Enterprise Zone and Model Neighborhood Aid Act of 1993

TABLE OF CONTENTS:

Title I: Urban Tax Enterprise Zones and Rural Development

Investment Zones

Subtitle A: Designation and Tax Incentives

Subtitle B: Redevelopment Bonds for Tax

Enterprise Zones

Subtitle C: Expansion of Targeted Jobs Credit

Subtitle D: Credit for Contributions to

Certain Community Development Corporations

Subtitle E: Authority for National Banks To

To Deal in Securities of Corporations Located in Tax

Enterprise Zones

Subtitle F: Report on Number of Areas Meeting

Enterprise Zone Criteria

Title II: Additional Assistance to Enterprise Zones and Other

Distressed Communities

Subtitle A: National Public-Private Partnership Program

Subtitle B: Coordinated and Comprehensive Neighborhood

Aid for Tax Enterprise Zones and Other Communities

Subtitle C: Community Development Block Grant Program

Subtitle D: Young Adult Employment Demonstration Program

Subtitle E: National Community Economic Partnership

Subtitle F: Miscellaneous Programs

Enterprise Zone and Model Neighborhood Aid Act of 1993 - Title I: Urban Tax Enterprise Zones and Rural Development Investment Zones - Declares it to be the purpose of this Act to establish a demonstration program of providing incentives for the creation of tax enterprise zones in order to: (1) revitalize economically and physically distressed areas; (2) promote meaningful employment for zone residents; and (3) encourage individuals to reside in the zones in which they are employed.

Subtitle A: Designation and Tax Incentives - Amends the Internal Revenue Code to provide for the designation of tax enterprise zones during calendar years after 1992 and before 1997: (1) by the Secretary of Housing and Urban Development (HUD), in the case of an urban tax enterprise zone; and (2) by the Secretary of Agriculture, in consultation with the Secretary of Commerce, in the case of a rural development investment zone.

Sets forth the eligibility criteria for such designation for urban tax enterprise zones and for rural development investment zones.

Allows an enterprise zone employment credit to small employers and tax-exempt organizations as a general business credit of 15 percent of the qualified zone wages. Allows such credit for the first five years of the employee's employment.

Allows a deduction for the purchase of enterprise zone stock of 50 percent of the amount paid in cash.

Provides a formula for the nonrecognition of certain gain on the sale or exchange of a new qualified zone asset held for more than ten years.

Subtitle B: Redevelopment Bonds for Tax Enterprise Zones - Sets forth special rules for tax-exempt redevelopment bonds which provide financing for tax enterprise zones for the first 60-month period after a zone is so designated.

Subtitle C: Expansion of Targeted Jobs Credit - Includes economically disadvantaged zone residents as members of a targeted group.

Subtitle D: Credit for Contributions to Certain Community Development Corporations - Allows a general business tax credit for five percent of contributions to selected community development corporations to provide employment of, and business opportunities for, low-income individuals who are residents of the operational area of the community.

Subtitle E: Authority for National Banks to Deal in Securities of Corporations Located in Tax Enterprise Zones - Authorizes national banks which meet minimum capital requirements and are located in tax enterprise zones to deal in securities of corporations located in such zones.

Subtitle F: Report on Number of Areas Meeting Enterprise Zone Criteria - Directs the Secretary of the Treasury to report to the Congress on the number of areas which satisfy the tax enterprise zone eligibility criteria and the estimated cost to the Government if all such areas were designated as tax enterprise zones.

Title II: Additional Assistance to Enterprise Zones And Other Distressed Communities - Subtitle A: National Public-Private Partnership Programs - Expresses the sense of the Congress that public-private partnerships between government and community-based organizations offer an opportunity to empower residents of low-income distressed communities and to forge innovative solutions to the challenges confronting these communities, and that increased resources should be invested in such partnerships.

Authorizes appropriations to promote certain national public-private partnerships for FY 1993 through 2002. Specifies amounts to be available only for projects or activities that directly and principally benefit the residents of tax enterprise zones.

Subtitle B: Coordinated and Comprehensive Neighborhood Aid for Tax Enterprise Zones and Other Communities - Chapter 1: Enterprise Community Block Grant Demonstration Program - Authorizes appropriations for FY 1993 through 2002 for the Interagency Council for Neighborhood Aid to carry out the Enterprise Community Block Grant Demonstration Program. Requires such program to provide assistance on behalf of each tax enterprise zone which has a neighborhood aid plan. Provides for the allocation and use of such amounts for carrying out selected programs within such zones.

Chapter 2: Model Neighborhood Aid Program - Requires the Interagency Council to carry out a program to provide assistance to local governments to fund and implement eligible programs.

Chapter 3: Eligible Programs and Interagency Council for Neighborhood Aid - Specifies the eligible programs in the areas of: (1) crime and criminal justice; (2) job training; (3) education; (4) health, nutrition and family assistance; and (5) housing and community development. Sets forth requirements for applying for funding.

Establishes the Interagency Council for Neighborhood Aid to provide administrative assistance for functions under this title. Requires the Council, one year after enactment of this Act, to report to the Congress on: (1) any alternative methods or systems for allocation of amounts made available for enterprise zones; and (2) any problems experienced in the implementation and administration of this subtitle.

Subtitle C: Community Development Block Grant Program - Amends the Housing and Community Development Act of 1974 to raise the cap on assistance under the community development block grant program for units of general local government located within or containing an urban tax enterprise zone.

Authorizes the Secretary of HUD to make loan guarantees for such units of local government for development activities.

Subtitle D: Young Adult Employment Demonstration Program - Amends the Job Training Partnership Act to establish the young adult employment demonstration program to assist young adults with education, job training, and employment services in tax enterprise zones.

Subtitle E: National Community Economic Partnership - National Community Economic Partnership Act of 1993 - Authorizes the Secretary of Health and Human Services to provide assistance to States to carry out State plans for assistance to community development corporations. Describes the assistance available through nonrefundable lines of credit or grants.

Subtitle F: Miscellaneous Programs - Enterprise Capital Access Fund Demonstration Program - Establishes a demonstration program to provide loans and technical assistance grants to nonprofit financial intermediaries in order to finance business and employment opportunities, low-income housing opportunities, and neighborhood revitalization projects.

Directs the Secretary of Labor, in consultation with the Secretary of Transportation, to establish a Reverse Commuting Demonstration Program to test the effects of assisting residents of poor inner-city areas to commute to job sites in other areas of the city or surrounding suburbs.