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26 USC § 1397A - Increase in expensing under section 179 

---
identifier: "/us/usc/t26/s1397A"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 1397A - Increase in expensing under section 179"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "1397A"
section_name: "Increase in expensing under section 179"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "U"
subchapter_name: "Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas"
part_number: "III"
part_name: "ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONES"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 552; amended Pub. L. 105–34, title IX, § 952(c), Aug. 5, 1997, 111 Stat. 887; Pub. L. 106–554, § 1(a)(7) [title I, § 114(a), (b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–601; Pub. L. 116–260, div. EE, title I, § 118(b), Dec. 27, 2020, 134 Stat. 3051.)"
---

# § 1397A. Increase in expensing under section 179

**(a)** **General rule** In the case of an enterprise zone business, for purposes of section 179—

**(1)** the limitation under section 179(b)(1) shall be increased by the lesser of—

**(A)** $35,000, or

**(B)** the cost of section 179 property which is qualified zone property placed in service during the taxable year, and

**(2)** the amount taken into account under section 179(b)(2) with respect to any section 179 property which is qualified zone property shall be 50 percent of the cost thereof.

**(b)** **Recapture** Rules similar to the rules under section 179(d)(10) shall apply with respect to any qualified zone property which ceases to be used in an empowerment zone by an enterprise zone business.

**(c)** **Termination** December 31, 2020

This section shall not apply to any property placed in service in taxable years beginning after .

---

**Source Credit**: (Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 552; amended Pub. L. 105–34, title IX, § 952(c), Aug. 5, 1997, 111 Stat. 887; Pub. L. 106–554, § 1(a)(7) [title I, § 114(a), (b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–601; Pub. L. 116–260, div. EE, title I, § 118(b), Dec. 27, 2020, 134 Stat. 3051.)

## Editorial Notes

### Amendments

2020—Subsec. (c).  added subsec. (c).

2000—Subsec. (a)(1)(A). , substituted “$35,000” for “$20,000”.

Subsec. (c). , struck out heading and text of subsec. (c). Text read as follows: “For purposes of this section, qualified zone property shall not include any property substantially all of the use of which is in any parcel described in section 1391(g)(3)(A)(iii).”

1997—Subsec. (c).  added subsec. (c).

## Statutory Notes and Related Subsidiaries

### Effective Date 2020 Amendment

Amendment by  applicable to taxable years beginning after , see , set out as a note under .

### Effective Date of 2000 Amendment

> “The amendments made by this section [amending this section] shall apply to taxable years beginning after
> 
> .”

, , , 2763A–601, provided that: