Amended 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369 amended section generally, substituting provisions relating to deduction for certain unused business credits for provisions relating to deduction for certain unused investment credits.
Cases: B.F. Goodrich Co. v. United States, 94 F.3d 1545 (Fed. Cir. 1996)
(a) Allowance of deduction If any portion of the qualified business credits determined for any taxable year has not, after the application of section 38(c), been allowed to the taxpayer as a credit under section 38 for any taxable year, an amount equal to the credit not so allowed shall be allowed to the taxpayer as a deduction for the first taxable year following the last taxable year for which such credit could, under section 39, have been allowed as a credit.
Cases: TelecomUSA, Inc. v. United States, 192 F.3d 1068 (D.C. Cir. 1999)
Cited by 2
(b) Taxpayer’s dying or ceasing to exist If a taxpayer dies or ceases to exist before the first taxable year following the last taxable year for which the qualified business credits could, under section 39, have been allowed as a credit, the amount described in subsection (a) (or the proper portion thereof) shall, under regulations prescribed by the Secretary, be allowed to the taxpayer as a deduction for the taxable year in which such death or cessation occurs.
(c) Qualified business credits For purposes of this section, the term “qualified business credits” means—
(1) the investment credit determined under section 46 (but only to the extent attributable to property the basis of which is reduced by section 50(c)),
Amended 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11813(b)(12)(A), substituted “section 46” for “section 46(a)” and “section 50(c)” for “section 48(q)”.
(2) the work opportunity credit determined under section 51(a),
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188 substituted “work opportunity credit” for “targeted jobs credit”.
(3) the alcohol fuels credit determined under section 40(a),
(4) the research credit determined under section 41(a) (other than such credit determined under section 280C(c)(3)) [OLRC note: See References in Text note below.] for taxable years beginning after December 31, 1988,
Amended 1988, 1989
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7814(e)(2)(D), inserted “(other than such credit determined under section 280C(c)(3))” after “section 41(a)”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 4008(b)(2)(A), added par. (4).
(5) the enhanced oil recovery credit determined under section 43(a),
Amended 1990
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11511(b)(3), added par. (5).
(6) the empowerment zone employment credit determined under section 1396(a),
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13302(b)(2), added par. (6).
(7) the Indian employment credit determined under section 45A(a),
Amended 1993
- 1993 Pub. L. 103-66 Pub. L. 103–66, § 13322(c)(2), added par. (7).
(8) the employer Social Security credit determined under section 45B(a),
Amended 1998
- 1998 Pub. L. 105-206 Pub. L. 105–206 added par. (8).
(9) the new markets tax credit determined under section 45D(a),
Amended 2000
- 2000 Pub. L. 106-554 Pub. L. 106–554 added par. (9).
(10) the small employer pension plan startup cost credit determined under section 45E(a),
Amended 2001
- 2001 Pub. L. 107-16 Pub. L. 107–16 added par. (10).
(11) the biodiesel fuels credit determined under section 40A(a),
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 302(c)(2), added par. (11).
(12) the low sulfur diesel fuel production credit determined under section 45H(a),
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357, § 339(e), added par. (12).
(13) the new energy efficient home credit determined under section 45L(a), and
Amended 2005
- 2005 Pub. L. 109-58 Pub. L. 109–58 added par. (13).
(14) the small employer health insurance credit determined under section 45R(a).
Amended 2010
- 2010 Pub. L. 111-148 Pub. L. 111–148 added par. (14).
(d) Special rule for investment tax credit Subsection (a) shall be applied by substituting “an amount equal to 50 percent of” for “an amount equal to” in the case of the investment credit determined under section 46 (other than the rehabilitation credit).
Amended 1988, 1989, 1990, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141, in heading, struck out “and research credit” after “tax credit” and, in text, substituted “in the case of the investment credit determined under section 46 (other than the rehabilitation credit).” for “in the case of—
“(1) the investment credit determined under section 46 (other than the rehabilitation credit), and
“(2) the research credit determined under section 41(a) for a taxable year beginning before January 1, 1990.”
- 1990 Pub. L. 101-508 Pub. L. 101–508, § 11813(b)(12)(B), substituted “section 46” for “section 46(a)” and “other than the rehabilitation credit” for “other than a credit to which section 48(q)(3) applies”.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7814(e)(1), substituted “substituting ‘an amount equal to 50 percent of’ for ‘an amount equal to’ in the case of” for “substituting an amount equal to 50 percent of for an amount equal to in the case of” in introductory provisions.
- 1989 Pub. L. 101-239 Pub. L. 101–239, § 7110(c)(2), inserted “for a taxable year beginning before January 1, 1990” after “under section 41(a)”.
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 4008(b)(2)(B), inserted “and research credit” after “tax credit” in heading and amended text generally. Prior to amendment, text read as follows: “In the case of the investment credit determined under section 46(a) (other than a credit to which section 48(q)(3) applies), subsection (a) shall be applied by substituting ‘an amount equal to 50 percent of’ for ‘an amount equal to’.”