In making allocations under this paragraph, the Secretary shall take into account the entity’s business strategy, community impact, management capacity, and capitalization strategy, and the degree of distress of the communities served by the entity. . (2) Conforming amendment Section 45D(f)(2) of such Code is amended by striking under the preceding sentence and inserting under this paragraph . (c) Increased credit for investments in community development entities serving distressed communities Section 45D of such Code is amended by redesignating subsections (h) and (i) as subsections (i) and (j), respectively, and by inserting after subsection (g) the following new subsection: (h) Increased credit for investments in community development entities serving distressed communities (1) In general In the case of a qualified equity investment in a qualified distressed community development entity, subsection (a)(2) shall be applied— (A) by substituting 6 percent for 5 percent in subparagraph (A), and (B) by substituting 7 percent for 6 percent in subparagraph (B). (2) Qualified distressed community development entity For purposes of this subsection— (A) In general The term qualified distressed community development entity means any qualified community development entity if— (i) a substantial portion of the services and investment capital provided by such entity is provided with respect to distressed communities, and (ii) such entity is certified by the Secretary for purposes of this section as being a qualified distressed community development entity. (B) Distressed community The term distressed community means any population census tract (or equivalent county division within the meaning of subsection (e)(3)) which would be a low-income community if— (i) subsection (e)(1)(A) were applied by substituting 30 percent for 20 percent , and (ii) subsection (e)(1)(B) were applied by substituting 60 percent for 80 percent each place it appears. . (d) Effective dates (1) Extension The amendments made by subsection (a) shall