Amendments
2022—Subsec. (h)(4)(B)(i). Pub. L. 117–169, § 13902(a), designated existing provisions as subcl. I, inserted heading, and added subcl. (II).
Subsec. (h)(5)(B)(ii). Pub. L. 117–169, § 13902(c), substituted “each of the $250,000 amounts” for “the $250,000 amount”.
2018—Subsec. (c)(4). Pub. L. 115–141, § 101(c)(1), (2), redesignated par. (5) as (4) and struck out former par. (4) which related to election of alternative incremental credit.
Subsec. (c)(4)(A). Pub. L. 115–141, § 401(b)(6), struck out “(12 percent in the case of taxable years ending before January 1, 2009)” after “14 percent”.
Subsec. (c)(4)(C). Pub. L. 115–141, § 101(c)(3), struck out at end “An election under this paragraph may not be made for any taxable year to which an election under paragraph (4) applies.”
Subsec. (c)(5) to (7). Pub. L. 115–141, § 101(c)(2), redesignated pars. (5) to (7) as (4) to (6), respectively.
2017—Subsec. (d)(1)(A). Pub. L. 115–97, § 13206(d)(1), substituted “specified research or experimental expenditures under section 174” for “expenses under section 174”.
Subsec. (e)(5)(C)(i). Pub. L. 115–97, § 11002(d)(1)(F), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
Subsec. (e)(5)(C)(ii). Pub. L. 115–97, § 11002(d)(2), substituted “1(f)(3)(A)(ii)” for “1(f)(3)(B)” and “2016” for “1992”.
2015—Subsec. (h). Pub. L. 114–113, § 121(c)(1), added subsec. (h).
Pub. L. 114–113, § 121(a)(1), struck out subsec. (h) which provided the termination date for applicability of this section and the alternative incremental credit and provided the computation for taxable year in which credit terminates.
2014—Subsec. (h)(1). Pub. L. 113–295 substituted “paid or incurred after December 31, 2014.” for “paid or incurred—
“(A) after June 30, 1995, and before July 1, 1996, or
“(B) after December 31, 2013.”
2013—Subsec. (f)(1)(A)(ii). Pub. L. 112–240, § 301(c)(1), substituted “shall be determined on a proportionate basis to its share of the aggregate of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, taken into account by such controlled group for purposes of this section” for “shall be its proportionate shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit”.
Subsec. (f)(1)(B)(ii). Pub. L. 112–240, § 301(c)(2), substituted “shall be determined on a proportionate basis to its share of the aggregate of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, taken into account by all such persons under common control for purposes of this section” for “shall be its proportionate shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit”.
Subsec. (f)(3)(A). Pub. L. 112–240, § 301(b)(1), amended subpar. (A) generally. Prior to amendment, text read as follows: “If, after December 31, 1983, a taxpayer acquires the major portion of a trade or business of another person (hereinafter in this paragraph referred to as the ‘predecessor’) or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section for any taxable year ending after such acquisition, the amount of qualified research expenses paid or incurred by the taxpayer during periods before such acquisition shall be increased by so much of such expenses paid or incurred by the predecessor with respect to the acquired trade or business as is attributable to the portion of such trade or business or separate unit acquired by the taxpayer, and the gross receipts of the taxpayer for such periods shall be increased by so much of the gross receipts of such predecessor with respect to the acquired trade or business as is attributable to such portion.”
Subsec. (f)(3)(B). Pub. L. 112–240, § 301(b)(2), amended subpar. (B) generally. Prior to amendment, text read as follows: “If, after December 31, 1983—
“(i) a taxpayer disposes of the major portion of any trade or business or the major portion of a separate unit of a trade or business in a transaction to which subparagraph (A) applies, and
“(ii) the taxpayer furnished the acquiring person such information as is necessary for the application of subparagraph (A),
then, for purposes of applying this section for any taxable year ending after such disposition, the amount of qualified research expenses paid or incurred by the taxpayer during periods before such disposition shall be decreased by so much of such expenses as is attributable to the portion of such trade or business or separate unit disposed of by the taxpayer, and the gross receipts of the taxpayer for such periods shall be decreased by so much of the gross receipts as is attributable to such portion.”
