Definitions
7 rules0 of 6 subsections
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For purposes of this section—
(1) Applicable employment taxes The term “applicable employment taxes” means the following: (A) The taxes imposed under section 3111(b). (B) So much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b).
(2) Eligible employer (A) In general The term “eligible employer” means any employer— (i) which was carrying on a trade or business during the calendar quarter for which the credit is determined under subsection (a), and (ii) with respect to any calendar quarter, for which— (I) the operation of the trade or business described in clause (i) is fully or partially suspended during the calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to the coronavirus disease 2019 (COVID–19), (II) the gross receipts (within the meaning of section 448(c)) of such employer for such calendar quarter are less than 80 percent of the gross receipts of such employer for the same calendar quarter in calendar year 2019, or (III) the employer is a recovery startup business (as defined in paragraph (5)). With respect to any employer for any calendar quarter, if such employer was not in existence as of the beginning of the same calendar quarter in calendar year 2019, clause (ii)(II) shall be applied by substituting “2020” for “2019”. (B) Election to use alternative quarter At the election of the employer— (i) subparagraph (A)(ii)(II) shall be applied— (I) by substituting “for the immediately preceding calendar quarter” for “for such calendar quarter”, and (II) by substituting “the corresponding calendar quarter in calendar year 2019” for “the same calendar quarter in calendar year 2019”, and (ii) the last sentence of subparagraph (A) shall be applied by substituting “the corresponding calendar quarter in calendar year 2019” for “the same calendar quarter in calendar year 2019”. An election under this subparagraph shall be made at such time and in such manner as the Secretary shall prescribe. (C) Tax-exempt organizations In the case of an organization which is described in section 501(c) and exempt from tax under section 501(a)— (i) clauses (i) and (ii)(I) of subparagraph (A) shall apply to all operations of such organization, and (ii) any reference in this section to gross receipts shall be treated as a reference to gross receipts within the meaning of section 6033.
(3) Qualified wages (A) In general The term “qualified wages” means— (i) in the case of an eligible employer for which the average number of full-time employees (within the meaning of section 4980H) employed by such eligible employer during 2019 was greater than 500, wages paid by such eligible employer with respect to which an employee is not providing services due to circumstances described in subclause (I) or (II) of paragraph (2)(A)(ii), or (ii) in the case of an eligible employer for which the average number of full-time employees (within the meaning of section 4980H) employed by such eligible employer during 2019 was not greater than 500— (I) with respect to an eligible employer described in subclause (I) of paragraph (2)(A)(ii), wages paid by such eligible employer with respect to an employee during any period described in such clause, or (II) with respect to an eligible employer described in subclause (II) of such paragraph, wages paid by such eligible employer with respect to an employee during such quarter. (B) Special rule for employers not in existence in 2019 In the case of any employer that was not in existence in 2019, subparagraph (A) shall be applied by substituting “2020” for “2019” each place it appears. (C) Severely financially distressed employers (i) In general Notwithstanding subparagraph (A)(i), in the case of a severely financially distressed employer, the term “qualified wages” means wages paid by such employer with respect to an employee during any calendar quarter. (ii) Definition The term “severely financially distressed employer” means an eligible employer as defined in paragraph (2), determined by substituting “less than 10 percent” for “less than 80 percent” in subparagraph (A)(ii)(II) thereof. (D) Exception The term “qualified wages” shall not include any wages taken into account under sections 41, 45A, 45P, 45S, 51, 1396, 3131, and 3132.
(4) Wages (A) In general The term “wages” means wages (as defined in section 3121(a)) and compensation (as defined in section 3231(e)). For purposes of the preceding sentence, in the case of any organization or entity described in subsection (f)(2), wages as defined in section 3121(a) shall be determined without regard to paragraphs (5), (6), (7), (10), and (13) of section 3121(b) (except with respect to services performed in a penal institution by an inmate thereof). (B) Allowance for certain health plan expenses (i) In general Such term shall include amounts paid by the eligible employer to provide and maintain a group health plan (as defined in section 5000(b)(1)), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a). (ii) Allocation rules For purposes of this section, amounts treated as wages under clause (i) shall be treated as paid with respect to any employee (and with respect to any period) to the extent that such amounts are properly allocable to such employee (and to such period) in such manner as the Secretary may prescribe. Except as otherwise provided by the Secretary, such allocation shall be treated as properly made if made on the basis of being pro rata among periods of coverage.
(5) Recovery startup business The term “recovery startup business” means any employer— (A) which began carrying on any trade or business after February 15, 2020 , and (B) for which the average annual gross receipts of such employer (as determined under rules similar to the rules under section 448(c)(3)) for the 3-taxable-year period ending with the taxable year which precedes the calendar quarter for which the credit is determined under subsection (a) does not exceed $1,000,000.
