Summary: H.R.7240 — 96th Congress (1979-1980)All Information (Except Text)

There is one summary for H.R.7240. Bill summaries are authored by CRS.

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Introduced in House (05/01/1980)

Urban Jobs and Enterprise Zone Act of 1980 - Title I: Designation of Private Jobs and Enterprise Zones - Amends the Internal Revenue Code to provide for the designation of private jobs and enterprise zones by local governments, subject to the approval of the Secretary of Commerce, for purposes of extending the tax incentives provided by title II of this Act to employers and employees within designated zones. Specifies that the Secretary may only approve the designation of such zones if: (1) the area is within the jurisdiction of the designating local government; (2) the boundary of the area is continuous; (3) the area has a population of at least 4,000; and (4) the area meets specified unemployment and poverty requirements. Requires designating local governments, as a condition of the Secretary's approval, to effect a permanent real property tax reduction in their respective jurisdictions, which is not less than 20 percent of the current effective rate.

Expresses the sense of the Congress that in the case of any application for designation of an area in a private jobs and enterprise zone as a foreign trade zone: (1) the Foreign-Trade Zone Board should expedite the application process; (2) the Board, in evaluating such application, should consider not only the current economic conditions within the zone, but also future development to be expected as a result of the incentives provided by this Act; and (3) the Board should provide technical assistance to the applicants.

Title II: Tax Incentives - Amends the Internal Revenue Code to reduce social security payroll taxes in designated private jobs and enterprise zones. Reduces the rate of tax on the capital gains of individuals and corporations in such zones. Exempts gain from the sale or exchange of property used in a business in a private jobs and enterprise zone from the computation of the minimum tax. Reduces the rate of tax on the income of corporations whose workforce comprises at least 50 percent of individuals working in a private jobs and enterprise zone (qualifying businesses).

Authorizes accelerated depreciation for qualifying businesses (straight line method based on a three year useful life). Limits the basis for depreciation to $500,000.

Permits qualifying businesses to elect to use a cash method of accounting if their gross receipts do not exceed $1,500,000 in any prior taxable year.

Allows a ten year carryover of net operating losses for qualifying businesses.

Title III: Effective Dates - Specifies effective dates for provisions of this Act which apply to income tax and for provisions which apply to social security payroll taxes.