,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #bbch  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #aj1 #bjai ,mr4
 ,espaillat 7= himself & ,mr4 ,rog]s (  
,k5tucky7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to ext5d c]ta9 tax
 b5efits relat$ to emp[]m5t zones4  #a4 
,ext5sion ( emp[]m5t zones  7a7 ,9 g5]al
 ,section #acia7;d77#a77;,a77i7 ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ,decemb] #ca1 #bjag & ins]t+   
,decemb] #ca1 #bjbi4  7b7 ,effective    
date ,! am5dm5t made by ?is section %all
 take effect on ,janu>y #a1 #bjah4  7c7 
,treatm5t ( ,c]ta9 ,t]m9ation ,dates    
,specifi$ 9 ,nom9ations ,9 ! case ( a   
designation ( an emp[]m5t zone !        
nom9ation = :i* includ$ a t]m9ation date
 :i* is contemporane\s ) ! date specifi$
 9 subp>agraph 7,a77i7 ( section        
#acia7;d77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z 9 effect be=e ! enactm5t (  
?is ,act71 subp>agraph 7,b7 ( su*       

section %all n apply ) respect to su*   
designation if1 aft] ! date ( ! enactm5t
 ( ?is section1 ! entity :i* made su*   
nom9ation am5ds ! nom9ation to provide =
 a new t]m9ation date 9 su* mann] z !   
,secret>y ( ! ,treasury 7or !           
,secret>y's designee7 may provide4  #b4 
,re9/atem5t ( qualifi$ zone academy     
bonds  7a7 ,9 g5]al ,"p ,,iv ( sub*apt] 
,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subp>t3  ,h ,cr$it to hold]s 
( qualifi$ zone academy bonds  ,sec4    
#ed4 ,cr$it to hold]s4 ,sec4 #ed;,a4    
,qualifi$ zone academy bonds4  #ed4     
,cr$it to hold]s  7a7 ,all[ance ( ,cr$it
 ,if a taxpay] holds a qualifi$ zone    
academy bond on "o or m cr$it all[ance  
dates ( ! bond dur+ any taxable ye>1 !re
 %all be all[$ z a cr$it aga9/ ! tax    
impos$ by ?is *apt] = ! taxable ye> an  
am\nt equal to ! sum ( ! cr$its det]m9$ 
"u subsection 7b7 ) respect to su*      
dates4  7b7 ,am\nt ( ,cr$it  7#a7 ,9    
g5]al ,! am\nt ( ! cr$it det]m9$ "u ?is 

subsection ) respect to any cr$it       
all[ance date = a qualifi$ zone academy 
bond is #be p]c5t ( ! annual cr$it      
det]m9$ ) respect to su* bond4  7#b7    
,annual cr$it ,! annual cr$it det]m9$ ) 
respect to any qualifi$ zone academy    
bond is ! product (-- 7,a7 ! applicable 
cr$it rate1 multipli$ by  7,b7 ! out/&+ 
face am\nt ( ! bond4  7#c7 ,applicable  
cr$it rate ,= purposes ( p>agraph 7#b71 
! applicable cr$it rate is ! rate :i* ! 
,secret>y e/imates w p]mit ! issuance ( 
qualifi$ zone academy bonds ) a specifi$
 maturity or r$emption date )\t disc\nt 
& )\t int]e/ co/ to ! qualifi$ issu]4 ,!
 applicable cr$it rate ) respect to any 
qualifi$ zone academy bond %all be      
det]m9$ z ( ! fir/ day on :i* !re is a  
b9d+1 writt5 contract = ! sale or       
ex*ange ( ! bond4  7#d7 ,special rule = 
issuance & r$emption ,9 ! case ( a bond 
:i* is issu$ dur+ ! #c-mon? p]iod end+  
on a cr$it all[ance date1 ! am\nt ( !   
cr$it det]m9$ "u ?is subsection )       
respect to su* cr$it all[ance date %all 

