1. Short title This Act may be cited as the Farm Labor Expansion Act of 2020 or the FLEX Act . 2. Displaced farm worker credit (a) In general Subpart C of part IV of subchapter A of chapter 1 is amended by inserting before section 37 the following new section: 36C. Displaced farm worker credit (a) In general In the case of a taxpayer engaged in the trade or business of farming, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to 40 percent of the qualified first-year wages of an eligible replacement worker. (b) Definitions and special rules For purposes of this section— (1) Qualified first-year wages (A) In general The term qualified first-year wages means, with respect to an eligible replacement worker, wages attributable to service rendered during the 1-year period beginning with the day the individual begins work for the employer. (B) Wages The term wages has the meaning given to such term by section 3306(b) (determined without regard to any dollar limitation contained in such section). (C) Limitation The amount of wages taken into account with respect to any employee for all taxable years shall not exceed $25,000. (2) Eligible replacement worker For purposes of this section, the term eligible replacement worker means any individual who— (A) began a period of unemployment after March 27, 2020, and during which time the individual was receiving unemployment compensation under State or Federal law, and (B) performs for the employer substantially the same job functions as an H–2A worker taken into account under paragraph (4). (3) H–2A worker The term H–2A worker means a nonimmigrant described in section 101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act ( 8 U.S.C. 1101(a)(15)(H)(ii)(a) ). (4) Limitation on number of workers taken into account The number of eligible replacement workers taken into account under this section, shall not exceed the average number of H–2A workers employed by the taxpayer during the preceding taxable year. (5) Controlled groups and