r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“recapture period” applies in that section

the term “recapture period” means the 15 taxable years beginning with the second taxable year following the taxable year in which the purchase of the principal residence for which a credit is allowed under subsection (a) was made. (g) Election to treat purchase in prior year In the case of a purchase of a principal residence after December 31, 2008 , a taxpayer may elect to treat such purchase as made on December 31 of the calendar year preceding such purchase for purposes of this section (other than subsections (b)(4), (c), (f)(4)(D), and (h)).

“applicable taxpayer” applies in that section

The term “applicable taxpayer” means, with respect to any taxable year, a taxpayer whose household income for the taxable year equals or exceeds 100 percent but does not exceed 400 percent of an amount equal to the poverty line for a family of the size involved. [(B) Repealed. Pub. L. 119–21, § 71302(a) , July 4, 2025 , 139 Stat. 322 ] (C) Married couples must file joint return If the taxpayer is married (within the meaning of section 7703) at the close of the taxable year, the taxpayer shall be treated as an applicable taxpayer only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.

“coverage month” applies in that section

The term “coverage month” means, with respect to an applicable taxpayer, any month if— (i) as of the first day of such month the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer is covered by a qualified health plan described in subsection (b)(2)(A) that was enrolled in through an Exchange established by the State under section 1311 of the Patient Protection and Affordable Care Act, and (ii) the premium for coverage under such plan for such month is paid by the taxpayer (or through advance payment of the credit under subsection (a) under section 1412 of the Patient Protection and Affordable Care Act).

“grandfathered health plan” applies in that section

The term “grandfathered health plan” has the meaning given such term by section 1251 of the Patient Protection and Affordable Care Act. (4) Special rules for qualified small employer health reimbursement arrangements (A) In general The term “coverage month” shall not include any month with respect to an employee (or any spouse or dependent of such employee) if for such month the employee is provided a qualified small employer health reimbursement arrangement which constitutes affordable coverage.

“household income” applies in that section

The term “household income” means, with respect to any taxpayer, an amount equal to the sum of— (i) the modified adjusted gross income of the taxpayer, plus (ii) the aggregate modified adjusted gross incomes of all other individuals who— (I) were taken into account in determining the taxpayer’s family size under paragraph (1), and (II) were required to file a return of tax imposed by section 1 for the taxable year. (B) Modified adjusted gross income

“minimum essential coverage” applies in that section

The term “minimum essential coverage” has the meaning given such term by section 5000A(f). (C) Special rule for employer-sponsored minimum essential coverage For purposes of subparagraph (B)— (i) Coverage must be affordable Except as provided in clause (iii), an employee shall not be treated as eligible for minimum essential coverage if such coverage— (I) consists of an eligible employer-sponsored plan (as defined in section 5000A(f)(2)), and (II) the employee’s required contribution (within the meaning of section 5000A(e)(1)(B)) with respect to the plan exceeds 9.5 percent of the applicable taxpayer’s household income.

“modified adjusted gross income” applies in that section

The term “modified adjusted gross income” means adjusted gross income increased by— (i) any amount excluded from gross income under section 911, (ii) any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax, and (iii) an amount equal to the portion of the taxpayer’s social security benefits (as defined in section 86(d)) which is not included in gross income under section 86 for the taxable year. (3) Poverty line (A) In general

“poverty line” applies in that section

The term “poverty line” has the meaning given that term in section 2110(c)(5) of the Social Security Act ( 42 U.S.C. 1397jj(c)(5) ). (B) Poverty line used In the case of any qualified health plan offered through an Exchange for coverage during a taxable year beginning in a calendar year, the poverty line used shall be the most recently published poverty line as of the 1st day of the regular enrollment period for coverage during such calendar year.

“premium assistance credit amount” applies in that section

The term “premium assistance credit amount” means, with respect to any taxable year, the sum of the premium assistance amounts determined under paragraph (2) with respect to all coverage months of the taxpayer occurring during the taxable year.

“qualified health plan” applies in that section

The term “qualified health plan” has the meaning given such term by section 1301(a) of the Patient Protection and Affordable Care Act, except that such term shall not include a qualified health plan which is a catastrophic plan described in section 1302(e) of such Act. (ii) 3 Pre-enrollment verification process required Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre-enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant’s household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.

“qualified small employer health reimbursement arrangement” applies in that section

the term “qualified small employer health reimbursement arrangement” has the meaning given such term by section 9831(d)(2). (E) Coverage for less than entire year In the case of an employee who is provided a qualified small employer health reimbursement arrangement for less than an entire year, subparagraph (C)(i)(II) shall be applied by substituting “the number of months during the year for which such arrangement was provided” for “12”. (F) Indexing In the case of plan years beginning in any calendar year after 2014, the Secretary shall adjust the 9.5 percent amount under subparagraph (C)(ii) in the same manner as the percentages are adjusted under subsection (b)(3)(A)(ii).

“unemployment compensation” applies in that section

the term “unemployment compensation” has the meaning given such term in section 85(b). (3) Evidence of unemployment compensation For purposes of this subsection, a taxpayer shall not be treated as having received (or been approved to receive) unemployment compensation for any week unless such taxpayer provides self-attestation of, and such documentation as the Secretary shall prescribe which demonstrates, such receipt or approval. (4) Clarification of rules remaining applicable (A) Joint return requirement Paragraph (1)(A) shall not affect the application of subsection (c)(1)(C).

“controlled group” applies in that section

the term “controlled group” has the meaning given to such term by section 1563(a). (C) Limitations with respect to certain persons In the case of a person described in subparagraph (A) or (B) of section 46(e)(1) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990), the $25,000 amount specified under subparagraph (B) of paragraph (1) shall equal such person’s ratable share (as determined under section 46(e)(2) (as so in effect) of such amount.

“eligible small business” applies in that section

the term “eligible small business” means, with respect to any taxable year— (i) a corporation the stock of which is not publicly traded, (ii) a partnership, or (iii) a sole proprietorship, if the average annual gross receipts of such corporation, partnership, or sole proprietorship for the 3-taxable-year period preceding such taxable year does not exceed $50,000,000. For purposes of applying the test under the preceding sentence, rules similar to the rules of paragraphs (2) and (3) of section 448(c) shall apply.

“empowerment zone employment credit” applies in that section

the term “empowerment zone employment credit” means the portion of the credit under subsection (a) which is attributable to the credit determined under section 1396 (relating to empowerment zone employment credit). [(3) Repealed. Pub. L. 115–141, div. U, title IV, § 401(d)(6)(B)(iii) , Mar. 23, 2018 , 132 Stat.

