26 U.S.C. § 52 | Special rules

(a)

Controlled group of corporations

For purposes of this subpart, all employees of all corporations which are members of the same controlled group of corporations shall be treated as employed by a single employer. In any such case, the credit (if any) determined under section 51(a) with respect to each such member shall be its proportionate share of the wages giving rise to such credit. For purposes of this subsection, the term “controlled group of corporations” has the meaning given to such term by section 1563(a), except that—

(1)

“more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in section 1563(a)(1), and

(2)

the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563.

(b)

Employees of partnerships, proprietorships, etc., which are under common control

For purposes of this subpart, under regulations prescribed by the Secretary—

(1)

all employees of trades or business (whether or not incorporated) which are under common control shall be treated as employed by a single employer, and

(2)

the credit (if any) determined under section 51(a) with respect to each trade or business shall be its proportionate share of the wages giving rise to such credit.

The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (a).

(c)

Tax-exempt organizations

(1)

In general

No credit shall be allowed under section 38 for any work opportunity credit determined under this subpart to any organization (other than a cooperative described in section 521) which is exempt from income tax under this chapter.

(2)

Credit made available to qualified tax-exempt organizations employing qualified veterans

For credit against payroll taxes for employment of qualified veterans by qualified tax-exempt organizations, see section 3111(e).

(d)

Estates and trusts

In the case of an estate or trust—

(1)

the amount of the credit determined under this subpart for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each, and

(2)

any beneficiary to whom any amount has been apportioned under paragraph (1) shall be allowed, subject to section 38(c), a credit under section 38(a) for such amount.

(e)

Limitations with respect to certain persons

Under regulations prescribed by the Secretary, in the case of—

(1)

a regulated investment company or a real estate investment trust subject to taxation under subchapter M (section 851 and following), and

(2)

a cooperative organization described in section 1381(a),

rules similar to the rules provided in subsections (e) and (h) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply in determining the amount of the credit under this subpart.

Pub. L. 95–30, title II, § 202(b)May 23, 197791 Stat. 143 Pub. L. 95–600, title III, § 321(c)(1)Nov. 6, 197892 Stat. 2835 Pub. L. 96–222, title I, § 103(a)(5)Apr. 1, 198094 Stat. 209 Pub. L. 97–354, § 5(a)(11)Oct. 19, 198296 Stat. 1693 Pub. L. 98–369, div. A, title IV, § 474(p)(4)July 18, 198498 Stat. 838 Pub. L. 101–508, title XI, § 11813(b)(4)Nov. 5, 1990104 Stat. 1388–551 Pub. L. 104–188, title I, § 1616(b)(2)Aug. 20, 1996110 Stat. 1856 Pub. L. 105–34, title XVI, § 1601(b)Aug. 5, 1997111 Stat. 1087 Pub. L. 112–56, title II, § 261(e)(1)Nov. 21, 2011125 Stat. 730(Added , , ; amended , , ; , , ; , , ; –(7), , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 101–508Nov. 5, 1990The date of the enactment of the Revenue Reconciliation Act of 1990, referred to in subsec. (e), is the date of enactment of , which was approved .

Amendments

Pub. L. 112–562011—Subsec. (c). designated existing provisions as par. (1), inserted heading, and added par. (2).

Pub. L. 105–341997—Subsec. (c). substituted “work opportunity credit” for “targeted jobs credit”.

Pub. L. 104–1881996—Subsec. (e)(1) to (3). redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which read as follows: “an organization to which section 593 (relating to reserves for losses on loans) applies,”.

Pub. L. 101–5081990—Subsec. (e). substituted “section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” for “section 46” in concluding provisions.

Pub. L. 98–369, § 474(p)(4)1984—Subsec. (a). , substituted “the credit (if any) determined under section 51(a) with respect to each such member” for “the credit (if any) allowable by section 44B to each such member”.

Pub. L. 98–369, § 474(p)(5)Subsec. (b)(2). , substituted “the credit (if any) determined under section 51(a)” for “the credit (if any) allowable by section 44B”.

Pub. L. 98–369, § 474(p)(6)Subsec. (c). , substituted “credit shall be allowed under section 38 for any targeted jobs credit determined under this subpart” for “credit shall be allowed under section 44B”.

Pub. L. 98–369, § 474(p)(7)Subsec. (d)(2). , substituted “, subject to section 38(c), a credit under section 38(a)” for “, subject to section 53 a credit under section 44B”.

Pub. L. 97–3541982—Subsecs. (d) to (f). struck out subsec. (d) relating to apportionment of credit among shareholders, and redesignated subsecs. (e) and (f) as (d) and (e), respectively.

Pub. L. 96–2221980—Subsec. (f). substituted “subsections (e) and (h) of section 46” for “section 46(e)”.

Pub. L. 95–600, § 321(c)(1)(B)1978—Subsecs. (a), (b). , substituted “proportionate share of the wages” for “proportionate contribution to the increase in unemployment insurance wages”.

Pub. L. 95–600, § 321(c)(1)(A)Subsecs. (c), (d). , struck out subsec. (c) which related to dispositions by an employer, and redesignated subsecs. (d) and (f) as (c) and (d), respectively.

Pub. L. 95–600, § 321(c)(1)(A)Subsec. (e). , (C), redesignated subsec. (g) as (e) and struck out par. (3) which provided that the $100,000 amount specified in section 51(d) applicable to such estate or trust be reduced to an amount which bears the same ratio to $100,000 as the portion of the credit allocable to the estate or trust under paragraph (1) bears to the entire amount of such credit. Former subsec. (e), which related to a change in status from self-employed to employee, was struck out.

Pub. L. 95–600, § 321(c)(1)(A)Subsecs. (f) to (h). , redesignated subsecs. (f) to (h) as (d) to (f), respectively.

Pub. L. 95–600, § 321(c)(1)(A)(i)Subsec. (i). , struck out subsec. (i) which related to a $50,000 limitation in the case of married individuals filing separate returns.

Pub. L. 95–600, § 321(c)(1)(A)(i)Subsec. (j). , struck out subsec. (j) which related to certain short taxable years.

Statutory Notes and Related Subsidiaries

Effective Date of 2011 Amendment

Pub. L. 112–56Nov. 21, 2011section 261(g) of Pub. L. 112–56 section 51 of this titleAmendment by applicable to individuals who begin work for the employer after , see , set out as a note under .

Effective Date of 1997 Amendment

Pub. L. 105–34 Pub. L. 104–188 section 1601(j) of Pub. L. 105–34 section 23 of this titleAmendment by effective as if included in the provisions of the Small Business Job Protection Act of 1996, , to which it relates, see , set out as a note under .

Effective Date of 1996 Amendment

Pub. L. 104–188Dec. 31, 1995section 1616(c) of Pub. L. 104–188 section 593 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 1990 Amendment

Pub. L. 101–508Dec. 31, 1990section 49(e) of this title section 46(d) of this title section 46(b)(2)(C) of this titleNov. 4, 1990section 11813(c) of Pub. L. 101–508 section 45K of this titleAmendment by applicable to property placed in service after , but not applicable to any transition property (as defined in ), any property with respect to which qualified progress expenditures were previously taken into account under , and any property described in , as such sections were in effect on , see , set out as a note under .

Effective Date of 1984 Amendment

Pub. L. 98–369Dec. 31, 1983section 475(a) of Pub. L. 98–369 section 21 of this titleAmendment by applicable to taxable years beginning after , and to carrybacks from such years, see , set out as a note under .

Effective Date of 1982 Amendment

Pub. L. 97–354Dec. 31, 1982section 6(a) of Pub. L. 97–354 section 1361 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .

Effective Date of 1980 Amendment

Pub. L. 96–222 Pub. L. 95–600 section 201 of Pub. L. 96–222 section 32 of this titleAmendment by effective, except as otherwise provided, as if it had been included in the provisions of the Revenue Act of 1978, , to which such amendment relates, see , set out as a note under .

Effective Date of 1978 Amendment

Pub. L. 95–600Dec. 31, 1978section 321(d)(1) of Pub. L. 95–600 section 51 of this titleAmendment by applicable to amounts paid or incurred after , in taxable years ending after such date, see , set out as a note under .

Effective Date

Dec. 31, 1976section 202(e) of Pub. L. 95–30 section 51 of this titleSection applicable to taxable years beginning after , and to credit carrybacks from such years, see , set out as a note under .

Savings Provision

Pub. L. 101–508Nov. 5, 1990Nov. 5, 1990section 11821(b) of Pub. L. 101–508 section 45K of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .