INVEST Act

II 116TH CONGRESS 2D SESSION S. 3181 To amend the Internal Revenue Code of 1986 to expand the new markets tax credit to assist Native American communities, and for other purposes. IN THE SENATE OF THE UNITED STATES JANUARY 9, 2020 Ms. MURKOWSKI (for herself, Mr. SCHATZ, Ms. HIRONO, and Mr. SULLIVAN) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to expand the new markets tax credit to assist Native American communities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Inspiring Nationally 4 Vibrant Economies Sustaining Tribes Act of 2020’’ or the 5 ‘‘INVEST Act’’. 6 VerDate Sep 11 2014 01:23 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3181 IS SEC. 2. EXPANSION OF NEW MARKETS TAX CREDIT. 1 (a) LOW-INCOME COMMUNITY.—Paragraph (1) of 2 section 45D(e) of the Internal Revenue Code of 1986 is 3 amended to read as follows: 4 ‘‘(1) DEFINITION.— 5 ‘‘(A) IN GENERAL.—The term ‘low-income 6 community’ means— 7 ‘‘(i) any population census tract if— 8 ‘‘(I) the poverty rate for such 9 tract is at least 20 percent, or 10 ‘‘(II)(aa) in the case of a tract 11 not located within a metropolitan 12 area, the median family income for 13 such tract does not exceed 80 percent 14 of statewide median family income, or 15 ‘‘(bb) in the case of a tract lo- 16 cated within a metropolitan area, the 17 median family income for such tract 18 does not exceed 80 percent of the 19 greater of statewide median family in- 20 come or the metropolitan area median 21 family income, 22 ‘‘(ii) any trust land (as defined at sec- 23 tion 3765 of title 38, United States Code), 24 ‘‘(iii) any land within a township that 25 encloses all or part of a Native village (as 26 VerDate Sep 11 2014 01:23 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3181 IS defined in section 3(c) of the Alaska Na- 1 tive Claims Settlement Act (43 U.S.C. 2 1602(c)), or 3 ‘‘(iv) any land that is part or all of a 4 Tribal designated statistical area associ- 5 ated with an Indian tribe as defined by the 6 Census Bureau for the purposes of the 7 most recent decennial census. 8 ‘‘(B) MEDIAN FAMILY INCOME.—Subclause 9 (II) of subparagraph (A)(i) shall be applied 10 using possessionwide median family income in 11 the case of census tracts located within a pos- 12 session of the United States.’’. 13 (b) ALLOCATION OF NATIONAL LIMITATION.— 14 (1) IN GENERAL.—Section 45D(f)(2) of the In- 15 ternal Revenue Code of 1986 is amended by striking 16 ‘‘shall give priority to’’ and all that follows and in- 17 serting ‘‘shall— 18 ‘‘(A) give priority to any entity— 19 ‘‘(i) with a record of having success- 20 fully provided capital or technical assist- 21 ance to disadvantaged businesses or com- 22 munities or to Indian tribes or Native 23 American communities, or 24 VerDate Sep 11 2014 01:23 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3181 IS ‘‘(ii) which intends to satisfy the re- 1 quirement under subsection (b)(1)(B) by 2 making qualified low-income community in- 3 vestments in 1 or more businesses in which 4 persons unrelated to such entity (within 5 the meaning of section 267(b) or 6 707(b)(1)) hold the majority equity inter- 7 est, and 8 ‘‘(B) ensure that not less than 10 percent 9 of such limitation is allocated to qualified In- 10 dian community development entities for invest- 11 ments that primarily serve low-income commu- 12 nities described in clauses (ii), (iii), and (iv) of 13 subsection (e)(1)(A).’’. 14 (2) QUALIFIED INDIAN COMMUNITY DEVELOP- 15 MENT ENTITY.—Section 45D(f) of such Code is 16 amended by adding at the end the following new 17 paragraph: 18 ‘‘(4) QUALIFIED INDIAN COMMUNITY DEVELOP- 19 MENT ENTITY.