,,ii #aaeth ,,congress #ast ,session ,s4 #adb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ab1 #bjag,mr4 ,casey 7for himself and ,ms4 ,klobuchar7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to expand certain empowerment zone provisions to communities receiving a ,worker ,adjustment and ,retraining ,notification ,act notice1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,community ,economic ,assistance ,act of #bjag4 #b4 ,extension of empowerment zone provisions to certain communities 7a7 ,in general ,chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after subchapter ,u the following new subchapter3 ,u-#a ,community economic assistance zones ,sec4 #acig;,g4 ,designation of community economic assistance zones4,sec4 #acig;,h4 ,incentives for community economic assistance zones4 #acig;,g4 ,designation of community economic assistance zones 7a7 ,in general ,for purposes of this title1 the term community economic assistance zone means any area-- 7#a7 which is nominated by the governor or governors of the ,state or ,states in which it is located for designation as a community economic assistance zone 7hereafter in this section referred to as a nominated area1 and 7#b7 which the ,secretary designates as a community economic assistance zone1 after consultation with-- 7,a7 the ,secretary of ,labor1 and 7,b7 in the case of an area on an ,indian reservation1 the ,secretary of the ,interior4 7b7 ,designation based on loss of employment1 etc 7#a7 ,in general ,except as otherwise provided in this section1 a nominated area designated as a community economic assistance zone under this subsection shall be-- 7,a7 a nominated area-- 7i7 where-- 7,i7 a facility is located with respect to which a notice was issued after ,december #ca1 #bjad1 under section #c of the ,worker ,adjustment and ,retraining ,notification ,act 7#bi ,u4,s4,c4 #bajb7 with respect to #bej or more employees1 or 7,,ii7 where #ajj or more employees with respect to which such a notice was issued reside1 7ii7 where the number of employees-- 7,i7 with respect to which the notice was issued 7in the case of an area described in clause 7i77,i771 or 7,,ii7 the number of employees who are described in clause 7i77,,ii7 7in any other case71 is equal to or greater than #j4e percent of the employed population of the metropolitan statistical area 7as determined by the ,secretary71 and 7iii7 where a loss of employment satisfying the requirements applicable to such notice under clauses 7i7 and 7ii7 actually occurs1 7,b7 a nominated area which the ,secretary1 in consultation with the ,secretaries of ,labor and ,commerce1 determines has been or will be seriously impacted by changes in trade through loss of employment 7directly or indirectly71 taking into account the number of individuals certified as eligible to apply for trade adjustment assistance under chapter #b of title ,,ii of the ,trade ,act of #aigd or who are receiving benefits under such chapter1 or 7,c7 a nominated area which satisfies not less than two of the conditions described in paragraph 7#b74 7#b7 ,conditions described ,the conditions described in this subparagraph are the following3 7,a7 ,the area is designated by the governor of the ,state as an energy-transitioning community4 7,b7 ,the area1 at the time of nomination-- 7i7 has a composite index value1 as determined by the ,appalachian ,regional ,commission1 among the lowest #aj percent of counties in the ,state1 7ii7 is a low-income community 7as defined in section #de;,d7e771 or 7iii7 has an unemployment rate which is #h percent or greater1 or which is #f4e percent or greater and is equal to or greater than #abe percent of the average unemployment rate of the ,state4 7,c7 ,tax revenues collected in the area decreased1 not due to any changes in tax law or policy1 by at least-- 7i7 #g percent as compared to the preceding year1 or 7ii7 an average of #aj percent over the preceding #c years4 7,d7 ,the number of business establishments in the area decreased significantly during the preceding year or on average during the preceding #c years1 as determined by the ,secretary4 7,e7 ,the area is among the #aj percent of counties nationally which have experienced the largest increases in unemployment and the largest decreases in manufacturing over the preceding #c years1 as determined by the ,secretary4 7#c7 ,energy-transitioning communities ,for purposes of paragraph 7#b77;,a7-- 7,a7 ,in general ,the term energy-transitioning communities means those nominated