“net income tax” applies throughout its subpart

the term “net income tax” means the sum of the regular tax liability and the tax imposed by section 55, reduced by the credits allowable under subparts A and B of this part, and

“net regular tax liability” applies throughout its subpart

the term “net regular tax liability” means the regular tax liability reduced by the sum of the credits allowable under subparts A and B of this part. (2) Empowerment zone employment credit may offset 25 percent of minimum tax (A) In general In the case of the empowerment zone employment credit— (i) this section and section 39 shall be applied separately with respect to such credit, and (ii) for purposes of applying paragraph (1) to such credit— (I) 75 percent of the tentative minimum tax shall be substituted for the tentative minimum tax under subparagraph (A) thereof, and (II) the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under …

“specified credits” applies in that section

the term “specified credits” means— (i) for taxable years beginning after December 31, 2004 , the credit determined under section 40, (ii) the credit determined under section 41 for the taxable year with respect to an eligible small business (as defined in paragraph (5)(A) after application of the rules of paragraph (5)(B)), (iii) the credit determined under section 42 to the extent attributable to buildings placed in service after December 31, 2007 , (iv) the credit determined under section 45 to the extent that such credit is attributable to electricity or refined coal produced— (I) at a facility which is originally placed in service after the date of the enactment of this paragraph, and …

“alcohol” applies in that section

The term “alcohol” includes methanol and ethanol but does not include— (i) alcohol produced from petroleum, natural gas, or coal (including peat), or (ii) alcohol with a proof of less than 150. (B) Determination of proof The determination of the proof of any alcohol shall be made without regard to any added denaturants. (2) Special fuel defined

“eligible small ethanol producer” applies in that section

The term “eligible small ethanol producer” means a person who, at all times during the taxable year, has a productive capacity for alcohol (as defined in subsection (d)(1)(A) without regard to clauses (i) and (ii)) not in excess of 60,000,000 gallons. (2) Aggregation rule For purposes of the 15,000,000 gallon limitation under subsection (b)(4)(C) and the 60,000,000 gallon limitation under paragraph (1), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person.

“qualified ethanol fuel production” applies in that section

the term “qualified ethanol fuel production” means any alcohol which is ethanol which is produced by an eligible small ethanol producer, and which during the taxable year— (i) is sold by such producer to another person— (I) for use by such other person in the production of a qualified mixture in such other person’s trade or business (other than casual off-farm production), (II) for use by such other person as a fuel in a trade or business, or (III) who sells such ethanol at retail to another person and places such ethanol in the fuel tank of such other person, or (ii) is used or sold by such producer for any purpose described in clause (i).

“qualified feedstock” applies in that section

the term “qualified feedstock” means— (i) any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and (ii) any cultivated algae, cyanobacteria, or lemna. (G) Special rules for algae In the case of fuel which is derived by, or from, feedstock described in subparagraph (F)(ii) and which is sold by the taxpayer to another person for refining by such other person into a fuel which meets the requirements of subparagraph (E)(i)(II) and the refined fuel is not excluded under subparagraph (E)(iii)— (i) such sale shall be treated as described in subparagraph (C)(i), (ii) such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) and as …

“qualified mixture” applies in that section

The term “qualified mixture” means a mixture of alcohol and gasoline or of alcohol and a special fuel which— (i) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (ii) is used as a fuel by the taxpayer producing such mixture. (C) Sale or use must be in trade or business, etc. Alcohol used in the production of a qualified mixture shall be taken into account— (i) only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and (ii) for the taxable year in which such sale or use occurs.

“qualified second generation biofuel mixture” applies in that section

the term “qualified second generation biofuel mixture” means a mixture of second generation biofuel and gasoline or of second generation biofuel and a special fuel which— (i) is sold by the person producing such mixture to any person for use as a fuel, or (ii) is used as a fuel by the person producing such mixture. (E) Second generation biofuel For purposes of this paragraph— (i) In general

“qualified second generation biofuel production” applies in that section

the term “qualified second generation biofuel production” means any second generation biofuel which is produced by the taxpayer, and which during the taxable year— (i) is sold by the taxpayer to another person— (I) for use by such other person in the production of a qualified second generation biofuel mixture in such other person’s trade or business (other than casual off-farm production), (II) for use by such other person as a fuel in a trade or business, or (III) who sells such second generation biofuel at retail to another person and places such second generation biofuel in the fuel tank of such other person, or (ii) is used or sold by the taxpayer for any purpose described in clause …

“second generation biofuel” applies in that section

The term “second generation biofuel” means any liquid fuel which— (I) is derived by, or from, qualified feedstocks, and (II) meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act ( 42 U.S.C. 7545 ). (ii) Exclusion of low-proof alcohol The term “second generation biofuel” shall not include any alcohol with a proof of less than 150. The determination of the proof of any alcohol shall be made without regard to any added denaturants.

“special fuel” applies in that section

The term “special fuel” includes any liquid fuel (other than gasoline) which is suitable for use in an internal combustion engine. (3) Mixture or alcohol not used as a fuel, etc. (A) Mixtures If— (i) any credit was determined under this section with respect to alcohol used in the production of any qualified mixture, and (ii) any person— (I) separates the alcohol from the mixture, or (II) without separation, uses the mixture other than as a fuel, then there is hereby imposed on such person a tax equal to 60 cents a gallon (45 cents in the case of alcohol with a proof less than 190) for each gallon of alcohol in such mixture.

“United States” applies in that section

the term “United States” includes any possession of the United States. (7) Limitation to alcohol with connection to the United States No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph,

“agri-biodiesel” applies in that section

The term “agri-biodiesel” means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. (3) Mixture or biodiesel not used as a fuel, etc.

“biodiesel” applies in that section

The term “biodiesel” means the monoalkyl esters of long chain fatty acids derived from plant or animal matter which meet— (A) the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act ( 42 U.S.C. 7545 ), and (B) the requirements of the American Society of Testing and Materials D6751. Such term shall not include any liquid with respect to which a credit may be determined under section 40 or 40B. (2) Agri-biodiesel

“biomass” applies in that section

the term “biomass” has the meaning given such term by section 45K(c)(3). (g) Termination This section shall not apply to any sale or use after December 31, 2024 (or, in the case of the small agri-biodiesel producer credit, any sale or use after December 31, 2026 ).

“eligible small agri-biodiesel producer” applies in that section

The term “eligible small agri-biodiesel producer” means a person who, at all times during the taxable year, has a productive capacity for agri-biodiesel not in excess of 60,000,000 gallons. (2) Aggregation rule For purposes of the 15,000,000 gallon limitation under subsection (b)(4)(C) and the 60,000,000 gallon limitation under paragraph (1), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person.

