Sohodojo Advisory Board Member
The Taxman86 Speaks...
10 October 2000
<< Previous issue] [Next issue >>
Open Letter to Vice President Al Gore, Chr. Community Empowerment Board, Chr. William Roth, Senate Finance Committee, Ranking Member Mr. MOYNIHAN and all the 18 other cosponsors. What happened to the 115 Enterprise Communities?
S. 3152 "Community Renewal and New Markets Act of 2000," the $38B
upgrade of the $17B H.R. 4923 "Community Renewal and New Markets
Act" which passed the House on July 25, 2000, is something to
behold. Check out the Joint Tax Committee's Description and their
cost analyst. and
, which came out last
Then go to and check out S. 3152 in
"...Latest Major Action: 10/3/2000 Introduced in the Senate. Read
the first time. Placed on Senate Legislative Calendar under Read
the First Time. (text of measure as introduced: CR ) Title: A
bill to amend the Internal Revenue Code of 1986 to provide tax
incentives for distressed areas, and for other purposes..."
and see what the Chairman and the Ranking Member had to say about
this $38B catch all bill for all the special interest groups,
including the 1% Commuters who take Amtrak from Boston to New
York, to Washington, D.C.
We suggest that someone ought to check out the following:
- "...TITLE VII--ADDITIONAL TAX PROVISIONS
- SEC. 701. LIMITATION ON USE OF NONACCRUAL EXPERIENCE METHOD OF ACCOUNTING. [This is very interesting!]
- SEC. 702. REPEAL OF SECTION 530(d) OF THE REVENUE ACT OF
1978.[$203B relief package for high tech]
- SEC. 703. EXPANSION OF EXEMPTION FROM PERSONAL HOLDING
COMPANY TAX FOR LENDING OR FINANCE COMPANIES. [$237B Relief
package for the wealthty]
- SEC. 704. CHARITABLE CONTRIBUTION DEDUCTION FOR CERTAIN
EXPENSE INCURRED IN SUPPORT OF NATIVE ALASKAN SUBSISTENCE WHALING.
- SEC. 705. IMPOSITION OF EXCISE TAX ON PERSONS WHO ACQUIRE
STRUCTURED SETTLEMENT PAYMENTS IN FACTORING TRANSACTIONS..."
all of which cost significantly more than the $200M Enterprise
Communities Tax Incentive Amendment, or
- "...TITLE III--TAX INCENTIVES FOR URBAN AND RURAL INFRASTRUCTURE
- SEC. 301. INCREASE IN STATE CEILING ON PRIVATE ACTIVITY
- SEC. 302. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL
- SEC. 303. BROADBAND INTERNET ACCESS TAX CREDIT.
- 'SEC. 48A. BROADBAND CREDIT.
- SEC. 304. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.
- `Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak
- `SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.
- SEC. 305. CLARIFICATION OF CONTRIBUTION IN AID OF
- SEC. 306. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN
LEASEHOLD IMPROVEMENTS..." [This is the sleeper at $2B which will
allow all lessees to use 15yrs. life for improvements to leased
property vs. 39 yrs. SL] for $11B which is more than all of the
Distressed Communities Items combined.
That is the bad news, the good news is that proposed IRC Section
1397B in S. 3152, which will cover all existing Empowerment Zones
 effective upon enactment, and Renewal Communities  on
January 2002 provides for ZERO Capital Gains, subject to a
lifetime maximum of $25M per married couple [$12.5M if filing
separately] and $50M if you live together. This will be called
the Silicon Valley marriage penalty. It will also allow $25M per
child, and per C Corporation. This provision will bring the high
tech to Empowerment Zones and Renewal Communities, you
heard that here first, and make the creative ones very RICH!
Washington, D.C.'s Enterprise Zone which has it own IRC Section
1400B will be amended to cover all of Washington, D.C., as of
January 1, 2001 with NO $25M cap per family.
What if IRC Section 1397B was amended to include Enterprise
Communities, such as those in Alaska, New York, Delaware, Utah,
Florida, Tennessee, Nebraska, Iowa, North Dakota, Montana, Rhode
Island, Virginia, West Virginia, Nevada, Minnesota, and Vermont
[these are the states of the various co-sponsors of S. 3152 and of
the Chairman and Ranking Member]. Hopefully the business
communities within those Enterprise Communities, including
Bridgeport, Conn, Nashville, Tenn, or Littlerock, Ark, will let
out a big scream within days of the passage of this proposal,
which will be a few days before November 5, 2000. We look forward
to seeing this all unfold, along with the other goodies in the
$300B tax package.
Jim Schneider, LL.M.
<< Previous issue] [Next issue >>
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.
Our Privacy Statement
© 1998-2010 Sohodojo, Inc. unless otherwise stated.
"War College" of the Small Is Good Business Revolution
Website design and hosting by Sohodojo Business Services,
A Portfolio Life nanocorp
[ Translate page. ]
Archive Host Sohodojo Home
Go to the Visitor Center