‘‘(2) INDIVIDUALS
RESIDENT
IN
MULTIPLE 
ZONES.—Individuals who were residents of two or 
more National Enterprise Zones during their taxable 
year but were residents of a National Enterprise 
Zone for their entire taxable year shall be eligible 
under this section. 
‘‘(3) ESTATES AND CERTAIN TRUSTS.—The es-
tate of an individual and testamentary trusts of said 
individual shall be eligible under this section if the 
decedent was a resident of a National Enterprise 
Zone for at least two complete taxable years prior to 
the individual’s death. 
‘‘SEC. 1400P. NATIONAL ENTERPRISE ZONE INDIVIDUAL 
TAXABLE INCOME. 
‘‘(a) NATIONAL
ENTERPRISE
ZONE
INDIVIDUAL 
TENTATIVE
TAXABLE
INCOME.—National Enterprise 
Zone tentative individual taxable income shall be equal to 
taxable income (as defined by section 63 without regard 
to section 179(e)) plus the additions set forth in sub-
section (b) less the deductions set forth in subsection (c). 
‘‘(b) ADDITIONS TO TAXABLE INCOME TO DETER-
MINE NATIONAL ENTERPRISE INDIVIDUAL TENTATIVE 
TAXABLE INCOME.—The following amounts shall be 
added to taxable income for purposes of determining Na-
tional Enterprise Zone individual tentative taxable in-
come— 
‘‘(1) any amount excluded by section 103; 
‘‘(2) any amount excluded by section 105; 
‘‘(3) any amount excluded by section 106; and 
‘‘(4) any amount excluded by section 125. 
‘‘(c) DEDUCTIONS FROM TAXABLE INCOME TO DE-
TERMINE
NATIONAL
ENTERPRISE
INDIVIDUAL
TEN-
TATIVE TAXABLE INCOME.—The following amounts shall 
be deducted from taxable income for purposes of deter-
mining National Enterprise Zone individual tentative tax-
able income— 
‘‘(1) the taxpayer’s distributive share of any 
partnership item (within the meaning of section 
702) that is not attributable to the conduct of an ac-
tive trade or business within a National Enterprise 
Zone; 
‘‘(2) the taxpayer’s pro rata share of any S cor-
poration item (within the meaning of section 1366) 
that is not attributable to the conduct of an active 
trade or business within a National Enterprise Zone; 
and 
‘‘(3) income derived from business that does not 
constitute the conduct of an active trade or business 
within a National Enterprise Zone.
‘‘(d) NATIONAL
ENTERPRISE
ZONE
INDIVIDUAL 
TAXABLE INCOME.—National Enterprise Zone individual 
taxable income shall be National Enterprise Zone tentative 
individual taxable income less— 
‘‘(1) net savings (as defined in subsection e); 
‘‘(2) capital gains subject to tax by section 1 
provided that the property disposed of, the disposi-
tion of which gave rise to the gain or loss, was ac-
quired by the taxpayer at a time the taxpayer was 
a resident of a National Enterprise Zone; 
‘‘(3) expenditures made to acquire inventory 
property; 
‘‘(4) the amount, if any, the taxpayer elects to 
deduct pursuant to 179(e) that exceeds the limita-
tions in section 179(b); 
‘‘(5) deductions reduced pursuant to section 68; 
and 
‘‘(6) amounts by which the exemption was re-
duced pursuant to section 151(d)(3). 
‘‘(e) NET SAVINGS.— 
‘‘(1) GENERAL RULE.—Net savings means de-
posits or contributions to non-qualified financial ac-
counts less withdraws or distributions from non-
qualified financial accounts held.
‘‘(2) NONQUALIFIED FINANCIAL ACCOUNTS.—A 
non-qualified financial account means an account 
maintained with a bank (other than a checking ac-
count), a regulated investment company, an invest-
ment bank or brokerage firm that is not a qualified 
trust or account within the meaning of subchapter 
D. 
‘‘(f) TAX UPON LEAVING ZONE.—The cumulative 
sum of net savings deducted pursuant to subsection (d)(1) 
(if greater than zero) shall be includible in gross income 
and taxed at a 17 percent rate upon a person becoming 
a non-resident of a National Enterprise Zone. 
‘‘SEC. 1400Q. EFFECT OF NATIONAL ENTERPRISE ZONE 
DESIGNATION ON CORPORATIONS. 
‘‘(a) CORPORATE ALTERNATIVE NATIONAL ENTER-
PRISE ZONE TAX.—If for any taxable year, any corpora-
tion (other than an S corporation) has any National En-
terprise Zone taxable income, then, in lieu of any tax im-
posed by section 11 or section 55, said corporation may 
elect, in a form prescribed by the Secretary, to pay a tax 
which shall consist of the sum of— 
‘‘(1) a tax computed on the taxable income re-
duced by the amount of National Enterprise Zone 
tentative corporate taxable income (if greater than