employer for such calendar quarter. (3) Refundability of excess credit (A) In general If the amount of the credit under subsection (a) exceeds the limitation of paragraph (2) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b) of the Internal Revenue Code of 1986. (B) Treatment of payments For purposes of section 1324 of title 31, United States Code, any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. (4) Coordination with government grants The qualified pandemic-related employee benefit expenses taken into account under this section by any employer shall be reduced by any amounts provided by and Federal, State, or local government for purposes of making or reimbursing such expenses. (c) Qualified pandemic-related employee benefit expenses For purposes of this section, the term qualified pandemic-related employee benefit expenses means any amount paid to or for the benefit of an employee in the employment of the employer if— (1) such amount is excludible from the gross income of the employee under section 139 of the Internal Revenue Code of 1986 by reason of being a qualified disaster relief payment described in subsection (b)(1) of such section with respect to a qualified disaster described in subsection (c)(2) of such section which was declared by reason of COVID–19, and (2) the employer elects (at such time and in such manner as the Secretary may provide) to treat such amount as a qualified pandemic-related employee benefit expense. (d) Applicable percentage For purposes of this section— (1) In general The term applicable percentage means— (A) 50 percent, in the case of qualified pandemic-related employee benefit expenses paid with respect to an essential employee, and (B) 30 percent, in any other case. (2) Essential employee The term essential employee means, with respect to any employer for any calendar