### Question
What does DC Zone business stock mean?


### Answer
**DC Zone business stock** has the following meaning in *26 U.S.C. § 1400B*:

> any stock in a domestic corporation which is originally issued after December 31, 1997, if—


(i) such stock is acquired by the taxpayer, before January 1, 2004, at its original issue (directly or through an underwriter) solely in exchange for cash,


(ii) as of the time such stock was issued, such corporation was a DC Zone business (or, in the case of a new corporation, such corporation was being organized for purposes of being a DC Zone business), and


(iii) during substantially all of the taxpayer's holding period for such stock, such corporation qualified as a DC Zone business

#### Citation:
  - *26 U.S.C. § 1400B*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter W-District of Columbia Enterprise Zone**

