apply so long as either spouse has a principal residence (within the meaning of section 121) in an Economic Freedom Zone for the taxable year. (c) Alternative minimum tax not To apply The tax imposed by section 55 shall not apply to any taxpayer to whom subsection (a) applies. 1400V–2. Economic Freedom Zone corporate flat tax (a) In general In the case of any corporation located in an Economic Freedom Zone for the taxable year, in lieu of the tax imposed by section 11, there shall be imposed a tax equal to 5 percent of the taxable income of such corporation. For purposes of this title, the tax imposed by the preceding sentence shall be treated as a tax imposed by section 11. (b) Limitation Subsection (a) shall not apply to any corporation for any taxable year if the adjusted gross income of such corporation for such taxable year exceeds $500,000,000. (c) Located For purposes of this section, a corporation shall be considered to be located in an Economic Freedom Zone if— (1) not less than 10 percent of the total gross income of such corporation is derived from the active conduct of a trade or business within an Economic Freedom Zone, or (2) at least 25 percent of the employees of such corporation are residents of an Economic Freedom Zone. (d) Alternative minimum tax not To apply The tax imposed by section 55 shall not apply to any taxpayer to whom subsection (a) applies. 1400V–3. Zero percent capital gains rate (a) Exclusion Gross income shall not include qualified capital gain from the sale or exchange of— (1) any Economic Freedom Zone asset held for more than 5 years, or (2) any real property located in an Economic Freedom Zone. (b) Economic freedom zone asset For purposes of this section— (1) In general The term Economic Freedom Zone asset means— (A) any Economic Freedom Zone business stock, (B) any Economic Freedom Zone partnership interest, and (C) any Economic Freedom Zone business property. (2) Economic freedom zone business stock (A) In general The term Economic Freedom Zone business stock means any stock