URBAN ECONOMIC POLICY

URGING SUPPORT FOR THE COMMERCIAL REVITALIZATION TAX CREDIT ACT

WHEREAS, in spite of the booming growth in the national economy, many neighborhoods in urban and rural areas are plagued by chronic economic distress caused in part by aging infrastructure, business disinvestment, crime and poverty; and

WHEREAS, in 1997 Senator Kay Bailey Hutchison and Representative Phil English reintroduced the Commercial Revitalization Tax Credit Act, a proposal that would provide a tax credit to businesses to help defray the cost of construction, expansion, and renovation in economically distressed communities and neighborhoods; and

WHEREAS, an estimated 1000 distressed communities nationwide would be eligible for the tax credit including Federal Empowerment Zones/Enterprise Communities, the 400 communities that sought such designation but were not selected, state established enterprise zones, and other specifically-designated revitalization districts established by any level of government; and

WHEREAS, the tax credit would be limited to $1.5 billion over 5 years and would be allocated to states by formula based on low-income population, and each state would be required to consult with local elected officials in affected communities and distribute its allocation on a project-by-project basis; and

WHEREAS, investors could choose a one-time 20 percent credit on eligible expenses that can be applied to taxable income all at once, or 5 percent per year over 10 years,

NOW, THEREFORE, BE IT RESOLVED that The U.S. Conference of Mayors urges all members of the House and Senate to cosponsor and support the enactment of the Commercial Revitalization Tax Credit Act before the 105th Congress adjourns in 1998; and

BE IT FURTHER RESOLVED that The U.S. Conference of Mayors urges Congress to approve the CRTCA at the full benefit level for which it is proposed.