§ 1394. Tax-exempt enterprise zone facility bonds

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1993

   Revenue Reconciliation Act of 1993

   Pub. L. 103–66 title XIII § 13301(a) · 107 Stat. 312

   Enacted · 26 U.S.C. § 1394

   Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 548

   Source evidence

   Code source credit
   Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 548

   Enacted provision · exact public law section
   (a) In General.— Chapter 1 (relating to normal taxes and surtaxes) is amended by inserting after subchapter T the following new subchapter: “Subchapter U— Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas “Part I. Designation. “Part II. Tax-exempt facility bonds for empowerment zones and enterprise communities. “Part III. Additional incentives for empowerment zones. “Part IV. Regulations. “PART I— DESIGNATION “Sec. 1391. Designation procedure. “Sec. 1392. Eligibility criteria. “Sec. 1393. Definitions and special rules. “SEC. 1391. DESIGNATION PROCEDURE. “(a) In General.— From among the areas nominated for designation under this section, the appropriate Secretaries may designate empowerment zones and enterprise communities. “(b) Number of Designations.— “(1) Enterprise communities.— The appropriate Secretaries may designate in the aggregate 95 nominated areas as enterprise communities under this section, subject to the availability of eligible nominated areas. Of that number, not more than 65 may be designated in urban areas and not more than 30 may be designated in rural areas. “(2) Empowerment zones.— The appropriate Secretaries may designate in the aggregate 9 nominated areas as empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more than 6 may be designated in urban areas and not more than 3 may be designated in rural areas. If 6 empowerment zones are designated in urban areas, no less than 1 shall be designated in an urban area the most populous city of which has a population of 500,000 or less and no less than 1 shall be a nominated area which includes areas in 2 States and which has a population of 50,000 or less. The Secretary of Housing and Urban Development shall designate empowerment zones located in urban areas in such a manner that the aggregate population of all such zones does not exceed 750,000. “(c) Period Designations May Be Made.—A designation may be made under this section only after 1993 and before 1996. “(d) Period for Which Designation Is In Effect.— “(1) In general.— Any designation under this section shall remain in effect during the period beginning on the date of the designation and ending on the earliest of— “(A) the close of the 10th calendar year beginning on or after such date of designation, “(B) the termination date designated by the State and local governments as provided for in their nomination, or “(C) the date the appropriate Secretary revokes the designation. “(2) Revocation of designation.— The appropriate Secretary may revoke the designation under this section of an area if such Secretapr determines that the local government or the State in which it is located— “(A) has modified the boundaries of the area, or “(B) is not complying substantially with, or fails to make progress in achieving the benchmarks set forth in, the strategic plan under subsection (f)(2). “(e) Limitations on Designations.— No area may be designated under subsection (a) unless— “(1) the area is nominated by 1 or more local governments and the State or States in which it is located for designation under this section, “(2) such State or States and the local governments have the authority— “(A) to nominate the area for designation under this section, and “(B) to provide the assurances described in paragraph (3), “(3) such State or States and the local governments provide written assurances satisfactory to the appropriate Secretary that the strategic plan described in the application under subsection (f)(2) for such area will be implemented, “(4) the appropriate Secretary determines that any information furnished is reasonably accurate, and “(5) such State or States and local governments certify that no portion of the area nominated is already included in an empowerment zone or in an enterprise community or in an area otherwise nominated to be designated under this section. “(f) Application.— No area may be designated under subsection (a) unless the application for such designation— “(1) demonstrates that the nominated area satisfies the eligibility criteria described in section 1392, “(2) includes a strategic plan for accomplishing the purposes of this subchapter that— “(A) describes the coordinated economic, human, community, and physical development plan and related activities proposed for the nominated area, “(B) describes the process by which the affected community is a full partner in the process of developing and implementing the plan and the extent to which local institutions and organizations have contributed to the planning process, “(C) identifies the amount of State, local, and private resources that will be available in the nominated area and the private/public partnerships to be used, which may include participation by, and cooperation with, universities, medical centers, and other private and public entities, “(D) identifies the funding requested under any Federal program in support of the proposed economic, human, community, and physical development and related activities, “(E) identifies baselines, methods, and benchmarks for measuring the success of carrying out the strategic plan, including the extent to which poor persons and families will be empowered to become economically self-sufficient, and “(F) does not include any action to assist any establishment in relocating from one area outside the nominated area to the nominated area, except that assistance for the expansion of an existing business entity through the establishment of a new branch, affiliate, or subsidiary is permitted if— “(i) the establishment of the new branch, affiliate, or subsidiary will not result in a decrease in employment in the area of original location or in any other area where the existing business entity conducts business operations, and “(ii) there is no reason to believe that the new branch, affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where the existing business entity conducts business operation, and “(3) includes such other information as may be required by the appropriate Secretary. “SEC. 1392. ELIGIBILITY CRITERIA. “(a) In General.— A nominated area shall be eligible for designation under section 1391 only if it meets the following criteria: “(1) Population.— The nominated area has a maximum population of— “(A) in the case of an urban area, the lesser of— “(i) 200,000, or “(ii) the greater of 50,000 or 10 percent of the population of the most populous city located within the nominated area, and “(B) in the case of a rural area, 30,000. “(2) Distress.— The nominated area is one of pervasive poverty, unemployment, and general distress. “(3) Size.— The nominated area— “(A) does not exceed 20 square miles if an urban area or 1,000 square miles if a rural area, “(B) has a boundary which is continuous, or, except in the case of a rural area located in more than 1 State, consists of not more than 3 noncontiguous parcels, “(C) (i) in the case of an urban area, is located entirely within no more than 2 contiguous States, and “(ii) in the case of a rural area, is located entirely within no more than 3 contiguous States, and “(D) does not include any portion of a central business district (as such term is used for purposes of the most recent Census of Retail Trade) unless the poverty rate for each population census tract in such district is not less than 35 percent (30 percent in the case of an enterprise community). “(4) Poverty rate.— The poverty rate— “(A) for each population census tract within the nominated area is not less than 20 percent, “(B) for at least 90 percent of the population census tracts within the nominated area is not less than 25 percent, and “(C) for at least 50 percent of the population census tracts within the nominated area is not less than 35 percent. “(b) Special Rules Relating to Determination of Poverty Rate.— For purposes of subsection (a)(4)— “(1) Treatment of census tracts with small populations.— “(A) Tracts with no population.— In the case of a population census tract with no population— “(i) such tract shall be treated as having a poverty rate which meets the requirements of subparagraphs (A) and (B) of subsection (a)(4), but “(ii) such tract shall be treated as having a zero poverty rate for purposes of applying subparagraph (C) thereof. “(B) Tracts with populations of less than 2,000.— A population census tract with a population of less than 2,000 shall be treated as having a poverty rate which meets the requirements of subparagraphs (A) and (B) of subsection (a)(4) if more than 75 percent of such tract is zoned for commercial or industrial use. “(2) Discretion to adjust requirements for enterprise communities.