,,ii  #aac? ,,congress  #b;d ,session   
,s4 #beig  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ad1 #bjad ,mr4  
,casey introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide = !    
e/abli%m5t ( ,promise ,zones4  #a4 ,%ort
 title  ,?is ,act may be cit$ z !       
,promise ,zone ,job ,creation ,act (    
#bjad4  #b4  ,promise ,zones  7a7  ,9   
g5]al  ,sub*apt] ,y ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new "p3  ,,iv 
,promise ,zones  ,sec4 #adjj,v-#a4      
,designation ( ,promise ,zones4 ,sec4   
#adjj,v-#b4 ,promise ,zone employm5t    
cr$it4 ,sec4 #adjj,v-#c4 ,exp5s+ (      
,promise ,zone prop]ty4  #adjj,v-#a4    
,designation ( ,promise ,zones  7a7  ,9 
g5]al  ,= purposes ( ?is "p1 ! t]m      
,promise ,zone means any area--  7#a7   
:i* is nom9at$ by #a or m local         
gov]nm5ts or ,indian ,tribes 7z def9$ 9 
section #d7ac7 ( ! ,native ,am]ican     

,h\s+ ,assi/ance & ,self-,det]m9ation   
,act ( #aiif 7#be ,u4,s4,c4 #dajc7ac77 =
 designation z a ,promise ,zone 7h]eaft]
 9 ?is section ref]r$ to z a nom9at$    
area71  7#b7 :i* has a cont9u\s b\nd>y1 
7#c7 ! population ( :i* does n exce$    
#bjj1jjj1 &  7#d7 :i* ! ,secret>y (     
,h\s+ & ,urban ,developm5t & ! ,secret>y
 ( ,agriculture1 act+ jo9tly1 designate 
z a ,promise ,zone1 aft] consultation ) 
! ,secret>y ( ,comm]ce1 ! ,secret>y (   
,education1 ! ,attorney ,g5]al1 !       
,secret>y ( ,heal? & ,human ,s]vices1 ! 
,secret>y ( ,labor1 ! ,secret>y ( !     
,treasury1 ! ,secret>y (                
,transportation1 & o!r ag5cies z        
appropriate4  7b7  ,numb] ( designations
  7#a7  ,9 g5]al  ,n m ?an #bj nom9at$  
areas may be designat$ z ,promise       
,zones4  7#b7  ,numb] ( designations 9  
rural areas  ,( ! areas designat$ "u    
p>agraph 7#a71 #f ( su* areas %all be   
areas--  7,a7 :i* are outside ( a       
metropolitan /ati/ical area 7)9 ! mean+ 
( section #adc7k77#b77;,b771 or  7,b7   

:i* are det]m9$ by ! ,secret>y (        
,agriculture to be rural areas4  7c7    
,p]iod ( designations  7#a7  ,9 g5]al   
,! ,secret>y ( ,h\s+ & ,urban           
,developm5t & ! ,secret>y ( !           
,agriculture %all1 act+ jo9tly1         
designate #bj areas z ,promise ,zones   
be=e ,janu>y #a1 #bjag4  7#b7           
,effective dates ( designations  ,!     
designation ( any ,promise ,zone %all   
take effect--  7,a7 = purposes (        
priority consid]ation 9 ,f$]al grant    
programs & initiatives 7o!r ?an ?is "p71
 ^u execution ( ! ,promise ,zone        
agreem5t1 &  7,b7 = purposes ( ?is "p1  
on ,janu>y #a ( ! fir/ cal5d> ye> beg9n+
 aft] ! date ( ! execution ( ! ,promise 
,zone agreem5t4  7#c7  ,t]m9ation (     
designations  ,! designation ( any      
,promise ,zone %all end on ! e>li] (--  
7,a7 ! end ( ! #aj-ye> p]iod beg9n+ on !
 date t su* designation takes effect1 or
  7,b7 ! date ( ! revocation ( su*      
designation4  7#d7  ,application to     
c]ta9 ,zones already designat$  ,9 !    