be a ratable portion ( ! cr$it o!rwise  
det]m9$ bas$ on ! portion ( ! #c-mon?   
p]iod dur+ :i* ! bond is out/&+4 ,a     
simil> rule %all apply :5 ! bond is     
r$eem$ or matures4  7c7 ,limitation bas$
 on am\nt ( tax  7#a7 ,9 g5]al ,! cr$it 
all[$ "u subsection 7a7 = any taxable   
ye> %all n exce$ ! excess (--  7,a7 !   
sum ( ! regul> tax liability 7z def9$ 9 
section #bf7;b77 plus ! tax impos$ by   
section #ee1 ov]  7,b7 ! sum ( ! cr$its 
all[able "u ?is "p 7o!r ?an subp>ts ,c &
 ,j & ?is subp>t74  7#b7 ,c>ryov] (     
unus$ cr$it ,if ! cr$it all[able "u     
subsection 7a7 exce$s ! limitation      
impos$ by p>agraph 7#a7 = su* taxable   
ye>1 su* excess %all be c>ri$ to !      
succe$+ taxable ye> & add$ to ! cr$it   
all[able "u subsection 7a7 = su* taxable
 ye> 7det]m9$ be=e ! application (      
p>agraph 7#a7 = su* succe$+ taxable     
ye>74  7d7 ,def9itions ,= purposes ( ?is
 sub*apt]--  7#a7 ,cr$it all[ance date  
,! t]m cr$it all[ance date means-- 7,a7 
,m>* #ae1  7,b7 ,june #ae1  7,c7        

,septemb] #ae1 &  7,d7 ,decemb] #ae4    
,su* t]m includes ! la/ day on :i* !    
bond is out/&+4  7#b7 ,bond ,! t]m bond 
includes any obligation4  7#c7 ,/ate ,! 
t]m ,/ate includes ! ,di/rict (         
,columbia & any possession ( ! ,unit$   
,/ates4  7#d7 ,available project proce$s
 ,! t]m available project proce$s       
means--  7,a7 ! excess (-- 7i7 ! proce$s
 f ! sale ( an issue1 ov]  7ii7 !       
issuance co/s f9anc$ by ! issue 7to !   
ext5t t su* co/s d n exce$ #b p]c5t (   
su* proce$s71 &  7,b7 ! proce$s f any   
inve/m5t ( ! excess describ$ 9          
subp>agraph 7,a74  7e7 ,cr$it treat$ z  
int]e/ ,= purposes ( ?is subtitle1 !    
cr$it det]m9$ "u subsection 7a7 %all be 
treat$ z int]e/ :i* is includible 9     
gross income4  7f7 ,s corporations &    
p>tn]%ips ,9 ! case ( a qualifi$ zone   
academy bond held by an ,s corporation  
or p>tn]%ip1 ! allocation ( ! cr$it     
all[$ by ?is section to ! %>ehold]s (   
su* corporation or p>tn]s ( su* p>tn]%ip
 %all be treat$ z a di/ribution4  7g7   

,bonds held by real e/ate inve/m5t tru/s
 ,if any qualifi$ zone academy bond is  
held by a real e/ate inve/m5t tru/1 !   
cr$it det]m9$ "u subsection 7a7 %all be 
all[$ to b5efici>ies ( su* tru/ 7& any  
gross income includ$ "u subsection 7e7 )
 respect to su* cr$it %all be di/ribut$ 
to su* b5efici>ies7 "u proc$ures        
prescrib$ by ! ,secret>y4  7h7 ,cr$its  
may be /ripp$ ,"u regulations prescrib$ 
by ! ,secret>y--  7#a7 ,9 g5]al ,!re may
 be a sep>ation 7includ+ at issuance7 ( 
! own]%ip ( a qualifi$ zone academy bond
 & ! entitlem5t to ! cr$it "u ?is       
section ) respect to su* bond4 ,9 case (
 any su* sep>ation1 ! cr$it "u ?is      
section %all be all[$ to ! p]son :o on !
 cr$it all[ance date holds ! in/rum5t   
evid5c+ ! entitlem5t to ! cr$it & n to !
 hold] ( ! bond4  7#b7 ,c]ta9 rules to  
apply ,9 ! case ( a sep>ation describ$ 9
 p>agraph 7#a71 ! rules ( section #abhf 
%all apply to ! qualifi$ zone academy   
bond z if x 7 a /ripp$ bond & to ! cr$it
 "u ?is section z if x 7 a /ripp$ c\pon4

