26 U.S.C. § 52 — Special rules

(a) Controlled group of corporations. All employees of corporations in the same "controlled group of corporations" are treated as employed by one single employer for this credit. Each corporation in the group gets its proportionate share of any credit tied to its own wages. Here, "controlled group of corporations" uses the normal section 1563(a) definition, but with two changes: the ownership threshold is "more than 50 percent" instead of "at least 80 percent," and two specific subsections of 1563 (about broad-based employee stock plans and certain exclusions) are ignored. (b) Employees of partnerships, proprietorships, etc., which are under common control. The Secretary must write regulations treating all employees of trades or businesses under common control — whether incorporated or not — as employed by one single employer, following principles similar to subsection (a). Each business gets its proportionate share of the credit. (c) Tax-exempt organizations. Generally, tax-exempt organizations cannot claim this credit — except for a cooperative described in section 521. (Tax-exempt organizations that hire qualified veterans may instead get a payroll-tax credit under section 3111(e).) (d) Estates and trusts. For an estate or trust, the credit is split between the estate or trust and its beneficiaries, based on how much of the entity's income is allocated to each. Any beneficiary who gets a share of the credit this way can then claim it, subject to the normal limits in section 38(c). (e) Limitations with respect to certain persons. For regulated investment companies, real estate investment trusts, and certain cooperative organizations, the Secretary must apply rules similar to older rules that existed in section 46(e) and (h) before a 1990 tax law changed them, to figure the credit amount.