Source: http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1391&num=0&edition=prelim
Timestamp: 2019-04-22 23:57:31+00:00

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From among the areas nominated for designation under this section, the appropriate Secretaries may designate empowerment zones and 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.
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.
A designation may be made under subsection (a) only after 1993 and before 1996.
(C) the date the appropriate Secretary revokes the designation.
(B) is not complying substantially with, or fails to make progress in achieving the benchmarks set forth in, the strategic plan under subsection (f)(2).
(5) such State or States and local governments certify that no portion of the area nominated is already included in an empowerment zone or in an enterprise community or in an area otherwise nominated to be designated under this section.
(3) includes such other information as may be required by the appropriate Secretary.
In addition to the areas designated under subsection (a), the appropriate Secretaries may designate in the aggregate an additional 20 nominated areas as empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more than 15 may be designated in urban areas and not more than 5 may be designated in rural areas.
A designation may be made under this subsection after the date of the enactment of this subsection and before January 1, 1999.
(3) Modifications to eligibility criteria, etc.
A nominated area shall be eligible for designation under this subsection only if the poverty rate for each population census tract within the nominated area is not less than 20 percent and the poverty rate for at least 90 percent of the population census tracts within the nominated area is not less than 25 percent.
(II) such tract is contiguous to 1 or more other population census tracts which have a poverty rate of not less than 25 percent (determined without regard to this clause).
Clause (i) shall not apply to up to 3 noncontiguous parcels in a nominated area which may be developed for commercial or industrial purposes. The aggregate area of noncontiguous parcels to which the preceding sentence applies with respect to any nominated area shall not exceed 2,000 acres.
Section 1392(a)(4) (and so much of paragraphs (1) and (2) of section 1392(b) as relate to section 1392(a)(4)) shall not apply to an area nominated for designation under this subsection.
The Secretary of Agriculture may designate not more than 1 empowerment zone in a rural area without regard to clause (i) if such area satisfies emigration criteria specified by the Secretary of Agriculture.
The parcels described in subparagraph (A)(iii) shall not be taken into account in determining whether the requirement of subparagraph (A) or (B) of section 1392(a)(3) is met.
If a population census tract (or equivalent division under section 1392(b)(4)) in a rural area exceeds 1,000 square miles or includes a substantial amount of land owned by the Federal, State, or local government, the nominated area may exclude such excess square mileage or governmentally owned land and the exclusion of that area will not be treated as violating the continuous boundary requirement of section 1392(a)(3)(B).
The aggregate population limitation under the last sentence of subsection (b)(2) shall not apply to a designation under paragraph (1).
Subsection (e)(5) shall not apply to any enterprise community designated under subsection (a) that is also nominated for designation under this subsection.
Section 1393(a)(4) shall not apply to an area nominated for designation under this subsection.
An area in an Indian reservation shall be treated as nominated by a State and a local government if it is nominated by the reservation governing body (as determined by the Secretary of the Interior).
In addition to the areas designated under subsections (a) and (g), the appropriate Secretaries may designate in the aggregate an additional 9 nominated areas as empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more than seven may be designated in urban areas and not more than 2 may be designated in rural areas.
A designation may be made under this subsection after the date of the enactment of this subsection and before January 1, 2002.
The rules of subsection (g)(3) shall apply to designations under this subsection.
The number of areas which may be designated as empowerment zones under this subsection shall be increased by 1 for each area which ceases to be an empowerment zone by reason of section 1400E(e).1 Each additional area designated by reason of the preceding sentence shall have the same urban or rural character as the area it is replacing.
The date of the enactment of this subsection, referred to in subsec. (g)(2), is the date of enactment of Pub. L. 105–34, which was approved Aug. 5, 1997.
The date of the enactment of this subsection, referred to in subsec. (h)(2), is the date of enactment of Pub. L. 106–554, which was approved Dec. 21, 2000.
Section 1400E(e), referred to in subsec. (h)(4), was repealed by Pub. L. 115–141, div. U, title IV, §401(d)(5)(A), Mar. 23, 2018, 132 Stat. 1210 .
A prior section 1391, added Pub. L. 95–600, title VI, §601(a), Nov. 6, 1978, 92 Stat. 2892 ; amended Pub. L. 96–222, title I, §106(a)(4), Apr. 1, 1980, 94 Stat. 221 ; Pub. L. 96–595, §3(a)(1), (2), Dec. 24, 1980, 94 Stat. 3465 , defined terms used in former subchapter U, prior to repeal by Pub. L. 99–514, title XIII, §1303(a), Oct. 22, 1986, 100 Stat. 2658 .
2018-Subsec. (d)(1)(A)(i). Pub. L. 115–123 substituted "December 31, 2017" for "December 31, 2016".
Subsec. (g)(3)(E)(ii). Pub. L. 115–141 substituted "the Interior" for "Interior".
