PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 887 in determining whether the requirement of subparagraph (A) or (B) of section 1392(a)(3) is met. "(ii) SPECIAL RULE FOR RURAL AREAS. — If a population census tract (or equivalent division under section 1392(b)(4)) in a rural area exceeds 1,000 square miles or includes a substantial amount of land owned by the Federal, State, or local government, the nominated area may exclude such excess square mileage or governmentally owned land and the exclusion of that area will not be treated as violating the continuous boundary requirement of section 1392(a)(3)(B). "(C) AGGREGATE POPULATION LIMITATION. —The aggregate population limitation under the last sentence of subsection (b)(2) shall not apply to a designation under paragraph (1)(B). " (D) PREVIOUSLY DESIGNATED ENTERPRISE COMMU- NITIES MAY BE INCLUDED.— Subsection (e)(5) shall not apply to any enterprise community designated under subsection (a) that is also nominated for designation under this subsection. "(E) INDIAN RESERVATIONS MAY BE NOMINATED.— "(i) IN GENERAL.— Section 1393(a)(4) shall not apply to an area nominated for designation under this subsection. "(ii) SPECIAL RULE. —An area in an Indian reservation shall be treated as nominated by a State and a local government if it is nominated by the reservation governing body (as determined by the Secretary of Interior).". (b) EMPLOYMENT CREDIT NOT TO APPLY TO NEW EMPOWERMENT ZONES. —Section 1396 (relating to empowerment zone employment credit) is amended by adding at the end the following new subsection: " (e) CREDIT NOT TO APPLY TO EMPOWERMENT ZONES DES- IGNATED UNDER SECTION 1391(g).— Th is section shall be applied without regard to any empowerment zone designated under section 1391(g). ". (c) INCREASED EXPENSING UNDER SECTION 179 NOT TO APPLY IN DEVELOPABLE SITES.— Section 1397A (relating to increase in expensing under section 179) is amended by adding at the end the following new subsection: "(c) LIMITATION. —For purposes of this section, qualified zone property shall not include any property substantially all of the use of which is in any parcel described in section 1391(g)(3)(A)(iii).". (d) CONFORMING AMENDMENTS. — (1) Subsections (e) and (f) of section 1391 are each amended by striking "subsection (a)" and inserting "this section". (2) Section 1391(c) is amended by striking "this section" and inserting "subsection (a)". SEC. 953. VOLUME CAP NOT TO APPLY TO ENTERPRISE ZONE FACILITY BONDS WITH RESPECT TO NEW EMPOWERMENT ZONES. (a) IN GENERAL.— Section 1394 (relating to tax-exempt enterprise zone facility bonds) is amended by adding at the end the following new subsection: "(f) BONDS FOR EMPOWERMENT ZONES DESIGNATED UNDER SEC- TION 1391(g).—
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