thereof. Any increase determined under the preceding sentence which is not a multiple of $50, shall be rounded to the next highest multiple of $50. . (c) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2019. (d) Plan amendments A plan or other arrangement that otherwise satisfies all applicable requirements of sections 106, 125, and 129 of the Internal Revenue Code of 1986 (including any rules or regulations thereunder) shall not fail to be treated as a cafeteria plan or dependent care flexible spending arrangement merely because such plan or arrangement is amended pursuant to the amendments made by this section and such amendment is retroactive, if— (1) such amendment is adopted no later than the last day of the first plan year beginning after December 31, 2019, and (2) the plan or arrangement is operated consistent with the terms of such amendment during the period beginning on the effective date of the amendment and ending on the date the amendment is adopted. 404. Payroll credit for certain fixed expenses of child care facilities subject to closure by reason of COVID–19 (a) In general In the case of an eligible employer, there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to 50 percent of the qualified fixed expenses paid or incurred by such employer during such calendar quarter. (b) Limitations and refundability (1) Overall quarterly dollar limitation The qualified fixed expenses which may be taken into account under subsection (a) (determined after the application of paragraph (2)) by any eligible employer for any calendar quarter shall not exceed the least of— (A) the qualified fixed expenses paid by the eligible employer in the same calendar quarter of calendar year 2019, (B) $25,000,000, or (C) the greater of— (i) 25 percent of the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter, or (ii) 6.25 percent of the gross