Subsec. (h)(1)(B). Pub. L. 112–240, § 301(a)(1), substituted “December 31, 2013” for “December 31, 2011”.
2010—Subsec. (h)(1)(B). Pub. L. 111–312 substituted “December 31, 2011” for “December 31, 2009”.
2008—Subsec. (c)(5)(A). Pub. L. 110–343, § 301(c), substituted “14 percent (12 percent in the case of taxable years ending before January 1, 2009)” for “12 percent”.
Subsec. (h)(1)(B). Pub. L. 110–343, § 301(a)(1), substituted “December 31, 2009” for “December 31, 2007”.
Subsec. (h)(2). Pub. L. 110–343, § 301(d), redesignated par. (3) as (2) related to computation for taxable year in which credit terminates.
Pub. L. 110–343, § 301(b), added par. (2). Former par. (2) redesignated (3).
Subsec. (h)(3). Pub. L. 110–343, § 301(d), amended par. (3) generally, redesignating it as par. (2) related to computation for taxable year in which credit terminated and amending heading and text generally. Prior to amendment, text read as follows: “In the case of any taxable year with respect to which this section applies to a number of days which is less than the total number of days in such taxable year, the base amount with respect to such taxable year shall be the amount which bears the same ratio to the base amount for such year (determined without regard to this paragraph) as the number of days in such taxable year to which this section applies bears to the total number of days in such taxable year.”
Pub. L. 110–343, § 301(b), redesignated par. (2) as (3).
2007—Subsec. (a)(3). Pub. L. 110–172, § 6(c)(1), inserted “for energy research” before period at end.
Subsec. (f)(1)(A)(ii), (B)(ii). Pub. L. 110–172, § 11(e)(2), substituted “qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums,” for “qualified research expenses and basic research payments”.
Subsec. (f)(6)(E). Pub. L. 110–172, § 6(c)(2), added subpar. (E).
2006—Subsec. (c)(4)(A)(i). Pub. L. 109–432, § 104(b)(1)(A), substituted “3 percent” for “2.65 percent”.
Subsec. (c)(4)(A)(ii). Pub. L. 109–432, § 104(b)(1)(B), substituted “4 percent” for “3.2 percent”.
Subsec. (c)(4)(A)(iii). Pub. L. 109–432, § 104(b)(1)(C), substituted “5 percent” for “3.75 percent”.
Subsec. (c)(5) to (7). Pub. L. 109–432, § 104(c)(1), added par. (5) and redesignated former pars. (5) and (6) as (6) and (7), respectively.
Subsec. (h)(1)(B). Pub. L. 109–432, § 104(a)(1), substituted “2007” for “2005”.
2005—Subsec. (a)(3). Pub. L. 109–58, § 1351(a)(1), added par. (3).
Subsec. (b)(3)(C)(ii). Pub. L. 109–135, § 402(l)(2), struck out “(other than an energy research consortium)” after “organization” in introductory provisions.
Pub. L. 109–58, § 1351(a)(3), inserted “(other than an energy research consortium)” after “organization” in introductory provisions.
Subsec. (b)(3)(D). Pub. L. 109–58, § 1351(b), added subpar. (D).
Subsec. (f)(6). Pub. L. 109–58, § 1351(a)(2), added par. (6).
Subsec. (f)(6)(C), (D). Pub. L. 109–135, § 402(l)(1), added subpars. (C) and (D).
2004—Subsec. (h)(1)(B). Pub. L. 108–311 substituted “December 31, 2005” for “June 30, 2004”.
1999—Subsec. (c)(4)(A)(i). Pub. L. 106–170, § 502(b)(1)(A), substituted “2.65 percent” for “1.65 percent”.
Subsec. (c)(4)(A)(ii). Pub. L. 106–170, § 502(b)(1)(B), substituted “3.2 percent” for “2.2 percent”.
Subsec. (c)(4)(A)(iii). Pub. L. 106–170, § 502(b)(1)(C), substituted “3.75 percent” for “2.75 percent”.
Subsecs. (c)(6), (d)(4)(F). Pub. L. 106–170, § 502(c)(1), inserted “, the Commonwealth of Puerto Rico, or any possession of the United States” before period at end.
Subsec. (h)(1). Pub. L. 106–170, § 502(a)(1)(B), struck out concluding provisions which read as follows: “Notwithstanding the preceding sentence, in the case of a taxpayer making an election under subsection (c)(4) for its first taxable year beginning after June 30, 1996, and before July 1, 1997, this section shall apply to amounts paid or incurred during the 36-month period beginning with the first month of such year. The 36 months referred to in the preceding sentence shall be reduced by the number of full months after June 1996 (and before the first month of such first taxable year) during which the taxpayer paid or incurred any amount which is taken into account in determining the credit under this section.”
Subsec. (h)(1)(B). Pub. L. 106–170, § 502(a)(1)(A), substituted “June 30, 2004” for “June 30, 1999”.
1998—Subsec. (h)(1). Pub. L. 105–277 substituted “June 30, 1999” for “June 30, 1998” in subpar. (B) and substituted “36-month” for “24-month” and “36 months” for “24 months” in concluding provisions.
1997—Subsec. (c)(4)(B). Pub. L. 105–34, § 601(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “An election under this paragraph may be made only for the first taxable year of the taxpayer beginning after June 30, 1996. Such an election shall apply to the taxable year for which made and all succeeding taxable years unless revoked with the consent of the Secretary.”
Subsec. (h)(1). Pub. L. 105–34, § 601(a), substituted “June 30, 1998” for “May 31, 1997” in subpar. (B) and “during the 24-month period beginning with the first month of such year. The 24 months referred to in the preceding sentence shall be reduced by the number of full months after June 1996 (and before the first month of such first taxable year) during which the taxpayer paid or incurred any amount which is taken into account in determining the credit under this section.” for “during the first 11 months of such taxable year.” in concluding provisions.
1996—Subsec. (b)(2)(D)(iii). Pub. L. 104–188, § 1201(e)(1), (4), substituted “work opportunity credit” for “targeted jobs credit” in heading and text.
Subsec. (b)(3)(C). Pub. L. 104–188, § 1204(d), added subpar. (C).
Subsec. (c)(3)(B)(i). Pub. L. 104–188, § 1204(b), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The fixed-base percentage shall be determined under this subparagraph if there are fewer than 3 taxable years beginning after December 31, 1983, and before January 1, 1989, in which the taxpayer had both gross receipts and qualified research expenses.”
Subsec. (c)(4) to (6). Pub. L. 104–188, § 1204(c), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively.
Subsec. (h). Pub. L. 104–188, § 1204(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows:
“(1) In general.—This section shall not apply to any amount paid or incurred after June 30, 1995.
“(2) Computation of base amount.—In the case of any taxable year which begins before July 1, 1995, and ends after June 30, 1995, the base amount with respect to such taxable year shall be the amount which bears the same ratio to the base amount for such year (determined without regard to this paragraph) as the number of days in such taxable year before July 1, 1995, bears to the total number of days in such taxable year.”
1993—Subsec. (c)(3)(B)(ii). Pub. L. 103–66, § 13112(a), amended heading and text of cl. (ii) generally. Prior to amendment, text read as follows: “In a case to which this subparagraph applies, the fixed-base percentage is 3 percent.”
Subsec. (c)(3)(B)(iii). Pub. L. 103–66, § 13112(b)(1), substituted “clauses (i) and (ii)” for “clause (i)”.
Subsec. (c)(3)(D). Pub. L. 103–66, § 13112(b)(2), substituted “subparagraphs (A) and (B)(ii)” for “subparagraph (A)”.
Subsec. (e)(5)(C). Pub. L. 103–66, § 13201(b)(3)(C), substituted “1992” for “1989” in cls. (i) and (ii).
Subsec. (h). Pub. L. 103–66, § 13111(a)(1), substituted “June 30, 1995” for “June 30, 1992” in pars. (1) and (2) and “July 1, 1995” for “July 1, 1992” in two places in par. (2).
1991—Subsec. (h). Pub. L. 102–227 substituted “June 30, 1992” for “December 31, 1991” in pars. (1) and (2), and “July 1, 1992” for “January 1, 1992” in two places in par. (2).
1990—Subsec. (e)(5)(C)(i). Pub. L. 101–508, § 11101(d)(1)(C)(i), inserted before period at end “, by substituting ‘calendar year 1987’ for ‘calendar year 1989’ in subparagraph (B) thereof”.
