{"identifier":"/us/usc/t26/s1394","title":26,"num":"\u00a7\u202f1394.","heading":"Tax-exempt enterprise zone facility bonds","text":"\u00a7\u202f1394.\nTax-exempt enterprise zone facility bonds\n(a)\nIn general\nFor purposes of part IV of subchapter B of this chapter (relating to tax exemption requirements for State and local bonds), the term \u201cexempt facility bond\u201d includes any bond issued as part of an issue 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of which are to be used to provide any enterprise zone facility.\n(b)\nEnterprise zone facility\nFor purposes of this section\u2014\n(1)\nIn general\nThe term \u201centerprise zone facility\u201d means any qualified zone property the principal user of which is an enterprise zone business, and any land which is functionally related and subordinate to such property.\n(2)\nQualified zone property\nThe term \u201cqualified zone property\u201d has the meaning given such term by section 1397D; except that\u2014\n(A) the references to empowerment zones shall be treated as including references to enterprise communities, and\n(B) section 1397D(a)(2) shall be applied by substituting \u201can amount equal to 15 percent of the adjusted basis\u201d for \u201can amount equal to the adjusted basis\u201d.\n(3)\nEnterprise zone business\n(A)\nIn general\nExcept as modified in this paragraph, the term \u201centerprise zone business\u201d has the meaning given such term by section 1397C.\n(B)\nModifications\nIn applying section 1397C for purposes of this section\u2014\n(i)\nBusinesses in enterprise communities eligible\n(I)\nIn general\nExcept as provided in subclause (II), references in section 1397C to empowerment zones shall be treated as including references to enterprise communities.\n(II)\nSpecial rule for employee residence test\nFor purposes of subsections (b)(6) and (c)(5) of section 1397C, an employee shall be treated as a resident of an empowerment zone if such employee is a resident of an empowerment zone, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction.\n(ii)\nWaiver of requirements during startup period\nA business shall not fail to be treated as an enterprise zone business during the startup period if\u2014\n(I) as of the beginning of the startup period, it is reasonably expected that such business will be an enterprise zone business (as defined in section 1397C as modified by this paragraph) at the end of such period, and\n(II) such business makes bona fide efforts to be such a business.\n(iii)\nReduced requirements after testing period\nA business shall not fail to be treated as an enterprise zone business for any taxable year beginning after the testing period by reason of failing to meet any requirement of subsection (b) or (c) of section 1397C if at least 35 percent of the employees of such business for such year are residents of an empowerment zone, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction. The preceding sentence shall not apply to any business which is not a qualified business by reason of paragraph (1), (4), or (5) of section 1397C(d).\n(C)\nQualified low-income community\nFor purposes of subparagraph (B)\u2014\n(i)\nIn general\nThe term \u201cqualified low-income community\u201d means any population census tract if\u2014\n(I) the poverty rate for such tract is at least 20 percent, or\n(II) the median family income for such tract does not exceed 80 percent of statewide median family income (or, in the case of a tract located within a metropolitan area, metropolitan area median family income if greater).\nSubclause (II) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States.\n(ii)\nTargeted populations\nThe Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994) may be treated as qualified low-income communities.\n(iii)\nAreas not within census tracts\nIn the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income.\n(iv)\nModification of income requirement for census tracts within high migration rural counties\n(I)\nIn general\nIn the case of a population census tract located within a high migration rural county, clause (i)(II) shall be applied to areas not located within a metropolitan area by substituting \u201c85 percent\u201d for \u201c80 percent\u201d.\n(II)\nHigh migration rural county\nFor purposes of this clause, the term \u201chigh migration rural county\u201d means any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period.\n(D)\nOther definitions relating to subparagraph (B)\nFor purposes of subparagraph (B)\u2014\n(i)\nStartup period\nThe term \u201cstartup period\u201d means, with respect to any property being provided for any business, the period before the first taxable year beginning more than 2 years after the later of\u2014\n(I) the date of issuance of the issue providing such property, or\n(II) the date such property is first placed in service after such issuance (or, if earlier, the date which is 3 years after the date described in subclause (I)).\n(ii)\nTesting period\nThe term \u201ctesting period\u201d means the first 3 taxable years beginning after the startup period.\n(iii)\nApplicable nominating jurisdiction\nThe term \u201capplicable nominating jurisdiction\u201d means, with respect to any empowerment zone or enterprise community, any local government that nominated such community for designation under section 1391.\n(E)\nPortions of business may be enterprise zone business\nThe term \u201centerprise zone business\u201d includes any trades or businesses which would qualify as an enterprise zone business (determined after the modifications of subparagraph (B)) if such trades or businesses were separately incorporated.\n(c)\nLimitation on amount of bonds\n(1)\nIn general\nSubsection (a) shall not apply to any issue if the aggregate amount of outstanding enterprise zone facility bonds allocable to any person (taking into account such issue) exceeds\u2014\n(A) $3,000,000 with respect to any 1 empowerment zone or enterprise community, or\n(B) $20,000,000 with respect to all empowerment zones and enterprise communities.\n(2)\nAggregate enterprise zone facility bond benefit\nFor purposes of paragraph (1), the aggregate amount of outstanding enterprise zone facility bonds allocable to any person shall be determined under rules similar to the rules of section 144(a)(10), taking into account only bonds to which subsection (a) applies.\n(d)\nAcquisition of land and existing property permitted\nThe requirements of sections 147(c)(1)(A) and 147(d) shall not apply to any bond described in subsection (a).