—For purposes of paragraph (2)(B), 20 the term ‘qualified Indian community development 21 entity’ means any qualified community development 22 entity which is— 23 ‘‘(A) at least 51 percent owned and con- 24 trolled by an Indian tribe (as defined in section 25 VerDate Sep 11 2014 04:02 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3181 IS 4(e) of the Indian Self-Determination and Edu- 1 cation Assistance Act (25 U.S.C. 5304(e)), or 2 ‘‘(B) a Native community development fi- 3 nancial institution (as defined in section 103 of 4 the Community Development Banking and Fi- 5 nancial Institutions Act of 1994 (12 U.S.C. 6 4702)).’’. 7 (c) EFFECTIVE DATE.—The amendments made by 8 this section shall apply to calendar years beginning after 9 December 31, 2020. 10 SEC. 3. NATIVE COMMUNITY DEVELOPMENT FINANCIAL IN- 11 STITUTIONS. 12 (a) DEFINITION OF A NATIVE COMMUNITY DEVEL- 13 OPMENT FINANCIAL INSTITUTION.—Section 103 of the 14 Community Development Banking and Financial Institu- 15 tions Act of 1994 (12 U.S.C. 4702) is amended— 16 (1) by redesignating paragraphs (18) through 17 (21) as paragraphs (19) through (22), respectively; 18 and 19 (2) by inserting after paragraph (17) the fol- 20 lowing: 21 ‘‘(18) NATIVE COMMUNITY DEVELOPMENT FI- 22 NANCIAL INSTITUTION.— 23 ‘‘(A) IN GENERAL.—The term ‘Native 24 community development financial institution’ 25 VerDate Sep 11 2014 01:23 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 3181 IS means a community development financial insti- 1 tution— 2 ‘‘(i) the activities of which not less 3 than 51 percent serve Native Americans; 4 or 5 ‘‘(ii) that is not less than 51 percent 6 owned or controlled Native Americans. 7 ‘‘(B) NATIVE AMERICANS.—In this para- 8 graph, the term ‘Native Americans’ has the 9 meaning given the term in section 3765 of title 10 38, United States Code.’’. 11 (b) ASSISTANCE FOR NATIVE COMMUNITY DEVELOP- 12 MENT FINANCIAL INSTITUTIONS.—Section 108(a) of the 13 Community Development Banking and Financial Institu- 14 tions Act of 1994 (12 U.S.C. 4707(a)) is amended by add- 15 ing at the end the following: 16 ‘‘(5) ASSISTANCE FOR NATIVE COMMUNITY DE- 17 VELOPMENT FINANCIAL INSTITUTIONS.—The Fund 18 shall provide financial assistance, technical assist- 19 ance, and training to build the capacity of Native 20 community development financial institutions.’’. 21 SEC. 4. TECHNICAL ASSISTANCE PILOT PROGRAM. 22 (a) IN GENERAL.—The Secretary of the Interior, act- 23 ing through the Assistant Secretary for Indian Affairs, 24 shall— 25 VerDate Sep 11 2014 04:02 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 3181 IS (1) establish a program to provide technical as- 1 sistance to qualified Indian community development 2 entities (as defined in section 45D of the Internal 3 Revenue Code of 1986) with respect to the process 4 for applications for allocations of the new markets 5 tax credit under section 45D of the Internal Rev- 6 enue Code of 1986; and 7 (2) work with the Director of the Community 8 Development Financial Institutions Fund to provide 9 assistance to qualified Indian community develop- 10 ment entities to improve the competitiveness of ap- 11 plications for such allocations. 12 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 13 authorized to be appropriated to the Secretary of the Inte- 14 rior to carry out this section $500,000 for each of fiscal 15 years 2021 through 2025. 16 Æ VerDate Sep 11 2014 01:23 Jan 11, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\S3181.IS S3181 pamtmann on DSKBC07HB2PROD with BILLS