Subsec. (e)(5)(C)(ii). Pub. L. 101–508, § 11101(d)(1)(C)(ii), (iii), substituted “1989” for “1987” and inserted at end “Such substitution shall be in lieu of the substitution under clause (i).”
Subsec. (h). Pub. L. 101–508, § 11402(a), substituted “December 31, 1991” for “December 31, 1990” wherever appearing and “January 1, 1992” for “January 1, 1991” wherever appearing.
1989—Subsec. (a)(1)(B). Pub. L. 101–239, § 7110(b)(2)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the base period research expenses, and”.
Subsec. (b)(4). Pub. L. 101–239, § 7110(b)[(c)], added par. (4).
Subsec. (c). Pub. L. 101–239, § 7110(b)(1), substituted “Base amount” for “Base period research expenses” in heading and amended text generally, substituting pars. (1) to (5) for former pars. (1) to (3) which defined “base period research expenses” and “base period” and prescribed minimum base period research expenses.
Subsec. (e)(7)(C)(ii). Pub. L. 101–239, § 7110(b)(2)(B), substituted “base amount” for “base period research expenses”.
Subsec. (f)(1). Pub. L. 101–239, § 7110(b)(2)(C), substituted “proportionate shares of the qualified research expenses and basic research payments” for “proportionate share of the increase in qualified research expenses” in subpars. (A)(ii) and (B)(ii).
Subsec. (f)(3)(A). Pub. L. 101–239, § 7110(b)(2)(D), substituted “December 31, 1983” for “June 30, 1980” and inserted before period at end “, and the gross receipts of the taxpayer for such periods shall be increased by so much of the gross receipts of such predecessor with respect to the acquired trade or business as is attributable to such portion”.
Subsec. (f)(3)(B). Pub. L. 101–239, § 7110(b)(2)(E), substituted “December 31, 1983” for “June 30, 1980” in introductory provisions and inserted before period at end “, and the gross receipts of the taxpayer for such periods shall be decreased by so much of the gross receipts as is attributable to such portion”.
Subsec. (f)(3)(C). Pub. L. 101–239, § 7110(b)(2)(F), substituted “Certain reimbursements taken into account in determining fixed-base percentage” for “Increase in base period” in heading, “for the taxable years taken into account in computing the fixed-base percentage shall be increased by the lesser of” for “for the base period for such taxable year shall be increased by the lesser of” in introductory provisions, and new cls. (i) and (ii) for former cls. (i) and (ii) which read as follows:
“(i) the amount of the decrease under subparagraph (B) which is allocable to such base period, or
“(ii) the product of the number of years in the base period, multiplied by the amount of the reimbursement described in this subparagraph.”
Subsec. (f)(4). Pub. L. 101–239, § 7110(b)(2)(G), inserted “and gross receipts” after “qualified research expenses”.
Subsec. (h). Pub. L. 101–239, § 7814(e)(2)(C), redesignated subsec. (i) as (h) and struck out former subsec. (h) which related to election, time for election, and manner of election by taxpayer to have research credit not apply for a taxable year.
Subsec. (h)(1). Pub. L. 101–239, § 7110(a)(1)(A), substituted “December 31, 1990” for “December 31, 1989”.
Subsec. (h)(2). Pub. L. 101–239, § 7110(a)(1), substituted “January 1, 1991” for “January 1, 1990” in two places and substituted “December 31, 1990” for “December 31, 1989”.
Pub. L. 101–239, § 7110(b)(2)(H), substituted “base amount” for “base period expenses” in heading and “the base amount with respect to such taxable year shall be the amount which bears the same ratio to the base amount for such year (determined without regard to this paragraph)” for “any amount for any base period with respect to such taxable year shall be the amount which bears the same ratio to such amount for such base period” in text.
Subsec. (i). Pub. L. 101–239, § 7814(e)(2)(C), redesignated subsec. (i) as (h).
1988—Subsec. (g). Pub. L. 100–647, § 1002(h)(1), inserted at end “If the amount determined under subsection (a) for any taxable year exceeds the limitation of the preceding sentence, such amount may be carried to other taxable years under the rules of section 39; except that the limitation of the preceding sentence shall be taken into account in lieu of the limitation of section 38(c) in applying section 39.”
