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(h) less than 5 percent of the average of the aggregate unadjusted bases of the <br />property of such entity is attributable to Nonqualified Financial Property. <br />"Qualified Proprietorship" means, with respect to any taxable year, any Qualified <br />Business carried on by an individual as a proprietorship if for such year: <br />(a) at least 50 percent of the total gross income of such individual from such <br />business is derived from the active conduct of such business in the Qualified <br />Empowerment Zone; <br />(b) a Substantial Portion of the use of the. tangible property of such individual <br />in such business (whether owned or leased) is within the Qualified Empowerrrient -Zone; - <br />(c) a Substantial Portion of the intangible property of such business is used in* <br />the active conduct of such business; <br />(d) a Substantial Portion of the services performed for such individual in such <br />business. by employees of such business are performed in the Qualified Empowerment <br />Zone; <br />(e) at least 35 percent of such employees are residents of the Qualified <br />Empowerment Zone; <br />(f) less than 5 percent of the average of the aggregate unadjusted bases of the <br />property of such individual which is used in such business is attributable to collectibles <br />(as defined in Section 408(m)(2) of the Code) other than collectibles that are held <br />primarily for sale to customers in the ordinary course of such business; and <br />(g) less than 5 percent of the average of the aggregate unadjusted bases of the <br />property of such individual which is used in the such business is attributable to <br />Nonqualified Financial Property. <br />For these purposes, the term "employee" includes the proprietor. <br />"Qualified Zone Property" means any property to which Section 168 of the Code applies <br />(or would apply but for Section 179 of the Code) if <br />(a) such property was acquired by the Owner by purchase (as defined in <br />Section 179(d)(2) of the Code) after the date on which the designation of the Qualified <br />Empowerment Zone took effect; <br />(b) the Original Use of which in the Qualified Empowerment Zone <br />commences with the Owner; and <br />(c) Substantially All of the use of which is in the Qualified Empowerment <br />Zone and is in the active conduct of a Qualified Business by the Owner in the Qualified <br />Empowerment Zone. <br />06-4514.05 17 <br />