Internal Revenue Code · 26 U.S.C.
§ 45P. Employer wage credit for employees who are active duty members of the uniformed services
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 45P
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- June 17, 2008 by Pub. L. 110–245
- Last amended
- December 18, 2015 by Pub. L. 114–113
- Amendments
- 4 dated changes in the source credit
- Length
- 5 subsections · 393 words · about 2 min to read
- Defines
- 2 terms
- Cross-references
- cites 4; cited by 5 Code sections and 0 other regulations
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.
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.
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.
All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.
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.
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.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 4 other sections
- § 38 General business credit
- § 3401(h)(2) Definitions
- § 414 Definitions and special rules
- § 52 Special rules
Cited by 5 Code sections
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter A Determination of Tax Liability
- Part IV CREDITS AGAINST TAX
- Subpart D Business Related Credits
Nearby sections
- § 45L New energy efficient home credit
- § 45M Repealed
- § 45N Mine rescue team training credit
- § 45O Agricultural chemicals security credit
- § 45P Employer wage credit for employees who are active duty members of the uniformed services
- § 45Q Credit for carbon oxide sequestration
- § 45R Employee health insurance expenses of small employers
- § 45S Employer credit for paid family and medical leave
- § 45T Auto-enrollment option for retirement savings options provided by small employers
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
The 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.
Amendments
2015—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 Amendment
Pub. 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 Amendment
Pub. 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 Amendment
Pub. 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 Amendment
Pub. 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 Date
Section 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.