### Question
How is the "applicable percentage" defined?


### Answer
The term **applicable percentage** is defined in *26 U.S.C. § 1396* as follows -

> the percentage determined in accordance with the following table:


  


**In the case of wages paid or****The applicable**
**incurred during calendar year:****percentage is:**
1994 through 200120  
200215  
200310  
20045  

        


#### (2) Special rule


With respect to each empowerment zone designated pursuant to the amendments made by the Taxpayer Relief Act of 1997 to section 1391(b)(2), the following table shall apply in lieu of the table in paragraph (1):


  


**In the case of wages paid or****The applicable**
**incurred during calendar year—****percentage is—**
2000 through 200420  
200515  
200610  
20075

#### Citation:
  - *26 U.S.C. § 1396*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter U-Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas > PART III-ADDITIONAL INCENTIVES FOR EMPOWERMENT ZONES > Subpart A-Empowerment Zone Employment Credit**

