### Question
How does Business Related Credits define eligible small business?


### Answer
Under *26 U.S.C. § 41*, **eligible small business** is defined as:

> a small business with respect to which the taxpayer does not own (within the meaning of section 318) 50 percent or more of—


(I) in the case of a corporation, the outstanding stock of the corporation (either by vote or value), and


(II) in the case of a small business which is not a corporation, the capital and profits interests of the small business

#### Citation:
  - *26 U.S.C. § 41*
  - 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**

