§1393 — Title 26 Internal Revenue Code | U.S. Code

§1393 Definitions and Special Rules

Title 26 › Subtitle 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 Apr 5, 2026|Official source

Summary

Names who is in charge and explains key words for these programs. The "appropriate Secretary" is the Secretary of Housing and Urban Development for nominated areas in urban places and the Secretary of Agriculture for nominated 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, calls rural. An "urban area" is any area that is not rural. No empowerment zone or enterprise community can include land on an Indian reservation (see section 168(j)(6)). A "local government" means counties, cities, towns, townships, parishes, villages, or similar local units, and combinations the appropriate Secretary accepts. A "nominated area" is one put forward by one or more local governments and the State(s) for designation under section 1391; if several States or local governments nominate the same area, the rules apply to all of them. An area nominated by a State-chartered economic development corporation counts as nominated by the State and a local government. Population and poverty rates use the most recent decennial census. For this title, "empowerment zone" and "enterprise community" mean areas designated under section 1391.

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.

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.