Generally, an individual is not a qualified employee unless employed for at least 90 days. The 90-day requirement does not apply in the following situations:
The employee is terminated because of misconduct as determined under the applicable state unemployment compensation law.
The employee becomes disabled before the 90th day. However, if the disability ends before the 90th day, the employer must offer to reemploy the former employee.
An employee is not treated as terminated if another corporation under section 381(a) acquires the corporate employer and the employee continues to be employed by the acquiring corporation. Nor is a mere change in the form of conducting the trade or business treated as a termination if the employee continues to be employed in such trade or business and the taxpayer retains a substantial interest therein.
Note: The empowerment zone credit has expired for qualified empowerment zone wages paid or incurred after 2017 and hasn't been extended.