Exemption.

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To the extent that a long-term capital gain was included in the calculations of taxes imposed by chapters 11, 13, 14 or 30 of this title, that long-term capital gain shall be excluded. The long-term capital gain is the long-term capital gain as defined in 26 U.S.C. § 1222(3) which is:

(1) Recognized by a partner in a certified venture capital partnership from the sale or exchange of an interest in the partnership; or

(2) A partner's distributive share (in a certified venture capital partnership) of any long-term capital gain recognized by the partnership from the sale or exchange of an interest in any entity which at the time the interest was acquired was a qualifying business entity; or

(3) The long-term capital gain recognized by an entrepreneur from the sale or exchange of an interest in an entity, which at the time the interest was acquired was a qualifying business entity.

History of Section.
P.L. 1987, ch. 559, § 1.


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