[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3354 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3354

     To amend the Internal Revenue Code of 1986 to exclude income 
        attributable to certain real property from gross income.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 20, 2016

 Mr. Kirk (for himself and Mr. Manchin) 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 exclude income 
        attributable to certain real property from gross income.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bringing Business Back Act of 
2016''.

SEC. 2. EXCLUSION FOR INCOME ATTRIBUTABLE TO CERTAIN REAL PROPERTY.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139F the following new section:

``SEC. 139G. INCOME ATTRIBUTABLE TO QUALIFIED REAL PROPERTY EXCLUDED 
              FROM GROSS INCOME.

    ``(a) In General.--Gross income shall not include income or gain 
attributable to qualified real property for any taxable year beginning 
during the exclusion period.
    ``(b) Qualified Real Property.--For purposes of this section--
            ``(1) In general.--
                    ``(A) Definition.--The term `qualified real 
                property' means any real property--
                            ``(i) which is certified by the State or 
                        local zoning authority, and any economic 
                        development board, with respect to such 
                        property as meeting the requirements of 
                        subparagraph (B), and
                            ``(ii) with respect to which an election 
                        has been made (at such time and in such form 
                        and manner as the Secretary shall by regulation 
                        prescribe) to have this section apply.
                    ``(B) Requirements.--Property meets the 
                requirements of this subparagraph if such property--
                            ``(i) is zoned for commercial use,
                            ``(ii) has been undeveloped and vacant 
                        during the 2-year period ending on the date of 
                        certification, and
                            ``(iii) is located within a qualified 
                        census tract.
            ``(2) Qualified census tract.--The term `qualified census 
        tract' means--
                    ``(A) any census tract--
                            ``(i) which--
                                    ``(I) has an average poverty rate 
                                exceeding the national average poverty 
                                rate, or
                                    ``(II) has an unemployment rate 
                                above the national unemployment rate, 
                                and
                            ``(ii) exhibits another condition of 
                        distress, such as deteriorating infrastructure 
                        or population decline, or
                    ``(B) any qualified rural census tract.
            ``(3) Qualified rural census tract.--The term `qualified 
        rural census tract' means any census tract--
                    ``(A) which is located in a rural community,
                    ``(B) which has an unemployment rate of not less 
                than 6 percent, and
                    ``(C) in which not less than 50 percent of the 
                houses were constructed before 1980.
            ``(4) Rules relating to poverty and unemployment rates.--
        For purposes of paragraphs (2) and (3), poverty rates shall be 
        determined by using 2010 census data, and unemployment rates 
        shall be determined by reference to the rate of unemployment 
        announced by the Bureau of Labor Statistics of the Department 
        of Labor for the months in the two most recently ended calendar 
        quarters.
            ``(5) Economic development board.--The term `economic 
        development board' means, with respect to any property, any 
        entity established by law to oversee the economic development 
        of an area within which such property is located.
    ``(c) Exclusion Period.--The term `exclusion period' means, with 
respect to a taxable year, the 1-taxable-year period beginning with the 
first taxable year beginning after the date of the enactment of this 
section for which the income attributable to the qualified real 
property exceeds the pre-depreciation expenses attributable to such 
real property.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Subsequent taxpayers.--Subsection (a) shall only 
        apply to a taxpayer who has an ownership interest in the 
        qualified real property on the first day of the exclusion 
        period with respect to such property.
            ``(2) Limitation on application of section.--An election to 
        have this section apply may only be made once with respect to 
        any property.
            ``(3) Tax-exempt use property.--This section shall not 
        apply to any property which is tax-exempt use property (as 
        defined in section 168(h)).
    ``(e) Regulations.--The Secretary may prescribe such regulations as 
may be necessary or appropriate to carry out the purposes of this 
section, including methods for allocating income and expenses to 
property and rules to prevent abuse of this section.''.
    (b) Clerical Amendment.--The table of parts for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139F the following new item:

``Sec. 139G. Income attributable to qualified real property excluded 
                            from gross income.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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