Browse Arkansas Code titles and sections
26 U.S.C. § 1397B — Nonrecognition of gain on rollover of empowerment zone investments
Federal law — U.S. Code and appendices · legal_authorities
**(a) Nonrecognition of gain** In the case of any sale of a qualified empowerment zone asset held by the taxpayer for more than 1 year and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds—
(1) the cost of any qualified empowerment zone asset (with respect to the same zone as the asset sold) purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by
(2) any portion of such cost previously taken into account under this section.
**(b) Definitions and special rules** For purposes of this section—
(1) **Qualified empowerment zone asset**
(A) *In general* — The term “qualified empowerment zone asset” means any property which would be a qualified community asset (as defined in section 1400F) 11 See References in Text note below. if in section 1400F 1—
(i) references to empowerment zones were substituted for references to renewal communities,
(ii) references to enterprise zone businesses (as defined in section 1397C) were substituted for references to renewal community businesses,
(iii) the date of the enactment of this paragraph were substituted for “December 31, 2001” each place it appears, and
(iv) the day after the date set forth in section 1391(d)(1)(A)(i) were substituted for “January 1, 2010” each place it appears.
(B) *References* — Any reference in this paragraph to section 1400F shall be treated as reference to such section before its repeal.
(2) **Certain gain not eligible for rollover** — This section shall not apply to—
(A) any gain which is treated as ordinary income for purposes of this subtitle, and
(B) any gain which is attributable to real property, or an
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1397B
Stored review status: release_metadata_unconfirmed. A text match is a research starting point; applicability is not established.
Original supplied file — preserved unchanged
Download original Markdown file
File SHA-256: 15259bf19681a3854e5f599bc02eb67a6db6597c0f7fcc212d5e51d0012731a2. The original may include catalog metadata, neighboring provisions, or embedded records outside this collection's scope. Search shows only the selected federal record. Historical editions and unverified snapshots are not a statement of current law.
Authority boundary: historical or unconfirmed source not current law verified.
Open the recorded source website ↗
Record provenance
Stable record: federal_law:legal_authorities:record_usc_df63618471a902f83738a100
Source file: Laws/federal/codes/united-states-code/title-26/section-1397b-nonrecognition-of-gain-on-rollover-of-empowerment-zone-investments--958ff6460a.md
Pages: Not recorded – Not recorded
Passage SHA-256: 0b2b0e1e4063a938a62daa7370d248a9ffe7cef623856c6c3bdaf4f153b8bad8
Source location: Title 26, Chapter 1, § 1397B; chapter-001-normal-taxes-and-surtaxes.md
Stored source content
**(a) Nonrecognition of gain** In the case of any sale of a qualified empowerment zone asset held by the taxpayer for more than 1 year and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds—
(1) the cost of any qualified empowerment zone asset (with respect to the same zone as the asset sold) purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by
(2) any portion of such cost previously taken into account under this section.
**(b) Definitions and special rules** For purposes of this section—
(1) **Qualified empowerment zone asset**
(A) *In general* — The term “qualified empowerment zone asset” means any property which would be a qualified community asset (as defined in section 1400F) 11 See References in Text note below. if in section 1400F 1—
(i) references to empowerment zones were substituted for references to renewal communities,
(ii) references to enterprise zone businesses (as defined in section 1397C) were substituted for references to renewal community businesses,
(iii) the date of the enactment of this paragraph were substituted for “December 31, 2001” each place it appears, and
(iv) the day after the date set forth in section 1391(d)(1)(A)(i) were substituted for “January 1, 2010” each place it appears.
(B) *References* — Any reference in this paragraph to section 1400F shall be treated as reference to such section before its repeal.
(2) **Certain gain not eligible for rollover** — This section shall not apply to—
(A) any gain which is treated as ordinary income for purposes of this subtitle, and
(B) any gain which is attributable to real property, or an intangible asset, which is not an integral part of an enterprise zone business.
(3) **Purchase** — A taxpayer shall be treated as having purchased any property if, but for paragraph (4), the unadjusted basis of such property in the hands of the taxpayer would be its cost (within the meaning of section 1012).
(4) **Basis adjustments** — If gain from any sale is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any qualified empowerment zone asset which is purchased by the taxpayer during the 60-day period described in subsection (a). This paragraph shall not apply for purposes of section 1202.
(5) **Holding period** — For purposes of determining whether the nonrecognition of gain under subsection (a) applies to any qualified empowerment zone asset which is sold, the taxpayer’s holding period for such asset and the asset referred to in subsection (a)(1) shall be determined without regard to section 1223.
**(c) Termination** This section shall not apply to sales in taxable years beginning after December 31, 2020.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** From among the areas nominated for designation under this section, the appropriate Secretaries may designate empowerment zones and enterprise communities.
**(b) Number of designations**
(1) **Enterprise communities** — The appropriate Secretaries may designate in the aggregate 95 nominated areas as enterprise communities under this section, subject to the availability of eligible nominated areas. Of that number, not more than 65 may be designated in urban areas and not more than 30 may be designated in rural areas.
