§ 280C. Certain expenses for which credits are allowable

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1977

   Tax Reduction and Simplification Act of 1977

   Pub. L. 95–30 title II § 202(c)(1) · 91 Stat. 126

   Enacted · 26 U.S.C. § 280C

   Added Pub. L. 95–30, title II, § 202(c)(1), May 23, 1977, 91 Stat. 147

   Source evidence

   Code source credit
   Added Pub. L. 95–30, title II, § 202(c)(1), May 23, 1977, 91 Stat. 147

   Enacted provision · exact public law section
   (1) In general.— Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end thereof the following new section: “SEC. 280C. PORTION OF WAGES FOR WHICH CREDIT IS CLAIMED UNDER SECTION 44B. “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 amount of the credit allowable for the taxable year under section 44B (relating to credit for employment of certain new employees) determined without regard to the provisions of section 53 (relating to limitation based Ante, p. 146. on amount of tax). 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 Ante, p. 143. with other trades or businesses (within the meaning of section 52(b)), this section shall lie applied under rules prescribed by the Secretary similar to the rules applicable under subsections (a) and (b) of section 52.”.

2. 1978

   Pub. L. 95–600 title III § 322(d)(1) · 92 Stat. 2763

   1. Amended · 26 U.S.C. § 280C

      Pub. L. 95–600, as amended by Pub. L. 96–178 and Pub. L. 96–222

   2. Substituted · 26 U.S.C. § 280C

      Pub. L. 95–600, as substituted “section 40 or 44B” for “section 44B” in section catchline, and in text designated existing provisions as subsec. (b)

   3. Added · 26 U.S.C. § 280C

      Pub. L. 95–600, as added subsec. (a)

   Source evidence

   Code amendment note
   Pub. L. 95–600, as amended by Pub. L. 96–178 and Pub. L. 96–222, substituted “section 40 or 44B” for “section 44B” in section catchline, and in text designated existing provisions as subsec. (b) and added subsec. (a).

   Enacted provision · exact public law section
   (1) Subsection (a) of section 50B (relating to work incentive 26 USC 50B. program expenses) is amended to read as follows: “(a) Work Incentive Program Expenses.— For purposes of this subpart— “(1) In general.— The term ‘work incentive program expenses’ means the amount of wages paid or incurred by the taxpayer for services rendered by eligible employees. “(2) First-year work incentive program expenses.— The term ‘first-year work incentive program expenses’ means, with respect to any eligible employee, work incentive program expenses attributable to service rendered during the one-year period which begins on the day the eligible employee begins work for the taxpayer. “(3) Second-year work incentive program expenses.— The term ‘second-year work incentive program expenses’ means, with respect to any eligible employee, work incentive program expenses attributable to service rendered during the one-year period which begins on the day after the last day of the one-year period described in paragraph (2). “(4) Limitation on amount of work incentive program expenses.— The amount of the work incentive program expenses taken into account with respect to any eligible employee for any one-year period described in paragraph (2) or (3) (as the case may be) shall not exceed $6,000.”

3. 1983

   Pub. L. 97–414 § 4(b)(2)(A) · 96 Stat. 2049

   Substituted · 26 U.S.C. § 280C

   Pub. L. 97–414, § 4(b)(2)(A), substituted “Certain expenses for which credits are allowable” for “Portion of wages for which credit is claimed under section 40 or 44B” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 97–414, § 4(b)(2)(A), substituted “Certain expenses for which credits are allowable” for “Portion of wages for which credit is claimed under section 40 or 44B” in section catchline.

   Enacted provision · exact public law section
   (A) The section heading of section 280C of such Code is amended to read as follows: “SEC. 280C. CERTAIN EXPENSES FOR WHICH CREDITS ARE ALLOWABLE.”

4. 1983

   Pub. L. 97–414 § 4(b)(1) · 96 Stat. 2049

   Added · 26 U.S.C. § 280C(c)

   Pub. L. 97–414, § 4(b)(1), added subsec. (c)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 97–414, § 4(b)(1), added subsec. (c).

   Enacted provision · exact public law section
   (1) Section 280C of such Code (relating to denial of deduction for 26 USC 280c. portion of wages for which credit is claimed under section 40 or 44B) is amended by adding at the end thereof the following new subsection: “(c) Credit for Quaufied Cunical 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 44H(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 44H (determined without regard to subsection (d)(2) thereof). “(2) Similar rule where taxpayer capitalizes rather than deducts expenses.— If— “(A) the amount of the credit allowable for the taxable year under section 44H (determined without regard to subsection (d)(2) thereof), exceeds “(B) the amount allowable as a deduction for the taxable year for qualified clinical testing expenses (determined without regard to paragraph (D), 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 44F(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 44F(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 44F(f)(1).”

5. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 474(r)(10)(A) · 98 Stat. 494

   Redesignated · 26 U.S.C. § 280C(a)

   Pub. L. 98–369, § 474(r)(10)(A), (B), redesignated subsec. (b) as (a), in heading substituted “targeted jobs credit” for “section 44B credit”, and in text substituted “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 amount of the credit determined for the taxable year under section 51(a)” for “No deduction shall be allowed for that portion of the wage or salaries paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 44B (relating to credit for employment of certain new employees) determined without regard to the provisions of section 53 (relating to limitation based on amount of tax)”. Former subsec. (a), which had provided that no deduction would be allowed for that portion of the work incentive program expenses paid or incurred for the taxable year which was equal to the amount of the credit allowable for the taxable year under section 40 (relating to credit for expenses of work incentive programs) determined without regard to the provisions of section 50A(a)(2) (relating to limitation based on amount of tax), and that in the case of a corporation which was a member of a controlled group of corporations (within the meaning of section 50B(g)(1) or a trade or business which was treated as being under common control with other trades or businesses within the meaning of section 50B(g)(2), this subsection would be applied under rules prescribed by the Secretary similar to the rules applicable under paragraphs (1) and (2) of section 50B(g), was struck out

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 98–369, § 474(r)(10)(A), (B), redesignated subsec. (b) as (a), in heading substituted “targeted jobs credit” for “section 44B credit”, and in text substituted “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 amount of the credit determined for the taxable year under section 51(a)” for “No deduction shall be allowed for that portion of the wage or salaries paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 44B (relating to credit for employment of certain new employees) determined without regard to the provisions of section 53 (relating to limitation based on amount of tax)”. Former subsec. (a), which had provided that no deduction would be allowed for that portion of the work incentive program expenses paid or incurred for the taxable year which was equal to the amount of the credit allowable for the taxable year under section 40 (relating to credit for expenses of work incentive programs) determined without regard to the provisions of section 50A(a)(2) (relating to limitation based on amount of tax), and that in the case of a corporation which was a member of a controlled group of corporations (within the meaning of section 50B(g)(1) or a trade or business which was treated as being under common control with other trades or businesses within the meaning of section 50B(g)(2), this subsection would be applied under rules prescribed by the Secretary similar to the rules applicable under paragraphs (1) and (2) of section 50B(g), was struck out.

   Enacted provision · exact public law section
   (A) Section 280C (relating to certain expenses for which 26 USC 280C. credits are allowable) is amended by striking out subsection (a) and by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

6. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 474(r)(10)(A) · 98 Stat. 494

   Redesignated · 26 U.S.C. § 280C(b)

   Pub. L. 98–369, § 474(r)(10)(A), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a)

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 98–369, § 474(r)(10)(A), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a).

   Enacted provision · exact public law section
   (A) Section 280C (relating to certain expenses for which 26 USC 280C. credits are allowable) is amended by striking out subsection (a) and by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

7. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 474(r)(10)(C) · 98 Stat. 494

   Substituted · 26 U.S.C. § 280C(b)(1); 26 U.S.C. § 280C(2)(A)

   Pub. L. 98–369, § 474(r)(10)(C), substituted “29” for “44H”

   Source evidence

   Code amendment note
   Subsec. (b)(1), (2)(A). Pub. L. 98–369, § 474(r)(10)(C), substituted “29” for “44H”.

   Enacted provision · exact public law section
   (C) Subsection (b) of section 280C (as so redesignated) is amended by striking out “44H” each place it appears and inserting in lieu thereof “29”.

8. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 474(r)(10)(D) · 98 Stat. 494

   1. Substituted · 26 U.S.C. § 280C(b)(3)

      Pub. L. 98–369, § 474(r)(10)(D), substituted “section 30(f)(5)” for “section 44F(f)(5)”

   2. Substituted · 26 U.S.C. § 280C(b)(3)

      Pub. L. 98–369, § 474(r)(10)(D), substituted “section 30(f)(1)(B)” for “section 44F(f)(1)(B)”

   3. Substituted · 26 U.S.C. § 280C(b)(3)

      Pub. L. 98–369, § 474(r)(10)(D), substituted “section 30(f)(1)” for “section 44F(f)(1)”

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 98–369, § 474(r)(10)(D), substituted “section 30(f)(5)” for “section 44F(f)(5)”, “section 30(f)(1)(B)” for “section 44F(f)(1)(B)”, and “section 30(f)(1)” for “section 44F(f)(1)”.