\n(e)\nPenalty for ceasing to meet requirements\n(1)\nFailures corrected\nAn issue which fails to meet 1 or more of the requirements of subsections (a) and (b) shall be treated as meeting such requirements if\u2014\n(A) the issuer and any principal user in good faith attempted to meet such requirements, and\n(B) any failure to meet such requirements is corrected within a reasonable period after such failure is first discovered.\n(2)\nLoss of deductions where facility ceases to be qualified\nNo deduction shall be allowed under this chapter for interest on any financing provided from any bond to which subsection (a) applies with respect to any facility to the extent such interest accrues during the period beginning on the first day of the calendar year which includes the date on which\u2014\n(A) substantially all of the facility with respect to which the financing was provided ceases to be used in an empowerment zone or enterprise community, or\n(B) the principal user of such facility ceases to be an enterprise zone business (as defined in subsection (b)).\n(3)\nException if zone ceases\nParagraphs (1) and (2) shall not apply solely by reason of the termination or revocation of a designation as an empowerment zone or an enterprise community.\n(4)\nException for bankruptcy\nParagraphs (1) and (2) shall not apply to any cessation resulting from bankruptcy.\n(f)\nBonds for empowerment zones\n(1)\nIn general\nIn the case of an empowerment zone facility bond\u2014\n(A) such bond shall not be treated as a private activity bond for purposes of section 146, and\n(B) subsection (c) of this section shall not apply.\n(2)\nLimitation on amount of bonds\n(A)\nIn general\nParagraph (1) shall apply to an empowerment zone facility bond only if such bond is designated for purposes of this subsection by the local government which nominated the area to which such bond relates.\n(B)\nLimitation on bonds designated\nThe aggregate face amount of bonds which may be designated under subparagraph (A) with respect to any empowerment zone shall not exceed\u2014\n(i) $60,000,000 if such zone is in a rural area,\n(ii) $130,000,000 if such zone is in an urban area and the zone has a population of less than 100,000, and\n(iii) $230,000,000 if such zone is in an urban area and the zone has a population of at least 100,000.\n(C)\nSpecial rules\n(i)\nCoordination with limitation in subsection (c)\nBonds to which paragraph (1) applies shall not be taken into account in applying the limitation of subsection (c) to other bonds.\n(ii)\nCurrent refunding not taken into account\nIn the case of a refunding (or series of refundings) of a bond designated under this paragraph, the refunding obligation shall be treated as designated under this paragraph (and shall not be taken into account in applying subparagraph (B)) if\u2014\n(I) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and\n(II) the refunded bond is redeemed not later than 90 days after the date of issuance of the refunding bond.\n(3)\nEmpowerment zone facility bond\nFor purposes of this subsection, the term \u201cempowerment zone facility bond\u201d means any bond which would be described in subsection (a) if\u2014\n(A) in the case of obligations issued before\nJanuary 1, 2002\n(B) in the case of obligations issued after\nDecember 31, 2001","url":"https://projectusc.org/usc/t26/s1394.html","content":[{"t":"sec","id":"/us/usc/t26/s1394","children":[{"t":"num","text":"\u00a7\u202f1394."},{"t":"heading","text":"Tax-exempt enterprise zone facility bonds"},{"t":"subsec","id":"/us/usc/t26/s1394/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"For purposes of part IV of subchapter B of this chapter (relating to tax exemption requirements for State and local bonds), the term \u201cexempt facility bond\u201d includes any bond issued as part of an issue 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of which are to be used to provide any enterprise zone facility.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1394/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Enterprise zone facility"},{"t":"chapeau","text":"For purposes of this section\u2014"},{"t":"para","id":"/us/usc/t26/s1394/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The term \u201centerprise zone facility\u201d means any qualified zone property the principal user of which is an enterprise zone business, and any land which is functionally related and subordinate to such property.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Qualified zone property"},{"t":"chapeau","text":"The term \u201cqualified zone property\u201d has the meaning given such term by section 1397D; except that\u2014"},{"t":"subpara","id":"/us/usc/t26/s1394/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the references to empowerment zones shall be treated as including references to enterprise communities, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" section 1397D(a)(2) shall be applied by substituting \u201can amount equal to 15 percent of the adjusted basis\u201d for \u201can amount equal to the adjusted basis\u201d.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Enterprise zone business"},{"t":"subpara","id":"/us/usc/t26/s1394/b/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as modified in this paragraph, the term \u201centerprise zone business\u201d has the meaning given such term by section 1397C.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/b/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Modifications"},{"t":"chapeau","text":"In applying section 1397C for purposes of this section\u2014"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Businesses in enterprise communities eligible"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as provided in subclause (II), references in section 1397C to empowerment zones shall be treated as including references to enterprise communities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"heading","text":"Special rule for employee residence test"},{"t":"content","children":[{"t":"p","text":"For purposes of subsections (b)(6) and (c)(5) of section 1397C, an employee shall be treated as a resident of an empowerment zone if such employee is a resident of an empowerment zone, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Waiver of requirements during startup period"},{"t":"chapeau","text":"A business shall not fail to be treated as an enterprise zone business during the startup period if\u2014"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/B/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" as of the beginning of the startup period, it is reasonably expected that such business will be an enterprise zone business (as defined in section 1397C as modified by this paragraph) at the end of such period, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/B/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" such business makes bona fide efforts to be such a business.