REAL Life Economic Empowerment Act of 1998

TABLE OF CONTENTS:

Title I: Designation and Evaluation of Renewal Communities

Title II: Tax Incentives for Renewal Communities

Title III: Additional Provisions

REAL Life Economic Empowerment Act of 1998 - Title I: Designation and Evaluation of Renewal Communities - Renewing American Communities Act of 1998 - Amends the Internal Revenue Code to authorize the Secretary of Housing and Urban Development to designate (upon local or State nomination) up to 50 renewal communities. Requires for nomination purposes that: (1) the area be experiencing high rates of poverty and unemployment and general distress; and (2) State and local governments enter into written contracts with neighborhood organizations to promote specified economic growth and employment activities.

Treats renewal communities as labor surplus areas for all Federal law purposes.

Title II: Tax Incentives for Renewal Communities - Amends the Internal Revenue Code to exclude from gross income capital gains on the sale or exchange of a qualified community asset (stock, business property, or partnership interest) held for more than five years.

Allows a specified deduction for amounts paid into a family development account on behalf of an individual or another qualified individual who is a renewal community resident. Excludes from gross income account distributions used for qualified family development expenses (postsecondary education, first-home purchase, business capitalization, medical, and rollovers). Provides a penalty (with exceptions) in addition to inclusion as gross income for nonqualifying distributions.

Provides for designation of up to 25 qualifying renewal communities as matching demonstration areas eligible to receive family development account matching contributions.

Authorizes: (1) designation of earned income tax credit payments for family development account deposit; (2) a commercial building revitalization tax credit; (3) increased first year expensing for renewal community businesses; (4) extension of environmental remediation cost expensing and the work opportunity credit for renewal communities; and (5) similar tax treatment of renewal communities and enterprise zones for specified youth residence requirements.

(Sec. 205) Makes conforming amendments to provisions respecting: (1) tax on excess contributions and prohibited transactions; (2) trust and annuity information; (3) tax exemption applications; and (4) the commercial revitalization credit.

Title III: Additional Provisions - Provides for local government transfer of unoccupied and substandard Department of Housing and Urban Development multifamily and single family housing in renewal communities, with subsequent disposition priority to be given to community development corporations.

(Sec. 302) Amends the Community Reinvestment Act of 1977 to provide that a financial institution's investments in community development organizations located in renewal communities may be considered in evaluations under such Act.