[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                  S. 3

 To amend the Internal Revenue Code of 1986 to provide additional new 
          markets tax credits for distressed coal communities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2016

  Mrs. Capito 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 provide additional new 
          markets tax credits for distressed coal communities.

    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 ``Creating Opportunities for Rural 
Economic Expansion Act'' or the ``CORE Act''.

SEC. 2. ADDITIONAL NEW MARKETS TAX CREDIT FOR DISTRESSED COAL 
              COMMUNITIES.

    (a) In General.--Section 45D(f) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(4) Set aside of portion of limitation for distressed 
        coal communities.--
                    ``(A) In general.--For any calendar year after 
                2016, not less than 5 percent of the new markets tax 
                credit limitation shall be allocated to qualified 
                community development entities in connection with 
                qualified investments the proceeds of which are 
                substantially used to make qualified coal community 
                investments.
                    ``(B) Qualified coal community investment.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `qualified coal 
                        community investment' means--
                                    ``(I) any capital or equity 
                                investment in, or loan to, any 
                                qualified active distressed coal 
                                community business,
                                    ``(II) the purchase from another 
                                community development entity of any 
                                loan made by such entity which is a 
                                qualified coal community investment,
                                    ``(III) financial counseling and 
                                other services specified in regulations 
                                prescribed by the Secretary to 
                                businesses located in, and residents 
                                of, distressed coal communities, and
                                    ``(IV) any equity investment in, or 
                                loan to, any qualified community 
                                development entity in connection with 
                                qualified investments the proceeds of 
                                which are substantially used to make 
                                qualified coal community investments.
                            ``(ii) Qualified active distressed coal 
                        community business.--The term `qualified active 
                        coal community business' means any business 
                        which would be a qualified active low-income 
                        community business if paragraphs (2) and (3) of 
                        subsection (d) were applied by substituting 
                        `distressed coal community' for `low-income 
                        community' each place it appears.
                            ``(iii) Distressed coal community.--
                                    ``(I) In general.--The term 
                                `distressed coal community' means any 
                                low-income community which is located 
                                in a county which--
                                            ``(aa) was one of the 30 
                                        counties with the biggest 
                                        employment decrease among coal 
                                        operators (as determined under 
                                        reports issued by the Mine 
                                        Safety and Health 
                                        Administration) for an 
                                        applicable period, or
                                            ``(bb) is contiguous to a 
                                        county which--

                                                    ``(AA) is described 
                                                in item (aa) and is 
                                                within the same State 
                                                as such county, and

                                                    ``(BB) contains not 
                                                less than 1 low-income 
                                                community.

                                    ``(II) Applicable periods.--For 
                                purposes of subclause (I)(aa), the term 
                                `applicable period' means any of the 
                                following periods:
                                            ``(aa) Calendar year 2013 
                                        compared to calendar year 2012.
                                            ``(bb) Calendar year 2014 
                                        compared to calendar year 2013.
                                            ``(cc) Calendar year 2015 
                                        compared to calendar year 2014.
                    ``(C) Limitation of allocation of set aside.--
                            ``(i) In general.--In allocating the 
                        portion of the new markets tax credit 
                        limitation to which subparagraph (A) applies, 
                        the Secretary shall ensure that, with respect 
                        to any eligible State, not less than the 
                        minimum percentage of such limitation is 
                        allocated to qualified community development 
                        entities making qualified coal community 
                        investments in such eligible State.
                            ``(ii) Minimum percentage.--For purposes of 
                        clause (i), the minimum percentage for any 
                        eligible State is the percentage equal to 80 
                        percent of the ratio of--
                                    ``(I) the qualified coal operator 
                                employment decrease in such State, to
                                    ``(II) the total qualified coal 
                                operator employment decrease in all 
                                eligible States.
                            ``(iii) Qualified coal operator employment 
                        decrease.--For purposes of clause (ii), the 
                        term `qualified coal operator employment 
                        decrease' means, with respect to any eligible 
                        State, the aggregate amount of employment 
                        decrease among coal operators for all counties 
                        in such State--
                                    ``(I) in which there is a low-
                                income community, and
                                    ``(II) which are taken into account 
                                under item (aa) of subparagraph 
                                (B)(iii)(I).
                            ``(iv) Eligible state.--For purposes of 
                        this subparagraph, the term `eligible State' 
                        means any State in which there is a distressed 
                        coal community.
                    ``(D) Application of carryover.--Paragraph (3) 
                shall be applied separately with respect to amounts 
                described in subparagraph (A).''.
    (b) Application of Recapture Rules.--Section 45D(g)(3)(B) of the 
Internal Revenue Code of 1986 is amended by inserting ``(or, in the 
case of an investment described in subsection (f)(4), as required under 
such subsection)'' after ``(b)(1)(B)''.
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