,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bgae  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ca1 #bjad,mr4   
,c>p] introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to increase & make
 p]man5t ! alt]native simplifi$ rese>*  
cr$it1 & = o!r purposes4  #a4 ,%ort     
title2 am5dm5t ( #aihf ,code  7a7 ,%ort 
title ,?is ,act may be cit$ z !         
,competitiv5ess & ,opportunity by       
,mod]niz+ & ,p]man5tly ,ext5d+ ! ,tax   
,cr$it = ,exp]im5tation ,act ( #bjad or 
! ,,compete ,act ( #bjad4  7b7 ,am5dm5t 
( #aihf ,code ,except z o!rwise         
expressly provid$1 :5ev] 9 ?is ,act an  
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  #b4 ,p]man5t ext5sion &         
modification ( rese>* cr$it  7a7        
,simplifi$ cr$it = qualifi$ rese>*      

exp5ses ,subsection 7a7 ( section #da is
 am5d$ to read z foll[s3  7a7 ,g5]al    
rule ,= purposes ( section #ch1 ! rese>*
 cr$it det]m9$ "u ?is section = !       
taxable ye> %all be an am\nt equal to   
#be 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$4  4    
7b7 ,special rules & t]m9ation ( base   
am\nt calculation  7#a7 ,9 g5]al        
,subsection 7c7 ( section #da is am5d$  
to read z foll[s3  7c7 ,special rule 9  
case ( no qualifi$ rese>* exp5ses 9 any 
( #c prec$+ taxable ye>s  7#a7 ,taxpay]s
 to :i* subsection applies ,! cr$it "u  
?is section %all be det]m9$ "u ?is      
subsection1 & n "u subsection 7a71 if1 9
 any "o ( ! #c taxable ye>s prec$+ !    
taxable ye> = :i* ! cr$it is be+        
det]m9$1 ! taxpay] has no qualifi$      
rese>* exp5ses4  7#b7 ,cr$it rate ,!    
cr$it det]m9$ "u ?is subsection %all be 
equal to #aj p]c5t ( ! qualifi$ rese>*  

exp5ses = ! taxable ye>4  4  7#b7       
,consi/5t treatm5t ( exp5ses ,subsection
 7b7 ( section #da is am5d$ by add+ at !
 end ! foll[+ new p>agraph3  7#e7       
,consi/5t treatm5t ( exp5ses requir$    
7,a7 ,9 g5]al ,not)/&+ :e!r ! p]iod =   
fil+ a claim = cr$it or refund has      
expir$ = any taxable ye> 9 !            
#c-taxable-ye> p]iod tak5 into acc\nt "u
 subsection 7a71 ! qualifi$ rese>*      
exp5ses tak5 into acc\nt = su* ye> %all 
be det]m9$ on a basis consi/5t ) !      
det]m9ation ( qualifi$ rese>* exp5ses = 
! 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 caus$ by a *ange 9 acc\nt+      
me?ods us$ by su* taxpay] betwe5 ! cr$it
 ye> & a ye> 9 su* #c-taxable-ye> p]iod4
  4  7c7 ,inclusion ( qualifi$ rese>*   
exp5ses ( an acquir$ p]son  7#a7 ,p>tial
 inclusion ( pre-acquisition qualifi$   
rese>* exp5ses ,subp>agraph 7,a7 (      
section #da7;f77#c7 is am5d$ to read z  

foll[s3  7,a7 ,acquisitions  7i7 ,9     
g5]al ,if a p]son acquires ! major      
portion ( a trade or bus9ess ( ano!r    
p]son 7h]e9aft] 9 ?is p>agraph ref]r$ to
 z ! pr$ecessor7 or ! major portion ( a 
sep>ate unit ( a trade or bus9ess ( a   
pr$ecessor1 !n ! am\nt ( qualifi$ rese>*
 exp5ses paid or incurr$ by ! acquir+   
p]son dur+ ! #c taxable ye>s prec$+ !   
taxable ye> 9 :i* ! cr$it "u ?is section
 is det]m9$ %all be increas$ by-- 7,i7 =
 purposes ( apply+ ?is section = !      
taxable ye> 9 :i* su* acquisition is    
made1 ! am\nt det]m9$ "u clause 7ii71 & 
7,,ii7 = purposes ( apply+ ?is section =
 any taxable ye> aft] ! taxable ye> 9   
:i* su* acquisition is made1 s mu* ( !  
qualifi$ rese>* exp5ses paid or incurr$ 
by ! pr$ecessor ) respect to ! acquir$  
trade or bus9ess dur+ ! portion ( !     
measurem5t p]iod t is "p ( !            
#c-taxable-ye> p]iod prec$+ ! taxable   
ye> = :i* ! cr$it is det]m9$ z is       
attributable to ! portion ( su* trade or
 bus9ess or sep>ate unit acquir$ by su* 

p]son4  7ii7 ,am\nt det]m9$ ,! am\nt    
det]m9$ "u ?is clause is ! am\nt equal  
to ! product (-- 7,i7 s mu* ( ! qualifi$
 rese>* exp5ses paid or incurr$ by !    
pr$ecessor ) respect to ! acquir$ trade 
or bus9ess dur+ ! #c taxable ye>s be=e !
 taxable ye> 9 :i* ! acquisition is made
 z is attributable to ! portion ( su*   
trade or bus9ess or sep>ate unit acquir$
 by ! acquir+ p]son1 &  7,,ii7 ! numb] (
 mon?s 9 ! p]iod beg9n+ on ! date ( !   
acquisition & end+ on ! la/ day ( !     
taxable ye> 9 :i* ! acquisition is made1
  divid$ by #ab4  7iii7 ,special rules =
 coord9at+ taxable ye>s ,9 ! case ( an  
acquir+ p]son & a pr$ecessor ^: taxable 
ye>s d n beg9 on ! same date-- 7,i7 ea* 
ref]5ce to a taxable ye> 9 clauses 7i7 &
 7ii7 %all ref] to ! appropriate taxable
 ye> ( ! acquir+ p]son1  7,,ii7 !       
qualifi$ rese>* exp5ses paid or incurr$ 
by ! pr$ecessor dur+ ea* taxable ye> ( !
 pr$ecessor any portion ( :i* is "p ( ! 
measurem5t p]iod %all be allocat$       
equally among ! mon?s ( su* taxable ye>1

