Determination year 1985 Clause Samples

Determination year 1985. For determina- tion year 1985, the base period consists of the 3 immediately preceding taxable years: 1982, 1983, and 1984. Pursuant to paragraph (b) of this section, Y is treated as having been in existence during 1982 with qualified research expenses of zero. Because July 1 through De- cember 31, 1982, is a short taxable year, para- graph (d)(2) of this section requires that the qualified research expense for that year be adjusted to $160x for purposes of determining the average qualified research expenses for taxable years during the base period. This $160x is the actual qualified research expense for that year ($80x) multiplied by 12 and di- vided by 6 (the number of months in the short taxable year). Accordingly, the amount determined under paragraph (c)(1) of this section (the average qualified research ex- penses for taxable years during the base pe- riod) is $120x (($0x + $160x + $200x)/3). The amount determined under paragraph (c)(2) of this section is $100x (50 percent of $200x). The amount of base period research expenses is $120x. The credit for determination year 1985 is equal to 25 percent of the excess of $200x (the qualified research expenses incurred during the determination year) over $120x (the base period research expenses). [T.D. 8251, 54 FR 21204, May 17, 1989. Redesig- nated by T.D. 8930, 66 FR 289, Jan. 3, 2001] RULES FOR COMPUTING CREDIT FOR IN- VESTMENT IN CERTAIN DEPRECIABLE PROPERTY