§ 1397. Other definitions and special rules
(a)
Wages
For purposes of this subpart—
(2)
Certain training and educational benefits
(A)
In general
The following amounts shall be treated as wages paid to an employee:
(i)
Any amount paid or incurred by an employer which is excludable from the gross income of an employee under section
127, but only to the extent paid or incurred to a person not related to the employer.
(B)
Related person
A person is related to any other person if the person bears a relationship to such other person specified in section
267
(b) or
707
(b)(1), or such person and such other person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section
52). For purposes of the preceding sentence, in applying section
267
(b) or
707
(b)(1), “10 percent” shall be substituted for “50 percent”.
(b)
Controlled groups
For purposes of this subpart—
(1)
all employers treated as a single employer under subsection (a) or (b) of section
52 shall be treated as a single employer for purposes of this subpart, and
(2)
the credit (if any) determined under section
1396 with respect to each such employer shall be its proportionate share of the wages giving rise to such credit.