26 U.S.C. § 196 : US Code - Section 196: Deduction for certain unused business credits

Search 26 U.S.C. § 196 : US Code - Section 196: Deduction for certain unused business credits

(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.
(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)),
(2) the work opportunity credit determined under section 51(a),
(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)) for taxable
years beginning after December 31, 1988,
(5) the enhanced oil recovery credit determined under section
43(a),
(6) the empowerment zone employment credit determined under
section 1396(a),
(7) the Indian employment credit determined under section
45A(a),
(8) the employer Social Security credit determined under
section 45B(a),
(9) the new markets tax credit determined under section 45D(a),
(10) the small employer pension plan startup cost credit
determined under section 45E(a),
(11) the biodiesel fuels credit determined under section
40A(a),
(12) the low sulfur diesel fuel production credit determined
under section 45H(a), and
(13) the new energy efficient home credit determined under
section 45L(a).
(d) Special rule for investment tax credit and research credit
Subsection (a) shall be applied by substituting "an amount equal
to 50 percent of" for "an amount equal to" 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.