  #ed;,a4 ,qualifi$ zone academy bonds  
7a7 ,9 g5]al ,= purposes ( ?is sub*apt]1
 ! t]m qualifi$ zone academy bond means 
any bond issu$ z "p ( an issue if-- 7#a7
 #ajj p]c5t ( ! available project       
proce$s ( su* issue are to be us$ = a   
qualifi$ purpose ) respect to a qualifi$
 zone academy e/abli%$ by an eligible   
local education ag5cy1  7#b7 ! bond is  
issu$ by a ,/ate or local gov]nm5t )9 ! 
jurisdiction ( :i* su* academy is       
locat$1 &  7#c7 ! issu]--  7,a7         
designates su* bond = purposes ( ?is    
section1  7,b7 c]tifies t x has writt5  
assurances t ! private bus9ess          
contribution requirem5t ( subsection 7b7
 w be met ) respect to su* academy1 &   
7,c7 c]tifies t x has ! writt5 approval 
( ! eligible local education ag5cy = su*
 bond issuance4  7b7 ,private bus9ess   
contribution requirem5t ,= purposes (   
subsection 7a71 ! private bus9ess       
contribution requirem5t ( ?is subsection
 is met ) respect to any issue if !     
eligible local education ag5cy t        

e/abli%$ ! qualifi$ zone academy has    
writt5 commitm5ts f private entities to 
make qualifi$ contributions hav+ a      
pres5t value 7z ( ! date ( issuance ( ! 
issue7 ( n less ?an #aj p]c5t ( !       
proce$s ( ! issue4  7c7 ,limitation on  
am\nt ( bonds designat$  7#a7 ,national 
limitation ,!re is a national zone      
academy bond limitation = ea* cal5d>    
ye>4 ,su* limitation is #djj1jjj1jjj =  
ea* ( cal5d> ye>s #bjbj ?r\gh #bjbi &1  
except z provid$ 9 p>agraph 7#d71 z]o   
!reaft]4  7#b7 ,allocation ( limitation 
,! national zone academy bond limitation
 = a cal5d> ye> %all be allocat$ by !   
,secret>y among ! ,/ates on ! basis ( _!
 respective populations ( individuals   
bel[ ! pov]ty l9e 7z def9$ by ! ,(fice (
 ,managem5t & ,budget74 ,! limitation   
am\nt allocat$ to a ,/ate "u ! prec$+   
s5t5ce %all be allocat$ by ! ,/ate      
education ag5cy to qualifi$ zone        
academies )9 su* ,/ate4  7#c7           
,designation subject to limitation am\nt
 ,! maximum aggregate face am\nt ( bonds

 issu$ dur+ any cal5d> ye> :i* may be   
designat$ "u subsection 7a7 ) respect to
 any qualifi$ zone academy %all n exce$ 
! limitation am\nt allocat$ to su*      
academy "u p>agraph 7#b7 = su* cal5d>   
ye>4  7#d7 ,c>ryov] ( unus$ limitation  
7,a7 ,9 g5]al ,if = any cal5d> ye>--    
7i7 ! limitation am\nt = any ,/ate1     
exce$s  7ii7 ! am\nt ( bonds issu$ dur+ 
su* ye> :i* are designat$ "u subsection 
7a7 ) respect to qualifi$ zone academies
 )9 su* ,/ate1  ! limitation am\nt = su*
 ,/ate = ! foll[+ cal5d> ye> %all be    
increas$ by ! am\nt ( su* excess4  7,b7 
,limitation on c>ryov] ,any c>ry=w>d ( a
 limitation am\nt may be c>ri$ only to !
 fir/ #b ye>s foll[+ ! unus$ limitation 
ye>4 ,= purposes ( ! prec$+ s5t5ce1 a   
limitation am\nt %all be treat$ z us$ on
 a fir/-9 fir/-out basis4  7d7          
,def9itions ,= purposes ( ?is section-- 
7#a7 ,qualifi$ zone academy ,! t]m      
qualifi$ zone academy means any public  
s*ool 7or academic program )9 a public  
s*ool7 :i* is e/abli%$ by & op]at$ "u ! 

