; and (3) by adding at the end the following new clause: (x) any qualified rebuilt or retrofitted community economic assistance zone property. . (b) Qualified rebuilt or retrofitted community economic assistance zone property Subsection (e) of section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (9) Qualified rebuilt or retrofitted community economic assistance zone property (A) In general The term qualified rebuilt or retrofitted community economic assistance zone property means property placed in service in a community economic assistance zone by a qualified taxpayer during the period the designation of such zone is in effect under section 1397G which relates to the rebuilding or retrofitting of— (i) any qualified community economic assistance zone property (as defined in section 1397H(f)), and (ii) any residential real property located in a community economic assistance zone which is acquired by the taxpayer by purchase (as defined in section 179(d)(2)) during such period, if such property was unoccupied and had been deemed condemned, neglected, or derelict as of the time of acquisition by the taxpayer. (B) Qualified taxpayer For purposes of this paragraph, the term qualified taxpayer means a taxpayer other than an excepted taxpayer (within the meaning of section 1397H(g)). . 4. Increase in start-up expenditures for community economic assistance zone businesses Paragraph (3) of section 195(b) of the Internal Revenue Code of 1986 is amended to read as follows: (3) Special rule for community economic assistance zone businesses In the case of any start-up expenditures made within a community economic assistance zone during the period the designation of such zone is in effect under section 1397G— (A) such expenditures shall be treated separately from other start-up expenditures of the taxpayer for the taxable year, and (B) in determining the deduction under paragraph (1) with respect to such expenditures within such zone, paragraph (1)(A)(ii) shall be