Corporations and certain automotive partnerships can elect to accelerate pre-2006 unused research credits or minimum tax credits in lieu of claiming the special depreciation allowance for certain eligible qualified property (as defined in section 168(k)(4)(D) of the Internal Revenue Code). Generally, this election applies to eligible property acquired after March 31, 2008, and placed in service before January 1, 2010 (before January 1, 2011, for long production period property and noncommercial aircraft (defined above)).
If you make an election to accelerate these credits in lieu of claiming the special depreciation allowance for eligible property, you must not take the 50% special depreciation allowance for the property and must depreciate the basis in the property under MACRS using the straight line method. See Which Depreciation Method Applies in chapter 4.
Once made, the election cannot be revoked without IRS consent.taxmap/pubs/p946-015.htm#en_us_publink1000142519
For additional guidance on the election to accelerate the research or minimum tax credit in lieu of claiming the special depreciation allowance, see Rev. Proc. 2008-65 on page 1082 of Internal Revenue Bulletin 2008-44, available at www.irs.gov/pub/irs-irbs/irb08-44.pdf
, and Rev. Proc. 2009-16 on page 449 of Internal Revenue Bulletin 2009-06, available at www.irs.gov/pub/irs-irbs/irb09-06.pdf
. Also, see Form 3800, General Business Credit; Form 8827, Credit for Prior Year Minimum Tax — Corporations; and related instructions.
Additional guidance may also be available in later Internal Revenue Bulletins available at www.irs.gov/irb