26 USC 280C - Certain expenses for which credits are allowable
(a) Rule for employment credits
No deduction shall be allowed for that portion of the wages or salaries paid or incurred for the taxable year which is equal to the sum of the credits determined for the taxable year under sections 45A (a), 51 (a), and[1] 1396(a), 1400P(b), and 1400R. In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 52 (a)) or a trade or business which is treated as being under common control with other trades or businesses (within the meaning of section 52 (b)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subsections (a) and (b) of section 52.
No deduction shall be allowed for that portion of the wages or salaries paid or incurred for the taxable year which is equal to the sum of the credits determined for the taxable year under sections 45A (a), 51 (a), and[1] 1396(a), 1400P(b), and 1400R. In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 52 (a)) or a trade or business which is treated as being under common control with other trades or businesses (within the meaning of section 52 (b)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subsections (a) and (b) of section 52.
(b) Credit for qualified clinical testing expenses for certain drugs
(1) In general
No deduction shall be allowed for that portion of the qualified clinical testing expenses (as defined in section 45C (b)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 45C (determined without regard to section 38 (c)).
No deduction shall be allowed for that portion of the qualified clinical testing expenses (as defined in section 45C (b)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 45C (determined without regard to section 38 (c)).
(2) Similar rule where taxpayer capitalizes rather than deducts expenses
If
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) Controlled groups
In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 41 (f)(5)) or a trade or business which is treated as being under common control with other trades or business (within the meaning of section 41 (f)(1)(B)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subparagraphs (A) and (B) of section 41 (f)(1).
In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 41 (f)(5)) or a trade or business which is treated as being under common control with other trades or business (within the meaning of section 41 (f)(1)(B)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subparagraphs (A) and (B) of section 41 (f)(1).
(c) Credit for increasing research activities
(1) In general
No deduction shall be allowed for that portion of the qualified research expenses (as defined in section 41 (b)) or basic research expenses (as defined in section 41 (e)(2)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 41 (a).
No deduction shall be allowed for that portion of the qualified research expenses (as defined in section 41 (b)) or basic research expenses (as defined in section 41 (e)(2)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 41 (a).
(2) Similar rule where taxpayer capitalizes rather than deducts expenses
If
If
(B) the amount allowable as a deduction for such taxable year for qualified research expenses or basic research 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
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
(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
The amount of credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of
(C) Election
An election under this paragraph for any taxable year shall be made not later than the time for filing the return of tax for such year (including extensions), shall be made on such return, and shall be made in such manner as the Secretary may prescribe. Such an election, once made, shall be irrevocable.
An election under this paragraph for any taxable year shall be made not later than the time for filing the return of tax for such year (including extensions), shall be made on such return, and shall be made in such manner as the Secretary may prescribe. Such an election, once made, shall be irrevocable.
(4) Controlled groups
Paragraph (3) of subsection (b) shall apply for purposes of this subsection.
Paragraph (3) of subsection (b) shall apply for purposes of this subsection.
[1] So in original. The word “and” probably should not appear.