,,ii #aac? ,,congress #a/ ,session ,s4 #aheb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ah1 #bjac,mr4 ,paul 7= himself & ,mr4 ,mc,connell7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide = ! e/abli%m5t ( free m>ket ent]prise zones 9 ord] to help facilitate ! creation ( new jobs1 entrepr5eurial opportunities1 enhanc$ & r5ew$ educational opportunities1 & increas$ community involvem5t 9 bankrupt or economically di/ress$ areas4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,economic ,fre$om ,zones ,act ( #bjac4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4,sec4 #b4 ,def9itions4,,title ,i--,prohibition aga9/ a ,f$]al ,gov]nm5t bail\t ( a ,/ate1 city1 or municipality,sec4 #aja4 ,prohibition ( ,f$]al ,gov]nm5t ,bail\ts4,,title ,,ii--,designation ( ,economic ,fre$om ,zones 7,,efz7,sec4 #bja4 ,eligibility requirem5ts = ,economic ,fre$om ,zone ,/atus4,sec4 #bjb4 ,area & regional requirem5ts4,sec4 #bjc4 ,application & duration ( designation4,,title ,,iii--,f$]al tax incentives,sec4 #cja4 ,tax inc5tives relat$ to ,economic ,fre$om ,zones4,,title ,,iv--,f$]al regulatory reductions,sec4 #dja4 ,susp5sion ( c]ta9 laws & regulations4,,title ,v--,educational enhancements,sec4 #eja4 ,educational opportunity tax cr$it4,sec4 #ejb4 ,s*ool *oice ?r\gh portability4,sec4 #ejc4 ,special ,economic ,fre$om ,zone visas4,sec4 #ejd4 ,economic ,fre$om ,zone educational sav+s acc\nts4,,title ,,vi--,community assi/ance & rebuilding,sec4 #fja4 ,nonapplication ( ,davis-,bacon4,sec4 #fjb4 ,economic ,fre$om ,zone *>itable tax cr$it4,,title ,,vii--,/ate & community policy recommendations,sec4 #gja4 ,s5se ( ! ,s5ate conc]n+ policy recomm5dations4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,city ,! t]m city means any unit ( g5]al local gov]nm5t t is classifi$ z a municipality by ! ,unit$ ,/ates ,c5sus ,bureau1 or is a t[n or t[n%ip z det]m9$ jo9tly by ! ,director ( ! ,(fice ( ,managem5t & ,budget & ! ,secret>y ( ! ,treasury4 7#b7 ,c\nty ,! t]m ,c\nty means any unit ( local g5]al gov]nm5t t is classifi$ z a c\nty by ! ,unit$ ,/ates ,c5sus ,bureau4 7#c7 ,eligible entity ,! t]m eligible entity means a ,/ate1 municipality1 zip code1 or rural area4 7#d7 ,municipality ,! t]m municipality has ! mean+ giv5 t t]m 9 section #aja7dj7 ( title #aa1 ,unit$ ,/ates ,code4 7#e7 ,rural area ,! t]m rural area means any area n 9 an urbaniz$ area1 z t t]m is def9$ by ! ,c5sus ,bureau4 7#f7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,treasury4 7#g7 ,zip code ,! t]m zip code means any area or region associat$ ) or cov]$ by a ,unit$ ,/ates ,po/al zip code ( n less ?an #e digits4 ,i ,prohibition aga9/ a ,f$]al ,gov]nm5t bail\t ( a ,/ate1 city1 or municipality #aja4 ,prohibition ( ,f$]al ,gov]nm5t ,bail\ts 7a7 ,def9itions ,9 ?is section-- 7#a7 ! t]m cr$it rat+ has ! mean+ giv5 t t]m 9 section #c7;a77#fj7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#fj772 7#b7 ! t]m cr$it rat+ ag5cy has ! mean+ giv5 t t]m 9 section #c7;a77#fa7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#fa772 7#c7 ! t]m ,f$]al assi/ance means ! use ( any advances f ! ,f$]al ,res]ve cr$it facility or disc\nt w9d[ t is n "p ( a program or facility ) broad-bas$ eligibility "u section #ac7c77;,a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdc7c77;,a771 ,f$]al ,deposit ,insurance ,corporation insurance1 or gu>antees = ! purpose (-- 7,a7 mak+ a loan to1 or pur*as+ any int]e/ or debt obligation (1 a municipality2 7,b7 pur*as+ ! assets ( a municipality2 7,c7 gu>antee+ a loan or debt issuance ( a municipality2 or 7,d7 ent]+ into an assi/ance arrangem5t1 includ+ a grant program1 ) an eligible entity2 7#d7 ! t]m insolv5t means1 ) respect to an eligible entity1 a f9ancial condition su* t ! eligible entity-- 7,a7 has any debt t has be5 giv5 a cr$it rat+ l[] ?an a ,b by a nationally recogniz$ /ati/ical rat+ organization or a cr$it rat+ ag5cy2 7,b7 is n pay+ its debts z !y become due1 unless su* debts are ! subject ( a bona fide dispute2 or 7,c7 is unable to pay its debts z !y become due2 & 7#e7 ! t]m nationally recogniz$ /ati/ical rat+ organization has ! mean+ giv5 t t]m 9 section #c7;a77#fb7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c7a77#fb774 7b7 ,prohibition ( ,f$]al ,gov]nm5t ,bail\ts 7#a7 ,prohibition ( ,f$]al assi/ance ,not)/&+ any o!r provision ( law1 no ,f$]al assi/ance may be provid$ to an eligible entity 7o!r ?an ! assi/ance provid$ = 9 ?is ,act = an area t is designat$ z an ,economic ,free ,zone74 7#b7 ,prohibition ( f9ancial assi/ance to bankrupt or insolv5t eligible entities ,except z provid$ 9 p>agraph 7#a71 ! ,f$]al ,gov]nm5t may n provide f9ancial assi/ance-- 7,a7 to a municipality t is a debtor "u *apt] #i ( title #aa1 ,unit$ ,/ates ,code2 or 7,b7 to ,/ate or municipality t is insolv5t4 ,,ii ,designation ( ,economic ,fre$om ,zones 7,,efz7 #bja4 ,eligibility requirem5ts = ,economic ,fre$om ,zone ,/atus 7a7 ,9 g5]al ,9 ord] to be eligible = designation z an ,economic ,fre$om ,zone by ! ,secret>y1 an eligible entity %all meet "o or m ( ! foll[+ requirem5ts 79 ord] ( priority7 & ! requirem5ts ( section #bjb3 7#a7 ,eligible *apt] #i debtor ,an eligible entity t satisfies ! requirem5ts "u section #aji7;c7 ( title #aa1 ,unit$ ,/ates ,code4 7#b7 ,eligible entity at