— In determining whether a nominated area is eligible for designation as an enterprise community, the appropriate Secretary may, where necessary to carry out the purposes of this subchapter, reduce by 5 percentage points one of the following thresholds for not more than 10 percent of the population census tracts (or, if fewer, 5 population census tracts) in the nominated area: “(A) The 20 percent threshold in subsection (a)(4)(A). “(B) The 25 percent threshold in subsection (a)(4)(B). “(C) The 35 percent threshold in subsection (a)(4)(C). If the appropriate Secretary elects to reduce the threshold under subparagraph (C), such Secretary may (in lieu of applying the preceding sentence) reduce by 10 percentage points the threshold under subparagraph (C) for 3 population census tracts. “(3) Each noncontiguous area must satisfy poverty rate rule.— A nominated area may not include a noncontiguous parcel unless such parcel separately meets (subject to paragraphs (1) and (2)) the criteria set forth in subsection (a)(4). “(4) Areas not within census tracts.— 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. “(c) Factors To Consider.— From among the nominated areas eligible for designation under section 1391 by the appropriate Secretary, such appropriate Secretary shall make designations of empowerment zones and enterprise communities on the basis of— “(1) the effectiveness of the strategic plan submitted pursuant to section 1391(0(2) and the assurances made pursuant to section 1391(e)(3), and “(2) criteria specified by the appropriate Secretary. “SEC. 1393. DEFINITIONS AND SPECIAL RULES. “(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. “PART II— TAX-EXEMPT FACILITY BONDS FOR EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES “Sec. 1394. Tax-exempt enterprise zone facility bonds. “SEC. 1394. TAX-EXEMPT ENTERPRISE ZONE FACILITY BONDS. “(a) In General.— For purposes of part IV of subchapter B of this chapter (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ 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. “(b) Enterprise Zone Facility.— For purposes of this section— “(1) In general.— The term ‘enterprise zone facility’ 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. “(2) Qualified zone property.— The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that the references to empowerment zones shall be treated as including references to enterprise communities. “(3) Enterprise zone business.— The term ‘enterprise zone business’ has the meaning given to such term by section 1397B, except that— “(A) references to empowerment zones shall be treated as including references to enterprise communities, and “(B) such term includes any trades or businesses which would qualify as an enterprise zone business (determined after the modification of subparagraph (A)) if such trades or businesses were separately incorporated. “(c) Limitation on Amount of Bonds.— “(1) In general.— 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— “(A) $3,000,000 with respect to any 1 empowerment zone or enterprise community, or “(B) $20,000,000 with respect to all empowerment zones and enterprise communities. “(2) Aggregate enterprise zone facility bond benefit.— For purposes of subparagraph (A), 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. “(d) Acquisition of Land and Existing Property Permitted.— The requirements of sections 147(c)(1)(A) and 147(d) shall not apply to any bond described in subsection (a). “(e) Penalty for Ceasing to Meet Requirements.— “(1) Failures corrected.— 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— “(A) the issuer and any principal user in good faith attempted to meet such requirements, and “(B) any failure to meet such requirements is corrected within a reasonable period after such failure is first discovered. “(2) Loss of deductions where facility ceases to be qualified.— 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— “(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 “(B) the principal user of such facility ceases to be an enterprise zone business (as defined in subsection (b)). “(3) Exception if zone ceases.— 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. “(4) Exception for bankruptcy.— Paragraphs (1) and (2) shall not apply to any cessation resulting from bankruptcy. “PART III— ADDITIONAL INCENTIVES FOP EMPOWERMENT ZONES “Subpart A. Empowerment zone employment credit. “Subpart B. Additional expensing. “Subpart C. General provisions. “Subpart A— Empowerment Zone Employment Credit “Sec. 1396. Empowerment zone employment credit “Sec. 1397. Other definitions and special rules. “SEC. 1396. EMPOWERMENT ZONE EMPLOYMENT CREDIT. “(a) Amount of Credit.— For purposes of section 38, the amount of the empowerment zone employment credit determined under this section with respect to any employer for any taxable year is the applicable percentage of the qualified zone wages paid or incurred during the calendar year which ends with or within such taxable year. “(b) Applicable Percentage.— For purposes of this section, the term ‘applicable percentage’ means the percentage determined in accordance with the following table: “In the case of wages paid or incurred during calendar year: The applicable percentage is:   1994 through 2001 20    2002 15    2003 10    2004 5  “(c) Qualified Zone Wages.— “(1) In general.— For purposes of this section, the term ‘qualified zone wages’ means any wages paid or incurred by an employer for services performed by an employee while such employee is a qualified zone employee. “(2) Only first 115,000 of wages per year taken into account.— With respect to each qualified zone employee, the amount of qualified zone wages which may be taken into account for a calendar year shall not exceed $15,000. “(3) Coordination with targeted jobs credit.— “(A) In general.— The term ‘qualified zone wages’ shall not include wages taken into account in determining the credit under section 51. “(B) Coordination with paragraph (2).— The $15,000 amount in paragraph (2) shall be reduced for any calendar year by the amount of wages paid or incurred during such year which are taken into account in determining the credit under section 51. “(d) Qualified Zone Employee.— For purposes of this section— “(1) In general.— Except as otherwise provided in this subsection, the term ‘qualified zone employee’ means, with respect to any period, any employee of an employer if— “(A) substantially all of the services performed during such period by such employee for such employer are performed within an empowerment zone in a trade or business of the employer, and “(B) the principal place of abode of such employee while performing such services is within such empowerment zone. “(2) Certain individuals not eligible.— The term ‘qualified zone employee’ shall not include— “(A) any individual described in subparagraph (A), (B), or (C) of section 51(i)(1), “(B) any 5-percent owner (as defined in section 416(i)(1)(B)), “(C) any individual employed by the employer for less than 90 days, “(D) any individual employed by the employer at any facility described in section 144(c)(6)(B), and “(E) any individual employed by the employer in a trade or business the principal activity of which is farming (within the meaning of subparagraph (A) or (B) of section 2032A(e)(5)), but only if, as of the close of the taxable year, the sum of— “(i) the aggregate unadjusted bases (or, if greater, the fair market value) of the assets owned by the employer which are used in such a trade or business, and “(ii) the aggregate value of assets leased by the employer which are used in such a trade or business (as determined under regulations prescribed by the Secretary), exceeds $500,000. “(3) Special rules related to termination of employment.— “(A) In general.— Paragraph (2)(C) shall not apply to— “(i) a termination of employment of an individual who before the close of the period referred to in paragraph (2)(C) becomes disabled to perform the services of such employment unless such disability is removed before the close of such period and the taxpayer fails to offer reemployment to such individual, or “(ii) a termination of employment of an individual if it is determined under the applicable State unemployment compensation law that the termination was due to the misconduct of such individual. “(B) Changes in form of business.— For purposes of paragraph (2)(C), the employment relationship between the taxpayer and an employee shall not be treated as terminated— “(i) by a transaction to which section 381(a) applies if the employee continues to be employed by the acquiring corporation, or “(ii) by reason of a mere change in the form of conducting the trade or business of the taxpayer if the employee continues to be employed in such trade or business and the taxpayer retains a substantial interest in such trade or business. “SEC. 1397. OTHER DEFINITIONS AND SPECIAL RULES. “(a) Wages.— For purposes of this subpart— “(1) In general.— The term ‘wages’ has the same meaning as when used in section 51. “(2) Certain training and educational benefits.— “(A) In general.