26 U.S.C. § 280C

Editorial Notes

References in Text

section 18021(a) of Title 42Section 1301(a) of the Patient Protection and Affordable Care Act, referred to in subsec. (h), is classified to , The Public Health and Welfare.

Codification

Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .

Amendments

Pub. L. 119–21, § 70304(b)2025—Subsec. (a). , substituted “45S(a)(1)(A)” for “45S(a)” and inserted “No deduction shall be allowed for that portion of the premiums paid or incurred for the taxable year which is equal to that portion of the paid family and medical leave credit which is determined for the taxable year under section 45S(a)(1)(B).” after “and 1396(a).”

Pub. L. 119–21, § 70302(b)(2)(B)Subsec. (c)(1). , amended par. (1) generally. Prior to amendment, text read as follows: “If—

“(A) the amount of the credit determined for the taxable year under section 41(a)(1), exceeds

“(B) the amount allowable as a deduction for such taxable year for qualified research expenses or basic research expenses,

the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess.”

Pub. L. 115–141, § 401(d)(6)(B)(iv)2018—Subsec. (a). , substituted “and 1396(a)” for “1396(a), 1400P(b), and 1400R”.

Pub. L. 115–141, § 401(a)(62), substituted “1396(a),” for “and 1396(a),”.

Pub. L. 115–141, § 401(d)(3)(B)(iii)Subsec. (g). , struck out subsec. (g) relating to qualifying therapeutic discovery project credit.

Pub. L. 115–97, § 13403(d)(1)2017—Subsec. (a). , inserted “45S(a),” after “45P(a),”.

Pub. L. 115–97, § 13401(b)Subsec. (b)(3), (4). , added par. (3) and redesignated former par. (3) as (4).

Pub. L. 115–97, § 13206(d)(2)(A)Subsec. (c)(1). , added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: “No deduction shall be allowed for that portion of the qualified research expenses (as defined in section 41(b)) or basic research expenses (as defined in section 41(e)(2)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 41(a).”

Pub. L. 115–97, § 13206(d)(2)(B)Subsec. (c)(2). –(D), redesignated par. (3) as (2), substituted “paragraph (1)” for “paragraphs (1) and (2)” in subpar. (A)(i), and struck out former par. (2) which related to rule where taxpayer capitalizes rather than deducts expenses.

Pub. L. 115–97, § 13206(d)(2)(C)Subsec. (c)(3). , redesignated par. (4) as (3). Former par. (3) redesignated (2).

Pub. L. 115–97, § 13001(b)(1)(A)Subsec. (c)(3)(B)(ii)(II). , substituted “section 11(b)” for “section 11(b)(1)”.

Pub. L. 115–97, § 13206(d)(2)(C)Subsec. (c)(4). , redesignated par. (4) as (3).

Pub. L. 111–148, § 9023(c)(2)2010—Subsec. (g). , added subsec. (g) relating to qualifying therapeutic discovery project credit.

Pub. L. 111–148, § 1401(b), added subsec. (g) relating to credit for health insurance premiums.

Pub. L. 111–148, § 10105(e)(3)Subsec. (h). , substituted “2010, 2011” for “2011”.

Pub. L. 111–148, § 1421(d)(1), added subsec. (h).

Pub. L. 110–2452008—Subsec. (a). inserted “45P(a),” after “45A(a),”.

Pub. L. 110–246, § 15343(c)Subsec. (f). , added subsec. (f).

Pub. L. 110–1722007—Subsec. (d). amended heading and text generally. Prior to amendment, text read as follows: “No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45H(a).”

Pub. L. 109–4322006—Subsec. (e). added subsec. (e).

Pub. L. 109–135, § 201(b)(2)2005—Subsec. (a). , substituted “1400P(b), and 1400R” for “and 1400P(b)”.

Pub. L. 109–135, § 103(b)(2), substituted “1396(a), and 1400P(b)” for “and 1396(a)”.

Pub. L. 108–3572004—Subsec. (d). added subsec. (d).

Pub. L. 106–5542000—Subsec. (c)(1). struck out “or credit” after “deduction” in two places.

Pub. L. 106–1701999—Subsec. (c)(1). inserted “or credit” after “deduction” in two places.

Pub. L. 104–188, § 1205(d)(7)1996—Subsec. (b)(1). , substituted “section 45C(b)” for “section 28(b)”, “section 45C” for “section 28”, and “section 38(c)” for “subsection (d)(2) thereof”.

Pub. L. 104–188, § 1205(d)(7)(B)Subsec. (b)(2)(A). , (C), substituted “section 45C” for “section 28” and “section 38(c)” for “subsection (d)(2) thereof”.

Pub. L. 103–66, § 13322(c)(1)1993—Subsec. (a). , substituted “45A(a), 51(a), and” for “51(a)”.

Pub. L. 103–66, § 13302(b)(1), substituted “Rule for employment credits” for “Rule for targeted jobs credit” in heading and “the sum of the credits determined for the taxable year under sections 51(a) and 1396(a)” for “the amount of the credit determined for the taxable year under section 51(a)” in text.

Pub. L. 101–239, § 7110(c)(1)1989—Subsec. (c)(1), (2)(A). , struck out “50 percent of” before “the amount of the credit”.

Pub. L. 101–239, § 7814(e)(2)(A)Subsec. (c)(3). , added par. (3). Former par. (3) redesignated (4).

Pub. L. 101–239, § 7110(c)(1)Subsec. (c)(3)(B)(ii)(I). , struck out “50 percent of” before “the amount described”.

Pub. L. 101–239, § 7814(e)(2)(A)Subsec. (c)(4). , redesignated par. (3) as (4).

Pub. L. 100–6471988—Subsec. (c). added subsec. (c).

Pub. L. 99–514, § 1847(b)(8)1986—Subsec. (b)(1), (2)(A). , substituted “section 28(b)” for “section 29(b)” in par. (1) and “section 28” for “section 29” in pars. (1) and (2)(A).

Pub. L. 99–514, § 231(d)(3)(E)Subsec. (b)(3). , substituted “section 41(f)(5)”, “section 41(f)(1)(B)”, and “section 41(f)(1)” for “section 30(f)(5)”, “section 30(f)(1)(B)”, and “section 30(f)(1)”, respectively.

Pub. L. 98–369, § 474(r)(10)(A)1984—Subsec. (a). , (B), redesignated subsec. (b) as (a), in heading substituted “targeted jobs credit” for “section 44B credit”, and in text substituted “No deduction shall be allowed for that portion of the wages or salaries paid or incurred for the taxable year which is equal to the amount of the credit determined for the taxable year under section 51(a)” for “No deduction shall be allowed for that portion of the wage or salaries paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 44B (relating to credit for employment of certain new employees) determined without regard to the provisions of section 53 (relating to limitation based on amount of tax)”. Former subsec. (a), which had provided that no deduction would be allowed for that portion of the work incentive program expenses paid or incurred for the taxable year which was equal to the amount of the credit allowable for the taxable year under section 40 (relating to credit for expenses of work incentive programs) determined without regard to the provisions of section 50A(a)(2) (relating to limitation based on amount of tax), and that in the case of a corporation which was a member of a controlled group of corporations (within the meaning of section 50B(g)(1) or a trade or business which was treated as being under common control with other trades or businesses within the meaning of section 50B(g)(2), this subsection would be applied under rules prescribed by the Secretary similar to the rules applicable under paragraphs (1) and (2) of section 50B(g), was struck out.

Pub. L. 98–369, § 474(r)(10)(A)Subsec. (b). , redesignated subsec. (c) as (b). Former subsec. (b) redesignated (a).

Pub. L. 98–369, § 474(r)(10)(C)Subsec. (b)(1), (2)(A). , substituted “29” for “44H”.

Pub. L. 98–369, § 474(r)(10)(D)Subsec. (b)(3). , substituted “section 30(f)(5)” for “section 44F(f)(5)”, “section 30(f)(1)(B)” for “section 44F(f)(1)(B)”, and “section 30(f)(1)” for “section 44F(f)(1)”.

Pub. L. 98–369, § 474(r)(10)(A)Subsec. (c). , redesignated subsec. (c) as (b).

