Empowerment zone employment credit

For purposes of section 38, the amount of the empowerment zone employment credit determined under this section with respect to any employer for any taxable year is the applicable percentage of the qualified zone wages paid or incurred during the calendar year which ends with or within such taxable year. For purposes of this section, the applicable percentage is 20 percent. For purposes of this section, the term “qualified zone wages” means any wages paid or incurred by an employer for services performed by an employee while such employee is a qualified zone employee. With respect to each qualified zone employee, the amount of qualified zone wages which may be taken into account for a calendar year shall not exceed $15,000. The term “qualified zone wages” shall not include wages taken into account in determining the credit under section 51. The $15,000 amount in paragraph (2) shall be reduced for any calendar year by the amount of wages paid or incurred during such year which are taken into account in determining the credit under section 51. For purposes of this section— Except as otherwise provided in this subsection, the term “qualified zone employee” means, with respect to any period, any employee of an employer if— The term “qualified zone employee” shall not include— any individual employed by the employer in a trade or business the principal activity of which is farming (within the meaning of subparagraph (A) or (B) of section 2032A(e)(5)), but only if, as of the close of the taxable year, the sum of— Paragraph (2)(C) shall not apply to— For purposes of paragraph (2)(C), the employment relationship between the taxpayer and an employee shall not be treated as terminated—