— The following amounts shall be treated as wages paid to an employee: “(i) Any amount paid or incurred by an employer which is excludable from the gross income of an employee under section 127, but only to the extent paid or incurred to a person not related to the employer. “(ii) In the case of an employee who has not attained the age of 19, any amount paid or incurred by an employer for any youth training program operated by such employer in conjunction with local education officials. “(B) Related person.— A person is related to any other person if the person bears a relationship to such other person specified in section 267(b) or 707(b)(1), or such person and such other person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), ‘10 percent’ shall be substituted for ‘50 percent’. “(b) Controlled Groups.— For purposes of this subpart— “(1) all employers treated as a single employer under subsection (a) or (b) of section 52 shall be treated as a single employer for purposes of this subpart, and “(2) the credit (if any) determined under section 1396 with respect to each such employer shall be its proportionate share of the wages giving rise to such credit. “(c) Certain Other Rules Made Applicable.— For purposes of this subpart, rules similar to the rules of section 51(k) and subsections (c), (d), and (e) of section 52 shall apply. “Subpart B— Additional Expensing “Sec. 1397A. Increase in expensing under section 179. “SEC. 1397A. INCREASE IN EXPENSING UNDER SECTION 17”. “(a) General Rule.— In the case of an enterprise zone business, for purposes of section 179— “(1) the limitation under section 179(b)(1) shall be increased by the lesser of— “(A) $20,000, or “(B) the cost of section 179 property which is qualified zone property placed in service during the taxable year, and “(2) the amount taken into account under section 179(b)(2) with respect to any section 179 property which is qualified zone property shall be 50 percent of the cost thereof. “(b) Recapture.— Rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified zone property which ceases to be used in an empowerment zone by an enterprise zone business. “Subpart C— General Provisions “Sec. 1397B. Enterprise zone business defined. “Sec. 1397C. Qualified zone property defined. “SEC. 1397B. ENTERPRISE ZONE BUSINESS DEFINED. “(a) In General.— For purposes of this part, the term ‘enterprise zone business’ means— “(1) any qualified business entity, and “(2) any qualified proprietorship. “(b) Qualified Business Entity.— For purposes of this section, the term ‘qualified business entity’ means, with respect to any taxable year, any corporation or partnership if for such year— “(1) every trade or business of such entity is the active conduct of a qualified business within an empowerment zone, “(2) at least 80 percent of the total gross income of such entity is derived from the active conduct of such business, “(3) substantially all of the use of the tangible property of such entity (whether owned or leased) is within an empowerment zone, “(4) substantially all of the intangible property of such entity is used in, and exclusively related to, the active conduct of any such business, “(5) substantially all of the services performed for such entity by its employees are performed in an empowerment zone, “(6) at least 35 percent of its employees are residents of an empowerment zone, “(7) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to collectibles (as defined in section 408(mj(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business, and “(8) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property. “(c) Qualified Proprietorship.— For purposes of this section, the term ‘qualified proprietorship’ means, with respect to any taxable year, any qualified business carried on by an individual as a proprietorship if for such year— “(1) at least 80 percent of the total gross income of such individual from such business is derived from the active conduct of such business in an empowerment zone, “(2) substantially all of the use of the tangible property of such individual in such business (whether owned or leased) is within an empowerment zone, “(3) substantially all of the intangible property of such business is used in, and exclusively related to, the active conduct of such business, “(4) substantially all of the services performed for such individual in such business by employees of such business are performed in an empowerment zone, “(5) at least 35 percent of such employees are residents of an empowerment zone, “(6) less than 5 percent of the average of the aggregate unadjusted bases of the property of such individual which is used in such business is attributable to collectibles (as defined in section 408(m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business, and “(7) less than 5 percent of the average of the aggregate unadjusted bases of the property of such individual which is used in such business is attributable to nonqualified financial property. For purposes of this subsection, the term ‘employee’ includes the proprietor. “(d) Qualified Business.— For purposes of this section— (1) In general.— Except as otherwise provided in this subsection, the term ‘qualified business’ means any trade or business. “(2) Rental of real property.— The rental to others of real property located in an empowerment zone shall be treated as a qualified business if and only if— “(A) the property is not residential rental property (as defined in section 168(e)(2)), and “(B) at least 50 percent of the gross rental income from the real property is from enterprise zone businesses. “(3) Rental of tangible personal property.— The rental to others of tangible personal property shall be treated as a qualified business if and only if substantially all of the rental of such property is by enterprise zone businesses or by residents of an empowerment zone. “(4) Treatment of business holding intangibles.— The term ‘qualified business’ shall not include any trade or business consisting predominantly of the development or holding of intangibles for sale or license. “(5) Certain businesses excluded.— The term ‘qualified business’ shall not include— “(A) any trade or business consisting of the operation of any facility described in section 144(c)(6)(B), and “(B) any trade or business the principal activity of which is farming (within the meaning of subparagraphs (A) or (B) of section 2032A(e)(5)), but only if, as of the close of the preceding taxable year, the sum of— “(i) the aggregate unadjusted bases (or, if greater, the fair market value) of the assets owned by the taxpayer which are used in such a trade or business, and “(ii) the aggregate value of assets leased by the taxpayer which are used in such a trade or business, exceeds $500,000. For purposes of subparagraph (B), rules similar to the rules of section 1397(b) shall apply. “(e) Nonqualified Financial Property.— For purposes of this section, the term ‘nonqualified financial property’ means debt, stock, partnership interests, options, futures contracts, forward contracts, warrants, notional principal contracts, annuities, and other similar property specified m regulations; except that such term shall not include— “(1) reasonable amounts of working capital held in cash, cash equivalents, or debt instruments with a term of 18 months or less, or “(2) debt instruments described in section 1221(4). “SEC. 1397C. QUALIFED ZONE PROPERTY DEFINED. “(a) General Rule.— For purposes of this part— “(1) In general.— The term ‘qualified zone property’ means any property to which section 168 applies (or would apply but for section 179) if— “(A) 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, “(B) the original use of which in an empowerment zone commences with the taxpayer, and “(C) 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. “(2) Special rule for substantial renovations.— In the case of any property which is substantially renovated by the taxpayer, the requirements of subparagraphs (A) and (B) of paragraph (1) shall be treated as satisfied. For purposes of the preceding sentence, property shall be treated as substantially renovated by the taxpayer if, during any 24-month period beginning after the date on which the designation of the empowerment zone took effect, additions to basis with respect to such property in the hands of the taxpayer exceed the greater of (i) an amount equal to the adjusted basis at the beginning of such 24-month period in the hands of the taxpayer, or (ii) $5,000. “(b) Special Rules for Sale-Leasebacks.— For purposes of subsection (a)(1)(B), if property is sold and leased back by the taxpayer within 3 months after the date such property was originally placed in service, such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback. “PART IV— REGULATIONS “Sec. 1397D. Regulations. “SEC. 1397. REGULATIONS. “The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of parts II and III, including— “(1) regulations limiting the benefit of parts II and III in circumstances where such benefits, in combination with benefits provided under other Federal programs, would result in an activity being 100 percent or more subsidized by the Federal Government, “(2) regulations preventing abuse of the provisions of parts II and III, and “(3) regulations dealing with inadvertent failures of entities to be enterprise zone businesses.”

