PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 553 "(c) QUALIFIED PROPRIETORSHIP.— For ptirposes of this section, the term 'qucQified proprietorship' means, with respect to any taxable year, any quahfied business carried on by an individual as a proprietorship if for such year— "(1) at least 80 percent of the total gross income of such individual from such business is derived from the active conduct of such business in an empowerment zone, "(2) substantially all of the use of the tangible property of such individual in such business (whether owned or leased) is within an empowerment zone, "(3) substantially all of the intangible property of such business is used in, and exclusively related to, the active conduct of such business, "(4) substantially all of the services performed for such individual in such business by employees of such business are performed in an empowerment zone, "(5) at least 35 percent of such employees are residents of an empowerment zone, "(6) less than 5 percent of the average of the aggregate unadjusted bases of the property of such individual which is used in such business 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 "(7) less than 5 percent of the average of the aggregate unadjusted bases of ^e property of such individual which is used in such business is attributable to nonqualified financial property. For purposes of this subsection, the term 'employee' includes the proprietor. "(d) QUALIFIED BUSINESS.— For purposes of this section— "(1) IN GENERAL.—Except as otherwise provided in this subsection, the term 'qualified business' means any trade or business. "(2) RENTAL OF REAL PROPERTY. — The rental to others of real property located in an empowerment zone shall be treated as a qualified business if and only if— "(A) the property is not residential rental property (as defined in section 168(e)(2)), and "(B) at least 50 percent of the gross rental income from the real property is from enterprise zone businesses. "(3) RENTAL OF TANGIBLE PERSONAL PROPERTY. —The rental to others of tangible personal property shall be treated as a qualified business if and only if substantially all of the rental of such property is by enterprise zone businesses or by residents of an empowerment zone. "(4) TREATMENT OF BUSINESS HOLDING INTANGIBLES. —The term 'qualified business' shall not include any trade or business consisting predominantly of the development or holding of intangibles for sale or license. "(5) CERTAIN BUSINESSES EXCLUDED. —The term 'qualified business' shall not include— "(A) any trade or business consisting of the operation of any facility described in section 144(c)(6)(B), and "(B) any trade or business the principal activity of which is farming (within the meaning of subparagraphs
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