federal law other than the provisions 
        of the Internal Revenue Code of 1986, the rate of tax in effect 
        under section 3101(a) shall be determined without regard to the 
        reduction in such rate under this section.

            Subtitle E--Encouraging Small Business Start Ups

SEC. 141. RENEWAL COMMUNITY BUSINESS START-UP SAVINGS ACCOUNTS.

    (a) In General.--Part VIII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and inserting after section 223 the following new 
section:

``SEC. 224. RENEWAL COMMUNITY BUSINESS START-UP SAVINGS ACCOUNTS.

    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction for the taxable year an amount equal to 
amount of contributions made to the rural renewal community business 
start-up savings account of such individual.
    ``(b) Rural Renewal Community Business Start-Up Savings Account.--
The term `rural renewal community business start-up savings account' 
means a trust created or organized in the United States exclusively for 
the purpose of paying the eligible costs of the individual who is the 
designated beneficiary of the trust (and designated as a renewal 
community business start-up savings account at the time created or 
organized), but only if the written governing instrument creating the 
trust meets the following requirements:
            ``(1) Except in the case of a rollover contribution 
        described in subsection (d)(4), no contribution will be 
        accepted unless it is in cash, and contributions will not be 
        accepted if such contribution would result in aggregate 
        contributions to all rural renewal community business start-up 
        savings account of the individual for such taxable year and all 
        prior taxable years exceeding $50,000.
            ``(2) The trustee is a bank (as defined in section 408(n)) 
        or such other person who demonstrates to the satisfaction of 
        the Secretary that the manner in which such other person will 
        administer the trust will be consistent with the requirements 
        of this section.
            ``(3) No part of the trust funds will be invested in life 
        insurance contracts.
            ``(4) The assets of the trust will not be commingled with 
        other property except in a common trust fund or common 
        investment fund.
    ``(c) Tax Treatment of Accounts.--
            ``(1) In general.--A rural renewal community business 
        start-up savings account shall be exempt from taxation under 
        this subtitle. Notwithstanding the preceding sentence, the 
        renewal community business start-up savings account shall be 
        subject to the taxes imposed by section 511 (relating to 
        imposition of tax on unrelated business income of charitable 
        organizations).
            ``(2) Account terminations.--Rules similar to the rules of 
        paragraphs (2) and (4) of section 408(e) shall apply to rural 
        renewal community business start-up savings accounts, and any 
        amount treated as distributed under such rules shall be treated 
        as not used to pay for eligible costs.
    ``(d) Tax Treatment of Distributions.--
            ``(1) Qualified distributions.--
                    ``(A) In general.--Any qualified distribution from 
                a rural renewal community business start-up savings 
                account shall not be included in gross income.
                    ``(B) Qualified distribution.--For purposes of this 
                section, the term `qualified distribution' means the 
                amount of any payment or distribution made from a rural 
                renewal community business start-up savings account 
                during the taxable year to the extent that such 
                distribution does not exceed the lesser of--
                            ``(i) the eligible costs paid or incurred 
                        by the taxpayer during the taxable year which 
                        are made not later than the last day of the 5th 
                        taxable year beginning after the initial 
                        distribution from the account, or
                            ``(ii) $50,000.
                For purposes of clause (i), a taxpayer shall be treated 
                as having paid or incurred the taxpayer's allocable 
                share of eligible costs of any entity in which the 
                taxpayer directly holds stock or a capital or profits 
                interest.
                    ``(C) Eligible costs.--
                            ``(i) In general.--For purposes of this 
                        section, the term `eligible costs' means costs 
                        paid or incurred by the taxpayer with respect 
                        to the designated rural renewal community 
                        business of the taxpayer for operating capital, 
                        the purchase of equipment or facilities, 
                        marketing, training, incorporation, and 
                        accounting fees.
                            ``(ii) Designated rural renewal community 
                        business.--For purposes of clause (i), the term 
                        `designated rural renewal community business' 
                        means--
                                    ``(I) any rural renewal community 
                                business entity (as defined in section 
                                179F(c)) in which the taxpayer is a 
                                shareholder or partner and which is 
                                designated by the taxpayer for purposes 
                                of this section, or
                                    ``(II) any rural renewal community 
                                proprietorship of which the taxpayer is 
                                the owner and which is designated by 
                                the taxpayer for purposes of this 
                                section.
                        Any designation made under this clause, once 
                        made, may not be revoked.
                    ``(D) Disallowance of excluded amounts as 
                deduction, credit, or exclusion.--No deduction, credit, 
                or exclusion shall be allowed to the taxpayer under any 
                other section of this chapter for any qualified 
                distribution to the extent taken into account in 
                determining the amount of the exclusion under this 
                paragraph.
            ``(2) Nonqualified distributions.--
                    ``(A) In general.--Any amount paid or distributed 
                out of a rural renewal community business start-up 
                savings account which is not a qualified distribution, 
                including any amount paid out pursuant to a termination 
                of such an account, shall be included in the gross 
                income of the taxpayer as provided in section 72.
                    ``(B) Treatment of amounts remaining in account.--
                Any remaining amount in a small business start-up 
                savings account following the date described in 
                paragraph (1)(B)(i) shall be treated as distributed 
                during the taxable year following such date and such 
                distribution shall not be treated as a qualified 
                distribution.
                    ``(C) Additional tax.--
                            ``(i) In general.--The tax imposed by this 
                        chapter on the account beneficiary for any 
                        taxable year in which there is a payment or 
                        distribution from a rural renewal community 
                        business start-up savings account of such 
                        beneficiary which is includible in income under 
                        subparagraph (A) shall be increased by 10 
                        percent of the amount which is so includible.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply if the payment or distribution is made 
                        after the account beneficiary becomes disabled 
                        within the meaning of section 72(m)(7) or dies.
            ``(3) Excess contributions returned before due date of 
        return.--
                    ``(A) In general.--If any excess contribution is 
                contributed for a taxable year to any rural renewal 
                community business start-up savings account of an 
                individual, paragraph (2) shall not apply to 
                distributions from the rural renewal community business 
                start-up savings accounts of such individual (to the 
                extent such distributions do not exceed the aggregate 
                excess contributions to all such accounts of such 
                individual for such year) if--
                            ``(i) such distribution is received by the 
                        individual on or before the last day prescribed 
                        by law (including extensions of time) for 
                        filing such individual's return for such 
                        taxable year, and
                            ``(ii) such distribution is accompanied by 
                        the amount of net income attributable to such 
                        excess contribution.
                    ``(B) Excess contribution.--For purposes of 
                subparagraph (A), the term `excess contribution' means 
                any contribution (other than a rollover contribution 
                described in paragraph (4)) which when added to all 
                previous contributions for the taxable year exceeds the 
                amount allowable as a contribution under subsection 
                (b)(1).
            ``(4) Rollover contribution.--Paragraph (2) shall not apply 
        to any amount paid or distributed from a rural renewal 
        community business start-up savings account to the account 
        beneficiary to the extent the amount received is paid into a 
        rural renewal community business start-up savings account for 
        the benefit of such beneficiary not later than the 60th day 
        after the day on which the beneficiary receives the payment or 
        distribution. For purposes of this paragraph, rules similar to 
        the rules of section 408(d)(3)(D) shall apply.
            ``(5) Transfer of account incident to divorce.--The 
        transfer of an individual's interest in a rural renewal 
        community business start-up savings account to an individual's 
        spouse or former spouse under a divorce or separation 
        instrument described in subparagraph (A) of section 71(b)(2) 
        shall not be considered a taxable transfer made by such 
        individual notwithstanding any other provision of this 
        subtitle, and such interest shall, after such transfer, be 
        treated as a rural renewal community business start-up savings 
        account with respect to which such spouse is the account 
        beneficiary.
            ``(6) Treatment after death of account beneficiary.--
                    ``(A) Treatment if designated beneficiary is 
                spouse.--If the account beneficiary's surviving spouse 
                acquires such beneficiary's interest in a rural renewal 
                community business start-up savings account by reason 
                of being the designated beneficiary of such account at 
                the death of the account beneficiary, such account 
                shall be treated as if the spouse were the account 
                beneficiary.
                    ``(B) Other cases.--
                            ``(i) In general.--If, by reason of the 
                        death of the account beneficiary, any person 
                        acquires the account beneficiary's interest in 
                        a rural renewal community business start-up 
                        savings account in a case to which subparagraph 
                        (A) does not apply--
                                    ``(I) such account shall cease to 
                                be a rural renewal community business 
                                start-up savings account as of the date 
                                of death, and
                                    ``(II) an amount equal to the fair 
                                market value of the assets in such 
                                account on such date shall be 
                                includible, if such person is not the 
                                estate of such beneficiary, in such 
                                person's gross income for the taxable 
                                year which includes such date, or if 
                                such person is the estate of such 
                                beneficiary, in such beneficiary's 
                                gross income for the last taxable year 
                                of such beneficiary.
                            ``(ii) Special rules.--
                                    ``(I) Reduction of inclusion for 
                                predeath expenses.--The amount 
                                includible in gross income under clause 
                                (i) by any person (other than the 
                                estate) shall be reduced by the amount 
                                of qualified distributions which were 
                                paid or incurred by the decedent before 
                                the date of the decedent's death and 
                                paid by such person within 1 year after 
                                such date.
                                    ``(II) Deduction for estate 
                                taxes.--An appropriate deduction shall 
                                be allowed under section 691(c) to any 
                                person (other than the decedent or the 
                                decedent's spouse) with respect to 
                                amounts included in gross income under 
                                clause (i) by such person.
    ``(e) Community Property Laws.--This section shall be applied 
without regard to any community property laws.
    ``(f) Reports.--The trustee of a rural renewal community business 
start-up savings account shall make such reports regarding such account 
to the Secretary and to the individual for whom the account is, or is 
to be, maintained with respect to contributions (and the years to which 
they relate) and distributions aggregating $10 or more in any calendar 
year, and such other matters as the Secretary may require. The reports 
required by this subsection--
            ``(1) shall be filed at such time and in such manner as the 
        Secretary prescribes, and
            ``(2) shall be furnished to individuals--
                    ``(A) not later than January 31 of the calendar 
                year following the calendar year to which such reports 
                relate, and
                    ``(B) in such manner as the Secretary prescribes.
    ``(g) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary to carry out this section, including 
for purposes of subsection (d)(1)(B)(i) the making reports by regarding 
eligible costs of an entity in which the taxpayer directly holds stock 
or a capital or profits interest.''.
    (b) Deduction Allowed Whether or Not Individual Itemizes 
Deductions.--Section 62(a) of the Internal Revenue Code of 1986 is 
amended by inserting after paragraph (21) the following new paragraph:
            ``(22) Rural renewal community business start-up savings 
        accounts.--The deduction allowed by section 224.''.
    (c) Tax on Prohibited Transactions.--
            (1) In general.--Paragraph (1) of section 4975(e) of the 
        Internal Revenue Code of 1986 is amended by striking ``or'' at 
        the end of subparagraph (F), by redesignating subparagraph (G) 
        as subparagraph (H), and by inserting after subparagraph (F) 
        the following new subparagraph:
                    ``(G) a rural renewal community business start-up 
                savings account described in section 224, or''.
            (2) Special rule.--Subsection (c) of section 4975 of such 
        Code is amended by adding at the end of subsection (c) the 
        following new paragraph:
            ``(7) Special rule for rural renewal community business 
        start-up savings accounts.--An individual for whose benefit a 
        rural renewal community business start-up savings account is 
        established and any contributor to such account shall be exempt 
        from the tax imposed by this section with respect to any 
        transaction concerning such account (which would otherwise be 
        taxable under this section) if section 224(d)(2) applies with 
        respect to such transaction.''.
    (d) Failure To Provide Reports on Rural Renewal Community Business 
Start-Up Savings Accounts.--Paragraph (2) of section 6693(a) of the 
Internal Revenue Code of 1986 is amended by redesignating subparagraphs 
(D), (E), and (F) as subparagraphs (E), (F), and (G), respectively, and 
by inserting after subparagraph (C) the following new subparagraph:
                    ``(D) section 224(f) (relating to rural renewal 
                community business start-up savings accounts),''.
    (e) Excess Contributions.--Section 4973 of the Internal Revenue 
Code of 1986 is amended--
            (1) in subsection (a), by striking ``or'' at the end of 
        paragraph (5), by inserting ``or'' at the end of paragraph (6), 
        and inserting after paragraph (6) the following new paragraph:
            ``(7) a rural renewal community business start-up savings 
        account (within the meaning of section 224(c)),'', and
            (2) by adding at the end the following new subsection:
    ``(i) Excess Contributions to Rural Renewal Community Business 
Start-Up Savings Accounts.--For purposes of this section, in the case 
of contributions to a rural renewal community business start-up savings 
account (within the meaning of section 224(b)), the term `excess 
contributions' means the sum of--
            ``(1) the excess (if any) of--
                    ``(A) the amount contributed for the taxable year 
                to such accounts (other than a rollover contribution 
                described in section 224(d)(4)), over
                    ``(B) the amount allowable as a contribution under 
                section 224(b)(1), and
            ``(2) the amount determined under this subsection for the 
        preceding taxable year, reduced by the sum of--
                    ``(A) the distributions out of the accounts for the 
                taxable year, and
                    ``(B) the excess (if any) of the maximum amount 
                allowable as a contribution under sections 224(b)(1) 
                for the taxable year over the amount contributed to the 
                accounts for the taxable year.
        For purposes of this subsection, any contribution which is 
        distributed from a rural renewal community business start-up 
        savings account in a distribution described in section 
        224(d)(3) shall be treated as an amount not contributed.''.
    (f) Clerical Amendment.--The table of contents for part VIII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as relating to section 225 and by 
inserting after the item relating to section 223 the following new 
item:

