(B)

1. (1) The maximum amount allowed as a deduction under subsection (A) to a taxpayer for the taxable year may not exceed the lesser of:

   1. (a) ten thousand dollars; or
   2. (b) the excess of one hundred thousand dollars over the amount allowed as a deduction under this section to the taxpayer for all prior taxable years.

2. (2) If the amount otherwise deductible by the person under subsection (A) exceeds the limitation under subsection (B)(1)(a):

   1. (a) the amount of such excess is treated as an amount paid to which subsection (A) applies during the next taxable year; and
   2. (b) the deduction allowed for any taxable year must be allocated proportionately among the economic impact zone stock purchased by the person on the basis of the respective purchase prices a share.
3. (3) The taxpayer and members of the taxpayer's family are treated as one person for purposes of subitem (1), and the limitations contained in such subitem must be allocated among the taxpayer and such members in accordance with their respective purchases of economic impact zone stock. For purposes of this section, an individual's family includes only such individual's spouse and minor children.

(C) For purposes of this section:

1. (1) the term "economic impact zone stock" means stock of a corporation if:

   1. (a) such stock is acquired on original issue from the corporation; and
   2. (b) such corporation is, at the time of issue, a qualified enterprise zone issuer.

2. (2)

   1. (a) "Economic impact zone stock" includes such stock only to the extent that the proceeds of the stock issue are used by the issuer during the twelve-month period beginning on the date of issuance to purchase qualified economic impact zone property.

   2. (b) For purposes of this section, the term "qualified economic impact zone property" means property to which Section 168 of the Internal Revenue Code applies:

      1. (i) the original use of which in an economic impact zone commences with the issuer; and
      2. (ii) substantially all of the use of which is in an economic impact zone.
3. (3) The term "economic impact zone stock" does not include any stock acquired from a corporation which made a substantial stock redemption or distribution (without a bona fide business purpose therefor) in an attempt to avoid the purposes of this section.

(D) For purposes of this section, the term "qualified economic impact zone issuer" means any "C" corporation if:

1. (1) the corporation is an economic impact zone business or, in the case of a new corporation, the corporation is being organized for purposes of being an economic impact zone business;

2. (2) the sum of:

   1. (a) the money;
   2. (b) the aggregate adjusted bases of property owned by the corporation; and
   3. (c) the fair market value of property leased to the corporation (as determined by the Department of Revenue for property tax purposes), does not exceed five million dollars; and
3. (3) more than twenty percent of the total voting power and twenty percent of the total value of the stock of the corporation is owned directly by individuals or estates or indirectly by individuals through partnerships or trusts. The determination under subsection (3) must be made as of the time of issuance of the stock in question but shall include amounts received for the stock.

(F)

1. (1) In the case of a partnership or an "S" corporation, the limitations under subsection (B) apply at the partner and shareholder level and do not apply at the partnership or corporation level.
2. (2) Estates and trusts are not treated as individuals for purposes of this section.