### Question
How does the law define applicable percentage?


### Answer
Under *26 U.S.C. § 170*, **applicable percentage** is defined as:

> the percentage determined under the following table which corresponds to a taxable year of the donor ending on or after the date of the qualified intellectual property contribution:




 | **Taxable Year of Donor** Ending on or After Date of Contribution: | **Applicable**Percentage: |
|   1st  | 100   |
|   2nd  | 100   |
|   3rd  | 90   |
|   4th  | 80   |
|   5th  | 70   |
|   6th  | 60   |
|   7th  | 50   |
|   8th  | 40   |
|   9th  | 30   |
|   10th  | 20   |
|   11th  | 10   |
|   12th  | 10

#### Citation:
  - *26 U.S.C. § 170*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

