[USC02] 26 USC 1397A: Increase in expensing under section 179
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26 USC 1397A: Increase in expensing under section 179 Text contains those laws in effect on May 20, 2019
From Title 26-INTERNAL REVENUE CODESubtitle A-Income TaxesCHAPTER 1-NORMAL TAXES AND SURTAXESSubchapter U-Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment AreasPART III-ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONESSubpart B-Additional Expensing

§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.

(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.)

Amendments

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).

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."