### Question
How is the "qualified zone property" defined?


### Answer
The term **qualified zone property** is defined in *26 U.S.C. § 1397C* as follows -

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


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


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


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

#### Citation:
  - *26 U.S.C. § 1397C*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter U-Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas > PART III-ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONES > Subpart C-General Provisions**

