26 U.S. Code § 1392 - Eligibility criteria
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(a) In general
A nominated area shall be eligible for designation under section 1391 only if it meets the following criteria:
The nominated area has a maximum population of—
(A) in the case of an urban area, the lesser of—
The nominated 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,
(4) Poverty rate
The poverty rate—
(B) for at least 90 percent of the population census tracts within the nominated area is not less than 25 percent, and
(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
(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:
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).
(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 (f)(2) and the assurances made pursuant to section 1391 (e)(3), and
(d) Special eligibility for nominated areas located in Alaska or Hawaii
A nominated area in Alaska or Hawaii shall be treated as meeting the requirements of paragraphs (2), (3), and (4) of subsection (a) if for each census tract or block group within such area 20 percent or more of the families have income which is 50 percent or less of the statewide median family income (as determined under section 143).
Source(Added Pub. L. 103–66, title XIII, § 13301(a),Aug. 10, 1993, 107 Stat. 545; amended Pub. L. 105–34, title IX, § 954,Aug. 5, 1997, 111 Stat. 888.)
A prior section 1392, added Pub. L. 95–600, title VI, § 601(a),Nov. 6, 1978, 92 Stat. 2893; amended Pub. L. 96–222, title I, § 106(a)(5),Apr. 1, 1980, 94 Stat. 221; Pub. L. 96–595, § 3(a)(3), (4),Dec. 24, 1980, 94 Stat. 3465, related to election by general stock ownership corporations not to be subject to taxes imposed by this chapter, prior to repeal by Pub. L. 99–514, title XIII, § 1303(a),Oct. 22, 1986, 100 Stat. 2658.
1997—Subsec. (d). Pub. L. 105–34added subsec. (d).
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