 &  7,,iii7 ! am\nt ( su* qualifi$      
rese>* exp5ses tak5 into acc\nt "u      
clauses 7i7 & 7ii7 ) respect to a       
taxable ye> ( ! acquir+ p]son %all be   
equal to ! total ( ! exp5ses            
attributable "u subclause 7,,ii7 to !   
mon?s occurr+ dur+ su* taxable ye>4     
7iv7 ,measurem5t p]iod ,= purposes ( ?is
 subp>agraph1 ! t]m measurem5t p]iod    
means ! taxable ye> ( ! acquir+ p]son 9 
:i* ! acquisition is made & ! #c taxable
 ye>s ( ! acquir+ p]son prec$+ su*      
taxable ye>4  4  7#b7 ,exp5ses ( a      
pr$ecessor ,subp>agraph 7,b7 ( section  
#da7;f77#c7 is am5d$ to read z foll[s3  
7,b7 ,dispositions ,if ! pr$ecessor     
furni%$ to ! acquir+ p]son su* in=mation
 z is necess>y = ! application (        
subp>agraph 7,a71 !n1 = purposes (      
apply+ ?is section = any taxable ye>    
end+ aft] su* disposition1 ! am\nt (    
qualifi$ rese>* exp5ses paid or incurr$ 
by ! pr$ecessor dur+ ! #c taxable ye>s  
prec$+ su* taxable ye> %all be r$uc$--  
7i7 9 ! case ( ! taxable ye> 9 :i* su*  

disposition is made1 by an am\nt equal  
to ! product (-- 7,i7 ! am\nt ( qualifi$
 rese>* exp5ses paid or incurr$ dur+ su*
 #c taxable ye>s ) respect to ! acquir$ 
bus9ess1 &  7,,ii7 ! numb] ( days 9 !   
p]iod beg9n+ on ! date ( acquisition 7z 
det]m9$ = purposes ( subp>agraph        
7,a77ii77,,ii77 & end+ on ! la/ day ( ! 
taxable ye> ( ! pr$ecessor 9 :i* !      
disposition is made1  divid$ by ! numb] 
( days 9 ! taxable ye> ( ! pr$ecessor1 &
  7ii7 9 ! case ( any taxable ye> end+  
aft] ! taxable ye> 9 :i* su* disposition
 is made1 ! am\nt describ$ 9 clause     
7i77,i74  4  7d7 ,aggregation (         
exp5ditures ,p>agraph 7#a7 ( section    
#da7;f71 z am5d$ by ! ,am]ican ,taxpay] 
,relief ,act ( #bjab1 is am5d$-- 7#a7 by
 /rik+ ( ! qualifi$ rese>* exp5ses1     
basic rese>* paym5ts1 & am\nts paid or  
incurr$ to en]gy rese>* consortiums1 9  
subp>agraph 7,a77ii7 & ins]t+ qualifi$  
rese>* exp5ses1 &  7#b7 by /rik+ ( !    
qualifi$ rese>* exp5ses1 basic rese>*   
paym5ts1 & am\nts paid or incurr$ to    

en]gy rese>* consortiums1 9 subp>agraph 
7,b77ii7 & ins]t+ qualifi$ rese>*       
exp5ses4  7e7 ,split #ajj p]c5t cr$it = 
contract rese>* exp5ses ,subp>agraph    
7,a7 ( section #da7;b77#c7 is am5d$ to  
read z foll[s3  7,a7 ,9 g5]al  7i7      
,taxpay]s pay+ = contract$ rese>* ,! t]m
 contract rese>* exp5ses means #fe p]c5t
 ( any am\nt paid or incurr$ by !       
taxpay] to any p]son 7o!r ?an an        
employee ( ! taxpay]7 = qualifi$ rese>*4
  7ii7 ,taxpay]s p]=m+ contract$ rese>* 
,9 ! case ( a taxpay] 7o!r ?an an entity
 describ$ 9 subp>agraph 7,c7 or 7,d7 or 
p>agraph 7#e77;,c77 :o receives am\nts f
 any p]son 7o!r ?an an employ] ( !      
taxpay]7 = qualifi$ rese>* on behalf (  
su* p]son1 ! t]m contract rese>* exp5ses
 means s mu* ( ! qualifi$ rese>* exp5ses
 paid or incurr$ by ! taxpay] z does n  
exce$ #ce p]c5t ( ! am\nts s receiv$ f  
su* p]son4  7iii7 ,special rules ,=     
purposes ( clause 7ii7-- 7,i7 ,trade or 
bus9ess ,! qualifi$ rese>* exp5ses ( !  
taxpay] %all be det]m9$ z if ! trade or 

bus9ess ( ! taxpay] 7 ! conduct (       
qualifi$ rese>* on behalf ( o!r p]sons4 
7,,ii7 ,rese>* n treat$ z fund$ rese>*  
,subp>agraph 7,h7 ( subsection 7d77#d7  
%all n apply4  7,,iii7 ,qualifi$ rese>* 
,! qualifi$ rese>* exp5ses ( a taxpay]  
%all be det]m9$ z if ! conditions (     
subp>agraph 7,b7 ( subsection 7d77#a7   
are satisfi$ if ! bus9ess compon5t      
describ$ 9 subp>agraph 7,b77ii7 !re( is 
a bus9ess compon5t ( ei!r ( ! taxpay]s  
describ$ 9 clauses 7i7 & 7ii74  7,,iv7  
,limitation ,! qualifi$ rese>* exp5ses (
 a taxpay] %all n include any exp5ses t 
w\ld n be eligible z 9-h\se rese>*      
exp5ses = purposes ( p>agraph 7#b74     
7iv7 ,d5ial ( d\ble b5efit ,! am\nt (   
any 9-h\se rese>* exp5ses tak5 into     
acc\nt "u ?is section ) respect to a    
taxpay] describ$ 9 clause 7ii7 %all be  
r$uc$ by ! am\nt ( ! contract rese>*    
exp5ses tak5 into acc\nt "u su* clause )
 respect to su* taxpay] = ! taxable ye>4
  4  7f7 ,inclusion ( basic rese>*      
paym5ts ,subsection 7b7 ( section #da is

