95 STAT. 290 26 USC 44G.
PUBLIC LAW 97-34—AUG. 13, 1981 "SEC. 44G. EMPLOYEE STOCK OWNERSHIP CREDIT. "(a) GENERAL RULE.— "(1) CREDIT ALLOWED.—In the case of a corporation which elects
to have this section apply for the taxable year and which meets the requirements of subsection (c)(l), there is allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount of the credit determined under paragraph (2) for such taxable year. "(2) DETERMINATION OF AMOUNT.—
"(A) IN GENERAL.—The amount of the credit determined under this paragraph for the taxable year shall be equal to the lesser of— "(i) the aggregate value of employer securities transferred by the corporation for the taxable year to a tax credit employee stock ownership plan maintained by the corporation, or 'Xii) the applicable percentage of the amount of the aggregate compensation (within the meaning of section 415(c)(3)) paid or accrued during the taxable year to all employees under a tax credit employee stock ownership plan. "(B) APPLICABLE PERCENTAGE.—For purposes of applying subparagraph (A)(ii), the applicable percentage shall be determined in accordance with the following table:
"For aggregate compensation paid or accrued during a portion of the taxable year occurring in calendar year: 1983 1984 1985 1986 1987 1988 or thereafter
"(b) LIMITATION BASED ON AMOUNT OF TAX.— "(1) LIABILITY FOR TAX.—
The applicable percentage is: 0.5 0.5 0.75 0.75 0.75 0.
"(A) IN GENERAL.—The credit allowed by subsection (a) for any taxable year shall not exceed an amount equal to the sum of— "(i) so much of the liability for tax for the taxable year as does not exceed $25,000, plus "(ii) 90 percent of so much of the liability for tax for the taxable year as exceeds $25,000. "(B) LIABILITY FOR TAX DEFINED.—For purposes of this paragraph, the term 'liability for tax' means the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowed under a section of this subpart having a lower number designation than this section, other than credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term 'tax imposed by this chapter' shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a). "(C) CONTROLLED GROUPS.—In the case of a controlled group of corporations, the $25,000 amount specified in subparagraph (A) shall be reduced for each component member of such group by apportioning $25,000 among the component members of such group in such manner as the Secretary shall by regulations prescribe. For purposes of the preceding
�
