PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 865 "(A) IN GENERAL.— The term 'DC Zone business stock' means any stock in a domestic corporation which is originally issued after December 31, 1997, if— "(i) such stock is acquired by the taxpayer, before January 1, 2003, at its original issue (directly or through an underwriter) solely in exchange for cash, "(ii) as of the time such stock was issued, such corporation was a DC Zone business (or, in the case of a new corporation, such corporation was being organized for purposes of being a DC Zone business), and "(iii) during substantially all of the taxpayer's holding period for such stock, such corporation qualified as a DC Zone business. "(B) REDEMPTIONS.—A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph. " (3) DC ZONE PARTNERSHIP INTEREST. — The term *DC Zone partnership interest' means any capital or profits interest in a domestic partnership which is originally issued after December 31, 1997, if — "(A) such interest is acquired by the taxpayer, before January 1, 2003, from the partnership solely in exchange for cash, "(B) as of the time such interest was acquired, such partnership was a DC Zone business (or, in the case of a new partnership, such partnership was being organized for purposes of being a DC Zone business), and "(C) during substantially all of the taxpayer's holding period for such interest, such partnership qualified as a DC Zone business. A rule similar to the rule of paragraph (2)(B) shall apply for purposes of this paragraph. "(4) DC ZONE BUSINESS PROPERTY.— "(A) IN GENERAL.—The term 'DC Zone 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, 1997, and before January 1, 2003, "(ii) the original use of such property in the DC Zone 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 DC Zone business of the taxpayer. " (B) SPECIAL RULE FOR BUILDINGS WHICH ARE SUBSTAN- TIALLY IMPROVED.— "(i) IN GENERAL.— The requirements of clauses (i) and (ii) of subparagraph (A) shall be treated as met with respect to— "(I) property which is substantially improved by the taxpayer before January 1, 2003, and "(II) any land on which such property is located. "(ii) SUBSTANTIAL IMPROVEMENT.—For purposes of clause (i), property shall be treated as substantially improved by the taxpayer only if, during any 24-month period beginning after December 31, 1997, additions
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