2. 1996

   Small Business Job Protection Act of 1996

   Pub. L. 104–188 title I § 1703(n)(7) · 110 Stat. 1755

   Struck and inserted · 26 U.S.C. § 1394(e)(2)

   Pub. L. 104–188, which directed that par. (2) be amended by striking “(i)” and inserting “(A)” and by striking “(ii)” and inserting “(B)”, could not be executed, because par. (2) contained neither “(i)” nor “(ii)”

   Source evidence

   Code amendment note
   Subsec. (e)(2). Pub. L. 104–188, which directed that par. (2) be amended by striking “(i)” and inserting “(A)” and by striking “(ii)” and inserting “(B)”, could not be executed, because par. (2) contained neither “(i)” nor “(ii)”.

   Enacted provision · exact public law section
   (7) Paragraph (2)of section 1394(e) is amended— (A) by striking “(i)” and inserting “(A)”, and (B) by striking “(ii)” and inserting “(B)”.

3. 1997

   Pub. L. 105–34 § 955(b) · 111 Stat. 788

   Amended · 26 U.S.C. § 1394(b)(2)

   Pub. L. 105–34, § 955(b), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that the references to empowerment zones shall be treated as including references to enterprise communities.”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 105–34, § 955(b), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that the references to empowerment zones shall be treated as including references to enterprise communities.”

