100 percent for 50 percent . (B) Small business employer For purposes of subparagraph (A), the term small business employer means an employer that is a small business concern (within the meaning of section 3 of the Small Business Act) which— (i) is engaged in a trade or business, and (ii) employs one or more individuals in such trade or business. (3) Per employee limitation (A) In general The aggregate amount of qualified housing expenses taken into account with respect to any eligible employee for any taxable year shall not exceed, when added to any qualified housing expenses taken into account for any preceding taxable year with respect to such employee— (i) in the case of homeownership assistance, the lesser of $10,000 or 6 percent of the purchase price of such employee’s principal residence, and (ii) in the case of rental assistance, $5,000. (B) Inflation adjustment (i) In general In the case of any taxable year beginning after 2017, each dollar amount referred to in subparagraph (A) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 26 U.S.C. 1(f)(3) for the calendar year in which the taxable year begins, by substituting 2016 for 1992 . (ii) Rounding If any amount as adjusted under clause (i) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50. (b) Housing assistance program For purposes of this section, a housing assistance program is a separate written plan of an employer for the exclusive benefit of such employer's employees to provide the qualified housing expenses of such employees and which meets requirements similar to the requirements of paragraphs (2) through (6) of section 127(b). (c) Definitions and special rules For purposes of this section— (1) Eligible employee (A) In general The term eligible employee means any individual— (i) employed by an employer, (ii) whose household income does not exceed 120 percent of the area median gross income (adjusted for household size) for