[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.280C-4]

[Page 659-660]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.280C-4  Credit for increasing research activities.

    (a) In general. The election under section 280C(c)(3) to have the 
provisions of section 280C(c) (1) and (2) not apply shall be made by 
claiming the reduced credit under section 41(a) determined by the method 
provided in section 280C(c)(3)(B) on an original return for the taxable 
year, filed at any time on or before the due date (including extensions) 
for filing the income tax return

[[Page 660]]

for such year. An election, once made for any taxable year, shall be 
irrevocable for that taxable year.
    (b) Transition rule--(1) In general. In the case of a taxable year 
beginning after December 31, 1988, for which the due date (including 
extensions) for filing the return is on or before March 4, 1990, the 
election under section 280C(c)(3) shall be made by claiming the reduced 
credit under section 41(a) determined by the method provided in section 
280C(c)(3)(B) on an original or amended return for such taxable year 
filed on or before March 3, 1990.
    (2) Taxpayers who made an election under former section 41(h). If a 
taxpayer--
    (i) Prior to December 19, 1989, made an election for a taxable year 
described in paragraph (b)(1) of this section under section 41(h) (as it 
existed before it was repealed by section 7814(e) of the Revenue 
Reconciliation Act of 1989) by not claiming any credit allowable under 
section 41(a), and
    (ii) Has not filed an amended return on or before March 3, 1990 
claiming the full credit allowable under section 41(a), the taxpayer 
will be treated as having made an election under section 280C(c)(3). 
Therefore, the provisions of section 280C(c) (1) and (2) shall not apply 
in such taxable year. However, in order to obtain the benefit of the 
reduced credit under section 41(a) determined by the method provided in 
section 280C(c)(3)(B), such a taxpayer must claim the reduced credit on 
an amended return filed before the expiration of the period prescribed 
in section 6511 for filing a claim for credit or refund of the tax 
imposed by chapter 1 of the Code.
    (c) Effective date. The provisions of this section are effective for 
taxable years beginning after December 31, 1988.

[T.D. 8282, 55 FR 2376, Jan. 24, 1990; 55 FR 4049, Feb. 6, 1990]