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Internal Revenue Code · 26 U.S.C.

§ 1397D. Qualified zone property defined

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. § 1397D

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 21, 2000 by Pub. L. 106–554
Amendments
1 dated changes in the source credit
Length
2 subsections · 308 words · about 1 min to read
Defines
1 term
Cross-references
cites 2; cited by 1 Code section and 0 other regulations
(a) General rule For purposes of this part—
(1) In general The term “qualified zone property” means any property to which section 168 applies (or would apply but for section 179) if—
(A) such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after the date on which the designation of the empowerment zone took effect,
(B) the original use of which in an empowerment zone commences with the taxpayer, and
(C) substantially all of the use of which is in an empowerment zone and is in the active conduct of a qualified business by the taxpayer in such zone.
(2) Special rule for substantial renovations

In the case of any property which is substantially renovated by the taxpayer, the requirements of subparagraphs (A) and (B) of paragraph (1) shall be treated as satisfied. For purposes of the preceding sentence, property shall be treated as substantially renovated by the taxpayer if, during any 24-month period beginning after the date on which the designation of the empowerment zone took effect, additions to basis with respect to such property in the hands of the taxpayer exceed the greater of (i) an amount equal to the adjusted basis at the beginning of such 24-month period in the hands of the taxpayer, or (ii) $5,000.

(b) Special rules for sale-leasebacks

For purposes of subsection (a)(1)(B), if property is sold and leased back by the taxpayer within 3 months after the date such property was originally placed in service, such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback.

(Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 554, § 1397C; renumbered § 1397D, Pub. L. 106–554, § 1(a)(7) [title I, § 116(a)(2)], Dec. 21, 2000, 114 Stat. 2763, 2763A–602.)

Terms defined here

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Cross-references

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

This section cites 2 other sections

Cited by 1 Code section

Amendment history

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

  1. Amended by Pub. L. 106–554
  2. 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 D General Provisions

Nearby sections

Official notes

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

Editorial Notes

Prior Provisions

A prior section 1397D was renumbered section 1397F of this title.

Amendments

2000—Pub. L. 106–554 renumbered section 1397C of this title as this section.