MODIFICATIONS TO ENTERPRISE ZONE BUSINESS DEFINITION FOR ALL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES.

SEC. 956. MODIFICATIONS TO ENTERPRISE ZONE BUSINESS DEFINITION FOR ALL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES. (a) In General.—Section 1397B (defining enterprise zone business) is amended— (1) by striking “80 percent” in subsections (b)(2) and (c)(1) and inserting “50 percent”, (2) by striking “substantially all” each place it appears in subsections (b) and (c) and inserting “a substantial portion”, (3) by striking “, and exclusively related to,” in subsections (b)(4) and (c)(3), (4) by adding at the end of subsection (d)(2) the following new flush sentence: “For purposes of subparagraph (B), the lessor of the property may rely on a lessee’s certification that such lessee is an enterprise zone business.”, (5) by striking “substantially all” in subsection (d)(3) and inserting “at least 50 percent”, and (6) by adding at the end the following new subsection: “(f) Treatment of Businesses Straddling Census Tract Lines.—For purposes of this section, if— “(1) a business entity or proprietorship uses real property located within an empowerment zone, “(2) the business entity or proprietorship also uses real property located outside the empowerment zone, “(3) the amount of real property described in paragraph (1) is substantial compared to the amount of real property described in paragraph (2), and “(4) the real property described in paragraph (2) is contiguous to part or all of the real property described in paragraph (1),111 STAT. 891 then all the services performed by employees, all business activities, all tangible property, and all intangible property of the business entity or proprietorship that occur in or is located on the real property described in paragraphs (1) and (2) shall be treated as occurring or situated in an empowerment zone.”. (b) Effective Dates.— (1) In general.—The amendments made by this section shall apply to taxable years beginning on or after the date of the enactment of this Act. (2) Special rule for enterprise zone facility bonds.—For purposes of section 1394(b) of the Internal Revenue Code of 1986, the amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.