APPLICATION OF INVOLUNTARY CONVERSION RULES TO PRESIDENTIALLY DECLARED DISASTERS.

SEC. 1119. APPLICATION OF INVOLUNTARY CONVERSION RULES TO PRESIDENTIALLY DECLARED DISASTERS. (a) In General.— Section 1033(h) is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: “(2) Trade or business and investment property.— If a taxpayer’s property held for productive use in a trade or business or for investment is compulsorily or involuntarily converted as a result of a Presidentially declared disaster, tangible property of a type held for productive use in a trade or business shall be treated for purposes of subsection (a) as property similar or related in service or use to the property so converted.”. (b) Conforming Amendments.— Section 1033(h) is amended— (1) by striking “residence” in paragraph (3) (as redesignated by subsection (a)) and inserting “property”, (2) by striking “Principal Residences” in the heading and inserting “Property”, and (3) by striking “(1) In general.—” and inserting “(1) Principal Residences.—”. (c) Expansion of Oklahoma City Enterprise Community.— Notwithstanding sections 1391 and 1392(a)(3)(D) of the Internal Revenue Code of 1986, the boundaries of the enterprise community for Oklahoma City, Oklahoma, designated by the Secretary of Housing and Urban Development on December 21, 1994, may be extended with respect to census tracts located in the area damaged due to the bombing of the Alfred P. Murrah Federal Building in Oklahoma City on April 19, 1995, primarily in the area bounded on the south by Robert S. Kerr Avenue, on the north by North 13th Street, on the east by Oklahoma Avenue, and on the west by Shartel Avenue. (d) Effective Date.— (1) In general.— The amendments made by this section shall apply to disasters declared after December 31, 1994, in taxable years ending after such date. (2) Subsection (c).— Subsection (c) shall take effect on the date of the enactment of this Act.