To amend the Internal Revenue Code of 1986 to provide tax incentives with respect to enterprise zones and areas affected by military base closings or reductions in military base employment.

TABLE OF CONTENTS:

Title I: Provisions Relating to Distressed Urban and Rural

Areas

Subtitle A: Designation and Tax Incentives

Subtitle B: Redevelopment Bonds for Tax Enterprise

Zones

Title II: Areas Affected by Military Base Closings or

Reductions in Military Base Employment Treated as

Enterprise Zones

Title I: Provisions Relating to Distressed Urban and Rural Areas - Declares it to be the purpose of this title 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 1991 and before 1997: (1) by the Secretary of Housing and Urban Development, in the case of an urban tax enterprise zone; and (2) by the Secretary of Agriculture, 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. Makes areas within Indian reservations ineligible for such designations.

Allows an enterprise zone employment credit as a general business credit of 15 percent of the qualified zone wages.

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

Excludes from gross income 50 percent of qualified capital gain recognized on the sale or exchange of a new qualified zone asset held for more than five 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.

Title II: Areas Affected by Military Base Closings or Reductions in Military Base Employment Treated as Enterprise Zones - Treats the following as tax enterprise zones for purposes of tax incentives set forth in this Act: (1) military installations selected for closure or substantial realignment under a base closure law; and (2) so much of the area around such installations as the Secretary of Commerce determines is adversely affected by closure or realignment. Provides that such zones shall be in addition to those designated under title I.