,i #aafth ,,congress #ast ,session ,h4 ,r4 #bbch ,,in ,,the ,,house ,,of ,,representatives ,april #aj1 #bjai ,mr4 ,espaillat 7for himself and ,mr4 ,rogers of ,kentucky7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to extend certain tax benefits related to empowerment zones4 #a4 ,extension of empowerment zones 7a7 ,in general ,section #acia7;d77#a77;,a77i7 of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjag and inserting ,december #ca1 #bjbi4 7b7 ,effective date ,the amendment made by this section shall take effect on ,january #a1 #bjah4 7c7 ,treatment of ,certain ,termination ,dates ,specified in ,nominations ,in the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph 7,a77i7 of section #acia7;d77#a7 of the ,internal ,revenue ,code of #aihf 7as in effect before the enactment of this ,act71 subparagraph 7,b7 of such section shall not apply with respect to such designation if1 after the date of the enactment of this section1 the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the ,secretary of the ,treasury 7or the ,secretary's designee7 may provide4 #b4 ,reinstatement of qualified zone academy bonds 7a7 ,in general ,part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subpart3 ,h ,credit to holders of qualified zone academy bonds ,sec4 #ed4 ,credit to holders4 ,sec4 #ed;,a4 ,qualified zone academy bonds4 #ed4 ,credit to holders 7a7 ,allowance of ,credit ,if a taxpayer holds a qualified zone academy bond on one or more credit allowance dates of the bond during any taxable year1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection 7b7 with respect to such dates4 7b7 ,amount of ,credit 7#a7 ,in general ,the amount of the credit determined under this subsection with respect to any credit allowance date for a qualified zone academy bond is #be percent of the annual credit determined with respect to such bond4 7#b7 ,annual credit ,the annual credit determined with respect to any qualified zone academy bond is the product of-- 7,a7 the applicable credit rate1 multiplied by 7,b7 the outstanding face amount of the bond4 7#c7 ,applicable credit rate ,for purposes of paragraph 7#b71 the applicable credit rate is the rate which the ,secretary estimates will permit the issuance of qualified zone academy bonds with a specified maturity or redemption date without discount and without interest cost to the qualified issuer4 ,the applicable credit rate with respect to any qualified zone academy bond shall be determined as of the first day on which there is a binding1 written contract for the sale or exchange of the bond4 7#d7 ,special rule for issuance and redemption ,in the case of a bond which is issued during the #c-month period ending on a credit allowance date1 the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the #c-month period during which the bond is outstanding4 ,a similar rule shall apply when the bond is redeemed or matures4 7c7 ,limitation based on amount of tax 7#a7 ,in general ,the credit allowed under subsection 7a7 for any taxable year shall not exceed the excess of-- 7,a7 the sum of the regular tax liability 7as defined in section #bf7;b77 plus the tax imposed by section #ee1 over 7,b7 the sum of the credits allowable under this part 7other than subparts ,c and ,j and this subpart74 7#b7 ,carryover of unused credit ,if the credit allowable under subsection 7a7 exceeds the limitation imposed by paragraph 7#a7 for such taxable year1 such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection 7a7 for such taxable year 7determined before the application of paragraph 7#a7 for such succeeding taxable year74 7d7 ,definitions ,for purposes of this subchapter-- 7#a7 ,credit allowance date ,the term credit allowance date means-- 7,a7 ,march #ae1 7,b7 ,june #ae1 7,c7 ,september #ae1 and 7,d7 ,december #ae4 ,such term includes the last day on which the bond is outstanding4 7#b7 ,bond ,the term bond includes any obligation4 7#c7 ,state ,the term ,state includes the ,district of ,columbia and any possession of the ,united ,states4 7#d7 ,available project proceeds ,the term available project proceeds means-- 7,a7 the excess of-- 7i7 the proceeds from the sale of an issue1 over 7ii7 the issuance costs financed by the issue 7to the extent that such costs do not exceed #b percent of such proceeds71 and 7,b7 the proceeds from any investment of the excess described in subparagraph 7,a74 7e7 ,credit treated as interest ,for purposes of this subtitle1 the credit determined under subsection 7a7 shall be treated as interest which is includible in gross income4 7f7 ,s corporations and partnerships ,in the case of a qualified zone academy bond held by an ,s corporation or partnership1 the allocation of the credit allowed by this section to the shareholders of such corporation or partners of such partnership shall be treated as a distribution4 7g7 ,bonds held by real estate investment trusts ,if any qualified zone academy bond is held by a real estate investment trust1 the credit determined under subsection 7a7 shall be allowed to beneficiaries of such trust 7and any gross income included under subsection 7e7 with respect to such credit shall be distributed to such beneficiaries7 under procedures prescribed by the ,secretary4 7h7 ,credits may be stripped ,under regulations prescribed by the ,secretary-- 7#a7 ,in general ,there may be a separation 7including at issuance7 of the ownership of a qualified zone academy bond and the entitlement to the credit under this section with respect to such bond4 ,in case of any such separation1 the credit under this section shall be allowed to the person who on the credit allowance date holds the instrument evidencing the entitlement to the credit and not to the holder of the bond4 7#b7 ,certain rules to apply ,in the case of a separation described in paragraph 7#a71 the rules of section #abhf shall apply to the qualified zone academy bond as if it were a stripped bond and to the credit under this section as if it were a stripped coupon4 #ed;,a4 ,qualified zone academy bonds 7a7 ,in general ,for purposes of this