Page:United States Statutes at Large Volume 116 Part 1.djvu/65

 PUBLIC LAW 107-147—MAR. 9, 2002 116 STAT. 39 "(B) the amount taken into account under section 179(b)(2) with respect to any section 179 property which is qualified New York Liberty Zone property shall be 50 percent of the cost thereof. "(2) QUALIFIED NEW YORK LIBERTY ZONE PROPERTY.— For purposes of this subsection, the term 'qualified New York Liberty Zone property' has the meaning given such term by subsection (b)(2). "(3) RECAPTURE. — Rules similar to the rules under section Applicability. 179(d)(10) shall apply with respect to any qualified New York Liberty Zone property which ceases to be used in the New York Liberty Zone. "(g) EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION Applicabmty. OF GAIN. — Notwithstanding subsections (g) and (h) of section 1033, clause (i) of section 1033(a)(2)(B) shall be applied by substituting '5 years' for '2 years' with respect to property which is compulsorily or involuntarily converted as a result of the terrorist attacks on September 11, 2001, in the New York Liberty Zone but only if substantially all of the use of the replacement property is in the City of New York, New York. "(h) NEW YORK LIBERTY ZONE. —For purposes of this section, the term 'New York Liberty Zone' means the area located on or south of Canal Street, East Broadway (east of its intersection with Canal Street), or Grand Street (east of its intersection with East Broadway) in the Borough of Manhattan in the City of New York, New York. " (i) REFERENCES TO GOVERNOR AND MAYOR.— For purposes of this section, the terms 'Governor' and 'Mayor' mean the Governor of the State of New York and the Mayor of the City of New York, New York, respectively.". (b) CREDIT ALLOWED AGAINST REGULAR AND MINIMUM TAX. — (1) IN GENERAL.— Subsection (c) of section 38 (relating to 26 USC 38. limitation based on amount of tax) is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: "(3) SPECIAL RULES FOR NEW YORK LIBERTY ZONE BUSINESS EMPLOYEE CREDIT.— "(A) IN GENERAL.—In the case of the New York Liberty Zone business employee credit— "(i) this section and section 39 shall be applied Applicability. separately with respect to such credit, and "(ii) in applying paragraph (1) to such credit— "(I) the tentative minimum tax shall be treated as being zero, and "(II) the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the New York Liberty Zone business employee credit). "(B) NEW YORK LIBERTY ZONE BUSINESS EMPLOYEE CREDIT.— For purposes of this subsection, the term 'New York Liberty Zone business employee credit' means the portion of work opportunity credit under section 51 determined under section 1400L(a).". (2) CONFORMING AMENDMENT. —Subclause (II) of section 38(c)(2)(A)(ii) is amended by inserting "or the New York Liberty Zone business employee credit" after "employment credit". 99-194 0-03 -3:QL 3 Parti

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