Page:United States Statutes at Large Volume 111 Part 1.djvu/887

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 863 (2) APPLICATION OF CREDIT FOR INDIVIDUALS PERFORMING FEWER THAN 400 HOURS OF SERVICES.— Paragraph (3) of section 51(i) is amended to read as follows: "(3) INDIVIDUALS NOT MEETING MINIMUM EMPLOYMENT PERI- ODS.— "(A) REDUCTION OF CREDIT FOR INDIVIDUALS PERFORM- ING FEWER THAN 400 HOURS OF SERVICE. — In the case of an individual who has performed at least 120 hours, but less than 400 hours, of service for the employer, subsection (a) shall be applied by substituting '25 percent' for *40 percent'. "(B) DENIAL OF CREDIT FOR INDIVIDUALS PERFORMING FEWER THAN 120 HOURS OF SERVICE. —No wages shall be taken into account under subsection (a) with respect to any individual unless such individual has performed at least 120 hours of service for the employer.", (e) EFFECTIVE DATE.— The amendments made by this section 26 USC 5inote. shall apply to individuals who begin work for the employer after September 30, 1997. SEC. 604. ORPHAN DRUG TAX CREDIT. (a) IN GENERAL. —Section 45C (relating to clinical testing expenses for certain drugs for rare diseases or conditions) is amended by striking subsection (e). (b) EFFECTIVE DATE. —The amendment made by subsection (a) 26 USC 45C note. shall apply to amounts paid or incurred after May 31, 1997. TITLE VII—INCENTIVES FOR REVITAL- IZATION OF THE DISTRICT OF COLUM- BIA SEC. 701. TAX INCENTIVES FOR REVITALIZATION OF THE DISTRICT OF COLUMBIA. (a) IN GENERAL. —Chapter 1 is amended by adding at the end the following new subchapter: "Subchapter W—District of Columbia Enterprise Zone "Sec. 1400. Establishment of DC Zone. "Sec. 1400A. Tax-exempt economic development bonds. "Sec. 1400B. Zero percent capital gains rate. "Sec. 1400C. First-time homebuyer credit for District of Columbia. «SEC. 1400. ESTABLISHMENT OF DC ZONE. "(a) IN GENERAL. —For purposes of this title— "(1) the applicable DC area is hereby designated as the District of Columbia Enterprise Zone, and "(2) except as otherwise provided in this subchapter, the District of Columbia Enterprise Zone shall be treated as an empowerment zone designated under subchapter U. "(b) APPLICABLE DC AREA.—For purposes of subsection (a), the term 'applicable DC area' means the area consisting of— "(1) the census tracts located in the District of Columbia which are part of an enterprise community designated under subchapter U before the date of the enactment of this subchapter, and

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