Title V — Employer incentives

“45S. Credit for employer educational assistance programs

“(a) General rule—For purposes of section 38, in the case of an employer, the employer educational assistance program credit determined under this section for the taxable year is an amount equal to 50 percent of the qualified educational assistance expenses paid or incurred by the taxpayer to or on behalf of any employee of the taxpayer during the taxable year.

“(b) Limitations

“(1) Per employee limitation—The amount of the qualified educational assistance expenses taken into account under subsection (a) with respect to any employee for the taxable year shall not exceed $5,250.

“(2) Total limitation—The aggregate amount of the qualified educational assistance expenses taken into account under subsection (a) with respect to all employees of the taxpayer for the taxable year shall not exceed the average of the aggregate qualified educational assistance expenses with respect to all employees of the taxpayer taken into account under subsection (a) in the 3 taxable years preceding such taxable year.

“(3) Transition rule

“(A) In general—In the case of a taxable year in which qualified educational assistance expenses of the taxpayer have not been taken into account under subsection (a) for each of the 3 taxable years preceding such taxable year, the aggregate amount of the qualified educational assistance expenses taken into account under subsection (a) with respect to all employees of the taxpayer for such taxable year shall not exceed the average of the sum of—

“(i) the aggregate qualified educational assistance expenses with respect to all employees of the taxpayer taken into account under subsection (a) in any of the 3 taxable years preceding such taxable year, plus

“(ii) the aggregate amount of amounts paid or expenses incurred by the employer, for which an exclusion was allowable to any employee of the employer under section 127, in any of such 3 taxable years in which no expenses were taken into account under subsection (a), plus

“(iii) in the case of a taxable year in which expenses have not been taken into account under subsection (a) or section 127 for each of the 3 taxable years preceding such taxable year, an amount equal to—

“(I) $5,250, multiplied by

“(II) the number of employees of the taxpayer with respect to which the taxpayer has qualified educational assistance expenses in such taxable year.

“(c) Qualified educational assistance expenses—For purposes of this section—

“(1) In general—The term qualified educational assistance expenses means expenses paid for educational assistance pursuant to an educational assistance program (within the meaning of section 127(b)).

“(2) Educational assistance—The term educational assistance has the meaning given such term by section 127(c)(1), applied without regard to subparagraph (B) thereof, except that such term includes a payment only if such payment is made with respect to an employee enrolled in a program provided at the workplace or outside of the workplace—

“(A) leading to a sub-baccalaureate degree or career technical certificate awarded by an accredited postsecondary institution; or

“(B) in basic education or English language training leading to a nationally recognized certificate of proficiency, or in workplace skills leading to an industry-recognized credential described in section 101(56) of the Workforce Investment Act of 1998 that is nationally recognized.

“(d) Other definitions and special rules—Rules similar to the rules of paragraphs (2) through (5) of section 127(c) shall apply for purposes of this section.

“(e) Denial of double benefit—No deduction or other credit shall be allowed under this chapter to an employer for any amount taken into account in determining the credit under this section.”

“(37) the employer educational assistance program credit determined under section 45S(a).”