(2) **Empowerment zones** — The appropriate Secretaries may designate in the aggregate 11 nominated areas as empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more than 8 may be designated in urban areas and not more than 3 may be designated in rural areas. If 8 empowerment zones are designated in urban areas, no less than 1 shall be designated in an urban area the most populous city of which has a population of 500,000 or less and no less than 1 shall be a nominated area which includes areas in 2 States and which has a population of 50,000 or less. The Secretary of Housing and Urban Development shall designate empowerment zones located in urban areas in such a manner that the aggregate population of all such zones does not exceed 1,000,000.
**(c) Period designations may be made** A designation may be made under subsection (a) only after 1993 and before 1996.
**(d) Period for which designation is in effect**
(1) **In general** — Any designation under this section shall remain in effect during the period beginning on the date of the designation and ending on the earliest of—
(A)
(i) in the case of an empowerment zone, December 31, 2025, or
(ii) in the case of
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1391
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** Proper adjustment in respect of the property shall in all cases be made—
(1) for expenditures, receipts, losses, or other items, properly chargeable to capital account, but no such adjustment shall be made—
(A) for—
(i) taxes or other carrying charges described in section 266; or
(ii) expenditures described in section 173 (relating to circulation expenditures),
for which deductions have been taken by the taxpayer in determining taxable income for the taxable year or prior taxable years; or
(B) for mortality, expense, or other reasonable charges incurred under an annuity or life insurance contract;
(2) in respect of any period since February 28, 1913, for exhaustion, wear and tear, obsolescence, amortization, and depletion, to the extent of the amount—
(A) allowed as deductions in computing taxable income under this subtitle or prior income tax laws, and
(B) resulting (by reason of the deductions so allowed) in a reduction for any taxable year of the taxpayer’s taxes under this subtitle (other than chapter 2, relating to tax on self-employment income), or prior income, war-profits, or excess-profits tax laws,
but not less than the amount allowable under this subtitle or prior income tax laws. Where no method has been adopted under section 167 (relating to depreciation deduction), the amount allowable shall be determined under the straight line method. Subparagraph (B) of this paragraph shall not apply in respect of any period since February 28, 1913, and before January 1, 1952, unless an election has been made under section 1020 (as in effect before the date of the enactment of the Tax Reform Act of 1976). Where for any taxable year before the taxable year 1932 the depletion allowance was based on discovery value or a pe
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1016
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of credit**
(1) **In general** — In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred by the taxpayer.
(2) **Year credit allowed** — The credit under paragraph (1) with respect to any expense shall be allowed—
(A) in the case of any expense paid or incurred before the taxable year in which such adoption becomes final, for the taxable year following the taxable year during which such expense is paid or incurred, and
(B) in the case of an expense paid or incurred during or after the taxable year in which such adoption becomes final, for the taxable year in which such expense is paid or incurred.
(3) **$10,000 credit for adoption of child with special needs regardless of expenses** — In the case of an adoption of a child with special needs which becomes final during a taxable year, the taxpayer shall be treated as having paid during such year qualified adoption expenses with respect to such adoption in an amount equal to the excess (if any) of $10,000 over the aggregate qualified adoption expenses actually paid or incurred by the taxpayer with respect to such adoption during such taxable year and all prior taxable years.
(4) **Portion of credit refundable** — So much of the credit allowed under paragraph (1) as does not exceed $5,000 shall be treated as a credit allowed under subpart C and not as a credit allowed under this subpart.
**(b) Limitations**
(1) **Dollar limitation** — The aggregate amount of qualified adoption expenses which may be taken into account under subsection (a) for all taxable years with respect to the adoption of a child by the taxpayer shall not exceed $10,000.
(2) **Income limitation**
(A) *In general* —
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 23
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Allowance of credit**
(1) **In general** — In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer’s earned income for the taxable year as does not exceed the earned income amount.
(2) **Limitation** — The amount of the credit allowable to a taxpayer under paragraph (1) for any taxable year shall not exceed the excess (if any) of—
(A) the credit percentage of the earned income amount, over
(B) the phaseout percentage of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount.
**(b) Percentages and amounts** For purposes of subsection (a)—
(1) **Percentages** — The credit percentage and the phaseout percentage shall be determined as follows: In the case of an eligible individual with:The credit percentage is:Thephaseoutpercentageis: 1 qualifying child3415.98 2 qualifying children4021.06 3 or more qualifying children4521.06 No qualifying children7.65 7.65
(2) **Amounts**
(A) *In general* — Subject to subparagraph (B), the earned income amount and the phaseout amount shall be determined as follows: In the case of an eligible individual with:The earned income amount is:Thephaseoutamount is: 1 qualifying child$6,330$11,610 2 or more qualifying children$8,890$11,610 No qualifying children$4,220 $5,280
(B) *Joint returns* — In the case of a joint return filed by an eligible individual and such individual’s spouse, the phaseout amount determined under subparagraph (A) shall be increased by $5,000.
**(c) Definitions and special rules** For purposes of this section—
(1) **Eligible individual**
(A) *In general* — The term “e
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 32
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
Page 2488
TITLE 26—INTERNAL REVENUE CODE
§ 1397B
1 See References in Text note below.
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 quali-
fied zone property which ceases to be used in an
empowerment zone by an enterprise zone busi-
ness.
(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.)
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 sec-
tion 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 sec-
tion 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
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1397B
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.