Representative Danny K. Davis Introduces Legislation to Spur Economic Development in Real Estate
Representative Danny K. Davis Introduces Legislation
to Spur Economic Development in Real Estate
For Immediate Release
March 16, 2010
Washington, D.C. - On March 12, 2010 Congressman Danny K. Davis (D-IL), along with Representatives Peter Roskam (R-IL) and Patrick Tiberi (R-OH) introduced, H.R. 4839, a bill that will enhance economic development in underserved areas. The bill will modify Section 118(a) of the federal tax code to reflect the increased use of partnerships or Limited Liability Corporations (LLCs), an exemption already provided to corporations.
At the time of enactment of Section 118 (a) in 1954, corporations were the predominant form of business entity. Since then, the uses of partnerships and LLCs have increased dramatically. Modifying Section 118 (a) will extend a tax exemption to LLCs or partnerships provided to corporations when entering into local development contracts such as tax increment financing (TIFs).