[Congressional Record Volume 148, Number 15 (Friday, February 15, 2002)]
[Senate]
[Page S898]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WARNER:
  S. 1957. A bill to amend the Internal Revenue Code of 1986 to provide 
for additional designations of renewal communities; to the Committee on 
Finance.
  Mr. WARNER. Mr. President, I am pleased today to introduce 
legislation that will provide for greater economic growth, job creation 
and improve the availability of affordable housing in some of our 
Nation's most distressed communities. The legislation calls for the 
designation of a second round of Renewal Communities.
  The Renewal Communities program is an economic development initiative 
that was included in the Fiscal Year 2001 Consolidated Appropriations 
Act. The communities designated under the program benefit from a 
variety of tax incentives designed to attract new companies and enhance 
business opportunities in an area. Wage credits, a zero capital gains 
rate on new investments and similar tax breaks for business related 
expenditures will augment the efforts of State and local governments to 
promote job growth and restore economic stability in their communities.
  The Consolidated Appropriations Act signed into law on December 21, 
2000, provided for the designation of 40 Renewal Communities. The 
Department of Housing and Urban Development was responsible for the 
selection and designation of the new RCs. The Department announced the 
list of 40 communities, which will share over $17 billion in tax 
incentives, on January 24, 2002.
  The designations are based on poverty rates, median income, and 
unemployment rates in the community. The most recent Department of 
Commerce census data available during the application process was from 
1990. This was an issue of timing as passage of the legislation 
overlapped with the compilation of new census data in 2000.
  The use of the 1990 census data, however, severely limited the 
ability of many cities and localities which may be eligible based on 
the most recent data. The 1990 data does not reflect the economic 
shifts which have taken place over the last decade throughout the 
country.
  In the Commonwealth of Virginia, many communities have been 
devastated economically by plant closings since the census in 1990. The 
unemployment figures continue to rise when more businesses are forced 
to close down as the adverse financial effects begin to filter through 
the community.
  My legislation would provide for the designation of an additional 
twenty renewal communities with the requirement that the most recent 
2000 census data would be used. I believe that a second round of 
Renewal Community designations would be appropriate and fair to those 
communities excluded by the limits of timing out of their control.
  We cannot move forward as a Nation when the gap in the economy 
stability of our local communities grows deeper and they are left 
behind. This is something the Federal Government can do to stimulate 
the economy from the ground up and at the same time help those who need 
it most.
  I encourage my colleagues to support this initiative. I ask unanimous 
consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1957

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

     SECTION 1. ADDITIONAL DESIGNATIONS OF RENEWAL COMMUNITIES.

       (a) In General.--Section 1400E of the Internal Revenue Code 
     of 1986 (relating to designation of renewal communities) is 
     amended by redesignating subsection (f) as subsection (g) and 
     by inserting after subsection (e) the following new 
     subsection:
       ``(f) Additional Designations Permitted.--
       ``(1) In general.--In addition to the areas designated 
     under subsection (a), the Secretary of Housing and Urban 
     Development may designate in the aggregate an additional 20 
     nominated areas as renewal communities under this section, 
     subject to the availability of eligible nominated areas. Of 
     that number, not less than 5 shall be designated in areas 
     described in subsection (a)(2)(B).
       ``(2) Period designations may be made and take effect.--A 
     designation may be made under this subsection after the date 
     of the enactment of this subsection and before January 1, 
     2003. Subject to subparagraphs (B) and (C) of subsection 
     (b)(1), such designations shall remain in effect during the 
     period beginning on January 1, 2003, and ending on December 
     31, 2010.
       ``(3) Modifications to eligibility determinations.--The 
     rules of this section shall apply to designations under this 
     subsection, except that population and poverty rate shall be 
     determined by using the most recent census data available.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.
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