case ( any area designat$ z a ,promise  
,zone by ! ,secret>y ( ,h\s+ & ,urban   
,developm5t & ! ,secret>y ( ,agriculture
 be=e ! date ( ! enactm5t ( ?is ,act1   
su* area %all be tak5 into acc\nt z a   
,promise ,zone designat$ "u ?is section 
& %all r$uce ! numb] ( ,promise ,zones  
rema9+ to be designat$ "u p>agraph 7#a74
  7d7  ,limitations on designations  ,no
 area may be designat$ "u ?is section   
unless--  7#a7 ! entities nom9at+ ! area
 h ! au?ority to nom9ate ! area (       
designation "u ?is section1  7#b7 su*   
entities provide writt5 assurances      
satisfactory to ! ,secret>y ( ,h\s+ &   
,urban ,developm5t & ! ,secret>y (      
,agriculture t ! competitiv5ess plan    
describ$ 9 ! application "u subsection  
7e7 = su* area w be implem5t$ & t su*   
entities w provide ! ,secret>y ( ,h\s+ &
 ,urban ,developm5t & ! ,secret>y (     
,agriculture ) su* data reg>d+ !        
economic conditions ( ! area 7be=e1     
dur+1 & aft] ! area's p]iod (           
designation z a ,promise ,zone7 z su*   

,secret>y may require1 &  7#c7 !        
,secret>y ( ,h\s+ & ,urban ,developm5t &
 ! ,secret>y ( ,agriculture det]m9e t   
any in=mation furni%$ is reasonably     
accurate4  7e7  ,application  ,no area  
may be designat$ "u ?is section unless !
 application = su* designation--  7#a7  
demon/rates t ! nom9at$ area satisfies !
 eligibility crit]ia describ$ 9         
subsection 7a71  7#b7 includes a        
competitiv5ess plan :i*--  7,a7         
addresses ! ne$ ( ! nom9at$ area to     
attract inve/m5t & jobs & improve       
educational opportunities1  7,b7        
lev]ages ! nom9at$ area's economic      
/r5g?s & outl9es t>get$ inve/m5ts to    
develop competitive advantages1  7,c7   
demon/rates collaboration across a wide 
range ( /akehold]s1  7,d7 outl9es a     
/rategy :i* connects ! nom9at$ area to  
driv]s ( regional economic gr[?1 &  7,e7
 proposes a /rategy = focus+ on increas$
 access to high quality af=dable h\s+ & 
improv$ public safety4  7f7  ,selection 
crit]ia  ,f among ! nom9at$ areas       

eligible = designation "u ?is section1 !
 ,secret>y ( ,h\s+ & ,urban ,developm5t 
& ! ,secret>y ( ,agriculture %all       
designate ,promise ,zones on ! basis (--
  7#a7 ! effectiv5ess ( ! competitiv5ess
 plan submitt$ "u subsection 7e7 & !    
assurances made "u subsection 7d71 &    
7#b7 unemploym5t rates1 pov]ty rates1   
vacancy rates1 crime rates1 & su* o!r   
factors z ! ,secret>y ( ,h\s+ & ,urban  
,developm5t & ! ,secret>y ( ,agriculture
 may id5tify1 includ+ h\sehold income1  
home-own]%ip1 labor =ce p>ticipation1 & 
educational atta9m5t1 &  7#c7 o!r       
crit]ia z det]m9$ by ! ,secret>y ( ,h\s+
 & ,urban ,developm5t & ! ,secret>y (   
,agriculture4  ,! ,secret>y ( ,h\s+ &   
,urban ,developm5t & ! ,secret>y (      
,agriculture may set m9imal /&>ds = !   
levels ( unemploym5t & pov]ty t mu/ be  
satisfi$ = designation z a ,promise     
,zone4  #adjj,v-#b4  ,promise ,zone     
employm5t cr$it  7a7  ,am\nt ( cr$it  ,=
 purposes ( section #ch1 ! am\nt ( !    
,promise ,zone employm5t cr$it det]m9$  

