### Question
How does the law define tax credit employee stock ownership plan?


### Answer
Under *26 U.S.C. § 409*, **tax credit employee stock ownership plan** is defined as:

> a defined contribution plan which—



(1) meets the requirements of section 401(a),



(2) is designed to invest primarily in employer securities, and



(3) meets the requirements of subsections (b), (c), (d), (e), (f), (g), (h), and (o) of this section

#### Citation:
  - *26 U.S.C. § 409*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

