PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 421 (c) EFFECTIVE DATE.—The amendments made by this section 26 USC 28 note. shall apply to taxable years ending after June 30, 1992. SEC. 13112. MODIFICATION OF FIXED-BASE PERCENTAGE FOR STARTUP COMPANIES. (a) GENERAL RULE. —Clause (ii) of section 41(c)(3)(B) is amended 26 USC 4i. to read as follows:
- (ii) FDCED-BASE PERCENTAGE. — In a case to which
this subparagraph applies, the fixed-base percentage is— "(I) 3 percent for each of the taxpayer's 1st 5 taxable years beginning after December 31, 1993, for which the taxpayer has qualified research expenses, "(II) in the case of the taxpayer's 6th such taxable year, Ve of the percentage which the aggregate qualified research expenses of the taxpayer for the 4th and 5th such taxable years is of the aggregate gross receipts of the taxpayer for such years, "(III) in the case of the taxpayer's 7th such taxable year, Vb of the percentage which the aggregate qualified research expenses of the taxpayer for the 5th and 6th such taxable years is of the aggregate gross receipts of the taxpayer for such years, "(IV) in the case of the taxpayer's 8th such taxable year, V2 of the percentage which the aggregate qualified research expenses of the taxpayer for the 5th, 6th, and 7th such taxable years is of the aggregate gross receipts of the taxpayer for such years, "(V) in the case of the taxpayer's 9th such taxable year, % of the percentage which the aggregate qualified research expenses of the taxpayer for the 5th, 6th, 7th, and 8th such taxable years is of the aggregate gross receipts of the taxpayer for such years, "(VI) in the case of the taxpayer's 10th such taxable year, % of the percentage which the aggregate qualified research expenses of the taxpayer for the 5th, 6th, 7th, 8th, and 9th such taxable years is of the aggregate gross receipts of the taxpayer for such years, and "(VII) for taxable years thereafter, the percentage which the aggregate qualified research expenses for any 5 taxable years selected by the taxpayer from among the 5th through the 10th such taxable years is of the aggregate gross receipts of the taxpayer for such selected years.". (b) CONFORMING AMENDMENTS.— (1) Clause (iii) of section 41(c)(3)(B) is amended by striking "clause (i)" and inserting "clauses (i) and (ii)". (2) Subparagraph (D) of section 41(c)(3) is amended by striking "subparagraph (A)" and inserting "subparagraphs (A) and(B)(ii)".
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