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‘‘(ii) the aggregate value of assets
leased by the taxpayer which are used in
such a trade or business,
exceeds $500,000.
For purposes of subparagraph (B), rules similar to
the rules of section 1397(b) shall apply.
‘‘(e) NONQUALIFIED FINANCIAL PROPERTY.—For
purposes of this section, the term ‘nonqualified financial
property’ means debt, stock, partnership interests, op-
tions, futures contracts, forward contracts, warrants, no-
tional principal contracts, annuities, and other similar
property specified in regulations; except that such term
shall not include—
‘‘(1) reasonable amounts of working capital
held in cash, cash equivalents, or debt instruments
with a term of 18 months or less, or
‘‘(2) debt instruments described in section
1221(4).
‘‘PART IV—REGULATIONS
‘‘Sec. 1397E. Regulations.
‘‘SEC. 1397E. REGULATIONS.
‘‘The Secretary shall prescribe such regulations as
may be necessary or appropriate to carry out the purposes
of parts II and III, including—
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‘‘(1) regulations limiting the benefit of parts II
and III in circumstances where such benefits, in
combination with benefits provided under other Fed-
eral programs, would result in an activity being 100
percent or more subsidized by the Federal Govern-
ment,
‘‘(2) regulations preventing abuse of the provi-
sions of parts II and III, and
‘‘(3) regulations dealing with inadvertent fail-
ures of entities to be enterprise zone businesses.’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 is amended by inserting after the
item relating to subchapter T the following new item:
‘‘Subchapter U. Designation and treatment of empowerment
zones and enterprise communities.’’
SEC. 14302. EXPANSION OF TARGETED JOBS CREDIT.
(a) 
ALLOWANCE
OF
CREDIT
FOR
HIRING
EMPOWERMENT ZONE RESIDENT.—Paragraph (1) of sec-
tion 51(d) (defining members of targeted groups) is
amended by striking ‘‘or’’ at the end of subparagraph (I),
by striking the period at the end of subparagraph (J) and
inserting ‘‘, or’’, and by adding at the end the following
new subparagraph:
‘‘(K) 
an 
economically 
disadvantaged
empowerment zone resident.’’
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(b) ECONOMICALLY
DISADVANTAGED
EMPOWER-
MENT ZONE RESIDENT.—Section 51(d) is amended by re-
designating paragraphs (13) through (16) as paragraphs
(14) through (17), respectively, and by inserting after
paragraph (12) the following new paragraph:
‘‘(13) 
ECONOMICALLY
DISADVANTAGED
EMPOWERMENT ZONE RESIDENT.—The term ‘eco-
nomically disadvantaged empowerment zone resi-
dent’ means an individual—
‘‘(A) whose principal place of abode while
performing services for the employer is within
an empowerment zone, and
‘‘(B) who is certified by the designated
local agency as being a member of an economi-
cally disadvantaged family (as determined
under paragraph (11)).
Such term shall not include a qualified zone em-
ployee (as defined in section 1396(d) without regard
to paragraph (2) thereof).’’
(c) C ONFORMING AMENDMENT.—Subparagraph (C)
of section 51(d)(12) is amended by striking ‘‘paragraph
(14)’’ and inserting ‘‘paragraph (15)’’.
SEC. 14303. TECHNICAL AND CONFORMING AMENDMENTS.
(a) CERTAIN CREDITS PART OF GENERAL BUSINESS
CREDIT.—
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(1) Subsection (b) of section 38 (relating to
current year business credit) is amended by striking
‘‘plus’’ at the end of paragraph (7), by striking the
period at the end of paragraph (8) and inserting a
comma, and by adding at the end the following new
paragraphs:
‘‘(9) the empowerment zone employment credit
determined under section 1396(a), plus
‘‘(10) the zone resident empowerment savings
credit determined under section 1397A.’’
(2) Subsection (d) of section 39 is amended by
adding at the end the following new paragraph:
‘‘(4) E NTERPRISE ZONE CREDITS.—No portion
of the unused business credit which is attributable to
the credit determined under section 1396 (relating
to empowerment zone employment credit) or section
1397A (relating to zone resident empowerment sav-
ings credit) may be carried to any taxable year end-
ing before January 1, 1994.’’
(b) DENIAL OF DEDUCTION FOR PORTION OF WAGES
EQUAL
TO
EMPOWERMENT
ZONE
EMPLOYMENT
CREDIT.—
(1) Subsection (a) of section 280C (relating to
rule for targeted jobs credit) is amended—
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(A) by striking ‘‘the amount of the credit
determined for the taxable year under section
51(a)’’ and inserting ‘‘the sum of the credits
determined for the taxable year under sections
51(a) and 1396(a)’’, and
(B) 
by 
striking 
‘‘TARGETED
JOBS
CREDIT’’ in the subsection heading and insert-
ing ‘‘EMPLOYMENT CREDITS’’.
(2) Subsection (c) of section 196 (relating to
deduction for certain unused business credits) is
amended by striking ‘‘and’’ at the end of paragraph
(4), by striking the period at the end of paragraph
(5) and inserting ‘‘, and’’, and by adding at the end
the following new paragraph:
‘‘(6) the empowerment zone employment credit
determined under section 1396(a).’’
(c) EMPLOYMENT AND SAVINGS CREDITS MAY OFF-
SET 25 PERCENT OF MINIMUM TAX.—
(1) IN GENERAL.—Section 38(c) (relating to
limitation based on amount of tax) is amended by
redesignating paragraph (2) as paragraph (3) and
by inserting after paragraph (1) the following new
paragraph:
‘‘(2) E MPOWERMENT ZONE CREDITS MAY OFF-
SET 25 PERCENT OF MINIMUM TAX.—