sup]vision ( an eligible local education
 ag5cy to provide education or tra9+    
bel[ ! po/second>y level if-- 7,a7 su*  
public s*ool or program 7z ! case may   
be7 is design$ 9 coop]ation ) bus9ess to
 enhance ! academic curriculum1 increase
 graduation & employm5t rates1 & bett]  
prep>e /ud5ts = ! rigors ( college & !  
increas+ly complex work=ce1  7,b7 /ud5ts
 9 su* public s*ool or program 7z ! case
 may be7 w be subject to ! same academic
 /&>ds & assessm5ts z o!r /ud5ts educat$
 by ! eligible local education ag5cy1   
7,c7 ! compreh5sive education plan ( su*
 public s*ool or program is approv$ by !
 eligible local education ag5cy1 &  7,d7
  7i7 su* public s*ool is locat$ 9 an   
emp[]m5t zone or ent]prise community    
7includ+ any su* zone or community      
designat$ aft] ! date ( ! enactm5t ( ?is
 section71 or  7ii7 !re is a reasonable 
expectation 7z ( ! date ( issuance ( !  
bonds7 t at lea/ #ce p]c5t ( ! /ud5ts   
att5d+ su* s*ool or p>ticipat+ 9 su*    
program 7z ! case may be7 w be eligible 

= free or r$uc$-co/ lun*es "u ! s*ool   
lun* program e/abli%$ "u ! ,national    
,s*ool ,lun* ,act4  7#b7 ,eligible local
 education ag5cy ,= purposes ( ?is      
section1 ! t]m eligible local education 
ag5cy means any local educational ag5cy 
z def9$ 9 section #haja ( ! ,elem5t>y & 
,second>y ,education ,act ( #aife4  7#c7
 ,qualifi$ purpose ,! t]m qualifi$      
purpose means1 ) respect to any qualifi$
 zone academy--  7,a7 rehabilitat+ or   
repair+ ! public s*ool facility 9 :i* ! 
academy is e/abli%$1  7,b7 provid+      
equipm5t = use at su* academy1  7,c7    
develop+ c\rse mat]ials = education to  
be provid$ at su* academy1 &  7,d7 tra9+
 tea*]s & o!r s*ool p]sonnel 9 su*      
academy4  7#d7 ,qualifi$ contributions  
,! t]m qualifi$ contribution means any  
contribution 7( a type & quality        
acceptable to ! eligible local education
 ag5cy7 (-- 7,a7 equipm5t = use 9 !     
qualifi$ zone academy 7includ+          
/ate-(-!-art te*nology & vocational     
equipm5t71  7,b7 te*nical assi/ance 9   

develop+ curriculum or 9 tra9+ tea*]s 9 
ord] to promote appropriate m>ket driv5 
te*nology 9 ! classroom1  7,c7 s]vices (
 employees z volunte] m5tors1  7,d7     
int]n%ips1 field trips1 or o!r          
educational opportunities outside !     
academy = /ud5ts1 or  7,e7 any o!r      
prop]ty or s]vice specifi$ by ! eligible
 local education ag5cy4  4  7b7 ,con=m+ 
am5dm5ts  7#a7 ,section #fdja7;b77#a7 ( 
su* ,code is am5d$ by /rik+ & ,g &      
ins]t+ ,g1 & ,h4  7#b7 ,! table (       
subp>ts = "p ,,iv ( sub*apt] ,a ( *apt] 
#a ( su* ,code is am5d$ by at ! end !   
foll[+ new item3  ,subp>t ,h--,cr$it to 
hold]s ( qualifi$ zone academy bonds  4 
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
end+ aft] ,decemb] #ca1 #bjai4