   Enacted provision · exact public law section
   (D) Paragraph (3) of section 280C(b) (as so redesignated) is amended— (i) by striking out “section 44F(f)(5)” and inserting in lieu thereof “section 30(f)(5)”, (ii) by striking out “section 44F(f)(1)(B)” and inserting in lieu thereof “section 30(f)(1)(B)”, (iii) by striking out “section 44F(f)(1)” and inserting in lieu thereof “section 30(f)(1)”.

9. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 474(r)(10)(A) · 98 Stat. 494

   Redesignated · 26 U.S.C. § 280C(c)

   Pub. L. 98–369, § 474(r)(10)(A), redesignated subsec. (c) as (b)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 98–369, § 474(r)(10)(A), redesignated subsec. (c) as (b).

   Enacted provision · exact public law section
   (A) Section 280C (relating to certain expenses for which 26 USC 280C. credits are allowable) is amended by striking out subsection (a) and by redesignating subsections (b) and (c) as subsections (a) and (b), respectively.

10. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1847(b)(8) · 100 Stat. 2085

    1. Substituted · 26 U.S.C. § 280C(b)(1); 26 U.S.C. § 280C(2)(A)

       Pub. L. 99–514, § 1847(b)(8), substituted “section 28(b)” for “section 29(b)” in pars. (1) and (2)(A)

    2. Substituted · 26 U.S.C. § 280C(b)(1); 26 U.S.C. § 280C(2)(A)

       Pub. L. 99–514, § 1847(b)(8), substituted “section 28” for “section 29” in pars. (1) and (2)(A)

    Source evidence

    Code amendment note
    Subsec. (b)(1), (2)(A). Pub. L. 99–514, § 1847(b)(8), substituted “section 28(b)” for “section 29(b)” in par. (1) and “section 28” for “section 29” in pars. (1) and (2)(A).

    Enacted provision · exact public law section
    (8) Subsection (b) of section 280C is amended— (A) by striking out “section 29” each place it appears and inserting in lieu thereof “section 28”, and (B) by striking out “section 29(b)” and inserting in lieu thereof “section 28(b)”.

11. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 231(d)(3)(E) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 280C(b)(3)

    Pub. L. 99–514, § 231(d)(3)(E), substituted “section 41(f)(5)”, “section 41(f)(1)(B)”, and “section 41(f)(1)” for “section 30(f)(5)”, “section 30(f)(1)(B)”, and “section 30(f)(1)”, respectively

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 99–514, § 231(d)(3)(E), substituted “section 41(f)(5)”, “section 41(f)(1)(B)”, and “section 41(f)(1)” for “section 30(f)(5)”, “section 30(f)(1)(B)”, and “section 30(f)(1)”, respectively.

    Enacted provision · exact public law section
    (E) Paragraph (3) of section 2800(b) is amended— (i) by striking out “section 30(f)(5)” and inserting in lieu thereof “section 41(f)(5)”, (ii) by striking out “section 30(f)(1)(B)” and inserting in lieu thereof “section 41(f)(1)(B)”, and (iii) by striking out “section 30(f)(5)” and inserting in lieu thereof “section 41(f)(5)”.

12. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 title IV § 4008(a) · 102 Stat. 3342

    Added · 26 U.S.C. § 280C(c)

    Pub. L. 100–647 added subsec. (c)

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 100–647 added subsec. (c).

    Enacted provision · exact public law section
    (a) In General.— Section 280C of the 1986 Code (relating to certain expenses for which credits are allowable) is amended by adding at the end thereof the following new subsection: “(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 50 percent of 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— “(A) 50 percent of 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 (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.— Paragraph (3) of subsection (b) shall apply for purposes of this subsection.”

13. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7110(c)(1) · 103 Stat. 2106

    Struck · 26 U.S.C. § 280C(c)(1); 26 U.S.C. § 280C(2)(A)

    Pub. L. 101–239, § 7110(c)(1), struck out “50 percent of” before “the amount of the credit”

    Source evidence

    Code amendment note
    Subsec. (c)(1), (2)(A). Pub. L. 101–239, § 7110(c)(1), struck out “50 percent of” before “the amount of the credit”.

    Enacted provision · exact public law section
    (1) Subsection (c) of section 280C, as amended by subtitle H, is further amended by striking “50 percent of” each place it appears.

14. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7814(e)(2)(A) · 103 Stat. 2106

    Redesignated · 26 U.S.C. § 280C(c)(3)

    Pub. L. 101–239, § 7814(e)(2)(A), added par. (3). Former par. (3) redesignated (4)

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 101–239, § 7814(e)(2)(A), added par. (3). Former par. (3) redesignated (4).

