Page:United States Statutes at Large Volume 114 Part 5.djvu/644

 114 STAT. 2763A-604 PUBLIC LAW 106-554—APPENDIX G (6) The table of subparts for part III of subchapter U of chapter 1 is amended by striking the last item and inserting the following new items: "Subpart C. Nonrecognition of gain on rollover of empowerment zone investments. "Subpart D. General provisions.". (7) The table of sections for subpart D of such part III is amended to read as follows: "Sec. 1397C. Enterprise zone business defined. "Sec. 1397D. Qualified zone property defined.". (c) EFFECTIVE DATE. —The amendments made by this section shall apply to qualified empowerment zone assets acquired after the date of the enactment of this Act. SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWER- MENT ZONE STOCK. (a) IN GENERAL. —Subsection (a) of section 1202 is amended to read as follows: "(a) EXCLUSION.— "(1) IN GENERAL.—In the case of a taxpayer other than a corporation, gross income shall not include 50 percent of any gain from the sale or exchange of qualified small business stock held for more than 5 years. "(2) EMPOWERMENT ZONE BUSINESSES.— "(A) IN GENERAL.—In the case of qualified small business stock acquired after the date of the enactment of this paragraph in a corporation which is a qualified business entity (as defined in section 1397C(b)) during substantially all of the taxpayer's holding period for such stock, paragraph (1) shall be applied by substituting '60 percent' for '50 percent'. "(B) CERTAIN RULES TO APPLY.—Rules similar to the rules of paragraphs (5) and (7) of section 1400B(b) shall apply for purposes of this paragraph. "(C) GAIN AFTER 2014 NOT QUALIFIED. — Subparagraph (A) shall not apply to gain attributable to periods after December 31, 2014. "(D) TREATMENT OF DC ZONE.— The District of Columbia Enterprise Zone shall not be treated as an empowerment zone for purposes of this paragraph.". (b) CONFORMING AMENDMENTS.— (1) Paragraph (8) of section 1(h) is amended by striking "means" and all that follows and inserting "means the excess of— "(A) the gain which would be excluded from gross income under section 1202 but for the percentage limitation in section 1202(a), over "(B) the gain excluded from gross income under section 1202. ". (2) The section heading for section 1202 is amended by striking "50-PERCENT" and inserting "PARTIAL". (3) The table of sections for part I of subchapter P of chapter 1 is amended by striking "50-percent" and inserting "Partial".

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