26 U.S.C. § 45P

Current through P.L. 118-47 (published on www.congress.gov on 03/23/2024)

Section 45P - Employer wage credit for employees who are active duty members of the uniformed services

(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.

(b) Definitions

For purposes of this section-

(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.

(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.

(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.

(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.

(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-

(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

(2) the 2 succeeding taxable years.

(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.

26 U.S.C. § 45P

Added Pub. L. 110-245, title I, §111(a), June 17, 2008, 122 Stat. 1634; amended Pub. L. 111-312, title VII, §736(a), Dec. 17, 2010, 124 Stat. 3318; Pub. L. 112-240, title III, §308(a), Jan. 2, 2013, 126 Stat. 2329; Pub. L. 113-295, div. A, title I, §118(a), Dec. 19, 2014, 128 Stat. 4015; Pub. L. 114-113, div. Q, title I, §122(a), (b), Dec. 18, 2015, 129 Stat. 3052.

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, title III, §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, title VII, §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.