### Question
How is the term minimum basic research amount defined?


### Answer
The term **minimum basic research amount** is defined in *26 U.S.C. § 41* as the following:

> an amount equal to the greater of—


(i) 1 percent of the average of the sum of amounts paid or incurred during the base period for—


(I) any in-house research expenses, and


(II) any contract research expenses, or


  

(ii) the amounts treated as contract research expenses during the base period by reason of this subsection (as in effect during the base period)

#### Citation:
  - *26 U.S.C. § 41*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