areas where the ,secretary of ,labor1 in consultation with the ,secretary of ,energy1 determines there is a high concentration of jobs in industries or at facilities directly affected by an energy source transition4 7,b7 ,energy source transition ,for purposes of subparagraph 7,a71 the term energy source transition means-- 7i7 a situation in which the occurrence of a shift from the use of a type of fossil fuel to use of other sources of energy is followed by the closing of a facility1 or layoff of employees at a facility1 that mines1 extracts1 produces1 processes1 or utilizes fossil fuels to generate electricity1 and 7ii7 another situation as determined by the ,secretary of ,labor1 in consultation with the ,secretary of ,energy1 which is indicative of new demands or burdens on affected employees or employees in affected industries due to a significant change in the source of energy used by the facility or industry involved4 7#d7 ,eligibility criteria ,a nominated area shall be eligible for designation under this subsection only if it meets the requirements of section #acib7;a77#a7 and subparagraphs 7,a71 7,b71 and 7,c7 of section #acib7;a77#c74 7c7 ,period for which designation is in effect ,any designation of an area as a community economic assistance zone shall remain in effect during the period beginning on ,january #a1 #bjag1 and ending on the date that is #e years after the latest designation of such area as a community economic assistance zone4 7d7 ,limitation relating to ,state population ,an area shall not be designated as a community economic assistance zone under subsection 7b7 if such designation would result in more than #aj percent of the population of the ,state residing in such a zone 7determined by aggregating all such zones within the ,state74 7e7 ,coordination with treatment of renewal communities1 empowerment zones1 and enterprise communities ,for purposes of this title1 the designation under any other provision of this title of any area as a renewal community1 empowerment zone1 or enterprise community shall cease to be in effect as of the date that the designation of any portion of such area as a community economic assistance zone takes effect4 #acig;,h4 ,incentives for community economic assistance zones 7a7 ,employment credit 7#a7 ,in general ,section #acif shall be applied-- 7,a7 by treating any reference to an empowerment zone as a reference to a community economic assistance zone1 7,b7 by treating any reference to an employer as a reference to a qualified employer1 and 7,c7 without respect to subsection 7d77#a77;,b7 thereof4 7#b7 ,qualified zone employer ,for purposes of paragraph 7#a71 with respect to a taxable year1 the term qualified employer means any employer other than an excepted taxpayer described in subsection 7g74 7b7 ,increase in expensing under section #agi 7#a7 ,in general ,section #acig;,a shall be applied-- 7,a7 by treating any reference to an empowerment zone as a reference to a community economic assistance zone1 7,b7 by treating any reference to an enterprise zone business as a reference to a community economic assistance zone business1 7,c7 by treating any reference to qualified zone property as a reference to qualified community economic assistance zone property1 and 7,d7 by substituting #bj percent of such limitation for #ce1jjj in subsection 7a77#a77;,a7 thereof4 7#b7 ,community economic assistance zone business ,for purposes of this subsection1 the term community economic assistance zone business means-- 7,a7 any business entity1 and 7,b7 any proprietorship1 other than an excepted taxpayer described in subsection 7g71 which would be a qualified business entity 7as defined in section #acig;,c7b77 or a qualified proprietorship 7as defined in section #acig;,c7c77 if section #acig;,c were applied by substituting community economic assistance zone for empowerment zone each place it appears4 7c7 ,nonrecognition of gain on rollover of community economic assistance zone investments 7#a7 ,in general ,in the case of any sale of a qualified community economic assistance zone asset held by the taxpayer for more than #a year and with respect to which such taxpayer elects the application of this subsection1 gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds-- 7,a7 the cost of any qualified community economic assistance zone asset 7with respect to the same zone as the asset sold7 purchased by the taxpayer during the #fj-;day period beginning on the date of such sale1 reduced by 7,b7 