Section 301. Community Renewal Savings.
This section requires each Local Opportunity Board to develop and implement a method for calculating Community Renewal Savings by taking into consideration increased income by participants of the program and the cost to run the programs. Further, this section provides for the monetization and securing of savings from the poverty prevention programs and uses the saved capital for program expansion and deficit reduction.
Section 302. Community Tax Incentives.
This section identifies 25% of the Community Renewal Savings shall be allocated to five specific Community Tax Incentives (see Sections 403-408).
Section 303. Renewal Employer Refundable Credit.
This section allows for Qualified Opportunity Employers to receive a $3,000 tax credit if they hire and/or retain workers that fit into criteria that have been determined to have a meaningful impact on the local economy.
Section 304. Unrelated Business Taxable Income Deduction.
This section allows for Qualified Opportunity Organizations, defined as a 501(c)(3) and designated by the Local Opportunity Board to be a recipient, to take a 25% tax deduction on services provided in a local economy.
Section 305. Qualified Community Renewal Contribution.
This section provides for individuals and corporations who donate to a Qualified Opportunity Organization to take a charitable donation deduction equal to 120% of the donation during that tax year.
Section 306. High School Graduation Tax Credit.
This section allows for an individual who graduates from a Qualified Opportunity School, identified as a secondary school in an eligible area, to receive a $500 tax credit.
Section 307. Modified New Markets Tax Credit.
This section allows for the expansion of the Community Development Financial Institutions (CDFI) in the eligible areas.
Section 308. Earned Income Tax Credit.
This section allows for the Local Opportunity Board to modify the eligibility or percentage requirements for the EITC in the eligible area, which shall be evaluated by the National Opportunity Board and approved by Congress.
Section 309. Community Renewal Bonds.
This section grants the Local Opportunity Board the authority to issue Renewal Opportunity Bonds to assist with the financing of the Community Renewal programs. These bonds will have a maturity date of seven years.