Sohodojo Advisory Board Member
Jim Schneider
The Taxman86 Speaks...
26 September 2000
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We are getting closer
1. A $37B Distressed Communities Bill is coming, maybe!
After several false starts H.R. 4923 the $17B "Community Renewal and New Markets Act of 2000" is being marked up in the Senate Finance Committee tomorrow, at an estimated cost of $37B over 10 years per the Chairman's revised Mark.
Will the 115 Enterprise Communities be included, only the shadow knows, but many people including Gene Gaines and our friends Jim Salmons and Timlynn Babitsky [see their Enterprise Communities web page], and the cities of Oklahoma City, OK, East St Louis, Ill, Watsonville, CA, Memphis, TN, Wilmington DE, San Antonio TX, Las Vegas NV, Albany GA, Burlington VT, North Delta Mississippi Enterprise Community, and many, many others have been real supportive. But it has taken a very, very long time, and is long over due.
The final results of the legislation should be known within the next week or two, and some of it will be effective upon enactment date, including ZERO CAPITAL GAINS on all new investments, after enactment, in all 31 existing Empowerment Zones and may be 115 Enterprise Communities; and all new Renewal Communities, effective January 1, 2002. In essence IRC Section 1400B is being expanded to include Empowerment Zones now, and Renewal Communities as of January 1, 2002.
As proposed, any state without an existing Empowerment Zone will get priority on one of the 30 new Renewal Zones. Thus Las Vegas, NV, or Phoenix, AZ., and many other cities will get first shot at the Renewal Zones, with effective dates beginning January 1, 2002. If they are an Enterprise Community today, they will miss out on the ZERO CAPITAL GAINS, until chosen, if at all, until January 1, 2002, unless our efforts to get Enterprise Communities [Again thanks to Gene Gaines for his great efforts in this regard] is successful. States that have an Empowerment Zone or more [California and Ohio have three, Texas has two, as does Illinois] will not see a Renewal Community, sorry San Diego Enterprise Community, you had your chance.
Or worse, in some situations a city's Empowerment Zone and Enterprise Community [the Round Two Empowerment Zones were chosen from Round One Enterprise Communities, in most cases] are not the same, such as St. Louis, MO., and East St. Louis, Ill. See what we mean here.
We wonder if the Mayor of Las Vegas knows something we do not?
"...Last week it was announced that 10.64 acres of the old
railroad land [this parcel is within the Southern Nevada
Enterprise Community] would be used by Cisco Systems, Worldwide
Wireless Networks Inc. and AT&T to establish a high-tech campus
complete with a dot-com incubator..." (See story in yesterday's Las Vegas Sun.)
Do they want to make investments before January 1, 2002?
FOR IMMEDIATE RELEASE Press Release #106-467
September 25, 2000
COMMITTEE TO MARK UP COMMUNITY RENEWAL AND NEW MARKETS ACT WEDNESDAY
WASHINGTON -- Senate Finance Committee Chairman William V. Roth, Jr. (R-DE) today announced that the Committee will mark up the Community Renewal and New Markets Act of 2000 on Wednesday, September 27, 2000 at 10:00 a.m. in 215 Dirksen Senate Office Building.
Among other things, the Community Renewal and New Markets Act of 2000 would:
- Create 30 new "renewal zones" and CONFORM the tax incentives for ALL [caps are ours] of the existing and new zones in distressed areas
- Create a new markets tax credit
- Immediately increase the low-income housing tax credit cap to $1.75 per capita and institute a small state floor of $2 million.
- Immediately increase the private activity bond volume cap to the greater of $75 per capita or $225 million per state
- Create a tax credit for renovating historic homes [this is a real sleeper and expensive]
- Expand the expensing of environmental remediation expenditures to all qualifying sites ("brownfields")
- Authorize the issuance of tax credit bonds for the National Railroad Passenger Corporation ("Amtrak")
- Create a broadband internet access tax credit [this is a real sleeper, and expensive].
Jim Schneider, LL.M.
Taxman86
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