‘‘(4) QUALIFIED ZONE DOMESTIC TRADE.—For 
purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
zone domestic trade’ means the transportation 
of goods or passengers between places in the 
qualified zone if such transportation is in the 
United States domestic trade. 
‘‘(B) QUALIFIED ZONE.—The term ‘quali-
fied zone’ means the Great Lakes Waterway 
and the St. Lawrence Seaway.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 246. USE OF QUALIFIED MORTGAGE BONDS TO FI-
NANCE RESIDENCES FOR VETERANS WITH-
OUT REGARD TO FIRST-TIME HOMEBUYER 
REQUIREMENT. 
(a) IN GENERAL.—Section 143(d)(2) (relating to ex-
ceptions to 3-year requirement) is amended by striking 
‘‘and’’ at the end of subparagraph (B), by adding ‘‘and’’ 
at the end of subparagraph (C), and by inserting after 
subparagraph (C) the following new subparagraph: 
‘‘(D) in the case of bonds issued after the 
date of the enactment of this subparagraph and 
before January 1, 2008, financing of any resi-
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dence for a veteran (as defined in section 101 
of title 38, United States Code), if such veteran 
has not previously qualified for and received 
such financing by reason of this subpara-
graph,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 247. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL 
RESIDENCE BY CERTAIN EMPLOYEES OF THE 
INTELLIGENCE COMMUNITY. 
(a) IN GENERAL.—Subparagraph (A) of section 
121(d)(9) (relating to exclusion of gain from sale of prin-
cipal residence) is amended by striking ‘‘duty’’ and all that 
follows and inserting ‘‘duty— 
‘‘(i) as a member of the uniformed 
services, 
‘‘(ii) as a member of the Foreign 
Service of the United States, or 
‘‘(iii) as an employee of the intel-
ligence community.’’. 
(b) EMPLOYEE OF INTELLIGENCE COMMUNITY DE-
FINED.—Subparagraph (C) of section 121(d)(9) is amend-
ed by redesignating clause (iv) as clause (v) and by insert-
ing after clause (iii) the following new clause: 
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‘‘(iv) EMPLOYEE
OF
INTELLIGENCE 
COMMUNITY.—The term ‘employee of the 
intelligence community’ means an employee 
(as defined by section 2105 of title 5, 
United States Code) of— 
‘‘(I) the Office of the Director of 
National Intelligence, 
‘‘(II) the Central Intelligence 
Agency, 
‘‘(III) 
the 
National 
Security 
Agency, 
‘‘(IV) the Defense Intelligence 
Agency, 
‘‘(V) the National Geospatial-In-
telligence Agency, 
‘‘(VI) the National Reconnais-
sance Office, 
‘‘(VII) any other office within the 
Department of Defense for the collec-
tion of specialized national intelligence 
through reconnaissance programs, 
‘‘(VIII) any of the intelligence 
elements of the Army, the Navy, the 
Air Force, the Marine Corps, the Fed-
eral Bureau of Investigation, the De-
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partment of Treasury, the Depart-
ment of Energy, and the Coast 
Guard, 
‘‘(IX) the Bureau of Intelligence 
and Research of the Department of 
State, or 
‘‘(X) any of the elements of the 
Department of Homeland Security 
concerned with the analyses of foreign 
intelligence information.’’. 
(c) SPECIAL RULE.—Subparagraph (C) of section 
121(d)(9), as amended by subsection (b), is amended by 
adding at the end the following new clause: 
‘‘(vi) SPECIAL RULE RELATING TO IN-
TELLIGENCE
COMMUNITY.—An employee 
of the intelligence community shall not be 
treated as serving on qualified extended 
duty unless such duty is at a duty station 
located outside the United States.’’. 
(d) CONFORMING AMENDMENT.—The heading for 
section 121(d)(9) is amended to read as follows: ‘‘UNI-
FORMED
SERVICES, FOREIGN
SERVICE, AND
INTEL-
LIGENCE COMMUNITY’’. 
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