under clause (i) of such paragraph. (3) Pass-thru entities If a qualifying business entity is a partnership, trust, S corporation, or other pass-thru entity, the limitations under this subsection shall apply at the partnership or other entity level and not at the partner or similar level. (c) Qualified wages For purposes of this section— (1) In general The term qualified wages means, with respect to any qualifying business entity, the amount of W–2 wages paid or incurred during any eligible taxable year to employees for services performed in connection with the active conduct of a trade or business by the entity. (2) Exception for qualified active investors and 5-percent owner-employees W–2 wages shall not be taken into account under paragraph (1) if paid by an entity to an employee, and such employee shall not be taken into account under paragraph (3)(A), during any period the employee is— (A) a qualified active investor, or (B) an employee other than a qualified active investor who is a 5-percent owner (as defined in section 416(i)(1)(B)(i)) of the entity. (3) Eligible taxable year (A) In general The term eligible taxable year means any taxable year of a qualifying business entity— (i) which occurs during the period— (I) beginning with the first taxable year of the entity in which the entity employed at least 1 full-time employee (or employees constituting a full-time equivalent employee) in 1 or more trades or businesses actively conducted by the entity during the taxable year and paid W–2 wages to such employee or employees with respect to such employment, and (II) ending with the last taxable year for which a credit may be determined for the entity under this section by reason of the limitation under subsection (b)(2), and (ii) in the case of a taxable year other than the first taxable year described in clause (i)(I), with respect to which the entity meets the employment and wage requirements of such clause. Such term shall not include any taxable year during such a period if the first taxable year