Title 26, Internal Revenue CodeRelease 119-110

§1393 Definitions and Special Rules

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

Last updated Sep 22, 2026|Official source

Summary

Sets simple rules and meanings used to pick and run empowerment zones and enterprise communities. The "appropriate Secretary" is the Secretary of Housing and Urban Development for areas in urban places and the Secretary of Agriculture for areas in rural places. A rural area is either outside a metropolitan statistical area (see section 143(k)(2)(B)) or one the Secretary of Agriculture, after talking with the Secretary of Commerce, says is rural. An urban area is any area that is not rural. No empowerment zone or enterprise community can include land inside an Indian reservation (see section 168(j)(6) for the reservation definition). "Local government" means counties, cities, towns, townships, parishes, villages, or similar state subdivisions, and any group of those the appropriate Secretary recognizes. A "nominated area" is an area put forward by one or more local governments and the state(s) for designation under section 1391. If several states or local governments join a nomination, the rules apply to all of them. A state-chartered economic development corporation can count as nominating for the state and local government. Population and poverty rates use the most recent decennial census. For tax purposes, "empowerment zone" and "enterprise community" are areas designated under section 1391.

Full Legal Text

Title 26, §1393

Internal Revenue Code, Source: USLM XML via OLRC

(a)In general
For purposes of this subchapter—
(1)Appropriate Secretary
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)Rural area
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)Urban area
The term “urban area” means an area which is not a rural area.
(4)Special rules for Indian reservations
(A)In general
No empowerment zone or enterprise community may include any area within an Indian reservation.
(B)Indian reservation defined
The term “Indian reservation” has the meaning given such term by section 168(j)(6).
(5)Local government
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)Nominated area
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)Governments
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)Special rule
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)Use of census data
Population and poverty rate shall be determined by the most recent decennial census data available.
(b)Empowerment zone; enterprise community
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 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110