2015-Subsec. (d)(1)(A)(i). Pub. L. 114–113 substituted "December 31, 2016" for "December 31, 2014".
2014-Subsec. (d)(1)(A)(i). Pub. L. 113–295 substituted "December 31, 2014" for "December 31, 2013".
2013-Subsec. (d)(1)(A)(i). Pub. L. 112–240 substituted "December 31, 2013" for "December 31, 2011".
2010-Subsec. (d)(1)(A)(i). Pub. L. 111–312, §753(a)(1), substituted "December 31, 2011" for "December 31, 2009".
Subsec. (h)(2). Pub. L. 111–312, §753(a)(2), struck out at end "Subject to subparagraphs (B) and (C) of subsection (d)(1), such designations shall remain in effect during the period beginning on January 1, 2002, and ending on December 31, 2009."
2000-Subsec. (d)(1)(A). Pub. L. 106–554, §1(a)(7) [title I, §112], amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: "the close of the 10th calendar year beginning on or after such date of designation,".
Subsec. (g)(3)(C). Pub. L. 106–554, §1(a)(7) [title III, §319(13)], substituted "paragraph (1)" for "paragraph (1)(B)".
Subsec. (h). Pub. L. 106–554, §1(a)(7) [title I, §111], added subsec. (h).
1997-Subsec. (b)(2). Pub. L. 105–34, §951(a)(3), substituted "1,000,000" for "750,000".
Pub. L. 105–34, §951(a)(2), which directed substitution of "8" for "6", was executed by making the substitution both places "6" appeared, to reflect the probable intent of Congress.
Pub. L. 105–34, §951(a)(1), substituted "11" for "9".
Subsec. (c). Pub. L. 105–34, §952(d)(2), substituted "subsection (a)" for "this section".
Subsecs. (e), (f). Pub. L. 105–34, §952(d)(1), substituted "this section" for "subsection (a)" in introductory provisions.
Subsec. (g). Pub. L. 105–34, §952(a), added subsec. (g).
Pub. L. 115–123, div. D, title I, §40311(b), Feb. 9, 2018, 132 Stat. 147 , provided that: "The amendment made by subsection (a)(1) [amending this section] shall apply to taxable years beginning after December 31, 2016."
Pub. L. 114–113, div. Q, title I, §171(e)(1), Dec. 18, 2015, 129 Stat. 3071 , provided that: "The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 2014."
Pub. L. 113–295, div. A, title I, §139(c), Dec. 19, 2014, 128 Stat. 4020 , provided that: "The amendment made by this section [amending this section] shall apply to periods after December 31, 2013."
Amendment by Pub. L. 112–240 applicable to periods after Dec. 31, 2011, see section 327(d) of Pub. L. 112–240, set out as a note under section 1202 of this title.
Amendment by Pub. L. 111–312 applicable to periods after Dec. 31, 2009, see section 753(d) of Pub. L. 111–312, set out as a note under section 1202 of this title.
Pub. L. 105–34, title IX, §951(c), Aug. 5, 1997, 111 Stat. 885 , provided that: "The amendments made by this section [amending this section and section 1396 of this title] shall take effect on the date of the enactment of this Act [Aug. 5, 1997], except that designations of new empowerment zones made pursuant to such amendments shall be made during the 180-day period beginning on the date of the enactment of this Act. No designation pursuant to such amendments shall take effect before January 1, 2000."
Pub. L. 115–123, div. D, title I, §40311(a)(2), Feb. 9, 2018, 132 Stat. 147 , provided that: "In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act [Feb. 9, 2018]), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section, the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide."
Pub. L. 114–113, div. Q, title I, §171(a)(2), Dec. 18, 2015, 129 Stat. 3069 , provided that: "In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act [Dec. 18, 2015]), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section, the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide."
Pub. L. 113–295, div. A, title I, §139(b), Dec. 19, 2014, 128 Stat. 4020 , provided that: "In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act [Dec. 19, 2014]), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section, the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide."
Pub. L. 112–240, title III, §327(c), Jan. 2, 2013, 126 Stat. 2334 , provided that: "In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act [Jan. 2, 2013]), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section, the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide."
Pub. L. 111–312, title VII, §753(c), Dec. 17, 2010, 124 Stat. 3321 , provided that: "In the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph (A)(i) of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect before the enactment of this Act [Dec. 17, 2010]), subparagraph (B) of such section shall not apply with respect to such designation if, after the date of the enactment of this section [Dec. 17, 2010], the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the Secretary of the Treasury (or the Secretary's designee) may provide."

References: §401
 §601
 §106
 §3
 §1303
 §753
 §753
 §1
 §112
 §1
 §319
 §1
 §111
 §951
 §951
 §951
 §952
 §952
 §952
 §40311
 §171
 §139
 §951
 §40311
 §171
 §139
 §327
 §753