   Enacted provision · exact public law section
   (b) Modifications Relating to Qualified Zone Property.— Paragraph (2) of section 1394(b) (defining qualified zone property) is amended to read as follows: “(2) Qualified zone property.— The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that— “(A) the references to empowerment zones shall be treated as including references to enterprise communities, and “(B) section 1397C(a)(2) shall be applied by substituting ‘an amount equal to 15 percent of the adjusted basis’ for ‘an amount equal to the adjusted basis’.”.

4. 1997

   Pub. L. 105–34 § 955(b) · 111 Stat. 788

   Amended · 26 U.S.C. § 1394(b)(3)

   Pub. L. 105–34, § 955(b), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘enterprise zone business’ has the meaning given to such term by section 1397B, except that—

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 105–34, § 955(b), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The term ‘enterprise zone business’ has the meaning given to such term by section 1397B, except that—

   “(A) references to empowerment zones shall be treated as including references to enterprise communities, and “(B) such term includes any trades or businesses which would qualify as an enterprise zone business (determined after the modification of subparagraph (A)) if such trades or businesses were separately incorporated.”

   Enacted provision · exact public law section
   (b) Modifications Relating to Qualified Zone Property.— Paragraph (2) of section 1394(b) (defining qualified zone property) is amended to read as follows: “(2) Qualified zone property.— The term ‘qualified zone property’ has the meaning given such term by section 1397C; except that— “(A) the references to empowerment zones shall be treated as including references to enterprise communities, and “(B) section 1397C(a)(2) shall be applied by substituting ‘an amount equal to 15 percent of the adjusted basis’ for ‘an amount equal to the adjusted basis’.”.

5. 1997

   Pub. L. 105–34 § 953(a) · 111 Stat. 788

   Added · 26 U.S.C. § 1394(f)

   Pub. L. 105–34, § 953(a), added subsec. (f)

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 105–34, § 953(a), added subsec. (f).

   Enacted provision · exact public law section
   (a) In General.— Section 1394 (relating to tax-exempt enterprise zone facility bonds) is amended by adding at the end the following new subsection: “(f) Bonds for Empowerment Zones Designated Under Section 1391(g).— “(1) In general.— In the case of a new empowerment zone facility bond— “(A) such bond shall not be treated as a private activity bond for purposes of section 146, and “(B) subsection (c) of this section shall not apply. “(2) Limitation on amount of bonds.— “(A) In general.— Paragraph (1) shall apply to a new 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. “(B) Limitation on bonds designated.— The aggregate face amount of bonds which may be designated under subparagraph (A) with respect to any empowerment zone shall not exceed— “(i) $60,000,000 if such zone is in a rural area, “(ii) $130,000,000 if such zone is in an urban area and the zone has a population of less than 100,000, and “(iii) $230,000,000 if such zone is in an urban area and the zone has a population of at least 100,000. “(C) Special rules.— “(i) Coordination with limitation in subsection (c).— Bonds to which paragraph (1) applies shall not be taken into account in applying the limitation of subsection (c) to other bonds. “(ii) Current refunding not taken into account.— 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— “(I) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and “(II) the refunded bond is redeemed not later than 90 days after the date of issuance of the refunding bond. “(3) New empowerment zone facility bond.— For purposes of this subsection, the term ‘new empowerment zone facility bond’ means any bond which would be described in subsection (a) if only empowerment zones designated under section 1391(g) were taken into account under sections 1397B and 1397C”.

6. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(7)(tI)(s116)(b)(3)(A) · 114 Stat. 2763

   Substituted · 26 U.S.C. § 1394(b)(2)

   Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(3)(A)], substituted “section 1397D” for “section 1397C” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(3)(A)], substituted “section 1397D” for “section 1397C” in introductory provisions.

   Enacted provision · exact public law section
   (7) H.R. 5662, as introduced on December 14, 2000.

7. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(7)(tI)(s116)(b)(3)(B) · 114 Stat. 2763

   Substituted · 26 U.S.C. § 1394(b)(2)(B)

   Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(3)(B)], substituted “section 1397D(a)(2)” for “section 1397C(a)(2)”

   Source evidence

   Code amendment note
   Subsec. (b)(2)(B). Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(3)(B)], substituted “section 1397D(a)(2)” for “section 1397C(a)(2)”.

   Enacted provision · exact public law section
   (7) H.R. 5662, as introduced on December 14, 2000.

8. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(7)(tI)(s116)(b)(4)(A) · 114 Stat. 2763

   Substituted · 26 U.S.C. § 1394(b)(3)

   Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(4)(A)], substituted “section 1397C” for “section 1397B” wherever appearing

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(4)(A)], substituted “section 1397C” for “section 1397B” wherever appearing.

   Enacted provision · exact public law section
   (7) H.R. 5662, as introduced on December 14, 2000.

9. 2000

   Consolidated Appropriations Act, 2001

   Pub. L. 106–554 § 1(a)(7)(tI)(s116)(b)(4)(B) · 114 Stat. 2763

   Substituted · 26 U.S.C. § 1394(b)(3)(B)(iii)

   Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(4)(B)], substituted “section 1397C(d)” for “section 1397B(d)”

   Source evidence

   Code amendment note
   Subsec. (b)(3)(B)(iii). Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(4)(B)], substituted “section 1397C(d)” for “section 1397B(d)”.

   Enacted provision · exact public law section
   (7) H.R. 5662, as introduced on December 14, 2000.

10. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tI)(s115)(a) · 114 Stat. 2763

    Amended · 26 U.S.C. § 1394(f)(3)

    Pub. L. 106–554, § 1(a)(7) [title I, § 115(a)], amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘new empowerment zone facility bond’ means any bond which would be described in subsection (a) if only empowerment zones designated under section 1391(g) were taken into account under sections 1397B and 1397C.”