subchapter1 the term qualified zone academy bond means any bond issued as part of an issue if-- 7#a7 #ajj percent of the available project proceeds of such issue are to be used for a qualified purpose with respect to a qualified zone academy established by an eligible local education agency1 7#b7 the bond is issued by a ,state or local government within the jurisdiction of which such academy is located1 and 7#c7 the issuer-- 7,a7 designates such bond for purposes of this section1 7,b7 certifies that it has written assurances that the private business contribution requirement of subsection 7b7 will be met with respect to such academy1 and 7,c7 certifies that it has the written approval of the eligible local education agency for such bond issuance4 7b7 ,private business contribution requirement ,for purposes of subsection 7a71 the private business contribution requirement of this subsection is met with respect to any issue if the eligible local education agency that established the qualified zone academy has written commitments from private entities to make qualified contributions having a present value 7as of the date of issuance of the issue7 of not less than #aj percent of the proceeds of the issue4 7c7 ,limitation on amount of bonds designated 7#a7 ,national limitation ,there is a national zone academy bond limitation for each calendar year4 ,such limitation is #djj1jjj1jjj for each of calendar years #bjbj through #bjbi and1 except as provided in paragraph 7#d71 zero thereafter4 7#b7 ,allocation of limitation ,the national zone academy bond limitation for a calendar year shall be allocated by the ,secretary among the ,states on the basis of their respective populations of individuals below the poverty line 7as defined by the ,office of ,management and ,budget74 ,the limitation amount allocated to a ,state under the preceding sentence shall be allocated by the ,state education agency to qualified zone academies within such ,state4 7#c7 ,designation subject to limitation amount ,the maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection 7a7 with respect to any qualified zone academy shall not exceed the limitation amount allocated to such academy under paragraph 7#b7 for such calendar year4 7#d7 ,carryover of unused limitation 7,a7 ,in general ,if for any calendar year-- 7i7 the limitation amount for any ,state1 exceeds 7ii7 the amount of bonds issued during such year which are designated under subsection 7a7 with respect to qualified zone academies within such ,state1 the limitation amount for such ,state for the following calendar year shall be increased by the amount of such excess4 7,b7 ,limitation on carryover ,any carryforward of a limitation amount may be carried only to the first #b years following the unused limitation year4 ,for purposes of the preceding sentence1 a limitation amount shall be treated as used on a first-in first-out basis4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,qualified zone academy ,the term qualified zone academy means any public school 7or academic program within a public school7 which is established by and operated under the supervision of an eligible local education agency to provide education or training below the postsecondary level if-- 7,a7 such public school or program 7as the case may be7 is designed in cooperation with business to enhance the academic curriculum1 increase graduation and employment rates1 and better prepare students for the rigors of college and the increasingly complex workforce1 7,b7 students in such public school or program 7as the case may be7 will be subject to the same academic standards and assessments as other students educated by the eligible local education agency1 7,c7 the comprehensive education plan of such public school or program is approved by the eligible local education agency1 and 7,d7 7i7 such public school is located in an empowerment zone or enterprise community 7including any such zone or community designated after the date of the enactment of this section71 or 7ii7 there is a reasonable expectation 7as of the date of issuance of the bonds7 that at least #ce percent of the students attending such school or participating in such program 7as the case may be7 will be eligible for free or reduced-cost lunches under the school lunch program established under the ,national ,school ,lunch ,act4 7#b7 ,eligible local education agency ,for purposes of this section1 the term eligible local education agency means any local educational agency as defined in section #haja of the ,elementary and ,secondary ,education ,act of #aife4 7#c7 ,qualified purpose ,the term qualified purpose means1 with respect to any qualified zone academy-- 7,a7 rehabilitating or repairing the public school facility in which the academy is established1 7,b7 providing equipment for use at such academy1 7,c7 developing course materials for education to be provided at such academy1 and 7,d7 training teachers and other school personnel in such academy4 7#d7 ,qualified contributions ,the term qualified contribution means any contribution 7of a type and quality acceptable to the eligible local education agency7 of-- 7,a7 equipment for use in the qualified zone academy 7including state-of-the-art technology and vocational equipment71 7,b7 technical assistance in developing curriculum or in training teachers in order to promote appropriate market driven technology in the classroom1 7,c7 services of employees as volunteer mentors1 7,d7 internships1 field trips1 or other educational opportunities outside the academy for students1 or 7,e7 any other property or service specified by the eligible local education agency4 4 7b7 ,conforming amendments 7#a7 ,section #fdja7;b77#a7 of such ,code is amended by striking and ,g and inserting ,g1 and ,h4 7#b7 ,the table of subparts for part ,,iv of subchapter ,a of chapter #a of such ,code is amended by at the end the following new item3 ,subpart ,h--,credit to holders of qualified zone academy bonds 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,december #ca1 #bjai4