Low-Income Community [Tax] Law and Legal Definition
According to 26 USCS § 45D [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes And Surtaxes; Subchapter A. Determination Of Tax Liability; Part IV. Credits Against Tax; Subpart D. Business Related Credits], the term "low-income community" means any population census tract if:
(A) the poverty rate for such tract is at least 20 percent, or
(B) (i) in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or
(ii) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income.
Subparagraph (B) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States.
