Determination year 1983 Clause Samples

Determination year 1983. For determina- tion year 1983, the base period consists of the 3 immediately preceding taxable years: 1980, 1981 and 1982. Although Y was not in exist- ence during 1980, 1981 and 1982, Y is treated under paragraph (b) of this section as having been in existence during those years with qualified research expenses of zero. Thus, the amount determined under paragraph (c)(1) of this section (the average qualified research expenses for taxable years during the base period) is $0x (($0x + $0x + $0x)/3). The amount determined under paragraph (c)(2) of this section is $40x (50 percent of $80x). Ac- cordingly, the amount of base period re- search expenses is $40x. The credit for deter- mination year 1983 is equal to 25 percent of the excess of $80x (the qualified research ex- penses incurred during the determination year) over $40x (the base period research ex- penses).