any portion of such cost previously taken into account under this subsection4 7#b7 ,definitions and special rules ,for purposes of this subsection-- 7,a7 ,qualified community economic assistance zone asset ,the term qualified community economic assistance zone asset means any property which would be a qualified community asset 7as defined in section #adjj;,f7b77 if in section #adjj;,f7b7-- 7i7 after ,december #ca1 #bjaf were substituted for after ,december #ca1 #bjja1 and before ,january #a1 #bjaj each place it appears1 7ii7 after ,december #ca1 #bjaf were substituted for before ,january #a1 #bjaj in paragraph 7#d77;,b77i7 thereof1 7iii7 references to community economic assistance zone businesses 7as defined in subsection 7b77#b7 of this section7 were substituted for references to renewal community businesses1 and 7iv7 references to community economic assistance zones were substituted for references to renewal communities4 7,b7 ,other rules ,the rules of paragraphs 7#b71 7#c71 7#d71 and 7#e7 of section #acig;,b7b7 shall apply-- 7i7 by treating any reference to an enterprise zone business as a reference to a community economic assistance zone business 7as defined in subsection 7b77#b771 7ii7 by treating any reference to a qualified empowerment zone asset as a reference to a qualified community economic assistance zone asset1 and 7iii7 by treating any reference to subsection 7a7 of section #acig;,b as a reference to paragraph 7#a7 of this subsection4 7#c7 ,excepted taxpayers ,paragraph 7#a7 shall not apply in the case of an excepted taxpayer described in subsection 7g74 7d7 #c-,year carryback of net operating losses 7#a7 ,in general ,if a portion of any net operating loss of a taxpayer for any taxable year is a qualified community economic assistance zone loss1 section #agb7;b77#a7 shall be applied with respect to such portion-- 7,a7 by substituting #c taxable years for #b taxable years in subparagraph 7,a77i71 and 7,b7 by not taking such portion into account in determining any eligible loss of the taxpayer under subparagraph 7,e7 thereof for the taxable year4 7#b7 ,qualified community economic assistance zone loss ,for purposes of paragraph 7#a71 the term qualified community economic assistance zone loss means the portion of the net operating loss 7as defined in section #agb7;c77 for the taxable year which is attributable to deductions arising from-- 7,a7 losses in a community economic assistance zone1 7,b7 expenses paid or incurred within a community economic assistance zone1 and 7,c7 expenses paid or incurred with respect to property placed in service in a community economic assistance zone1 during either the taxable year in which the designation of such zone goes into effect under section #acig;,g or the immediately succeeding taxable year1 whichever is elected by the taxpayer4 7#c7 ,excepted taxpayers ,paragraph 7#a7 shall not apply in the case of an excepted taxpayer described in subsection 7g74 7e7 ,credit to holders of community economic support bonds 7#a7 ,in general ,with respect to a taxpayer holding a community economic support bond1 such bond shall be treated in the same manner as a ,gulf tax credit bond under section #adjj,n7l71 applied-- 7,a7 by substituting community economic support bond for ,gulf tax credit bond each place it appears in paragraphs 7#a71 7#b71 7#c71 and 7#g7 thereof1 and 7,b7 without regard to paragraphs 7#d7 and 7#e7 thereof4 7#b7 ,community economic support bond ,for purposes of this subsection-- 7,a7 ,in general ,the term community economic support bond means any bond issued as part of an issue if-- 7i7 the bond is issued by a ,state in which a community economic assistance area 7as defined in section #de;,d7f77#c77;,b77 is located1 7ii7 #ie percent or more of the proceeds of such issue are to be used in accordance with the priorities outlined in the community economic development plan approved under section #f of the ,community ,economic ,assistance ,act of #bjag to implement the strategies and objectives under such plan described in section #f7c7 of such ,act1 7iii7 the ,governor of such ,state designates such bond for purposes of this subsection1 7iv7 the bond is a general obligation of such ,state and is in registered form 7within the meaning of section #adi7;a771 7v7 the maturity of such bond does not exceed #ae years1 and 7vi7 the bond is issued after the designation of such zone goes into effect under section #acig;,g1 and before such designation ends under section #acig;,g7c74 7,b7 ,aggregate limit on bond designations ,the maximum aggregate face amount of bonds which may be designated under this subsection by the ,governor of a ,state shall not exceed #ajj1jjj1jjj per community economic assistance area located in the ,state4 7,c7 ,special rules relating to arbitrage ,a bond which is part of an issue shall not be treated as a community economic support bond unless1 with respect to the issue of which the bond is a part1 the issuer satisfies the arbitrage requirements of section #adh with respect to proceeds of the issue and any loans made with such proceeds4 7#c7 ,excepted taxpayers ,paragraph 7#a7 shall not apply in the case of an excepted taxpayer described in subsection 7g74 7f7 ,qualified community economic assistance zone property ,for purposes of this section1 the term qualified community economic assistance zone property means any property which would be qualified zone property for purposes of section #acig;,d if such section were applied by substituting community economic assistance zone for empowerment zone each place it appears4 7g7 ,taxpayers excepted ,with respect to any community economic assistance zone1 an excepted taxpayer described in this subsection is-- 7#a7 an entity that operates a facility in such zone with respect to which a notice under section #c of the ,worker ,adjustment and ,retraining ,notification ,act 7#bi ,u4,s4,c4 #bajb7 was issued1 if such notice caused the region to be designated as such a zone1 and 7#b7 any entity that would be treated as a single employer with such an entity under the rules of subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad4 4 7b7 ,clerical amendment ,the table of subchapters for chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to subchapter ,u the following new item3 ,,subchapter ,u-#a--;,community economic assistance zones 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #c4 #ae-year depreciation for certain rebuilt and retrofitted community economic assistance zone property 7a7 ,in general ,subparagraph 7,e7 of section #afh7;e77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of clause 7viii71 7#b7 by striking the period at the end of clause 7ix7 and inserting 1 and1 and 7#c7 by adding at the end the following new clause3 7x7 any qualified rebuilt or retrofitted community economic assistance zone property4 4 7b7 ,qualified rebuilt or retrofitted community economic assistance zone property ,subsection 7e7 of section #afh of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#i7 ,qualified rebuilt or retrofitted community economic assistance zone property 7,a7 ,in general ,the term qualified rebuilt or retrofitted community economic assistance zone property means property placed in service in a community economic assistance zone by a qualified taxpayer during the period the designation of such zone is in effect under section #acig;,g which relates to the rebuilding or retrofitting of-- 7i7 any qualified community economic assistance zone property 7as defined in section #acig;,h7f771 and 7ii7 any residential real property located in a community economic assistance zone which is acquired by the taxpayer by purchase 7as defined in section #agi7;d77#b77 during such period1 if such property was unoccupied and had been deemed condemned1 neglected1 or derelict as of the time of acquisition by the taxpayer4 7,b7 ,qualified taxpayer ,for purposes of this paragraph1 the term qualified taxpayer means a taxpayer other than an excepted taxpayer 7within the meaning of section #acig;,h7g774 4 #d4 ,increase in start-up expenditures for community economic assistance zone businesses ,paragraph 7#c7 of section #aie7;b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#c7 ,special rule for community economic assistance zone businesses ,in the case of any start-up expenditures made within a community economic assistance zone during the period the designation of such zone is in effect under section #acig;,g-- 7,a7 such expenditures shall be treated separately from other start-up expenditures of the taxpayer for the taxable year1 and 7,b7 in determining the deduction under paragraph 7#a7 with respect to such expenditures within such zone1 paragraph 7#a77;,a77ii7 shall be applied-- 7i7 by substituting #cj1jjj for #e1jjj1 and 7ii7 by substituting #abj1jjj for #ej1jjj4 4 #e4 ,increase in new markets tax credit designation for community economic assistance zones ,subsection 7f7 of section #de;,d of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,the