Code Section 1400
| Code Section | Effective Date | Name of Act | Name of Provision | 10yr Revenue Estimate ($millions) |
|---|---|---|---|---|
| 1400, 1400A, 1400B, and 1400C | *12/31/2009 | The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 | Tax incentives for investment in the District of Columbia | -138 |
* Notes on Effective Date
The provision extending the period of designation of the District of Columbia Enterprise Zone and the provision extending the period for which the term ‘‘qualified capital gain’’ refers applies to periods after December 31, 2009. The provision extending tax-exempt financing for certain zone facilities applies to bonds issued after December 31, 2009. The provision amending the definitions of DC Zone business stock, DC Zone partnership interest, and DC Zone business property applies to property acquired or substantially improved after December 31, 2009. The provision extending the first time homebuyer credit applies to homes purchased after December 31, 2009.
Tax incentives for investment in the District of Columbia
Explanation of Provision
The provision extends for two years, through December 31, 2011, the designation of the District of Columbia Enterprise Zone. The provision also extends for two years through December 31, 2011, the special $15 million per-user bond limitation and the relief from resident and employee requirements for certain tax-exempt bonds issued in the District of Columbia Enterprise Zone.
The provision extends for two years the zero-percent capital gains rate applicable to capital gains from the sale or exchange of any DC Zone asset held for more than five years (and, as amended, acquired or substantially improved before January 1, 2012). The provision also extends for two years the period to which the term ‘‘qualified capital gain’’ refers. As amended, the term ‘‘qualified capital gain’’ shall not include any gain attributable to periods before January 1, 1998, or after December 31, 2016.
The provision extends the first-time D.C. homebuyer credit for two years (as amended, to apply to property purchased before January 1, 2012).
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