“We find this country enjoying such a robust economy and yet in many of the rural and inner city areas, they haven’t the slightest idea that we are doing so well,” said Rep. Rangel.  “This bill says that as America moves forward, all parts of America should move forward.  No inner city neighborhood, rural community or any area of America should be excluded from our prosperity.”

Rep. Rangel joined House Speaker Dennis Hastert (R-IL), fellow Ways and Means member William Jefferson (D-LA), Rep. J.C. Watts (R-OK), Small Business Committee Chairman James Talent (R-MO), Small Business Committee Ranking Democrat Nydia Velázquez (D-NY) and other supporters at a press conference following the House vote.  

“This is not a Republican day.  It is not a Democratic day.  It is a proud day for the House because it shows what can be accomplished when we put aside partisanship and work together toward a common goal,” Rep. Rangel said at the bipartisan Press Conference.
        
The legislation includes a major $1.75 billion expansion of the Empowerment Zones legislation, which Rep. Rangel authored in 1993 along with then Rep. Jack Kemp (R-NY).  The bill would create a new round of nine additional Empowerment Zones, extend the benefits of the current 31 zones through 2009, and improve many of those benefits.  
   
“Most of the jobs in the United States don’t come from the big firms.  They come from the small businesses that hire people from their communities.  However, when these businesses can’t get investors, they do not have the capital to hire people.  The Empowerment Zones give the incentives necessary to bring in outside capital and jump-start these communities so they can reach their full potential.  The legislation that overwhelmingly passed the House today follows this successful model.”

In addition to the Empowerment Zone expansion, the legislation contains $2.5 billion to create 40 “renewal communities” in which a variety of tax benefits would be available including a zero capital gains rate, an employment credit, special cost recovery for commercial revitalization expenditures, and an increase in small business expensing.  Under this funding, many of these tax benefits such as the zero capital gains rate also would be made available in new and existing Empowerment Zones.

The legislation also includes $737 million for the President’s New Markets Tax Credit and includes his initiative for America’s Private Investment Companies.  

“We have all types of programs to encourage investment overseas.  We have the Overseas Private Investment Corporation to allow investors to feel more secure in putting their money overseas.  Now, under President Clinton’s leadership, we will let people feel as secure in investing in communities here at home as they do when they invest overseas.”

The bill also includes two other measures that have broad bipartisan support  -  an increase of the housing tax credit from the current $1.25 per capita limit to an eventual $1.75 per capita limit and an acceleration of the phase-in of the increase in the private activity bond limit that was enacted last year.  Rep. Rangel expressed his hope that the final conference report would make these provisions even stronger.