“qualified agri-biodiesel production” applies in that section

the term “qualified agri-biodiesel production” means any agri-biodiesel which is produced by an eligible small agri-biodiesel producer in a manner which complies with the requirements under section 45Z(f)(1)(A)(iii), and which during the taxable year— (i) is sold by such producer to another person— (I) for use by such other person in the production of a qualified biodiesel mixture in such other person’s trade or business (other than casual off-farm production), (II) for use by such other person as a fuel in a trade or business, or (III) who sells such agri-biodiesel at retail to another person and places such agri-biodiesel in the fuel tank of such other person, or (ii) is used or sold by …

“qualified biodiesel mixture” applies in that section

The term “qualified biodiesel mixture” means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which— (i) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (ii) is used as a fuel by the taxpayer producing such mixture. (C) Sale or use must be in trade or business, etc. Biodiesel used in the production of a qualified biodiesel mixture shall be taken into account— (i) only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and (ii) for the taxable year in which such sale or use occurs.

“renewable diesel” applies throughout this title

The term “renewable diesel” means liquid fuel derived from biomass which meets— (A) the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act ( 42 U.S.C. 7545 ), and (B) the requirements of the American Society of Testing and Materials D975 or D396, or other equivalent standard approved by the Secretary. Such term shall not include any liquid with respect to which a credit may be determined under section 40. Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph,

“United States” applies in that section

the term “United States” includes any possession of the United States. (e) Definitions and special rules for small agri-biodiesel producer credit For purposes of this section— (1) Eligible small agri-biodiesel producer

“applicable material” applies in that section

The term “applicable material” means— (i) monoglycerides, diglycerides, and triglycerides, (ii) free fatty acids, and (iii) fatty acid esters. (B) Biomass

“applicable supplementary amount” applies in that section

the term “applicable supplementary amount” means, with respect to any sustainable aviation fuel, an amount equal to $0.01 for each percentage point by which the lifecycle greenhouse gas emissions reduction percentage with respect to such fuel exceeds 50 percent. In no event shall the applicable supplementary amount determined under this subsection exceed $0.50. (c) Qualified mixture For purposes of this section,

“biomass” applies in that section

The term “biomass” has the same meaning given such term in section 45K(c)(3). (e) Lifecycle greenhouse gas emissions reduction percentage For purposes of this section,

“lifecycle greenhouse gas emissions reduction percentage” applies in that section

the term “lifecycle greenhouse gas emissions reduction percentage” means, with respect to any sustainable aviation fuel, the percentage reduction in lifecycle greenhouse gas emissions achieved by such fuel as compared with petroleum-based jet fuel, as defined in accordance with— (1) the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or (2) any similar methodology which satisfies the criteria under section 211( o )(1)(H) of the Clean Air Act ( 42 U.S.C. 7545 ( o )(1)(H)), as in effect on the date of enactment of this section.

“qualified mixture” applies in that section

the term “qualified mixture” means a mixture of sustainable aviation fuel and kerosene if— (1) such mixture is produced by the taxpayer in the United States, (2) such mixture is used by the taxpayer (or sold by the taxpayer for use) in an aircraft, (3) such sale or use is in the ordinary course of a trade or business of the taxpayer, and (4) the transfer of such mixture to the fuel tank of such aircraft occurs in the United States. (d) Sustainable aviation fuel (1) In general For purposes of this section,

“sustainable aviation fuel” applies in that section

the term “sustainable aviation fuel” means liquid fuel, the portion of which is not kerosene, which— (A) meets the requirements of— (i) ASTM International Standard D7566, or (ii) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, (B) is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass, (C) is not derived from palm fatty acid distillates or petroleum, and (D) has been certified in accordance with subsection (e) as having a lifecycle greenhouse gas emissions reduction percentage of at least 50 percent. (2) Definitions In this subsection— (A) Applicable material

“base amount” applies in that section

The term “base amount” means the product of— (A) the fixed-base percentage, and (B) the average annual gross receipts of the taxpayer for the 4 taxable years preceding the taxable year for which the credit is being determined (hereinafter in this subsection referred to as the “credit year”). (2) Minimum base amount In no event shall the base amount be less than 50 percent of the qualified research expenses for the credit year.

“base period” applies in that section

The term “base period” means the 3-taxable-year period ending with the taxable year immediately preceding the 1st taxable year of the taxpayer beginning after December 31, 1983 . (C) Exclusion from incremental credit calculation For purposes of determining the amount of credit allowable under subsection (a)(1) for any taxable year, the amount of the basic research payments taken into account under subsection (a)(2)— (i) shall not be treated as qualified research expenses under subsection (a)(1)(A), and (ii) shall not be included in the computation of base amount under subsection (a)(1)(B).

“basic research” applies in that section

The term “basic research” means any original investigation for the advancement of scientific knowledge not having a specific commercial objective, except that such term shall not include— (i) basic research conducted outside of the United States, and (ii) basic research in the social sciences, arts, or humanities. (B) Base period

“basic research payment” applies in that section

The term “basic research payment” means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if— (i) such payment is pursuant to a written agreement between such corporation and such qualified organization, and (ii) such basic research is to be performed by such qualified organization. (B) Exception to requirement that research be performed by the organization In the case of a qualified organization described in subparagraph (C) or (D) of paragraph (6), clause (ii) of subparagraph (A) shall not apply. (3) Qualified organization base period amount For purposes of this subsection,

“business component” applies in that section

The term “business component” means any product, process, computer software, technique, formula, or invention which is to be— (i) held for sale, lease, or license, or (ii) used by the taxpayer in a trade or business of the taxpayer. (C) Special rule for production processes Any plant process, machinery, or technique for commercial production of a business component shall be treated as a separate business component (and not as part of the business component being produced).

“contract research expenses” applies in that section

The term “contract research expenses” means 65 percent of any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research. (B) Prepaid amounts If any contract research expenses paid or incurred during any taxable year are attributable to qualified research to be conducted after the close of such taxable year, such amount shall be treated as paid or incurred during the period during which the qualified research is conducted.

“controlled group of corporations” applies in that section

The term “controlled group of corporations” has the same meaning given to such term by section 1563(a), except that— (A) “more than 50 percent” shall be substituted for “at least 80 percent” each place it appears in section 1563(a)(1), and (B) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. (6) Energy research consortium (A) In general

“eligible small business” applies in that section

the term “eligible small business” means a small business with respect to which the taxpayer does not own (within the meaning of section 318) 50 percent or more of— (I) in the case of a corporation, the outstanding stock of the corporation (either by vote or value), and (II) in the case of a small business which is not a corporation, the capital and profits interests of the small business. (iii) Small business For purposes of this subparagraph— (I) In general

“energy research consortium” applies in that section

The term “energy research consortium” means any organization— (i) which is— (I) described in section 501(c)(3) and is exempt from tax under section 501(a) and is organized and operated primarily to conduct energy research, or (II) organized and operated primarily to conduct energy research in the public interest (within the meaning of section 501(c)(3)), (ii) which is not a private foundation, (iii) to which at least 5 unrelated persons paid or incurred during the calendar year in which the taxable year of the organization begins amounts (including as contributions) to such organization for energy research, and (iv) to which no single person paid or incurred (including as contributions) …

“Federal laboratory” applies in that section

the term “Federal laboratory” has the meaning given such term by section 4(6) of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703(6) ), as in effect on the date of the enactment of the Energy Tax Incentives Act of 2005.

