§ 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—
(b)
Qualified wages; qualified employee health insurance costs
For purposes of this section—
(1)
Qualified wages
(A)
In general
The term “qualified wages” means any wages paid or incurred by an employer for services performed by an employee while such employee is a qualified employee.
(B)
Coordination with work opportunity credit
The term “qualified wages” shall not include wages attributable to service rendered 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 determining the credit under section
51.
(2)
Qualified employee health insurance costs
(c)
Qualified 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,
(2)
Individuals receiving wages in excess of $30,000 not eligible
An employee shall not be treated as a qualified employee for any taxable year of the employer if the total amount of the wages paid or incurred by such employer to such employee during such taxable year (whether or not for services within an Indian reservation) exceeds the amount determined at an annual rate of $30,000.
(4)
Employment must be trade or business employment
An employee shall be treated as a qualified employee for any taxable year of the employer only if more than 50 percent of the wages paid or incurred by the employer to such employee during such taxable year are for services performed in a trade or business of the employer. Any determination as to whether the preceding sentence applies with respect to any employee for any taxable year shall be made without regard to subsection (e)(2).
(6)
Indian tribe defined
The term “Indian tribe” means any Indian tribe, band, nation, pueblo, or other organized group or community, including any Alaska Native village, or regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.
(d)
Early termination of employment by employer
(1)
In general
If the employment of any employee is terminated by the taxpayer before the day 1 year after the day on which such employee began work for the employer—
(A)
no wages (or qualified employee health insurance costs) with respect to such employee shall be taken into account under subsection (a) for the taxable year in which such employment is terminated, and
(B)
the tax under this chapter for the taxable year in which such employment is terminated shall be increased by the aggregate credits (if any) allowed under section
38
(a) for prior taxable years by reason of wages (or qualified employee health insurance costs) taken into account with respect to such employee.
(2)
Carrybacks and carryovers adjusted
In the case of any termination of employment to which paragraph (1) applies, the carrybacks and carryovers under section
39 shall be properly adjusted.
(3)
Subsection not to apply in certain cases
(A)
In general
Paragraph (1) shall not apply to—
(i)
a termination of employment of an employee who voluntarily leaves the employment of the taxpayer,
(ii)
a termination of employment of an individual who before the close of the period referred to in paragraph (1) becomes disabled to perform the services of such employment unless such disability is removed before the close of such period and the taxpayer fails to offer reemployment to such individual, or
(e)
Other definitions and special rules
For purposes of this section—
(2)
Controlled groups
(A)
All employers treated as a single employer under section (a) or (b) of section
52 shall be treated as a single employer for purposes of this section.