26 USC 280C - Certain expenses for which credits are allowable

U.S Code last checked for updates: Nov 22, 2024

§ 280C.

Certain expenses for which credits are allowable

(a)

Rule for employment credits

(b)

Credit for qualified clinical testing expenses for certain drugs

(1)

In general

(2)

Similar rule where taxpayer capitalizes rather than deducts expenses

If—

(A)

the amount of the credit allowable for the taxable year under section 45C (determined without regard to section 38(c)), exceeds

(B)

the amount allowable as a deduction for the taxable year for qualified clinical testing expenses (determined without regard to paragraph (1)),

the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess.

(3)

Election of reduced credit

(A)

In general

In the case of any taxable year for which an election is made under this paragraph—

(i)

paragraphs (1) and (2) shall not apply, and

(ii)

the amount of the credit under section 45C(a) shall be the amount determined under subparagraph (B).

(B)

Amount of reduced credit

The amount of credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of—

(i)

the amount of credit determined under section 45C(a) without regard to this paragraph, over

(ii)

the product of—

(I)

the amount described in clause (i), and

(II)

the maximum rate of tax under section 11(b).

(C)

Election

(4)

Controlled groups

(c)

Credit for increasing research activities

(1)

In general

If—

(A)

the amount of the credit determined for the taxable year under section 41(a)(1), exceeds

(B)

the amount allowable as a deduction for such taxable year for qualified research expenses or basic research expenses,

the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess.

(2)

Election of reduced credit

(A)

In general

In the case of any taxable year for which an election is made under this paragraph—

(i)

paragraph (1) shall not apply, and

(ii)

the amount of the credit under section 41(a) shall be the amount determined under subparagraph (B).

(B)

Amount of reduced credit

The amount of credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of—

(i)

the amount of credit determined under section 41(a) without regard to this paragraph, over

(ii)

the product of—

(I)

the amount described in clause (i), and

(II)

the maximum rate of tax under section 11(b).

(C)

Election

(3)

Controlled groups

(d)

Credit for low sulfur diesel fuel production

(e)

Mine rescue team training credit

(f)

Credit for security of agricultural chemicals

(g)

Credit for health insurance premiums

(h)

Credit for employee health insurance expenses of small employers

(Added Pub. L. 95–30, title II, § 202(c)(1), May 23, 1977, 91 Stat. 147; amended Pub. L. 95–600, title III, § 322(d)(1), Nov. 6, 1978, 92 Stat. 2838; Pub. L. 96–178, § 6(c)(4), Jan. 2, 1980, 93 Stat. 1298; Pub. L. 96–222, title I, § 103(a)(7)(D)(iv), Apr. 1, 1980, 94 Stat. 212; Pub. L. 97–414, § 4(b)(1), (2)(A), Jan. 4, 1983, 96 Stat. 2055; Pub. L. 98–369, div. A, title IV, § 474(r)(10), July 18, 1984, 98 Stat. 841; Pub. L. 99–514, title II, § 231(d)(3)(E), title XVIII, § 1847(b)(8), Oct. 22, 1986, 100 Stat. 2179, 2856; Pub. L. 100–647, title IV, § 4008(a), Nov. 10, 1988, 102 Stat. 3652; Pub. L. 101–239, title VII, §§ 7110(c)(1), 7814(e)(2)(A), Dec. 19, 1989, 103 Stat. 2325, 2413; Pub. L. 103–66, title XIII, §§ 13302(b)(1), 13322(c)(1), Aug. 10, 1993, 107 Stat. 555, 563; Pub. L. 104–188, title I, § 1205(d)(7), Aug. 20, 1996, 110 Stat. 1776; Pub. L. 106–170, title V, § 502(c)(2), Dec. 17, 1999, 113 Stat. 1919; Pub. L. 106–554, § 1(a)(7) [title III, § 311(a)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–639; Pub. L. 108–357, title III, § 339(c), Oct. 22, 2004, 118 Stat. 1484; Pub. L. 109–135, title I, § 103(b)(2), title II, § 201(b)(2), Dec. 21, 2005, 119 Stat. 2595, 2607; Pub. L. 109–432, div. A, title IV, § 405(c), Dec. 20, 2006, 120 Stat. 2957; Pub. L. 110–172, § 7(a)(1)(B), Dec. 29, 2007, 121 Stat. 2481; Pub. L. 110–234, title XV, § 15343(c), May 22, 2008, 122 Stat. 1519; Pub. L. 110–245, title I, § 111(c), June 17, 2008, 122 Stat. 1635; Pub. L. 110–246, § 4(a), title XV, § 15343(c), June 18, 2008, 122 Stat. 1664, 2281; Pub. L. 111–148, title I, §§ 1401(b), 1421(d)(1), title IX, § 9023(c)(2), title X, § 10105(e)(3), Mar. 23, 2010, 124 Stat. 219, 242, 880, 906; Pub. L. 115–97, title I, §§ 13001(b)(1)(A), 13206(d)(2), 13401(b), 13403(d)(1), Dec. 22, 2017, 131 Stat. 2096, 2112, 2133, 2137; Pub. L. 115–141, div. U, title IV, § 401(a)(62), (d)(3)(B)(iii), (6)(B)(iv), Mar. 23, 2018, 132 Stat. 1187, 1209, 1211.)

cite as: 26 USC 280C