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107 STAT. 560 PUBLIC LAW 103-66—AUG. 10, 1993 credits) is amended by adding at the end thereof the following new section: *«£€. 45A. INDIAN EMPLOYMENT CREDIT. ''(a) AMOUNT OF CREDIT.—^For purposes of section 38, the amount of the Indian employment credit determined under this section with respect to any employer for any taxable year is an amount equal to 20 percent of the excess (if any) of— "(1) the sum of— "(A) the qualified wages paid or incurred during such taxable year, plus "(B) qualified employee health insurance costs paid or incurred during such taxable year, over "(2) the sum of the qualified wages and qualified employee hesdth insurance costs (determined as if this section were in effect) which were paid or incurred by the employer (or any predecessor) during calendar year 1993. "(b) QUALIFIED WAGES; QUAUFIED EMPLOYEE HEALTH INSUR- ANCE COSTS.—^For purposes of this section— "(1) QUALIFIED WAGES.— **(A) IN GENERAL.—^The term 'qiialified wages' means any wages pcdd or incurred by an employer for services performed by an employee while such employee is a quali- fied employee. **(B) COORDINATION WITH TARGETED JOBS CREDIT.—The term 'qualified wages' shall not include wages attributable to service render^ during the 1-year period beginning with the day the individual begins work for the employer if any portion of such wages is taken into account in deter- mining the credit under section 51. "(2) QUALIFIED EMPLOYEE HEALTH INSURANCE COSTS.— "(A) IN GENERAL.—^The term 'qualified employee health insurance costs' means any amount paid or incurred by an employer for health insurance to the extent such amount is attributable to coverage provided to any employee while such employee is a qualified employee. "(B) EXCEPTION FOR AMOUNTS PAID UNDER SALARY REDUCTION ARRANGEMENTS.—^No amount paid or incurred for health insurance pursuant to a salary reduction arrangement shall be taken into account imder subpara- graph (A). "(3) LIMITATION.—^The aggregate amount of qualified wages and qualified employee health insurance costs taken into account with respect to any employee for any taxable year (and for the base period under subsection (aX2)) shall not exceed $20,000. "(c) QUAUFIED EMPLOYEE.—For purposes of this section— "(1) IN GENERAL.—^Except as otherwise provided in this subsection, the term 'qualified employee' means, with respect to any period, any employee of an employer if— "(A) the employee is an enrolled member of an Indian tribe or the spouse of an enrolled member of an Indian tribe, "(B) substantially all of the services performed during such period by such employee for such employer are per- formed within an Indian reservation, and