The House Committee on Ways and Means Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA) has announced a hearing on tax incentives for distressed communities on Wednesday, October 7, 2009. The hearing will focus on tax incentives for distressed communities, including the Empowerment Zone and Renewal Communities programs, which expire on December 31, 2009.
BACKGROUND:
The Empowerment Zones and Enterprise Communities program was established by the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66). The Community Renewal Act of 2000 (P.L. 106-554) further expanded the program, creating new Renewal Communities not covered under the prior program. Businesses that locate within these zones may receive tax benefits, including employment credits for hiring workers from the designated area, expensing for certain capital purchases, and tax-exempt financing, among other tax and non-tax benefits. The communities are targeted based on pervasive poverty, economic stagnation, and high unemployment. Communities are nominated by state and local governments and selected based on a competitive process, which includes a review of commitments by the state and local governments to attract business and new investment.
While the programs are due to expire at the end of 2009, President Obama requested that Congress extend these programs for one year in the Fiscal Year 2010 budget.In announcing the hearing, Chairman Neal stated, “For our economy to continue its recovery, our nation’s cities and urban centers must remain vibrant, thriving and prosperous. On a Federal level, it is essential that we continue to invest in America’s cities to help stimulate economic growth and job creation. That investment must include our most distressed and disadvantaged communities which have been hardest hit by the recession. And offering tax incentives is one way we can encourage businesses to make a real commitment to these communities. In cities and urban centers across the country, they have given countless Americans renewed hope and opportunity. With these important tax credits expiring at the end of the year, it is the right moment for this Subcommittee to discuss their extension.”
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Please Note: Any person(s) and/or organization(s) wishing to submit for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select “Committee Hearings.” Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, complete all informational forms and click “submit” on the final page. ATTACH your submission as a Word or WordPerfect document, in compliance with the formatting requirements listed below, by close of business October 21, 2009. Finally, please note that due to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225-1721.
