### Question
How is the "area of chronic economic distress" defined?


### Answer
The term **area of chronic economic distress** is defined in *26 U.S.C. § 143* as follows -

> an area of chronic economic distress—



(i) designated by the State as meeting the standards established by the State for purposes of this subsection, and



(ii) the designation of which has been approved by the Secretary and the Secretary of Housing and Urban Development

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

