H.R. 5718 – Reading Mode

112th CONGRESS

2d Session

H. R. 5718

IN THE HOUSE OF REPRESENTATIVES

May 10, 2012

Mr. Towns introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to revise the new market tax credit rules for population census tracts with low populations.

Revision of new markets tax credit rules for tracts with low populations

(a)

In general

Paragraph (4) of section 45D(e) of the Internal Revenue Code of 1986 (relating to tracts with low population) is amended to read as follows:

(4)

Tracts with low population

A population census tract with a population of less than 2,000 shall be treated as a low-income community for purposes of this section if—

(A)

such tract is contiguous to 1 or more low-income communities (determined without regard to this paragraph), and

(B)

either—

(i)

such tract is within an empowerment zone the designation of which is in effect under section 1391, or

(ii)

any 1 or more of such contiguous low-income communities meets at least 1 of the following criteria:

(I)

The poverty rate is greater than 30 percent.

(II)

The median family income—

(aa)

in the case of a community not located within a metropolitan area, does not exceed 60 percent of statewide median family income, or

(bb)

in the case of a community located within a metropolitan area, does not exceed 60 percent of the greater of statewide median family income or the metropolitan area median family income.

(III)

The unemployment rate is not less than 1.5 times the national average unemployment rate.

For purposes of this paragraph, any population census tract which is a zero population census tract shall be treated as having the levels of economic distress which are present in the contiguous census tract.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2011.