(6) Other terms Any term used in this section which is also used in this chapter or chapter 22 shall have the same meaning as when used in such chapter.
The term “applicable employment taxes” means the following:
(A) The taxes imposed under section 3111(b).
(B) So much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b).
(A) In general The term “eligible employer” means any employer— (i) which was carrying on a trade or business during the calendar quarter for which the credit is determined under subsection (a), and (ii) with respect to any calendar quarter, for which— (I) the operation of the trade or business described in clause (i) is fully or partially suspended during the calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to the coronavirus disease 2019 (COVID–19), (II) the gross receipts (within the meaning of section 448(c)) of such employer for such calendar quarter are less than 80 percent of the gross receipts of such employer for the same calendar quarter in calendar year 2019, or (III) the employer is a recovery startup business (as defined in paragraph (5)). With respect to any employer for any calendar quarter, if such employer was not in existence as of the beginning of the same calendar quarter in calendar year 2019, clause (ii)(II) shall be applied by substituting “2020” for “2019”.
(B) Election to use alternative quarter At the election of the employer— (i) subparagraph (A)(ii)(II) shall be applied— (I) by substituting “for the immediately preceding calendar quarter” for “for such calendar quarter”, and (II) by substituting “the corresponding calendar quarter in calendar year 2019” for “the same calendar quarter in calendar year 2019”, and (ii) the last sentence of subparagraph (A) shall be applied by substituting “the corresponding calendar quarter in calendar year 2019” for “the same calendar quarter in calendar year 2019”. An election under this subparagraph shall be made at such time and in such manner as the Secretary shall prescribe.
(C) Tax-exempt organizations In the case of an organization which is described in section 501(c) and exempt from tax under section 501(a)— (i) clauses (i) and (ii)(I) of subparagraph (A) shall apply to all operations of such organization, and (ii) any reference in this section to gross receipts shall be treated as a reference to gross receipts within the meaning of section 6033.
(A) In general The term “qualified wages” means— (i) in the case of an eligible employer for which the average number of full-time employees (within the meaning of section 4980H) employed by such eligible employer during 2019 was greater than 500, wages paid by such eligible employer with respect to which an employee is not providing services due to circumstances described in subclause (I) or (II) of paragraph (2)(A)(ii), or (ii) in the case of an eligible employer for which the average number of full-time employees (within the meaning of section 4980H) employed by such eligible employer during 2019 was not greater than 500— (I) with respect to an eligible employer described in subclause (I) of paragraph (2)(A)(ii), wages paid by such eligible employer with respect to an employee during any period described in such clause, or (II) with respect to an eligible employer described in subclause (II) of such paragraph, wages paid by such eligible employer with respect to an employee during such quarter.
(B) Special rule for employers not in existence in 2019 In the case of any employer that was not in existence in 2019, subparagraph (A) shall be applied by substituting “2020” for “2019” each place it appears.
(C) Severely financially distressed employers (i) In general Notwithstanding subparagraph (A)(i), in the case of a severely financially distressed employer, the term “qualified wages” means wages paid by such employer with respect to an employee during any calendar quarter. (ii) Definition The term “severely financially distressed employer” means an eligible employer as defined in paragraph (2), determined by substituting “less than 10 percent” for “less than 80 percent” in subparagraph (A)(ii)(II) thereof.
(D) Exception The term “qualified wages” shall not include any wages taken into account under sections 41, 45A, 45P, 45S, 51, 1396, 3131, and 3132.
(A) In general The term “wages” means wages (as defined in section 3121(a)) and compensation (as defined in section 3231(e)). For purposes of the preceding sentence, in the case of any organization or entity described in subsection (f)(2), wages as defined in section 3121(a) shall be determined without regard to paragraphs (5), (6), (7), (10), and (13) of section 3121(b) (except with respect to services performed in a penal institution by an inmate thereof).
(B) Allowance for certain health plan expenses (i) In general Such term shall include amounts paid by the eligible employer to provide and maintain a group health plan (as defined in section 5000(b)(1)), but only to the extent that such amounts are excluded from the gross income of employees by reason of section 106(a). (ii) Allocation rules For purposes of this section, amounts treated as wages under clause (i) shall be treated as paid with respect to any employee (and with respect to any period) to the extent that such amounts are properly allocable to such employee (and to such period) in such manner as the Secretary may prescribe. Except as otherwise provided by the Secretary, such allocation shall be treated as properly made if made on the basis of being pro rata among periods of coverage.
The term “recovery startup business” means any employer—
(A) which began carrying on any trade or business after February 15, 2020 , and
(B) for which the average annual gross receipts of such employer (as determined under rules similar to the rules under section 448(c)(3)) for the 3-taxable-year period ending with the taxable year which precedes the calendar quarter for which the credit is determined under subsection (a) does not exceed $1,000,000.