Credit Allocation Incentive Act

Credit Allocation Incentive Act - Authorizes the Federal Reserve Board to require each member bank to hold additional reserves against nonpriority loans and investments, and grant a credit against these additional reserves for national priority loans and investments.

Establishes the following as national priority loans and investments: (1) useful capital investments, particularly if capacity-adding, energy-conserving environment-enhancing, or productivity-increasing; (2) low- or middle-income housing; (3) State or local government facilities; and (4) small businesses and farms, permits the Board to establish other priority areas as the investment needs of the Nation change, provided it informs Congress at least 60 days in advance so that Congress may disapprove by concurrent resolution.