Saving Our Children: The American Community Renewal Act of 1996

TABLE OF CONTENTS:

Title I: Designation and Treatment of Renewal Communities

Title II: Additional Tax Provisions

Title IV (sic): Low-Income Educational Opportunity

Scholarship Program

Title III (sic): Prevention and Treatment of Substance Abuse

Title V (sic): CRA Credit for Investments in Community

Development Organizations Located in Renewal Communities

Saving Our Children: The American Community Renewal Act of 1996 - Title I: Designation and Treatment of Renewal Communities - Renewing American Communities Act of 1996 - Amends the Internal Revenue Code to create a new subchapter on renewal communities (RCs), authorizing designation of not more than 100 areas as RCs if: (1) the areas have pervasive poverty, unemployment, and general distress and meet other requirements; and (2) State and local governments agree to take actions such as tax reduction, crime reduction strategies, and reducing, repealing, or not enforcing within the area certain governmental requirements such as licensing, zoning, and permits. Sets forth special rules for empowerment zones and enterprise communities designated as RCs.

Excludes from gross income the capital gain from an RC stock, business property, or partnership interest held more than five years.

Allows a deduction for the purchase of RC stock.

Allows a deduction to any qualified individual or other person for amounts paid in cash to a family development account for the individual's benefit. Allows family development account use for postsecondary education, first home purchase, business capitalization, medical expenses, and qualified rollovers. Excludes family development accounts from taxation. Requires that the individual resided in an RC and was allowed an earned income credit for the preceding taxable year.

Authorizes designation of not more than 25 RCs as FDA matching demonstration areas. Mandates, to the extent provided in appropriations Acts, depositing into each individual's account the amount deposited into that individual's family development account during the year.

Sets the commercial revitalization credit (established below) at 20 to 50 percent of the revitalization expenditures regarding a revitalization building.

Increases, for an RC business, the dollar limit on expensing certain depreciable business assets.

(Sec. 105) Requires that any: (1) reduction in taxes regarding any RC be disregarded in determining the eligibility of a State or local government for, or the amount of, any assistance or benefits under any U.S. law other than the subchapter created by this title; and (2) RC be treated for all Federal law purposes as a labor surplus area.

(Sec. 106) Allows a deduction for deposits to family development accounts and a credit for commercial revitalization expenditures.

Title II: Additional Tax Provisions - Decreases the targeted jobs credit percentage and revises the list of targeted groups and related definitions. Renames the credit as the work opportunity credit.

(Sec. 202) Allows an individual a credit for 75 percent of the contributions to an organization: (1) described in Internal Revenue Code section 501(c)(3) (charitable, etc., organizations); (2) primarily assisting poor individuals; and (3) meeting other requirements, including limitations on political activity.

(Sec. 203) Allows a charitable contribution deduction to an individual who does not itemize deductions.

Title IV (sic): Low-Income Educational Opportunity Scholarship Program - Low-Income Educational Opportunity Act of 1996 - Requires an RC to establish and operate a Low-Income Educational Opportunity Scholarship program to: (1) provide RC families a choice of schools; and (2) provide assistance for attending public and private elementary and secondary schools, including religious schools.

(Sec. 408) Requires that children attending: (1) private schools receive assistance for tuition, fees, and transportation; and (2) alternative public schools receive assistance for transportation.

(Sec. 409) Sets forth school eligibility requirements.

(Sec. 410) Declares that a scholarship under this title is an award of aid to a family, not to a school or institution.

Prohibits deeming scholarships as parental income for Federal income tax purposes or for determining eligibility for other Federal programs.

Requires, if a State law or constitution does not allow the expenditure of State or local funds by religious organizations, that the RC segregate Federal funds from State or other public funds.

(Sec. 415) Requires that any constitutional challenge to the program be tried immediately in U.S. District Court and provides for a right of immediate appeal to the U.S. Supreme Court.

(Sec. 417) Authorizes appropriations.

Title III (sic): Prevention and Treatment of Substance Abuse - Amends the Public Health Service Act (PHSA) to declare that these provisions apply to each program under the PHSA that makes Federal awards to prevent or treat substance abuse.

Allows, notwithstanding any other provision of law, a religious organization (RO) to be an award recipient, make subawards, provide services through vouchers, or accept vouchers for providing services. Makes ROs eligible on the same basis as any other nonprofit private organization so long as activities are implemented consistent with the establishment clause of the First Amendment of the Constitution. Prohibits Federal or State: (1) discrimination against an organization on the basis that the organization has a religious character; and (2) requirements that an RO, in order to be a program participant, remove religious art, icons, scripture, or other symbols.

Requires an RO to arrange for services through an alternative entity if an individual objects to the RO. Allows an RO to require a beneficiary who has elected to receive services from the organization to actively participate in religious practice, worship, and instruction.

Prohibits using funds for sectarian worship or instruction, unless the beneficiary may choose where the assistance is redeemed or allocated.

Declares that assistance to or on behalf of a beneficiary is aid to the beneficiary and not to the organization. Requires, if a State law or constitution would prevent the expenditure of State or local funds by ROs, that the RC segregate Federal funds from State or other public funds.

Requires giving credit for religious education and training equivalent to credit given for secular course work. Mandates waiver of educational requirements if the RO has a record of successful drug treatment and the State or local government fails to demonstrate empirically that the educational qualifications are necessary.

Title V (sic): CRA Credit for Investments in Community Development Organizations Located in Renewal Communities - Amends the Community Reinvestment Act of 1977 to allow the appropriate Federal financial supervisory agency, in assessing the record of a financial institution, to consider the institution's ventures with any community development organization in an RC.

Amends the Federal Food, Drug, and Cosmetic Act (FDCA) to waive certain human drug application or supplement fees for drugs developed in an RC.