limitation in paragraph 7#b7 and inserting ,except as provided in paragraph 7#c71 the limitation1 7#b7 by redesignating paragraph 7#c7 as paragraph 7#d71 7#c7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,allocation of limitation for calendar years after #bjaf 7,a7 ,in general ,in the case of any calendar year described in paragraph 7#a77;,g7 beginning after ,december #ca1 #bjaf1 the limitation under paragraph 7#a7 shall be increased by #ejj1jjj1jjj1 and such increase shall be allocated as provided in paragraph 7#b7 among qualified community development entities located in community economic assistance areas4 7,b7 ,community economic assistance area ,for purposes of subparagraph 7,a71 the term community economic assistance area means an area which-- 7i7 is a community economic assistance zone1 and 7ii7 has a community economic development plan approved under section #f of the ,community ,economic ,assistance ,act of #bjag4 7,c7 ,use of increase ,any amount of such increase which is so allocated to such an entity shall be used only in accordance with the priorities outlined in such community economic development plan to implement the strategies and objectives under such plan described in section #f7c7 of ,community ,economic ,assistance ,act of #bjag4 1 7#d7 by striking paragraph 7#b7 in paragraph 7#d71 as so redesignated1 and inserting paragraph 7#b7 or 7#c71 and 7#e7 by striking the second sentence of paragraph 7#d71 as so redesignated1 and inserting the following3 ,any carryover under the preceding sentence of an amount allocated under paragraph 7#c7 shall be allocated first among qualified community development entities located in community economic assistance areas1 and may then be allocated among any qualified community development entities selected by the ,secretary under paragraph 7#b74 ,no amount may be carried under the preceding sentences to any calendar year after #bjbd44 #f4 ,approval of community economic development plans ,a community economic development plan for a region shall be considered approved under this section if each of the following criteria are satisfied3 7#a7 ,the plan is submitted to the ,secretary of the ,treasury in such form1 and containing such information1 as the ,secretary may require4 7#b7 ,the plan contains a certification that the plan was developed and approved through a process that included participation from the following3 7,a7 ,state1 ,indian tribal1 and local governments and agencies or instrumentalities of ,state1 ,indian tribal1 and local governments4 7,b7 ,state planning boards1 workforce investment boards1 chambers of commerce1 and economic development organizations1 if relevant4 7,c7 ,local businesses4 7,d7 ,labor and health organizations4 7,e7 ,public school systems and institutions of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja774 7,f7 ,religious and other community-based groups in the region1 including those that provide assistance to the workers of the region and the families of the workers4 7,g7 ,other public community institutions1 such as library and park systems4 7,h7 ,members of the public1 including unemployed or soon to be unemployed workers4 7#c7 ,the ,secretary determines that the plan-- 7,a7 ascertains the severity of an anticipated or existing economic dislocation of the region1 including consideration of measures of unemployment rates and employment opportunities2 7,b7 assesses the capacity of the region to respond to such economic dislocation and the needs of the region1 as the region undertakes economic advancement or adjustment1 including with respect to-- 7i7 the diversity of industries in the region2 7ii7 the skills of the labor force in the region2 7iii7 the condition of the labor market of the region2 7iv7 the availability of financial resources in the region2 7v7 the quality and availability of educational facilities1 including #b-year institutions of higher education and vocational institutions1 that serve the region2 and 7vi7 the infrastructure of the region2 7,c7 includes a plan to use a local workforce and1 when necessary1 to train a local workforce2 7,d7 addresses the need of the region to attract investment1 create jobs1 increase wages1 improve educational opportunities1 and expand the availability of broadband ,internet access2 7,e7 leverages the region's economic strengths and outlines targeted investments to develop competitive advantages to execute the objectives outlined1 including a plan to utilize a local workforce