 am5d$ by r$esignat+ p>agraph 7#e71 z   
add$ by ?is section1 z p>agraph 7#f71 & 
by ins]t+ aft] p>agraph 7#d7 ! foll[+   
new p>agraph3  7#e7 ,basic rese>*       
paym5ts  7,a7 ,9 g5]al ,9 ! case ( basic
 rese>* paym5ts made by ! taxpay]1      
p>agraph 7#c77;,a7 %all be appli$ by    
sub/itut+ #ajj p]c5t = #fe p]c5t4  7,b7 
,basic rese>* paym5ts ,= purposes ( ?is 
p>agraph1 ! 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>*1 b only if--
 7i7 su* paym5t is made pursuant to a   
writt5 agreem5t betwe5 su* corporation &
 su* qualifi$ organization1 &  7ii7     
except 9 ! case ( a paym5t to a qualifi$
 organization describ$ 9 clause 7iii7 or
 7iv7 ( subp>agraph 7,c71 su* basic     
rese>* is to be p]=m$ by su* qualifi$   
organization4  7,c7 ,qualifi$           
organization ,= purposes ( ?is p>agraph1
 ! t]m qualifi$ organization means any (
 ! foll[+ organizations3 7i7            

,educational in/itutions ,any           
educational organization :i*-- 7,i7 is  
an in/itution ( high] education 7)9 !   
mean+ ( section #ccjd7;f771 &  7,,ii7 is
 describ$ 9 section                     
#agj7;b77#a77;,a77ii74  7ii7 ,c]ta9     
sci5tific rese>* organizations ,any     
organization n describ$ 9 clause 7i7    
:i*-- 7,i7 is describ$ 9 section        
#eja7;c77#c7 & is exempt f tax "u       
section #eja7;a71  7,,ii7 is organiz$ & 
op]at$ prim>ily to conduct sci5tific    
rese>*1 &  7,,iii7 is n a private       
f\ndation4  7iii7 ,sci5tific tax-exempt 
organizations ,any organization :i*--   
7,i7 is describ$ 9 section #eja7;c77#c7 
7o!r ?an a private f\ndation7 or section
 #eja7;c77#f71  7,,ii7 is exempt f tax  
"u section #eja7;a71  7,,iii7 is        
organiz$ & op]at$ prim>ily to promote   
sci5tific rese>* by qualifi$            
organizations describ$ 9 clause 7i7     
pursuant to writt5 rese>* agreem5ts1 &  
7,,iv7 curr5tly exp5ds sub/antially all 
( its funds or sub/antially all ( !     

basic rese>* paym5ts receiv$ by x =     
grants to1 or contracts = basic rese>*  
)1 an organization describ$ 9 clause    
7i74  7iv7 ,c]ta9 grant organizations   
,any organization n describ$ 9 clause   
7ii7 or 7iii7 :i*-- 7,i7 is describ$ 9  
section #eja7;c77#c7 & is exempt f tax  
"u section #eja7;a7 7o!r ?an a private  
f\ndation71  7,,ii7 is e/abli%$ &       
ma9ta9$ by an organization e/abli%$ be=e
 ,july #aj1 #aiha1 :i* meets !          
requirem5ts ( subclause 7,i71  7,,iii7  
is organiz$ & op]at$ exclusively = !    
purpose ( mak+ grants to organizations  
describ$ 9 clause 7i7 pursuant to writt5
 rese>* agreem5ts = purposes ( basic    
rese>*1 &  7,,iv7 makes an election1    
revocable only ) ! cons5t ( ! ,secret>y1
 to be treat$ z a private f\ndation =   
purposes ( ?is title 7o!r ?an section   
#didj1 relat+ to excise tax bas$ on     
inve/m5t income74  7,d7 ,def9itions &   
special rules ,= purposes ( ?is         
p>agraph-- 7i7 ,basic rese>* ,! t]m     
basic rese>* means any orig9al          

inve/igation = ! advancem5t ( sci5tific 
k n hav+ a specific comm]cial objective1
 except t su* t]m %all n include-- 7,i7 
basic rese>* conduct$ outside ( ! ,unit$
 ,/ates1 &  7,,ii7 basic rese>* 9 !     
social sci5ces1 arts1 or humanities4    
7ii7 ,trade or bus9ess qualification ,= 
purposes ( apply+ p>agraph 7#a7 to ?is  
p>agraph1 any basic rese>* paym5ts %all 
be treat$ z an am\nt paid 9 c>ry+ on a  
trade or bus9ess ( ! taxpay] 9 ! taxable
 ye> 9 :i* x is paid 7)\t reg>d to !    
provisions ( p>agraph 7#c77;,b774  7iii7
 ,c]ta9 corporations n eligible ,! t]m  
corporation %all n include-- 7,i7 an ,s 
corporation1  7,,ii7 a p]sonal hold+    
company 7z def9$ 9 section #edb71 or    
7,,iii7 a s]vice organization 7z def9$ 9
 section #dad7m77#c774  4  7g7 ,p]man5t 
ext5sion  7#a7 ,section #da is am5d$ by 
/rik+ subsection 7h74  7#b7 ,p>agraph   
7#a7 ( section #de;,c7b7 is am5d$ by    
/rik+ subp>agraph 7,d74  7h7 ,con=m+    
am5dm5ts  7#a7 ,t]m9ation ( basic rese>*
 paym5t calculation ,section #da is     

am5d$-- 7,a7 by /rik+ subsection 7e71   
7,b7 by r$esignat+ subsection 7g7 z     
subsection 7e71 &  7,c7 by relocat+     
subsection 7e71 z s r$esignat$1         
imm$iately aft] subsection 7d74  7#b7   
,special rules  7,a7 ,p>agraph 7#d7 (   
section #da7;f7 is am5d$ by /rik+ &     
gross receipts4  7,b7 ,subsection 7f7 ( 
section #da is am5d$ by /rik+ p>agraph  
7#f74  7#c7 ,cross-ref]5ces  7,a7       
,subp>agraph 7,b7 ( section             
#de;,c7b77#a7 is am5d$-- 7i7 by /rik+   
p>agraph 7#c77;,a7 9 clause 7ii7 &      
ins]t+ p>agraph 7#c77;,a77i71  7ii7 by  
/rik+ ! p]iod at ! end ( clause 7ii7 &  
ins]t+ 1 &1  7iii7 by /rik+ & at ! end (
 clause 7i71 &  7iv7 by add+ at ! end ! 
foll[+ new clause3  7iii7 by disreg>d+  
clauses 7ii71 7iii71 & 7iv7 ( p>agraph  
7#c77;,a7 ( su* subsection4  4  7,b7    
,p>agraph 7#b7 ( section #de;,c7c7 is   
am5d$ by /rik+ base p]iod rese>* exp5ses
 & ins]t+ av]age qualifi$ rese>*        
exp5ses4  7,c7 ,subp>agraph 7,a7 (      
section #ed7l77#c7 is am5d$ by /rik+    

