Page:United States Statutes at Large Volume 111 Part 1.djvu/888

 Ill STAT. 864 PUBLIC LAW 105-34—AUG. 5, 1997 "(2) all other census tracts— "(A) which are located in the District of Columbia, and "(B) for which the poverty rate is not less than than 20 percent. "(c) DISTRICT OF COLUMBIA ENTERPRISE ZONE. — For purposes of this subchapter, the terms 'District of Columbia Enterprise Zone' and *DC Zone' mean the District of Columbia Enterprise Zone designated by subsection (a). "(d) SPECIAL RULES FOR APPLICATION OF EMPLOYMENT CREDIT. — "(1) EMPLOYEES WHOSE PRINCIPAL PLACE OF ABODE IS IN DISTRICT OF COLUMBIA. — With respect to the DC Zone, section 1396(d)(1)(B) (relating to empowerment zone employment credit) shall be applied by substituting 'the District of Columbia' for 'such empowerment zone'. "(2) No DECREASE OF PERCENTAGE IN 2002. — In the case of the DC Zone, section 1396 (relating to empowerment zone employment credit) shall be applied by substituting "20" for "15 in the table contained in section 1396(b). The preceding sentence shall apply only with respect to qualified zone employ- ees, as defined in section 1396(d), determined by treating no area other than the DC Zone as an empowerment zone or enterprise community. "(e) SPECLVL RULE FOR APPLICATION OF ENTERPRISE ZONE BUSI- NESS DEFINITION.— For purposes of this subchapter and for purposes of applying subchapter U with respect to the DC Zone, section 1397B shall be applied without regard to subsections (b)(6) and (c)(5) thereof. " (f) TIME FOR WHICH DESIGNATION APPLICABLE.— "(1) IN GENERAL.— The designation made by subsection (a) shall apply for the period beginning on January 1, 1998, and ending on December 31, 2002. "(2) COORDINATION WITH DC ENTERPRISE COMMUNITY DES- IGNATED UNDER SUBCHAPTER U.— The designation under subchapter U of the census tracts referred to in subsection (b)(1) as an enterprise community shall terminate on December 31, 2002. "SEC. 1400A. TAX-EXEMPT ECONOMIC DEVELOPMENT BONDS. "(a) IN GENERAL.—In the case of the District of Columbia Enterprise Zone, subparagraph (A) of section 1394(c)(1) (relating to limitation on amount of bonds) shall be applied by substituting '$15,000,000 ' for '$3,000,000 '. "(b) PERIOD OF APPLICABILITY.—T his section shall apply to bonds issued during the period beginning on January 1, 1998, and ending on December 31, 2002. "SEC. 1400B. ZERO PERCENT CAPITAL GAINS RATE. "(a) EXCLUSION.— Gross income shall not include qualified capital gain from the sale or exchange of any DC Zone asset held for more than 5 years. "(b) DC ZONE ASSET.—For purposes of this section— "(1) IN GENERAL.— The term 'DC Zone asset' means— "(A) any DC Zone business stock, "(B) any DC Zone partnership interest, and "(C) any DC Zone business property. "(2) DC ZONE BUSINESS STOCK.—

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