Rural Enterprise Zone Act of 1983

Rural Enterprise Zone Act of 1983 - Title I: Designation of Rural Enterprise Zones - Amends the Internal Revenue Code to provide for the designation of enterprise zones by the Secretary of Agriculture for purposes of extending the tax incentives provided by this Act. Specifies that intergovernmental organizations, and State and local governments shall nominate areas for such designation. Limits the designation of rural enterprise zones to 25 nominated areas per year. Limits the period during which such designations shall remain in effect.

Specifies that the Secretary may designate such zones only if: (1) the area is within the jurisdiction of the nominating government or governments; (2) the boundary of the area is continuous; (3) the area is outside a standard metropolitan statistical area, within an Indian reservation, or in a rural area as determined by the Secretary; 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 reducing tax rates, improving local services, and providing education and training to residents of the area.

Terminates the authority of the Secretary to designate rural enterprise zones on June 30, 1987 or three years after the publication of regulations pertaining to such zones, whichever is later. Describes areas to which preference shall be given in deciding to designate enterprise zones.

Requires that any property 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.

Requires that preferences be given to rural enterprise zones in the distribution of Federal funds and in awarding Federal contracts.

Title II: Federal Income Tax Incentives - Subtitle A: Credits for Employers - Allows employers located in rural 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 ten percent of the increase in payroll (taking into account a maximum of $15,000 in wages per year per employee) plus 50 percent of the wages paid to certain disadvantaged workers for the first three years of the enterprise zone designation. 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.

Subtitle B: Incentives for Investment in Tangible Property in Rural 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.

Subtitle C: Credit for Charitable Contributions to Job Training Organizations in Enterprise Zones - Allows an income tax credit for charitable contributions made by a taxpayer to qualified job-training organizations. Sets the amount of such credit at ten percent of qualified contributions. Limits the maximum amount of such credit to $250,000 per year.

Subtitle D: Reduction in Capital Gain Tax Rates - Eliminates the capital gains tax on property of corporations acquired after the rural enterprise zone designation and used in a zone business. Qualifies certain low-income rental housing located in an enterprise zone for such treatment. Permits property to remain qualified for purposes of the revised capital gains treatment after a designation of an enterprise zone has terminated. Exempts gain from the sale or exchange of property used in a business in an enterprise zone from the computation of the minimum tax. Allows noncorporate taxpayers to deduct from gross income 100 percent of any net capital gain from qualified enterprise zone property.

Subtitle E: 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 rural 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 F: Sense of the Congress With Respect to Tax Simplification - Expresses the sense of the Congress that the Secretary of the Treasury should simplify the administration and enforcement of any provision of the Internal Revenue Code added to, or amended by, this Act.