#aac? ,,congress  #b;d ,session  ,h4 ,r4
 #ddch  ,,an ,,act  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to simplify & make
 p]man5t ! rese>* cr$it4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,am]ican
 ,rese>* & ,competitiv5ess ,act ( #bjad4
  #b4 ,rese>* cr$it simplifi$ & made    
p]man5t  7a7 ,9 g5]al ,subsection 7a7 ( 
section #da ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ to read z foll[s3  7a7  
,9 g5]al ,= purposes ( section #ch1 !   
rese>* cr$it det]m9$ "u ?is section = ! 
taxable ye> %all be an am\nt equal to ! 
sum (--  7#a7 #bj p]c5t ( s mu* ( !     
qualifi$ rese>* exp5ses = ! taxable ye> 
z exce$s #ej p]c5t ( ! av]age qualifi$  
rese>* exp5ses = ! #c taxable ye>s      
prec$+ ! taxable ye> = :i* ! cr$it is   
be+ det]m9$1  7#b7 #bj p]c5t ( s mu* ( !
 basic rese>* paym5ts = ! taxable ye> z 
exce$s #ej p]c5t ( ! av]age basic rese>*
 paym5ts = ! #c taxable ye>s prec$+ !   
taxable ye> = :i* ! cr$it is be+        
det]m9$1 plus  7#c7 #bj p]c5t ( ! am\nts
 paid or incurr$ by ! taxpay] 9 c>ry+ on

 any trade or bus9ess ( ! taxpay] dur+ !
 taxable ye> 7includ+ z contributions7  
to an en]gy rese>* consortium = en]gy   
rese>*4  4  7b7 ,repeal ( t]m9ation     
,section #da ( su* ,code is am5d$ by    
/rik+ subsection 7h74  7c7 ,con=m+      
am5dm5ts  7#a7 ,subsection 7c7 ( section
 #da ( su* ,code is am5d$ to read z     
foll[s3  7c7 ,det]m9ation ( av]age      
rese>* exp5ses = prior ye>s  7#a7       
,special rule 9 case ( no qualifi$      
rese>* exp5ditures 9 any ( #c prec$+    
taxable ye>s ,9 any case 9 :i* ! taxpay]
 has no qualifi$ rese>* exp5ses 9 any "o
 ( ! #c taxable ye>s prec$+ ! taxable   
ye> = :i* ! cr$it is be+ det]m9$1 !     
am\nt det]m9$ "u subsection 7a77#a7 =   
su* taxable ye> %all be equal to #aj    
p]c5t ( ! qualifi$ rese>* exp5ses = !   
taxable ye>4  7#b7 ,consi/5t treatm5t ( 
exp5ses  7,a7 ,9 g5]al ,not)/&+ :e!r !  
p]iod = fil+ a claim = cr$it or refund  
has expir$ = any taxable ye> tak5 into  
acc\nt 9 det]m9+ ! av]age qualifi$      
rese>* exp5ses1 or av]age basic rese>*  

paym5ts1 tak5 into acc\nt "u subsection 
7a71 ! qualifi$ rese>* exp5ses & basic  
rese>* paym5ts tak5 into acc\nt 9       
det]m9+ su* av]ages %all be det]m9$ on a
 basis consi/5t ) ! det]m9ation (       
qualifi$ rese>* exp5ses & basic rese>*  
paym5ts1 respectively1 = ! cr$it ye>4   
7,b7 ,prev5tion ( di/ortions ,!         
,secret>y may prescribe regulations to  
prev5t di/ortions 9 calculat+ a         
taxpay]'s qualifi$ rese>* exp5ses or    
basic rese>* paym5ts caus$ by a *ange 9 
acc\nt+ me?ods us$ by su* taxpay] betwe5
 ! curr5t ye> & a ye> tak5 into acc\nt 9
 det]m9+ ! av]age qualifi$ rese>*       
exp5ses or av]age basic rese>* paym5ts  
tak5 into acc\nt "u subsection 7a74  4  
7#b7 ,section #da7;e7 ( su* ,code is    
am5d$--  7,a7 by /rik+ all t prec$es    
p>agraph 7#f7 & ins]t+ ! foll[+3  7e7   
,basic rese>* paym5ts ,= purposes ( ?is 
section--  7#a7 ,9 g5]al ,! t]m basic   
rese>* paym5t means1 ) respect to any   
taxable ye>1 any am\nt paid 9 ca% dur+  
su* taxable ye> by a corporation to any 

