Business and Urban Partnership Act

TABLE OF CONTENTS:

Title I: Designation of Targeted Urban Areas

Title II: Federal Income Tax Incentives

Title III: Regulatory Flexibility

Title IV: Establishment of Foreign-Trade Zones in

Targeted Urban Areas

Title V: Repeal of Title VII of the Housing and

Community Development Act of 1987

Business and Urban Partnership Act - Title I: Designation of Targeted Urban Areas - Amends the Internal Revenue Code to provide for the designation of targeted urban areas by the Secretary of Housing and Urban Development.

Requires such areas to be within the jurisdiction of a qualified city and to have a required course of action designed to reduce the various burdens borne by employers or employees in the area, including tax relief and regulatory belief.

Requires the Secretary to report biennially to the Congress on the effects of targeted urban areas designations.

Provides for the coordination of such designations with relocation assistance programs and environmental policy.

Title II: Federal Income Tax Incentives - Amends the Internal Revenue Code to allow a refundable tax credit to area employers for 50 percent of the qualified expenses of: (1) employee accident or health plan coverage; (2) employee dependent care assistance; and (3) employee job training expenses.

Allows employers to treat the cost of qualified area property as an expense which is not chargeable to capital account. Allows such cost as a deduction for the year in which the property is placed in service.

Allows an individual a deduction for the amount paid for the purchase of targeted urban area stock. Imposes an interest charge if such stock is disposed of within five years of its purchase. Limits area stock in a corporation to $5 million.

Requires the allocating commission of a targeted area to make allocations of credit amounts, expense treatment amounts, and area stock deduction amounts. Provides for determining limitations on such amounts.

Allows targeted urban area incentives in determining the alternative minimum tax.

Title III: Regulatory Flexibility - Revises the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified business, government, and nonprofit enterprises operating within targeted urban areas.

Provides for the waiver or modification of agency rules in targeted areas in order to further the job creation, community development, or economic revitalization objectives within such areas.

Authorizes the Secretary to convene regional and local coordinating councils of appropriate agencies to assist State and local governments in achieving the required course of action.

Title IV: Establishment of Foreign-Trade Zones in Targeted Urban Areas - Requires targeted areas to receive priority in the designation of foreign trade zones.

Title V: Repeal of Title VII of the Housing and Community Development Act of 1987 - Repeals title VII (enterprise zone development) of the Housing and Community Development Act of 1987.