124 STAT. 241 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘(i) amounts required to be withheld from the employees of the tax-exempt eligible small employer under section 3401(a), ‘‘(ii) amounts required to be withheld from such employees under section 3101(b), and ‘‘(iii) amounts of the taxes imposed on the tax- exempt eligible small employer under section 3111(b). ‘‘(B) SPECIAL RULE.—A rule similar to the rule of sec- tion 24(d)(2)(C) shall apply for purposes of subparagraph (A). ‘‘(g) APPLICATION OF SECTION FOR CALENDAR YEARS 2011, 2012, AND 2013.—In the case of any taxable year beginning in 2011, 2012, or 2013, the following modifications to this section shall apply in determining the amount of the credit under subsection (a): ‘‘(1) NO CREDIT PERIOD REQUIRED.—The credit shall be determined without regard to whether the taxable year is in a credit period and for purposes of applying this section to taxable years beginning after 2013, no credit period shall be treated as beginning with a taxable year beginning before 2014. ‘‘(2) AMOUNT OF CREDIT.—The amount of the credit deter- mined under subsection (b) shall be determined— ‘‘(A) by substituting ‘35 percent (25 percent in the case of a tax-exempt eligible small employer)’ for ‘50 percent (35 percent in the case of a tax-exempt eligible small employer)’, ‘‘(B) by reference to an eligible small employer’s non- elective contributions for premiums paid for health insur- ance coverage (within the meaning of section 9832(b)(1)) of an employee, and ‘‘(C) by substituting for the average premium deter- mined under subsection (b)(2) the amount the Secretary of Health and Human Services determines is the average premium for the small group market in the State in which the employer is offering health insurance coverage (or for such area within the State as is specified by the Secretary). ‘‘(3) CONTRIBUTION ARRANGEMENT.—An arrangement shall not fail to meet the requirements of subsection (d)(4) solely because it provides for the offering of insurance outside of an Exchange. ‘‘(h) INSURANCE DEFINITIONS.—Any term used in this section which is also used in the Public Health Service Act or subtitle A of title I of the Patient Protection and Affordable Care Act shall have the meaning given such term by such Act or subtitle. ‘‘(i) REGULATIONS.—The Secretary shall prescribe such regula- tions as may be necessary to carry out the provisions of this section, including regulations to prevent the avoidance of the 2-year limit on the credit period through the use of successor entities and the avoidance of the limitations under subsection (c) through the use of multiple entities.’’. (b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT.—Section 38(b) of the Internal Revenue Code of 1986 (relating to current year business credit) is amended by striking ‘‘plus’’ at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ‘‘, plus’’, and by inserting after paragraph (35) the following: 26 USC 38. Determination. Applicability.