“in-house research expenses” applies in that section

The term “in-house research expenses” means— (i) any wages paid or incurred to an employee for qualified services performed by such employee, (ii) any amount paid or incurred for supplies used in the conduct of qualified research, and (iii) under regulations prescribed by the Secretary, any amount paid or incurred to another person for the right to use computers in the conduct of qualified research. Clause (iii) shall not apply to any amount to the extent that the taxpayer (or any person with whom the taxpayer must aggregate expenditures under subsection (f)(1)) receives or accrues any amount from any other person for the right to use substantially identical personal property.

“maintenance-of-effort amount” applies in that section

The term “maintenance-of-effort amount” means, with respect to any taxable year, an amount equal to the excess (if any) of— (i) an amount equal to— (I) the average of the nondesignated university contributions paid by the taxpayer during the base period, multiplied by (II) the cost-of-living adjustment for the calendar year in which such taxable year begins, over (ii) the amount of nondesignated university contributions paid by the taxpayer during such taxable year. (B) Nondesignated university contributions For purposes of this paragraph,

“measurement period” applies in that section

the term “measurement period” means, with respect to the taxable year of the acquiring person for which the credit is determined, any period of the acquiring person preceding such taxable year which is taken into account for purposes of determining the credit for such year.

“minimum basic research amount” applies in that section

The term “minimum basic research amount” means an amount equal to the greater of— (i) 1 percent of the average of the sum of amounts paid or incurred during the base period for— (I) any in-house research expenses, and (II) any contract research expenses, or (ii) the amounts treated as contract research expenses during the base period by reason of this subsection (as in effect during the base period).

“nondesignated university contribution” applies in that section

the term “nondesignated university contribution” means any amount paid by a taxpayer to any qualified organization described in paragraph (6)(A)— (i) for which a deduction was allowable under section 170, and (ii) which was not taken into account— (I) in computing the amount of the credit under this section (as in effect during the base period) during any taxable year in the base period, or (II) as a basic research payment for purposes of this section.

“qualified organization” applies in that section

the term “qualified organization” means any of the following organizations: (A) Educational institutions Any educational organization which— (i) is an institution of higher education (within the meaning of section 3304(f)), and (ii) is described in section 170(b)(1)(A)(ii). (B) Certain scientific research organizations Any organization not described in subparagraph (A) which— (i) is described in section 501(c)(3) and is exempt from tax under section 501(a), (ii) is organized and operated primarily to conduct scientific research, and (iii) is not a private foundation.

“qualified organization base period amount” applies in that section

the term “qualified organization base period amount” means an amount equal to the sum of— (A) the minimum basic research amount, plus (B) the maintenance-of-effort amount. (4) Minimum basic research amount For purposes of this subsection— (A) In general

“qualified research” applies in that section

The term “qualified research” means research— (A) with respect to which expenditures are treated as domestic research or experimental expenditures under section 174A, (B) which is undertaken for the purpose of discovering information— (i) which is technological in nature, and (ii) the application of which is intended to be useful in the development of a new or improved business component of the taxpayer, and (C) substantially all of the activities of which constitute elements of a process of experimentation for a purpose described in paragraph (3). Such term does not include any activity described in paragraph (4).

“qualified research consortium” applies in that section

The term “qualified research consortium” means any organization which— (I) is described in section 501(c)(3) or 501(c)(6) and is exempt from tax under section 501(a), (II) is organized and operated primarily to conduct scientific research, and (III) is not a private foundation.

“qualified research expenses” applies in that section

The term “qualified research expenses” means the sum of the following amounts which are paid or incurred by the taxpayer during the taxable year in carrying on any trade or business of the taxpayer— (A) in-house research expenses, and (B) contract research expenses. (2) In-house research expenses (A) In general

“qualified services” applies in that section

The term “qualified services” means services consisting of— (i) engaging in qualified research, or (ii) engaging in the direct supervision or direct support of research activities which constitute qualified research. If substantially all of the services performed by an individual for the taxpayer during the taxable year consists of services meeting the requirements of clause (i) or (ii),

“qualified small business” applies in that section

The term “qualified small business” means, with respect to any taxable year— (i) a corporation or partnership, if— (I) the gross receipts (as determined under the rules of section 448(c)(3), without regard to subparagraph (A) thereof) of such entity for the taxable year is less than $5,000,000, and (II) such entity did not have gross receipts (as so determined) for any taxable year preceding the 5-taxable-year period ending with such taxable year, and (ii) any person (other than a corporation or partnership) who meets the requirements of subclauses (I) and (II) of clause (i), determined— (I) by substituting “person” for “entity” each place it appears, and (II) by only taking into account …

“small business” applies in that section

The term “small business” means, with respect to any calendar year, any person if the annual average number of employees employed by such person during either of the 2 preceding calendar years was 500 or fewer. For purposes of the preceding sentence, a preceding calendar year may be taken into account only if the person was in existence throughout the year. (II) Startups, controlled groups, and predecessors Rules similar to the rules of subparagraphs (B) and (D) of section 220(c)(4) shall apply for purposes of this clause. (iv) Federal laboratory For purposes of this subparagraph,

“supplies” applies in that section

The term “supplies” means any tangible property other than— (i) land or improvements to land, and (ii) property of a character subject to the allowance for depreciation. (D) Wages (i) In general

“wages” applies in that section

The term “wages” has the meaning given such term by section 3401(a). (ii) Self-employed individuals and owner-employees In the case of an employee (within the meaning of section 401(c)(1)),

“adjusted investor equity” applies in that section

the term “adjusted investor equity” means, with respect to any calendar year, the aggregate amount of cash taxpayers invested with respect to the project increased by the amount equal to— (I) such amount, multiplied by (II) the cost-of-living adjustment for such calendar year, determined under section 1(f)(3) by substituting the base calendar year for “calendar year 2016” in subparagraph (A)(ii) thereof. An amount shall be taken into account as an investment in the project only to the extent there was an obligation to invest such amount as of the beginning of the credit period and to the extent such amount is reflected in the adjusted basis of the project.

“applicable fraction” applies in that section

the term “applicable fraction” means the smaller of the unit fraction or the floor space fraction. (C) Unit fraction For purposes of subparagraph (B),

“applicable percentage” applies in that section

The term “applicable percentage” means, with respect to any building, the appropriate percentage prescribed by the Secretary for the earlier of— (i) the month in which such building is placed in service, or (ii) at the election of the taxpayer— (I) the month in which the taxpayer and the housing credit agency enter into an agreement with respect to such building (which is binding on such agency, the taxpayer, and all successors in interest) as to the housing credit dollar amount to be allocated to such building, or (II) in the case of any building to which subsection (h)(4)(B) applies, the month in which the tax-exempt obligations are issued.

