‘‘(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to carrying out the provisions of this section, including 
regulations— 
‘‘(1) preventing the avoidance of the limitations 
under this section in cases in which there is a suc-
cessor or new qualified business entity with respect 
to the same trade or business for which a prede-
cessor qualified business entity already claimed the 
credit under this section, 
‘‘(2) to minimize compliance and recordkeeping 
burdens under the provisions of this section, and 
‘‘(3) for recapturing the benefit of credits deter-
mined under section 3111(g) in cases where there is 
a recapture or a subsequent adjustment to the pay-
roll tax credit portion of the credit determined under 
subsection (a), including requiring amended income 
tax returns in the cases where there is such an ad-
justment.’’. 
(2) CREDIT TO BE PART OF GENERAL BUSI-
NESS
CREDIT.—Section 38(b) of such Code, as 
amended by section 2, is amended by striking ‘‘plus’’ 
at the end of paragraph (32), by striking the period 
at the end of paragraph (33) and inserting ‘‘, plus’’, 
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and by adding at the end the following new para-
graph: 
‘‘(34) the first employee business wage credit 
determined under section 45U(a).’’. 
(3) CREDIT ALLOWED AGAINST ALTERNATIVE 
MINIMUM TAX.—Section 38(c)(4)(B) of such Code, 
as amended by section 2, is amended by redesig-
nating clauses (xi), (xii), and (xiii) as clauses (xii), 
(xiii), and (xiv), respectively, and by inserting after 
clause (x) the following new clause: 
‘‘(xi) the credit determined under sec-
tion 45U,’’. 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
chapter 1 of such Code, as amended by section 2, is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45U. First employee business wage credit.’’. 
(b) PAYROLL TAX CREDIT.—Section 3111 of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(g) CREDIT FOR FIRST EMPLOYEE BUSINESS WAGE 
EXPENSES.— 
‘‘(1) IN GENERAL.—In the case of a taxpayer 
who has made an election under section 45U(e) for 
a taxable year, there shall be allowed as a credit 
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against the tax imposed by subsection (a) for the 
first calendar quarter which begins after the date on 
which the taxpayer files the return for the taxable 
year an amount equal to the payroll tax credit por-
tion determined under section 45U(e)(2). 
‘‘(2) LIMITATION.—The credit allowed by para-
graph (1) shall not exceed the tax imposed by sub-
section (a) for any calendar quarter on the wages 
paid with respect to the employment of all individ-
uals in the employ of the employer. 
‘‘(3) CARRYOVER OF UNUSED CREDIT.—If the 
amount of the credit under paragraph (1) exceeds 
the limitation of paragraph (2) for any calendar 
quarter, such excess shall be carried to the suc-
ceeding calendar quarter and allowed as a credit 
under paragraph (1) for such quarter. 
‘‘(4) DEDUCTION
ALLOWED
FOR
CREDITED 
AMOUNTS.—Notwithstanding section 280C(a), the 
credit allowed under paragraph (1) shall not be 
taken into account for purposes of determining the 
amount of any deduction allowed under chapter 1 
for taxes imposed under subsection (a).’’. 
(c) COORDINATION WITH DEDUCTIONS AND OTHER 
CREDITS.— 
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(1) DEDUCTIONS.—Section 280C(a) of the In-
ternal Revenue Code of 1986 is amended by insert-
ing ‘‘45U(a),’’ after ‘‘45S(a),’’. 
(2) OTHER CREDITS.— 
(A) Section 41(b)(2)(D) of such Code is 
amended by adding at the end the following: 
‘‘(iv) EXCLUSION
FOR
WAGES
TO 
WHICH
FIRST
EMPLOYEE
WAGE
CREDIT 
APPLIES.—The term ‘wages’ shall not in-
clude any amount taken into account in 
determining 
the 
credit 
under 
section 
45U.’’. 
(B) Section 45A(b)(1) of such Code is 
amended by adding at the end the following: 
‘‘(C) COORDINATION
WITH
FIRST
EM-
PLOYEE
WAGE
CREDIT.—The term ‘qualified 
wages’ shall not include wages if any portion of 
such wages is taken into account in determining 
the credit under section 45U.’’. 
(C) Section 1396(c)(3) of such Code is 
amended— 
(i) by striking ‘‘section 51’’ each place 
it appears and inserting ‘‘section 45U or 
51’’, and 
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(ii) by inserting ‘‘AND
FIRST
EM-
PLOYEE WAGE’’ after ‘‘OPPORTUNITY’’ in 
the heading thereof. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
Æ 
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