1. Extension of empowerment zones (a) In general Section 1391(d)(1)(A)(i) of the Internal Revenue Code of 1986 is amended by striking December 31, 2017 and inserting December 31, 2029 . (b) Effective date The amendment made by this section shall take effect on January 1, 2018. (c) Treatment of Certain Termination Dates Specified in Nominations In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section, the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide. 2. Reinstatement of qualified zone academy bonds (a) In general Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subpart: H Credit to holders of qualified zone academy bonds Sec. 54. Credit to holders. Sec. 54A. Qualified zone academy bonds. 54. Credit to holders (a) Allowance of Credit If a taxpayer holds a qualified zone academy bond on one or more credit allowance dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. (b) Amount of Credit (1) In general The amount of the credit determined under this subsection with respect to any credit allowance date for a qualified zone academy bond is 25 percent of the annual credit determined with respect to such bond. (2) Annual credit The annual credit determined with respect to any qualified zone academy bond is the product of— (A) the applicable credit rate, multiplied by (B)