Pub. L. 97–414, § 4(b)(2)(A)1983—, substituted “Certain expenses for which credits are allowable” for “Portion of wages for which credit is claimed under section 40 or 44B” in section catchline.

Pub. L. 97–414, § 4(b)(1)Subsec. (c). , added subsec. (c).

Pub. L. 95–600Pub. L. 96–178Pub. L. 96–2221978—, as amended by and , substituted “section 40 or 44B” for “section 44B” in section catchline, and in text designated existing provisions as subsec. (b) and added subsec. (a).

Statutory Notes and Related Subsidiaries

Effective Date of 2025 Amendment

section 70302(b)(2)(B) of Pub. L. 119–21Dec. 31, 2024Jan. 1, 2025Pub. L. 119–21section 174A of this titleAmendment by applicable to taxable years beginning after , subject to election for retroactive application by certain small businesses and election to deduct certain unamortized amounts paid or incurred in taxable years beginning before , see section 70302(e), (f) of , set out as an Effective Date note under .

section 70304(b) of Pub. L. 119–21Dec. 31, 2025section 70304(c) of Pub. L. 119–21section 45S of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 2017 Amendment

section 13001(b)(1)(A) of Pub. L. 115–97Dec. 31, 2017section 13001(c)(1) of Pub. L. 115–97section 11 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

section 13206(d)(2) of Pub. L. 115–97Dec. 31, 2021section 13206(e) of Pub. L. 115–97section 41 of this titleAmendment by applicable to amounts paid or incurred in taxable years beginning after , see , set out as a note under .

section 13401(b) of Pub. L. 115–97Dec. 31, 2017section 13401(c) of Pub. L. 115–97section 45C of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

section 13403(d)(1) of Pub. L. 115–97Dec. 31, 2017section 13403(e) of Pub. L. 115–97section 38 of this titleAmendment by applicable to wages paid in taxable years beginning after , see , set out as a note under .

Effective Date of 2010 Amendment

section 1401(b) of Pub. L. 111–148Dec. 31, 2013section 1401(e) of Pub. L. 111–148section 36B of this titleAmendment by applicable to taxable years ending after , see , set out as a note under .

section 1421(d)(1) of Pub. L. 111–148Dec. 31, 2009section 1421(f)(1) of Pub. L. 111–148section 38 of this titleAmendment by applicable to amounts paid or incurred in taxable years beginning after , see , set out as a note under .

section 9023(c)(2) of Pub. L. 111–148Dec. 31, 2008section 9023(f) of Pub. L. 111–148section 46 of this titleAmendment by applicable to amounts paid or incurred after , in taxable years beginning after such date, see , set out as a note under .

section 10105(e)(3) of Pub. L. 111–148section 1421 of Pub. L. 111–148section 10105(e)(5) of Pub. L. 111–148section 45R of this titleAmendment by effective as if included in the enactment of , see , set out as a note under .

Effective Date of 2008 Amendment

Pub. L. 110–234Pub. L. 110–246May 22, 2008Pub. L. 110–234section 4 of Pub. L. 110–246section 8701 of Title 7Amendment of this section and repeal of by effective , the date of enactment of , except as otherwise provided, see , set out as an Effective Date note under , Agriculture.

section 15343(c) of Pub. L. 110–246June 18, 2008section 15343(e) of Pub. L. 110–246section 38 of this titleAmendment by applicable to amounts paid or incurred after , see , set out as a note under .

Pub. L. 110–245June 17, 2008section 111(e) of Pub. L. 110–245section 38 of this titleAmendment by applicable to amounts paid after , see , set out as a note under .

Effective Date of 2007 Amendment

Pub. L. 110–172Pub. L. 108–357section 7(e) of Pub. L. 110–172section 1092 of this titleAmendment by effective as if included in the provision of the American Jobs Creation Act of 2004, , to which such amendment relates, see , set out as a note under .

Effective Date of 2006 Amendment

Pub. L. 109–432Dec. 31, 2005section 405(e) of Pub. L. 109–432section 38 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 2004 Amendment

Pub. L. 108–357Dec. 31, 2002section 339(f) of Pub. L. 108–357section 38 of this titleAmendment by applicable to expenses paid or incurred after , in taxable years ending after such date, see , set out as a note under .

