1. Short title This Act may be cited as the Rewarding American Investments to Support Employees Act of 2018 or as the RAISE Act of 2018 . 2. Employer wage credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following: 45T. Employer wage credit (a) In general For purposes of section 38, the employer wage credit determined under this section with respect to any employer for any taxable year is an amount equal to 10 percent of the excess (if any) of— (1) the aggregate amount of wages paid or incurred to specified employees during the calendar year which ends with or within such taxable year, over (2) the aggregate amount of wages paid or incurred to specified employees during the calendar year immediately preceding the calendar year described in paragraph (1). (b) Limitations (1) In general The amount of the credit determined under subsection (a) with respect to any employer for any taxable year shall not exceed $500,000. (2) Limitation on increase which may be taken into account with respect to each employee The amount of wages taken into account under subsection (a)(1) with respect to any employee shall not exceed the sum of $25,000 plus the amount of wages taken into account under subsection (a)(2) with respect to such employee. (c) Specified employees For purposes of this section, the term specified employee means any employee who— (1) was employed continuously in one or more trades or businesses of the employer during both calendar years described in subsection (a), and (2) earned wages not in excess of $75,000 during the calendar year described in subsection (a)(2). (d) Other definitions and special rules For purposes of this section— (1) Wages The term wages has the meaning given such term by section 3306(b) (determined without regard to any dollar limitation contained in such section). Such term shall not include any amount taken into account in determining any other credit allowed under this subpart. (2)