[Congressional Record Volume 143, Number 12 (Tuesday, February 4, 1997)]
[Extensions of Remarks]
[Page E148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                H.R. 505, THE COMMUNITY EMPOWERMENT ACT

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                       Tuesday, February 4, 1997

  Mr. RANGEL. Mr. Speaker, today, we have the opportunity to take 
another step closer to a goal we all share with President Clinton: 
renewing investment in our cities and communities. I am joined by 18 
other Members today in introducing H.R. 505, the Community Empowerment 
Act.
  The Community Empowerment Act expands on the successful empowerment 
zone initiative we began in 1993 which created 9 empowerment zone 
demonstration projects and 95 enterprise communities. The bill I am 
introducing today provides tax incentives for an additional 22 new 
empowerment zones and 80 enterprise communities. The bill also provides 
tax incentives for cleanup of up to 30,000 brownfield sites across the 
country.
  Everyone has an interest in seeing these communities thrive 
economically and environmentally. These tax incentives will mean our 
investments can finally pay off for both the investor and the 
community.
  The bill would establish a new category of tax-exempt financing for 
20 additional empowerment zones in 15 urban and 5 rural areas. The 
other newly designated areas, the 80 enterprise communities, 50 urban 
and 30 rural, and the 2 additional empowerment zones, would enjoy 
essentially the same incentives as provided under current law. Located 
mainly in low-income areas, the zones, and smaller enterprise 
communities, would be designated for tax and other incentives to 
enhance economic development, job growth, improved education, housing, 
and other benefits. As in the nine existing empowerment zones, 
communities would have the power to design their own specific programs.
  The bill would also provide $2 billion in tax incentives specifically 
to address the important problem of brownfields, which are abandoned, 
polluted industrial sites. The tax incentives will spur the private 
sector to clean up these sites and put them back into productive use. 
The incentives would apply to all distressed communities, including 
current and future empowerment zones and enterprise communities, and 
are expected to result in $10 billion in private cleanup investment 
over the next 7 years. Under current law, the costs of new buildings or 
permanent improvements that increase the value of any property are not 
deductible. The community Empowerment Act would make certain 
remediation costs deductible if they were incurred while restoring a 
qualified site.
  Mr. Speaker, leveraging public sector resources to encourage private-
sector community investment is a fiscally responsible and wise means of 
promoting community development and prosperity. I invite my colleagues 
to sign onto this bill and vote for it.

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