section #da7;g7 & ins]t+ section        
#da7;e74  7,d7 ,clause 7i7 ( section    
#agj7;e77#d77;,b7 is am5d$ by /rik+     
subp>agraph 7,a7 or subp>agraph 7,b7 (  
section #da7;e77#f7 & ins]t+ clause 7i7 
or clause 7ii7 ( section                
#da7;b77#e77;,c74  7,e7 ,section #bhj;,c
 is am5d$-- 7i7 by /rik+ or basic rese>*
 exp5ses 7z def9$ 9 section #da7;e77#b77
 9 subsection 7c77#a71  7ii7 by /rik+   
section #da7;a77#a7 9 subsection        
7c77#b77;,a7 & ins]t+ section #da7;a71 &
  7iii7 by /rik+ or basic rese>* exp5ses
 9 subsection 7c77#b77;,b74  7,f7       
,clause 7i7 ( section                   
#adjj,n7l77#g77;,b7 is am5d$ by /rik+   
section #da7;g7 & ins]t+ section        
#da7;e74  7i7 ,te*nical corrections     
,section #dji is am5d$-- 7#a7 by ins]t+ 
1 z 9 effect be=e ! enactm5t ( ! ,tax   
,re=m ,act ( #aihd7 aft] section        
#da7;c77#a77;,b7 9 subsection           
7b77#a77;,a71  7#b7 by ins]t+ 1 z 9     
effect be=e ! enactm5t ( ! ,tax ,re=m   
,act ( #aihd aft] relat+ to ! employee  

/ock own]%ip cr$it 9 subsection 7b77#d71
  7#c7 by ins]t+ 7z 9 effect be=e !     
enactm5t ( ! ,tax ,re=m ,act ( #aihd7   
aft] section #da7;c77#a77;,b7 9         
subsection 7i77#a77;,a71  7#d7 by ins]t+
 7z 9 effect be=e ! enactm5t ( ! ,tax   
,re=m ,act ( #aihd7 aft] section        
#da7;c77#a77;,b7 9 subsection 7m71  7#e7
 by ins]t+ 7z s 9 effect7 aft] section  
#dh7n77#a7 9 subsection 7m71  7#f7 by   
ins]t+ 7z 9 effect be=e ! enactm5t ( !  
,tax ,re=m ,act ( #aihd7 aft] section   
#dh7n7 9 subsection 7q77#a71 &  7#g7 by 
ins]t+ 7z 9 effect be=e ! enactm5t ( !  
,tax ,re=m ,act ( #aihd7 aft] section   
#da 9 subsection 7q77#c74  7j7          
,effective date  7#a7 ,9 g5]al ,except z
 provid$ 9 p>agraphs 7#b7 & 7#c71 !     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjad4  7#b7 ,p]man5t ext5sion ,!  
am5dm5ts made by subsection 7g7 %all    
apply to am\nts paid or incurr$ aft]    
,decemb] #ca1 #bjac4  7#c7 ,te*nical    
corrections ,! am5dm5ts made by         

subsection 7i7 %all take effect on !    
date ( ! enactm5t ( ?is ,act4  #c4      
,exception f passive loss rules =       
inve/m5ts 9 high te*nology rese>* small 
bus9ess pass-?ru entities  7a7 ,9 g5]al 
,subsection 7c7 ( section #dfi is am5d$ 
by r$esignat+ p>agraphs 7#d7 ?r\gh 7#g7 
z p>agraphs 7#e7 ?r\gh 7#h71            
respectively1 & by ins]t+ aft] p>agraph 
7#c7 ! foll[+ new p>agraph3  7#d7 ,high 
te*nology rese>* activities  7,a7 ,9    
g5]al ,! t]m passive activity %all n    
include any qualifi$ rese>* activity ( !
 taxpay] c>ri$ on by a high te*nology   
rese>* small bus9ess pass-?ru entity4   
7,b7 ,treatm5t ( losses & d$uctions  7i7
 ,9 g5]al ,losses or d$uctions ( a      
taxpay] relat+ to qualifi$ rese>*       
activities c>ri$ on by a high te*nology 
rese>* small bus9ess pass-?ru entity    
%all n be treat$ z losses or d$uctions1 
respectively1 f a passive activity      
except z provid$ 9 clause 7ii7 &        
subp>agraph 7,c74  7ii7 ,limitation     
,clause 7i7 %all apply to losses &      

d$uctions ( a taxpay] relat+ to a high  
te*nology small bus9ess pass-?ru entity 
= a taxable ye> only to ! ext5t t !     
aggregate losses & d$uctions ( ! taxpay]
 relat+ to qualifi$ rese>* activities ( 
su* entity = su* taxable ye> d n exce$ !
 portion ( ! taxpay]'s adju/$ basis 9 ! 
taxpay]'s own]%ip int]e/ 9 su* entity t 
is attributable to money or o!r prop]ty 
contribut$-- 7,i7 9 ex*ange = su*       
own]%ip int]e/1 &  7,,ii7 specifically =
 use 9 connection ) qualifi$ rese>*     
activities4  ,= purposes ( ! prec$+     
s5t5ce1 ! taxpay]'s basis %all n include
 any portion ( su* basis :i* is         
attributable to an increase 9 a p>tn]'s 
%>e ( ! liabilities ( a p>tn]%ip t is   
consid]$ "u section #geb7;a7 z a        
contribution ( money4  7,c7 ,treatm5t ( 
c>ryov]s ,subp>agraph 7,b77i7 %all n    
apply to ! portion ( any loss or        
d$uction t is c>ri$ ov] "u subsection   
7b7 into a taxable ye> o!r ?an ! taxable
 ye> 9 :i* su* loss or d$uction arose4  
7,d7 ,qualifi$ rese>* activity ,=       