qualifi$ organization = basic rese>* b  
only if--  7,a7 su* paym5t is pursuant  
to a writt5 agreem5t betwe5 su*         
corporation & su* qualifi$ organization1
 &  7,b7 su* basic rese>* is to be p]=m$
 by su* qualifi$ organization4  7#b7    
,exception to requirem5t t rese>* be    
p]=m$ by ! organization ,9 ! case ( a   
qualifi$ organization describ$ 9        
subp>agraph 7,c7 or 7,d7 ( p>agraph     
7#c71 subp>agraph 7,b7 ( p>agraph 7#a7  
%all n apply4  1  7,b7 by r$esignat+    
p>agraphs 7#f7 & 7#g7 z p>agraphs 7#c7 &
 7#d71 respectively1 &  7,c7 9 p>agraph 
7#d7 z s r$esignat$1 by /rik+           
subp>agraphs 7,b7 & 7,c7 & by r$esignat+
 subp>agraphs 7,d7 & 7,e7 z subp>agraphs
 7,b7 & 7,c71 respectively4  7#c7       
,section #da7;f77#c7 ( su* ,code is     
am5d$--  7,a7  7i7 by /rik+ 1 & ! gross 
receipts 9 subp>agraph 7,a77i7 & all t  
foll[s ?r\gh det]m9$ "u clause 7iii71   
7ii7 by /rik+ clause 7iii7 ( subp>agraph
 7,a7 & r$esignat+ clauses 7iv71 7v71 & 
7vi71 !re(1 z clauses 7iii71 7iv71 &    

7v71 respectively1  7iii7 by /rik+ &    
7iv7 ea* place x appe>s 9 subp>agraph   
7,a77iv7 7z s r$esignat$7 & ins]t+ &    
7iii71  7iv7 by /rik+ subclause 7,,iv7 (
 subp>agraph 7,a77iv7 7z s r$esignat$71 
by /rik+ 1 & at ! end ( subp>agraph     
7,a77iv77,,iii7 7z s r$esignat$7 &      
ins]t+ a p]iod1 & by add+ & at ! end (  
subp>agraph 7,a77iv77,,ii7 7z s         
r$esignat$71  7v7 by /rik+ 7,a77vi7 9   
subp>agraph 7,b7 & ins]t+ 7,a77v71 &    
7vi7 by /rik+ 7,a77iv77,,ii7 9          
subp>agraph 7,b77i77,,ii7 & ins]t+      
7,a77iii77,,ii71  7,b7 by /rik+ 1 & !   
gross receipts ( ! pr$ecessor1 9        
subp>agraph 7,a77iv77,,ii7 7z s         
r$esignat$71  7,c7 by /rik+ 1 & ! gross 
receipts (1 9 subp>agraph 7,b71  7,d7 by
 /rik+ 1 or gross receipts (1 9         
subp>agraph 7,b77i77,i71 &  7,e7 by     
/rik+ subp>agraph 7,c74  7d7 ,effective 
date  7#a7 ,9 g5]al ,except z provid$ 9 
p>agraph 7#b71 ! am5dm5ts made by ?is   
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjac4  7#b7  

,subsection 7b7 ,! am5dm5t made by      
subsection 7b7 %all apply to am\nts paid
 or incurr$ aft] ,decemb] #ca1 #bjac4   
#c4 ,,paygo ,scorec>d  7a7 ,paygo       
,scorec>d ,! budget>y effects ( ?is ,act
 %all n be ent]$ on ei!r ,,paygo        
scorec>d ma9ta9$ pursuant to section    
#d7;d7 ( ! ,/atutory ,pay-,z-,y-,g ,act 
( #bjaj4  7b7 ,s5ate ,paygo ,scorec>d ,!
 budget>y effects ( ?is ,act %all n be  
ent]$ on any ,,paygo scorec>d ma9ta9$ = 
purposes ( section #bja ( ,s4 ,con4     
,res4 #ba 7#aaj? ,congress74  ,pass$ !  
,h\se ( ,repres5tatives ,may #i1        
#bjad4;,cl]k4