### Question
How is the term qualified project costs defined?


### Answer
The term **qualified project costs** is defined in *26 U.S.C. § 1400L* as the following:

> the cost of acquisition, construction, reconstruction, and renovation of—


(i) nonresidential real property and residential rental property (including fixed tenant improvements associated with such property) located in the New York Liberty Zone, and


(ii) public utility property (as defined in section 168(i)(10)) located in the New York Liberty Zone

#### Citation:
  - *26 U.S.C. § 1400L*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter Y-Short-Term Regional Benefits > PART I-TAX BENEFITS FOR NEW YORK LIBERTY ZONE**