purposes ( ?is p>agraph1 ! t]m qualifi$ 
rese>* activity means any activity      
con/itut+ qualifi$ rese>* 7)9 ! mean+ ( 
section #da7;d77#a77;,b7 & tak+ into    
acc\nt p>agraphs 7#c7 & 7#d7 ( section  
#da7;d77 :i* involves a process (       
exp]im5tation4  7,e7 ,high te*nology    
rese>* small bus9ess pass-?ru entity ,= 
purposes ( ?is p>agraph1 ! t]m high     
te*nology rese>* small bus9ess pass-?ru 
entity means any dome/ic pass-?ru entity
 = any taxable ye> if-- 7i7 ei!r-- 7,i7 
m ?an #ge p]c5t ( ! entity's exp5ditures
 7includ+ sal>ies1 r5t & ov]head7 = su* 
taxable ye> are paid or incurr$ 9       
connection ) qualifi$ rese>* 7)9 ! mean+
 ( section #da7;d77#a77;,b71 tak+ into  
acc\nt p>agraphs 7#c7 & 7#d7 ( section  
#da7;d77 t involves a process (         
exp]im5tation conduct$ by ! entity1 or  
7,,ii7 m ?an #ej p]c5t ( ! entity's     
exp5ditures = su* taxable ye> con/itute 
qualifi$ rese>* exp5ses 7z def9$ 9      
section #da7;b71 b det]m9$ )\t reg>d to 
! phrase #fe p]c5t ( 9 p>agraph         

7#c77;,a7 !re(71  7ii7 su* entity is a  
small bus9ess 7)9 ! mean+ ( section     
#da7;b77#c77;,d77iii71 appli$ by        
sub/itut+ #bej = #ejj 9 subclause 7,i7  
!re(71 &  7iii7 at no "t dur+ ! taxable 
ye> does ! entity h aggregate gross     
assets 9 excess ( #aej1jjj1jjj4  7,f7   
,provisions relat$ to aggregate gross   
assets limitation ,= purposes ( ?is     
p>agraph-- 7i7 ,9 g5]al ,except z       
o!rwise provid$ 9 ?is subp>agraph1 ! t]m
 aggregate gross assets has ! mean+ giv5
 su* t]m 9 section #abjb7;d77#b74  7ii7 
,exception = c]ta9 intangibles ,any     
section #aig intangible 7z def9$ 9      
section #aig7;d7 & det]m9$ )\t reg>d to 
section #aig7;e77 :i* is us$ directly 9 
connection ) ! rese>* ref]r$ to 9       
subp>agraph 7,e77i7 %all n be tak5 into 
acc\nt 9 det]m9+ aggregate gross assets4
  7iii7 ,exception = c]ta9 foll[-on     
inve/m5ts ,ca% f a sale ( equity int]e/s
 %all n be tak5 into acc\nt 9 det]m9+   
aggregate gross assets if-- 7,i7 !      
aggregate gross assets ( su* entity     

7det]m9$ imm$iately aft] su* sale & )\t 
reg>d to ?is clause7 d n exce$ ! sum (  
#aej1jjj1jjj1 plus #be p]c5t ( !        
aggregate gross assets ( su* entity     
7det]m9$ imm$iately be=e su* sale & )\t 
reg>d to ?is clause71 &  7,,ii7 !       
aggregate gross assets ( su* entity     
7det]m9$ imm$iately be=e su* sale & )\t 
reg>d to ?is clause7 d n exce$          
#aej1jjj1jjj4  ,sales ( equity int]e/s  
:i* are "p ( ! same plan or arrangem5t1 
or :i* are c>ri$ out ) ! pr9cipal       
purpose ( increas+ ! am\nt ( ca% to :i* 
?is clause applies 7det]m9$ )\t reg>d to
 ?is s5t5ce71 %all be treat$ z a s+le   
sale = purposes ( ?is clause4  7iv7     
,inflation adju/m5t ,9 ! case ( any     
taxable ye> beg9n+ aft] #bjad1 !        
#aej1jjj1jjj am\nt 9 subp>agraph        
7,e77iii7 & subclauses 7,i7 & 7,,ii7 (  
clause 7iii7 %all ea* be increas$ by an 
am\nt equal to-- 7,i7 su* doll> am\nt1  
multipli$ by  7,,ii7 ! co/ ( liv+       
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s 

det]m9$ by sub/itut+ cal5d> ye> #bjac = 
cal5d> ye> #aiib 9 subp>agraph 7,b7     
!re(4  ,any increase det]m9$ "u ! prec$+
 s5t5ce %all be r\nd$ to ! ne>e/        
#ajj1jjj4  7,g7 ,capital exp5ditures    
tak5 into acc\nt = exp5ditures te/ ,an  
exp5diture %all n fail to be tak5 into  
acc\nt "u subp>agraph 7,e77i7 m]ely     
because su* exp5diture is *>geable to   
capital acc\nt4  7,h7 ,pass-?ru entity  
,= purposes ( ?is p>agraph1 ! t]m       
pass-?ru entity means any p>tn]%ip1 ,s  
corporation1 or o!r entity id5tifi$ by !
 ,secret>y z a pass-?ru entity =        
purposes ( ?is p>agraph4  7,i7          
,aggregation rules  7i7 ,9 g5]al ,all   
p]sons treat$ z a s+le employ] "u       
subsection 7a7 or 7b7 ( section #eb1 or 
subsection 7m7 or 7o7 ( section #dad1   
%all be treat$ z a s+le entity =        
purposes ( subp>agraphs 7,e7 &          
7,f77iii74  7ii7 ,limitation :]e entity 
w\ld n qualify ,no entity %all be treat$
 z a high te*nology rese>* small bus9ess
 pass-?ru entity unless su* entity      

