PUBLIC LAW 106-554—APPENDIX G 114 STAT. 2763A-595 "(B) as of the time such interest was acquired, such partnership was a renewal community business (or, in the case of a new partnership, such partnership was being organized for purposes of being a renewal community business), and "(C) during substantially all of the taxpayer's holding period for such interest, such partnership qualified as a renewal community business. A rule similar to the rule of paragraph (2)(B) shall apply for purposes of this paragraph. " (4) QUALIFIED COMMUNITY BUSINESS PROPERTY.— "(A) IN GENERAL. —The term 'qualified community business property' means tangible property if— "(i) such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after December 31, 2001, and before January 1, 2010, "(ii) the original use of such property in the renewal community commences with the taxpayer, and "(iii) during substantially all of the taxpayer's holding period for such property, substantially all of the use of such property was in a renewal community business of the taxpayer. " (B) SPECLy;. RULE FOR SUBSTANTIAL IMPROVEMENTS. — The requirements of clauses (i) and (ii) of subparagraph (A) shall be treated as satisfied with respect to— "(i) property which is substantially improved by the taxpayer before January 1, 2010, and "(ii) any land on which such property is located. The determination of whether a property is substantially improved shall be made under clause (ii) of section 1400B(b)(4)(B), except that 'December 31, 2001' shall be substituted for 'December 31, 1997' in such clause. "(c) QUALIFIED CAPITAL GAIN. —For purposes of this section— "(1) IN GENERAL. —Except as otherwise provided in this subsection, the term 'qualified capital gain' means any gain recognized on the sale or exchange of— "(A) a capital asset, or "(B) property used in the trade or business (as defined in section 1231(b)). "(2) GAIN BEFORE 2002 OR AFTER 2014 NOT QUALIFIED.— The term 'qualified capital gain' shall not include any gain attributable to periods before January 1, 2002, or after December 31, 2014. "(3) CERTAIN RULES TO APPLY.—Rules similar to the rules of paragraphs (3), (4), and (5) of section 1400B(e) shall apply for purposes of this subsection. "(d) CERTAIN RULES TO APPLY.— For purposes of this section, rules similar to the rules of paragraphs (5), (6), and (7) of subsection (b), and subsections (f) and (g), of section 1400B shall apply; except that for such purposes section 1400B(g)(2) shall be applied by substituting 'January 1, 2002' for 'January 1, 1998' and 'December 31, 2014' for 'December 31, 2008'. "(e) REGULATIONS. —The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations to prevent the abuse of the purposes of this section.
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