    Enacted provision · exact public law section
    (A) Subsection (c) of section 280C is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(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 41(a) shall be the amount determined under subparagraph (B). “(B) Amount of reduced credit.— The amount or 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) 50 percent of the amount described in clause (i), and “(II) the maximum rate of tax under section 11(b)(1). “(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.”

15. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7110(c)(1) · 103 Stat. 2106

    Struck · 26 U.S.C. § 280C(c)(3)(B)(ii)(I)

    Pub. L. 101–239, § 7110(c)(1), struck out “50 percent of” before “the amount described”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(B)(ii)(I). Pub. L. 101–239, § 7110(c)(1), struck out “50 percent of” before “the amount described”.

    Enacted provision · exact public law section
    (1) Subsection (c) of section 280C, as amended by subtitle H, is further amended by striking “50 percent of” each place it appears.

16. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 § 7814(e)(2)(A) · 103 Stat. 2106

    Redesignated · 26 U.S.C. § 280C(c)(4)

    Pub. L. 101–239, § 7814(e)(2)(A), redesignated par. (3) as (4)

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 101–239, § 7814(e)(2)(A), redesignated par. (3) as (4).

    Enacted provision · exact public law section
    (A) Subsection (c) of section 280C is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(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 41(a) shall be the amount determined under subparagraph (B). “(B) Amount of reduced credit.— The amount or 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) 50 percent of the amount described in clause (i), and “(II) the maximum rate of tax under section 11(b)(1). “(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.”

17. 1993

    Revenue Reconciliation Act of 1993

    Pub. L. 103–66 § 13322(c)(1) · 107 Stat. 312

    Substituted · 26 U.S.C. § 280C(a)

    Pub. L. 103–66, § 13322(c)(1), substituted “45A(a), 51(a), and” for “51(a)”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 103–66, § 13322(c)(1), substituted “45A(a), 51(a), and” for “51(a)”.

    Enacted provision · exact public law section
    (1) Subsection (a) of section 280C (relating to rule for targeted jobs credit) is amended by striking “51(a)” and inserting “45A(a), 51(a), and”.

18. 1993

    Revenue Reconciliation Act of 1993

    Pub. L. 103–66 § 13302(b)(1) · 107 Stat. 312

    1. Substituted · 26 U.S.C. § 280C(a)

       Pub. L. 103–66, § 13302(b)(1), substituted “Rule for employment credits” for “Rule for targeted jobs credit” in text

    2. Substituted · 26 U.S.C. § 280C(a)

       Pub. L. 103–66, § 13302(b)(1), substituted “the sum of the credits determined for the taxable year under sections 51(a) and 1396(a)” for “the amount of the credit determined for the taxable year under section 51(a)” in text

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 103–66, § 13302(b)(1), substituted “Rule for employment credits” for “Rule for targeted jobs credit” in heading and “the sum of the credits determined for the taxable year under sections 51(a) and 1396(a)” for “the amount of the credit determined for the taxable year under section 51(a)” in text.

    Enacted provision · exact public law section
    (1) Subsection (a) of section 280C (relating to rule for targeted jobs credit) is amended— (A) by striking “the amount of the credit determined for the taxable year under section 51(a)” and inserting “the sum of the credits determined for the taxable year under sections 51(a) and 1396(a)”, and (B) by striking “Targeted Jobs Credit” in the subsection heading and inserting “Employment Credits”.

19. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1205(d)(7) · 110 Stat. 1755

    1. Substituted · 26 U.S.C. § 280C(b)(1)

       Pub. L. 104–188, § 1205(d)(7), substituted “section 45C(b)” for “section 28(b)”

    2. Substituted · 26 U.S.C. § 280C(b)(1)

       Pub. L. 104–188, § 1205(d)(7), substituted “section 45C” for “section 28”

    3. Substituted · 26 U.S.C. § 280C(b)(1)

       Pub. L. 104–188, § 1205(d)(7), substituted “section 38(c)” for “subsection (d)(2) thereof”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 104–188, § 1205(d)(7), substituted “section 45C(b)” for “section 28(b)”, “section 45C” for “section 28”, and “section 38(c)” for “subsection (d)(2) thereof”.

    Enacted provision · exact public law section
    (7) Section 280C(b) is amended— (A) by striking “section 28(b)” in paragraph (1) and inserting “section 45C(b)”, (B) by striking “section 28” in paragraphs (1) and (2)(A) and inserting “section 45C”, and (C) by striking “subsection (d)(2) thereof” in paragraphs (1) and (2)(A) and inserting “section 38(c)”.

20. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1205(d)(7)(B) · 110 Stat. 1755

    1. Substituted · 26 U.S.C. § 280C(b)(2)(A)

       Pub. L. 104–188, § 1205(d)(7)(B), (C), substituted “section 45C” for “section 28”

    2. Substituted · 26 U.S.C. § 280C(b)(2)(A)

       Pub. L. 104–188, § 1205(d)(7)(B), (C), substituted “section 38(c)” for “subsection (d)(2) thereof”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(A). Pub. L. 104–188, § 1205(d)(7)(B), (C), substituted “section 45C” for “section 28” and “section 38(c)” for “subsection (d)(2) thereof”.

    Enacted provision · exact public law section
    (B) by striking “section 28” in paragraphs (1) and (2)(A) and inserting “section 45C”, and

21. 1999

    Tax Relief Extension Act of 1999

    Pub. L. 106–170 title V § 502(c)(2) · 113 Stat. 1860

    Inserted · 26 U.S.C. § 280C(c)(1)

    Pub. L. 106–170 inserted “or credit” after “deduction” in two places

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 106–170 inserted “or credit” after “deduction” in two places.

    Enacted provision · exact public law section
    (2) Denial of double benefit.— Section 280C(c)( 1) of such 26 USC 280C. Code is amended by inserting “or credit” after “deduction” each place it appears.

22. 2000

    Consolidated Appropriations Act, 2001

    Pub. L. 106–554 § 1(a)(7)(tIII)(s311)(a)(1) · 114 Stat. 2763

    Struck · 26 U.S.C. § 280C(c)(1)

    Pub. L. 106–554 struck out “or credit” after “deduction” in two places

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 106–554 struck out “or credit” after “deduction” in two places.

    Enacted provision · exact public law section
    (7) H.R. 5662, as introduced on December 14, 2000.

23. 2004

    Pub. L. 108–357 title III § 339(c) · 118 Stat. 1418

    Added · 26 U.S.C. § 280C(d)

    Pub. L. 108–357 added subsec. (d)

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 108–357 added subsec. (d).

    Enacted provision · exact public law section
    (c) Denial of Double Benefit.— Section 280C (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection: “(d) Low Sulfur Diesel Fuel Production Credit.— No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45H(a).” .

24. 2005

    Pub. L. 109–135 § 201(b)(2) · 119 Stat. 2577

    Substituted · 26 U.S.C. § 280C(a)

    Pub. L. 109–135, § 201(b)(2), substituted “1400P(b), and 1400R” for “and 1400P(b)”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 109–135, § 201(b)(2), substituted “1400P(b), and 1400R” for “and 1400P(b)”.

    Enacted provision · exact public law section
    (2) Section 280C(a), as amended by this Act, is amended by striking “and 1400P(b)” and inserting “1400P(b), and 1400R”.

25. 2005

    Pub. L. 109–135 § 103(b)(2) · 119 Stat. 2577

    Substituted · 26 U.S.C. § 280C(a)

    Pub. L. 109–135, § 103(b)(2), substituted “1396(a), and 1400P(b)” for “and 1396(a)”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–135, § 103(b)(2), substituted “1396(a), and 1400P(b)” for “and 1396(a)”.

    Enacted provision · exact public law section
    (2) Section 280C(a) is amended by striking “and 1396(a)” and inserting “1396(a), and 1400P(b)”.

26. 2006

    Tax Relief and Health Care Act of 2006

    Pub. L. 109–432 div. A title IV § 405(c) · 120 Stat. 2922

    Added · 26 U.S.C. § 280C(e)

    Pub. L. 109–432 added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 109–432 added subsec. (e).

    Enacted provision · exact public law section
    (c) No Double Benefit.— Section 280C 26 USC 280C. is amended by adding at the end the following new subsection: “(e) Mine Rescue Team Training Credit.— No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45N(a).” .

27. 2007

    Tax Technical Corrections Act of 2007

    Pub. L. 110–172 § 7(a)(1)(B) · 121 Stat. 2473

    Amended · 26 U.S.C. § 280C(d)

    Pub. L. 110–172 amended heading and text generally. Prior to amendment, text read as follows: “No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45H(a).”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 110–172 amended heading and text generally. Prior to amendment, text read as follows: “No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45H(a).”

    Enacted provision · exact public law section
    (B) Subsection (d) of section 280C is amended to read as follows: “(d) Credit for Low Sulfur Diesel Fuel Production.— The deductions otherwise allowed under this chapter for the taxable year shall be reduced by the amount of the credit determined for the taxable year under section 45H(a).” .

