Enterprise Zone Improvements Act of 1989

Enterprise Zone Improvements Act of 1989 - Title I: Housing and Community Development Provisions - Amends the Housing and Community Development Act of 1987 to require each Federal agency that provides special assistance to enterprise zones or that waives or modifies rules within such zones to report to the Congress and to the Secretary of Housing and Urban Development identifying its actions.

Broadens the scope of funding sources for State and local government actions required in connection with tax relief and regulatory simplification in enterprise zones.

Directs Federal agencies to seek to provide special assistance to enterprise zones, including expedited processing, priority funding, program set-asides, and technical assistance.

Authorizes all Federal agencies to waive or modify rules within enterprise zones. (Under current law, only the Secretary of Housing and Urban Development and, in some cases, the Secretary of Agriculture, may do so.)

Adds the promotion of affordable housing and law enforcement as objectives justifying waiver or modification of Federal agency rules in an enterprise zone.

Title II: Federal Income Tax Incentives - Subtitle A: Credits for Employers and Employees - Allows employers located in enterprise zones a nonrefundable income tax credit for qualified increased employment expenditures and employment of the disadvantaged. Sets the credit amount at ten percent of the increase in payroll plus a specified percentage of wages paid to certain disadvantaged workers through the first 20 years of the enterprise zone designation.

Allows a nonrefundable income tax credit to enterprise zone employees for five percent of wages earned. Phases out both credits in the last four years of the enterprise zone designation.

Subtitle B: Credits for Investment in Tangible Property in Enterprise Zones - Allows businesses an additional investment tax credit for investments made in certain enterprise zone construction property. Limits the credit to ten percent for new property, including rental property. Requires the recapture of credit amounts upon the early disposition of the property.

Subtitle C: Nonrecognition of Qualified Enterprise Zone Capital Gain Where Acquisition of Enterprise Zone Business Property - Provides for the nonrecognition of capital gain on the sale of enterprise zone property if, within one year after the sale, the taxpayer acquires qualified replacement property (generally defined as property related to an enterprise zone or to a business within a zone).

Subtitle D: Deduction for Purchase of Enterprise Stock - Allows a taxpayer to deduct up to $100,000 of the aggregate amount paid for the purchase of enterprise stock on its original issue by a qualified issuer.

Requires any gain from the disposition of the stock to be treated as ordinary income.

Subtitle E: Rules Relating to Private Activity Bonds - Declares that: (1) limitations on the cost recovery deductions for property financed with tax-exempt bonds shall not apply to enterprise zone property; and (2) the termination of the small issue exemption shall not apply to bonds whose proceeds are used to finance facilities in enterprise zones.

Subtitle F: Ordinary Loss Deduction for Securities of Enterprise Zone Business Which Become Worthless - Permits an ordinary loss deduction for securities of enterprise zone business that become worthless during the taxable year.

Subtitle G: Increase in Research Credit for Research Conducted in Enterprise Zones - Increases from 20 percent to 37 1/2 percent the tax credit for increasing research conducted in enterprise zones.

Subtitle H: Sense of the Congress with Respect to Tax Simplification - Expresses the sense of the Congress that the Secretary of the Treasury should simplify the administration and enforcement of any provision of the Internal Revenue Code affected by this Act.

Subtitle I: Regulations - Directs the Secretary to issue regulations to carry out the provisions of this Act not later than six months after enactment.

Title III: Establishment of Foreign-Trade Zones in Enterprise Zones - Requires the Foreign-Trade Zone Board to consider on a priority basis and to expedite the processing of applications for the establishment of foreign-trade zones within enterprise zones. Requires the Secretary of the Treasury to give priority to, and expedite applications for, the establishment of ports of entry necessary to establish such zones.

Title IV: Federal Credit and Procurement Assistance - Amends the Housing and Community Development Act of 1987 to authorize the Secretary of Housing and Urban Development to make grants to State and local governments and to public purpose nonprofit corporations to capitalize revolving loan funds to support private sector business development in enterprise zones. Requires recipients to contribute to fund capitalization. Authorizes FY 1991 through 1993 appropriations.

Enumerates actions to be taken by the heads of agencies that make formula allocations to States and local governments in the interest of assisting enterprise zones in participating in and benefiting from Federal procurement, research, and construction activities.

Amends the Office of Federal Procurement Policy Act to require executive agencies expressly to consider enterprise zones when determining the location of new Federal buildings and related construction activities each fiscal year.