Urban Growth Act

Urban Growth Act - Amends the Internal Revenue Code to reduce corporate income tax rates. Increases the corporate surtax exemption to $100,000. Makes the regular investment tax credit permanent. Allows an additional ten percent investment tax credit for new property placed in depressed areas. Increases the limitations on the investment credit to allow it to offset 100 percent of the taxpayer's current liability.

Increases the credit allowable for employment of new employees by an amount equal to one percent of the unemployment insurance wages paid to qualified employees during periods of unemployment exceeding seven percent nationally.

Allows accelerated amortization of depreciable equipment (with a 60 month period) and facilities (with a period equal to one-half each facility's useful life) which are placed in high unemployment areas.

Repeals the income tax exclusion of dividends received by individuals. Allows qualified domestic corporations an unlimited deduction for dividends paid. Provides flat limitations on corporate deductions for dividends from foreign corporations where the taxpayer is not claiming a net operating loss.

Allows the current deduction of federally-required, nonproductive expenditures as business expenses.

Provides for annual cost-of-living adjustments to depreciation allowances, property bases, and the interest paid on United States savings bonds and certificates, as well as the redemption value of all United States obligations of a year or more, including savings bonds and certificates.