    Source evidence

    Code amendment note
    Subsec. (f)(3). Pub. L. 106–554, § 1(a)(7) [title I, § 115(a)], amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘new empowerment zone facility bond’ means any bond which would be described in subsection (a) if only empowerment zones designated under section 1391(g) were taken into account under sections 1397B and 1397C.”

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

11. 2002

    Job Creation and Worker Assistance Act of 2002

    Pub. L. 107–147 title IV § 417(16) · 116 Stat. 21

    Substituted · 26 U.S.C. § 1394(c)(2)

    Pub. L. 107–147 substituted “paragraph (1)” for “subparagraph (A)”

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 107–147 substituted “paragraph (1)” for “subparagraph (A)”.

    Enacted provision · exact public law section
    (16) Section 1394(c)(2) is amended by striking “subparagraph (A)” and inserting “paragraph (1)”.

12. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 220 · 128 Stat. 4010

    Struck · 26 U.S.C. § 1394(f)

    Pub. L. 113–295, § 220(o), struck out “designated under section 1391(g)” after “empowerment zones” in heading

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 113–295, § 220(o), struck out “designated under section 1391(g)” after “empowerment zones” in heading.

    Enacted provision · exact public law section
    SEC. 220. OTHER CLERICAL CORRECTIONS. (a) Paragraph (8) of section 30B(h) is amended by striking “vehicle)., except that” and inserting “vehicle), except that”. (b) Subparagraph (A) of section 38(c)(2) is amended by striking “credit credit” and inserting “credit”. (c) Section 46 is amended by adding a comma at the end of paragraph (4). (d) Subparagraph (E) of section 50(a)(2) 26 USC 50. is amended by inserting “, 48A(b)(3), 48B(b)(3), 48C(b)(2), or 48D(b)(4)” after “in section 48(b)”. (e) Clause (i) of section 54A(d)(2)(A) is amended by striking “100 percent or more” and inserting “100 percent”. (f) Paragraph (2) of section 125(b) is amended by striking “statutory nontaxable benefits” each place it appears and inserting “qualified benefits”. (g) Paragraph (2) of section 125(h) is amended by striking “means, any” and inserting “means any”. (h) Subparagraph (F) of section 163(h)(4) is amended by striking “Veterans Administration or the Rural Housing Administration” and inserting “Department of Veterans Affairs or the Rural Housing Service”. (i) Subsection (a) of section 249 is amended by striking “1563(a)(1)” and inserting “1563(a)(1))”. (j) Paragraphs (8) and (10) of section 280F(d) are each amended by striking “subsection (a)(2)” and inserting “subsection (a)(1)”. (k) Clause (iii) of section 402A(c)(4)(E) is amended by striking “403(b)(7)(A)(i)” and inserting “403(b)(7)(A)(ii)”. (l) Section 527 is amended— (1) by striking “(2 U.S.C. 432(e))” in subsection (h)(2)(A)(i) and inserting “(52 U.S.C. 30102(e))”, and (2) by striking “(2 U.S.C. 431 et seq.)” in subsections (i)(6) and (j)(5)(A) and inserting “(52 U.S.C. 30101 et seq.)”. (m) Subsection (b) of section 858 is amended by striking “857(b)(8)” and inserting “857(b)(9)”. (n) Subparagraph (A) of section 1012(c)(2) is amended by striking “section 1012” and inserting “this section”. (o) The heading for section 1394(f) is amended by striking “Designated Under Section 1391(g)”. (p) Paragraphs (1) and (2)(A) of section 1394(f) are each amended by striking “a new empowerment zone facility bond” and inserting “an empowerment zone facility bond”. (q) Clause (i) of section 1400N(c)(3)(A) is amended by striking “section 42(d)(5)(C)(iii)” and inserting “section 42(d)(5)(B)(iii)”. (r) Subsections (e)(3)(B) and (f)(7)(B) of section 4943 are each amended by striking “January 1, 1970” and inserting “January 1, 1971”. (s) Paragraph (2) of section 4982(f) is amended by adding a comma at the end. (t) Paragraph (3) of section 6011(e) is amended by striking “shall require than” and inserting “shall require that”. (u) Subsection (b) of section 6072 is amended by striking “6011(e)(2)” and inserting “6011(c)(2)”. (v) Subsection (d) of section 6104 is amended by redesignating the second paragraph (6) (relating to disclosure of reports by the Internal Revenue Service) and third paragraph (6) (relating to application to nonexempt charitable trusts and nonexempt private foundations) as paragraphs (7) and (8), respectively. (w) Subsection (c) of section 6662A is amended by striking “section 6664(d)(2)(A)” and inserting “section 6664(d)(3)(A)”. (x) Subparagraph (FF) of section 6724(d)(2) is amended by striking “section 6050W(c)” and inserting “section 6050W(f)”. (y) Section 7122 is amended by redesignating the second subsection (f) (relating to frivolous submissions, etc.) as subsection (g). (z) Subsection (a) of section 9035 26 USC 9035. is amended by striking “section 320(b)(1)(A)” and inserting “section 315(b)(1)(A)”. (aa) Section 9802 is amended by redesignating the second subsection (f) (relating to genetic information of a fetus or embryo) as subsection (g). (bb) Paragraph (3) of section 13(e) of the Worker, Homeownership, and Business Assistance Act of 2009 26 USC 56 note. is amended by striking “subsection (d)” and inserting “subsection (c)”.