Subsec. (h). Pub. L. 100–647, § 4008(b)(1), added subsec. (h). Former subsec. (h) redesignated (i).
Subsec. (i). Pub. L. 100–647, § 4008(b)(1), redesignated former subsec. (h) as (i).
Pub. L. 100–647, § 4007(a), substituted “1989” and “1990” for “1988” and “1989”, respectively, wherever appearing in subsec. (h), prior to redesignation as subsec. (i) by Pub. L. 100–647, § 4008(b)(1).
1986—Pub. L. 99–514, § 231(d)(2), renumbered section 30 of this title as this section.
Subsec. (a). Pub. L. 99–514, § 231(c)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 25 percent of the excess (if any) of—
“(1) the qualified research expenses for the taxable year, over
“(2) the base period research expenses.”
Subsec. (b)(2)(A)(iii). Pub. L. 99–514, § 231(e), amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “any amount paid or incurred to another person for the right to use personal property in the conduct of qualified research.”
Subsec. (b)(2)(D)(iii). Pub. L. 99–514, § 1847(b)(1), substituted “targeted jobs credit” for “new jobs or WIN credit” in heading.
Subsec. (d). Pub. L. 99–514, § 231(b), inserted “defined” in heading and amended text generally. Prior to amendment, text read as follows: “For purposes of this section the term ‘qualified research’ has the same meaning as the term research or experimental has under section 174, except that such term shall not include—
“(1) qualified research conducted outside the United States,
“(2) qualified research in the social sciences or humanities, and
“(3) qualified research to the extent funded by any grant, contract, or otherwise by another person (or any governmental entity).”
Subsec. (e). Pub. L. 99–514, § 231(c)(2), amended subsec. (e) generally, substituting “Credit allowable with respect to certain payments to qualified organizations for basic research” for “Credit available with respect to certain basic research by colleges, universities, and certain research organizations” in heading, and restating and expanding provisions of former pars. (1) to (4) into new pars. (1) to (7).
Subsec. (g). Pub. L. 99–514, § 231(d)(3)(C)(ii), amended subsec. (g) generally, substituting provisions relating to special rule for pass-thru of credit for provisions relating to limitation on amount of credit for research based on amount of tax liability.
Subsec. (h). Pub. L. 99–514, § 231(a)(1), added subsec. (h).
1984—Pub. L. 98–369, § 471(c), renumbered section 44F of this title as this section.
Subsec. (b)(2)(D)(iii). Pub. L. 98–369, § 474(i)(1)(A), substituted “in determining the targeted jobs credit under section 51(a)” for “in computing the credit under section 40 or 44B”.
Subsec. (g)(1)(A). Pub. L. 98–369, § 612(e)(1), substituted “section 26(b)” for “section 25(b)”.
Pub. L. 98–369, § 474(i)(1)(B), amended subpar. (A) generally, substituting “shall not exceed the taxpayer’s tax liability for the taxable year (as defined in section 25(b)), reduced by the sum of the credits allowable under subpart A and sections 27, 28, and 29” for “shall not exceed the amount of the tax imposed by this chapter reduced by the sum of the credits allowable under a section of this part having a lower number or letter designation than this section, other than the credits allowable by sections 31, 39, and 43. For purposes of the preceding sentence, the term ‘tax imposed by this chapter’ shall not include any tax treated as not imposed by this chapter under the last sentence of section 53(a)”.
1983—Subsec. (b)(2)(A). Pub. L. 97–448 inserted provision that cl. (iii) would not apply to any amount to the extent that the taxpayer (or any person with whom the taxpayer must aggregate expenditures under subsection (f)(1)) received or accrued any amount from any other person for the right to use substantially identical personal property.
1982—Subsec. (f)(2)(A). Pub. L. 97–354, § 5(a)(3)(A), substituted “Pass-thru in the case of estates and trusts” for “Pass-through in the case of subchapter S corporations, etc.” in subpar. heading, and substituted provisions relating to the applicability of rules similar to rules of subsec. (d) of section 52 for provisions relating to the applicability of rules similar to rules of subsecs. (d) and (e) of section 52.
Subsec. (g)(1)(B)(iv). Pub. L. 97–354, § 5(a)(3)(B), substituted “an S corporation” for “an electing small business corporation (within the meaning of section 1371(b))”.