INTRODUCTION OF A BILL TO DESIGNATE THE DISTRICT OF COLUMBIA AS AN EMPOWERMENT ZONE; Congressional Record Vol. 166, No. 41
(Extensions of Remarks - March 02, 2020)
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[Extensions of Remarks]
[Page E240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INTRODUCTION OF A BILL TO DESIGNATE THE DISTRICT OF COLUMBIA AS AN
EMPOWERMENT ZONE
______
HON. ELEANOR HOLMES NORTON
of the district of columbia
in the house of representatives
Monday, March 2, 2020
Ms. NORTON. Madam Speaker, I rise to introduce a bill that would
statutorily add the District of Columbia to the national empowerment
zone program, which provides federal tax incentives for businesses to
locate and invest in low-income areas. In 1993, Congress created the
national empowerment zone program and left it to federal agencies to
designate a certain number of low-income areas as empowerment zones.
The District was not one of the areas selected. However, in 1997,
working primarily with Republicans in Congress, I created federal tax
incentives for investment in the District by businesses and
individuals. The business incentives were similar to, but more generous
than, those available under the national empowerment zone program. I
got the D.C. incentives reauthorized regularly until 2011, when
Congress refused to extend only the D.C. program. At the same time, the
national empowerment zone program continued to be reauthorized and was
reauthorized last year through 2020. Under my bill, certain low-income
neighborhoods, particularly in Wards 5, 7 and 8, would be treated as
empowerment zones as long as the national empowerment zone program
remains in effect.
The wisdom of the bipartisan, modest, targeted business tax
incentives for D.C. has been amply and visibly demonstrated in the
economic resurgence of parts of the nation's capital where they were
applied. Among the most visible examples are the formerly rundown area
around the Verizon Center (now Capital One Arena), which is now
surrounded by offices, restaurants and vibrant nightlife, and the Penn
Quarter neighborhood, which had limited residential, commercial and
retail spaces, and is now a popular mixed-use neighborhood.
Unfortunately, the D.C. tax incentives were allowed to expire before
the poorest D.C. neighborhoods were ready to make use of them,
especially in Wards 5, 7 and 8. Withdrawing the D.C. tax incentives,
particularly after they had proven to be effective in other areas of
the city, has left the nation's capital with essentially half of a
revival, and was tragically timed just as the lower-income parts of the
District, which need the incentives most, are ready for redevelopment.
The effectiveness of these incentives for the District has been
demonstrated and their costs have been de minimis compared to the
measurable benefits they have generated in the District.
I strongly urge my colleagues to support this bill.
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