### Question
What is the definition of qualifying employee?


### Answer
The definition of **qualifying employee** is as follows in *26 U.S.C. § 45S*:

> any employee (as defined in section 3(e) of the Fair Labor Standards Act of 1938, as amended) who—


(1) has been employed by the employer for 1 year or more, and


(2) for the preceding year, had compensation not in excess of an amount equal to 60 percent of the amount applicable for such year under clause (i) of section 414(q)(1)(B)

#### Citation:
  - *26 U.S.C. § 45S*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

