Enterprise Development Act of 1981

Enterprise Development Act of 1981 - Title I: Public Works and Economic Development - Amends the Public Works and Economic Development Act of 1965 to rename it the Public Works and Economic Development Act. Declares that the purpose of such Act is to provide special economic development and adjustment assistance programs to help State and local areas with actual or threatened severe unemployment resulting from economic dislocation.

Authorizes the Secretary of Commerce to make grants directly to any eligible recipient (a redevelopment area or economic development district established under such Act, an Indian tribe, a State, a city, or other political subdivisions of a State) in an area which has an expected rise in unemployment or other economic adjustment problems or which has demonstrated long-term economic deterioration for economic adjustment assistance, including: (1) public facilities; (2) public services; (3) business development; (4) planning; (5) unemployment compensation; (6) rent supplements; (7) mortgage payment assistance; (8) research; (9) technical assistance; (10) training; and (11) relocation of individuals and businesses. Requires recipients of financial assistance under such program to submit to the Secretary an overall economic development plan. Specifies conditions for the provision of unemployment compensation through such program. Requires such recipients to make annual reports to the Secretary and evaluate the effectiveness of such assistance.

Directs the Secretary to appoint a National Public Advisory Committee on Regional Economic Development to advise the Secretary in carrying out such Act. Sets forth the Secretary's powers.

Prohibits the use of financial assistance extended under such Act to finance unfair trade practices. Prohibits the financing of electrical energy or gas facilities except under specified circumstances.

Directs the Secretary to report annually to Congress on operations under such Act.

Imposes penalties on: (1) anyone who knowingly makes false statements to influence the Secretary or obtain funds under such Act; and (2) anyone connected in any capacity with the Secretary who embezzles funds, engages in fraudulent conduct, or uses unauthorized information to affect, invest in, or speculate in the securities of any company or corporation receiving financial assistance from the Secretary.

Prohibits the Secretary from extending financial assistance to any construction project unless specified labor standards are maintained for such project.

Requires recipients of financial assistance under such Act to keep records of the amount and disposition of such assistance available for the Secretary and the Comptroller General for audit purposes.

Directs the Secretary to designate as redevelopment areas eligible for financial assistance under such Act: (1) areas in which there has been substantial unemployment for an extended time period and a substantial population loss due to lack of employment opportunity; (2) areas which have a median family income of 50 percent or less of the national median; (3) Federal or State Indian reservations or trust or restricted Indian-owned land areas with high unemployment and low incomes; (4) upon request of such areas, areas where the loss of a major source of employment results in an unemployment rate which exceeds the national average by 50 percent or more; (5) areas designated redevelopment areas under the Area Redevelopment Act on or after March 1, 1965, provided that their continued eligibility shall depend on their meeting the above designation requirements; (6) communities or neighborhoods with a large concentration of low-income persons, substantial outmigration, substantial unemployment, or an actual or threatened rise in unemployment due to the loss of a major source of employment; (7) areas where per capita employment has declined significantly over a specified time period; (8) areas with an unemployment rate at least one percent above the national average for the preceding two years; and (9) areas which have demonstrated long-term economic deterioration. Directs the Secretary to determine the size and boundaries of redevelopment areas, subject to specified conditions. Provides for the designation of an area which most nearly qualifies as a redevelopment area if a State has no area which meets the designation requirements. Directs the Secretary to conduct an annual review of all areas designated as redevelopment areas and terminate or modify such designation if an area no longer satisfies the designation requirements.

Authorizes the Secretary to designate as economic development districts eligible for financial assistance under such Act those areas composed of cooperating redevelopment areas which are large enough and have sufficient resources to foster economic development and which have district overall economic development programs approved by the Secretary and any affected States. Authorizes the designation within such districts of economic development centers which have been identified in approved district overall economic development programs and which are expected to contribute significantly to the alleviation of economic distress in district redevelopment areas. Directs the Secretary to prescribe standards for the termination and modification of such districts and centers.

Authorizes appropriations for fiscal year 1982. Provides that all rules, regulations, and contractual obligations established under the Public Works and Economic Development Act of 1965 before the effective date of this Act shall continue in effect. Prohibits the abatement of any legal proceedings or financial assistance applications filed before or pending upon such date.

Subtitle B: Additional Borrowing Authority for Small Business Investment Companies - Amends the Small Business Investment Act of 1958 to increase the borrowing authority of qualified job expansion businesses (as defined in this Act).

Subtitle C: Report by Small Business Administration on Involvement With Qualified Job Expansion Businesses - Directs the Administrator of the Small Business Administration (SBA) to report annually to specified Congressional committees on the SBA's involvement with qualified job expansion businesses, including information on loans and loan guarantees provided to such businesses.

Title II: Tax Incentives for Businesses Located in Distressed Areas - Job Expansion and Urban Development Tax Act of 1981 - Subtitle A: Designation of Eligible Areas and Businesses - Amends the Internal Revenue Code to define a job expansion area as any area in the United States designated by one or more local governments as such. Limits eligibility for such designation to areas with a population of at least 10,000 whose rates of poverty and unemployment exceed specified national averages, and whose rates of per capita income growth fall below specified levels.

Defines a "job expansion business" as one where at least 50 percent of its hours of service are performed by employees working in one or more job expansion areas and, except in extenuating circumstances, at least 50 percent of such qualified employees are residents of a job expansion area.

Subtitle B: Tax Incentives - Provides for an election of an additional $40,000 ($80,000 in the case of married individuals filing jointly) first-year depreciation for machinery and equipment purchased by a qualified job expansion business. Requires recapture of the tax that would otherwise have been paid if the property concerned ceases to be used predominantly inside a job expansion area.

Allows an additional five percent investment tax credit for new buildings placed in service by a qualified job expansion business. Allows the election by a qualified job expansion business of an investment tax credit of an additional $400,000 of cost for used equipment used predominantly in a job expansion area. Provides for recapture of the tax benefits in the event such property ceases to be used predominantly in such area.

Allows a 25 percent investment tax credit for expenditures paid or incurred for rehabilitation of a building located in a job expansion area.

Provides for the refundability of the investment tax credit for job expansion area property of up to $100,000.

Allows the targeted jobs credit for employment of residents of a job expansion area. Increases the amount of such credit for the employment of such individuals: (1) from 50 percent to 60 percent of the first-year wages; and (2) from 25 percent to 35 percent of the second-year wages.

Allows a deduction for contributions made to an employee stock ownership plan (ESOP) by an employer which is a qualified job expansion business if such contributions are used to pay the principal or interest on any loan incurred for the acquisition of qualified employer securities. Excludes from the limitations on annual additions with respect to ESOP's certain forfeitures of employer securities under an ESOP and employer contributions to an ESOP which are used to pay the interest of any loan incurred for the acquisition of employer securities.

Subtitle C: Effective Date - States the effective date of this Act.