### Question
How is the term eligible employer defined?


### Answer
The term **eligible employer** is defined in *26 U.S.C. § 1400R* as the following:

> any employer—


(i) which conducted an active trade or business on September 23, 2005, in the Rita GO Zone, and


(ii) with respect to whom the trade or business described in clause (i) is inoperable on any day after September 23, 2005, and before January 1, 2006, as a result of damage sustained by reason of Hurricane Rita

#### Citation:
  - *26 U.S.C. § 1400R*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter Y-Short-Term Regional Benefits > PART II-TAX BENEFITS FOR GO ZONES**

