Enterprise Zone Community Development and Employment Act of 1984

Enterprise Zone Community Development and Employment Act of 1984 - Title I: Designation of Enterprise Zones - Amends the Internal Revenue Code to provide for the designation of enterprise zones by the Secretary of Housing and Urban Development for purposes of extending the tax incentives and regulatory flexibility measures provided by this Act. Provides that State and local governments shall nominate areas for such designation. Limits the designation of enterprise zones to a specified number of nominated areas per year (one-third of which must be in rural areas). Limits the period during which such designations shall remain in effect.

Provides that the Secretary may designate such zones only if: (1) the area is within the jurisdiction of the local government; (2) the boundary of the area is continuous; (3) the area has a population of at least 4,000 if any portion thereof is located within a standard metropolitan statistical area (with a population of at least 50,000) or 1,000 otherwise, or is within an Indian reservation; and (4) the area meets specified unemployment and poverty requirements.

Requires nominating local governments, as a condition of the Secretary's designation, to agree in writing to follow a course of action which may include improving local services, simplifying or streamlining regulation of business, or receiving commitments of private entities to assist employees and residents of the area. Describes areas to which preference shall be given by the Secretary in deciding to designate enterprise zones.

Limits the authority of the Secretary to designate enterprise zones to a period of ten years after the publication of regulations pertaining to such zones.

Requires the Secretary to report to Congress on the effects of such enterprise zones' designation not later than two years after the Secretary first designates areas as enterprise zones.

Requires that any tax reduction effected by a local government under the terms of this Act be disregarded for purposes of determining the eligibility of a State or local government for Federal assistance or benefits.

States that designation of an enterprise zone shall not give displaced persons from such an area any rights or benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

Provides that the designation of an enterprise zone shall not constitute a Federal action for purposes of applying the requirements of the National Environmental Policy Act or other provisions of Federal law relating to the protection of the environment.

Title II: Federal Income Tax Incentives - Subtitle A: Credit for Employers - Allows employers located in enterprise zones a nonrefundable income tax credit for increased employment expenditures and employment of the disadvantaged. Allows a three-year carryback and 15-year carryover of such credit. Sets the amount of such credit at the sum of: (1) ten percent of the increase in payroll (taking into account a maximum of $15,000 in wages per year per employee); (2) a specified percentage of the wages paid to certain disadvantaged workers; and (3) 50 percent of the economically disadvantaged medical or day care expenses paid or incurred during the taxable year. Phases out such credit in the last three years of the enterprise zone designation. Disallows a deduction for the portion of wages taken into account for such credit.

Allows employees located in enterprise zones an income tax credit for a specified amount of wages earned plus, in the case of economically disadvantaged individuals, a specified amount of medical or day care expenses. Phases out such credit in the last three years of the enterprise zone designation.

Subtitle B: Credits for Investment in Tangible Property in Enterprise Zones - Allows businesses an additional investment tax credit for investment in certain tangible property located in enterprise zones. Limits such credit to five percent for zone personal property and ten percent for new zone construction property, including rental property. Requires that the property subject to such credit be predominantly used in the zone, be purchased after zone designation, and not be acquired from relatives or related corporations. Requires the recapture of such credit upon early disposition of the property. Phases out such credit in the last three years of the enterprise zone designation.

Allows the waiver of the 30-year rule with respect to the income tax credit for certain rehabilitation expenditures in the case of rehabilitated buildings in enterprise zones. Increases the limitation on used property eligible for the investment tax credit in the case of enterprise zone property.

Provides a refundable income tax credit for 35 percent of rehabilitation expenditures incurred by organizations organized and operated primarily for purposes of rehabilitating real property located in an enterprise zone.

Subtitle C: Special Rules for Enterprise Zone Corporations - Allows an income tax deduction up to a maximum of $25,000 per year for the purchase of stock originally issued by an enterprise zone small business having a net worth of less than $2,000,000. Treats as ordinary income any amount previously taken as a deduction upon the sale or disposition of such stock. Provides tax penalties if such stock is sold within three years.

Treats as an ordinary loss any loss incurred on the sale or exchange of enterprise zone industrial development bonds or enterprise zone corporate bonds. Limits such treatment to an aggregate amount of $50,000 per year.

Excludes from gross income 50 percent of income earned from stock in or obligations of enterprise zone corporations. Limits such exclusion to an aggregate amount of $100,000 per year. Extends the net operating loss carryover period for enterprise zone corporations from 15 years to the year in which the designation of enterprise zone expires.

Subtitle D: Rules Relating to Industrial Development Bonds - Provides that limitations on the cost recovery deductions for property financed with tax-exempt industrial development bonds shall not apply to enterprise zone property. Provides that the termination of the small issue exemption shall not apply to industrial development bonds the proceeds of which are used to finance facilities in such enterprise zones.

Subtitle E: Sense of Congress with Respect to Tax Simplification - Expresses the sense of the Congress that the Internal Revenue Service should simplify the administration and enforcement of any provision of the Internal Revenue Code affected by this Act.

Title III: Regulatory Flexibility - Revises the definition of "small entity" for purposes of the analysis of regulatory functions to include qualified businesses (as defined in title II of this Act), governments, and nonprofit enterprises operating within enterprise zones.

Authorizes Federal agencies, upon request by a designating government, to waive or modify rules and regulations which pertain to the carrying out of projects or activities within an enterprise zone. Requires agencies to approve such a request if the resulting benefits of job creation, community development, or economic revitalization outweigh the public interest in continuation of the rule unchanged. Disallows waiver or modification of a rule that would directly violate a statutory requirement (including the Davis-Bacon Act and Fair Labor Standards Act) or which would present a danger to the public health and safety. Provides that any waivers or modifications of a rule shall remain in effect as long as the zone designations.

Amends the Department of Housing and Urban Development Act to direct the Secretary of Housing and Urban Development to promote the coordination of all enterprise zone programs and consolidate all periodic reports required under such programs into one summary report.

Title IV: Establishment of Foreign-Trade Zones in Enterprise Zones - Requires the Foreign-Trade Board to consider on a priority basis and expedite the processing of applications for the establishment of foreign-trade zones within enterprise zones. Requires the Secretary of the Treasury to give priority to, and expedite applications for, the establishment of ports of entry necessary to establish such zones. States that to the maximum extent practicable foreign-trade zones should be established within enterprise zones.