Page:United States Statutes at Large Volume 113 Part 3.djvu/401

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PUBLIC LAW 106-170—DEC. 17, 1999 113 STAT. 1919 "(2) SPECIAL RULE FOR 2000 AND 2001.— For purposes of any taxable year beginning during 2000 or 2001, the aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of— "(A) the taxpayer's regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27(a), and "(B) the tax imposed by section 55(a) for the taxable year. ". (b) CONFORMING AMENDMENTS.— (1) Section 24(d)(2) of such Code is amended by striking "1998" and inserting "2001". (2) Section 904(h) of such Code is amended by adding at the end the following: "This subsection shall not apply to taxable years beginning during 2000 or 2001. ". (c) EFFECTIVE DATE. —The amendments made by this section shall apply to taxable years beginning after December 31, 1998. SEC. 502. RESEARCH CREDIT. (a) EXTENSION.— (1) IN GENERAL.— Paragraph (1) of section 41(h) of the Internal Revenue Code of 1986 (relating to termination) is amended— (A) by striking "June 30, 19Si9" and inserting "June 30, 2004"; and (B) by striking the material following subparagraph (B). (2) TECHNICAL AMENDMENT.— Subparagraph (D) of section 45C(b)(l) of such Code is amended by striking "June 30, 1999" and inserting "June 30, 2004". (3) EFFECTIVE DATE.— The amendments made by this subsection shall apply to amounts paid or incurred after June 30, 1999. (b) INCREASE IN PERCENTAGES UNDE;R ALTERNATIVE INCRE- MENTAL CREDIT.— (1) IN GENERAL.— Subparagraph (A) of section 41(c)(4) of such Code is amended— (A) by striking "1.65 percent" and inserting "2.65 percent"; (B) by striking "2.2 percent" and inserting "3.2 percent"; and (C) by striking "2.75 percent" and inserting "3.75 percent". (2) EFFECTIVE DATE.— The amendments made by this subsection shall apply to taxable years beginning after June 30, 1999. (c) EXTENSION OF RESEARCH CREDIT TO RESEARCH IN PUERTO RICO AND THE POSSESSIONS OF THE UNITED STATES.— (1) IN GENERAL.— Subsections (c)(6) and (d)(4)(F) of section 41 of such Code (relating to foreign research) are each amended by inserting ", the Commonwealth of Puerto Rico, or any possession of the United States" after "United States". (2) DENIAL OF DOUBLE BENEFIT.— Section 280C(c)(l) of such Code is amended by inserting "or credit" after "deduction" each place it appears. 26 USC 24. 26 USC 904. Applicability. 26 USC 24 note. 26 USC 41. 26 USC 45e. Applicability. 26 USC 41 note. Applicability. 26 USC 41 note. 26 USC 280C.