Sec. 101. Coal community zones
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Subchapter Y of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part: Sec. 1400V–1. Definition of coal community zone. Sec. 1400V–2. Application of empowerment zone incentives to coal community zones. Sec. 1400V–3. Commercial revitalization deduction. Sec. 1400V–4. Exclusion of capital gains. Sec. 1400V–5. Application of new markets tax credit to investments in community development entities serving coal community zones. For purpose of this part, the term coal community zone means any county in the United States in which— there were not less than 50 fewer individuals employed at coal mines in such county for calendar year 2015 as compared to calendar year 2011 (determined based on data collected by the Federal Mine Safety and Health Administration), and the quarterly average of the total number of employees employed in such county for the first calendar year in the applicable period (as estimated by the Bureau of Labor Statistics) was not more than 20,000, or not less than an average of 5 percent of the total employment within the county during the applicable period was at coal mines.
For purposes of this section— The term applicable period means the period beginning after December 31, 2010, and ending before January 1, 2016. The term coal mine has the meaning given such term under section 3(h)(2) of the Federal Mine Safety and Health Act of 1977. For purposes of this title, except as otherwise provided in this section, a coal community zone shall be treated as an empowerment zone designated under subchapter U. A designation as an empowerment zone under subsection
(a)shall remain in effect during the period beginning on January 1, 2018, and ending on December 31, 2022. In the case of a coal community zone bond— such bond shall not be treated as a private activity bond for purposes of section 146, and section 1394(c) shall not apply. There is a national coal community zone bond limitation for all coal community zone bonds. Such limitation is $1,000,000,000. The Secretary shall allocate the limitation under subparagraph
(A)to States in which there are located coal community zones. Such allocation shall be in proportion to the population of residents in coal community zones in such States relative to the total population of residents in all coal community zones. The limitation allocated to a State under the preceding sentence shall be allocated to issuers of coal community zone bonds in such State. The maximum face amount of bonds issued which may be designated under paragraph (3)(A) shall not exceed the limitation amount allocated to such issuer under subparagraph (B). For purposes of this subsection, the term coal community bond means any bond which would be described in section 1394(a) if— such bond was designated for purposes of this subsection by the bond issuer, and only coal community zones were taken into account under sections 1397C and 1397D. In applying section 1396 to a coal community zone, the term qualified zone employee shall not include any individual who begins work for the employer before January 1, 2018. Rules similar to section 51(i)(2) shall apply for purposes of the preceding sentence. In applying section 1397A to a coal community zone— $500,000 shall be substituted for $35,000 in subsection (a)(1)(A), and in lieu of applying subsection (a)(2), the dollar amount in effect under section 179(b)(2) shall be increased by the lesser of— $500,000, or the cost of section 179 property which is qualified zone property (as defined in section 179D) placed in service during the taxable year. In the case of any taxable year beginning in a calendar year after 2018, the $500,000 amounts in subparagraphs
(A)and (B)(i) of paragraph
(1)shall each be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2017 for calendar year 1992 in subparagraph
(B)thereof. Any increase determined under subparagraph
(A)shall be rounded to the nearest multiple of $10,000. In applying section 1397B to a coal community zone— December 31, 2017 shall be substituted for the date of the enactment of this paragraph in subsection (b)(1)(A)(iii), and January 1, 2023 shall be substituted for the day after the date set forth in section 1391(d)(1)(A)(i) in subsection (b)(1)(A)(iv). For purposes of section 1400I— a coal community zone shall be treated as a renewal community, and in applying such section to a coal community zone— subsection (d)(2)(A) shall be applied by substituting each calendar year after 2017 and before 2023 is $16,000,000 for each coal community zone (as defined in section 1400V–1) in the State for each calendar year after 2001 and before 2010 is $12,000,000 for each renewal community in the State , and subsection
(g)shall be applied by substituting December 31, 2022 for December 31, 2009 . Gross income does not include any qualified capital gain from the sale or exchange of a qualified coal community zone asset held for more than 5 years. For purposes of this section— The term qualified coal community zone asset means— any qualified coal community zone stock, any qualified coal community zone partnership interest, and any qualified coal community zone business property. Except as provided in subparagraph (B), the term qualified coal community zone stock means any stock in a domestic corporation if— such stock is acquired by the taxpayer after December 31, 2017, and before January 1, 2023, at its original issue (directly or through an underwriter) from the corporation solely in exchange for cash, as of the time such stock was issued, such corporation was a coal community zone business (or, in the case of a new corporation, such corporation was being organized for purposes of being a coal community zone business), and during substantially all of the taxpayer's holding period for such stock, such corporation qualified as a coal community zone business. A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph. The term qualified coal community zone partnership interest means any capital or profits interest in a domestic partnership if— such interest is acquired by the taxpayer after December 31, 2017, and before January 1, 2023, from the partnership solely in exchange for cash, as of the time such interest was acquired, such partnership was a coal community zone business (or, in the case of a new partnership, such partnership was being organized for purposes of being a coal community zone business), and during substantially all of the taxpayer's holding period for such interest, such partnership qualified as a coal community zone business. A rule similar to the rule of paragraph (2)(B) shall apply for purposes of this paragraph The term qualified coal community zone business property means tangible property if— such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after December 31, 2017, and before January 1, 2023, the original use of such property in the coal community zone commences with the taxpayer, and during substantially all of the taxpayer's holding period for such property, substantially all of the use of such property was in a coal community zone business of the taxpayer. The requirements of clauses
(i)and
(ii)of subparagraph
(A)shall be treated as satisfied with respect to— property which is substantially improved by the taxpayer before January 1, 2023, and any land on which such property is located. The determination of whether a property is substantially improved shall be made under clause
(ii)of section 1400B(b)(4)(B), except that December 31, 2017 shall be substituted for December 31, 1997 in such clause. For purposes of this section, the term coal community zone business means any entity or proprietorship which would be a qualified business entity or qualified proprietorship under section 1397C if references to coal community zones were substituted for references to empowerment zones. For purposes of this section— Except as otherwise provided in this subsection, the term qualified capital gain means any gain recognized on the sale or exchange of— a capital asset, or property used in the trade or business (as defined in section 1231(b)). The term qualified capital gain shall not include any gain attributable to periods before January 1, 2018, or after December 31, 2022. Rules similar to the rules of paragraphs (3), (4), and
(5)of section 1400B(e) shall apply for purposes of this subsection. For purposes of this section, rules similar to the rules of paragraphs (5), (6), and
(7)of subsection (b), and subsections
(f)and (g), of section 1400B shall apply; except that for such purposes section 1400B(g)(2) shall be applied by substituting January 1, 2018 for January 1, 1998 and December 31, 2022 for December 31, 2014 . The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations to prevent the abuse of the purposes of this section. For purposes of section 45D— a qualified community development entity shall be eligible for an allocation under subsection (f)(2) thereof of the increase in the new markets tax credit limitation described in paragraph
(2)only if a significant mission of such entity is the recovery and redevelopment of population census tracts within coal community zones, the new markets tax credit limitation otherwise determined under subsection (f)(1) thereof shall be increased by an amount equal to $300,000,000 for each of calendar years 2017, 2018, 2019, and 2020, to be allocated among qualified community development entities to make qualified low-income community investments within coal community zones, and subsection (f)(3) thereof shall be applied separately with respect to the amount of the increase under paragraph (2). . Section 1394(f)(3)(B) of the Internal Revenue Code of 1986 is amended by inserting or any coal community zone after District of Columbia Enterprise Zone . The table of parts for subchapter Y of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Part IV—Coal community zones .