(i) an activity constitutes qualified research (determined with regard to this subparagraph ), or (ii) a production process with respect to the requirements of paragraph (1) are met. (F) Foreign research. Any research conducted outside the United States, the Commonwealth of Puerto Rico, or any possession of the United States. (G) Social sciences, etc. Any research in the social sciences, arts, or humanities. (H) Funded research. Any research to the extent funded by any grant, contract, or otherwise by another person (or governmental entity). (e) Credit allowable with respect to certain payments to qualified organizations for research. For purposes of this section - (1) In general. In the case of any taxpayer who basic research payments for any taxable year- (A) the amount of basic research payments taken into account under subsection (a)(2) shall be equal to the excess of- (i) such basic research payments, over (ii) the qualified organization base period amount, and (B) that portion of such basic research payments which does not exceed the qualified organization base period amount shall be treated as contract research expenses for purposes of subsection (a)(1) . (2) research payments defined. For purposes of this subsection - (A) In general. The term "basic research payment" means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if- (i) such payment is pursuant to a written agreement between such corporation and such qualified organization, and (ii) such basic research is to be performed by such qualified organization. (B) Exception to requirement that research be performed by the organization. In the case of a qualified organization described in subparagraph (C) or (D) of paragraph (6) , clause (ii) of subparagraph (A) shall not apply. (3) Qualified organization base period amount.
(i) an activity constitutes qualified research (determined with regard to this subparagraph ), or (ii) a production process with respect to the requirements of paragraph (1) are met. (F) Foreign research. Any research conducted outside the United States, the Commonwealth of Puerto Rico, or any possession of the United States. (G) Social sciences, etc. Any research in the social sciences, arts, or humanities. (H) Funded research. Any research to the extent funded by any grant, contract, or otherwise by another person (or governmental entity). (e) Credit allowable with respect to certain payments to qualified organizations for research. For purposes of this section - (1) In general. In the case of any taxpayer who basic research payments for any taxable year- (A) the amount of basic research payments taken into account under subsection (a)(2) shall be equal to the excess of- (i) such basic research payments, over (ii) the qualified organization base period amount, and (B) that portion of such basic research payments which does not exceed the qualified organization base period amount shall be treated as contract research expenses for purposes of subsection (a)(1) . (2) research payments defined. For purposes of this subsection - (A) In general. The term "basic research payment" means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if- (i) such payment is pursuant to a written agreement between such corporation and such qualified organization, and (ii) such basic research is to be performed by such qualified organization. (B) Exception to requirement that research be performed by the organization. In the case of a qualified organization described in subparagraph (C) or (D) of paragraph (6) , clause (ii) of subparagraph (A) shall not apply. (3) Qualified organization base period amount.