107 STAT. 562 PUBLIC LAW 103-66 —AUG. 10, 1993 employee health insurance costs) taken into account with respect to such employee. "(2) CARRYBACKS AND CARRYOVERS ADJUSTED. —In the case of any termination of employment to which paragraph (1) applies, the carrybacks and carryovers under section 39 shall be properly adjusted. " (3) SUBSECTION NOT TO APPLY IN CERTAIN CASES.—
- (A) IN GENERAL. —Paragraph (1) shall not apply to—
"(i) a termination of employment of an employee who voluntarily leaves the employment of the taxpaver, (ii) a termination of employment of an individual who before the close of the period referred to in paragraph (1) becomes disabled to perform the services of such employment unless such disability is removed before the close of such period and the taxpayer fails to offer reemplo^ent to such individual, or (iii) a termination of employment of an individual if it is determined under the applicable State unemployment compensation law that the termination was due to the misconduct of such individual.
- (B) CHANGES IN FORM OP BUSINESS. —For purposes
of paragraph (1), the employment relationship between the taxpayer and an employee shall not be treated as terminated— "(i) by a transaction to which section 381(a) applies if the employee continues to be employed by the acquiring corporation, or "(u) by reason of a mere change in the form of conducting the trade or business of the taxpayer if the employee continues to be employed in such trade or business and the taxpayer retains a substantial interest in such trade or business. "(4) SPECIAL RULE. —Any increase in tax under paragraph (1) shall not be treated as a tax imposed by this chapter for purposes of— "(A) determining the amount of any credit allowable under this chapter, and "(B) determining the amoiint of the tax imposed by section 55. "(e) OTHER DEFINITIONS AND SPECIAL RULES.— For purposes of this section— "(1) WAGES.—The term 'wages' has the same meaning given to such term in section 51.
- (2) CONTROLLED GROUPS. —
"(A) All employers treated as a single employer under section (a) or (b) of section 52 shall be treated as a single employer for purposes of this section. "(B) The cre^lit (if any) determined under this section with respect to each such employer shall be its proportionate share of the wages and qualified employee health insurance costs giving rise to such credit. "(3) CERTAIN OTHER RULES MADE APPLICABLE. —Rules similar to the rules of section 51(k) and subsections (c), (d), and (e) of section 52 shall apply. "(4) COORDINATION WITH NONREVENUE LAWS.— Any ref- erence in this section to a provision not contained in tiiis title shall be treated for purposes of this section as a reference
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