13. 2014

    Tax Technical Corrections Act of 2014

    Pub. L. 113–295 § 220(p) · 128 Stat. 4010

    Substituted · 26 U.S.C. § 1394(f)(1); 26 U.S.C. § 1394(2)(A)

    Pub. L. 113–295, § 220(p), substituted “an empowerment zone facility bond” for “a new empowerment zone facility bond”

    Source evidence

    Code amendment note
    Subsec. (f)(1), (2)(A). Pub. L. 113–295, § 220(p), substituted “an empowerment zone facility bond” for “a new empowerment zone facility bond”.

    Enacted provision · exact public law section
    (p) Paragraphs (1) and (2)(A) of section 1394(f) are each amended by striking “a new empowerment zone facility bond” and inserting “an empowerment zone facility bond”.

14. 2015

    Department of Transportation Appropriations Act, 2016

    Pub. L. 114–113 § 171(b) · 129 Stat. 2242

    1. Amended · 26 U.S.C. § 1394(b)(3)(B)(i)

       Pub. L. 114–113, § 171(b), designated existing provisions as subcl. (I)

    2. Inserted · 26 U.S.C. § 1394(b)(3)(B)(i)

       Pub. L. 114–113, § 171(b), inserted heading

    3. Substituted · 26 U.S.C. § 1394(b)(3)(B)(i)

       Pub. L. 114–113, § 171(b), substituted “Except as provided in subclause (II), references” for “References”

    4. Added · 26 U.S.C. § 1394(b)(3)(B)(i)

       Pub. L. 114–113, § 171(b), added subcl. (II)

    Source evidence

    Code amendment note
    Subsec. (b)(3)(B)(i). Pub. L. 114–113, § 171(b), designated existing provisions as subcl. (I), inserted heading, substituted “Except as provided in subclause (II), references” for “References”, and added subcl. (II).

    Enacted provision · exact public law section
    Sec. 171. None of the funds available or appropriated in this Act shall be used by the United States Department of Transportation or the United States Maritime Administration to negotiate or otherwise execute, enter into, facilitate or perform fee-for-service contracts for vessel disposal, scrapping or recycling, unless there is no qualified domestic ship recycler that will pay any sum of money to purchase and scrap or recycle a vessel owned, operated or managed by the Maritime Administration or that is part of the National Defense Reserve Fleet: Provided, That such sales offers must be consistent with the solicitation and provide that the work will be performed in a timely manner at a facility qualified within the meaning of section 3502 of Public Law 106–398: Provided further, That nothing contained herein shall affect the Maritime Administration’s authority to award contracts at least cost to the Federal Government and consistent with the requirements of 54 U.S.C. 308704, section 3502, or otherwise authorized under the Federal Acquisition Regulation.

    Effective date note
    Pub. L. 114–113, div. Q, title I, § 171(e)(2), Dec. 18, 2015, 129 Stat. 3071, provided that: “The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to bonds issued after December 31, 2015.”

15. 2015

    Department of Transportation Appropriations Act, 2016

    Pub. L. 114–113 § 171(d)(1) · 129 Stat. 2242

    Substituted · 26 U.S.C. § 1394(b)(3)(B)(iii)

    Pub. L. 114–113, § 171(d)(1), substituted “, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction” for “or an enterprise community”

    Source evidence

    Code amendment note
    Subsec. (b)(3)(B)(iii). Pub. L. 114–113, § 171(d)(1), substituted “, an enterprise community, or a qualified low-income community within an applicable nominating jurisdiction” for “or an enterprise community”.

    Enacted provision · exact public law section
    Sec. 171. None of the funds available or appropriated in this Act shall be used by the United States Department of Transportation or the United States Maritime Administration to negotiate or otherwise execute, enter into, facilitate or perform fee-for-service contracts for vessel disposal, scrapping or recycling, unless there is no qualified domestic ship recycler that will pay any sum of money to purchase and scrap or recycle a vessel owned, operated or managed by the Maritime Administration or that is part of the National Defense Reserve Fleet: Provided, That such sales offers must be consistent with the solicitation and provide that the work will be performed in a timely manner at a facility qualified within the meaning of section 3502 of Public Law 106–398: Provided further, That nothing contained herein shall affect the Maritime Administration’s authority to award contracts at least cost to the Federal Government and consistent with the requirements of 54 U.S.C. 308704, section 3502, or otherwise authorized under the Federal Acquisition Regulation.

    Effective date note
    Pub. L. 114–113, div. Q, title I, § 171(e)(2), Dec. 18, 2015, 129 Stat. 3071, provided that: “The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to bonds issued after December 31, 2015.”

16. 2015

    Department of Transportation Appropriations Act, 2016

    Pub. L. 114–113 § 171(c)(1) · 129 Stat. 2242

    Redesignated · 26 U.S.C. § 1394(b)(3)(C)

    Pub. L. 114–113, § 171(c)(1), added subpar. (C). Former subpar. (C) redesignated (D)

    Source evidence

    Code amendment note
    Subsec. (b)(3)(C). Pub. L. 114–113, § 171(c)(1), added subpar. (C). Former subpar. (C) redesignated (D).

    Enacted provision · exact public law section
    Sec. 171. None of the funds available or appropriated in this Act shall be used by the United States Department of Transportation or the United States Maritime Administration to negotiate or otherwise execute, enter into, facilitate or perform fee-for-service contracts for vessel disposal, scrapping or recycling, unless there is no qualified domestic ship recycler that will pay any sum of money to purchase and scrap or recycle a vessel owned, operated or managed by the Maritime Administration or that is part of the National Defense Reserve Fleet: Provided, That such sales offers must be consistent with the solicitation and provide that the work will be performed in a timely manner at a facility qualified within the meaning of section 3502 of Public Law 106–398: Provided further, That nothing contained herein shall affect the Maritime Administration’s authority to award contracts at least cost to the Federal Government and consistent with the requirements of 54 U.S.C. 308704, section 3502, or otherwise authorized under the Federal Acquisition Regulation.

