,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fddc ,,in ,,the ,,house ,,of ,,representatives ,april #c1 #bjbj,miss ,gonzlez-,coln of ,puerto ,rico 7for herself1 ,mr4 ,gallego1 ,mr4 ,king of ,new ,york1 ,ms4 ,shalala1 and ,mr4 ,soto7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to secure the national supply chain by providing tax incentives in economically distressed areas of the ,united ,states and its possessions4 #a4 ,short title ,this ,act may be cited as the ,securing the ,national ,supply ,chain ,act of #bjbj4 #b4 ,economically distressed zones 7a7 ,in general ,chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,,aa ,economically ,distressed ,zones ,sec4 #adjj;,,aa-#a4 ,economically distressed zone credit4 ,sec4 #adjj;,,aa-#b4 ,designation of economically distressed zones4 #adjj;,,aa-#a4 ,economically ,distressed ,zone credit 7a7 ,allowance of credit ,there shall be allowed as a credit against the tax imposed by subtitle ,a for the taxable year an amount equal to the sum of-- 7#a7 an amount equal to #dj percent of the sum of-- 7,a7 the aggregate amount of the taxpayer's economically distressed zone wages for such taxable year1 plus 7,b7 the allocable employee fringe benefit expenses of the taxpayer for such taxable year1 7#b7 an amount equal to #dj percent of the depreciation and amortization allowances for the taxable year with respect to property of the taxpayer which are located and used in the active conduct of a trade or business within an economically distressed zone1 and 7#c7 an amount equal to #cj percent of the payments made by the taxpayer in course of a trade or business for purchases of services or tangible property from an unrelated person 7#dj percent in the case of such a purchase from an unrelated minority business7 located within an economically distressed zone4 7b7 ,denial of double benefit ,any wages or other expenses taken into account in determining the credit under this section may not be taken into account in determining the credit under sections #da1 and any other provision determined by the ,secretary to be substantially similar4 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,qualified economically distressed zone wages 7,a7 ,in general ,the term qualified economically distressed zone wages means amounts paid or incurred by the taxpayer for the taxable year which are-- 7i7 in connection with the active conduct of a trade or business of the taxpayer within an economically distressed zone1 and 7ii7 for wages of an employee for services provided1 and the principal place of employment of whom is1 in such economically distressed zone4 7,b7 ,limitation on amount of wages taken into account 7i7 ,in general ,the amount of wages which may be taken into account under subparagraph 7,a7 with respect to any employee for any taxable year shall not exceed the contribution and benefit base determined under section #bcj of the ,social ,security ,act for the calendar year in which such taxable year begins4 7ii7 ,treatment of part-time employees1 etc ,if-- 7,i7 any employee is not employed by the taxpayer on a substantially full-time basis at all times during the taxable year1 or 7,,ii7 the principal place of employment of any employee is not within an economically distressed zone at all times during the taxable year1 the limitation applicable under clause 7i7 with respect to such employee shall be the appropriate portion 7as determined by the ,secretary7 of the limitation which would otherwise be in effect under clause 7i74 7,c7 ,treatment of certain employees ,the term qualified economically distressed zone wages shall not include any wages paid to employees who are assigned by the employer to perform services for another person1 unless the principal trade or business of the employer is to make employees available for temporary periods to other persons in return for compensation4 7#b7 ,allocable employee fringe benefit expenses 7,a7 ,in general ,the term allocable employee fringe benefit expenses means the aggregate amount allowable as a deduction under this chapter to the taxpayer for the taxable year for the following amounts which are allocable to employment in an economically distressed zone3 7i7 ,employer contributions under a stock bonus1 pension1 profit-sharing1 or annuity plan4 7ii7 ,employer-provided coverage under any accident or health plan for employees4 7iii7 ,the cost of life or disability insurance provided to employees4 7,b7 ,allocation ,for purposes of subparagraph 7,a71 an amount shall be treated as allocable to an economically distressed zone only if such amount is with respect to employment of an individual for services provided1 and the principal place of employment of whom is1 in such zone4 7#c7 ,minority business 7,a7 ,in general ,the term minority business means-- 7i7 a sole proprietorship carried on by a qualified individual1 or 7ii7 a corporation or partnership-- 7,i7 at least #ej percent of the ownership interests in which are held by one or more qualified individuals1 and 7,,ii7 of which a qualified individual is the president or chief executive officer 7or a substantially equivalent position74 7,b7 ,qualified individual ,the term qualified individual means any individual who-- 7i7 is of ,asian-,indian1 ,asian-,pacific1 ,black1 ,hispanic or ,native ,american origin or descent1 and 7ii7 is a ,united ,states citizen or legal resident of the ,united ,states or any of its territories or possessions4 7#d7 ,aggregation rules 7,a7 ,in general ,members of an affiliated