I.R.C. § 45P(a) General Rule —
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.
I.R.C. § 45P(b) Definitions —
For purposes of this section—
I.R.C. § 45P(b)(1) Eligible Differential Wage Payments —
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.
I.R.C. § 45P(b)(2) Qualified Employee —
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.
I.R.C. § 45P(b)(3) Controlled Groups —
All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.
I.R.C. § 45P(c) Coordination With Other Credits —
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.
I.R.C. § 45P(d) Disallowance For Failure To Comply With Employment Or Reemployment Rights Of Members
Of The Reserve Components Of The Armed Forces Of The United States —
No credit shall be allowed under subsection (a) to a taxpayer for—
I.R.C. § 45P(d)(1) —
any taxable year, beginning after the date of the enactment of this section, in which
the taxpayer is under a final order, judgment, or other process issued or required
by a district court of the United States under section 4323 of title 38 of the United
States Code with respect to a violation of chapter 43 of such title, and
I.R.C. § 45P(d)(2) —
the 2 succeeding taxable years.
I.R.C. § 45P(e) Certain Rules To Apply —
For purposes of this section, rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.
(Added by Pub. L. 110-245, Sec. 111(a), June 17, 2008, 122 Stat. 1624; and amended by Pub. L. 111-312, Sec. 736, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title III, Sec. 308(a), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title I, Sec. 118(a), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 122.)
BACKGROUND NOTES
AMENDMENTS
2015 - Subsec. (a). Pub. L. 114-113, Div. Q, Sec. 122(b)(1), amended subsec. (a) by striking “in the case of an eligible
small business employer,”.
Subsec. (b)(3). Pub. L. 114-113, Div. Q, Sec. 122(b)(2), amended par. (3). Before amendment, it read as follows:
“(3) Eligible Small Business Employee.—
“(A) In General.—The term “eligible small business employer” means, with respect to
any taxable year, any employer which—
“(i) employed an average of less than 50 employees on business days during such taxable
year, and
“(ii) under a written plan of the employer, provides eligible differential wage payments
to every qualified employee of the employer.
“(B) Controlled Groups.—For purposes of subparagraph (A), all persons treated as a
single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated
as a single employer.”
Subsec. (f). Pub. L. 114-113, Div. Q, Sec. 122(a), struck subsec. (f). Before being struck, it read as follows:
“(f) Termination.—This section shall not apply to any payments made after December
31, 2014.”
2014 - Subsec. (f). Pub. L. 113-295, Div. A, Sec. 118(a), amended subsec. (f) by substituting “December 31, 2014”
for “December 31, 2013”.
2013 - Subsec. (f). Pub. L. 112-240, Sec. 308(a), amended subsec. (f) by substituting “December 31, 2013”
for “December 31, 2011”.
2010 - Subsec. (f). Pub. L. 111-312, Sec. 736(a), amended subsec. (f) by substituting “December 31, 2011”
for “December 31, 2009”.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendment by Pub. L. 114-113, Div. Q, Sec. 122(a), effective for payments made after December 31, 2014.
Amendments by Pub. L. 114-113, Div. Q, Sec. 122(b), effective for taxable years beginning after December 31, 2015.
EFFECTIVE DATE OF 2014 AMENDMENT
Amendment by Pub. L. 113-295, Div. A, Sec. 118(a), effective for payments made after December 31, 2013.
EFFECTIVE DATE OF 2013 AMENDMENT
Amendment by Sec. 308 of Pub. L. 112-240 effective for payments made after December 31, 2011.
EFFECTIVE DATE OF 2010 AMENDMENT
Amendment by Sec. 736 of Pub. L. 111-312 effective for payments made after December 31, 2009.
EFFECTIVE DATE
Effective for amounts paid after the date of the enactment of this Act [Enacted:
June 17, 2008].