and recently dislocated workers and1 when necessary1 train a local workforce2 7,f7 is the result of collaboration across a wide range of stakeholders2 7,g7 outlines a strategy which connects the region to drivers of regional economic growth2 7,h7 proposes a strategy for focusing on increased access to high quality1 affordable1 stable housing and improved public safety2 and 7,i7 discusses the anticipated benefits execution of the plan will deliver for community integration1 safety1 employment outcomes1 and home weatherization and energy efficiency1 and the expected contribution of the project to the inclusion of individuals with disabilities4 #g4 ,grants to carry out assessments required for development of community economic development plans 7a7 ,in general ,the ,secretary of the ,treasury may award a grant to an eligible entity involved in the development of a community economic development plan described in section #f to carry out such assessments and other activities as may be required for the plan to meet the requirements of section #f7c74 7b7 ,eligible entities ,for purposes of this section1 an eligible entity is a local or ,indian tribal government or an agency or instrumentality of such a government4 7c7 ,grant amount ,the ,secretary may not award a grant under this section in excess of #a1jjj1jjj4 7d7 ,matching requirement 7#a7 ,in general ,an eligible entity receiving a grant under this section shall provide non-,federal matching funds equal to not less than #bj percent of the amount of the grant4 7#b7 ,in-kind support ,matching funds may include in-kind support4 #h4 ,federal economic support team 7a7 ,deployment required ,the ,secretary of ,commerce shall deploy a targeted investment generating economic recovery team to a region to provide support and assistance to such region if-- 7#a7 the ,governor of the ,state requests such deployment2 and 7#b7 the ,secretary of ,commerce determines that the region is experiencing an actual or threatened abrupt rise of unemployment or economic hardship due to the closing or curtailment of a major source of employment1 significant industry transition1 or other mitigating economic factors1 including international trade4 7b7 ,support and assistance 7#a7 ,development of economic recovery and employment plan ,in providing support and assistance to a region under subsection 7a71 a targeted investment generating economic recovery team shall work in coordination with a ,state or regional economic development and workforce agency and the ,rapid ,response team of the ,department of ,labor to assist in the development of an economic recovery and employment plan for the region1 including by identifying grants1 sources of ,state and ,federal funding1 and unemployment insurance resources 7including short-time compensation7 which may be beneficially utilized in the region4 7#b7 ,cases of facilities shutdown ,in addition to the support and assistance provided under paragraph 7#a71 in a case in which the actual or threatened abrupt rise of unemployment or economic hardship in the region involves the shutdown of a facility of a business unit1 the team shall work in coordination with the ,administrator of the ,small ,business ,administration to assess the feasibility and advisability of an employee purchase of such business unit4 7#c7 ,coordination ,in addition to the support and assistance provided by a team under paragraph 7#a7 to a region1 the team1 in coordination with the ,secretary of ,labor1 shall-- 7,a7 coordinate the activities of all ,federal agencies relating to the provision of assistance to the region in response to the actual or threatened abrupt rise of unemployment or economic hardship referred to in subsection 7a77#b72 and 7,b7 act as a liaison between the region and all ,federal agencies providing assistance in response to such actual or threatened abrupt rise of unemployment or economic hardship1 including1 as the case may be1 the following3 7i7 ,the ,department of ,agriculture4 7ii7 ,the ,department of ,commerce4 7iii7 ,the ,department of ,defense4 7iv7 ,the ,department of ,education4 7v7 ,the ,department of ,energy4 7vi7 ,the ,department of ,health and ,human ,services4 7vii7 ,the ,department of ,housing and ,urban ,development4 7viii7 ,the ,department of ,labor4 7ix7 ,the ,department of ,transportation4 7x7 ,the ,department of the ,treasury4 7xi7 ,the ,national ,economic ,council4 7xii7 ,the ,small ,business ,administration4 7xiii7 ,the ,department of ,veterans ,affairs4