26 U.S.C. § 1393 — Definitions and special rules

Page 2482 TITLE 26—INTERNAL REVENUE CODE § 1393 graphs (2), (3), and (4) of subsection (a) if for each census tract or block group within such area 20 percent or more of the families have in- come which is 50 percent or less of the statewide median family income (as determined under sec- tion 143). (Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 545; amended Pub. L. 105–34, title IX, § 954, Aug. 5, 1997, 111 Stat. 888.) Editorial Notes PRIOR PROVISIONS A prior section 1392, added Pub. L. 95–600, title VI, § 601(a), Nov. 6, 1978, 92 Stat. 2893; amended Pub. L. 96–222, title I, § 106(a)(5), Apr. 1, 1980, 94 Stat. 221; Pub. L. 96–595, § 3(a)(3), (4), Dec. 24, 1980, 94 Stat. 3465, related to election by general stock ownership corporations not to be subject to taxes imposed by this chapter, prior to repeal by Pub. L. 99–514, title XIII, § 1303(a), Oct. 22, 1986, 100 Stat. 2658. AMENDMENTS 1997—Subsec. (d). Pub. L. 105–34 added subsec. (d). § 1393. Definitions and special rules (a) In general For purposes of this subchapter— (1) Appropriate Secretary The term ‘‘appropriate Secretary’’ means— (A) the Secretary of Housing and Urban Development in the case of any nominated area which is located in an urban area, and (B) the Secretary of Agriculture in the case of any nominated area which is located in a rural area. (2) Rural area The term ‘‘rural area’’ means any area which is— (A) outside of a metropolitan statistical area (within the meaning of section 143(k)(2)(B)), or (B) determined by the Secretary of Agri- culture, after consultation with the Sec- retary of Commerce, to be a rural area. (3) Urban area The term ‘‘urban area’’ means an area which is not a rural area. (4) Special rules for Indian reservations (A) In general No empowerment zone or enterprise com- munity may include any area within an In- dian reservation. (B) Indian reservation defined The term ‘‘Indian reservation’’ has the meaning given such term by section 168(j)(6). (5) Local government The term ‘‘local government’’ means— (A) any county, city, town, township, par- ish, village, or other general purpose polit- ical subdivision of a State, and (B) any combination of political subdivi- sions described in subparagraph (A) recog- nized by the appropriate Secretary. (6) Nominated area The term ‘‘nominated area’’ means an area which is nominated by 1 or more local govern- ments and the State or States in which it is located for designation under section 1391. (7) Governments If more than 1 State or local government seeks to nominate an area under this part, any reference to, or requirement of, this sub- chapter shall apply to all such governments. (8) Special rule An area shall be treated as nominated by a State and a local government if it is nomi- nated by an economic development corpora- tion chartered by the State. (9) Use of census data Population and poverty rate shall be deter- mined by the most recent decennial census data available. (b) Empowerment zone; enterprise community For purposes of this title, the terms ‘‘em- powerment zone’’ and ‘‘enterprise community’’ mean areas designated as such under section 1391. (Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 547.) Editorial Notes PRIOR PROVISIONS A prior section 1393, added Pub. L. 95–600, title VI, § 601(a), Nov. 6, 1978, 92 Stat. 2894; amended Pub. L. 96–595, § 3(a)(5), (6), (8), Dec. 24, 1980, 94 Stat. 3465, re- lated to taxation of general stock ownership corpora- tion taxable income to shareholders, prior to repeal by Pub. L. 99–514, title XIII, § 1303(a), Oct. 22, 1986, 100 Stat. 2658. PART II—TAX-EXEMPT FACILITY BONDS FOR EMPOWERMENT ZONES AND ENTER- PRISE COMMUNITIES Sec. 1394. Tax-exempt enterprise zone facility bonds. § 1394. Tax-exempt enterprise zone facility bonds (a) In general For purposes of part IV of subchapter B of this chapter (relating to tax exemption requirements for State and local bonds), the term ‘‘exempt fa- cility bond’’ includes any bond issued as part of an issue 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of which are to be used to provide any enterprise zone facility. (b) Enterprise zone facility For purposes of this section— (1) In general The term ‘‘enterprise zone facility’’ means any qualified zone property the principal user of which is an enterprise zone business, and any land which is functionally related and subordinate to such property. (2) Qualified zone property The term ‘‘qualified zone property’’ has the meaning given such term by section 1397D; ex- cept that— (A) the references to empowerment zones shall be treated as including references to enterprise communities, and (B) section 1397D(a)(2) shall be applied by substituting ‘‘an amount equal to 15 percent