PUBLIC LAW 99-514—OCT. 22, 1986
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100 STAT. 2177
"(II) as a basic research payment for purposes of this section. "(C) COST-OF-LIVING ADJUSTMENT DEFINED.—
"(i) IN GENERAL.—The cost-of-living adjustment for any calendar year is the cost-of-living adjustment for such calendar year determined under section 1(f)(3). "(ii) SPECIAL RULE WHERE BASE PERIOD ENDS IN A CALENDAR YEAR OTHER THAN 1983 OR 1984.—If the b a s e
period of any taxpayer does not end in 1983 or 1984, section 1(f)(3)(B) shall, for purposes of this paragraph, be applied by substituting the calendar year in which such base period ends for 1987. "(6) QUALIFIED ORGANIZATION.—For purposes of this subsection, the term 'qualified organization' means any of the following organizations: "(A)
EDUCATIONAL
INSTITUTIONS.—Any
educational
organization which— "(i) is an institution of higher education (within the meaning of section 3304(f)), and "(ii) is described in section 170(b)(lKA)(ii). "(B) CERTAIN SCIENTIFIC RESEARCH ORGANIZATIONS.—Any
organization not described in subparagraph (A) which— "(i) is described in section 501(c)(3) and is exempt from tax under section 501(a), "(ii) is organized and operated primarily to conduct scientific research, and "(iii) is not a private foundation. "(C)
SCIENTIFIC
TAX-EXEMPT
ORGANIZATIONS.—Any
organization which— "(i) is described in— "(I) section 501(c)(3) (other than a private foundation), or "(II) section 501(c)(6), "(ii) is exempt from tax under section 501(a), "(iii) is organized and operated primarily to promote scientific research by qualified organizations described in subparagraph (A) pursuant to written research agreements, and "(iv) currently expends— "(I) substantially all of its funds, or "(II) substantially all of the basic research payments received by it, for grants to, or contracts for basic research with, an organization described in subparagraph (A). "(D) CERTAIN GRANT ORGANIZATIONS.—Any organization not described in subparagraph (B) or (C) which— "(i) is described in section 501(c)(3) and is exempt from tax under section 501(a) (other than a private foundation), "(ii) is established and maintained by an organization established before July 10, 1981, which meets the requirements of clause (i), "(iii) is organized and operated exclusively for the purpose of making grants to organizations described in subparagraph (A) pursuant to written research agreements for purposes of basic research, and
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