of the employer for the preceding taxable year in excess of 50 employees. (3) Applicable percentage For purposes of this section, the applicable percentage for the taxable year during which the eligible employer plan is established shall be 100 percent, and for taxable years thereafter shall be determined under the following table: In the case of the following taxable year beginning after the taxable year during which plan is established: The applicable percentage shall be: 1st 100% 2nd 75% 3rd 50% 4th 25% Any taxable year thereafter 0% (4) Determination of eligible employer