qualifies z su* bo? ) & )\t !           
application ( clause 7i74  7,j7         
,activities n engag$ 9 = pr(it &        
economic sub/ance rules ,section #ahc & 
! economic sub/ance rules ( section     
#ggja7o7 %all n apply to disall[ !      
losses1 d$uctions1 & cr$its ( a high    
te*nology rese>* small bus9ess pass-?ru 
entity solely z a result ( losses       
incurr$ by su* entity4  4  7b7 ,mat]ial 
p>ticipation n requir$ ,p>agraph 7#e7 ( 
section #dfi7;c7 ( su* ,code1 z         
r$esignat$ by subsection 7a71 is am5d$  
by /rik+ & 7#c7 9 ! head+ & text &      
ins]t+ 1 7#c71 & 7#d74  7c7 ,c]ta9      
rese>*-,relat$ d$uctions & cr$its ( high
 te*nology rese>* small bus9ess         
pass-,?ru entities all[$ = purposes (   
det]m9+ alt]native m9imum tax  7#a7     
,d$uction = rese>* & exp]im5tal         
exp5ditures ,p>agraph 7#b7 ( section    
#ef7;b7 ( su* ,code is am5d$ by add+ at 
! end ! foll[+ new subp>agraph3  7,e7   
,exception = high te*nology rese>* small
 bus9ess pass-?ru entities ,9 ! case ( a

 high te*nology rese>* small bus9ess    
pass-?ru entity 7z def9$ 9 section      
#dfi7;c77#d771 ?is p>agraph %all n apply
 to any am\nt all[able z a d$uction "u  
section #agd7;a74  4  7#b7 ,all[ance (  
c]ta9 rese>*-relat$ cr$its ,subp>agraph 
7,b7 ( section #ch7;c77#d7 ( su* ,code  
is am5d$ by r$esignat+ clauses 7ii7     
?r\gh 7ix7 z clauses 7iii7 ?r\gh 7x71   
respectively1 & by ins]t+ aft] clause   
7i7 ! foll[+ new clause3  7ii7 ! cr$its 
det]m9$ ) respect to an individual      
taxpay] "u sections #da & #dh;,d to !   
ext5t attributable to a high te*nology  
rese>* small bus9ess pass-?ru entity 7z 
def9$ 9 section #dfi7;c77#d771  4  7d7  
,exception to limitation on pass-,?ru ( 
rese>* cr$it ,subsection 7g7 ( section  
#da ( su* ,code is am5d$ by add+ at !   
end ! foll[+3 ,p>agraphs 7#b7 & 7#d7    
%all n apply ) respect to any high      
te*nology rese>* small bus9ess pass-?ru 
entity 7z def9$ 9 section #dfi7;c77#d774
  7e7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to losses &   

cr$its aris+ 9 taxable ye>s beg9n+ on or
 aft] ,decemb] #ca1 #bjad4  #d4 ,enhanc$
 cr$it = highly innovative rese>*  7a7  
,9 g5]al ,section #da1 z am5d$ by ?is   
,act1 is am5d$ by add+ at ! end ! foll[+
 new subsection3  7g7 ,enhanc$ cr$it =  
highly innovative rese>*  7#a7 ,9 g5]al 
,9 ! case ( any c]tifi$ highly          
innovative rese>* exp5ses1 subsection   
7a7 %all be appli$ by sub/itut+ #ce     
p]c5t = #be p]c5t4  7#b7 ,c]tifi$ highly
 innovative rese>* exp5ses ,= purposes (
 ?is subsection-- 7,a7 ,9 g5]al ,! t]m  
c]tifi$ highly innovative rese>* exp5ses
 means any qualifi$ rese>* exp5ses t--  
7i7 are paid or incurr$ dur+ ! taxable  
ye> = ! creation (-- 7,i7 a qualifi$ new
 product category1 or  7,,ii7 product   
te*nology t repres5ts a significant     
improvem5t ov] previ\sly exi/+ product  
te*nology1 &  7ii7 are c]tifi$ z provid$
 9 subp>agraph 7,d74  7,b7 ,qualifi$ new
 product category ,! t]m qualifi$ new   
product category means a category (     
product t-- 7i7 has n previ\sly be5     

produc$ by ! taxpay]1 &  7ii7           
incorporates functions t are            
sub/antially diff]5t f o!r products     
previ\sly produc$ by ! taxpay]4  7,c7   
,significant improvem5t ov] previ\sly   
exi/+ product te*nology ,product        
te*nology satisfies ! requirem5ts (     
subp>agraph 7,a77i77,,ii7 if su*        
te*nology is an enhancem5t ( a product  
t-- 7i7 requires ! use ( new te*niques  
or design me?ods to a*ieve su*          
enhancem5t1 &  7ii7 repres5ts a         
significant advance 9 t]ms ( ! p]=mance1
 en]gy consumption1 environm5tal b5efit1
 public heal? impact1 co/1 or size ( !  
product4  7,d7 ,c]tification by         
,national ,sci5ce ,f\ndation or         
,national ,in/itutes ( ,heal?  7i7 ,9   
g5]al ,qualifi$ rese>* exp5ses %all n be
 treat$ z c]tifi$ highly innovative     
rese>* exp5ses = any taxable ye> unless 
su* exp5ses1 & ! project to :i* !y      
relate1 are c]tifi$ by-- 7,i7 !         
,national ,sci5ce ,f\ndation1 or  7,,ii7
 ! ,national ,in/itutes ( ,heal?1       

:i*ev] has appropriate jurisdiction ov] 
! subject matt] to :i* su* exp5ses      
relate1 z meet+ ! requirem5ts (         
subp>agraph 7,a77i7 7& any regulations  
or guidance issu$ by ! ,secret>y        
pursuant to su* subp>agraph74 ,su*      
c]tification %all be provid$ by !       
,national ,sci5ce ,f\ndation "u !       
program e/abli%$ by section #d7;b7 ( !  
,,compete ,act ( #bjad1 or by !         
,national ,in/itutes ( ,heal? "u !      
program e/abli%$ by section #d7;c7 ( su*
 ,act1 :i*ev] is appropriate1 & %all be 
atta*$ to ! return ( tax = su* taxable  
ye>4 ,9 no ev5t %all any taxpay] apply =
 c]tification to m ?an "o ( ! entities  
describ$ 9 ?is subp>agraph ) respect to 
! same exp5ses4  7ii7 ,advance          
c]tification  7,i7 ,9 g5]al ,!          
c]tification ( exp5ses "u clause 7i7 may
 be made & provid$ to ! taxpay] n m ?an 
#c taxable ye>s be=e ! fir/ taxable ye> 
= :i* ! enhanc$ cr$it "u ?is subsection 
w be claim$ ) respect to su* exp5ses4   
7,,ii7 ,reapplication ,! ,national      

