2022 Standard Federal Tax Reporter (CCH) Committee Reports on P.L. 100-647 (Technical and Miscellaneous Revenue Act of 1988), Congress (United States)

Summary

• Committee Report: Standard Federal Tax Reporter (2022), Committee Reports on P.L. 100-647 (Technical and Miscellaneous Revenue Act of 1988)

  .034 Research expense reduction. -No deduction (under sec. 174, sec. 170, or otherwise) is allowed for that portion of the taxpayer's qualified research expenses or basic research payments otherwise allowable as a deduction for the year that equals the amount of the taxpayer's section 41 credit determined for that year. A similar rule applies where the taxpayer capitalizes, rather than expenses, qualified research expenses pursuant to section 174.

  Under the provision, the taxpayer may elect not to claim the full amount of the credit that otherwise would be available, thereby avoiding reduction of the section 174 deduction where the limitation imposed by the alternative minimum tax prevents full use of the credit.

  The provision is effective for taxable years beginning after December 31, 1988.- House Committee Report. 

   Conference Agreement. -The ...