### Question
How does Term Regional Benefits define recovery zone property?


### Answer
Under *26 U.S.C. § 1400U*, **recovery zone property** is defined as:

> any property to which section 168 applies (or would apply but for section 179) if—



(A) such property was constructed, reconstructed, renovated, or acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone took effect,



(B) the original use of which in the recovery zone commences with the taxpayer, and



(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone

#### 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**

