§1400. Establishment of DC Zone

(a) In general

For purposes of this title-

(1) the applicable DC area is hereby designated as the District of Columbia Enterprise Zone, and

(2) except as otherwise provided in this subchapter, the District of Columbia Enterprise Zone shall be treated as an empowerment zone designated under subchapter U.

(b) Applicable DC area

For purposes of subsection (a), the term "applicable DC area" means the area consisting of-

(1) the census tracts located in the District of Columbia which are part of an enterprise community designated under subchapter U before the date of the enactment of this subchapter, and

(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 ¹ 20 percent as determined on the basis of the 1990 census.

(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 employees, as defined in section 1396(d), determined by treating no area other than the DC Zone as an empowerment zone or enterprise community.

(e) Special rule for application of enterprise zone business 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 designated 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.

(Added Pub. L. 105–34, title VII, §701(a), Aug. 5, 1997, 111 Stat. 863 ; amended Pub. L. 105–206, title VI, §6008(a), July 22, 1998, 112 Stat. 811 .)

References in Text

The date of the enactment of this subchapter, referred to in subsec. (b)(1), is the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997.

Amendments

1998-Subsec. (b)(2)(B). Pub. L. 105–206 inserted "as determined on the basis of the 1990 census" after "percent".

Effective Date of 1998 Amendment

Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.

Section Referred to in Other Sections

This section is referred to in sections 39, 1400B of this title.

¹ So in original. The second "than" probably should not appear.