Sec. 5. Increase in new markets tax credit designation for community economic assistance zones

283 words·~1 min read·/bill/115/hr/2931/ih/section-5

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Subsection

(f)of section 45D of the Internal Revenue Code of 1986 is amended— by striking The limitation in paragraph

(2)and inserting Except as provided in paragraph (3), the limitation ; by redesignating paragraph

(3)as paragraph (4); by inserting after paragraph

(2)the following new paragraph: In the case of any calendar year described in paragraph (1)(G) beginning after December 31, 2016, the limitation under paragraph

(1)shall be increased by $500,000,000, and such increase shall be allocated as provided in paragraph

(2)among qualified community development entities located in community economic assistance areas. For purposes of subparagraph (A), the term community economic assistance area means an area which— is a community economic assistance zone, and has a community economic development plan approved under section 6 of the Community Economic Assistance Act of 2017 . Any amount of such increase which is so allocated to such an entity shall be used only in accordance with the priorities outlined in such community economic development plan to implement the strategies and objectives under such plan described in section 6(3) of Community Economic Assistance Act of 2017 . ; by striking paragraph

(2)in paragraph (4), as so redesignated, and inserting paragraph

(2)or

(3); and by striking the second sentence of paragraph (4), as so redesignated, and inserting the following: Any carryover under the preceding sentence of an amount allocated under paragraph

(3)shall be allocated first among qualified community development entities located in community economic assistance areas, and may then be allocated among any qualified community development entities selected by the Secretary under paragraph (2). No amount may be carried under the preceding sentences to any calendar year after 2024. .