“applicable portion” applies in that section

the term “applicable portion” means the aggregate decrease in the credits allowed to a taxpayer under section 38 for all prior taxable years which would have resulted if the eligible basis of the building were reduced by the amount of financing which does not meet requirements of paragraph (2)(D). (C) Certain rules to apply Rules similar to the rules of subparagraphs (A) and (D) of subsection (j)(4) shall apply for purposes of this subsection.

“base calendar year” applies in that section

the term “base calendar year” means the calendar year with or within which the 1st taxable year of the credit period ends. (H) Low-income portion For purposes of this paragraph, the low-income portion of a building is the portion of such building equal to the applicable fraction specified in the extended low-income housing commitment for the building. (I) Period for finding buyer The period referred to in this subparagraph is the 1-year period beginning on the date (after the 14th year of the compliance period) the taxpayer submits a written request to the housing credit agency to find a person to acquire the taxpayer’s interest in the low-income portion of the building.

“community service facility” applies in that section

the term “community service facility” means any facility designed to serve primarily individuals whose income is 60 percent or less of area median income (within the meaning of subsection (g)(1)(B)). (D) No reduction for depreciation The adjusted basis of any building shall be determined without regard to paragraphs (2) and (3) of section 1016(a). (5) Special rules for determining eligible basis (A) Federal grants not taken into account in determining eligible basis The eligible basis of a building shall not include any costs financed with the proceeds of a federally funded grant.

“compliance period” applies in that section

The term “compliance period” means, with respect to any building, the period of 15 taxable years beginning with the 1st taxable year of the credit period with respect thereto. (2) Determination of whether building is federally subsidized (A) In general Except as otherwise provided in this paragraph, for purposes of subsection (b)(1), a new building shall be treated as federally subsidized for any taxable year if, at any time during such taxable year or any prior taxable year, there is or was outstanding any obligation the interest on which is exempt from tax under section 103 the proceeds of which 1 are or were used (directly or indirectly) with respect to such building or the operation …

“constitutional home rule city” applies in that section

the term “constitutional home rule city” has the meaning given such term by section 146(d)(3)(C). (F) State may provide for different allocation Rules similar to the rules of section 146(e) (other than paragraph (2)(B) thereof) shall apply for purposes of this paragraph. (G) Population For purposes of this paragraph, population shall be determined in accordance with section 146(j).

“credit period” applies in that section

the term “credit period” means, with respect to any building, the period of 10 taxable years beginning with— (A) the taxable year in which the building is placed in service, or (B) at the election of the taxpayer, the succeeding taxable year, but only if the building is a qualified low-income building as of the close of the 1st year of such period. The election under subparagraph (B), once made, shall be irrevocable.

“difficult development areas” applies in that section

The term “difficult development areas” means any area designated by the Secretary of Housing and Urban Development as an area which has high construction, land, and utility costs relative to area median gross income. (II) Limit on areas designated The portions of metropolitan statistical areas which may be designated for purposes of this subparagraph shall not exceed an aggregate area having 20 percent of the population of such metropolitan statistical areas. A comparable rule shall apply to nonmetropolitan areas.

“existing building” applies in that section

The term “existing building” means any building which is not a new building. (6) Application to estates and trusts In the case of an estate or trust, the amount of the credit determined under subsection (a) and any increase in tax under subsection (j) shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each.

“extended low-income housing commitment” applies in that section

the term “extended low-income housing commitment” means any agreement between the taxpayer and the housing credit agency— (i) which requires that the applicable fraction (as defined in subsection (c)(1)) for the building for each taxable year in the extended use period will not be less than the applicable fraction specified in such agreement and which prohibits the actions described in subclauses (I) and (II) of subparagraph (E)(ii), (ii) which allows individuals who meet the income limitation applicable to the building under subsection (g) (whether prospective, present, or former occupants of the building) the right to enforce in any State court the requirement and prohibitions of clause …

“extended use period” applies in that section

the term “extended use period” means the period— (i) beginning on the 1st day in the compliance period on which such building is part of a qualified low-income housing project, and (ii) ending on the later of— (I) the date specified by such agency in such agreement, or (II) the date which is 15 years after the close of the compliance period.

“federally-assisted building” applies in that section

The term “federally-assisted building” means any building which is substantially assisted, financed, or operated under section 8 of the United States Housing Act of 1937, section 221(d)(3), 221(d)(4), or 236 of the National Housing Act, section 515 of the Housing Act of 1949, or any other housing program administered by the Department of Housing and Urban Development or by the Rural Housing Service of the Department of Agriculture. (ii) State-assisted building

“floor space fraction” applies in that section

the term “floor space fraction” means the fraction— (i) the numerator of which is the total floor space of the low-income units in such building, and (ii) the denominator of which is the total floor space of the residential rental units (whether or not occupied) in such building.

“housing credit agency” applies in that section

The term “housing credit agency” means any agency authorized to carry out this subsection. (B) Possessions treated as States

“low-income unit” applies in that section

The term “low-income unit” means any unit in a building if— (i) such unit is rent-restricted (as defined in subsection (g)(2)), and (ii) the individuals occupying such unit meet the income limitation applicable under subsection (g)(1) to the project of which such building is a part. (B) Exceptions (i) In general A unit shall not be treated as a low-income unit unless the unit is suitable for occupancy and used other than on a transient basis. (ii) Suitability for occupancy For purposes of clause (i), the suitability of a unit for occupancy shall be determined under regulations prescribed by the Secretary taking into account local health, safety, and building codes.

“metropolitan statistical area” applies in that section

the term “metropolitan statistical area” has the same meaning as when used in section 143(k)(2)(B), and;

“new building” applies in that section

The term “new building” means a building the original use of which begins with the taxpayer. (5) Existing building

“nonmetropolitan area” applies in that section

the term “nonmetropolitan area” means any county (or portion thereof) which is not within a metropolitan statistical area. (v) Buildings designated by State housing credit agency Any building which is designated by the State housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project shall be treated for purposes of this subparagraph as located in a difficult development area which is designated for purposes of this subparagraph.

“project period” applies in that section

the term “project period” means the period— (I) beginning with the 1st calendar year for which an allocation may be made for the 1st building placed in service as part of such project, and (II) ending with the calendar year the last building is placed in service as part of such project.

“qualified allocation plan” applies in that section

the term “qualified allocation plan” means any plan— (i) which sets forth selection criteria to be used to determine housing priorities of the housing credit agency which are appropriate to local conditions, (ii) which also gives preference in allocating housing credit dollar amounts among selected projects to— (I) projects serving the lowest income tenants, (II) projects obligated to serve qualified tenants for the longest periods, and (III) projects which are located in qualified census tracts (as defined in subsection (d)(5)(B)(ii)) and the development of which contributes to a concerted community revitalization plan, and (iii) which provides a procedure that the agency (or an agent or …

“qualified building” applies in that section

the term “qualified building” means any building which is part of a project if the taxpayer’s basis in such project (as of the date which is 1 year after the date that the allocation was made) is more than 10 percent of the taxpayer’s reasonably expected basis in such project (as of the close of the second calendar year referred to in clause (i)). Such term does not include any existing building unless a credit is allowable under subsection (e) for rehabilitation expenditures paid or incurred by the taxpayer with respect to such building for a taxable year ending during the second calendar year referred to in clause (i) or the prior taxable year.