``Sec. 224. Rural renewal community business start-up savings 
                            accounts.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.

        TITLE II--SETTING RURAL AMERICA FREE FROM OVERREGULATION

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Reducing Excessive Government in 
Rural America Act of 2016''.

SEC. 202. REDUCING EXCESSIVE GOVERNMENT IN RURAL AMERICA.

    (a) Definitions.--In this section--
            (1) the term ``cost to rural America'' with respect to a 
        rule, means all costs incurred by, and expenditures required 
        of, individuals and entities located in a rural area in 
        complying with the rule;
            (2) the term ``joint resolution'' means a joint 
        resolution--
                    (A) reported by the Committee on the Budget of the 
                Senate or the House of Representatives in accordance 
                with subsection (b)(3);
                    (B) which does not have a preamble;
                    (C) the title of which is as follows: ``Joint 
                resolution relating to repeal of costly rules for rural 
                America.'';
                    (D) the matter after the resolving clause of which 
                is as follows: ``That the following rules shall have no 
                force or effect: _______.'', the blank space being 
                filled in with the list of major rules affecting rural 
                America recommended to be repealed under subsection (b) 
                by the committees of the House in which the joint 
                resolution is reported; and
                    (E) that will result in a reduction of the cost to 
                rural America of all rules of not less than 10 percent 
                during the 10-fiscal-year period beginning with the 
                next full fiscal year;
            (3) the term ``major rule affecting rural America'' means a 
        rule having or likely to result in an annual cost to rural 
        America of not less than $100,000,000;
            (4) the term ``rule'' has the meaning given that term in 
        section 804 of title 5, United States Code; and
            (5) the term ``rural area'' means an area that--
                    (A) has a population of not less than 200 
                individuals and not more than 25,000 individuals; and
                    (B) is not located with a metropolitan statistical 
                area which has a population of more than 200,000 
                individuals.
    (b) Action by Committees.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, each committee of the Senate and the 
        House of Representatives shall submit to the Committee on the 
        Budget of its House a list of the rules that--
                    (A) are within the jurisdiction of the committee;
                    (B) the committee determines are major rules 
                affecting rural America; and
                    (C) the committee recommends should be repealed.
            (2) Considerations.--In determining whether to recommend 
        repealing major rules affecting rural America within its 
        jurisdiction, a committee of the Senate or the House of 
        Representatives shall consider--
                    (A) whether the major rule affecting rural America 
                achieved, or has been ineffective in achieving, the 
                original purpose of the major rule affecting rural 
                America;
                    (B) any adverse effects that could materialize if 
                the major rule affecting rural America is repealed, in 
                particular if those adverse effects are the reason the 
                major rule affecting rural America was originally 
                enacted;
                    (C) whether the costs of the major rule affecting 
                rural America outweigh any benefits of the major rule 
                affecting rural America to the United States;
                    (D) whether the major rule affecting rural America 
                has become obsolete due to changes in technology, 
                economic conditions, market practices, or any other 
                factors; and
                    (E) whether the major rule affecting rural America 
                overlaps with another rule.
            (3) Combining of recommendations.--The Committee on the 
        Budget of the Senate and the Committee on the Budget of the 
        House of Representatives, upon receiving recommendations from 
        all relevant committees under paragraph (1), shall report to 
        its House a joint resolution carrying out all such 
        recommendations without any substantive revision, if the 
        committee determines the joint resolution meets the requirement 
        under subsection (a)(2)(E).
    (c) Expedited Procedures.--
            (1) Consideration in house of representatives.--
                    (A) Placement on calendar.--Upon a joint resolution 
                being reported by the Committee on the Budget of the 
                House of Representatives, or upon receipt of a joint 
                resolution from the Senate, the joint resolution shall 
                be placed immediately on the calendar.
                    (B) Proceeding to consideration.--
                            (i) In general.--It shall be in order, not 
                        later than 60 days after the date on which a 
                        joint resolution is reported by the Committee 
                        on the Budget of the House of Representatives, 
                        to move to proceed to consider a joint 
                        resolution in the House of Representatives.
                            (ii) Procedure.--For a motion to proceed to 
                        consider a joint resolution--
                                    (I) all points of order against the 
                                motion are waived;
                                    (II) such a motion shall not be in 
                                order after the House of 
                                Representatives has disposed of a 
                                motion to proceed to the joint 
                                resolution;
                                    (III) the previous question shall 
                                be considered as ordered on the motion 
                                to its adoption without intervening 
                                motion;
                                    (IV) the motion shall not be 
                                debatable; and
                                    (V) a motion to reconsider the vote 
