(a) Alternative incremental credit. At the election of the taxpayer, the credit determined under section 41(a)(1) equals the amount determined under section 41(c)(4).
(b) Election—(1) In general. A taxpayer may elect to apply the provisions of the alternative incremental credit in section 41(c)(4) for any taxable year of the taxpayer beginning after June 30, 1996. If a taxpayer makes an election under section 41(c)(4), the election applies to the taxable year for which made and all subsequent taxable years.
(2) Time and manner of election. An election under section 41(c)(4) is made by completing the portion of Form 6765, “Credit for Increasing Research Activities,” relating to the election of the alternative incremental credit, and attaching the completed form to the taxpayer’s timely filed original return (including extensions) for the taxable year to which the election applies.
(3) Revocation. An election under this section may not be revoked except with the consent of the Commissioner. A taxpayer must attach the Commissioner’s consent to revoke an election under section 41(c)(4) to the taxpayer’s timely filed original return (including extensions) for the taxable year of the revocation.
(4) Effective date. Paragraphs (b)(2) and (3) of this section are applicable for taxable years ending on or after January 3, 2001.
[T.D. 8930, 66 FR 295, Jan. 3, 2001]