Mitch Landrieu: “Today I am introducing a modification of legislation I introduced earlier in the 107th Congress relating to the Renewal…”

“Today I am introducing a modification of legislation I introduced earlier in the 107th Congress relating to the Renewal Community program. The Renewal Community program has been tremendously valuable in promoting job growth and economic development in the poorest areas of the country. There are 40 urban and rural renewal community areas designated under the Community Renewal Tax Relief Act of 2000. The poverty rate in renewal communities is at least 20 percent, and the unemployment rate is one-and-a-half times the national level. The households in the renewal communities have incomes that are 80 percent below the median income of households in their local jurisdictions. Four areas of Louisiana received renewal community designations. Businesses in a renewal community can receive a variety of tax benefits for hiring residents of the same renewal community. These tax benefits include a $1,500 Federal credit for hiring workers from the renewal community, as well as a $2,400 work opportunity credit for hiring employees from groups with traditionally high unemployment rates. There is one important qualification in the program that poses a peculiar problem in Louisiana, as well as a few other parts of the country: a business can only take advantage of these credits if it hires residents from the same renewal community that the business is in. Why is this a problem for Louisiana? Because, some of our renewal communities border each other.”