Military Spouse Retirement Plan Eligibility Credit

§ 45A. Indian employment credit(a) Amount of creditFor purposes of section 38, the amount of the Indian employment credit determined under this section with respect to any employer for any taxable year is an amount equal to 20 percent of the excess (if any) of—(1) the sum of—(A) the qualified wages paid or incurred during such taxable year, plus (B) qualified employee health insurance costs paid or incurred during such taxable year, over (2) the sum of the qualified wages and qualified employee health insurance costs (determined as if this section were in effect) which were paid or incurred by the employer (or any predecessor) during calendar year 1993. (b) Qualified wages; qualified employee health insurance costsFor purposes of this section—(1) Qualified wages(A) In generalThe term “qualified wages” means any wages paid or incurred by an employer for services performed by an employee while such employee is a qualified employee. (B) Coordination with work opportunity creditThe term “qualified wages” shall not include wages attributable to service rendered during the 1-year period beginning with the day the individual begins work for the employer if any portion of such wages is taken into account in determining the credit under section 51. If any portion of wages are taken into account under subsection (e)(1)(A) of section 51, the preceding sentence shall be applied by substituting “2-year period” for “1-year period”. (2) Qualified employee health insurance costs(A) In generalThe term “qualified employee health insurance costs” means any amount paid or incurred by an employer for health insurance to the extent such amount is attributable to coverage provided to any employee while such employee is a qualified employee. (B) Exception for amounts paid under salary reduction arrangementsNo amount paid or incurred for health insurance pursuant to a salary reduction arrangement shall be taken into account under subparagraph (A). (3) LimitationThe aggregate amount of qualified wages and qualified employee health insurance costs taken into account with respect to any employee for any taxable year (and for the base period under subsection (a)(2)) shall not exceed $20,000. (c) Qualified employeeFor purposes of this section—(1) In generalExcept as otherwise provided in this subsection, the term “qualified employee” means, with respect to any period, any employee of an employer if—(A) the employee is an enrolled member of an Indian tribe or the spouse of an enrolled member of an Indian tribe, (B) substantially all of the services performed during such period by such employee for such employer are performed within an Indian reservation, and (C) the principal place of abode of such employee while performing such services is on or near the reservation in which the services are performed.