28. 2008

    Heroes Earnings Assistance and Relief Tax Act of 2008

    Pub. L. 110–245 title I § 111(c) · 122 Stat. 1624

    Inserted · 26 U.S.C. § 280C(a)

    Pub. L. 110–245 inserted “45P(a),” after “45A(a),”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 110–245 inserted “45P(a),” after “45A(a),”.

    Enacted provision · exact public law section
    (c) No Deduction for Compensation Taken Into Account for Credit.— Section 280C(a) (relating to rule for employment credits) is amended by inserting “45P(a),” after “45A(a),”.

29. 2008

    Heartland, Habitat, Harvest, and Horticulture Act of 2008

    Pub. L. 110–246 § 15343(c) · 122 Stat. 1651

    Added · 26 U.S.C. § 280C(f)

    Pub. L. 110–246, § 15343(c), added subsec. (f)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 110–246, § 15343(c), added subsec. (f).

    Enacted provision · exact public law section
    (c) Denial of Double Benefit.— Section 280C 26 USC 280C. is amended by adding at the end the following new subsection: “(f) Credit for Security of Agricultural Chemicals.— No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction taken into account in determining the credit under section 45O for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45O(a).” .

30. 2010

    Patient Protection and Affordable Care Act

    Pub. L. 111–148 § 9023(c)(2) · 124 Stat. 119

    Added · 26 U.S.C. § 280C(g)

    Pub. L. 111–148, § 9023(c)(2), added subsec. (g) relating to qualifying therapeutic discovery project credit

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 111–148, § 9023(c)(2), added subsec. (g) relating to qualifying therapeutic discovery project credit.

    Enacted provision · exact public law section
    (2) Section 280C of such Code is amended by adding at the end the following new subsection: “(g) Qualifying Therapeutic Discovery Project Credit.— “(1) In general.— No deduction shall be allowed for that portion of the qualified investment (as defined in section 48D(b)) otherwise allowable as a deduction for the taxable year which— “(A) would be qualified research expenses (as defined in section 41(b)), basic research expenses (as defined in section 41(e)(2)), or qualified clinical testing expenses (as defined in section 45C(b)) if the credit under section 41 or section 45C were allowed with respect to such expenses for such taxable year, and “(B) is equal to the amount of the credit determined for such taxable year under section 48D(a), reduced by— “(i) the amount disallowed as a deduction by reason of section 48D(e)(2)(B), and “(ii) the amount of any basis reduction under section 48D(e)(1). “(2) Similar rule where taxpayer capitalizes rather than deducts expenses.— In the case of expenses described in paragraph (1)(A) taken into account in determining the credit under section 48D for the taxable year, if— “(A) the amount of the portion of the credit determined under such section with respect to such expenses, exceeds “(B) the amount allowable as a deduction for such taxable year for such 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.— Paragraph (3) of subsection (b) shall apply for purposes of this subsection.” .

31. 2010

    Patient Protection and Affordable Care Act

    Pub. L. 111–148 § 1401(b) · 124 Stat. 119

    Added · 26 U.S.C. § 280C(g)

    Pub. L. 111–148, § 1401(b), added subsec. (g) relating to credit for health insurance premiums

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 111–148, § 1401(b), added subsec. (g) relating to credit for health insurance premiums.

    Enacted provision · exact public law section
    (b) Disallowance of Deduction.— Section 280C of the Internal Revenue Code of 1986 26 USC 280C. is amended by adding at the end the following new subsection: “(g) Credit for Health Insurance Premiums.— No deduction shall be allowed for the portion of the premiums paid by the taxpayer for coverage of 1 or more individuals under a qualified health plan which is equal to the amount of the credit determined for the taxable year under section 36B(a) with respect to such premiums.” .

32. 2010

    Patient Protection and Affordable Care Act

    Pub. L. 111–148 § 10105(e)(3) · 124 Stat. 119

    Substituted · 26 U.S.C. § 280C(h)

    Pub. L. 111–148, § 10105(e)(3), substituted “2010, 2011” for “2011”

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 111–148, § 10105(e)(3), substituted “2010, 2011” for “2011”.

    Enacted provision · exact public law section
    (3) Section 280C(h) of the Internal Revenue Code of 1986, as added by section 1421(d)(1) of this Act, 26 USC 280C. is amended by striking “2011” and inserting “2010, 2011”.