,sci5ce ,f\ndation & ! ,national        
,in/itutes ( ,heal? %all ea* e/abli% &  
make publicly available a cap on ! numb]
 ( times a taxpay] :o has be5 d5i$      
c]tification "u clause 7i7 ) respect to 
any qualifi$ rese>* exp5ses may reapply 
= c]tification = su* exp5ses4 ,! cap    
e/abli%$ by ea* su* entity %all p]mit n 
few] ?an #a reapplication ) respect to  
any exp5ses4  7iii7 ,duration (         
c]tification  7,i7 ,9 g5]al ,!          
c]tification "u clause 7i7 %all apply to
 exp5ses relat+ to ! same project 7z    
id5tifi$ 9 su* c]tification7 = n m ?an  
#g consecutive taxable ye>s1 beg9n+ ) ! 
fir/ taxable ye> = :i* ! enhanc$ cr$it  
"u ?is subsection is claim$ ) respect to
 su* exp5ses4  7,,ii7 ,support+         
docum5tation ,9 ! case ( a c]tification 
t applies = m ?an #a taxable ye>1 !     
,secret>y may require ! taxpay] to      
provide su* docum5tation z ! ,secret>y  
deems necess>y to demon/rate t ! exp5ses
 to :i* su* c]tification relates cont9ue
 to meet ! requirem5ts ( subp>agraph    

7,a77i74  7iv7 ,limitation on           
c]tifications  7,i7 ,9 g5]al ,! total   
doll> am\nt ( exp5ses :i* are c]tifi$ by
 ea* entity "u clause 7i7 7includ+ by   
means ( advance c]tification "u clause  
7ii77 z highly innovative rese>* exp5ses
 = purposes ( cr$its det]m9$ 9 any      
taxable ye> %all n exce$ #ejj1jjj1jjj4  
7,,ii7 ,adju/m5t = inflation ,9 ! case (
 a taxable ye> beg9n+ aft] ,decemb] #ca1
 #bjaf1 ! #ejj1jjj1jjj am\nt 9 subclause
 7,i7 %all be increas$ by an am\nt equal
 to ! product ( su* doll> am\nt & !     
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye>1 det]m9$ by   
sub/itut+ cal5d> ye> #bjae = cal5d> ye> 
#aiib 9 subp>agraph 7,b7 !re(4  7,,iii7 
,r\nd+ ,if any am\nt z adju/$ "u        
subclause 7,,ii7 is n a multiple (      
#a1jjj1 su* am\nt %all be r\nd$ to !    
next highe/ multiple ( #a1jjj4  4  7b7  
,c]tification by ,national ,sci5ce      
,f\ndation z highly innovative rese>* & 
promotion ( enhanc$ cr$it ,! ,national  
,sci5ce ,f\ndation ,au?orization ,act ( 

#bjjb 7,public ,law #ajg-cfh7 is am5d$  
by add+ at ! end ! foll[+3  #bg4        
,c]tification z highly innovative rese>*
 & promotion ( enhanc$ cr$it  7a7       
,c]tification  7#a7 ,9 g5]al ,!         
,director %all e/abli% a program t      
provides c]tification ( rese>* exp5ses z
 highly innovative rese>* exp5ses =     
purposes ( ! enhanc$ cr$it = highly     
innovative rese>* "u section #da7;g7 ( !
 ,int]nal ,rev5ue ,code ( #aihf4  7#b7  
,application ,a p]son t desires to h    
rese>* exp5ses c]tifi$ z highly         
innovative rese>* exp5ses = purposes ( !
 enhanc$ cr$it = highly innovation      
rese>* "u section #da7;g7 ( ! ,int]nal  
,rev5ue ,code ( #aihf1 %all submit to ! 
,director an application conta9+ su*    
reque/ at su* "t1 9 su* mann]1 &        
accompani$ by su* in=mation z !         
,director may require4  7#c7 ,review (  
submissions ,9 c>ry+ out p>agraph 7#a71 
! ,director %all e/abli% a review       
process t involves-- 7,a7 a set gr\p (  
review]s f v>i\s fields & backgr\nds1 & 

7,b7 publi%$ crit]ia1 develop$ 9        
consultation ) ! ,secret>y ( ! ,treasury
 & ! ,secret>y ( ,comm]ce1 9 accordance 
) ! requirem5ts ( section               
#da7;g77#b77;,a77i7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf & any regulations or     
guidance issu$ by ! ,secret>y ( !       
,treasury pursuant to su* section4  7#d7
 ,"t = review ,a c]tification "u ?is    
subsection %all be d5i$ or approv$ )9   
#abj days ( ! submission ( ! application
 "u p>agraph 7#b7 7#bgj days1 9 ! case (
 an application = advance c]tification  
"u section #da7;g77#b77;,d77ii7 ( !     
,int]nal ,rev5ue ,code ( #aihf74  7b7   
,promotion ( enhanc$ cr$it = highly     
innovative rese>* ,! ,director %all po/ 
on ! website ( ! ,national ,sci5ce      
,f\ndation in=mation on ! enhanc$ cr$it 
= highly innovative rese>* "u section   
#da7;g7 ( ! ,int]nal ,rev5ue ,code (    
#aihf1 & ! process = apply+ =           
c]tification ( rese>* z highly          
innovative rese>*4  7c7 ,confid5tiality 
,! ,director & ea* review] describ$ 9   

subsection 7a77#c77;,a7 %all keep       
confid5tial any in=mation provid$ by a  
p]son t desires to h rese>* exp5ses     
c]tifi$ z highly innovative rese>*      
exp5ses pursuant to ?is section4  4  7c7
 ,c]tification by ,national ,in/itutes (
 ,heal? z highly innovative rese>* &    
promotion ( enhanc$ cr$it ,"p ,h ( title
 ,,iv ( ! ,public ,heal? ,s]vice ,act   
7#db ,u4,s4,c4 #bhi et seq47 is am5d$ by
 add+ at ! end ! foll[+3  #dih;,e4      
,c]tification z highly innovative rese>*
 & promotion ( enhanc$ cr$it  7a7       
,c]tification  7#a7 ,9 g5]al ,!         
,director ( ,,nih %all e/abli% a program
 t provides c]tification ( rese>*       
exp5ses z highly innovative rese>*      
exp5ses = purposes ( ! enhanc$ cr$it =  
highly innovative rese>* "u section     
#da7;g7 ( ! ,int]nal ,rev5ue ,code (    
#aihf4  7#b7 ,application ,a p]son t    
desires to h rese>* exp5ses c]tifi$ z   
highly innovative rese>* exp5ses =      
purposes ( ! enhanc$ cr$it = highly     
innovative rese>* "u section #da7;g7 ( !