risk ( insolv5cy 7,a7 ,9 g5]al ,an eligible entity t is at risk ( insolv5cy1 z describ$ 9 subp>agraph 7,b74 7,b7 ,requirem5ts ,an eligible entity is at risk ( insolv5cy if-- 7i7 an indep5d5t actu>ial firm t has be5 engag$ by ! eligible entity & t does n h a conflict ( int]e/ ) ! eligible entity1 includ+ any previ\s relation%ip ) ! eligible entity1 z det]m9$ by ! ,secret>y-- 7,i7 det]m9es t ! eligible entity is insolv5t 7z def9$ 9 section #aja7;a77#d772 & 7,,ii7 submits its analysis reg>d+ ! insolv5cy ( ! eligible entity to ! ,secret>y2 & 7ii7 ! ,secret>y has review$ & approv$ ! det]m9ation ( insolv5cy by ! actu>ial firm4 7#c7 ,l[ economic & high pov]ty zones 7,a7 ,9 g5]al ,an eligible entity t is designat$ z a l[ economic or high pov]ty zone "u subp>agraph 7,b74 7,b7 ,designation ,! ,secret>y1 aft] review+ support+ data z deem$ appropriate1 %all designate an eligible entity z a l[ economic or high pov]ty area if-- 7i7 ! ,/ate or local gov]nm5t ) jurisdiction ov] ! entity c]tifies t-- 7,i7 ! entity is "o ( p]vasive pov]ty1 unemploym5t1 & g5]al di/ress2 7,,ii7 ! av]age rate ( unemploym5t )9 su* entity dur+ ! mo/ rec5t #c-mon? p]iod = :i* data is available is at lea/ #a4e times ! national unemploym5t rate = ! p]iod involv$2 7,,iii7 dur+ ! mo/ rec5t #c-mon? p]iod1 at lea/ #cj p]c5t ( ! area resid5ts h incomes bel[ ! national pov]ty level2 or 7,,iv7 at lea/ #gj p]c5t ( ! are resid5ts h incomes bel[ #hj p]c5t ( ! m$ian income ( h\seholds )9 ! jurisdiction ( ! local gov]nm5t 7z det]m9$ 9 ! same mann] z "u section #aai7;b77#b7 ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd72 & 7ii7 ! ,secret>y det]m9es t su* a designation is appropriate4 7#d7 ,special high pov]ty requirem5t = designation ,an eligible entity %all be designat$ z a l[ economic or high pov]ty zone if ! ,secret>y det]m9es t-- 7,a7 ! ,/ate 9 :i* ! entity is locat$ )9 "o ( ! #aj mo/ impov]i%$ ,/ates1 z det]m9$ us+ ,unit$ ,/ates ,c5sus ,bureau data2 7,b7 ! entity is "o ( p]vasive pov]ty1 unemploym5t1 & g5]al di/ress2 7,c7 ! av]age rate ( unemploym5t )9 su* entity dur+ ! mo/ rec5t #c-mon? p]iod = :i* data is available is at lea/ #a4be times ! national unemploym5t rate = ! p]iod involv$2 7,d7 dur+ ! mo/ rec5t #c-mon? p]iod1 at lea/ #be p]c5t ( ! area resid5ts h income bel[ ! national pov]ty level2 or 7,e7 at lea/ #fe p]c5t ( ! resid5ts h incomes bel[ #hj p]c5t ( ! m$ian income ( h\seholds )9 ! jurisdiction ( ! local gov]nm5t 7z det]m9$ 9 ! same mann] z "u section #aai7;b77#b7 ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd74 7b7 ,refusal ,to grant /atus ,! ,secret>y may refuse to designate an eligible entity z an ,economic ,fre$om ,zone if ! ,secret>y det]m9es t any requirem5t "u ?is ,act1 includ+ any requirem5t "u subsection 7a77#b77;,b71 has n be5 satisfi$4 #bjb4 ,area & regional requirem5ts 7a7 ,9 g5]al ,to be designat$ z an ,economic ,fre$om ,zone by ! ,secret>y1 an eligible entity %all-- 7#a7 meet "o or m ( ! requirem5ts "u section #bja2 & 7#b7 be an entity describ$ 9 subsection 7b74 7b7 ,entity describ$ ,an entity is describ$ 9 ?is subsection if su* entity-- 7#a7 is a metropolitan /ati/ical area 7z def9$ by ! ,director ( ! ,(fice ( ,managem5t & ,budget7 t-- 7,a7 is locat$ )9 ! jurisdiction ( a local gov]nm5t2 & 7,b7 has a cont9u\s b\nd>y2 7#b7 is a non-metropolitan /ati/ical area 7z def9$ by ! ,director ( ! ,(fice ( ,managem5t & ,budget7 if 7bas$ on ! foll[+ ord] ( priority7 su* area-- 7,a7 is an (ficial c\nty geographical area 9 any ,/ate t meets any ( ! eligibility requirem5ts ( section #bja2 7,b7 is an (ficial city geographical area 9 any ,/ate t meets any ( ! eligibility requirem5ts ( section #bja2 or 7,c7 is an (ficial zip code geographical area 9 any ,/ate t meets any ( ! eligibility requirem5ts ( section #bja2 or 7#c7 is a zip code area t-- 7,a7 is )9 a metropolitan /ati/ical area2 & 7,b7 meets o!r eligibility crit]ia z det]m9$ by ! ,secret>y aft] consultation ) ! ,unit$ ,/ates ,c5sus ,bureau1 ! ,bureau ( ,labor ,/ati/ics1 & ! ,(fice ( ,managem5t & ,budget4 #bjc4 ,application & duration ( designation 7a7 ,application ,! ,secret>y %all develop proc$ures to enable an eligible entity to submit to ! ,secret>y an application = designation z an ,economic ,fre$om ,zone "u ?is title4 7b7 ,duration ,! designation by ! ,secret>y ( an eligible entity z a ,economic ,fre$om ,zone %all be = a p]iod ( #aj ye>s4 ,,iii ,f$]al tax inc5tives #cja4 ,tax inc5tives relat$ to ,economic ,fre$om ,zones 7a7 ,9 g5]al ,*apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new sub*apt]3 ,z ,economic ,fre$om ,zones ,"p ,i--,tax incentives,part ,,ii--,def9itions ,i ,tax inc5tives ,sec4 #adjj,v-#a4 ,economic ,fre$om ,zone individual flat tax4,sec4 #adjj,v-#b4 ,economic ,fre$om ,zone corporate flat tax4,sec4 #adjj,v-#c4 ,z]o p]c5t capital ga9s rate4,sec4 #adjj,v-#d4 ,r$uc$ payroll taxes4,sec4 #adjj,v-#e4 ,increase 9 exp5s+ "u section #agi4 #adjj,v-#a4 ,economic ,fre$om ,zone individual flat tax 7a7 ,9 g5]al ,9 ! case ( any individual ^: pr9cipal resid5ce 7)9 ! mean+ ( section #aba7 is locat$ 9 an ,economic ,fre$om ,zone = ! taxable ye>1 9 lieu ( ! tax impos$ by section #a1 !re %all be impos$ a tax equal to #e p]c5t ( ! taxable income ( su* taxpay]4 ,= purposes ( ?is title1 ! tax impos$ by ! prec$+ s5t5ce %all be treat$ z a tax impos$ by section #a4 7b7 ,jo9t returns ,9 ! case ( a jo9t return "u section #fjac1 subsection 7a7 %all apply s long z ei!r sp\se has a pr9cipal resid5ce 7)9 ! mean+ ( section #aba7 9 an ,economic ,fre$om ,zone = ! taxable ye>4 7c7 ,alt]native m9imum tax n ,to apply ,! tax impos$ by section #ee %all n apply to any taxpay] to :om subsection 7a7 applies4 #adjj,v-#b4 ,economic ,fre$om ,zone corporate flat tax 7a7 ,9 g5]al ,9 ! case ( any corporation locat$ 9 an ,economic ,fre$om ,zone = ! taxable ye>1 9 lieu ( ! tax impos$ by section #aa1 !re %all be impos$ a tax equal to #e p]c5t ( ! taxable income ( su* corporation4 ,= purposes ( ?is title1 ! tax impos$ by ! prec$+ s5t5ce %all be treat$ z a tax impos$ by section #aa4 7b7 ,limitation ,subsection 7a7 %all n apply to any corporation = any taxable ye> if ! adju/$ gross income ( su* corporation = su* taxable ye> exce$s #ejj1jjj1jjj4 7c7 ,locat$ ,= purposes ( ?is section1 a corporation %all be consid]$ to be locat$ 9 an ,economic ,fre$om ,zone if-- 7#a7 n less ?an #aj p]c5t ( ! total gross income ( su* corporation is d]iv$ f ! active conduct ( a trade or bus9ess )9 an ,economic ,fre$om ,zone1 or 7#b7 at lea/ #be p]c5t ( ! employees ( su* corporation are resid5ts ( an ,economic ,fre$om ,zone4 7d7 ,alt]native m9imum tax n ,to apply ,! tax impos$ by section #ee %all n apply to any taxpay] to :om subsection 7a7 applies4 #adjj,v-#c4 ,z]o p]c5t capital ga9s rate 7a7 ,exclusion ,gross income %all n include qualifi$ capital ga9 f ! sale or ex*ange (-- 7#a7 any ,economic ,fre$om ,zone asset held = m ?an #e ye>s1 7#b7 any real prop]ty locat$ 9 an ,economic ,fre$om ,zone4 7b7 ,economic ,fre$om ,zone asset ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m ,economic ,fre$om ,zone asset means-- 7,a7 any ,economic ,fre$om ,zone bus9ess /ock1 7,b7 any ,economic ,fre$om ,zone p>tn]%ip int]e/1 & 7,c7 any ,economic ,fre$om ,zone bus9ess prop]ty4 7#b7 ,economic ,fre$om ,zone bus9ess /ock 7,a7 ,9 g5]al ,! t]m ,economic ,fre$om ,zone bus9ess /ock means any /ock 9 a dome/ic corporation if-- 7i7 su* /ock is acquir$ by ! taxpay]1 be=e ! date on :i* su* corporation no long] qualifies z an ,economic ,fre$om ,zone bus9ess due to ! lapse ( #a or m ,economic ,fre$om ,zones1 at its orig9al issue 7directly or ?r\gh an und]writ]7 solely 9 ex*ange = ca%1 7ii7 z ( ! "t su* /ock 0 issu$1 su* corporation 0 an ,economic ,fre$om ,zone bus9ess 7or1 9 ! case ( a new corporation1 su* corporation 0 be+ organiz$ = purposes ( be+ an ,economic ,fre$om ,zone bus9ess71 & 7iii7 dur+ sub/antially all ( ! taxpay]'s hold+ p]iod = su* /ock1 su* corporation qualifi$ z an ,economic ,fre$om ,zone bus9ess4 7,b7 ,r$emptions ,a rule simil> to ! rule ( section #abjb7;c77#c7 %all apply = purposes ( ?is p>agraph4 7#c7 ,economic ,fre$om ,zone p>tn]%ip int]e/ ,! t]m ,economic ,fre$om ,zone p>tn]%ip int]e/ means any capital or pr(its int]e/ 9 a dome/ic p>tn]%ip if-- 7,a7 su* int]e/ is acquir$ by ! taxpay]1 be=e ! date on :i* su* p>tn]%ip no long] qualifies z an ,economic ,fre$om ,zone bus9ess due to ! lapse ( #a or m ,economic ,fre$om ,zones1 f ! p>tn]%ip solely 9 ex*ange = ca%1 7,b7 z ( ! "t su* int]e/ 0 acquir$1 su* p>tn]%ip 0 an ,economic ,fre$om ,zone bus9ess 7or1 9 ! case ( a new p>tn]%ip1 su* p>tn]%ip 0 be+ organiz$ = purposes ( be+ an ,economic ,fre$om ,zone bus9ess71 & 7,c7 dur+ sub/antially all ( ! taxpay]'s hold+ p]iod = su* int]e/1 su* p>tn]%ip qualifi$ z an ,economic ,fre$om ,zone bus9ess4 ,a rule simil> to ! rule ( p>agraph 7#b77;,b7 %all apply = purposes ( ?is p>agraph4 7#d7 ,economic ,fre$om ,zone bus9ess prop]ty 7,a7 ,9 g5]al ,! t]m ,economic ,fre$om ,zone bus9ess prop]ty means tangible prop]ty if-- 7i7 su* prop]ty 0 acquir$ by ! taxpay] by pur*ase 7z def9$ 9 section #agi7;d77#b77 aft] ! date on su* taxpay] qualifies z an ,economic ,fre$om ,zone bus9ess & be=e ! date on :i* su* taxpay] no long] qualifies z an ,economic ,fre$om ,zone bus9ess due to ! lapse ( #a or m ,economic ,fre$om ,zones1 7ii7 ! orig9al use ( su* prop]ty 9 ! ,economic ,fre$om ,zone comm5ces ) ! taxpay]1 & 7iii7 dur+ sub/antially all ( ! taxpay]'s hold+ p]iod = su* prop]ty1 sub/antially all ( ! use ( su* prop]ty 0 9 an ,economic ,fre$om ,zone bus9ess ( ! taxpay]4 7,b7 ,special rule = build+s :i* are sub/antially improv$ 7i7 ,9 g5]al ,! requirem5ts ( clauses 7i7 & 7ii7 ( subp>agraph 7,a7 %all be treat$ z met ) respect to-- 7,i7 prop]ty :i* is sub/antially improv$ by ! taxpay] be=e ! date on :i* su* taxpay] no long] qualifies z an ,economic ,fre$om ,zone bus9ess due to ! lapse ( #a or m ,economic ,fre$om ,zones1 & 7,,ii7 any l& on :i* su* prop]ty is locat$4 7ii7 ,sub/antial improvem5t ,= purposes ( clause 7i71 prop]ty %all be treat$ z sub/antially improv$ by ! taxpay] only if1 dur+ any #bd-mon? p]iod beg9n+ aft] ! date on :i* ! taxpay] qualifies z an ,economic ,fre$om ,zone bus9ess additions to basis ) respect to su* prop]ty 9 ! h&s ( ! taxpay] exce$ ! great] (-- 7,i7 an am\nt equal to ! adju/$ basis ( su* prop]ty at ! beg9n+ ( su* #bd-mon? p]iod 9 ! h&s ( ! taxpay]1 or 7,,ii7 #e1jjj4 7#e7 ,treatm5t ( ,economic ,fre$om ,zone t]m9ation ,except z o!rwise provid$ 9 ?is subsection1 ! t]m9ation ( ! designation ( ! ,economic ,fre$om ,zone %all be disreg>d$ = purposes ( det]m9+ :e!r any prop]ty is an ,economic ,fre$om ,zone asset4 7#f7 ,treatm5t ( subsequ5t pur*as]s1 etc ,! t]m ,economic ,fre$om ,zone asset includes any prop]ty :i* w\ld be an ,economic ,fre$om ,zone asset b = p>agraph 7#b77;,a77i71 7#c77;,a71 or 7#d77;,a77i7 or 7ii7 9 ! h&s ( ! taxpay] if su* prop]ty 0 an ,economic ,fre$om ,zone asset 9 ! h&s ( a prior hold]4 7#g7 #e-,ye> safe h>bor ,if any prop]ty ceases to be an ,economic ,fre$om ,zone asset by reason ( p>agraph 7#b77;,a77iii71 7#c77;,c71 or 7#d77;,a77iii7 aft] ! #e-ye> p]iod beg9n+ on ! date ! taxpay] acquir$ su* prop]ty1 su* prop]ty %all cont9ue to be treat$ z meet+ ! requirem5ts ( su* p>agraph2 except t ! am\nt ( ga9 to :i* subsection 7a7 applies on any sale or ex*ange ( su* prop]ty %all n exce$ ! am\nt :i* w\ld be qualifi$ capital ga9 _h su* prop]ty be5 sold on ! date ( su* cessation4 7c7 ,economic ,fre$om ,zone bus9ess ,= purposes ( ?is section1 ! t]m ,economic ,fre$om ,zone bus9ess means any ent]prise zone bus9ess 7z def9$ 9 section #acig;,c71 det]m9$-- 7#a7 aft] ! application ( section #adjj7;e71 7#b7 by sub/itut+ #hj p]c5t = #ej p]c5t 9 subsections 7b77#b7 & 7c77#a7 ( section #acig;,c1 & 7#c7 by treat+ only areas t are ,economic ,fre$om ,zones z an emp[]m5t zone or ent]prise community4 7d7 ,o!r def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,qualifi$ capital ga9 ,except z o!rwise provid$ 9 ?is subsection1 ! t]m qualifi$ capital ga9 means any ga9 recogniz$ on ! sale or ex*ange (-- 7,a7 a capital asset1 or 7,b7 prop]ty us$ 9 ! trade or bus9ess 7z def9$ 9 section #abca7;b774 7#b7 ,c]ta9 ga9 n qualifi$ ,! t]m qualifi$ capital ga9 %all n include any ga9 attributable to p]iods be=e ! date on :i* ! a bus9ess qualifies z an ,economic ,fre$om ,zone bus9ess or aft] ! date t is #d ye>s aft] ! date on :i* su* bus9ess no long] qualifies z an ,economic ,fre$om ,zone bus9ess due to ! lapse ( #a or m ,economic ,fre$om ,zones4 7#c7 ,c]ta9 ga9 n qualifi$ ,! t]m qualifi$ capital ga9 %all n include any ga9 :i* w\ld be treat$ z ord9>y income "u section #abde or "u section #abej if section #abej appli$ to all depreciation r ?an ! additional depreciation4 7#d7 ,intangibles n integral "p ( ,economic ,fre$om ,zone bus9ess ,9 ! case ( ga9 describ$ 9 subsection 7a77#a71 ! t]m qualifi$ capital ga9 %all n include any ga9 :i* is attributable to an intangible asset :i* is n an integral "p ( an ,economic ,fre$om ,zone bus9ess4 7#e7 ,relat$ p>ty transactions ,! t]m qualifi$ capital ga9 %all n include any ga9 attributable1 directly or indirectly1 9 :ole or 9 "p1 to a transaction ) a relat$ p]son4 ,= purposes ( ?is p>agraph1 p]sons are relat$ to ea* o!r if su* p]sons are describ$ 9 section #bfg7;b7 or #gjg7;b77#a74 7e7 ,sales & ex*anges ( int]e/s 9 p>tn]%ips & s corporations :i* are ,economic ,fre$om ,zone bus9esses ,9 ! case ( ! sale or ex*ange ( an int]e/ 9 a p>tn]%ip1 or ( /ock 9 an ,s corporation1 :i* 0 an ,economic ,fre$om ,zone bus9ess dur+ sub/antially all ( ! p]iod ! taxpay] held su* int]e/ or /ock1 ! am\nt ( qualifi$ capital ga9 %all be det]m9$ )\t reg>d to-- 7#a7 any ga9 :i* is attributable to an intangible asset :i* is n an integral "p ( an ,economic ,fre$om ,zone bus9ess1 & 7#b7 any ga9 attributable to p]iods be=e ! date on :i* ! a bus9ess qualifies z an ,economic ,fre$om ,zone bus9ess or aft] ! date t is #d ye>s aft] ! date on :i* su* bus9ess no long] qualifies z an ,economic ,fre$om ,zone bus9ess due to ! lapse ( #a or m ,economic ,fre$om ,zones4 #adjj,v-#d4 ,r$uc$ payroll taxes 7a7 ,9 g5]al 7#a7 ,employees ,! rate ( tax "u #caja7;a7 7includ+ = purposes ( det]m9+ ! applicable p]c5tage "u sections #cbja7;a7 & #cbaa7;a77#a77 %all be #d4b p]c5t = any remun]ation receiv$ dur+ any p]iod 9 :i* ! individual's pr9cipal resid5ce 7)9 ! mean+ ( section #aba7 is locat$ 9 an ,economic ,fre$om ,zone4 7#b7 ,employ]s 7,a7 ,9 g5]al ,! rate ( tax "u section #caaa7;a7 7includ+ = purposes ( det]m9+ ! applicable p]c5tage "u sections #cbba7;a77 %all be #d4b p]c5t ) respect to remun]ation paid = qualifi$ s]vices dur+ any p]iod 9 :i* ! employ] is locat$ 9 an ,economic ,fre$om ,zone4 7,b7 ,qualifi$ s]vices ,= purposes ( ?is section1 ! t]m qualifi$ s]vices means s]vices p]=m$-- 7i7 9 a trade or bus9ess ( a qualifi$ employ]1 or 7ii7 9 ! case ( a qualifi$ employ] exempt f tax "u section #eja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 9 fur!rance ( ! activities relat$ to ! purpose or function con/itut+ ! basis ( ! employ]'s exemption "u section #eja ( su* ,code4 7,c7 ,location ( employ] ,= purposes ( ?is p>agraph1 ! location ( an employ] %all be det]m9$ 9 ! same mann] z "u section #adjj,v-#b7;c74 7#c7 ,self-employ$ individuals ,! rate ( tax "u section #adja7;a7 %all be #h4dj p]c5t any taxable ye> 9 :i* su* individual 0 locat$ 7det]m9$ "u section #adjj,v-#b7;c7 z if su* individual 7 a corporation7 9 an ,economic ,fre$om ,zone4 7b7 ,transf]s ( ,funds - 7#a7 ,transf]s to f$]al old-age & survivors insurance tru/ fund ,!re are h]eby appropriat$ to ! ,f$]al ,old-,age & ,survivors ,tru/ ,fund & ! ,f$]al ,disability ,insurance ,tru/ ,fund e/abli%$ "u section #bja ( ! ,social ,security ,act 7#db ,u4,s4,c4 #dja7 am\nts equal to ! r$uction 9 rev5ues to ! ,treasury by reason ( ! application ( subsection 7a74 ,am\nts