Internal Revenue Code:Sec. 52. Special rules

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter A - Determination of Tax Liability
         PART IV - CREDITS AGAINST TAX
          Subpart F - Rules for Computing Work Opportunity Credit
        

Statute

    Sec. 52. Special rules
 
    (a) Controlled group of corporations
      For purposes of this subpart, all employees of all corporations
    which are members of the same controlled group of corporations
    shall be treated as employed by a single employer.  In any such
    case, the credit (if any) determined under section 51(a) with
    respect to each such member shall be its proportionate share of the
    wages giving rise to such credit.  For purposes of this subsection,
    the term ''controlled group of corporations'' has the meaning given
    to such term by section 1563(a), except that -
        (1) ''more than 50 percent'' shall be substituted for ''at
      least 80 percent'' each place it appears in section 1563(a)(1),
      and
        (2) the determination shall be made without regard to
      subsections (a)(4) and (e)(3)(C) of section 1563.
    (b) Employees of partnerships, proprietorships, etc., which are
        under common control
      For purposes of this subpart, under regulations prescribed by the
    Secretary -
        (1) all employees of trades or business (whether or not
      incorporated) which are under common control shall be treated as
      employed by a single employer, and
        (2) the credit (if any) determined under section 51(a) with
      respect to each trade or business shall be its proportionate
      share of the wages giving rise to such credit.
    The regulations prescribed under this subsection shall be based on
    principles similar to the principles which apply in the case of
    subsection (a).
    (c) Tax-exempt organizations
      No credit shall be allowed under section 38 for any work
    opportunity credit determined under this subpart to any
    organization (other than a cooperative described in section 521)
    which is exempt from income tax under this chapter.
    (d) Estates and trusts
      In the case of an estate or trust -
        (1) the amount of the credit determined under this subpart for
      any taxable year 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, and
        (2) any beneficiary to whom any amount has been apportioned
      under paragraph (1) shall be allowed, subject to section 38(c), a
      credit under section 38(a) for such amount.
    (e) Limitations with respect to certain persons
      Under regulations prescribed by the Secretary, in the case of -
        (1) a regulated investment company or a real estate investment
      trust subject to taxation under subchapter M (section 851 and
      following), and
        (2) a cooperative organization described in section 1381(a),
    rules similar to the rules provided in subsections (e) and (h) of
    section 46 (as in effect on the day before the date of the
    enactment of the Revenue Reconciliation Act of 1990) shall apply in
    determining the amount of the credit under this subpart.
 

Sources

    (Added Pub. L. 95-30, title II, Sec. 202(b), May 23, 1977, 91 Stat.
    143; amended Pub. L. 95-600, title III, Sec. 321(c)(1), Nov. 6,
    1978, 92 Stat. 2835; Pub. L. 96-222, title I, Sec. 103(a)(5), Apr.
    1, 1980, 94 Stat. 209; Pub. L. 97-354, Sec. 5(a)(11), Oct. 19,
    1982, 96 Stat. 1693; Pub. L. 98-369, div.  A, title IV, Sec.
    474(p)(4)-(7), July 18, 1984, 98 Stat. 838; Pub. L. 101-508, title
    XI, Sec. 11813(b)(4), Nov. 5, 1990, 104 Stat. 1388-551; Pub. L.
    104-188, title I, Sec. 1616(b)(2), Aug. 20, 1996, 110 Stat. 1856;
    Pub. L. 105-34, title XVI, Sec. 1601(b), Aug. 5, 1997, 111 Stat.
    1087.)
 

References in Text

                             REFERENCES IN TEXT
      The date of the enactment of the Revenue Reconciliation Act of
    1990, referred to in subsec. (e), is the date of enactment of Pub.
    L. 101-508, which was approved Nov. 5, 1990.
 

Miscellaneous

                                 AMENDMENTS
      1997 - Subsec. (c). Pub. L. 105-34 substituted ''work opportunity
    credit'' for ''targeted jobs credit''.
      1996 - Subsec. (e)(1) to (3). Pub. L. 104-188 redesignated pars.
    (2) and (3) as (1) and (2), respectively, and struck out former
    par. (1) which read as follows: ''an organization to which section
    593 (relating to reserves for losses on loans) applies,''.
      1990 - Subsec. (e). Pub. L. 101-508 substituted ''section 46 (as
    in effect on the day before the date of the enactment of the
    Revenue Reconciliation Act of 1990)'' for ''section 46'' in
    concluding provisions.
      1984 - Subsec. (a). Pub. L. 98-369, Sec. 474(p)(4), substituted
    ''the credit (if any) determined under section 51(a) with respect
    to each such member'' for ''the credit (if any) allowable by
    section 44B to each such member''.
      Subsec. (b)(2). Pub. L. 98-369, Sec. 474(p)(5), substituted ''the
    credit (if any) determined under section 51(a)'' for ''the credit
    (if any) allowable by section 44B''.
      Subsec. (c). Pub. L. 98-369, Sec. 474(p)(6), substituted ''credit
    shall be allowed under section 38 for any targeted jobs credit
    determined under this subpart'' for ''credit shall be allowed under
    section 44B''.
      Subsec. (d)(2). Pub. L. 98-369, Sec. 474(p)(7), substituted '',
    subject to section 38(c), a credit under section 38(a)'' for '',
    subject to section 53 a credit under section 44B''.
      1982 - Subsecs. (d) to (f). Pub. L. 97-354 struck out subsec. (d)
    relating to apportionment of credit among shareholders, and
    redesignated subsecs. (e) and (f) as (d) and (e), respectively.
      1980 - Subsec. (f). Pub. L. 96-222 substituted ''subsections (e)
    and (h) of section 46'' for ''section 46(e)''.
      1978 - Subsecs. (a), (b). Pub. L. 95-600, Sec. 321(c)(1)(B),
    substituted ''proportionate share of the wages'' for
    ''proportionate contribution to the increase in unemployment
    insurance wages''.
      Subsecs. (c), (d). Pub. L. 95-600, Sec. 321(c)(1)(A), struck out
    subsec. (c) which related to dispositions by an employer, and
    redesignated subsecs. (d) and (f) as (c) and (d), respectively.
      Subsec. (e). Pub. L. 95-600, Sec. 321(c)(1)(A), (C), redesignated
    subsec. (g) as (e) and struck out par. (3) which provided that the
    $100,000 amount specified in section 51(d) applicable to such
    estate or trust be reduced to an amount which bears the same ratio
    to $100,000 as the portion of the credit allocable to the estate or
    trust under paragraph (1) bears to the entire amount of such
    credit.  Former subsec. (e), which related to a change in status
    from self-employed to employee, was struck out.
      Subsecs. (f) to (h). Pub. L. 95-600, Sec. 321(c)(1)(A),
    redesignated subsecs. (f) to (h) as (d) to (f), respectively.
      Subsec. (i). Pub. L. 95-600, Sec. 321(c)(1)(A)(i), struck out
    subsec. (i) which related to a $50,000 limitation in the case of
    married individuals filing separate returns.
      Subsec. (j). Pub. L. 95-600, Sec. 321(c)(1)(A)(i), struck out
    subsec. (j) which related to certain short taxable years.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Amendment by Pub. L. 105-34 effective as if included in the
    provisions of the Small Business Job Protection Act of 1996, Pub.
    L. 104-188, to which it relates, see section 1601(j) of Pub. L.
    105-34, set out as a note under section 23 of this title.
                      EFFECTIVE DATE OF 1996 AMENDMENT
      Amendment by Pub. L. 104-188 applicable to taxable years
    beginning after Dec. 31, 1995, see section 1616(c) of Pub. L.
    104-188, set out as a note under section 593 of this title.
                      EFFECTIVE DATE OF 1990 AMENDMENT
      Amendment by Pub. L. 101-508 applicable to property placed in
    service after Dec. 31, 1990, but not applicable to any transition
    property (as defined in section 49(e) of this title), any property
    with respect to which qualified progress expenditures were
    previously taken into account under section 46(d) of this title,
    and any property described in section 46(b)(2)(C) of this title, as
    such sections were in effect on Nov. 4, 1990, see section 11813(c)
    of Pub. L. 101-508, set out as a note under section 29 of this
    title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to taxable years beginning
    after Dec. 31, 1983, and to carrybacks from such years, see section
    475(a) of Pub. L. 98-369, set out as a note under section 21 of
    this title.
                      EFFECTIVE DATE OF 1982 AMENDMENT
      Amendment by Pub. L. 97-354 applicable to taxable years beginning
    after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
    an Effective Date note under section 1361 of this title.
                      EFFECTIVE DATE OF 1980 AMENDMENT
      Amendment by Pub. L. 96-222 effective, except as otherwise
    provided, as if it had been included in the provisions of the
    Revenue Act of 1978, Pub. L. 95-600, to which such amendment
    relates, see section 201 of Pub. L. 96-222, set out as a note under
    section 32 of this title.
                      EFFECTIVE DATE OF 1978 AMENDMENT
      Amendment by Pub. L. 95-600 applicable to amounts paid or
    incurred after Dec. 31, 1978, in taxable years ending after such
    date, see section 321(d)(1) of Pub. L. 95-600, set out as a note
    under section 51 of this title.
                               EFFECTIVE DATE
      Section applicable to taxable years beginning after Dec. 31,
    1976, and to credit carrybacks from such years, see section 202(e)
    of Pub. L. 95-30, set out as a note under section 51 of this title.
                             SAVINGS PROVISION
      For provisions that nothing in amendment by Pub. L. 101-508 be
    construed to affect treatment of certain transactions occurring,
    property acquired, or items of income, loss, deduction, or credit
    taken into account prior to Nov. 5, 1990, for purposes of
    determining liability for tax for periods ending after Nov. 5,
    1990, see section 11821(b) of Pub. L. 101-508, set out as a note
    under section 29 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 29, 40, 41, 42, 44, 45,
    45A, 45E, 45F, 51, 51A, 264, 280C, 448, 453A, 460, 465, 474, 685,
    856, 860L, 943, 1044, 1397, 5000, 6053, 9701 of this title; title
    42 section 1395y.