For purposes of section 38, the differential wage payment credit for any taxable year is an amount equal to 20 percent of the sum of the eligible differential wage payments for each of the qualified employees of the taxpayer during such taxable year.
For purposes of this section-
The term "eligible differential wage payments" means, with respect to each qualified employee, so much of the differential wage payments (as defined in section 3401(h)(2)) paid to such employee for the taxable year as does not exceed $20,000.
The term "qualified employee" means a person who has been an employee of the taxpayer for the 91-day period immediately preceding the period for which any differential wage payment is made.
All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.
The amount of credit otherwise allowable under this chapter with respect to compensation paid to any employee shall be reduced by the credit determined under this section with respect to such employee.
No credit shall be allowed under subsection (a) to a taxpayer for-
For purposes of this section, rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.
26 U.S.C. § 45P
EDITORIAL NOTES
REFERENCES IN TEXTThe date of the enactment of this section, referred to in subsec. (d)(1), is the date of the enactment of Pub. L. 110-245, which was approved June 17, 2008.
AMENDMENTS2015-Subsec. (a). Pub. L. 114-113, §122(b)(1), struck out ", in the case of an eligible small business employer" after "section 38".Subsec. (b)(3). Pub. L. 114-113, §122(b)(2), amended par. (3) generally. Prior to amendment, par. (3) defined "eligible small business employer".Subsec. (f). Pub. L. 114-113, §122(a), struck out subsec. (f). Text read as follows: "This section shall not apply to any payments made after December 31, 2014."2014-Subsec. (f). Pub. L. 113-295 substituted "December 31, 2014" for "December 31, 2013". 2013-Subsec. (f). Pub. L. 112-240 substituted "December 31, 2013" for "December 31, 2011".2010-Subsec. (f). Pub. L. 111-312 substituted "December 31, 2011" for "December 31, 2009".
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114-113, div. Q, title I, §122(c), Dec. 18, 2015, 129 Stat. 3052, provided that:"(1) EXTENSION.-The amendment made by subsection (a) [amending this section] shall apply to payments made after December 31, 2014."(2) MODIFICATION.-The amendments made by subsection (b) [amending this section] shall apply to taxable years beginning after December 31, 2015."
EFFECTIVE DATE OF 2014 AMENDMENT Pub. L. 113-295, div. A, title I, §118(b), Dec. 19, 2014, 128 Stat. 4015, provided that: "The amendment made by this section [amending this section] shall apply to payments made after December 31, 2013."
EFFECTIVE DATE OF 2013 AMENDMENT Pub. L. 112-240, §308(b), Jan. 2, 2013, 126 Stat. 2329, provided that: "The amendment made by this section [amending this section] shall apply to payments made after December 31, 2011."
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-312, §736(b), Dec. 17, 2010, 124 Stat. 3318, provided that: "The amendment made by this section [amending this section] shall apply to payments made after December 31, 2009."
EFFECTIVE DATESection applicable to amounts paid after June 17, 2008, see section 111(e) of Pub. L. 110-245, set out as an Effective Date of 2008 Amendment note under section 38 of this title.
- Armed Forces of the United States
- The term "military or naval forces of the United States" and the term "Armed Forces of the United States" each includes all regular and reserve components of the uniformed services which are subject to the jurisdiction of the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, or the Secretary of the Air Force, and each term also includes the Coast Guard. The members of such forces include commissioned officers and personnel below the grade of commissioned officers in such forces.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.