“(b) Applicable percentage.—For purposes of this section—

“(1) IN GENERAL.—Except as provided in paragraph (2), the applicable percentage is 5 percent.

“(2) RURAL AREAS.—

“(A) IN GENERAL.—In the case of qualified child care wages paid or incurred with respect to employment at an eligible childcare facility which is located in a rural area, the applicable percentage is 7 percent.

“(B) RURAL AREA DEFINED.—For purposes of this paragraph, the term ‘rural area’ means any area other than an urban area (as defined in section 101(a)(35) of title 23, United States Code).

“(c) Definitions.—For purposes of this section—

“(1) QUALIFIED CHILD CARE WAGES.—

“(A) IN GENERAL.—The term ‘qualified child care wages’ means wages paid to qualified child care workers.

“(B) WAGES.—The term ‘wages’ has the meaning given such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). Such term shall not include any amount taken into account for purposes of determining any other credit allowed under this subpart.

“(2) QUALIFIED CHILD CARE WORKER.—

“(A) IN GENERAL.—The term ‘qualified child care worker’ means any employee who—

“(i) is employed at an eligible child care facility, and

“(ii) provides child care services.

“(3) ELIGIBLE CHILD CARE FACILITY.—The term ‘eligible child care facility’ means any facility which—

“(A) provides child care services for at least 6 individuals,

“(B) receives a fee, payment, or grant for providing such services, and

“(C) complies with all applicable laws and regulations of a State or unit of local government.

“(4) CHILD CARE SERVICES.—The term ‘child care services’ means the providing of care, education, protection, supervision, or guidance to children.

“(d) Election To have credit not apply.—

“(1) IN GENERAL.—A taxpayer may elect to have this section not apply for any taxable year.

“(2) OTHER RULES.—Rules similar to the rules of paragraphs (2) and (3) of section 51(j) shall apply for purposes of this subsection.”.

“(42) the child care supply credit determined under section 45BB(a).”.

“(13) The child care supply credit determined under section 45BB(a).”.

“(b) Applicable percentage.—For purposes of this section—

“(1) IN GENERAL.—Except as provided in paragraph (2), the applicable percentage is 5 percent.

“(2) RURAL AREAS.—

“(A) IN GENERAL.—In the case of qualified child care wages paid or incurred with respect to employment at an eligible childcare facility which is located in a rural area, the applicable percentage is 7 percent.

“(B) RURAL AREA DEFINED.—For purposes of this paragraph, the term ‘rural area’ means any area other than an urban area (as defined in section 101(a)(35) of title 23, United States Code).

“(c) Definitions.—For purposes of this section—

“(1) QUALIFIED CHILD CARE WAGES.—

“(A) IN GENERAL.—The term ‘qualified child care wages’ means wages paid to qualified child care workers.

“(B) WAGES.—The term ‘wages’ has the meaning given such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). Such term shall not include any amount taken into account for purposes of determining any other credit allowed under this subpart.

“(2) QUALIFIED CHILD CARE WORKER.—

“(A) IN GENERAL.—The term ‘qualified child care worker’ means any employee who—

“(i) is employed at an eligible child care facility, and

“(ii) provides child care services.

“(3) ELIGIBLE CHILD CARE FACILITY.—The term ‘eligible child care facility’ means any facility which—

“(A) provides child care services for at least 6 individuals,

“(B) receives a fee, payment, or grant for providing such services, and

“(C) complies with all applicable laws and regulations of a State or unit of local government.

“(4) CHILD CARE SERVICES.—The term ‘child care services’ means the providing of care, education, protection, supervision, or guidance to children.

“(d) Election To have credit not apply.—

“(1) IN GENERAL.—A taxpayer may elect to have this section not apply for any taxable year.

“(2) OTHER RULES.—Rules similar to the rules of paragraphs (2) and (3) of section 51(j) shall apply for purposes of this subsection.”.

“(42) the child care supply credit determined under section 45BB(a).”.

“(13) The child care supply credit determined under section 45BB(a).”.