100 STAT. 2176
PUBLIC LAW 99-514—OCT. 22, 1986 "(i) such payment is pursuant to a written agreement between such corporation and such qualified organization, and "(ii) such basic research is to be performed by such qualified organization. "(B) EXCEPTION TO REQUIREMENT THAT RESEARCH BE PERFORMED BY THE ORGANIZATION.—In the case of a qualified
organization described in subparagraph (C) or (D) of paragraph (6), clause (ii) of subparagraph (A) shall not apply. "(3) QUALIFIED ORGANIZATION BASE PERIOD AMOUNT.—For purposes of this subsection, the term 'qualified organization base period amount' means an amount equal to the sum of^ "(A) the minimum basic research amount, plus "(B) the maintenance-of-effort amount. "(4) MINIMUM BASIC RESEARCH AMOUNT.—For purposes of this subsection— "(A) IN GENERAL.—The term 'minimum basic research amount' means an amount equal to the greater of— "(i) 1 percent of the average of the sum of amounts paid or incurred during the base period for— "(I) any in-house research expenses, and "(II) any contract research expenses, or "(ii) the amounts treated as contract research expenses during the base period by reason of this subsection (as in effect during the base period). "(B) FLOOR AMOUNT.—Except in the case of a taxpayer which was in existence during a taxable year (other than a short taxable year) in the base period, the minimum basic research amount for any base period shall not be less than 50 percent of the basic research payments for the taxable year for which a determination is being made under this subsection. "(5) MAINTENANCE-OF-EFFORT AMOUNT.—For purposes of this subsection— "(A) IN GENERAL.—The term 'maintenance-of-effort amount' means, with respect to any taxable year, an amount equal to the excess (if any) of— "(i) an amount equal to— "(I) the average of the nondesignated university contributions paid by the taxpayer during the base period, multiplied by "(II) the cost-of-living adjustment for the calendar year in which such taxable year begins, over "(ii) the amount of nondesignated university contributions paid by the taxpayer during such taxable year. "(B)
NONDESIGNATED UNIVERSITY CONTRIBUTIONS.—For
purposes of this paragraph, the term 'nondesignated university contribution' means any amount paid by a taxpayer to any qualified organization described in paragraph (6)(A)"(i) for which a deduction was allowable under section 170, and "(ii) which was not taken into account— "(I) in computing the amount of the credit under this section (as in effect during the base period) during any taxable year in the base period, or
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