### Question
Can you define what qualified expenditure means?


### Answer
**Qualified expenditure** is defined as the following in *26 U.S.C. § 59*:

> any amount which, but for an election under this subsection, would have been allowable as a deduction (determined without regard to section 291) for the taxable year in which paid or incurred under—



(A) section 173 (relating to circulation expenditures),



(B) section 174(a) (relating to research and experimental expenditures),



(C) section 263(c) (relating to intangible drilling and development expenditures),



(D) section 616(a) (relating to development expenditures), or



(E) section 617(a) (relating to mining exploration expenditures)

#### Citation:
  - *26 U.S.C. § 59*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART VI-ALTERNATIVE MINIMUM TAX**

