[Congressional Record Volume 145, Number 58 (Tuesday, April 27, 1999)]
[Senate]
[Pages S4278-S4279]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. Santorum, and Mr. Cochran):
  S. 889. A bill to amend the Internal Revenue Code of 1986 to provide 
a tax credit for investment necessary to revitalize communities within 
the United States, and for other purposes; to the Committee on Finance.


               commercial revitalization tax act of 1999

  Mrs. HUTCHISON. Mr. President, today I am pleased to introduce, along 
with Mr. Santorum, and Mr. Cochran, the Commercial Revitalization Tax 
Credit Act of 1999. This bill is identical to the bipartisan and widely 
supported legislation I sponsored during the last session of Congress.
  This measure will create jobs, expand economic activity, and 
revitalize the

[[Page S4279]]

physical structure and value of residential and commercial buildings in 
America's most distressed urban and rural communities.
  The bill provides a targeted tax credit to businesses to help defray 
the cost of construction, expansion, and renovation in these areas, and 
in the process will generate billions in privately based economic 
activity in those areas that need the most help in our country.
  As we continue to look for ways to combat the decay of our inner 
cities and to raise the standard of living in many of our rural areas, 
I believe, and numerous studies demonstrate, that reversing the 
physical deterioration in America's cities has numerous and far 
reaching economic benefits. Revitalization in decaying neighborhoods 
lifts the hopes and expectations of the residents of those areas that 
economic growth and opportunity is coming their way. Indeed, one of the 
key recommendations of a top-to-bottom review of law enforcement in 
this city, our Nation's Capital, was to improve the many abandoned 
buildings in Washington, D.C. that create an atmosphere conducive to 
crime and despair.
  The Commercial Revitalization Tax Credit Act will build upon the 
empowerment zone/enterprise community program that is now unfolding 
over 100 communities in the United States. Texas has five of these 
specially designated areas: Houston, Dallas, El Paso, San Antonio, and 
Waco, as well as one rural zone in the Rio Grande valley covering four 
counties. Not only will these cities qualify for the credit under my 
bill, but so will the 400 communities in the United States that sought 
such designation but were not selected. State-established enterprise 
zones and other specifically designated revitalization districts 
established by State and local governments will also be able to 
participate. In all, over 1,000 areas will qualify for this credit 
nationwide.
  Our bill contains the following principle features: A tax credit that 
may be applied to construction amounting to at least 25 percent of the 
basis of the property, in designated revitalization areas; qualified 
investors could choose a one-time 20-percent tax credit against the 
cost of new construction or rehabilitation. Alternatively, a business 
owner could take a five percent credit each year over a 10-year period. 
Tax credits would be allocated to each state, according to a formula, 
with States and localities determining the priority of the projects. In 
all, $1.5 billion in tax credits would be allocated under this tax 
bill.
  Mr. President, with a minimum level of bureaucratic involvement and 
through a proven tax mechanism, this initiative will make a significant 
difference in the lives of thousands of families in need and for the 
economies of hundreds of distressed urban and rural communities across 
this Nation.
  I hope my colleagues will join me in supporting this sound and 
effective pro-growth initiative.
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