,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #fddc ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #c1 #bjbj,miss ,gonzlez-,coln ( ,pu]to ,rico 7= h]self1 ,mr4 ,gallego1 ,mr4 ,k+ ( ,new ,york1 ,ms4 ,%alala1 & ,mr4 ,soto7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to secure ! national supply *a9 by provid+ tax inc5tives 9 economically di/ress$ areas ( ! ,unit$ ,/ates & its possessions4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,secur+ ! ,national ,supply ,*a9 ,act ( #bjbj4 #b4 ,economically di/ress$ zones 7a7 ,9 g5]al ,*apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new sub*apt]3 ,,aa ,economically ,di/ress$ ,zones ,sec4 #adjj;,,aa-#a4 ,economically di/ress$ zone cr$it4 ,sec4 #adjj;,,aa-#b4 ,designation ( economically di/ress$ zones4 #adjj;,,aa-#a4 ,economically ,di/ress$ ,zone cr$it 7a7 ,all[ance ( cr$it ,!re %all be all[$ z a cr$it aga9/ ! tax impos$ by subtitle ,a = ! taxable ye> an am\nt equal to ! sum (-- 7#a7 an am\nt equal to #dj p]c5t ( ! sum (-- 7,a7 ! aggregate am\nt ( ! taxpay]'s economically di/ress$ zone wages = su* taxable ye>1 plus 7,b7 ! allocable employee fr+e b5efit exp5ses ( ! taxpay] = su* taxable ye>1 7#b7 an am\nt equal to #dj p]c5t ( ! depreciation & amortization all[ances = ! taxable ye> ) respect to prop]ty ( ! taxpay] :i* are locat$ & us$ 9 ! active conduct ( a trade or bus9ess )9 an economically di/ress$ zone1 & 7#c7 an am\nt equal to #cj p]c5t ( ! paym5ts made by ! taxpay] 9 c\rse ( a trade or bus9ess = pur*ases ( s]vices or tangible prop]ty f an unrelat$ p]son 7#dj p]c5t 9 ! case ( su* a pur*ase f an unrelat$ m9ority bus9ess7 locat$ )9 an economically di/ress$ zone4 7b7 ,d5ial ( d\ble b5efit ,any wages or o!r exp5ses tak5 into acc\nt 9 det]m9+ ! cr$it "u ?is section may n be tak5 into acc\nt 9 det]m9+ ! cr$it "u sections #da1 & any o!r provision det]m9$ by ! ,secret>y to be sub/antially simil>4 7c7 ,def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,qualifi$ economically di/ress$ zone wages 7,a7 ,9 g5]al ,! t]m qualifi$ economically di/ress$ zone wages means am\nts paid or incurr$ by ! taxpay] = ! taxable ye> :i* are-- 7i7 9 connection ) ! active conduct ( a trade or bus9ess ( ! taxpay] )9 an economically di/ress$ zone1 & 7ii7 = wages ( an employee = s]vices provid$1 & ! pr9cipal place ( employm5t ( :om is1 9 su* economically di/ress$ zone4 7,b7 ,limitation on am\nt ( wages tak5 into acc\nt 7i7 ,9 g5]al ,! am\nt ( wages :i* may be tak5 into acc\nt "u subp>agraph 7,a7 ) respect to any employee = any taxable ye> %all n exce$ ! contribution & b5efit base det]m9$ "u section #bcj ( ! ,social ,security ,act = ! cal5d> ye> 9 :i* su* taxable ye> beg9s4 7ii7 ,treatm5t ( "p-"t employees1 etc ,if-- 7,i7 any employee is n employ$ by ! taxpay] on a sub/antially full-"t basis at all times dur+ ! taxable ye>1 or 7,,ii7 ! pr9cipal place ( employm5t ( any employee is n )9 an economically di/ress$ zone at all times dur+ ! taxable ye>1 ! limitation applicable "u clause 7i7 ) respect to su* employee %all be ! appropriate portion 7z det]m9$ by ! ,secret>y7 ( ! limitation :i* w\ld o!rwise be 9 effect "u clause 7i74 7,c7 ,treatm5t ( c]ta9 employees ,! t]m qualifi$ economically di/ress$ zone wages %all n include any wages paid to employees :o are assign$ by ! employ] to p]=m s]vices = ano!r p]son1 unless ! pr9cipal trade or bus9ess ( ! employ] is to make employees available = tempor>y p]iods to o!r p]sons 9 return = comp5sation4 7#b7 ,allocable employee fr+e b5efit exp5ses 7,a7 ,9 g5]al ,! t]m allocable employee fr+e b5efit exp5ses means ! aggregate am\nt all[able z a d$uction "u ?is *apt] to ! taxpay] = ! taxable ye> = ! foll[+ am\nts :i* are allocable to employm5t 9 an economically di/ress$ zone3 7i7 ,employ] contributions "u a /ock bonus1 p5sion1 pr(it-%>+1 or annuity plan4 7ii7 ,employ]-provid$ cov]age "u any accid5t or heal? plan = employees4 7iii7 ,! co/ ( life or disability insurance provid$ to employees4 7,b7 ,allocation ,= purposes ( subp>agraph 7,a71 an am\nt %all be treat$ z allocable to an economically di/ress$ zone only if su* am\nt is ) respect to employm5t ( an individual = s]vices provid$1 & ! pr9cipal place ( employm5t ( :om is1 9 su* zone4 7#c7 ,m9ority bus9ess 7,a7 ,9 g5]al ,! t]m m9ority bus9ess means-- 7i7 a sole proprietor%ip c>ri$ on by a qualifi$ individual1 or 7ii7 a corporation or p>tn]%ip-- 7,i7 at lea/ #ej p]c5t ( ! own]%ip int]e/s 9 :i* are held by "o or m qualifi$ individuals1 & 7,,ii7 ( :i* a qualifi$ individual is ! presid5t or *ief executive (fic] 7or a sub/antially equival5t position74 7,b7 ,qualifi$ individual ,! t]m qualifi$ individual means any individual :o-- 7i7 is ( ,asian-,indian1 ,asian-,pacific1 ,black1 ,hispanic or ,native ,am]ican orig9 or desc5t1 & 7ii7 is a ,unit$ ,/ates citiz5 or legal resid5t ( ! ,unit$ ,/ates or any ( its t]ritories or possessions4 7#d7 ,aggregation rules 7,a7 ,9 g5]al ,memb]s ( an affiliat$ gr\p %all be treat$ z a s+le taxpay]4 7,b7 ,affiliat$ gr\p ,! t]m qualifi$ gr\p means an affiliat$ gr\p 7z def9$ 9 section #aejd7;a71 det]m9$ )\t reg>d to section #aejd7;b77#c77 "o or m memb]s ( :i* are engag$ 9 ! active conduct ( a trade or bus9ess )9 an economically di/ress$ zone4 7,c7 ,relat$ p]sons ,p]sons %all be treat$ z relat$ to ea* o!r if su* p]sons w\ld be treat$ z a s+le employ] "u ! regulations prescrib$ "u section #eb7;b74 7d7 ,special rules ,to secure ! national supply *a9 7#a7 ,9 g5]al ,9 ! case ( a qualifi$ manufactur+ facility1 subsection 7a7 %all be appli$-- 7,a7 by sub/itut+ #ej p]c5t = #dj p]c5t ea* place x appe>s !re91 & 7,b7 by sub/itut+ #ej p]c5t = #cj p]c5t 9 p>agraph 7#c7 !re94 7#b7 ,qualifi$ manufactur+ facility ,= purposes ( ?is subsection1 ! t]m qualifi$ manufactur+ facility means any manufactur+ facility if-- 7,a7 su* manufactur+ facility produces prop]ty requir$ to be ma9ta9$ 9 ! /rategic national /ockpile "u section #cai;,f-#b ( ! ,public ,heal? ,s]vice ,act1 & 7,b7 ! production ( su* manufactur+ facility is mov$ to ! ,unit$ ,/ates 7includ+ any possession ( ! ,unit$ ,/ates7 f a =eign c\ntry t ! ,unit$ ,/ates ,trade ,repres5tative has det]m9$ c\ld pose a risk to ! national supply *a9 because ( political or social factors4 #adjj;,,aa-#b4 ,designation ( economically di/ress$ zones 7a7 ,9 g5]al ,= purposes ( ?is sub*apt]1 ! t]m economically di/ress$ zone means any population c5sus tract :i*-- 7#a7 has a pov]ty rate ( n less ?an #ce p]c5t = ea* ( ! #e mo/ rec5t cal5d> ye>s = :i* in=mation is available1 or 7#b7 satisfies ea* ( ! foll[+ requirem5ts3 7,a7 has p]vasive pov]ty1 unemploym5t1 l[ labor =ce p>ticipation1 & g5]al di/ress measur$ z a