---
kind: "section"
citation: "26 U.S.C. § 1393"
title: "26"
title_heading: "Internal Revenue Code"
number: "1393"
heading: "Definitions and special rules"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/1393"
units:
  - "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 I — Designation"
---

# §1393. Definitions and special rules

- (a) **In general—** For purposes of this subchapter—
  - (1) **Appropriate Secretary—** The term “appropriate Secretary” means—
    - (A) the Secretary of Housing and Urban Development in the case of any [nominated area](#a-6) which is located in an [urban area](#a-3), and
    - (B) the Secretary of Agriculture in the case of any [nominated area](#a-6) which is located in a [rural area](#a-2).
  - (2) **Rural area—** The term “rural area” means any area which is—
    - (A) outside of a metropolitan statistical area (within the meaning of [section 143(k)(2)(B)](/usc/26/143.md?p=k-2-B)), or
    - (B) determined by the Secretary of Agriculture, after consultation with the Secretary of Commerce, to be a [rural area](#a-2).
  - (3) **Urban area—** The term “urban area” means an area which is not a [rural area](#a-2).
  - (4) **Special rules for Indian reservations—**
    - (A) **In general—** No [empowerment zone](#b) or [enterprise community](#b) may include any area within an [Indian reservation](#a-4-B).
    - (B) **Indian reservation defined—** The term “Indian reservation” has the meaning given such term by [section 168(j)(6)](/usc/26/168.md?p=j-6).
  - (5) **Local government—** The term “local government” means—
    - (A) any county, city, town, township, parish, village, or other general purpose political subdivision of a State, and
    - (B) any combination of political subdivisions described in [subparagraph (A)](#a-5-A) recognized by the [appropriate Secretary](#a-1).
  - (6) **Nominated area—** The term “nominated area” means an area which is nominated by 1 or more [local governments](#a-5) and the State or States in which it is located for designation under section 1391.
  - (7) **Governments—** If more than 1 State or [local government](#a-5) seeks to nominate an area under this part, any reference to, or requirement of, this subchapter shall apply to all such governments.
  - (8) **Special rule—** An area shall be treated as nominated by a State and a [local government](#a-5) if it is nominated by an economic development corporation chartered by the State.
  - (9) **Use of census data—** Population and poverty rate shall be determined by the most recent decennial census data available.
- (b) **Empowerment zone; enterprise community—** For purposes of this title, the terms “empowerment zone” and “enterprise community” mean areas designated as such under section 1391.

## Source credit

(Added Pub. L. 103–66, title XIII, § 13301(a), Aug. 10, 1993, 107 Stat. 547.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1393, added Pub. L. 95–600, title VI, § 601(a), Nov. 6, 1978, 92 Stat. 2894; amended Pub. L. 96–595, § 3(a)(5), (6), (8), Dec. 24, 1980, 94 Stat. 3465, related to taxation of general stock ownership corporation taxable income to shareholders, prior to repeal by Pub. L. 99–514, title XIII, § 1303(a), Oct. 22, 1986, 100 Stat. 2658.