the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Credit for first employee business wage expenses (1) In general In the case of a taxpayer who has made an election under section 45U(e) for a taxable year, there shall be allowed as a credit against the tax imposed by subsection (a) for the first calendar quarter which begins after the date on which the taxpayer files the return for the taxable year an amount equal to the payroll tax credit portion determined under section 45U(e)(2). (2) Limitation The credit allowed by paragraph (1) shall not exceed the tax imposed by subsection (a) for any calendar quarter on the wages paid with respect to the employment of all individuals in the employ of the employer. (3) Carryover of unused credit If the amount of the credit under paragraph (1) exceeds the limitation of paragraph (2) for any calendar quarter, such excess shall be carried to the succeeding calendar quarter and allowed as a credit under paragraph (1) for such quarter. (4) Deduction allowed for credited amounts Notwithstanding section 280C(a), the credit allowed under paragraph (1) shall not be taken into account for purposes of determining the amount of any deduction allowed under chapter 1 for taxes imposed under subsection (a). . (c) Coordination with deductions and other credits (1) Deductions Section 280C(a) of the Internal Revenue Code of 1986 is amended by inserting 45U(a), after 45S(a), . (2) Other credits (A) Section 41(b)(2)(D) of such Code is amended by adding at the end the following: (iv) Exclusion for wages to which first employee wage credit applies The term wages shall not include any amount taken into account in determining the credit under section 45U. . (B) Section 45A(b)(1) of such Code is amended by adding at the end the following: (C) Coordination with first employee wage credit The term qualified wages shall not include wages if any portion of such wages is taken into account in determining the credit under section 45U. . (C) Section