### Question
How is the term tax credit employee stock ownership plan defined?


### Answer
The term **tax credit employee stock ownership plan** is defined in *26 U.S.C. § 409* as the following:

> 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**

