Page:United States Statutes at Large Volume 124.djvu/266

 124 STAT. 240 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘(e) OTHER RULES AND DEFINITIONS.—For purposes of this sec- tion— ‘‘(1) EMPLOYEE.— ‘‘(A) CERTAIN EMPLOYEES EXCLUDED.—The term ‘employee’ shall not include— ‘‘(i) an employee within the meaning of section 401(c)(1), ‘‘(ii) any 2-percent shareholder (as defined in sec- tion 1372(b)) of an eligible small business which is an S corporation, ‘‘(iii) any 5-percent owner (as defined in section 416(i)(1)(B)(i)) of an eligible small business, or ‘‘(iv) any individual who bears any of the relation- ships described in subparagraphs (A) through (G) of section 152(d)(2) to, or is a dependent described in section 152(d)(2)(H) of, an individual described in clause (i), (ii), or (iii). ‘‘(B) LEASED EMPLOYEES.—The term ‘employee’ shall include a leased employee within the meaning of section 414(n). ‘‘(2) CREDIT PERIOD.—The term ‘credit period’ means, with respect to any eligible small employer, the 2-consecutive-taxable year period beginning with the 1st taxable year in which the employer (or any predecessor) offers 1 or more qualified health plans to its employees through an Exchange. ‘‘(3) NONELECTIVE CONTRIBUTION.—The term ‘nonelective contribution’ means an employer contribution other than an employer contribution pursuant to a salary reduction arrange- ment. ‘‘(4) WAGES.—The term ‘wages’ has the meaning given such term by section 3121(a) (determined without regard to any dollar limitation contained in such section). ‘‘(5) AGGREGATION AND OTHER RULES MADE APPLICABLE.— ‘‘(A) AGGREGATION RULES.—All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer for purposes of this section. ‘‘(B) OTHER RULES.—Rules similar to the rules of sub- sections (c), (d), and (e) of section 52 shall apply. ‘‘(f) CREDIT MADE AVAILABLE TO TAX-EXEMPT ELIGIBLE SMALL EMPLOYERS.— ‘‘(1) IN GENERAL.—In the case of a tax-exempt eligible small employer, there shall be treated as a credit allowable under subpart C (and not allowable under this subpart) the lesser of— ‘‘(A) the amount of the credit determined under this section with respect to such employer, or ‘‘(B) the amount of the payroll taxes of the employer during the calendar year in which the taxable year begins. ‘‘(2) TAX-EXEMPT ELIGIBLE SMALL EMPLOYER.—For purposes of this section, the term ‘tax-exempt eligible small employer’ means an eligible small employer which is any organization described in section 501(c) which is exempt from taxation under section 501(a). ‘‘(3) PAYROLL TAXES.—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘payroll taxes’ means— Applicability.