 ,int]nal ,rev5ue ,code ( #aihf1 %all   
submit to ! ,director ( ,,nih an        
application conta9+ su* reque/ at su*   
"t1 9 su* mann]1 & accompani$ by su*    
in=mation z ! ,director may require4    
7#c7 ,review ( submissions ,9 c>ry+ out 
p>agraph 7#a71 ! ,director %all e/abli% 
a review process t involves-- 7,a7 a set
 gr\p ( review]s f v>i\s fields &       
backgr\nds1 &  7,b7 publi%$ crit]ia1    
develop$ 9 consultation ) ! ,secret>y ( 
! ,treasury & ! ,secret>y ( ,comm]ce1 9 
accordance ) ! requirem5ts ( section    
#da7;g77#b77;,a77i7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf & any regulations or     
guidance issu$ by ! ,secret>y ( !       
,treasury pursuant to su* section4  7#d7
 ,"t = review ,a c]tification "u ?is    
subsection %all be d5i$ or approv$ )9   
#abj days ( ! submission ( ! application
 "u p>agraph 7#b7 7#bgj days1 9 ! case (
 an application = advance c]tification  
"u section #da7;g77#b77;,d77ii7 ( !     
,int]nal ,rev5ue ,code ( #aihf74  7b7   
,promotion ( enhanc$ cr$it = highly     

innovative rese>* ,! ,director %all po/ 
on ! website ( ! ,national ,in/itutes ( 
,heal? in=mation on ! enhanc$ cr$it =   
highly innovative rese>* "u section     
#da7;g7 ( ! ,int]nal ,rev5ue ,code (    
#aihf1 & ! process = apply+ =           
c]tification ( rese>* z highly          
innovative rese>*4  7c7 ,confid5tiality 
,! ,director ( ,,nih & ea* review]      
describ$ 9 subsection 7a77#c77;,a7 %all 
keep confid5tial any in=mation provid$  
by a p]son t desires to h rese>* exp5ses
 c]tifi$ z highly innovative rese>*     
exp5ses pursuant to ?is section4  4  7d7
 ,effective date ,! am5dm5t made by     
subsection 7a7 %all apply to exp5ses    
paid or incurr$ 9 taxable ye>s beg9n+   
aft] ,decemb] #ca1 #bjae4  #e4 ,cr$it   
all[$ aga9/ alt]native m9imum tax  7a7  
,9 g5]al ,subp>agraph 7,b7 ( section    
#ch7;c77#d7 is am5d$-- 7#a7 by          
r$esignat+ clauses 7ii71 7iii71 7iv71   
7v71 7vi71 7vii71 7viii71 & 7ix7 z      
clauses 7iii71 7iv71 7v71 7vi71 7vii71  
7viii71 7ix71 & 7x71 respectively1 &    

7#b7 by ins]t+ aft] clause 7i7 ! foll[+ 
new clause3  7ii7 = taxable ye>s beg9n+ 
aft] ,decemb] #ca1 #bjac1 ! cr$it       
det]m9$ "u section #da1  4  7b7 ,special
 rule = enhanc$ cr$it = highly          
innovative rese>* ,p>agraph 7#d7 (      
section #ch7;c7 is am5d$ by add+ at !   
end ! foll[+ new subp>agraph3  7,c7     
,special rule = enhanc$ cr$it = highly  
innovative rese>* ,9 ! case ( any       
portion ( ! cr$it det]m9$ "u section #da
 :i* is attributable to subsection 7g7 (
 su* section-- 7i7 subp>agraph 7,a7 %all
 be appli$ sep>ately ) respect to su*   
portion1 &  7ii7 p>agraph 7#a7 %all be  
appli$ to su* portion z if ! am\nt      
det]m9$ "u subp>agraph 7,b7 ( su*       
p>agraph 7 z]o4  4  7c7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjad4  #f4 ,tax-exempt   
f9anc+ ( rese>* p>k facilities  7a7 ,9  
g5]al ,subsection 7a7 ( section #adb is 
am5d$-- 7#a7 by /rik+ or at ! end (     
p>agraph 7#ad71  7#b7 by /rik+ ! p]iod  

at ! end ( p>agraph 7#ae7 & ins]t+ 1 or1
 &  7#c7 by ins]t+ at ! end ! foll[+ new
 p>agraph3  7#af7 rese>* p>k facilities4
  4  7b7 ,def9ition ,section #adb is    
am5d$ by ins]t+ at ! end ! foll[+ new   
subsection3  7n7 ,rese>* p>k facilities 
,= purposes ( subsection 7a77#af71 ! t]m
 rese>* p>k facility means a facility   
7includ+ build+s1 l&1 or o!r /ructures7 
:i* is us$ 9 connection ) rese>* &      
exp]im5tation 7z def9$ 9 section        
#afh7;i77#aa774 ,= purposes ( ! prec$+  
s5t5ce1 su* t]m includes facilities :i* 
are directly relat$ & ancill>y to a     
rese>* p>k facility 7det]m9$ )\t reg>d  
to ?is s5t5ce7 if-- 7#a7 su* facilities 
are locat$ on ! same site z ! rese>* p>k
 facility1 &  7#b7 n m ?an #be p]c5t ( !
 net proce$s ( ! issue are us$ to       
provide su* facilities4  4  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply ) respect to bonds   
issu$ on or aft] ! date ( ! enactm5t (  
?is ,act4