MODIFICATION OF TARGETED AREAS AND LOW-INCOME COMMUNITIES FOR NEW MARKETS TAX CREDIT.

SEC. 221. MODIFICATION OF TARGETED AREAS AND LOW-INCOME COMMUNITIES FOR NEW MARKETS TAX CREDIT.(a) Targeted areas.—Paragraph (2) of section 45D(e) (relating to targeted areas) is amended to read as follows:“(2) Targeted populations.—The Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702(20))) may be treated as low-income communities. Such regulations shall include procedures for determining which entities are qualified active low-income community businesses with respect to such populations.”.(b) Tracts with Low Population.—Subsection (e) of section 45D (defining low-income community) is amended by adding at the end the following:“(4) Tracts with low population.—A population census tract with a population of less than 2,000 shall be treated as a low-income community for purposes of this section if such tract—“(A) is within an empowerment zone the designation of which is in effect under section 1391, and“(B) is contiguous to 1 or more low-income communities (determined without regard to this paragraph).”.(c) Effective Dates.—(1) Targeted areas.—The amendment made by subsection (a) shall apply to designations made by the Secretary of the Treasury after the date of the enactment of this Act.(2) Tracts with low population.—The amendment made by subsection (b) shall apply to investments made after the date of the enactment of this Act.