[Congressional Record (Bound Edition), Volume 148 (2002), Part 14]
[House]
[Pages 19371-19372]
[From the U.S. 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 that the Committee 
on Ways and Means be discharged from further consideration of 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population were made using outdated 1990 census data.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outdated economic data was required under the authorizing legislation 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?
  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

[[Page 19372]]

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 withdraw 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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