[Congressional Record Volume 148, Number 131 (Tuesday, October 8, 2002)]
[Extensions of Remarks]
[Page E1777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


               THE AMERICAN COMMUNITY RENEWAL ACT OF 2002

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                          HON. J.C. WATTS, JR.

                              of oklahoma

                    in the house of representatives

                        Monday, October 7, 2002

  Mr. WATTS of Oklahoma. Mr. Speaker, America's strength rests in its 
communities. It is for this reason that today I introduce the American 
Community Renewal Act of 2002. This legislation will continue the 
advances begun with the provisions contained in the original American 
Community Renewal Act of 2000, and provide opportunity for even more 
cities, towns, and neighborhoods across the country to better their 
circumstances.
  This legislation authorizes the designation of 20 additional Renewal 
Communities, 15 urban and 5 rural, using newly available 2000 census 
data. By creating an environment where private investment can flourish, 
Renewal Communities are uniquely able to harness market forces for job 
creation and growth. Providing access to employment is a catalyst for 
people to escape the vicious downward spiral of poverty, and to improve 
the lots of their families and communities.
  An additional incentive provided for in this legislation is a new tax 
code feature designed to encourage private sector investment in Renewal 
Communities, Empowerment Zones, Enterprise Communities and HUBZones. 
This addition to the Internal Revenue Code of 1986, relating to common 
nontaxable exchanges, would allow investors, subject to certain 
restrictions, take proceeds from the sale of real property and re-
invest these proceeds in businesses in the community without 
recognizing capital gains. This should encourage investment in 
businesses within these communities that create jobs for the residents 
of said communities.
  Finally, in order to marshal the resolve of State governments to 
engage in the revitalization process within Renewal Communities, this 
legislation requires that States adopt a qualified allocation plan for 
their available commercial revitalization deduction within 120 days. If 
States fail to adopt such a plan, the commercial revitalization 
deduction allocations will pass directly to the approved commercial 
revitalization agency at the local governmental level. This provision 
will encourage States to provide the statewide coordination function 
for community revitalization originally intended in the American 
Community Renewal Act of 2000.
  One of the primary responsibilities of Congress is to create an 
environment that rewards efforts to strengthen our nation's 
communities, and fosters the development of responsible and engaged 
citizens. The American Community Renewal Act of 2002 continues the 
efforts of previous Congresses in this regard. This strategy is 
particularly relevant in today's volatile world.

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