### Question
How does Income Taxes define business credit increase amount?


### Answer
Under *26 U.S.C. § 168*, **business credit increase amount** is defined as:

> the amount equal to the portion of the credit allowable under section 38 (determined without regard to subsection (c) thereof) for the first taxable year ending after March 31, 2008, which is allocable to business credit carryforwards to such taxable year which are—


(I) from taxable years beginning before January 1, 2006, and


(II) properly allocable (determined under the rules of section 38(d)) to the research credit determined under section 41(a)

#### Citation:
  - *26 U.S.C. § 168*
  - 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**

