26 U.S.C. § 196
§ 196. Deduction for certain unused business credits
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1982 by the Tax Equity and Fiscal Responsibility Act of 1982. Last changed March 23, 2018 by the Consolidated Appropriations Act, 2018.
Every change, newest first (14)
- March 23, 2018Consolidated Appropriations Act, 2018
- March 23, 2010Patient Protection and Affordable Care Act (2010)
- August 8, 2005Public Law 109-58
- October 22, 2004American Jobs Creation Act of 2004
- June 7, 2001Economic Growth and Tax Relief Reconciliation Act of 2001
- December 21, 2000Public Law 106-554
- July 22, 1998IRS Restructuring and Reform Act of 1998
- August 20, 1996Small Business Job Protection Act of 1996
- August 10, 1993Omnibus Budget Reconciliation Act of 1993
- November 5, 1990Omnibus Budget Reconciliation Act of 1990
- December 19, 1989Omnibus Budget Reconciliation Act of 1989
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- July 18, 1984Deficit Reduction Act of 1984
- September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
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.
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.
For purposes of this section, the term “qualified business credits” means—
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)),
the work opportunity credit determined under section 51(a),
the alcohol fuels credit determined under section 40(a),
the research credit determined under section 41(a) (other than such credit determined under section 280C(c)(3)) 1 for taxable years beginning after December 31, 1988,
the enhanced oil recovery credit determined under section 43(a),
the empowerment zone employment credit determined under section 1396(a),
the Indian employment credit determined under section 45A(a),
the employer Social Security credit determined under section 45B(a),
the new markets tax credit determined under section 45D(a),
the small employer pension plan startup cost credit determined under section 45E(a),
the biodiesel fuels credit determined under section 40A(a),
the low sulfur diesel fuel production credit determined under section 45H(a),
the new energy efficient home credit determined under section 45L(a), and
the small employer health insurance credit determined under section 45R(a).
Subsection (a) shall be applied by substituting “an amount equal to 50 percent of” for “an amount equal to” in the case of the investment credit determined under section 46 (other than the rehabilitation credit).