Rep. Danny K. Davis Introduces Legislation to Spur Economic Development in Real Estate

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March 12, 2010
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Rep. Danny K. Davis IntroducesLegislation
to Spur Economic Development in Real Estate

 

For ImmediateRelease

March 12,2010

 

Contact: YulEdwards

202.225.5006

 

Washington,D.C. - On March 10, 2010 Congressman Danny K. Davis (D-IL), along with RepresentativesPeter Roskam (R-IL) and Patrick Tiberi (R-OH) introduced a bill that willenhance economic development in underserved areas.  The bill will modifySection 118(a) of the federal tax code to reflect the increased use ofpartnerships or Limited Liability Corporations (LLCs), an exemption alreadyprovided to corporations.

 

At the timeof enactment of Section 118 (a) in 1954, corporations were the predominant formof business entity.  Since then,the uses of partnerships and LLCs have increased dramatically.  ModifyingSection 118 (a) will extend a tax exemption to LLCs or partnerships provided to corporations when enteringinto local development contracts such as tax increment financing (TIFs).

 

I am hopefulthat the passage of this bill will encourage more development and redevelop ofblight areas that would otherwise be unfeasible. As the economy begins to recover, there will be many opportunities to developunderserved markets nationwide.  Davisstated, “I am encouraged that with this change, we can pioneer a new era ofreal estate development that will change many poorer inner city areas and manyunderserved communities”.

 

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