### Question
How is the "qualified business" defined?


### Answer
The term **qualified business** is defined in *26 U.S.C. § 1400U* as follows -

> any trade or business except that—


(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and


(B) such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B)

#### Citation:
  - *26 U.S.C. § 1400U*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter Y-Short-Term Regional Benefits > PART III-RECOVERY ZONE BONDS**

