§ 1.280C-4T - Credit for increasing research activities (temporary).

§ 1.280C-4T Credit for increasing research activities (temporary).

Cross Reference

Link to an amendment published at 83 FR 13185, Mar. 28, 2018.

(a) [Reserved]. For further guidance, see § 1.280C-4(a).

(b) Controlled groups of corporations; trades or businesses under common control.

(1) [Reserved]. For further guidance, see § 1.280C-4(b)(1).

(2) Example. The following example illustrates an application of paragraph (b) of this section: A, B, and C, all of which are calendar year taxpayers, are members of a controlled group of corporations (within the meaning of section 41(f)(5)). A, B, and C each attach a statement to the 2012 Form 6765, “Credit for Increasing Research Activities,” showing A and C were the only members of the controlled group to have qualified research expenses when calculating the group credit. A and C report their allocated portions of the group credit on the 2012 Form 6765 and B reports no research credit on Form 6765. Pursuant to § 1.280C-4(a), A and B, but not C, each make an election for the reduced credit under section 280(c)(3)(B) on the 2012 Form 6765. In December 2013, B determines it had qualified research expenses in 2012 resulting in an increased group credit. On an amended 2012 Form 6765, A, B, and C each report their allocated portions of the group credit. B reports its credit as a regular credit under section 41(a) and reduces the credit under section 280C(c)(3)(B). C may not reduce its credit under section 280(c)(3)(B) because C did not make an election for the reduced credit with its original return.

(c)

(1) [Reserved]. For further guidance see § 1.280C-4(c)(1).

(2) Taxable years beginning after December 31, 2011. Section 1.280C-4T is applicable for taxable years beginning on or after April 3, 2015. Taxpayers may apply § 1.280C-4T to taxable years beginning after December 31, 2011, but before April 3, 2015. For a taxpayer that does not apply § 1.280C-4T to a taxable year beginning after December 31, 2011, but before April 3, 2015, the guidance that applies to such taxable year is contained in Notice 2013-20 (2013-15 IRB 902).

(3) For taxable years ending before January 1, 2012. See § 1.280C-4 as contained in 26 CFR part 1, revised April 1, 2014.

(4) Expiration date. The applicability of paragraph (b)(2) expires on April 2, 2018.

[T.D. 9717, 80 FR 18099, Apr. 3, 2015]