(a) Allowance of deduction. --If any portion of the qualified business credits determined for any taxable year has not, after the application of section 38(c) , been allowed to the taxpayer as a credit under section 38 for any taxable year, an amount equal to the credit not so allowed shall be allowed to the taxpayer as a deduction for the first taxable year following the last taxable year for which such credit could, under section 39 , have been allowed as a credit.
(b) Taxpayer's dying or ceasing to exist. --If a taxpayer dies or ceases to exist before the first taxable year following the last taxable year for which the qualified business credits could, under section 39 , have been allowed as a credit, the amount described in subsection (a) (or the proper portion thereof) shall, under regulations prescribed by the Secretary, be allowed to the taxpayer as a deduction for the taxable year in which such death or cessation occurs.
(c) Qualified business credits. --For purposes of this section, the term “qualified business credits” means--
(2) the work opportunity credit determined under section 51(a) ,
(3) the alcohol fuels credit determined under section 40(a) ,
(5) the enhanced oil recovery credit determined under section 43(a) ,
(6) the empowerment zone employment credit determined under section 1396(a) ,
(7) the Indian employment credit determined under section 45A(a) ,
(8) the employer Social Security credit determined under section 45B(a) ,
(9) the new markets tax credit determined under section 45D(a) ,
(10) the small employer pension plan startup cost credit determined under section 45E(a) ,
(11) the biodiesel fuels credit determined under section 40A(a) ,
(12) the low sulfur diesel fuel production credit determined under section 45H(a) ,
(13) the new energy efficient home credit determined under section 45L(a) , and
(14) the small employer health insurance credit determined under section 45R(a) .
(d) Special rule for investment tax credit and research credit. --Subsection (a) shall be applied by substituting “an amount equal to 50 percent of” for “an amount equal to” in the case of--
(1) the investment credit determined under section 46 (other than the rehabilitation credit), and
(2) the research credit determined under section 41(a) for a taxable year beginning before January 1, 1990.
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