qualified research contribution

(4) Special rule for contributions of scientific property used for research (A) Limit on reduction In the case of a qualified research contribution, the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B). (B) Qualified research contributions For purposes of this paragraph, the term “qualified research contribution” means a charitable contribution by a corporation of tangible personal property described in paragraph (1) of section 1221(a), but only if— (i) the contribution is to an organization described in subparagraph (A) or subparagraph (B) of section 41(e)(6), (ii) the property is constructed or assembled by the taxpayer, (iii) the contribution is made not later than 2 years after the date the construction or assembly of the property is substantially completed, (iv) the original use of the property is by the donee, (v) the property is scientific equipment or apparatus substantially all of the use of which by the donee is for research or experimentation (within the meaning of section 174 ), or for research training, in the United States in physical or biological sciences, (vi) the property is not transferred by the donee in exchange for money, other property, or services, and (vii) the taxpayer receives from the donee a written statement representing that its use and disposition of the property will be in accordance with the provisions of clauses (v) and (vi). (C) Construction of property by taxpayer For purposes of this paragraph, property shall be treated as constructed by the taxpayer only if the cost of the parts used in the construction of such property (other than parts manufactured by the taxpayer or a related person) do not exceed 50 percent of the taxpayer’s basis in such property. (D) Corporation For purposes of this paragraph, the term “corporation” shall not include— (i) an S corporation, (ii) a personal holding company (as defined in section 542 ), and (iii) a service organization (as defined in section 414(m)(3) ).

Source

26 USC § 170(e)(4)


Scoping language

For purposes of this paragraph
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