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Reduced requirements after testing period"},{"t":"content","children":[{"t":"p","text":"A business shall not fail to be treated as an enterprise zone business for any taxable year beginning after the testing period by reason of failing to meet any requirement of subsection (b) or (c) of section 1397C if at least 35 percent of the employees of such business for such year are residents of an empowerment zone, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction. The preceding sentence shall not apply to any business which is not a qualified business by reason of paragraph (1), (4), or (5) of section 1397C(d).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/b/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Qualified low-income community"},{"t":"chapeau","text":"For purposes of subparagraph (B)\u2014"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The term \u201cqualified low-income community\u201d means any population census tract if\u2014"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/C/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the poverty rate for such tract is at least 20 percent, or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/C/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the median family income for such tract does not exceed 80 percent of statewide median family income (or, in the case of a tract located within a metropolitan area, metropolitan area median family income if greater).","tail":"\n"}],"tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"Subclause (II) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States.","tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Targeted populations"},{"t":"content","children":[{"t":"p","text":"The Secretary shall prescribe regulations under which 1 or more targeted populations (within the meaning of section 103(20) of the Riegle Community Development and Regulatory Improvement Act of 1994) may be treated as qualified low-income communities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Areas not within census tracts"},{"t":"content","children":[{"t":"p","text":"In the case of an area which is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of defining poverty areas) shall be used for purposes of determining poverty rates and median family income.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/C/iv","children":[{"t":"num","text":"(iv)"},{"t":"heading","text":"Modification of income requirement for census tracts within high migration rural counties"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/C/iv/I","children":[{"t":"num","text":"(I)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"In the case of a population census tract located within a high migration rural county, clause (i)(II) shall be applied to areas not located within a metropolitan area by substituting \u201c85 percent\u201d for \u201c80 percent\u201d.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/C/iv/II","children":[{"t":"num","text":"(II)"},{"t":"heading","text":"High migration rural county"},{"t":"content","children":[{"t":"p","text":"For purposes of this clause, the term \u201chigh migration rural county\u201d means any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/b/3/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Other definitions relating to subparagraph (B)"},{"t":"chapeau","text":"For purposes of subparagraph (B)\u2014"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/D/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Startup period"},{"t":"chapeau","text":"The term \u201cstartup period\u201d means, with respect to any property being provided for any business, the period before the first taxable year beginning more than 2 years after the later of\u2014"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/D/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the date of issuance of the issue providing such property, or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1394/b/3/D/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the date such property is first placed in service after such issuance (or, if earlier, the date which is 3 years after the date described in subclause (I)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Testing period"},{"t":"content","children":[{"t":"p","text":"The term \u201ctesting period\u201d means the first 3 taxable years beginning after the startup period.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/b/3/D/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Applicable nominating jurisdiction"},{"t":"content","children":[{"t":"p","text":"The term \u201capplicable nominating jurisdiction\u201d means, with respect to any empowerment zone or enterprise community, any local government that nominated such community for designation under section 1391.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/b/3/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Portions of business may be enterprise zone business"},{"t":"content","children":[{"t":"p","text":"The term \u201centerprise zone business\u201d includes any trades or businesses which would qualify as an enterprise zone business (determined after the modifications of subparagraph (B)) if such trades or businesses were separately incorporated.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1394/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Limitation on amount of bonds"},{"t":"para","id":"/us/usc/t26/s1394/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"Subsection (a) shall not apply to any issue if the aggregate amount of outstanding enterprise zone facility bonds allocable to any person (taking into account such issue) exceeds\u2014"},{"t":"subpara","id":"/us/usc/t26/s1394/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" $3,000,000 with respect to any 1 empowerment zone or enterprise community, or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" $20,000,000 with respect to all empowerment zones and enterprise communities.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Aggregate enterprise zone facility bond benefit"},{"t":"content","children":[{"t":"p","text":"For purposes of paragraph (1), the aggregate amount of outstanding enterprise zone facility bonds allocable to any person shall be determined under rules similar to the rules of section 144(a)(10), taking into account only bonds to which subsection (a) applies.