Distressed Area Tax Incentive Act

Summary

Distressed Area Tax Incentive Act - Amends the Internal Revenue Code to allow an additional ten percent investment tax credit for business property which is located in an area which has been designated by the Secretary of Labor as a "labor surplus" area. Allows an income tax deduction for depreciation on labor surplus area property equal to twice the amount otherwise allowable for the property. Increases the amount of earnings which an employer in a labor surplus area may accumulate in his business without incurring the accumulated earnings tax. Extends the credit for the employment of new employees to taxable years beginning after 1978. Allows an additional tax credit for the employment of new employees in labor surplus areas. Specifies a formula for determining the taxable income of a domestic international sales corporation (DISC) attributable to base period export gross receipts where such corporation earns taxable income in a labor surplus area. Permits the deferral of payment of income, unemployment, and social security taxes which are attributable to income earned in a labor surplus area to the end of the taxable year in which they are payable.

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1 official file

• Introduced in House

  summary · EN · 9 August 1978

  Open at official source

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