                                by which the motion is disposed of 
                                shall not be in order.
                    (C) Consideration.--The House of Representatives 
                shall establish rules for consideration of a joint 
                resolution in the House of Representatives.
            (2) Expedited consideration in senate.--
                    (A) Placement on calendar.--Upon a joint resolution 
                being reported by the Committee on the Budget of the 
                Senate, or upon receipt of a joint resolution from the 
                House of Representatives, the joint resolution shall be 
                placed immediately on the calendar.
                    (B) Proceeding to consideration.--
                            (i) In general.--Notwithstanding rule XXII 
                        of the Standing Rules of the Senate, it is in 
                        order, not later than 60 days after the date on 
                        which a joint resolution is reported by the 
                        Committee on the Budget of the Senate (even 
                        though a previous motion to the same effect has 
                        been disagreed to) to move to proceed to the 
                        consideration of a joint resolution.
                            (ii) Procedure.--For a motion to proceed to 
                        the consideration of a joint resolution--
                                    (I) all points of order against the 
                                motion are waived;
                                    (II) the motion is not debatable;
                                    (III) the motion is not subject to 
                                a motion to postpone;
                                    (IV) a motion to reconsider the 
                                vote by which the motion is agreed to 
                                or disagreed to shall not be in order; 
                                and
                                    (V) if the motion is agreed to, the 
                                joint resolution shall remain the 
                                unfinished business until disposed of.
                    (C) Floor consideration generally.--If the Senate 
                proceeds to consideration of a joint resolution--
                            (i) all points of order against the joint 
                        resolution (and against consideration of the 
                        joint resolution) are waived;
                            (ii) consideration of the joint resolution, 
                        and all amendments thereto and debatable 
                        motions and appeals in connection therewith, 
                        shall be limited to not more than 10 hours, 
                        which shall be divided equally between the 
                        majority and minority leaders or their 
                        designees;
                            (iii) a motion to postpone or a motion to 
                        commit the joint resolution is not in order; 
                        and
                            (iv) a motion to proceed to the 
                        consideration of other business is not in 
                        order.
                    (D) Requirements for amendments.--
                            (i) In general.--No amendment that is not 
                        germane to the provisions of a joint resolution 
                        shall be considered.
                            (ii) Repeal of major rules affecting rural 
                        america.--Notwithstanding clause (i) or any 
                        other rule, an amendment or series of 
                        amendments to a joint resolution shall always 
                        be in order if such amendment or series of 
                        amendments proposes to repeal a major rule 
                        affecting rural America that would result in a 
                        decrease in the total cost to rural America of 
                        all rules during the 10-fiscal-year period 
                        beginning with the next full fiscal year.
                    (E) Vote on passage.--The vote on passage shall 
                occur immediately following the conclusion of the 
                consideration of a joint resolution, and a single 
                quorum call at the conclusion of the debate if 
                requested in accordance with the rules of the Senate.
                    (F) Rulings of the chair on procedure.--Appeals 
                from the decisions of the Chair relating to the 
                application of this subsection or the rules of the 
                Senate, as the case may be, to the procedure relating 
                to a joint resolution shall be decided without debate.
            (3) Consideration after passage.--If the President vetoes 
        the joint resolution, consideration of a veto message in the 
        Senate under this section shall be not more than 2 hours 
        equally divided between the majority and minority leaders or 
        their designees.
            (4) Rules of house of representatives and senate.--This 
        subsection is enacted by Congress--
                    (A) as an exercise of the rulemaking power of the 
                Senate and House of Representatives, respectively, and 
                as such is deemed a part of the rules of each House, 
                respectively, but applicable only with respect to the 
                procedure to be followed in that House in the case of a 
                joint resolution, and supersede other rules only to the 
                extent that they are inconsistent with such rules; and
                    (B) with full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedure of that House) at any time, 
                in the same manner, and to the same extent as in the 
                case of any other rule of that House.
    (d) Effect of Joint Resolution.--
            (1) In general.--A major rule affecting rural America shall 
        cease to have force or effect if Congress enacts a joint 
        resolution repealing the major rule affecting rural America.
            (2) Limitation on subsequent rulemaking.--A rule that 
        ceases to have force or effect under paragraph (1) may not be 
        reissued in substantially the same form, and a new rule that is 
        substantially the same as such a rule may not be issued, unless 
        the reissued or new rule is specifically authorized by a law 
        enacted after the date of the joint resolution repealing the 
        original rule.
                                 <all>