26 U.S.C. § 1397A

Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)

Section 1397A - Increase in expensing under section 179

(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) $35,000, 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.

(c) Termination

This section shall not apply to any property placed in service in taxable years beginning after December 31, 2020.

26 U.S.C. § 1397A

Added Pub. L. 103-66, title XIII, §13301(a), Aug. 10, 1993, 107 Stat. 552; amended Pub. L. 105-34, title IX, §952(c), Aug. 5, 1997, 111 Stat. 887; Pub. L. 106-554, §1(a)(7)[title I, §114(a), (b)], Dec. 21, 2000, 114 Stat. 2763, 2763A-601; Pub. L. 116-260, div. EE, title I, §118(b), Dec. 27, 2020, 134 Stat. 3051.

EDITORIAL NOTES

AMENDMENTS2020-Subsec. (c). Pub. L. 116-260 added subsec. (c).2000-Subsec. (a)(1)(A). Pub. L. 106-554, §1(a)(7)[title I, §114(a)], substituted "$35,000" for "$20,000".Subsec. (c). Pub. L. 106-554, §1(a)(7)[title I, §114(b)], struck out heading and text of subsec. (c). Text read as follows: "For purposes of this section, qualified zone property shall not include any property substantially all of the use of which is in any parcel described in section 1391(g)(3)(A)(iii)." 1997-Subsec. (c). Pub. L. 105-34 added subsec. (c).

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATE 2020 AMENDMENT Amendment by Pub. L. 116-260 applicable to taxable years beginning after Dec. 31, 2020, see section 118(e) of div. EE of Pub. L. 116-260, set out as a note under section 1391 of this title.

EFFECTIVE DATE OF 2000 AMENDMENT Pub. L. 106-554, §1(a)(7)[title I, §114(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-601, provided that: "The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2001."

taxable year

The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.