Effective Date of 2000 Amendment

Pub. L. 106–554, § 1(a)(7) [title III, § 311(d)]Dec. 21, 2000114 Stat. 2763

Effective Date of 1999 Amendment

Pub. L. 106–170June 30, 1999section 502(c)(3) of Pub. L. 106–170section 41 of this titleAmendment by applicable to amounts paid or incurred after , see , set out as a note under .

Effective Date of 1996 Amendment

Pub. L. 104–188June 30, 1996section 1205(e) of Pub. L. 104–188section 45K of this titleAmendment by applicable to amounts paid or incurred in taxable years ending after , see , set out as a note under .

Effective Date of 1993 Amendment

section 13322(c)(1) of Pub. L. 103–66Dec. 31, 1993section 13322(f) of Pub. L. 103–66section 38 of this titleAmendment by applicable to wages paid or incurred after , see , set out as a note under .

Effective Date of 1989 Amendment

section 7110(c)(1) of Pub. L. 101–239Dec. 31, 1989section 7110(e) of Pub. L. 101–239section 41 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

section 7814(e)(2)(A) of Pub. L. 101–239Pub. L. 100–647section 7817 of Pub. L. 101–239section 1 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, , to which such amendment relates, see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647Dec. 31, 1988section 4008(d) of Pub. L. 100–647section 41 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 1986 Amendment

section 231(d)(3)(E) of Pub. L. 99–514Dec. 31, 1985section 231(g) of Pub. L. 99–514section 41 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

section 1847(b)(8) of Pub. L. 99–514Pub. L. 98–369, div. Asection 1881 of Pub. L. 99–514section 48 of this titleAmendment by effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .

Effective Date of 1984 Amendment

Pub. L. 98–369Dec. 31, 1983section 475(a) of Pub. L. 98–369section 21 of this titleAmendment by applicable to taxable years beginning after , and to carrybacks from such years, see , set out as a note under .

Effective Date of 1983 Amendment

Pub. L. 97–414December 31, 1982section 4(d) of Pub. L. 97–414section 28 of this titleAmendment by applicable to amounts paid or incurred after , in taxable years ending after such date, see , set out as an Effective Date note under .

Effective Date of 1978 Amendment

Pub. L. 95–600, title III, § 322(e)Nov. 6, 197892 Stat. 2839Pub. L. 96–178, § 6(a)Jan. 2, 198093 Stat. 1297Pub. L. 96–222, title I, § 103(a)(7)(A)Apr. 1, 198094 Stat. 211Pub. L. 99–514, § 2Oct. 22, 1986100 Stat. 2095

Pub. L. 96–178, § 6(d)Jan. 2, 198093 Stat. 1298

Effective Date

Dec. 31, 1976section 202(e) of Pub. L. 95–30section 51 of this titleSection applicable to taxable years beginning after , and to credit carrybacks from such years, see , set out as a note under .

Savings Provision

section 401(d)(3)(B)(iii) of Pub. L. 115–141Jan. 1, 2011section 48D(e)(1) of this titlesection 401(d)(3)(C) of Pub. L. 115–141section 49 of this titleFor provisions that amendment made by not apply to expenditures made in taxable years beginning before , in the case of the repeal of , see , set out as a note under .

section 401(d)(6)(B)(iv) of Pub. L. 115–141section 401(d)(6)(C) of Pub. L. 115–141section 1400L of this titleFor provisions that amendment made by not apply, in the case of certain repeals, to various types of wages, bonds, property, or other items before specific dates, see , set out as a note under former .

Pub. L. 115–141Mar. 23, 2018Mar. 23, 2018section 401(e) of Pub. L. 115–141section 23 of this titleFor provisions that nothing in amendment by section 401(d)(3)(B)(iii), (6)(B)(iv) of be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .

Time and Form of Certain Elections Under Subsection (c)(2)

Pub. L. 101–239, title VII, § 7814(e)(2)(B)Dec. 19, 1989103 Stat. 2413

Plan Amendments Not Required Until January 1, 1989

Pub. L. 99–514Jan. 1, 1989section 1140 of Pub. L. 99–514section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .