### Question
How does Determination of Tax Liability define eligible small business?


### Answer
Under *26 U.S.C. § 44*, **eligible small business** is defined as:

> any person if—


(1) either—


(A) the gross receipts of such person for the preceding taxable year did not exceed $1,000,000, or


(B) in the case of a person to which subparagraph (A) does not apply, such person employed not more than 30 full-time employees during the preceding taxable year, and


  

(2) such person elects the application of this section for the taxable year

#### Citation:
  - *26 U.S.C. § 44*
  - 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**