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1394/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Acquisition of land and existing property permitted"},{"t":"content","children":[{"t":"p","text":"The requirements of sections 147(c)(1)(A) and 147(d) shall not apply to any bond described in subsection (a).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1394/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Penalty for ceasing to meet requirements"},{"t":"para","id":"/us/usc/t26/s1394/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Failures corrected"},{"t":"chapeau","text":"An issue which fails to meet 1 or more of the requirements of subsections (a) and (b) shall be treated as meeting such requirements if\u2014"},{"t":"subpara","id":"/us/usc/t26/s1394/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the issuer and any principal user in good faith attempted to meet such requirements, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any failure to meet such requirements is corrected within a reasonable period after such failure is first discovered.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Loss of deductions where facility ceases to be qualified"},{"t":"chapeau","text":"No deduction shall be allowed under this chapter for interest on any financing provided from any bond to which subsection (a) applies with respect to any facility to the extent such interest accrues during the period beginning on the first day of the calendar year which includes the date on which\u2014"},{"t":"subpara","id":"/us/usc/t26/s1394/e/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" substantially all of the facility with respect to which the financing was provided ceases to be used in an empowerment zone or enterprise community, or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/e/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the principal user of such facility ceases to be an enterprise zone business (as defined in subsection (b)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Exception if zone ceases"},{"t":"content","children":[{"t":"p","text":"Paragraphs (1) and (2) shall not apply solely by reason of the termination or revocation of a designation as an empowerment zone or an enterprise community.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/e/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Exception for bankruptcy"},{"t":"content","children":[{"t":"p","text":"Paragraphs (1) and (2) shall not apply to any cessation resulting from bankruptcy.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1394/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Bonds for empowerment zones"},{"t":"para","id":"/us/usc/t26/s1394/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"In the case of an empowerment zone facility bond\u2014"},{"t":"subpara","id":"/us/usc/t26/s1394/f/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" such bond shall not be treated as a private activity bond for purposes of section 146, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/f/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" subsection (c) of this section shall not apply.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Limitation on amount of bonds"},{"t":"subpara","id":"/us/usc/t26/s1394/f/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Paragraph (1) shall apply to an empowerment zone facility bond only if such bond is designated for purposes of this subsection by the local government which nominated the area to which such bond relates.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/f/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Limitation on bonds designated"},{"t":"chapeau","text":"The aggregate face amount of bonds which may be designated under subparagraph (A) with respect to any empowerment zone shall not exceed\u2014"},{"t":"clause","id":"/us/usc/t26/s1394/f/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" $60,000,000 if such zone is in a rural area,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/f/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" $130,000,000 if such zone is in an urban area and the zone has a population of less than 100,000, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/f/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" $230,000,000 if such zone is in an urban area and the zone has a population of at least 100,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/f/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Special rules"},{"t":"clause","id":"/us/usc/t26/s1394/f/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Coordination with limitation in subsection (c)"},{"t":"content","children":[{"t":"p","text":"Bonds to which paragraph (1) applies shall not be taken into account in applying the limitation of subsection (c) to other bonds.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s1394/f/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Current refunding not taken into account"},{"t":"chapeau","text":"In the case of a refunding (or series of refundings) of a bond designated under this paragraph, the refunding obligation shall be treated as designated under this paragraph (and shall not be taken into account in applying subparagraph (B)) if\u2014"},{"t":"subclause","id":"/us/usc/t26/s1394/f/2/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s1394/f/2/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the refunded bond is redeemed not later than 90 days after the date of issuance of the refunding bond.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1394/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Empowerment zone facility bond"},{"t":"chapeau","text":"For purposes of this subsection, the term \u201cempowerment zone facility bond\u201d means any bond which would be described in subsection (a) if\u2014"},{"t":"subpara","id":"/us/usc/t26/s1394/f/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" in the case of obligations issued before ","children":[{"t":"text","text":"January 1, 2002","tail":", only empowerment zones designated under section 1391(g) were taken into account under sections 1397C and 1397D, and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s1394/f/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" in the case of obligations issued after ","children":[{"t":"text","text":"December 31, 2001","tail":", all empowerment zones (other than the District of Columbia Enterprise Zone) were taken into account under sections 1397C and 1397D."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}