To amend the Internal Revenue Code of 1986 to extend certain tax benefits related to empowerment zones to the District of Columbia.
Summary
H.R. 6537 aims to amend the Internal Revenue Code of 1986 to extend certain tax benefits related to empowerment zones to the District of Columbia. The bill proposes treating a significant portion of D.C. as an empowerment zone, making it eligible for specific tax incentives.
This designation would not affect the number of empowerment zones designated elsewhere. The changes would be effective for periods beginning after December 31, 2025.
Expected Effects
If enacted, H.R. 6537 would provide the District of Columbia with access to tax benefits similar to those available in designated empowerment zones. This could stimulate economic development and job creation within the District.
The bill amends Section 1391(b)(2) of the Internal Revenue Code to include D.C. as an empowerment zone.
Potential Benefits
- Potential for increased investment and business growth in the District of Columbia.
- Job creation and economic stimulus within the designated empowerment zone.
- Attraction of new businesses and expansion of existing ones due to tax incentives.
- Possible reduction in unemployment rates within the District.
- Enhanced community development and revitalization efforts.
Potential Disadvantages
- Potential for increased complexity in tax administration and compliance.
- Possible displacement of existing businesses or residents due to increased development.
- Risk of inefficient allocation of resources if the empowerment zone is not managed effectively.
- The benefits may disproportionately favor certain areas or businesses within the District.
- Potential for unintended consequences or loopholes that could be exploited.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. By incentivizing economic activity in specific areas, the bill aims to promote the general welfare.
However, the equal protection clause of the Fourteenth Amendment could be relevant if the implementation of the empowerment zone creates significant disparities or discriminatory effects within the District or compared to other regions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).