Section 1 Short title
This Act may be cited as the “Environmental Justice Act of 2016”.
Environmental Justice Act of 2016
A BILL
To amend the Internal Revenue Code of 1986 to provide support to environmental justice communities and environmental justice projects.
Sec. 2 Purpose
The purpose of this Act is—
to ensure that environmental justice communities have the opportunity to participate in developing solutions to environmental blight and health-related problems and to actively participate in developing solutions for their community;
to promote the development and maintenance of parks and green open spaces in environmental justice communities; and
to encourage not-for-profit organizations, colleges, and universities to assist in environmental justice projects through tax credit incentives.
Sec. 3 Credit against employment taxes for certain expenses relating to environmental justice communities and environmental justice projects
In general— Section 3111 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
“(g) Environmental justice
“(1) Allowance of credit—There shall be allowed as a credit against the tax imposed by subsection (a) on wages paid with respect to employment of all employees of the eligible organization during the calendar year an amount equal to 40 percent of the amount of qualified expenditures of an eligible organization.
“(2) Limitation—The amount allowed as a credit for a calendar year shall not exceed $10,000.
“(3) Qualified expenditures—For purposes of paragraph (1)—
“(A) In general—The term qualified expenditures means amounts paid or incurred by an eligible organization to provide support to environmental justice communities or environmental justice projects.
“(B) Environmental justice community—The term environmental justice community means a community with significant representation of racial or ethnic minorities or low-income populations that experiences, or is at risk of experiencing, a significant or disproportionate burden of environmental stressors, risks, adverse human health effects, or environmental effects.
“(C) Environmental justice project—The term environmental justice project means—
“(i) assistance with competitive grant writing,
“(ii) legal aide to advocate for affected communities,
“(iii) community organizing,
“(iv) advocacy at public forums,
“(v) research and human health monitoring,
“(vi) promotion and development of green space in urban communities,
“(vii) encouraging public-private partnerships, and
“(viii) any other project or activity designated by the Secretary.
“(4) Eligible organization—For purposes of this subsection, the term eligible organization means an organization described in section 501(c)(3) and exempt from taxation under section 501(a).
“(5) Regulations—The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out this subsection.”
Effective date— The amendment made by subsection (a) shall apply to periods after December 31, 2015.