H.R.5190 - Enterprise Zone Tax Incentives Act of 1990101st Congress (1989-1990)
|Sponsor:||Rep. Rostenkowski, Dan [D-IL-8] (Introduced 06/28/1990)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 06/28/1990 Referred to the House Committee on Ways and Means. (All Actions)|
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Summary: H.R.5190 — 101st Congress (1989-1990)All Information (Except Text)
Introduced in House (06/28/1990)
Enterprise Zone Tax Incentives Act of 1990 - Declares it to be the purpose of this Act to establish a demonstration program of providing incentives for the creation of tax enterprise zones in order to: (1) revitalize economically and physically distressed areas; (2) promote meaningful employment for zone residents; and (3) encourage individuals to reside in the zones in which they are employed.
Title I: Designation and Tax Incentives - Amends the Internal Revenue Code to provide for the designation of tax enterprise zones by the Secretary of Housing and Urban Development during calendar years 1992 through 1995.
Sets forth the eligibility criteria for such designation, including: (1) a population of not less than 4,000; (2) pervasive poverty, unemployment, and general distress; (3) a high unemployment rate; and (4) a required course of action designed to reduce the various burdens borne by employers or employees in the area.
Provides that a course of action under private entities may not be federally funded and may include: (1) a reduction of tax rates or fees; (2) an increase in public services; (3) a reduction in government paperwork requirements; (4) business community commitments to provide jobs and job training; (5) special preference to minority contractors; (6) gifts of land for the operation of neighborhood businesses; (7) pooled health insurance; (8) loans by local financial institutions for business start-ups; and (9) special preference to low-income housing projects and private activity bonds.
Allows an enterprise zone employment credit to small employers as a general business credit of ten percent of the qualified zone wages paid plus qualified zone employee health insurance costs. Allows such credit for the first five years of the employee's employment.
Makes the rehabilitation credit available for buildings in the tax enterprise zone that are at least 30 years old. Allows a shorter recovery period (depreciation) for nonresidential real property. Allows a 60-month amortization period (in lieu of depreciation) for child care facilities.
Allows the deferral of capital gain for ten years if the gain is reinvested in tax enterprise zone property.
Declares that loss on any qualified zone corporate investment shall be treated as an ordinary loss.
Sets forth limitations on the aggregate amounts of zone incentives to be allocated by the governmental official responsible for making such allocations in the tax enterprise zone.
Allows the continued issuance of qualified small issue bonds for tax enterprise zones.
Allows, for purposes of the low-income housing credit, any parts of low-income rental buildings that are used for child care centers for children of zone residents to be included in the basis for such credit. Increases such credit for buildings in enterprise zones.
Title II: Establishment of Foreign-Trade Zone in Tax Enterprise Zones - Requires enterprise zones to receive priority in the designation of foreign trade zones.
Title III: Study - Requires the Secretary of the Treasury and the Comptroller General each to report to the House Committee on Ways and Means and the Senate Committee on Finance on the effectiveness of the incentives provided by this Act in achieving its purposes.