Title 26Internal Revenue CodeRelease 119-73

§1393 Definitions and special rules

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter U— - Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas › Part PART I— - DESIGNATION › § 1393

Last updated Apr 6, 2026|Official source

Summary

It says which federal official handles nominations, what counts as rural or urban, and how some key words are used. It says HUD handles urban nominations and the Agriculture Secretary handles rural ones. It bars empowerment zones or enterprise communities from covering any part of an Indian reservation. It also says population and poverty numbers come from the most recent decennial census. Appropriate Secretary — HUD for urban areas, Agriculture for rural areas. Rural area — outside a metropolitan statistical area or labeled rural by the Agriculture Secretary after talking with the Commerce Secretary. Urban area — any area not rural. Indian reservation — has the meaning given in section 168(j)(6). Local government — a county, city, town, township, parish, village, or similar local unit, alone or combined and recognized by the appropriate Secretary. Nominated area — an area put forward by one or more local governments and the state(s) for designation under section 1391. Multiple governments — if more than one state or local government nominates an area, the rules apply to all of them. State nomination by economic development corporation — an area is treated as nominated by the state and a local government if a state-chartered economic development corporation nominates it. Empowerment zone and enterprise community — mean areas designated under section 1391. Population and poverty rate — use the most recent decennial census data.

Full Legal Text

Title 26, §1393

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this subchapter—
(1)The term “appropriate Secretary” means—
(A)the Secretary of Housing and Urban Development in the case of any nominated area which is located in an urban area, and
(B)the Secretary of Agriculture in the case of any nominated area which is located in a rural area.
(2)The term “rural area” means any area which is—
(A)outside of a metropolitan statistical area (within the meaning of section 143(k)(2)(B)), or
(B)determined by the Secretary of Agriculture, after consultation with the Secretary of Commerce, to be a rural area.
(3)The term “urban area” means an area which is not a rural area.
(4)(A)No empowerment zone or enterprise community may include any area within an Indian reservation.
(B)The term “Indian reservation” has the meaning given such term by section 168(j)(6).
(5)The term “local government” means—
(A)any county, city, town, township, parish, village, or other general purpose political subdivision of a State, and
(B)any combination of political subdivisions described in subparagraph (A) recognized by the appropriate Secretary.
(6)The term “nominated area” means an area which is nominated by 1 or more local governments and the State or States in which it is located for designation under section 1391.
(7)If more than 1 State or local government seeks to nominate an area under this part, any reference to, or requirement of, this subchapter shall apply to all such governments.
(8)An area shall be treated as nominated by a State and a local government if it is nominated by an economic development corporation chartered by the State.
(9)Population and poverty rate shall be determined by the most recent decennial census data available.
(b)For purposes of this title, the terms “empowerment zone” and “enterprise community” mean areas designated as such under section 1391.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 1393, added Pub. L. 95–600, title VI, § 601(a), Nov. 6, 1978, 92 Stat. 2894; amended Pub. L. 96–595, § 3(a)(5), (6), (8), Dec. 24, 1980, 94 Stat. 3465, related to taxation of general stock ownership corporation taxable income to shareholders, prior to repeal by Pub. L. 99–514, title XIII, § 1303(a), Oct. 22, 1986, 100 Stat. 2658.

Reference

Citations & Metadata

Citation

26 U.S.C. § 1393

Title 26Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73