Page:United States Statutes at Large Volume 114 Part 5.djvu/648

 114 STAT. 2763A-608 PUBLIC LAW 106-554—APPENDIX G "(ii) in the case of a tract located within a metropoHtan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. Subparagraph (B) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States. "(2) TARGETED AREAS. —The Secretary may designate any area within any census tract as a low-income community if— "(A) the boundary of such area is continuous, "(B) the area would satisfy the requirements of paragraph (1) if it were a census tract, and "(C) an inadequate access to investment capital exists in such area. "(3) AREAS NOT WITHIN CENSUS TRACTS.— In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income. "(f) NATIONAL LIMITATION ON AMOUNT OF INVESTMENTS DES- IGNATED.— "(1) IN GENERAL. — There is a new markets tax credit limitation for each calendar year. Such limitation is— " (A) $1,000,000,000 for 2001, " (B) $1,500,000,000 for 2002 and 2003, "(C) $2,000,000,000 for 2004 and 2005, and " (D) $3,500,000,000 for 2006 and 2007. "(2) ALLOCATION OF LIMITATION.—The limitation under paragraph (1) shall be allocated by the Secretary among qualified community development entities selected by the Secretary. In making allocations under the preceding sentence, the Secretary shall give priority to any entity— "(A) with a record of having successfully provided capital or technical assistance to disadvantaged businesses or communities, or "(B) which intends to satisfy the requirement under subsection (b)(1)(B) by making qualified low-income community investments in 1 or more businesses in which persons unrelated to such entity (within the meaning of section 267(b) or 707(b)(1)) hold the majority equity interest. "(3) CARRYOVER OF UNUSED LIMITATION. —I f the new markets tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2014. " (g) RECAPTURE OF CREDIT IN CERTAIN CASES.— "(1) IN GENERAL. — If, at any time during the 7-year period beginning on the date of the original issue of a qualified equity investment in a qualified community development entity, there is a recapture event with respect to such investment, then the tax imposed by this chapter for the taxable year in which such event occurs shall be increased by the credit recapture amount.

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