Financial Institution and Real Estate (FIRE) Relief Act of 1997

Financial Institution and Real Estate (FIRE) Relief Act of 1997 - Amends the Internal Revenue Code to allow the Secretary of the Treasury to designate from among the areas nominated for designation, three nominated areas as economic recovery areas. Limits the period during which a designation may be made.

Provides for an economic recovery area employment credit to any employer for any taxable year in the amount of 20 percent of the qualified area wages paid. Limits the amount of qualified area wages which may be taken into account for a calendar year to only the first $15,000 of wages respecting each qualified area employee. Sets forth provisions providing for coordination with the targeted jobs credit and the empowerment zone employment credit.

Provides for a reduction in the maximum capital gains tax of ten percent for a taxpayer other than a corporation and 17 percent for a corporation on: (1) any qualified area stock; (2) any qualified area business property; and (3) any qualified area partnership interest, held for more than five years as of the date of sale or exchange. Sets forth provisions concerning substantial improvements made to qualified area business property in an economic recovery area. Provides for the treatment of pass-thru entities, the transfer of a qualified area investment, and expensing of equipment and leasehold equipment. Increases by 100 percent the amount of any deduction allowable for any security expenses. Revises provisions relating to the maximum capital gains tax rate for taxpayers other than corporations and corporations.