PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 869 "(h) BASIS ADJUSTMENT.—For purposes of this subtitle, if a credit is allowed under this section with respect to the purchase of any residence, the basis of such residence shall be reduced by the amount of the credit so allowed. "(i) TERMINATION.—T his section shall not apply to any property purchased after December 31, 2000.". (b) CONFORMING AMENDMENTS. — (1) Subsection (d) of section 39 is amended by adding at the end the following new paragraph: "(8) No CARRYBACK OF DC ZONE CREDITS BEFORE EFFECTIVE DATE.— No portion of the unused business credit for any taxable year which is attributable to the credits allowable under subchapter U by reason of section 1400 may be carried back to a taxable year ending before the date of the enactment of section 1400.". (2) Subsection (a) of section 1016 is amended by striking "and" at the end of paragraph (25), by striking the period at the end of paragraph (26) and inserting ", and", and by adding at the end thereof the following new paragraph: "(27) in the case of a residence with respect to which a credit was allowed under section 1400C, to the extent provided in section 1400C(h).". (c) CLERICAL AMENDMENT.— The table of subchapters for chapter 1 is amended by adding at the end the following new item: "Subchapter W. District of Columbia Enterprise Zone.". (d) EFFECTIVE DATE.— Except as provided in subsection (c), 26 USC 39 note, the amendments made by this section shall take effect on the date of the enactment of this Act. TITLE VIII—WELFARE-TO-WORK INCENTIVES SEC. 801. INCENTIVES FOR EMPLOYING LONG-TERM FAMILY ASSIST- ANCE RECIPIENTS. (a) IN GENERAL. —Subpart F of part IV of subchapter A of chapter 1 is amended by inserting after section 51 the following new section: "SEC. 51A. TEMPORARY INCENTIVES FOR EMPLOYING LONG-TERM FAMILY ASSISTANCE RECIPIENTS. "(a) DETERMINATION OF AMOUNT. — For purposes of section 38, the amount of the welfare-to-work credit determined under this section for the taxable year shall be equal to— "(1) 35 percent of the qualified first-year wages for such year, and "(2) 50 percent of the qualified second-year wages for such year. "(b) QUALIFIED WAGES DEFINED. — For purposes of this section— "(1) IN GENERAL.— The term 'qualified wages' means the wages paid or incurred by the employer during the taxable year to individuals who are long-term family assistance recipients. "(2) QUALIFIED FIRST-YEAR WAGES.— The term 'qualified first-year wages' means, with respect to any individual, qualified wages attributable to service rendered during the 1-year
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