To amend the Internal Revenue Code of 1986 to allow for the expansion of areas designated as renewal communities based on 2000 census data.

1. Adds SEC. ____. EXPANSION OF DESIGNATED RENEWAL COMMUNITY AREA BASED ON 2000 CENSUS DATA at the end of subtitle C of title V

   Adds a section

   In S. 1054 · Placed on Calendar Senate

   (c) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued after the date of enactment of this section in taxable years ending after such date.

   Inserted: SEC. ____. EXPANSION OF DESIGNATED RENEWAL COMMUNITY AREA BASED ON 2000 CENSUS DATA.

   Inserted: (a) Renewal Communities.--

   Inserted: (1) In general.--Section 1400E (relating to designation of renewal communities) is amended by adding at the end the following new subsection:

   Inserted: "(g) Expansion of Designated Areas.--

   Inserted: "(1) Expansion 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 a renewal community to include any census tract--

   Inserted: "(A) 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

   Inserted: "(B) which meets all failed population and poverty rate requirements of this section using 2000 census data.

   Inserted: "(2) Expansion to certain areas which do not meet population requirements.--

   Inserted: "(A) In general.--At the request of 1 or more local governments and the State or States in which an area described in subparagraph (B) is located, the Secretary of Housing and Urban Development may expand a designated area to include such area.

   Inserted: "(B) Area.--An area is described in this subparagraph if--

   Inserted: "(i) the area is adjacent to at least 1 other area designated as a renewal community,

   Inserted: "(ii) the area has a population less than the population required under subsection (c)(2)(C), and

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   Inserted: "(a) the area meets the requirements of subparagraphs (A) and (B) of subsection (c)(2) and subparagraph (A) of subsection (c)(3), or (b) the area contains a population of less than 100 people.

   Inserted: "(3) Applicability.--Any expansion of a renewal community under this section shall take effect as provided in subsection (b).".

   Inserted: (2) Effective Date.--The amendment made by this subsection shall take effect as if included in the amendments made by section 101 of the Community Renewal Tax Relief Act of 2000.

   Inserted: (b) Change of Top Income Rate.--

   Inserted: (1) In general.--The table in paragraph (2) of section 1(i) (relating to reductions in rates after June 30, 2001), as amended by section 102 of this Act, is amended by striking "35.0%" in the last column and inserting "37.6%".

   Inserted: (2) Effective date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2002.

   Inserted: (3) Application of EGTRRA.--The amendment made by this subsection shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 to the same extent and in the same manner as the provision of such Act to which such amendment relates.

   Original wording

   At the end of subtitle C of title V, insert the following:

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As printed