33. 2010

    Patient Protection and Affordable Care Act

    Pub. L. 111–148 § 1421(d)(1) · 124 Stat. 119

    Added · 26 U.S.C. § 280C(h)

    Pub. L. 111–148, § 1421(d)(1), added subsec. (h)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 111–148, § 1421(d)(1), added subsec. (h).

    Enacted provision · exact public law section
    (1) In general.— Section 280C of the Internal Revenue Code of 1986 (relating to disallowance of deduction for certain expenses for which credit allowed), as amended by section 1401(b), is amended by adding at the end the following new subsection: “(h) Credit for Employee Health Insurance Expenses of Small Employers.— No deduction shall be allowed for that portion of the premiums for qualified health plans (as defined in section 1301(a) of the Patient Protection and Affordable Care Act), or for health insurance coverage in the case of taxable years beginning in 2011, 2012, or 2013, paid by an employer which is equal to the amount of the credit determined under section 45R(a) with respect to the premiums.” .

34. 2017

    Pub. L. 115–97 § 13403(d)(1) · 131 Stat. 2054

    Inserted · 26 U.S.C. § 280C(a)

    Pub. L. 115–97, § 13403(d)(1), inserted “45S(a),” after “45P(a),”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–97, § 13403(d)(1), inserted “45S(a),” after “45P(a),”.

    Enacted provision · exact public law section
    (1) Denial of double benefit.— Section 280C(a) is amended by inserting “45S(a),” after “45P(a),”.

35. 2017

    Pub. L. 115–97 § 13401(b) · 131 Stat. 2054

    1. Added · 26 U.S.C. § 280C(b)(3); 26 U.S.C. § 280C(b)(4)

       Pub. L. 115–97, § 13401(b), added par. (3)

    2. Redesignated · 26 U.S.C. § 280C(b)(3); 26 U.S.C. § 280C(b)(4)

       Pub. L. 115–97, § 13401(b), redesignated former par. (3) as (4)

    Source evidence

    Code amendment note
    Subsec. (b)(3), (4). Pub. L. 115–97, § 13401(b), added par. (3) and redesignated former par. (3) as (4).

    Enacted provision · exact public law section
    (b) Election of Reduced Credit.— Subsection (b) of section 280C is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(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.— 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 shall prescribe. Such an election, once made, shall be irrevocable.” .

36. 2017

    Pub. L. 115–97 § 13206(d)(2)(A) · 131 Stat. 2054

    1. Added · 26 U.S.C. § 280C(c)(1)

       Pub. L. 115–97, § 13206(d)(2)(A), added par. (1)

    2. Struck · 26 U.S.C. § 280C(c)(1)

       Pub. L. 115–97, § 13206(d)(2)(A), struck out former par. (1). Prior to amendment, text read as follows: “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).”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 115–97, § 13206(d)(2)(A), added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: “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).”

    Enacted provision · exact public law section
    (A) by striking paragraph (1) and inserting the following: “(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.”,

37. 2017

    Pub. L. 115–97 § 13206(d)(2)(B) · 131 Stat. 2054

    1. Redesignated · 26 U.S.C. § 280C(c)(2)

       Pub. L. 115–97, § 13206(d)(2)(B)–(D), redesignated par. (3) as (2)

    2. Substituted · 26 U.S.C. § 280C(c)(2)

       Pub. L. 115–97, § 13206(d)(2)(B)–(D), substituted “paragraph (1)” for “paragraphs (1) and (2)” in subpar. (A)(i)

    3. Struck · 26 U.S.C. § 280C(c)(2)

       Pub. L. 115–97, § 13206(d)(2)(B)–(D), struck out former par. (2) which related to rule where taxpayer capitalizes rather than deducts expenses

    Source evidence

    Code amendment note
    Subsec. (c)(2). Pub. L. 115–97, § 13206(d)(2)(B)–(D), redesignated par. (3) as (2), substituted “paragraph (1)” for “paragraphs (1) and (2)” in subpar. (A)(i), and struck out former par. (2) which related to rule where taxpayer capitalizes rather than deducts expenses.

    Enacted provision · exact public law section
    (B) by striking paragraph (2),

38. 2017

    Pub. L. 115–97 § 13206(d)(2)(C) · 131 Stat. 2054

    Redesignated · 26 U.S.C. § 280C(c)(3)

    Pub. L. 115–97, § 13206(d)(2)(C), redesignated par. (4) as (3). Former par. (3) redesignated (2)

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 115–97, § 13206(d)(2)(C), redesignated par. (4) as (3). Former par. (3) redesignated (2).