appropriat$ by ! prec$+ s5t5ce %all be transf]r$ f ! g5]al fund at su* times & 9 su* mann] z to replicate to ! ext5t possible ! transf]s :i* w\ld h occurr$ to su* ,tru/ ,fund _h su* am5dm5ts n be5 enact$4 7#b7 ,transf]s to social security equival5t b5efit acc\nt ,!re are h]eby appropriat$ to ! ,social ,security ,equival5t ,b5efit ,acc\nt e/abli%$ "u section #ae;,a7a7 ( ! ,railroad ,retirem5t ,act ( #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 am\nts equal to ! r$uction 9 rev5ues to ! ,treasury by reason ( ! application ( p>agraphs 7#a7 & 7#b7 ( subsection 7a74 ,am\nts appropriat$ by ! prec$+ s5t5ce %all be transf]r$ f ! g5]al fund at su* times & 9 su* mann] z to replicate to ! ext5t possible ! transf]s :i* w\ld h occurr$ to su* ,acc\nt _h su* am5dm5ts n be5 enact$4 7#c7 ,coord9ation ) o!r f$]al laws ,= purposes ( apply+ any provision ( ,f$]al law o!r ?an ! provisions ( ! ,int]nal ,rev5ue ,code ( #aihf1 ! rate ( tax 9 effect "u section #caja7;a7 %all be det]m9$ )\t reg>d to ! r$uction 9 su* rate "u ?is section4 #adjj,v-#e4 ,increase 9 exp5s+ "u section #agi 7a7 ,9 g5]al ,9 ! case ( an ,economic ,fre$om ,zone bus9ess1 = purposes ( section #agi-- 7#a7 ! limitation "u section #agi7;b77#a7 %all be increas$ by ! less] (-- 7,a7 #bjj p]c5t ( ! am\nt 9 effect "u su* section 7det]m9$ )\t reg>d to ?is section71 or 7,b7 ! co/ ( section #agi prop]ty :i* is ,economic ,fre$om ,zone bus9ess prop]ty plac$ 9 s]vice dur+ ! taxable ye>1 & 7#b7 ! am\nt tak5 into acc\nt "u section #agi7;b77#b7 ) respect to any section #agi prop]ty :i* is ,economic ,fre$om ,zone bus9ess prop]ty %all be #ej p]c5t ( ! co/ !re(4 7b7 ,economic ,fre$om zone bus9ess prop]ty ,= purposes ( ?is section1 ! t]m ,economic ,fre$om ,zone bus9ess prop]ty has ! mean+ giv5 su* t]m "u section #adjj,v-#c7;b77#d71 except t = purposes ( subp>agraph 7,a77ii7 !re(1 if prop]ty is sold & leas$ back by ! taxpay] )9 #c mon?s aft] ! date su* prop]ty 0 orig9ally plac$ 9 s]vice1 su* prop]ty %all be treat$ z orig9ally plac$ 9 s]vice n e>li] ?an ! date on :i* su* prop]ty is us$ "u ! leaseback 7c7 ,recapture ,rules simil> to ! rules "u section #agi7;d77#aj7 %all apply ) respect to any qualifi$ zone prop]ty :i* ceases to be us$ 9 an emp[]m5t zone by an ent]prise zone bus9ess4 ,,ii ,def9itions ,sec4 #adjj,v-#f4 ,economic ,fre$om ,zone4 #adjj,v-#f4 ,economic ,fre$om ,zone ,= purposes ( ?is sub*apt]1 ! t]m ,economic ,fre$om ,zone means any area :i* is an ,economic ,fre$om ,zone "u title ,,ii ( ! ,economic ,fre$om ,zone ,act4 4 7b7 ,cl]ical am5dm5t ,! table ( sub*apt]s = *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to sub*apt] ,y ! foll[+ new item3 ,sub*apt] ,z--,economic ,fre$om ,zones 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,iv ,f$]al regulatory r$uctions #dja4 ,susp5sion ( c]ta9 laws & regulations 7a7 ,environm5tal ,protection ,ag5cy ,= ea* area designat$ z an ,economic ,fre$om ,zone "u ?is ,act1 ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy %all n en=ce1 ) respect to t ,economic ,fre$om ,zone1 & ! ,economic ,fre$om ,zone %all be exempt f compliance )-- 7#a7 "p ,d ( ! ,clean ,air ,act 7#db ,u4,s4,c4 #geja et seq47 7includ+ any regulations promulgat$ "u t "p72 7#b7 section #djb ( ! ,f$]al ,wat] ,pollution ,control ,act 7#cc ,u4,s4,c4 #acdb72 7#c7 sections #aci1 #afh1 #afi1 #cbf1 & #cbg ( title #bc1 ,unit$ ,/ates ,code2 7#d7 section #cjd ( title #di1 ,unit$ ,/ates ,code2 & 7#e7 sections #acae ?r\gh #acbj ( ,public ,law #aab-ada 7#abf ,/at4 #edi74 7b7 ,dep>tm5t ( ! ,int]ior 7#a7 ,wild & sc5ic riv]s ,= ea* area designat$ z an ,economic ,fre$om ,zone "u ?is ,act1 ! ,secret>y ( ! ,int]ior %all n en=ce1 ) respect to t ,economic ,fre$om ,zone1 & ! ,economic ,fre$om ,zone %all be exempt f compliance ) ! ,wild & ,sc5ic ,riv]s ,act 7#af ,u4,s4,c4 #abga et seq474 7#b7 ,national h]itage areas ,= ! p]iod beg9n+ on ! date ( enactm5t ( ?is ,act & end+ on ! date on :i* an area is remov$ f designation z an ,economic ,fre$om ,zone1 any ,national ,h]itage ,area locat$ )9 t ,economic ,fre$om ,zone %all n be consid]$ to be a ,national ,h]itage ,area & any applicable ,f$]al law 7includ+ regulations7 relat+ to t ,national ,h]itage ,area %all n apply4 ,v ,educational enhancem5ts #eja4 ,educational opportunity tax cr$it 7a7 ,9 g5]al ,subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #be;,d ! foll[+ new section3 #be;,e4 ,cr$it = qualifi$ elem5t>y & second>y education exp5ses 7a7 ,9 g5]al ,9 ! case ( an individual1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to ! qualifi$ elem5t>y & second>y education exp5ses ( an eligible /ud5t4 7b7 ,limitation ,! am\nt tak5 into acc\nt "u subsection 7a7 ) respect to any /ud5t = any taxable ye> %all n exce$ #e1jjj4 7c7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,qualifi$ elem5t>y & second>y education exp5ses ,! t]m qualifi$ elem5t>y & second>y education exp5ses has ! mean+ giv5 su* t]m "u section #ecj7;b77#c74 7#b7 ,eligible /ud5t ,! t]m eligible /ud5t means any /ud5t :o-- 7,a7 is enroll$ 91 or att5ds1 any public1 private1 or religi\s s*ool 7z def9$ 9 section #ecj7;b77#c77;,b771 & 7,b7 ^: pr9cipal resid5ce 7)9 ! mean+ ( section #abc7 is locat$ 9 an ,economic ,fre$om ,zone4 7#c7 ,economic ,fre$om ,zone ,! t]m ,economic ,fre$om ,zone means any area :i* is an ,economic ,fre$om ,zone "u title ,,ii ( ! ,economic ,fre$om ,zone ,act4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #be;,d ! foll[+ new item3 ,sec4 #be;,e4 ,cr$it = qualifi$ elem5t>y & second>y education exp5ses4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to exp5ditures made 9 taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ejb4 ,s*ool *oice ?r\gh portability 7a7 ,9 g5]al ,subp>t #b ( "p ,a ( title ,i ( ! ,elem5t>y & ,second>y ,education ,act ( #aife 7#bj ,u4,s4,c4 #fcca et seq47 is am5d$ by add+ at ! end ! foll[+3 #aabh4 ,s*ool *oice ?r\gh portability 7a7 ,au?orization 7#a7 ,9 g5]al ,not)/&+ sections #aabd1 #aabd;,a1 & #aabe & any o!r provision ( law1 & to ! ext5t p]mitt$ "u ,/ate law1 a ,/ate educational ag5cy may allocate grant funds "u ?is subp>t among ! local educational ag5cies 9 ! ,/ate bas$ on ! =mula describ$ 9 p>agraph 7#b74 7#b7 ,=mula ,a ,/ate educational ag5cy may allocate grant funds "u ?is subp>t = a fiscal ye> among ! local educational ag5cies 9 ! ,/ate 9 proportion to ! numb] ( eligible *ildr5 enroll$ 9 public s*ools s]v$ by ! local educational ag5cy & enroll$ 9 ,/ate-accr$it$ private s*ools )9 ! local educational ag5cy's geographic jurisdiction1 = ! mo/ rec5t fiscal ye> = :i* satisfactory data are available1 comp>$ to ! numb] ( su* *ildr5 9 all su* local educational ag5cies = t fiscal ye>4 7b7 ,eligible *ild 7#a7 ,9 g5]al ,9 ?is section1 ! t]m eligible *ild means a *ild-- 7,a7 f a family ) an income bel[ ! pov]ty level1 on ! basis ( ! mo/ rec5t satisfactory data publi%$ by ! ,dep>tm5t ( ,comm]ce2 & 7,b7 :o resides 9 an ,economic ,fre$om ,zone z designat$ "u title ,,ii ( ! ,economic ,fre$om ,zones ,act ( #bjac4 7#b7 ,crit]ia ( pov]ty ,9 det]m9+ ! families ) incomes bel[ ! pov]ty level = ! purposes ( p>agraph 7#b71 a ,/ate educational ag5cy %all use ! crit]ia ( pov]ty us$ by ! ,c5sus ,bureau 9 compil+ ! mo/ rec5t dec5nial c5sus4 7#c7 ,id5tification ( eligible *ildr5 ,on an annual basis1 on a date to be det]m9$ by ! ,/ate educational ag5cy1 ea* local educational ag5cy t receives grant fund+ 9 accordance ) subsection 7a7 %all in=m ! ,/ate educational ag5cy ( ! numb] ( eligible *ildr5 enroll$ 9 public s*ools s]v$ by ! local educational ag5cy & enroll$ 9 ,/ate-accr$it$ private s*ools )9 ! local educational ag5cy's geographic jurisdiction4 7c7 ,di/ribution to s*ools ,ea* local educational ag5cy t receives grant fund+ "u subsection 7a7 %all di/ribute su* funds to ! public s*ools s]v$ by ! local educational ag5cy & ,/ate-accr$it$ private s*ools ) ! local educational ag5cy's geographic jurisdiction-- 7#a7 bas$ on ! numb] ( eligible *ildr5 enroll$ 9 su* s*ools2 & 7#b7 9 ! mann] t w\ld1 9 ! abs5ce ( su* ,f$]al funds1 supplem5t ! funds made available f ! non-,f$]al res\rces = ! education ( pupils p>ticipat+ 9 programs "u ?is "p1 & n to supplant su* funds4 4 7b7 ,table ( cont5ts ,! table ( cont5ts 9 section #b ( ! ,elem5t>y & ,second>y ,education ,act ( #aife is am5d$ by ins]t+ aft] ! item relat+ to section #aabg ! foll[+3 ,sec4 #aabh4 ,s*ool *oice ?r\gh portability4 4 #ejc4 ,special ,economic ,fre$om ,zone visas 7a7 ,def9itions ,9 ?is section3 7#a7 ,ab&on$2 dilapidat$ ,! t]ms ab&on$ & dilapidat$ %all be def9$ by ! ,/ates 9 accordance ) ! provisions ( ?is ,act4 7#b7 ,full-"t employm5t ,! t]m full-"t employm5t means employm5t 9 a position t requires at lea/ #ce h\rs ( s]vice p] week at any "t1 reg>dless ( :o fills ! position4 7b7 ,purpose ,! purpose ( ?is section is to facilitate increas$ inve/m5t & enhanc$ human capital 9 ,economic ,fre$om ,zones ?r\gh ! issuance ( special regional visas4 7c7 ,au?orization ,! ,secret>y ( ,homel& ,security1 9 collaboration ) ! ,secret>y ( ,labor1 may issue ,special ,economic ,fre$om ,zone ,visas1 9 a numb] det]m9$ by ! ,gov]nor ( ea* ,/ate1 9 consultation ) local (ficials 9 regions designat$ by ! ,secret>y ( ! ,treasury z ,economic ,fre$om ,zones1 to au?orize qualifi$ ali5s to ent] ! ,unit$ ,/ates = ! purpose (-- 7#a7 engag+ 9 a new comm]cial ent]prise 7includ+ a limit$ p>tn]%ip7-- 7,a7 9 :i* su* ali5 has inve/$1 or is actively 9 ! process ( inve/+1 capital 9 an am\nt n less ?an ! am\nt specifi$ 9 subsection 7d72 & 7,b7 :i* w b5efit ! region designat$ z an ,economic ,fre$om ,zone by creat+ full-"t employm5t ( n few] ?an #e ,unit$ ,/ates citiz5s1 ali5s lawfully admitt$ = p]man5t resid5ce1 or o!r immigrants lawfully au?oriz$ to be employ$ 9 ! ,unit$ ,/ates 7exclud+ ! ali5 & ! ali5's imm$iate family72 7#b7 engag+ 9 ! pur*ase & r5ovation ( dilapidat$ or ab&on$ prop]ties or resid5ces 7z det]m9$ by ,/ate & local (ficials7 9 :i* su* ali5 has inve/$1 or is actively 9 ! process ( inve/+1 9 ! own]%ip ( su* prop]ties or resid5ces2 or 7#c7 resid+ & work+ 9 an ,economic ,fre$om ,zone4 7d7 ,effective p]iod ,a visa issu$ to an ali5 "u ?is section %all expire on ! lat] (-- 7#a7 ! date on :i* ! relevant ,economic ,fre$om ,zone loses su* designation2 or 7#b7 ! date t is #e ye>s aft] ! date on :i* su* visa 0 issu$ to su* ali54 7e7 ,capital & educational requirem5ts 7#a7 ,new comm]cial ent]prises ,except z o!rwise provid$ "u ?is section1 ! m9imum am\nt ( capital requir$ to comply ) subsection 7c77#a77;,a7 %all be #ej1jjj4 7#b7 ,r5ovation ( dilapidat$ or ab&on$ prop]ties ,an ali5 is n 9 compliance ) subsection 7c77#b7 unless ! ali5-- 7,a7 pur*ases a dilapidat$ or ab&on$ prop]ty 9 an ,economic ,fre$om ,zone2 & 7,b7 n lat] ?an #ah mon?s aft] su* pur*ase1 inve/s n less ?an #be1jjj to rebuild1 rehabilitate1 or repurpose ! prop]ty4 7#c7 ,v]ification ,a visa issu$ "u subsection 7c7 %all n rema9 9 effect = m ?an #b ye>s unless ! ,secret>y ( ,homel& ,security has v]ifi$ t ! ali5 has compli$ ) ! requirem5ts describ$ 9 subsection 7c74 7#d7 ,education & skill requirem5ts ,an ali5 is n 9 compliance ) subsection 7c77#c7 unless ! ali5 possesses-- 7,a7 a ba*elor's degree 7or its equival5t7 or an advanc$ degree2 7,b7 a degree or specialty c]tification t-- 7i7 is requir$ = ! job ! ali5 w be p]=m+2 & 7ii7 is specific to an indu/ry or job t is s complex or unique t x c be p]=m$ only by an individual ) ! specialty c]tification2 7,c7 7i7 ! k requir$ to p]=m ! duties ( ! job ! ali5 w be p]=m+2 & 7ii7 ! nature ( ! specific duties is s specializ$ & complex t su* k is usually associat$ ) atta9m5t ( a ba*elor's or high] degree2 or 7,d7 a skill or tal5t t w\ld b5efit ! ,economic ,fre$om ,zone4 7f7 ,additional provisions 7#a7 ,geographic limitation ,an ali5 :o has be5 issu$ a visa "u ?is section is n p]mitt$ to live or "w outside ( an ,economic ,fre$om ,zone4 7#b7 ,rescission ,a visa issu$ "u ?is section %all be resc9d$ if ! visa hold] resides or works outside ( an ,economic ,fre$om ,zone or o!rwise fails to comply ) ! provisions ( ?is section4 7#c7 ,o!r visas ,an ali5 :o has be5 issu$ a visa "u ?is section may apply = any o!r visa = :i* ! ali5 is eligible 9 ord] to pursue employm5t outside ( an ,economic ,fre$om ,zone4 7g7 ,adju/m5t ( /atus ,! ,secret>y ( ,homel& ,security may adju/ ! /atus ( an ali5 :o has be5 issu$ a visa "u ?is section to t ( an ali5 lawfully admitt$ = p]man5t resid5ce1 )\t num]ical limitation1 if ! ali5-- 7#a7 has fully compli$ ) ! requirem5ts set =? 9 ?is section = at lea/ #e ye>s2 7#b7 submits a complet$ application to ! ,secret>y2 & 7#c7 is n inadmissible to ! ,unit$ ,/ates bas$ on any ( ! factors set =? 9 section #bab7;a7 ( ! ,immigration & ,nationality ,act 7#h ,u4,s4,c4 #aahb7;a774 #ejd4 ,economic ,fre$om ,zone educational sav+s acc\nts 7a7 ,9 g5]al ,"p ,,viii ( sub*apt] ,f ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #ecj;,a4 ,economic ,fre$om ,zone educational sav+s acc\nts 7a7 ,9 g5]al ,except z provid$ 9 ?is section1 an ,economic ,fre$om ,zone educational sav+s acc\nt %all be treat$ = purposes ( ?is title 9 ! same mann] z a ,cov]dell education sav+s acc\nt4 7b7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,economic ,fre$om ,zone educational sav+s acc\nt ,! t]m ,economic ,fre$om ,zone educational sav+s acc\nt means a tru/ creat$ or organiz$ 9 ! ,unit$ ,/ates exclusively = ! purpose ( pay+ ! qualifi$ education exp5ses 7z def9$ 9 section #ecj7;b77#b77 ( an individual :o is ! designat$ b5efici>y ( ! tru/ 7& designat$ z an ,economic ,fre$om ,zone educational sav+ acc\nt at ! "t creat$ or organiz$7 & :o is a qualifi$ individual at ! "t su* tru/ is e/abli%$1 b only if ! writt5 gov]n+ in/rum5t creat+ ! tru/ meets ! foll[+ requirem5ts3 7,a7 ,no contribution w be accept$-- 7i7 unless x is 9 ca%1 7ii7 aft] ! date on :i* su* b5efici>y atta9s age #be1 or 7iii7 except 9 ! case ( rollov] contributions1 if su* contribution w\ld result 9 aggregate contributions = ! taxable ye> exce$+ #aj1jjj4 7,b7 ,no contribution %all be accept$ at any "t 9 :i* ! designat$ b5efici>y is n a qualifi$ individual4 7,c7 ,! tru/ meets ! requirem5ts ( subp>agraphs 7,b71 7,c71 7,d71 & 7,e7 ( section #ecj7;b77#a74 ,! age limitations 9 subp>agraphs 7,a77ii71 subp>agraph 7,e7 ( section #ecj7;b77#a71 & p>agraphs 7#e7 & 7#f7 ( section #ecj7;d71 %all n apply to any designat$ b5efici>y ) special ne$s 7z det]m9$ "u regulations prescrib$ by ! ,secret>y74 7#b7 ,qualifi$ individual ,! t]m qualifi$ individual means any individual ^: pr9cipal resid5ce 7)9 ! mean+ ( section #aba7 is locat$ 9 an ,economic ,fre$om ,zone 7z def9$ 9 section #adjj,v-#f74 7c7 ,d$uction = contributions 7#a7 ,9 g5]al ,!re %all be all[$ z a d$uction "u "p ,,vii ( sub*apt] ,b ( ?is *apt] an am\nt equal to ! aggregate am\nt ( contributions made by ! taxpay] to any ,economic ,fre$om ,zone educational sav+s acc\nt dur+ ! taxable ye>4 7#b7 ,limitation ,! am\nt ( ! d$uction all[$ "u p>agraph 7#a7 = any taxpay] = any taxable ye> %all n exce$ #dj1jjj4 7#c7 ,no d$uction = rollov] contributions ,no d$uction %all be all[$ "u p>agraph 7#a7 = any rollov] contribution describ$ 9 section #ecj7;d77#e74 7d7 ,o!r rules 7#a7 ,no income limit ,9 ! case ( an ,economic ,fre$om ,zone educational sav+s acc\nt1 subsection 7c7 ( section #ecj %all n apply4 7#b7 ,*ange 9 b5efici>ies ,not)/&+ p>agraph 7#f7 ( section #ecj7;b71 a *ange 9 ! b5efici>y ( an ,economic ,fre$om ,zone education sav+s acc\nt %all be treat$ z a di/ribution unless ! new b5efici>y is a qualifi$ individual4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,viii ( sub*apt] ,f ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #ecj;,a4 ,economic ,fre$om ,zone educational sav+s acc\nts4 4 ,,vi ,community assi/ance & rebuild+ #fja4 ,nonapplication ( ,davis-,bacon ,! wage rate requirem5ts ( sub*apt] ,,iv ( *apt] #ca ( title #dj1 ,unit$ ,/ates ,code 7commonly