UStax_creditpct_of_tax

Employer Differential Wage Payments Credit

US-DIFFWAGE-CREDIT · United States (Federal)

Summary

Credit for differential wage payments made to employees on active military duty. 20% of qualifying wages paid (up to $20,000 per employee per year). Applies to employees called to active duty after 9/11/2001.

Benefit

Percentage
Flat
Duration
Max annual
(taxpayer)
Max total
(taxpayer)
Carryforward

Program metadata

Distribution
taxpayer_earned
Claimant subject
business
Refund/transfer election
Program family
Effective
Sunset
Application deadline
Transfer discount

Hard requirements (1)

  • local_approval_requiredFederal claim-on-return credit. No agency pre-approval gate — the taxpayer claims the credit on their return based on satisfying the statutory eligibility criteria (qualified activity, qualified expenditures, qualified employees, etc.). User attests via the securedApprovals chip group on /match that they have determined the underlying §-criteria are met. Without attestation this rule defaults to "unknown" → status="partial" instead of vacuously "eligible".

Preference / tiering rules (0)

None.

NAICS industries (0)

Any.

Geo zones (0)

Statewide / none specified.

Tags (3)

  • filing_form: Form 8932 (Credit for Employer-Provided Qualified Adoption Services)
  • credit_rate: 20%
  • max_benefit_per_employee_annual: 20000.00

Tax bases

  • corporate_income_taxprimary

Approval requirements (1)

  • requiredUS IRS — self-attestation that qualifying activity meets statutory criteriaSelf-attestation: confirm the qualifying activity meets the statutory eligibility criteria for this §-code credit. Tax preparer / CPA verification recommended.

Source

https://www.irs.gov/forms-pubs/about-form-8932
IRC §45P; Form 8932 (Credit for Employer-Provided Qualified Adoption Services)
Last verified: 2026-04-22