republic-os/legal/us/code/title-26/chapter-1/section-45p.md

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type	title	description	jurisdiction	corpus	kind	title_number	title_name	chapter_number	chapter_name	section	citation	status	release_point	release_date	source	source_url	source_identifier	source_file	source_hash	raw_snapshot_hash	text_hash	retrieved_at	confidence	tags
LegalText	26 U.S.C. § 45P	Employer wage credit for employees who are active duty members of the uniformed services	us	united_states_code	code_section	26	INTERNAL REVENUE CODE	1	NORMAL TAXES AND SURTAXES	45P	26 U.S.C. § 45P	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip	/us/usc/t26/s45P	data/legal/raw/us/code/title-26/usc26.xml	2a9c689b1468f12a3d0829791eb7fc24b019a49c88c89ef8cb0f5fbea1d1f851	a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4	1ba28b95f388c4114dbf9081258dad27d0c23f7ae278c2c7d22e171c5dbd4c82	2026-07-04	official	legal us-code

26 U.S.C. § 45P - Employer wage credit for employees who are active duty members of the uniformed services

Text

(a) General rule For purposes of section 38, the differential wage payment credit for any taxable year is an amount equal to 20 percent of the sum of the eligible differential wage payments for each of the qualified employees of the taxpayer during such taxable year.

(b) Definitions For purposes of this section—

(1) Eligible differential wage payments The term “eligible differential wage payments” means, with respect to each qualified employee, so much of the differential wage payments (as defined in section 3401(h)(2)) paid to such employee for the taxable year as does not exceed $20,000.

(2) Qualified employee The term “qualified employee” means a person who has been an employee of the taxpayer for the 91-day period immediately preceding the period for which any differential wage payment is made.

(3) Controlled groups All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.

(c) Coordination with other credits The amount of credit otherwise allowable under this chapter with respect to compensation paid to any employee shall be reduced by the credit determined under this section with respect to such employee.

(d) Disallowance for failure to comply with employment or reemployment rights of members of the reserve components of the Armed Forces of the United States No credit shall be allowed under subsection (a) to a taxpayer for—

(1) any taxable year, beginning after the date of the enactment of this section, in which the taxpayer is under a final order, judgment, or other process issued or required by a district court of the United States under section 4323 of title 38 of the United States Code with respect to a violation of chapter 43 of such title, and

(2) the 2 succeeding taxable years.

(e) Certain rules to apply For purposes of this section, rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.

(Added Pub. L. 110–245, title I, § 111(a), June 17, 2008, 122 Stat. 1634; amended Pub. L. 111–312, title VII, § 736(a), Dec. 17, 2010, 124 Stat. 3318; Pub. L. 112–240, title III, § 308(a), Jan. 2, 2013, 126 Stat. 2329; Pub. L. 113–295, div. A, title I, § 118(a), Dec. 19, 2014, 128 Stat. 4015; Pub. L. 114–113, div. Q, title I, § 122(a), (b), Dec. 18, 2015, 129 Stat. 3052.)

Notes

Editorial Notes

References in TextThe date of the enactment of this section, referred to in subsec. (d)(1), is the date of the enactment of Pub. L. 110–245, which was approved June 17, 2008.

Amendments2015—Subsec. (a). Pub. L. 114–113, § 122(b)(1), struck out “, in the case of an eligible small business employer” after “section 38”. Subsec. (b)(3). Pub. L. 114–113, § 122(b)(2), amended par. (3) generally. Prior to amendment, par. (3) defined “eligible small business employer”. Subsec. (f). Pub. L. 114–113, § 122(a), struck out subsec. (f). Text read as follows: “This section shall not apply to any payments made after December 31, 2014.” 2014—Subsec. (f). Pub. L. 113–295 substituted “December 31, 2014” for “December 31, 2013”. 2013—Subsec. (f). Pub. L. 112–240 substituted “December 31, 2013” for “December 31, 2011”. 2010—Subsec. (f). Pub. L. 111–312 substituted “December 31, 2011” for “December 31, 2009”.

Statutory Notes and Related Subsidiaries

Effective Date of 2015 AmendmentPub. L. 114–113, div. Q, title I, § 122(c), Dec. 18, 2015, 129 Stat. 3052, provided that: “(1) Extension.—The amendment made by subsection (a) [amending this section] shall apply to payments made after December 31, 2014. “(2) Modification.—The amendments made by subsection (b) [amending this section] shall apply to taxable years beginning after December 31, 2015.”

Effective Date of 2014 AmendmentPub. L. 113–295, div. A, title I, § 118(b), Dec. 19, 2014, 128 Stat. 4015, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2013.”

Effective Date of 2013 AmendmentPub. L. 112–240, title III, § 308(b), Jan. 2, 2013, 126 Stat. 2329, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2011.”

Effective Date of 2010 AmendmentPub. L. 111–312, title VII, § 736(b), Dec. 17, 2010, 124 Stat. 3318, provided that: “The amendment made by this section [amending this section] shall apply to payments made after December 31, 2009.”

Effective DateSection applicable to amounts paid after June 17, 2008, see section 111(e) of Pub. L. 110–245, set out as an Effective Date of 2008 Amendment note under section 38 of this title.