PUBLIC LAW 107-16-JUNE 7, 2001 115 STAT. 51 Clause (i) shall not apply to a facility which is the principal residence (within the meaning of section 121) of the operator of the facility. "(B) SPECIAL RULES WITH RESPECT TO A TAXPAYER.— A facility shall not be treated as a qualified child care facility with respect to a taxpayer unless— "(i) enrollment in the facility is open to employees of the taxpayer during the taxable year, "(ii) if the facility is the principal trade or business of the taxpayer, at least 30 percent of the enrollees of such facility are dependents of employees of the taxpayer, and "(iii) the use of such facility (or the eligibility to use such facility) does not discriminate in favor of employees of the taxpayer who are highly compensated employees (within the meaning of section 414(q)). " (3) QUALIFIED CHILD CARE RESOURCE AND REFERRAL EXPENDITURE.— " (A) IN GENERAL.—The term 'qualified child care resource and referral expenditure' means any amount paid or incurred under a contract to provide child care resource and referral services to an employee of the taxpayer. "(B) NONDISCRIMINATION.—The services shall not be treated as qualified unless the provision of such services (or the eligibility to use such services) does not discriminate in favor of employees of the taxpayer who are highly compensated employees (within the meaning of section 414(q)). " (d) RECAPTURE OF ACQUISITION AND CONSTRUCTION CREDIT. — "(1) IN GENERAL. — If, as of the close of any taxable year, there is a recapture event with respect to any qualified child care facility of the taxpayer, then the tax of the taxpayer under this chapter for such taxable year shall be increased by an amount equal to the product of— " (A) the applicable recapture percentage, and "(B) the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted if the qualified child care expenditures of the taxpayer described in subsection (c)(1)(A) with respect to such facility had been zero. "(2) APPLICABLE RECAPTURE PERCENTAGE.— "(A) IN GENERAL.— For purposes of this subsection, the applicable recapture percentage shall be determined from the following table: The applicable recapture "If the recapture event percentage is: occurs in: Years 1-3 100 Year 4 85 Years 70 Year 6 55 Year 7 40 . Years 25 Years 9 and 10 10 Years 11 and thereafter 0. "(B) YEARS. — For purposes of subparagraph (A), year 1 shall begin on the first day of the taxable year in which the qualified child care facility is placed in service by the taxpayer. ,
�
