PUBLIC LAW 104-193—AUG. 22, 1996
110 STAT. 2127
" (B) POST-SECONDARY EDUCATIONAL EXPENSES. —The
term 'post-secondary educational expenses' means—
"(i) tuition and fees required for the enrollment
or attendance of a student at an eligible educational
institution, and
"(ii) fees, books, supplies, and equipment required
for courses of instruction at an eligible educational
institution.
"(C) QUALIFIED ACQUISITION COSTS.— The term 'qualified acquisition costs' means the costs of acquiring, constructing, or reconstructing a residence. The term includes
any usual or reasonable settlement, finsincing, or other
closing costs.
"(D) QUALIFIED BUSINESS. —The term 'qualified business' means any business that does not contravene any
law or public policy (as determined by the Secretary).
"(E) QUALIFIED BUSINESS CAPITALIZATION EXPENSES.—
The term 'qualified business capitalization expenses' mesins
qualified expenditures for the capitalization of a qualified
business pursuant to a qualified plan.
"(F) QUALIFIED EXPENDITURES.—The term 'qualified
expenditures' means expenditures included in a qualified
plan, including capital, plant, equipment, working capital,
and inventory expenses.
"(G) QUALIFIED FIRST-TIME HOMEBUYER.—
"(i) IN GENERAL.— The term 'qualified first-time
homebuyer' means a taxpayer (and, if married, the
taxpayer's spouse) who has no present ownership
interest in a principal residence during the 3-year
period ending on the date of acquisition of the principal
residence to which this subsection applies.
"(ii) DATE OF ACQUISITION.—The term 'date of
acquisition' means the date on which a binding contract
to acquire, construct, or reconstruct the principal residence to which this subparagraph applies is entered
into.
"(H) QUALIFIED PLAN. — The term 'quahfied plan' means
a business plan which—
"(i) is approved by a financial institution, or by
a nonprofit loan fund having demonstrated fiduciary
integrity,
"(ii) includes a description of services or goods
to be sold, a marketing plan, and projected financial
statements, and
"(iii) may require the eligible individual to obtain
the assistance of an experienced entrepreneurial
advisor.
"(I) QUALIFIED PRINCIPAL RESIDENCE.— The term 'qualified principal residence' means a principal residence (within
the meaning of section 1034 of the Internal Revenue Code
of 1986), the qualified acquisition costs of which do not
exceed 100 percent of the average area purchase price
applicable to such residence (determined in accordance with
paragraphs (2) and (3) of section 143(e) of such Code),
" (i) SANCTION WELFARE RECIPIENTS FOR FAILING TO ENSURE
THAT MINOR DEPENDENT CHILDREN ATTEND SCHOOL.— A State to
which a grant is made under section 403 shall not be prohibited
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