Page:United States Statutes at Large Volume 107 Part 1.djvu/578
107 STAT. 552 PUBLIC LAW 103-66—AUG. 10, 1993 Subpart B—Additional Expensing "Sec. 1397A. Increase in expensing under section 179. ' SEC. 1397A. INCBEASE IN EXPENSING UNDER SECTION 179. "(a) GENERAL RULE.—In the case of an enterprise zone business, for purposes of section 179^ "(1) the limitation under section 179(b)(l) shall be increased by the lesser of— " (A) $20,000, 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. Subpart C—General Provisions "Sec. 1397B. Enterprise zone business defined. "Sec. 1397C. Qualified zone property defined. ' SEC. 1397B. ENTERPRISE ZONE BUSINESS DEFINED. "(a) IN GENERAL.— For purposes of this part, the term 'enterprise zone business' means— "(1) any qualified business entity, and "(2) any qualified proprietorship.
- (b) QUALIFIED BUSINESS ENTITY. —For purposes of this section,
the term 'qualified business entity* means, with respect to any taxable year, any corporation or partnership if for such year— (1) every trade or business of such entity is the active conduct of a qualified business within an empowerment zone, "(2) at least 80 percent of the total gross income of such entibr is derived from the active conduct of such business, (3) substantially all of the use of the tan|^ble property of such entity (whether owned or leased) is within an empowerment zone, "(4) substanticdly all of the intangible property of such entity is used in, ana exclusively related to, the active conduct of any such business, "(5) substantially all of the services performed for such entity by its employees are performed in an empowerment zone, "(6) at least 35 percent of its employees are residents of an empowerment zone, "(7) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to collectibles (as defined in section 408(m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business, and "(8) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualifiedfinancialproperty.