Amended 1978, 1980, 1982
- 1982 Pub. L. 97-354 Pub. L. 97–354 struck out subsec. (d) relating to apportionment of credit among shareholders, and redesignated subsecs. (e) and (f) as (d) and (e), respectively.
- 1980 Pub. L. 96-222 Pub. L. 96–222 substituted “subsections (e) and (h) of section 46” for “section 46(e)”.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(A), redesignated subsecs. (f) to (h) as (d) to (f), respectively.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(A)(i), struck out subsec. (i) which related to a $50,000 limitation in the case of married individuals filing separate returns.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(A)(i), struck out subsec. (j) which related to certain short taxable years.
Final rules 1
(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—
Amended 1978, 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 474(p)(4), 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”.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(B), substituted “proportionate share of the wages” for “proportionate contribution to the increase in unemployment insurance wages”.
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(1) “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in section 1563(a)(1), and
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(2) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563.
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(b) Employees of partnerships, proprietorships, etc., which are under common control For purposes of this subpart, under regulations prescribed by the Secretary—
Amended 1978
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(B), substituted “proportionate share of the wages” for “proportionate contribution to the increase in unemployment insurance wages”.
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(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.
Amended 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 474(p)(5), substituted “the credit (if any) determined under section 51(a)” for “the credit (if any) allowable by section 44B”.
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
Amended 1978, 1984, 1997, 2011
- 2011 Pub. L. 112-56 Pub. L. 112–56 designated existing provisions as par. (1), inserted heading, and added par. (2).
- 1997 Pub. L. 105-34 Pub. L. 105–34 substituted “work opportunity credit” for “targeted jobs credit”.
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 474(p)(6), 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”.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(A), struck out subsec. (c) which related to dispositions by an employer, and redesignated subsecs. (d) and (f) as (c) and (d), respectively.
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(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—
Amended 1978, 1982
- 1982 Pub. L. 97-354 Pub. L. 97–354 struck out subsec. (d) relating to apportionment of credit among shareholders, and redesignated subsecs. (e) and (f) as (d) and (e), respectively.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(A), struck out subsec. (c) which related to dispositions by an employer, and redesignated subsecs. (d) and (f) as (c) and (d), respectively.
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(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
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(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.
Amended 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 474(p)(7), substituted “, subject to section 38(c), a credit under section 38(a)” for “, subject to section 53 a credit under section 44B”.
(e) Limitations with respect to certain persons Under regulations prescribed by the Secretary, in the case of—
Amended 1978, 1982, 1990, 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188 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,”.
- 1990 Pub. L. 101-508 Pub. L. 101–508 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.
- 1982 Pub. L. 97-354 Pub. L. 97–354 struck out subsec. (d) relating to apportionment of credit among shareholders, and redesignated subsecs. (e) and (f) as (d) and (e), respectively.
- 1978 Pub. L. 95-600 Pub. L. 95–600, § 321(c)(1)(A), (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.
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(1) a regulated investment company or a real estate investment trust subject to taxation under subchapter M (section 851 and following), and
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188 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,”.
(2) a cooperative organization described in section 1381(a),
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188 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,”.
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.