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Internal Revenue Code · 26 U.S.C.

§ 1397A. Increase in expensing under section 179

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 1397A

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
August 10, 1993 by Pub. L. 103–66
Last amended
December 27, 2020 by Pub. L. 116–260
Amendments
3 dated changes in the source credit
Length
3 subsections · 197 words · about 1 min to read
Cross-references
cites 1; cited by 0 Code sections and 0 other regulations
(a) General rule In the case of an enterprise zone business, for purposes of section 179—
(1) the limitation under section 179(b)(1) shall be increased by the lesser of—
(A) $35,000, or
(B) the cost of section 179 property which is qualified zone property placed in service during the taxable year, and
(2) the amount taken into account under section 179(b)(2) with respect to any section 179 property which is qualified zone property shall be 50 percent of the cost thereof.
(b) Recapture

Rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified zone property which ceases to be used in an empowerment zone by an enterprise zone business.

(c) Termination

This section shall not apply to any property placed in service in taxable years beginning after December 31, 2020.

(Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 552; amended Pub. L. 105–34, title IX, § 952(c), Aug. 5, 1997, 111 Stat. 887; Pub. L. 106–554, § 1(a)(7) [title I, § 114(a), (b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–601; Pub. L. 116–260, div. EE, title I, § 118(b), Dec. 27, 2020, 134 Stat. 3051.)

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 1 other section

Amendment history

From the source credit and the official notes, newest first.

  1. Amended by Pub. L. 116–260Parts changed in 2020: (c)
  2. Amended by Pub. L. 106–554Parts changed in 2000: (a)(1)(A) (c)
  3. Amended by Pub. L. 105–34Parts changed in 1997: (c)
  4. Added by Pub. L. 103–66

Where it sits in the Code

  1. Subtitle A Income Taxes
  2. Chapter 1 NORMAL TAXES AND SURTAXES
  3. Subchapter U Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas
  4. Part III ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONES
  5. Subpart B Additional Expensing

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Amendments

2020—Subsec. (c). Pub. L. 116–260 added subsec. (c).

2000—Subsec. (a)(1)(A). Pub. L. 106–554, § 1(a)(7) [title I, § 114(a)], substituted “$35,000” for “$20,000”.

Subsec. (c). Pub. L. 106–554, § 1(a)(7) [title I, § 114(b)], struck out heading and text of subsec. (c). Text read as follows: “For purposes of this section, qualified zone property shall not include any property substantially all of the use of which is in any parcel described in section 1391(g)(3)(A)(iii).”

1997—Subsec. (c). Pub. L. 105–34 added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date 2020 Amendment

Amendment by Pub. L. 116–260 applicable to taxable years beginning after Dec. 31, 2020, see section 118(e) of div. EE of Pub. L. 116–260, set out as a note under section 1391 of this title.

Effective Date of 2000 Amendment

Pub. L. 106–554, § 1(a)(7) [title I, § 114(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–601, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2001.”