Empowerment Zones: Rule for Second Round Designations

This interim rule adds new regulations to govern the designation of fifteen urban areas as Empowerment Zones. This new rule is being published to implement the changes made by sections 952-954 of the Taxpayer Relief Act of 1997. That statute authorized designation of a second round of Empowerment Zones, which receive special tax benefits for area businesses. (The Act also authorized HUD to designate two additional EZs under the criteria specified for the first round, for which a separate final rule has been issued.) By specifying the new eligibility criteria to be used in designating a second round of EZs, this rule lays the foundation for designations to be made in response to applications submitted in response to the Notice Inviting Applications published elsewhere in this issue of the Federal Register.