prolong$ p]iod ( economic decl9e measur$ by real gross national product1 7,b7 has a pov]ty rate ( n less ?an #cj p]c5t1 & 7,c7 has be5 designat$ z su* by ! ,secret>y & ! ,secret>y ( ,comm]ce pursuant to an application "u subsection 7b74 7b7 ,application = designation 7#a7 ,9 g5]al ,an application = designation z an economically di/ress$ zone may be fil$ by a ,/ate or local gov]nm5t 9 :i* ! population c5sus tract to :i* ! application applies is locat$4 7#b7 ,requirem5ts ,su* application %all include a /rategic plan = accompli%+ ! purposes ( ?is sub*apt]1 :i*-- 7,a7 describes ! coord9at$ economic1 human1 community1 & physical developm5t plan & relat$ activities propos$ = ! nom9at$ area1 7,b7 describes ! process by :i* ! affect$ community is a full p>tn] 9 ! process ( develop+ & implem5t+ ! plan & ! ext5t to :i* local in/itutions & organizations h contribut$ to ! plann+ process1 7,c7 id5tifies ! am\nt ( ,/ate1 local1 & private res\rces t w be available 9 ! nom9at$ area & ! private_/public p>tn]%ips to be us$1 :i* may include p>ticipation by1 & coop]ation )1 univ]sities1 m$ical c5t]s1 & o!r private & public entities1 7,d7 id5tifies ! fund+ reque/$ "u any ,f$]al program 9 support ( ! propos$ economic1 human1 community1 & physical developm5t & relat$ activities1 7,e7 id5tifies basel9es1 me?ods1 & b5*m>ks = measur+ ! success ( c>ry+ out ! /rategic plan1 includ+ ! ext5t to :i* poor p]sons & families w be emp[]$ to become economically self-suffici5t1 & 7,f7 does n include any action to assi/ any e/abli%m5t 9 relocat+ f "o area outside ! nom9at$ area to ! nom9at$ area1 except t assi/ance = ! expansion ( an exi/+ bus9ess entity ?r\gh ! e/abli%m5t ( a new bran*1 affiliate1 or subsidi>y is p]mitt$ if-- 7i7 ! e/abli%m5t ( ! new bran*1 affiliate1 or subsidi>y w n result 9 a decrease 9 employm5t 9 ! area ( orig9al location or 9 any o!r area :]e ! exi/+ bus9ess entity conducts bus9ess op]ations1 7ii7 !re is no reason to believe t ! new bran*1 affiliate1 or subsidi>y is be+ e/abli%$ ) ! int5tion ( clos+ d[n ! op]ations ( ! exi/+ bus9ess entity 9 ! area ( its orig9al location or 9 any o!r area :]e ! exi/+ bus9ess entity conducts bus9ess op]ation1 & 7iii7 includes su* o!r in=mation z may be requir$ by ! ,secret>y & ! ,secret>y ( ,comm]ce4 7c7 ,p]iod = :i* designations are 9 effect ,designation z an economically di/ress$ zone may be made at any "t dur+ ! #aj-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is section1 & %all rema9 9 effect ) respect to su* zone dur+ ! #ae-ye> p]iod beg9n+ on ! date ( su* designation4 ,economically di/ress$ zones describ$ 9 subsection 7a77#a7 %all take effect on ! date ( ! enactm5t ( ?is ,act & %all rema9 9 effect dur+ ! #ae-ye> p]iod beg9n+ on su* date4 7d7 ,t]ritories & possessions ,! t]m ,/ate includes t]ritories & possessions ( ! ,unit$ ,/ates4 7e7 ,regulations ,! ,secret>y %all issue su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is section1 includ+-- 7#a7 n lat] ?an #cj days aft] ! date ( ! enactm5t ( ?is section1 a li/ ( ! population c5sus tracts describ$ 9 subsection 7a77#a71 & 7#b7 n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is section1 regulations or o!r guidance reg>d+ ! designation ( population c5sus tracts describ$ 9 subsection 7a77#b74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjai4