Opening Statement of the Hon. William J. Coyne, a Representative in Congress from the State of Pennsylvania

Hearing on Tax Incentives for Renewal Communities

May 21, 2002

At today's hearing the Oversight Subcommittee will have an opportunity to discuss the tax benefits available to recently-designated "Renewal Communities."

These forty urban and rural areas will provide for economic development employment in some of the most depressed areas in our country.

The "Renewal Communities" legislation was signed into law by President Clinton at the end of 2000. This legislation also included tax provisions to provide for a "new markets" credit, to expand empowerment zones, to expand the low income housing tax credit and private activity tax-exempt bonds, and to extend Brownfields tax incentives.

The "Renewal Communities" tax provisions build on the empowerment zone model of economic development championed by Congressmen Charlie Rangel, Danny Davis, and J.C. Watts, and former HUD Secretary Jack Kemp.

The "Community Renewal Act of 1996" was the catalyst for this Committee's discussion of how we might provide tax incentives to attract investment, stimulate job growth, and create affordable housing in our most distressed urban and rural areas.

I want to thank all the witnesses for attending the Subcommittee's hearing. The testimony of officials from areas recently designated as "Renewal Communities" will allow us to begin our oversight of the program. I commend Subcommittee Chairman Houghton for scheduling this important hearing.

Thank you very much.