Page:United States Statutes at Large Volume 107 Part 1.djvu/580

 107 STAT. 554 PUBLIC LAW 103-66 —AUG. 10, 1993 (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 busmess, and "(ii) the aggregate value of assets leased by the taxpayer which are used in such a trade or busmess, 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 mclude— "(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 piuposes 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 efiTect, "(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 qualifiea 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 efiTect, additions to basis with respect to such property in the hands of the ta»)ayer 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 (iO $5,000. "(b) SPECIAL RULES FOR SALE-LEASEBACKS. —For purposes of subsection (a)(l)(B), if property is sold and leased back by the taxpayer withhi 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.

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