(i) $25,000, over (ii) the amount of credit treated as an overpayment of the eligible employer by reason of this paragraph for all preceding calendar quarters. (C) Reduction based on number of employees In the case of any eligible employer for which the average number of full-time employees (within the meaning of section 4980H) employed by such eligible employer during the last calendar quarter of 2022 (rounded to the nearest multiple of 1) exceeds 10, the $25,000 dollar amount under subparagraph (A)(ii)(I) shall be reduced (but not below zero) by the product of such excess and $2,500. (c) Definitions For purposes of this section— (1) Applicable employment taxes The term applicable employment taxes means the following: (A) The taxes imposed under section 3111(a). (B) The taxes imposed under section 3111(b). (2) Eligible employer (A) In general The term eligible employer means any employer— (i) which is an eligible entity (as defined in section 5003(a) of the American Rescue Plan Act of 2021) which— (I) was established before March 14, 2020, (II) submitted an application for a grant under section 5003(c) of such Act in accordance with the procedures established by the Administrator of the Small Business Administration under such section, (III) certifies to the Secretary (in such form and manner as the Secretary requires) that such employer was eligible for a grant under such section, and (IV) did not receive any grant funds under such section due to a lack of funding, (ii) which paid applicable employment taxes with respect to pay periods occurring in at least 2 calendar quarters of calendar year 2021, and (iii) which meets the gross receipts test of subparagraph (B). (B) Gross receipts test An employer meets the gross receipts test of this subparagraph if— (i) the gross receipts of such employer for any applicable calendar year were less than 50 percent the gross receipts of such employer for calendar year 2019, or (ii) the average gross receipts of such employer for all applicable calendar years were less than