§ 1397D(a)(1)

qualified zone property

UNDECIDED

0 of 2 settled

  1. 1

    § 1397D(a)(1)

    ALL OF

    The term “qualified zone property” means any property to which section 168 applies (or would apply but for section 179) if—

    “any property to which section 168 applies (or would apply but for section 179)” Opening words
    “such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after the date on which the designation of the empowerment zone took effect,” § 1397D(a)(1)(A) needs Step 2 a purchase UNDECIDED
    “the original use of which in an empowerment zone commences with the taxpayer, and” § 1397D(a)(1)(B)
    “substantially all of the use of which is in an empowerment zone and is in the active conduct of a qualified business by the taxpayer in such zone.” § 1397D(a)(1)(C)

    “Substantially” implies facts and circumstances. No regulation cites this provision (eCFR, Oct 19, 2026)

  2. 2

    § 179(d)(2)

    a purchase

    ALL OF

    For purposes of paragraph (1), the term “purchase” means any acquisition of property, but only if—

    “any acquisition of property, but” Opening words
    “the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants),” § 179(d)(2)(A)
    “the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and” § 179(d)(2)(B)
    “the basis of the property in the hands of the person acquiring it is not determined— in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or under section 1014(a) (relating to property acquired from a decedent).” § 179(d)(2)(C)