    Enacted provision · exact public law section
    (C) by redesignating paragraphs (3) (as amended by this Act) and (4) as paragraphs (2) and (3), respectively, and

39. 2017

    Pub. L. 115–97 § 13001(b)(1)(A) · 131 Stat. 2054

    Substituted · 26 U.S.C. § 280C(c)(3)(B)(ii)(II)

    Pub. L. 115–97, § 13001(b)(1)(A), substituted “section 11(b)” for “section 11(b)(1)”

    Source evidence

    Code amendment note
    Subsec. (c)(3)(B)(ii)(II). Pub. L. 115–97, § 13001(b)(1)(A), substituted “section 11(b)” for “section 11(b)(1)”.

    Enacted provision · exact public law section
    (A) Section 280C(c)(3)(B)(ii)(II).

40. 2017

    Pub. L. 115–97 § 13206(d)(2)(C) · 131 Stat. 2054

    Redesignated · 26 U.S.C. § 280C(c)(4)

    Pub. L. 115–97, § 13206(d)(2)(C), redesignated par. (4) as (3)

    Source evidence

    Code amendment note
    Subsec. (c)(4). Pub. L. 115–97, § 13206(d)(2)(C), redesignated par. (4) as (3).

    Enacted provision · exact public law section
    (C) by redesignating paragraphs (3) (as amended by this Act) and (4) as paragraphs (2) and (3), respectively, and

41. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(d)(6)(B)(iv) · 132 Stat. 348

    Substituted · 26 U.S.C. § 280C(a)

    Pub. L. 115–141, § 401(d)(6)(B)(iv), substituted “and 1396(a)” for “1396(a), 1400P(b), and 1400R”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 115–141, § 401(d)(6)(B)(iv), substituted “and 1396(a)” for “1396(a), 1400P(b), and 1400R”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

42. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(a)(62) · 132 Stat. 348

    Substituted · 26 U.S.C. § 280C(a)

    Pub. L. 115–141, § 401(a)(62), substituted “1396(a),” for “and 1396(a),”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 115–141, § 401(a)(62), substituted “1396(a),” for “and 1396(a),”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

43. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 § 401(d)(3)(B)(iii) · 132 Stat. 348

    Struck · 26 U.S.C. § 280C(g)

    Pub. L. 115–141, § 401(d)(3)(B)(iii), struck out subsec. (g) relating to qualifying therapeutic discovery project credit

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 115–141, § 401(d)(3)(B)(iii), struck out subsec. (g) relating to qualifying therapeutic discovery project credit.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

44. 2025

    Pub. L. 119–21 § 70304(b) · 139 Stat. 191

    1. Substituted · 26 U.S.C. § 280C(a)

       Pub. L. 119–21, § 70304(b), substituted “45S(a)(1)(A)” for “45S(a)”

    2. Inserted · 26 U.S.C. § 280C(a)

       Pub. L. 119–21, § 70304(b), inserted “No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).” after “and 1396(a).”

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 119–21, § 70304(b), substituted “45S(a)(1)(A)” for “45S(a)” and inserted “No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).” after “and 1396(a).”

    Effective date note
    Amendment by section 70302(b)(2)(B) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2024, subject to election for retroactive application by certain small businesses and election to deduct certain unamortized amounts paid or incurred in taxable years beginning before Jan. 1, 2025, see section 70302(e), (f) of Pub. L. 119–21, set out as an Effective Date note under section 174A of this title. Amendment by section 70304(b) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2025, see section 70304(c) of Pub. L. 119–21, set out as a note under section 45S of this title.

45. 2025

    Pub. L. 119–21 § 70302(b)(2)(B) · 139 Stat. 191

    Amended · 26 U.S.C. § 280C(c)(1)

    Pub. L. 119–21, § 70302(b)(2)(B), amended par. (1) generally. Prior to amendment, text read as follows: “If—

    Unresolved: Pub. L. 119–21 was not found in the local Statutes at Large index.

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 119–21, § 70302(b)(2)(B), amended par. (1) generally. Prior to amendment, text read as follows: “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.”

    Effective date note
    Amendment by section 70302(b)(2)(B) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2024, subject to election for retroactive application by certain small businesses and election to deduct certain unamortized amounts paid or incurred in taxable years beginning before Jan. 1, 2025, see section 70302(e), (f) of Pub. L. 119–21, set out as an Effective Date note under section 174A of this title. Amendment by section 70304(b) of Pub. L. 119–21 applicable to taxable years beginning after Dec. 31, 2025, see section 70304(c) of Pub. L. 119–21, set out as a note under section 45S of this title.

56 of 59 references resolved to an enrolled provision · 3 unresolved