"u ?is section ) respect to any employ] 
= any taxable ye> is ! applicable       
p]c5tage ( ! qualifi$ wages paid or     
incurr$ dur+ ! cal5d> ye> :i* ends ) or 
)9 su* taxable ye>4  7b7  ,applicable   
p]c5tage  ,= purposes ( ?is section1 !  
t]m applicable p]c5tage means--  7#a7 9 
! case ( qualifi$ wages describ$ 9      
subsection 7c77#a77;,a71 #bj p]c5t1 &   
7#b7 9 ! case ( qualifi$ wages describ$ 
9 subsection 7c77#a77;,b71 #aj p]c5t4   
7c7  ,qualifi$ wages  ,= purposes ( ?is 
section--  7#a7  ,9 g5]al  ,! t]m       
qualifi$ wages means any wages paid or  
incurr$ by an employ] = s]vices p]=m$ by
 an employee :ile su* employee is--     
7,a7 a qualifi$ zone employee1 or  7,b7 
a qualifi$ resid5t employee4  7#b7      
,only fir/ #ae1jjj ( wages p] ye> tak5  
into acc\nt  ,) respect to ea* qualifi$ 
employee1 ! am\nt ( qualifi$ wages tak5 
into acc\nt = a cal5d> ye> %all n exce$ 
#ae1jjj4  7#c7  ,coord9ation ) "w       
opportunity cr$it  7,a7  ,9 g5]al  ,!   
t]m qualifi$ wages %all n include wages 

tak5 into acc\nt 9 det]m9+ ! cr$it "u   
section #ea4  7,b7  ,coord9ation ) doll>
 limitation  ,! #ae1jjj am\nt 9 p>agraph
 7#b7 %all be r$uc$ = any cal5d> ye> by 
! am\nt ( wages paid or incurr$ dur+ su*
 ye> :i* are tak5 into acc\nt 9 det]m9+ 
! cr$it "u section #ea4  7#d7  ,wages   
,! t]m wages has ! mean+ giv5 su* t]m by
 section #acig7;a74  7d7  ,qualifi$     
employee  ,= purposes ( ?is section--   
7#a7  ,qualifi$ employee  ,! t]m        
qualifi$ employee means any employee :o 
is a qualifi$ zone employee or a        
qualifi$ resid5t employee4  7#b7        
,qualifi$ zone employee  ,except z      
o!rwise provid$ 9 ?is subsection1 ! t]m 
qualifi$ zone employee means1 ) respect 
to any p]iod1 any employee ( an employ] 
if--  7,a7 sub/antially all ( ! s]vices 
p]=m$ dur+ su* p]iod by su* employee =  
su* employ] are p]=m$ )9 a ,promise     
,zone 9 a trade or bus9ess ( ! employ]1 
&  7,b7 ! pr9cipal place ( abode ( su*  
employee :ile p]=m+ su* s]vices is )9 a 
,promise ,zone4  7#c7  ,qualifi$ resid5t

 employee  ,except z o!rwise provid$ 9  
?is subsection1 ! t]m qualifi$ resid5t  
employee means1 ) respect to any p]iod1 
an employee ( an employ] if ! pr9cipal  
place ( abode ( su* employee dur+ su*   
p]iod is )9 a ,promise ,zone1 b         
sub/antially all ( ! s]vices p]=m$ dur+ 
su* p]iod by su* employee = su* employ] 
are n p]=m$ )9 a ,promise ,zone 9 a     
trade or bus9ess ( ! employ]4  7#d7     
,c]ta9 individuals n eligible  ,! t]ms  
qualifi$ zone employee & qualifi$       
resid5t employee %all n include any     
individual describ$ 9 p>agraph 7#b7 (   
section #acif7;d77#b7 7det]m9$ aft]     
application ( p>agraph 7#c7 !re(74  7e7 
,special rules  ,rules simil> to ! rules
 ( section #acig %all apply = purposes (
 ?is section4  7f7  ,taxpay] report+    
,no cr$it %all be det]m9$ "u ?is section
 ) respect to any taxpay] = any taxable 
ye> unless su* taxpay] provides !       
,secret>y ) su* in=mation z ! ,secret>y 
may require to all[ ! ,secret>y to      
evaluate ! effectiv5ess ( ! program     