ref]r$ to z ! ,davis-,bacon ,act71 %all n apply ) respect to any area designat$ z an ,economic ,fre$om ,zone "u ?is ,act4 #fjb4 ,economic ,fre$om ,zone *>itable tax cr$it 7a7 ,9 g5]al ,section #agj is am5d$ by r$esignat+ subsection 7p7 z subsection 7q7 & by ins]t+ aft] subsection 7o7 ! foll[+ new subsection3 7o7 ,election ,to treat contributions = ,economic ,fre$om ,zone *>ities z a cr$it 7#a7 ,9 g5]al ,9 ! case ( an individual1 at ! election ( ! taxpay]1 s mu* ( ! d$uction all[$ "u subsection 7a7 7det]m9$ )\t reg>d to ?is subsection7 :i* is attributable to ,economic ,fre$om ,zone *>itable contributions-- 7,a7 %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye>1 & 7,b7 %all n be all[$ z a d$uction = su* taxable ye> "u subsection 7a74 ,any am\nt all[able z a cr$it "u ?is subsection %all be treat$ z a cr$it all[$ "u subp>t ,a ( "p ,,iv ( sub*apt] ,a = purposes ( ?is title4 7#b7 ,am\nt attributable to ,economic ,fre$om ,zone *>itable contributions ,= purposes ( p>agraph 7#a7-- 7,a7 ,9 g5]al ,9 any case 9 :i* ! total *>itable contributions ( a taxpay] = a taxable ye> exce$ ! contribution base1 ! am\nt ( ,economic ,fre$om ,zone *>itable contributions tak5 into acc\nt "u p>agraph 7#a7 %all be ! am\nt :i* be>s ! same ratio to ! total *>itable contributions made by ! taxpay] dur+ su* taxable ye> z ! am\nt ( ! d$uction all[$ "u subsection 7a7 7det]m9$ )\t reg>d to ?is subsection & aft] application ( subsection 7b77 be>s to ! total *>itable contributions made by ! taxpay] = su* taxable ye>4 7,b7 ,c>ryov]s ,9 ! case ( any contribution c>ri$ f a prec$+ taxable ye> "u subsection 7d71 su* am\nt %all be treat$ z attributable to an ,economic ,fre$om ,zone *>itable contribution 9 ! am\nt t be>s ! same ratio to ! total am\nt c>ri$ f prec$+ taxable ye>s "u subsection 7d7 z ! am\nt ( ,economic ,fre$om ,zone *>itable contributions n all[$ z a d$uction "u subsection 7a7 7o!r ?an by reason ( ?is subsection7 = ! prec$+ #e taxable ye> be>s to total am\nt c>ri$ f prec$+ taxable ye>s "u subsection 7d74 7#c7 ,economic ,fre$om ,zone *>itable contribution ,! t]m ,economic ,fre$om ,zone *>itable contribution means any contribution to a corporation1 tru/1 or community *e/ fund1 or f\ndation describ$ 9 subsection 7c77#b71 b only if-- 7,a7 su* entity is creat$ or organiz$ exclusively =-- 7i7 religi\s purposes1 7ii7 educational purposes1 or 7iii7 any ( ! foll[+ *>itable purposes3 provid+ educational s*ol>%ips1 provid+ %elt]s = homeless individuals1 or sett+ up or ma9ta9+ food banks1 7,b7 ! prim>y mission ( su* entity is s]v+ individuals 9 an ,economic ,fre$om ,zone1 7,c7 ! entity ma9ta9s acc\ntability to resid5ts ( su* ,economic ,fre$om ,zone ?r\gh _! repres5tation on any gov]n+ bo>d ( ! entity or any advisory bo>d to ! entity1 & 7,d7 ! entity is c]tifi$ by ! ,secret>y = purposes ( ?is subsection4 ,su* t]m %all n include any contribution made to an entity describ$ 9 ! prec$+ s5t5ce aft] ! date 9 :i* ! designation ( ! ,economic ,fre$om ,zone s]vic$ by su* entity lapses4 7#d7 ,economic ,fre$om ,zone ,! t]m ,economic ,fre$om ,zone means any area :i* is an ,economic ,fre$om ,zone "u title ,,ii ( ! ,economic ,fre$om ,zone ,act4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,vii ,/ate & community policy recomm5dations #gja4 ,s5se ( ! ,s5ate conc]n+ policy recomm5dations ,x is ! s5se ( ! ,s5ate t ,/ate & local gov]nm5ts %\ld review & adopt ! foll[+ policy recomm5dations3 7#a7 ,p5sion re=m ,/ate & local gov]nm5ts %\ld-- 7,a7 implem5t re=ms to address any fiscal %ortfall 9 public p5sion fund+1 includ+ utiliz+ accrual acc\nt+ me?ods1 su* z ^? re=ms und]tak5 by ! private sector p5sion funds2 & 7,b7 re/ructure & r5egotiate any public p5sion fund t is deem$ to be insolv5t or und]fund$1 includ+ adopt+ def9$ contribution retirem5t sy/ems4 7#b7 ,taxes ,/ate & local gov]nm5ts %\ld r$uce jurisdictional tax rates bel[ ! national av]age 9 ord] to help facilitate capital inve/m5t & economic gr[?1 p>ticul>ly 9 comb9ation ) ! provisions ( ?is ,act4 7#c7 ,education ,/ate & local gov]nm5ts %\ld adopt s*ool *oice options to provide *ildr5 & p>5ts m educational *oices1 p>ticul>ly 9 impov]i%$ areas4 7#d7 ,communities ,/ate & local gov]nm5ts %\ld adopt "r-to-"w laws to all[ m competitiv5ess & m flexibility = bus9esses to exp&4 7#e7 ,regulations ,/ate & local gov]nm5ts %\ld /reaml9e ! regulatory burd5 on families & bus9esses1 includ+ /reaml9+ ! opportunities = occupational lic5s+4 7#f7 ,ab&on$ /ructures ,/ate & local gov]nm5ts %\ld consid] ! foll[+ options to r$uce or fix areas ) ab&on$ prop]ties or resid5ces3 7,a7 ,9 ! case ( =eclosures1 tax notifications %\ld be s5t to bo? ! li5 hold] 7if diff]5t ?an ! home[n]7 & ! home[n]4 7,b7 ,:]e ,/ate con/itutions p]mit1 prop]ty tax abatem5t or cr$its %\ld be provid$ = individuals :o pur*ase or inve/ 9 ab&on$ or dilapidat$ prop]ties4 7,c7 ,non-pr(it or *>ity demolition entities %\ld be p]mitt$ or enc\rag$ to help remove ab&on$ prop]ties4 7,d7 ,gov]nm5t or municipality fees & p5alties %\ld be limit$1 & be proportional to ! out/&+ tax am\nt & ! ability to pay4 7,e7 ,! sale ( tax li5s to ?ird p>ties %\ld be review$1 & :]e available1 %\ld prohibit ! sell+ ( tax li5s bel[ a c]ta9 ?re%old 7= example ! prohibition ( ! sale ( tax li5s to ?ird p>ties "u #a1jjj74