# 26 U.S.C. § 52: Special rules Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 52(a)(1). ## § 52(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— **§ 52(a)(1)** “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in section 1563(a)(1), and **§ 52(a)(2)** the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. ## § 52(b) Employees of partnerships, proprietorships, etc., which are under common control For purposes of this subpart, under regulations prescribed by the Secretary— **§ 52(b)(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 **§ 52(b)(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). ## § 52(c) Tax-exempt organizations **§ 52(c)(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. **§ 52(c)(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). ## § 52(d) Estates and trusts In the case of an estate or trust— **§ 52(d)(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 **§ 52(d)(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. ## § 52(e) Limitations with respect to certain persons Under regulations prescribed by the Secretary, in the case of— **§ 52(e)(1)** a regulated investment company or a real estate investment trust subject to taxation under subchapter M (section 851 and following), and **§ 52(e)(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. ## Regulations - [Treas. Reg. § 1.52-1](/26/reg/1.52-1.md): Trades or businesses that are under common control. (interprets § 52) - [Treas. Reg. § 1.52-2](/26/reg/1.52-2.md): Adjustments for acquisitions and dispositions. (interprets § 52) - [Treas. Reg. § 1.52-3](/26/reg/1.52-3.md): Limitations with respect to certain persons. (interprets § 52) ## Final rules - [89 FR 106848](https://www.federalregister.gov/documents/2024/12/30/2024-29480/revising-consolidated-return-regulations-and-controlled-group-of-corporations-regulations-to-reflect) (2024): Revising Consolidated Return Regulations and Controlled Group of Corporations Regulations to Reflect Statutory Changes, Modernize Language, and Enhance Clarity ## Connections Cites: § 38 General business credit; § 46 Amount of credit; § 51 Amount of credit; § 521 Exemption of farmers’ cooperatives from tax; § 851 Definition of regulated investment company; § 1381 Organizations to which part applies; § 1563 Definitions and special rules; § 3111 Rate of tax Cited by: § 30B Alternative motor vehicle credit; § 40 Alcohol, etc., used as fuel; § 40A Biodiesel and renewable diesel used as fuel; § 41 Credit for increasing research activities; § 42 Low-income housing credit; § 44 Expenditures to provide access to disabled individuals; § 45 Electricity produced from certain renewable resources, etc.; § 45A Indian employment credit; § 45E Small employer pension plan startup costs; § 45F Employer-provided child care credit; § 45K Credit for producing fuel from a nonconventional source; § 45P Employer wage credit for employees who are active duty members of the uniformed services; § 45R Employee health insurance expenses of small employers; § 45X Advanced manufacturing production credit; § 45Y Clean electricity production credit; § 45Z Clean fuel production credit; § 51 Amount of credit; § 59 Other definitions and special rules; § 59A Tax on base erosion payments of taxpayers with substantial gross receipts; § 101 Certain death benefits; § 125 Cafeteria plans; § 167 Depreciation; § 199A Qualified business income; § 264 Certain amounts paid in connection with insurance contracts; § 280C Certain expenses for which credits are allowable; § 448 Limitation on use of cash method of accounting; § 453A Special rules for nondealers; § 465 Deductions limited to amount at risk; § 474 Simplified dollar-value LIFO method for certain small businesses; § 856 Definition of real estate investment trust; § 1355 Definitions and special rules; § 1397 Other definitions and special rules; § 3134 Employee retention credit for employers subject to closure due to COVID–19; § 4182 Exemptions; § 5000 Certain group health plans; § 6053 Reporting of tips; § 9701 Definitions of general applicability; § 9704 Liability of assigned operators ## Amendments - 1977-05-23: [Pub. L. 95-30](/26/act/95-30.md), 91 Stat. 143 - 1978-11-06: [Pub. L. 95-600](/26/act/95-600.md), 92 Stat. 2835 - 1980-04-01: [Pub. L. 96-222](/26/act/96-222.md), 94 Stat. 209 - 1982-10-19: [Pub. L. 97-354](/26/act/97-354.md), 96 Stat. 1693 - 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 838 - 1990-11-05: [Pub. L. 101-508](/26/act/101-508.md), 104 Stat. 1388 - 1996-08-20: [Pub. L. 104-188](/26/act/104-188.md), 110 Stat. 1856 - 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 1087 - 2011-11-21: [Pub. L. 112-56](/26/act/112-56.md), 125 Stat. 730