WASHINGTON, D.C. - Select Revenue Measures Subcommittee Chairman Richard E. Neal (D-MA) delivered the following statement today at a hearing on tax incentives for distressed communities, including the Empowerment Zone and Renewal Communities programs, which expire on Dec. 31, 2009.
“I call this hearing to order. Please take your seats.
“Our hearing today is an examination of the Empowerment Zone, Enterprise Community, and Renewal Community programs, which are scheduled to expire at the end of this year. This Committee, and particularly our Chairman, Mr. Rangel, was instrumental in the creation of these programs to revitalize distressed communities, both with tax incentives and federal grants.
“However, since their creation in the Budget Act of 1993, they have been expanded and extended several times. While each program shares the same expiration date, the tax benefits between them vary leading to confusion and under-utilization.
“I believe the need for assistance to our most-distressed communities is greater than ever. John F. Kennedy once said, ‘We will neglect our cities to our peril, for in neglecting them we neglect the nation.’
“Our witnesses today have battled against that neglect for both large and small cities, both urban and rural communities. Today, we will hear from business owners and private economic development experts, from local and federal officials, and from the quiet corners of Alabama to the bustling streets of Manhattan. And while many will suggest improvements to the program, they all believe there is merit to the program and recommend extension.
“What sets these programs apart from other federal assistance is the true partnership and strategic planning that is required up-front from local leaders. As a former mayor of a city which was once a beneficiary of this program, and should be once again in the future, I know that local buy-in is essential to success.
“While the Administration has only requested a one-year extension of these programs, I am hopeful that as we move forward, Congress will offer a long-term incentive package to distressed cities and communities that are willing to partner with us for upward progression. As Mahatma Ghandi said, ‘You may never know what results come of your action, but if you do nothing there will be no result.’ Empowering our cities to help themselves is action this Committee can and should take."