e/abli%$ "u ?is "p4  #adjj,v-#c4        
,exp5s+ ( ,promise ,zone prop]ty  7a7   
,9 g5]al  ,a taxpay] may elect to treat 
! co/ ( any ,promise ,zone prop]ty z an 
exp5se :i* is n *>geable to capital     
acc\nt4 ,any co/ s treat$ %all be all[$ 
z a d$uction = ! taxable ye> 9 :i* !    
,promise ,zone prop]ty is plac$ 9       
s]vice4  7b7  ,promise ,zone prop]ty  ,=
 purposes ( ?is section--  7#a7  ,9     
g5]al  ,except z o!rwise provid$ 9 ?is  
subsection1 ! t]m ,promise ,zone prop]ty
 means prop]ty--  7,a7 :i* is--  7i7    
tangible prop]ty 7to :i* section #afh   
applies7 ) an applicable recov]y p]iod  
7)9 ! mean+ ( section #afh7 ( #bj ye>s  
or less1  7ii7 wat] utility prop]ty     
describ$ 9 section #afh7;e77#e71  7iii7 
comput] s(tw>e describ$ 9 section       
#agi7;d77#a77;,a77ii71 or  7iv7 qualifi$
 leasehold improvem5t prop]ty 7z def9$ 9
 section #afh7;e771  7,b7 :i* is acquir$
 by pur*ase 7z def9$ 9 section          
#agi7;d77#b77 = use 9 ! active conduct (
 a trade or bus9ess1 &  7,c7 :i* is     

orig9ally plac$ 9 s]vice by ! taxpay] 9 
a ,promise ,zone4  7#b7  ,exception =   
c]ta9 prop]ty  ,su* t]m %all n include  
any prop]ty to :i* section #afh7;g7     
applies4  7c7  ,election  ,an election  
"u ?is section %all be made "u rules    
simil> to ! rules ( section #agi7;c74   
7d7  ,coord9ation ) section #agi  ,=    
purposes ( section #agi1 ,promise ,zone 
prop]ty %all n be treat$ z section #agi 
prop]ty4  7e7  ,application ( o!r rules 
,rules simil> to ! rules ( p>agraphs    
7#c71 7#d71 7#e71 7#g71 7#i7 & 7#aj7 (  
section #agi7;d7 %all apply = purposes (
 ?is section4  7f7  ,taxpay] report+    
,?is section %all n apply ) respect to  
any taxpay] = any taxable ye> unless su*
 taxpay] provides ! ,secret>y ) su*     
in=mation z ! ,secret>y may require to  
all[ ! ,secret>y to evaluate !          
effectiv5ess ( ! program e/abli%$ "u ?is
 "p4  4  7b7  ,con=m+ am5dm5ts  7#a7    
,section #ch7;b7 ( su* ,code is am5d$ by
 /rik+ plus at ! end ( p>agraph 7#ce71  
by /rik+ ! p]iod at ! end ( p>agraph    

7#cf7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#cg7 !     
,promise ,zone employm5t cr$it det]m9$  
"u section #adjj,v-#b4  4  7#b7 ,! table
 ( p>ts = sub*apt] ,y ( *apt] #a ( su*  
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,"p ,,iv--,promise ,zones  4
  7c7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to taxable    
ye>s end+ aft] ,decemb] #ca1 #bjad4