CREDIT FOR CONTRIBUTIONS TO CERTAIN COMMUNITY DEVELOPMENT CORPORATIONS.

SEC. 13311. CREDIT FOR CONTRIBUTIONS TO CERTAIN COMMUNITY DEVELOPMENT CORPORATIONS. (a) In General.— For purposes of section 38 of the Internal Revenue Code of 1986, the current year business credit shall include the credit determined under this section. (b) Determination of Credit.— The credit determined under this section for each taxable year in the credit period with respect 107 STAT. 557to any qualified CDC contribution made by the taxpayer is an amount equal to 5 percent of such contribution. (c) Credit Period.— For purposes of this section, the credit period with respect to any qualified CDC contribution is the period of 10 taxable years beginning with the taxable year during which such contribution was made. (d) Qualified CDC Contribution.— For purposes of this section— (1) In general.— The term “qualified CDC contribution” means any transfer of cash— (A) which is made to a selected community development corporation during the 5-year period beginning on the date such corporation was selected for purposes of this section, (B) the amount of which is available for use by such corporation for at least 10 years, (C) which is to be used by such corporation for qualified low-income assistance within its operational area, and (D) which is designated by such corporation for purposes of this section. (2) Limitations on amount designated.— The aggregate amount of contributions to a selected community development corporation which may be designated by such corporation shall not exceed $2,000,000. (e) Selected Community Development Corporations.— (1) In general.— For purposes of this section, the term “selected community development corporation” means any corporation— (A) which is described in section 501(c)(3) of such Code and exempt from tax under section 501(a) of such Code, (B) the principal purposes of which include promoting employment of, and business opportunities for, low-income individuals who are residents of the operational area, and (C) which is selected by the Secretary of Housing and Urban Development for purposes of this section. (2) Only 20 corporations may be selected.— The Secretary of Housing and Urban Development may select 20 corporations for purposes of this section, subject to the availability of eligible corporations. Such selections may be made only before July 1, 1994. At least 8 of the operational areas of the corporations selected must be rural areas (as defined by section 1393(a)(3) of such Code). (3) Operational areas must have certain characteristics.— A corporation may be selected for purposes of this section only if its operational area meets the following criteria: (A) The area meets the size requirements under section 1392(a)(3). (B) The unemployment rate (as determined by the appropriate available data) is not less than the national unemployment rate. (C) The median family income of residents of such area does not exceed 80 percent of the median gross income of residents of the jurisdiction of the local government which includes such area. (f) Qualified Low-Income Assistance.— For purposes of this section, the term “qualified low-income assistance” means assistance— 107 STAT. 558 (1) which is designed to provide employment of, and business opportunities for, low-income individuals who are residents of the operational area of the community development corporation, and (2) which is approved by the Secretary of Housing and Urban Development.