View all text of Subpart C [§ 1397B - § 1397B]
§ 1397B. Nonrecognition of gain on rollover of empowerment zone investments
(a) Nonrecognition of gain
In the case of any sale of a qualified empowerment zone asset held by the taxpayer for more than 1 year and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds—
(1) the cost of any qualified empowerment zone asset (with respect to the same zone as the asset sold) purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by
(2) any portion of such cost previously taken into account under this section.
(b) Definitions and special rules
For purposes of this section—
(1) Qualified empowerment zone asset
(A) In general
The term “qualified empowerment zone asset” means any property which would be a qualified community asset (as defined in section 1400F) 1
1 See References in Text note below.
if in section 1400F 1—(i) references to empowerment zones were substituted for references to renewal communities,
(ii) references to enterprise zone businesses (as defined in section 1397C) were substituted for references to renewal community businesses,
(iii) the date of the enactment of this paragraph were substituted for “December 31, 2001” each place it appears, and
(iv) the day after the date set forth in section 1391(d)(1)(A)(i) were substituted for “January 1, 2010” each place it appears.
(B) References
(2) Certain gain not eligible for rollover
This section shall not apply to—
(A) any gain which is treated as ordinary income for purposes of this subtitle, and
(B) any gain which is attributable to real property, or an intangible asset, which is not an integral part of an enterprise zone business.
(3) Purchase
(4) Basis adjustments
(5) Holding period
(c) Termination
(Added Pub. L. 106–554, § 1(a)(7) [title I, § 116(a)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–602; amended Pub. L. 113–295, div. A, title II, § 206(c), Dec. 19, 2014, 128 Stat. 4027; Pub. L. 115–141, div. U, title IV, § 401(d)(4)(B)(vii), (5)(B)(iv), (v), Mar. 23, 2018, 132 Stat. 1209, 1210; Pub. L. 116–260, div. EE, title I, § 118(c), Dec. 27, 2020, 134 Stat. 3051.)