[Congressional Record Volume 148, Number 130 (Monday, October 7, 2002)]
[House]
[Pages H7132-H7133]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AMENDING INTERNAL REVENUE CODE OF 1986 BASED ON 2000 CENSUS DATA
Mr. HOUGHTON. Mr. Speaker, I ask unanimous consent to take from the
Speaker's table the bill (H.R. 3100) to amend the Internal Revenue Code
of 1986 to allow for the expansion of areas designated as renewal
communities based on 2000 census data, and ask for its immediate
consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
Mr. LaFALCE. Mr. Speaker, reserving the right to object, and I will
not object, especially since, along with the gentleman from New York
(Mr. Houghton), the gentleman from New York (Mr. Quinn) and the
gentleman from New York (Mr. Reynolds) and others, I introduced this
bill. It is extremely important to enhance the effectiveness of the
Renewal Community Economic Revitalization Program.
I thank the gentlemen who are here, and the gentleman from New York
(Mr. Reynolds) also, for joining with me in it.
Mr. Speaker, in the last Congress we enacted bipartisan legislation
authorizing the designation of 40 Renewal Communities nationwide. The
purpose of that program is to offer substantial economic development
tax incentives for areas which are characterized by pervasive poverty,
unemployment and general distress. The program works solely through tax
incentives designed to revitalize these areas through tax benefits for
investments and hiring of employees within these areas.
Early this year, HUD designated the 40 Renewal Communities under a
national competition. Each Renewal Community was required to meet a
number of objective eligibility criteria related to poverty, income and
unemployment.
However, since the designations were made before all the 2000 census
data was available, eligibility requirements relating to poverty and
population were made using outdated 1990 census data. Use of such
outdated economic data was required under the authorizing legislation
and was probably necessary, given that the designation process was
undertaken before this 2000 census data became available.
This bill significantly expands the areas of the 40 Renewal
Communities that have already been designated and establishes criteria
for going forward also by using Year 2000 census data. The general
program limitations would be retained. Any Renewal Community seeking to
add census tracts would still be subject to the area requirements of
the program that the boundary of the community be contiguous, that its
total population not exceed 200,000 and that the community be within
the jurisdiction of one or more local governments.
The effective date treatment in the bill would permit investment and
other tax credit provisions to apply in expanded census tracts as if
they were part of the original application. That is extremely
important, too.
Mr. HOUGHTON. Mr. Speaker, will the gentleman yield?
Mr. LaFALCE. I yield to the gentleman from New York.
Mr. HOUGHTON. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, this is a very simple bill which is designed to correct
the Renewal Community legislation previously passed by this Congress.
It is going to allow the use of 2000 census data for designation of new
areas in the Renewal Communities.
Mr. QUINN. Mr. Speaker, will the gentleman yield?
[[Page H7133]]
Mr. LaFALCE. I yield to the gentleman from New York.
Mr. QUINN. Mr. Speaker, I thank my neighbor, colleague and friend for
yielding.
Mr. Speaker, let me just say for the record, to be quick here, I want
to associate myself with the remarks of the gentleman from New York
(Mr. LaFalce), the gentleman from New York (Mr. Reynolds) and the
gentleman from New York (Mr. Houghton). The four of us worked on this.
This is a question today about fairness, about using current
information. We know that Renewal Communities work. This legislation
this evening makes it fair for everybody to become involved. I am
pleased to associate myself with the hard work that has been done by
the committee staff, as well as both the gentlemen from New York and
our friend and colleague, the gentleman from New York (Mr. Reynolds).
Mr. REYNOLDS. Mr. Speaker, will the gentleman yield?
Mr. LaFALCE. I yield to the gentleman from New York.
Mr. REYNOLDS. Mr. Speaker, I thank the gentleman.
I want to salute my two colleagues from Erie County and representing
the Niagara frontier, as well as the distinguished gentleman managing
the rule from the Southern Tier.
{time} 1930
This piece of legislation does a great deal to help the western New
York area. I just want to salute the leadership of the gentleman from
New York (Mr. LaFalce) and the gentleman from New York (Mr. Quinn) for
their efforts of making this a reality today as it comes through the
House; and, hopefully, we will see that support in the Senate. It will
greatly help our area recover.
Mr. LaFALCE. Mr. Speaker, I thank the gentleman from New York (Mr.
Reynolds) for his assistance with the Republican leadership.
Mr. QUINN. Mr. Speaker, I rise today in support of H.R. 3100.
H.R. 3100 will allow Renewal Communities to amend their boundaries by
adding census tracts meeting the program's criteria based on 2000
census data. The 40 Renewal Communities designated by HUD were required
to use 1990 census data.
The objective of the Community Renewal Tax Reform Act of 2000, CRTRA,
is to stabilize and invigorate distressed communities by providing
special targeted incentives directly to businesses. These incentives
are designed to expand jobs and business investment by making it more
beneficial to stay or relocate in areas that have been experiencing
job/population loss.
It would seem logical that those areas that have continued to
deteriorate should be eligible to use the most current data available--
2000 census--to expand their boundaries.
It is important to note that no existing Renewal Community will be
adversely affected. Only those communities that have increased poverty
levels and continued to lose businesses and jobs would apply to HUD to
amend their boundaries. The same qualifying criteria will apply to
adding new census tracts. No Renewal Communities will be able to
include more than 200,000 in population. All tracts must be contiguous.
The economic expansion for most of the United States during the
decade of the '90s was not experienced in Upstate New York. If NYC is
taken out of the equation, New York ranks 49th out of the 50 States in
job creation and business expansion during the '90s. The Buffalo/
Niagara Falls SMA lost more jobs and population than any city in the
country during that time. The August median sales prices for homes sold
in the Buffalo area last month was only $85,000, an indicator of the
economic conditions.
Finally, there should be no budget impact, as the parameters of the
program will remain unchanged. Thank you Mr. Speaker for scheduling
H.R. 3100 on the floor of the House of Representatives today. I urge
all of my colleagues on both sides of the aisle to support this
bipartisan, commonsense legislation.
Mr. LaFALCE. Mr. Speaker, I withdrawal my reservation of objection.
The SPEAKER pro tempore (Mr. Flake). Is there objection to the
request of the gentleman from New York?
There was no objection.
The Clerk read the bill, as follows:
H.R. 3100
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXPANSION OF DESIGNATED RENEWAL COMMUNITY AREA
BASED ON 2000 CENSUS DATA.
(a) In General.--Section 1400E of the Internal Revenue Code
of 1986 (relating to designation of renewal communities) is
amended by adding at the end the following new subsection:
``(g) Expansion of Designated Area Based on 2000 Census.--
At the request of the nominating entity with respect to a
renewal community, the Secretary of Housing and Urban
Development may expand the area of such community to include
any census tract--
``(1) which, at the time such community was nominated, met
the requirements of this section for inclusion in such
community but for the failure of such tract to meet 1 or more
of the population and poverty rate requirements of this
section using 1990 census data, and
``(2) which meets all failed population and poverty rate
requirements of this section using 2000 census data.
Any such expansion shall take effect as provided in
subsection (b).''
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in the amendments made by
section 101 of the Community Renewal Tax Relief Act of 2000.
The bill was ordered to be engrossed and read a third time, was read
the third time, and passed, and a motion to reconsider was laid on the
table.
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