    Effective date note
    Pub. L. 114–113, div. Q, title I, § 171(e)(2), Dec. 18, 2015, 129 Stat. 3071, provided that: “The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to bonds issued after December 31, 2015.”

17. 2015

    Department of Transportation Appropriations Act, 2016

    Pub. L. 114–113 § 171(c)(1) · 129 Stat. 2242

    1. Redesignated · 26 U.S.C. § 1394(b)(3)(D)

       Pub. L. 114–113, § 171(c)(1), (d)(2), redesignated subpar. (C) as (D)

    2. Redesignated · 26 U.S.C. § 1394(b)(3)(D)

       Pub. L. 114–113, § 171(c)(1), (d)(2), substituted “Other definitions” for “Definitions” in heading. Former subpar. (D) redesignated (E)

    Source evidence

    Code amendment note
    Subsec. (b)(3)(D). Pub. L. 114–113, § 171(c)(1), (d)(2), redesignated subpar. (C) as (D) and substituted “Other definitions” for “Definitions” in heading. Former subpar. (D) redesignated (E).

    Enacted provision · exact public law section
    Sec. 171. None of the funds available or appropriated in this Act shall be used by the United States Department of Transportation or the United States Maritime Administration to negotiate or otherwise execute, enter into, facilitate or perform fee-for-service contracts for vessel disposal, scrapping or recycling, unless there is no qualified domestic ship recycler that will pay any sum of money to purchase and scrap or recycle a vessel owned, operated or managed by the Maritime Administration or that is part of the National Defense Reserve Fleet: Provided, That such sales offers must be consistent with the solicitation and provide that the work will be performed in a timely manner at a facility qualified within the meaning of section 3502 of Public Law 106–398: Provided further, That nothing contained herein shall affect the Maritime Administration’s authority to award contracts at least cost to the Federal Government and consistent with the requirements of 54 U.S.C. 308704, section 3502, or otherwise authorized under the Federal Acquisition Regulation.

    Effective date note
    Pub. L. 114–113, div. Q, title I, § 171(e)(2), Dec. 18, 2015, 129 Stat. 3071, provided that: “The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to bonds issued after December 31, 2015.”

18. 2015

    Department of Transportation Appropriations Act, 2016

    Pub. L. 114–113 § 171(c)(2) · 129 Stat. 2242

    Added · 26 U.S.C. § 1394(b)(3)(D)(iii)

    Pub. L. 114–113, § 171(c)(2), added cl. (iii)

    Source evidence

    Code amendment note
    Subsec. (b)(3)(D)(iii). Pub. L. 114–113, § 171(c)(2), added cl. (iii).

    Enacted provision · exact public law section
    Sec. 171. None of the funds available or appropriated in this Act shall be used by the United States Department of Transportation or the United States Maritime Administration to negotiate or otherwise execute, enter into, facilitate or perform fee-for-service contracts for vessel disposal, scrapping or recycling, unless there is no qualified domestic ship recycler that will pay any sum of money to purchase and scrap or recycle a vessel owned, operated or managed by the Maritime Administration or that is part of the National Defense Reserve Fleet: Provided, That such sales offers must be consistent with the solicitation and provide that the work will be performed in a timely manner at a facility qualified within the meaning of section 3502 of Public Law 106–398: Provided further, That nothing contained herein shall affect the Maritime Administration’s authority to award contracts at least cost to the Federal Government and consistent with the requirements of 54 U.S.C. 308704, section 3502, or otherwise authorized under the Federal Acquisition Regulation.

    Effective date note
    Pub. L. 114–113, div. Q, title I, § 171(e)(2), Dec. 18, 2015, 129 Stat. 3071, provided that: “The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to bonds issued after December 31, 2015.”

19. 2015

    Department of Transportation Appropriations Act, 2016

    Pub. L. 114–113 § 171(c)(1) · 129 Stat. 2242

    Redesignated · 26 U.S.C. § 1394(b)(3)(E)

    Pub. L. 114–113, § 171(c)(1), redesignated subpar. (D) as (E)

    Source evidence

    Code amendment note
    Subsec. (b)(3)(E). Pub. L. 114–113, § 171(c)(1), redesignated subpar. (D) as (E).

    Enacted provision · exact public law section
    Sec. 171. None of the funds available or appropriated in this Act shall be used by the United States Department of Transportation or the United States Maritime Administration to negotiate or otherwise execute, enter into, facilitate or perform fee-for-service contracts for vessel disposal, scrapping or recycling, unless there is no qualified domestic ship recycler that will pay any sum of money to purchase and scrap or recycle a vessel owned, operated or managed by the Maritime Administration or that is part of the National Defense Reserve Fleet: Provided, That such sales offers must be consistent with the solicitation and provide that the work will be performed in a timely manner at a facility qualified within the meaning of section 3502 of Public Law 106–398: Provided further, That nothing contained herein shall affect the Maritime Administration’s authority to award contracts at least cost to the Federal Government and consistent with the requirements of 54 U.S.C. 308704, section 3502, or otherwise authorized under the Federal Acquisition Regulation.

    Effective date note
    Pub. L. 114–113, div. Q, title I, § 171(e)(2), Dec. 18, 2015, 129 Stat. 3071, provided that: “The amendments made by subsections (b), (c), and (d) [amending this section] shall apply to bonds issued after December 31, 2015.”

20. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 div. U title IV § 401(a)(195) · 132 Stat. 348

    Substituted · 26 U.S.C. § 1394(b)(3)(B)(i)(II)

    Pub. L. 115–141 substituted “subsections” for “subsection”

    Source evidence

    Code amendment note
    Subsec. (b)(3)(B)(i)(II). Pub. L. 115–141 substituted “subsections” for “subsection”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

24 of 24 references resolved to an enrolled provision