Page:United States Statutes at Large Volume 114 Part 5.djvu/634

 114 STAT. 2763A-594 PUBLIC LAW 106-554—APPENDIX G "(1) GOVERNMENTS.— If more than one government seeks to nominate an area as a renewal community, any reference to, or requirement of, this section shall apply to all such governments. "(2) LOCAL GOVERNMENT.—The term 'local government' means— "(A) any county, city, town, township, parish, village, or other general purpose political subdivision of a State, and "(B) any combination of political subdivisions described in subparagraph (A) recognized by the Secretary of Housing and Urban Development. "(3) APPLICATION OF RULES RELATING TO CENSUS TRACTS. — The rules of section 1392(b)(4) shall apply. "(4) CENSUS DATA. —Population and poverty rate shall be determined by using 1990 census data. "PART II—RENEWAL COMMUNITY CAPITAL GAIN; RENEWAL COMMUNITY BUSINESS "Sec. 1400F. Renewal community capital gain. "Sec. 1400G. Renewal community business defined. «SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN. "(a) GENERAL RULE. — Gross income does not include any qualified capital gain from the sale or exchange of a qualified community asset held for more than 5 years. "(b) QUALIFIED COMMUNITY ASSET.— For purposes of this section— "(1) IN GENERAL.— The term 'qualified community asset' means— "(A) any qualified community stock, "(B) any qualified community partnership interest, and "(C) any qualified community business property. "(2) QUALIFIED COMMUNITY STOCK. — "(A) IN GENERAL.— Except as provided in subparagraph (B), the term 'qualified community stock' means any stock in a domestic corporation if— "(i) such stock is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, at its original issue (directly or through an underwriter) from the corporation solely in exchange for cash, "(ii) as of the time such stock was issued, such corporation was a renewal community business (or, in the case of a new corporation, such corporation was being organized for purposes of being a renewal community business), and "(iii) during substantially all of the taxpayer's holding period for such stock, such corporation qualified as a renewal community business. "(B) REDEMPTIONS. —^A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph. "(3) QUALIFIED COMMUNITY PARTNERSHIP INTEREST. —The term 'qualified community partnership interest' means any capital or profits interest in a domestic partnership if— "(A) such interest is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, from the partnership solely in exchange for cash.

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