“qualified census tract” applies in that section

The term “qualified census tract” means any census tract which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract, either in which 50 percent or more of the households have an income which is less than 60 percent of the area median gross income for such year or which has a poverty rate of at least 25 percent. If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this clause on the basis of census tracts, such Secretary shall apply this clause for such period on the basis of enumeration districts.

“qualified contract” applies in that section

the term “qualified contract” means a bona fide contract to acquire (within a reasonable period after the contract is entered into) the nonlow-income portion of the building for fair market value and the low-income portion of the building for an amount not less than the applicable fraction (specified in the extended low-income housing commitment) of— (i) the sum of— (I) the outstanding indebtedness secured by, or with respect to, the building, (II) the adjusted investor equity in the building, plus (III) other capital contributions not reflected in the amounts described in subclause (I) or (II), reduced by (ii) cash distributions from (or available for distribution from) the project.

“qualified corporation” applies in that section

the term “qualified corporation” means any corporation if 100 percent of the stock of such corporation is held by 1 or more qualified nonprofit organizations at all times during the period such corporation is in existence. (E) State may not override set-aside Nothing in subparagraph (F) of paragraph (3) shall be construed to permit a State not to comply with subparagraph (A) of this paragraph.

“qualified low-income building” applies in that section

The term “qualified low-income building” means any building— (A) which is part of a qualified low-income housing project at all times during the period— (i) beginning on the 1st day in the compliance period on which such building is part of such a project, and (ii) ending on the last day of the compliance period with respect to such building, and (B) to which the amendments made by section 201(a) of the Tax Reform Act of 1986 apply. (d) Eligible basis For purposes of this section— (1) New buildings The eligible basis of a new building is its adjusted basis as of the close of the 1st taxable year of the credit period.

“qualified low-income housing project” applies in that section

The term “qualified low-income housing project” means any project for residential rental property if the project meets the requirements of subparagraph (A), (B), or (C) whichever is elected by the taxpayer: (A) 20–50 test The project meets the requirements of this subparagraph if 20 percent or more of the residential units in such project are both rent-restricted and occupied by individuals whose income is 50 percent or less of area median gross income.

“qualified nonprofit organization” applies in that section

the term “qualified nonprofit organization” means any organization if— (i) such organization is described in paragraph (3) or (4) of section 501(c) and is exempt from tax under section 501(a), (ii) such organization is determined by the State housing credit agency not to be affiliated with or controlled by a for-profit organization, and (iii) 1 of the exempt purposes of such organization includes the fostering of low-income housing.

“qualified State” applies in that section

the term “qualified State” means, with respect to a calendar year, any State— (I) which allocated its entire State housing credit ceiling for the preceding calendar year, and (II) for which a request is made (not later than May 1 of the calendar year) to receive an allocation under clause (iii).

“rehabilitation expenditures” applies in that section

The term “rehabilitation expenditures” means amounts chargeable to capital account and incurred for property (or additions or improvements to property) of a character subject to the allowance for depreciation in connection with the rehabilitation of a building. (B) Cost of acquisition, etc., not included Such term does not include the cost of acquiring any building (or interest therein) or any amount not permitted to be taken into account under paragraph (3) or (4) of subsection (d).

“State” applies in that section

The term “State” includes a possession of the United States. (i) Definitions and special rules For purposes of this section— (1) Compliance period

“State-assisted building” applies in that section

The term “State-assisted building” means any building which is substantially assisted, financed, or operated under any State law similar in purposes to any of the laws referred to in clause (i). (7) Acquisition of building before end of prior compliance period (A) In general Under regulations prescribed by the Secretary, in the case of a building described in subparagraph (B) (or interest therein) which is acquired by the taxpayer— (i) paragraph (2)(B) shall not apply, but (ii) the credit allowable by reason of subsection (a) to the taxpayer for any period after such acquisition shall be equal to the amount of credit which would have been allowable under subsection (a) for such period to …

“supportive service” applies in that section

the term “supportive service” means any service provided under a planned program of services designed to enable residents of a residential rental property to remain independent and avoid placement in a hospital, nursing home, or intermediate care facility for the mentally or physically handicapped. In the case of a single-room occupancy unit or a building described in subsection (i)(3)(B)(iii), such term includes any service provided to assist tenants in locating and retaining permanent housing.

“unit fraction” applies in that section

the term “unit fraction” means the fraction— (i) the numerator of which is the number of low-income units in the building, and (ii) the denominator of which is the number of residential rental units (whether or not occupied) in such building. (D) Floor space fraction For purposes of subparagraph (B),

“Alaska natural gas” applies in that section

The term “Alaska natural gas” means natural gas entering the Alaska natural gas pipeline (as defined in section 168(i)(16) (determined without regard to subparagraph (B) thereof)) which is produced from a well— (i) located in the area of the State of Alaska lying north of 64 degrees North latitude, determined by excluding the area of the Alaska National Wildlife Refuge (including the continental shelf thereof within the meaning of section 638(1)), and (ii) pursuant to the applicable State and Federal pollution prevention, control, and permit requirements from such area (including the continental shelf thereof within the meaning of section 638(1)). (B) Natural gas

“GNP implicit price deflator” applies in that section

the term “GNP implicit price deflator” means the first revision of the implicit price deflator for the gross national product as computed and published by the Secretary of Commerce. Not later than April 1 of any calendar year, the Secretary shall publish the inflation adjustment factor for the preceding calendar year. (c) Qualified enhanced oil recovery costs For purposes of this section— (1) In general

“inflation adjustment factor” applies in that section

The term “inflation adjustment factor” means, with respect to any calendar year, a fraction the numerator of which is the GNP implicit price deflator for the preceding calendar year and the denominator of which is the GNP implicit price deflator for 1990. For purposes of the preceding sentence,

“natural gas” applies in that section

The term “natural gas” has the meaning given such term by section 613A(e)(2). (d) Other rules (1) Disallowance of deduction Any deduction allowable under this chapter for any costs taken into account in computing the amount of the credit determined under subsection (a) shall be reduced by the amount of such credit attributable to such costs. (2) Basis adjustments For purposes of this subtitle, if a credit is determined under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

“qualified enhanced oil recovery costs” applies in that section

The term “qualified enhanced oil recovery costs” means any of the following: (A) Any amount paid or incurred during the taxable year for tangible property— (i) which is an integral part of a qualified enhanced oil recovery project, and (ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable under this chapter. (B) Any intangible drilling and development costs— (i) which are paid or incurred in connection with a qualified enhanced oil recovery project, and (ii) with respect to which the taxpayer may make an election under section 263(c) for the taxable year.

“qualified enhanced oil recovery project” applies in that section

The term “qualified enhanced oil recovery project” means any project— (i) which involves the application (in accordance with sound engineering principles) of 1 or more tertiary recovery methods (as defined in section 193(b)(3)) which can reasonably be expected to result in more than an insignificant increase in the amount of crude oil which will ultimately be recovered, (ii) which is located within the United States (within the meaning of section 638(1)), and (iii) with respect to which the first injection of liquids, gases, or other matter commences after December 31, 1990 .

“reference price” applies in that section

the term “reference price” means, with respect to any calendar year, the reference price determined for such calendar year under section 45K(d)(2)(C). (3) Inflation adjustment (A) In general In the case of any taxable year beginning in a calendar year after 1991, there shall be substituted for the $28 amount under paragraph (1)(A) an amount equal to the product of— (i) $28, multiplied by (ii) the inflation adjustment factor for such calendar year. (B) Inflation adjustment factor

“disability” applies in that section

The term “disability” has the same meaning as when used in the Americans With Disabilities Act of 1990 (as in effect on the date of the enactment of this section). (2) Controlled groups (A) In general All members of the same controlled group of corporations (within the meaning of section 52(a)) and all persons under common control (within the meaning of section 52(b)) shall be treated as 1 person for purposes of this section. (B) Dollar limitation The Secretary shall apportion the dollar limitation under subsection (a) among the members of any group described in subparagraph (A) in such manner as the Secretary shall by regulations prescribe.

“eligible access expenditures” applies in that section

The term “eligible access expenditures” means amounts paid or incurred by an eligible small business for the purpose of enabling such eligible small business to comply with applicable requirements under the Americans With Disabilities Act of 1990 (as in effect on the date of the enactment of this section). (2) Certain expenditures included

“eligible small business” applies in that section

the term “eligible small business” means any person if— (1) either— (A) the gross receipts of such person for the preceding taxable year did not exceed $1,000,000, or (B) in the case of a person to which subparagraph (A) does not apply, such person employed not more than 30 full-time employees during the preceding taxable year, and (2) such person elects the application of this section for the taxable year. For purposes of paragraph (1)(B), an employee shall be considered full-time if such employee is employed at least 30 hours per week for 20 or more calendar weeks in the taxable year. (c) Eligible access expenditures For purposes of this section— (1) In general

“advanced nuclear facility” applies in that section

the term “advanced nuclear facility” means any nuclear facility the reactor design for which is approved in the manner described in section 45J(d)(2). (ii) Special rule For purposes of clause (i), a facility shall be deemed to have a reactor design which is approved in the manner described in section 45J(d)(2) if the Nuclear Regulatory Commission has authorized construction and issued a site-specific construction permit or combined license with respect to such facility (without regard to whether the reactor design was approved after December 31, 1993 ).

“agricultural livestock” applies in that section

The term “agricultural livestock” includes bovine, swine, poultry, and sheep. (4) Geothermal energy

“agricultural livestock waste nutrients” applies in that section

The term “agricultural livestock waste nutrients” means agricultural livestock manure and litter, including wood shavings, straw, rice hulls, and other bedding material for the disposition of manure. (ii) Agricultural livestock

“closed-loop biomass” applies in that section

The term “closed-loop biomass” means any organic material from a plant which is planted exclusively for purposes of being used at a qualified facility to produce electricity. (3) Open-loop biomass (A) In general

“coal waste sludge” applies in that section

The term “coal waste sludge” means the tar decanter sludge and related byproducts of the coking process, including such materials that have been stored in ground, in tanks and in lagoons, that have been treated as hazardous wastes under applicable Federal environmental rules absent liquefaction and processing with coal into a feedstock for the manufacture of coke. (8) Qualified hydropower production (A) In general

“eligible cooperative” applies in that section

the term “eligible cooperative” means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers. (12) Coordination with energy credit for qualified biogas property The term “qualified facility” shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(7)) if a credit is allowed under section 48 with respect to such property for the taxable year or any prior taxable year.

“energy community” applies in that section

the term “energy community” means— (i) a brownfield site (as defined in subparagraphs (A), (B), and (D)(ii)(III) of section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( 42 U.S.C.

“GDP implicit price deflator” applies in that section

The term “GDP implicit price deflator” means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year. (C) Reference price

“geothermal energy” applies in that section

The term “geothermal energy” means energy derived from a geothermal deposit (within the meaning of section 613(e)(2)). (5) Small irrigation power

“Indian coal” applies in that section

The term “Indian coal” means coal which is produced from coal reserves which, on June 14, 2005 — (i) were owned by an Indian tribe, or (ii) were held in trust by the United States for the benefit of an Indian tribe or its members. (B) Indian tribe For purposes of this paragraph,

“Indian coal production facility” applies in that section

The term “Indian coal production facility” means a facility that produces Indian coal. (11) Marine and hydrokinetic renewable energy facilities In the case of a facility producing electricity from marine and hydrokinetic renewable energy,

“Indian tribe” applies in that section

the term “Indian tribe” has the meaning given such term by section 7871(c)(3)(E)(ii). (10) Marine and hydrokinetic renewable energy (A) In general

“inflation adjustment factor” applies in that section

The term “inflation adjustment factor” means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992.

“labor hours” applies in that section

The term “labor hours”— (I) means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual employed by the taxpayer or by any contractor or subcontractor, and (II) excludes any hours worked by— (aa) foremen, (bb) superintendents, (cc) owners, or (dd) persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations). (ii) Qualified apprentice

“marine and hydrokinetic renewable energy” applies in that section

The term “marine and hydrokinetic renewable energy” means energy derived from— (i) waves, tides, and currents in oceans, estuaries, and tidal areas, (ii) free flowing water in rivers, lakes, and streams, (iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, (iv) differentials in ocean temperature (ocean thermal energy conversion), or (v) pressurized water used in a pipeline (or similar man-made water conveyance) which is operated— (I) for the distribution of water for agricultural, municipal, or industrial consumption, and (II) not …

“municipal solid waste” applies in that section

The term “municipal solid waste” has the meaning given the term “solid waste” under section 1004(27) of the Solid Waste Disposal Act ( 42 U.S.C. 6903 ), except that such term does not include paper which is commonly recycled and which has been segregated from other solid waste (as so defined). (7) Refined coal (A) In general

“open-loop biomass” applies in that section

The term “open-loop biomass” means— (i) any agricultural livestock waste nutrients, or (ii) any solid, nonhazardous, cellulosic waste material or any lignin material which is derived from— (I) any of the following forest-related resources: mill and harvesting residues, precommercial thinnings, slash, and brush, (II) solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes (other than pressure-treated, chemically-treated, or painted wood wastes), and landscape or right-of-way tree trimmings, but not including municipal solid waste, gas derived from the biodegradation of solid waste, or paper which is commonly recycled, or (III) …

“qualified apprentice” applies in that section

The term “qualified apprentice” means an individual who is employed by the taxpayer or by any contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B). (9) Domestic content bonus credit amount (A) In general In the case of any qualified facility which satisfies the requirement under subparagraph (B)(i), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (8)) shall be increased by an amount equal to 10 percent of the amount so determined.

“qualified emission reduction” applies in that section

The term “qualified emission reduction” means a reduction of at least 20 percent of the emissions of nitrogen oxide and at least 40 percent of the emissions of either sulfur dioxide or mercury released when burning the refined coal (excluding any dilution caused by materials combined or added during the production process), as compared to the emissions released when burning the feedstock coal or comparable coal predominantly available in the marketplace as of January 1, 2003 . (C) Steel industry fuel (i) In general

“qualified energy resources” applies in that section

The term “qualified energy resources” means— (A) wind, (B) closed-loop biomass, (C) open-loop biomass, (D) geothermal energy, (E) solar energy, (F) small irrigation power, (G) municipal solid waste, (H) qualified hydropower production, and (I) marine and hydrokinetic renewable energy. (2) Closed-loop biomass

“qualified facility” applies in that section

the term “qualified facility” means any facility owned by the taxpayer which is originally placed in service after December 31, 1993 , and the construction of which begins before January 1, 2025 . Such term shall not include any facility with respect to which any qualified small wind energy property expenditure (as defined in subsection (d)(4) of section 25D) is taken into account in determining the credit under such section. (2) Closed-loop biomass facility (A) In general In the case of a facility using closed-loop biomass to produce electricity,

“qualified hydropower production” applies in that section

The term “qualified hydropower production” means— (i) in the case of any hydroelectric dam which was placed in service on or before the date of the enactment of this paragraph, the incremental hydropower production for the taxable year, and (ii) in the case of any nonhydroelectric dam described in subparagraph (C), the hydropower production from the facility for the taxable year.

“reference price” applies in that section

The term “reference price” means, with respect to a calendar year, the Secretary’s determination of the annual average contract price per kilowatt hour of electricity generated from the same qualified energy resource and sold in the previous year in the United States. For purposes of the preceding sentence, only contracts entered into after December 31, 1989 , shall be taken into account.

“refined coal” applies in that section

The term “refined coal” means a fuel— (i) which— (I) is a liquid, gaseous, or solid fuel produced from coal (including lignite) or high carbon fly ash, including such fuel used as a feedstock, (II) is sold by the taxpayer with the reasonable expectation that it will be used for the purpose of producing steam, and (III) is certified by the taxpayer as resulting (when used in the production of steam) in a qualified emission reduction, or (ii) which is steel industry fuel. (B) Qualified emission reduction

“refined coal production facility” applies in that section

the term “refined coal production facility” means— (A) with respect to a facility producing steel industry fuel, any facility (or any modification to a facility) which is placed in service before January 1, 2010 , and (B) with respect to any other facility producing refined coal, any facility placed in service after the date of the enactment of the American Jobs Creation Act of 2004 and before January 1, 2012 . (9) Qualified hydropower facility (A) In general In the case of a facility producing qualified hydroelectric production described in subsection (c)(8),

“small irrigation power” applies in that section

The term “small irrigation power” means power— (A) generated without any dam or impoundment of water through an irrigation system canal or ditch, and (B) the nameplate capacity rating of which is not less than 150 kilowatts but is less than 5 megawatts. (6) Municipal solid waste

“steel industry fuel” applies in that section

The term “steel industry fuel” means a fuel which— (I) is produced through a process of liquifying coal waste sludge and distributing it on coal, and (II) is used as a feedstock for the manufacture of coke. (ii) Coal waste sludge

“Indian reservation” applies in that section

The term “Indian reservation” has the meaning given such term by section 168(j)(6). (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 …

“Indian tribe” applies in that section

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. (7) Indian reservation defined

“qualified employee” applies in that section

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 performed within an Indian reservation, and (C) the principal place of abode of such employee while performing such services is on or near the reservation in which the services are performed.

“qualified employee health insurance costs” applies in that section

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 under subparagraph (A).

“qualified wages” applies in that section

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. If any portion of wages are taken into account under subsection (e)(1)(A) of section 51, the preceding sentence shall be applied by substituting “2-year period” for “1-year period”.

“wages” applies in that section

The term “wages” has the same meaning given to such term in section 51. (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. (B) The credit (if any) determined under this section with respect to each such employer shall be its proportionate share of the wages and qualified employee health insurance costs giving rise to such credit. (3) Certain other rules made applicable Rules similar to the rules of section 51(k) and subsections (c), (d), and (e) of section 52 shall apply.

“eligible defined contribution plan” applies in that section

the term “eligible defined contribution plan” means, with respect to any eligible small employer, any defined contribution plan (as defined in section 414(i)) of such employer if, under the terms of such plan— (1) military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and (2) military spouses who are eligible to participate in such plan— (A) are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse …

“eligible small employer” applies in that section

the term “eligible small employer” means an eligible employer (as defined in section 408(p)(2)(C)(i)(I). 2 (d) Military spouse For purposes of this section— (1) In general

“military spouse” applies in that section

The term “military spouse” means, with respect to any employer, any individual who is married (within the meaning of section 7703 as of the first date that the employee is employed by the employer) to an individual who is a member of the uniformed services (as defined section 101(a)(5) of title 10 , United States Code) serving on active duty. For purposes of this section, an employer may rely on an employee’s certification that such employee’s spouse is a member of the uniformed services if such certification provides the name, rank, and service branch of such spouse.

“excess employer social security tax” applies in that section

The term “excess employer social security tax” means any tax paid by an employer under section 3111 with respect to tips received by an employee during any month, to the extent such tips— (A) are deemed to have been paid by the employer to the employee pursuant to section 3121(q) (without regard to whether such tips are reported under section 6053), and (B) exceed the amount by which the wages (excluding tips) paid by the employer to the employee during such month are less than the total amount which would be payable (with respect to such employment) at the minimum wage rate applicable to such individual under section 6(a)(1) of the Fair Labor Standards Act of 1938 (determined without …

“clinical testing” applies in that section

The term “clinical testing” means any human clinical testing— (i) which is carried out under an exemption for a drug being tested for a rare disease or condition under section 505(i) of the Federal Food, Drug, and Cosmetic Act (or regulations issued under such section), (ii) which occurs— (I) after the date such drug is designated under section 526 of such Act, and (II) before the date on which an application with respect to such drug is approved under section 505(b) of such Act or, if the drug is a biological product, before the date on which a license for such drug is issued under section 351 of the Public Health Service Act, and (iii) which is conducted by or on behalf of the taxpayer to …