group shall be treated as a single taxpayer4 7,b7 ,affiliated group ,the term qualified group means an affiliated group 7as defined in section #aejd7;a71 determined without regard to section #aejd7;b77#c77 one or more members of which are engaged in the active conduct of a trade or business within an economically distressed zone4 7,c7 ,related persons ,persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section #eb7;b74 7d7 ,special rules ,to secure the national supply chain 7#a7 ,in general ,in the case of a qualified manufacturing facility1 subsection 7a7 shall be applied-- 7,a7 by substituting #ej percent for #dj percent each place it appears therein1 and 7,b7 by substituting #ej percent for #cj percent in paragraph 7#c7 therein4 7#b7 ,qualified manufacturing facility ,for purposes of this subsection1 the term qualified manufacturing facility means any manufacturing facility if-- 7,a7 such manufacturing facility produces property required to be maintained in the strategic national stockpile under section #cai;,f-#b of the ,public ,health ,service ,act1 and 7,b7 the production of such manufacturing facility is moved to the ,united ,states 7including any possession of the ,united ,states7 from a foreign country that the ,united ,states ,trade ,representative has determined could pose a risk to the national supply chain because of political or social factors4 #adjj;,,aa-#b4 ,designation of economically distressed zones 7a7 ,in general ,for purposes of this subchapter1 the term economically distressed zone means any population census tract which-- 7#a7 has a poverty rate of not less than #ce percent for each of the #e most recent calendar years for which information is available1 or 7#b7 satisfies each of the following requirements3 7,a7 has pervasive poverty1 unemployment1 low labor force participation1 and general distress measured as a prolonged period of economic decline measured by real gross national product1 7,b7 has a poverty rate of not less than #cj percent1 and 7,c7 has been designated as such by the ,secretary and the ,secretary of ,commerce pursuant to an application under subsection 7b74 7b7 ,application for designation 7#a7 ,in general ,an application for designation as an economically distressed zone may be filed by a ,state or local government in which the population census tract to which the application applies is located4 7#b7 ,requirements ,such application shall include a strategic plan for accomplishing the purposes of this subchapter1 which-- 7,a7 describes the coordinated economic1 human1 community1 and physical development plan and related activities proposed for the nominated area1 7,b7 describes the process by which the affected community is a full partner in the process of developing and implementing the plan and the extent to which local institutions and organizations have contributed to the planning process1 7,c7 identifies the amount of ,state1 local1 and private resources that will be available in the nominated area and the private_/public partnerships to be used1 which may include participation by1 and cooperation with1 universities1 medical centers1 and other private and public entities1 7,d7 identifies the funding requested under any ,federal program in support of the proposed economic1 human1 community1 and physical development and related activities1 7,e7 identifies baselines1 methods1 and benchmarks for measuring the success of carrying out the strategic plan1 including the extent to which poor persons and families will be empowered to become economically self-sufficient1 and 7,f7 does not include any action to assist any establishment in relocating from one area outside the nominated area to the nominated area1 except that assistance for the expansion of an existing business entity through the establishment of a new branch1 affiliate1 or subsidiary is permitted if-- 7i7 the establishment of the new branch1 affiliate1 or subsidiary will not result in a decrease in employment in the area of original location or in any other area where the existing business entity conducts business operations1 7ii7 there is no reason to believe that the new branch1 affiliate1 or subsidiary is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where the existing business entity conducts business operation1 and 7iii7 includes such other information as may be required by the ,secretary and the ,secretary of ,commerce4 7c7 ,period for which designations are in effect ,designation as an economically distressed zone may be made at any time during the #aj-year period beginning on the date of the enactment of this section1 and shall remain in effect with respect to such zone during the #ae-year period beginning on the date of such designation4 ,economically distressed zones described in subsection 7a77#a7 shall take effect on the date of the enactment of this ,act and shall remain in effect during the #ae-year period beginning on such date4 7d7 ,territories and possessions ,the term ,state includes territories and possessions of the ,united ,states4 7e7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including-- 7#a7 not later than #cj days after the date of the enactment of this section1 a list of the population census tracts described in subsection 7a77#a71 and 7#b7 not later than #fj days after the date of the enactment of this section1 regulations or other guidance regarding the designation of population census tracts described in subsection 7a77#b74 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4