Introduced on December 14, 2000 | Number of Co-Sponsors 1 | |
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Full title To amend the Internal Revenue Code of 1986 to provide for community revitalization and a 2-year extension of medical saving accounts, and for other purposes. Introduced in 106th United States Congress Sponsored by Rep. William Reynolds Archer, Jr. (R-TX) Public Law Incorporated into Pub.L. 106–554 | ||
The Community Renewal Tax Relief Act of 2000 (H
Contents
The Community Renewal Tax Relief Act of 2000 is intended to improve development in economically distressed areas of the United States. The law offers "tax incentives for businesses to locate and hire residents in urban and rural areas that have not experienced recent economic expansion." Both rural and urban areas are eligible. Three primary means were used: renewal communities, empowerment zones, and community development entities. The bill also created the New Markets Tax Credit Program, which has been renewed several times and is still in effect.
Provisions of the bill
One provision of the Community Renewal Tax Relief Act of 2000 was the creation of 40 "renewal communities". Renewal communities would receive special tax breaks designed to encourage economic growth by generating business investment and job opportunities. Requirements to being designated a renewal community included having a high rate of poverty and high unemployment rate (compared to rates nationwide). The communities must have under 200,000 people in them, but can be any physical size. Local and state governments must be involved with a community gaining this designation. They are required to participate by making their own commitments to taking action to reduce economic burdens on employers and businesses in the area, as well as taking steps to encourage economic growth. If a community is successful in becoming a designated renewal community, local business "may be entitled to employer wage credits for full-time employees and summer workers, an expanded expense deduction for tangible assets, an accelerated commercial revitalization deduction and a 100% exclusion for capital gains on the sale of certain renewal community business interests or tangible assets."
Another provision of the Community Renewal Tax Relief Act of 2000 was the improvement and expansion of an existing program of "empowerment zones." The law authorized the creation of additional empowerment zones, which were originally created in 1993, and the expansion of some of the tax incentives available. These incentives include that businesses located in these zones "will enjoy a wage credit for certain employees, increased expensing of some property, a 60% exclusion of gain from the sale of their stock, deferral of gain on qualifying assets if the proceeds are reinvested in appropriate replacement assets and easier access to tax-exempt financing."
A third provision of the Community Renewal Tax Relief Act of 2000 was the establishment of tax incentives for investment or loans provided to small businesses in low-income communities. This tax credit, known as the New Markets Tax Credit Program, is established for investments in community development entities (CDEs). CDEs have three official characteristics: their primary mission is to serve low-income communities and people, they are accountable to residents and include them on their governing boards, and they receive certification as a CDE from the U.S. Department of the Treasury.
Congressional Research Service summary
This summary is based largely on the summary provided by the Congressional Research Service, a public domain source.
Title I: Community Renewal and New Markets
Subtitle A: Tax Incentives for Renewal Communities - Authorizes the Secretary of Housing and Urban Development to designate (upon local or State nomination) up to 40 renewal communities, of which at least 12 shall be in rural areas. Subtitle B: Extension and Expansion of Empowerment Zone Incentives - Provides for the designation of additional empowerment zones and increased empowerment zone tax incentives. Subtitle C: New Markets Tax Credit- Establishes a new markets tax credit with respect to specified qualified low-income community investments. Sets a national new markets tax credit limitation. Subtitle D: Improvements in Low-Income Housing Credit - Amends the Code, with respect to the low-income housing credit, to revise the formula for the State housing credit ceiling. Provides for cost-of-living adjustments to the State ceiling. Subtitle E: Other Community Renewal and New Markets Assistance Subtitle F: Other Provisions - Provides for an accelerated phase-in of specified increases in the volume cap on private activity bonds.Title II: Two-Year Extension of Availability of Medical Savings Accounts
Extends, for two years the availability of medical savings accounts. Renames such accounts Archer MSAs.Title III: Administrative and Technical Provisions
Subtitle A: Administrative Provisions - Sets forth various administrative provisions, including provisions concerning: (1) the exemption of certain reporting requirements; (2) the extension of deadlines for IRS compliance with certain notice requirements; (3) the extension of authority for undercover operations; (4) confidentiality of certain documents relating to closing and similar agreements and to agreements with foreign governments; (5) an increase in the threshold for Joint Committee reports on refunds and credits; (6) the treatment of missing children with respect to certain tax benefits; (7) the prevention of the duplication of loss through the assumption of liabilities giving rise to a deduction; and (8) the disclosure of certain return information to the Congressional Budget Office, but only concerning long-term social security and medicare models. Subtitle B: Technical Corrections - Makes amendments to the: (1) Ticket to Work and Work Incentives Improvement Act of 1999; (2) Tax and Trade Relief Extension Act of 1998; (3) Internal Revenue Service Restructuring and Reform Act of 1998; (4) Taxpayer Relief Act of 1997; (5) Balanced Budget Act of 1997; (6) Small Business Job Protection Act of 1996; and (7) Revenue Reconciliation Act of 1990.Title IV: Tax Treatment of Securities Futures Contracts
States that, in general, a gain or loss attributable to the sale or exchange of a futures contract shall be considered gain or loss from the sale or exchange of property which has the same character as the property to which the contract relates has in the hands of the taxpayer if acquired by the taxpayer.Procedural history
The Community Renewal Tax Relief Act of 2000 was introduced into the House on December 14, 2000 by Rep. William Reynolds Archer, Jr. (R-TX). It was referred to the United States House Committee on Ways and Means. It was eventually incorporated into H
History
The Community Renewal Tax Relief Act of 2000 was passed in December 2000. At that time, the New Markets Tax Credit was scheduled to be a seven-year program. It was then reauthorized in subsequent years.
Empowerment zone designations were set to expire at the end of 2011, but were extended until December 31, 2013 after President Barack Obama signed into law the American Taxpayer Relief Act of 2012. Under rules from the Internal Revenue Service, all Empowerment Zone designations were extended unless they actively requested not to be extended.
On June 11, 2013, Senator Jay Rockefeller (D-WV) introduced the New Markets Tax Credit Extension Act of 2013 (S