‘‘(B) employs an average of fewer than 
500 employees on business days during such 
year. 
‘‘(4) INVESTMENT PERIOD.—The term ‘invest-
ment period’ means the period— 
‘‘(A) beginning on the date the qualified 
technology small business concern first receives 
funds pursuant to a funding agreement under 
the 
Small 
Business 
Innovation 
Research 
(SBIR) program under section 9 of the Small 
Business Act, and 
‘‘(B) ending on the last day of the 18- 
month period beginning on the date on which 
such funding agreement ceases to be in effect. 
‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—Except as provided in 
paragraph (2), the credit which would be allowed 
under subsection (a) for any taxable year (deter-
mined without regard to this subsection) shall be 
treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who elects the application of this para-
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graph, for purposes of this title, the credit al-
lowed under subsection (a) for any taxable year 
(determined after application of paragraph (1)) 
shall be treated as a credit allowable under sub-
part A for such taxable year. 
‘‘(B) CARRYFORWARD OF UNUSED CRED-
IT.—If the credit allowable under subsection (a) 
by reason of subparagraph (A) exceeds the limi-
tation imposed by section 26(a) for such taxable 
year, reduced by the sum of the credits allow-
able under subpart A (other than this section) 
for such taxable year, such excess shall be car-
ried to each of the succeeding 20 taxable years 
to the extent that such unused credit may not 
be taken into account under subsection (a) by 
reason of subparagraph (A) for a prior taxable 
year because of such limitation. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) RELATED PARTIES.—For purposes of this 
section— 
‘‘(A) IN
GENERAL.—All related persons 
shall be treated as 1 person. 
‘‘(B) RELATED PERSONS.—A person shall 
be treated as related to another person if the 
relationship between such persons would result 
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in the disallowance of losses under section 267 
or 707(b). 
‘‘(2) BASIS.—For purposes of this subtitle, the 
basis of any investment with respect to which a cred-
it is allowable under this section shall be reduced by 
the amount of such credit so allowed. 
‘‘(3) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any qualified equity investment which is held by the 
taxpayer less than 3 years, except that no benefit 
shall be recaptured in the case of— 
‘‘(A) transfer of such investment by reason 
of the death of the taxpayer, 
‘‘(B) transfer between spouses, or 
‘‘(C) transfer incident to the divorce (as 
defined in section 1041) of such taxpayer. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be appropriate to carry out this 
section, including regulations— 
‘‘(1) which prevent the abuse of the purposes of 
this section, and 
‘‘(2) which impose appropriate reporting re-
quirements.’’. 
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(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to current year business credit) is amended by strik-
ing ‘‘plus’’ at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(37) the portion of the qualified equity invest-
ment credit to which section 30E(d)(1) applies.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by inserting after paragraph 
(37) the following new paragraph: 
‘‘(38) to the extent provided in section 
30E(d)(2).’’. 
(2) Section 25(e)(1)(C) of such Code is amend-
ed by inserting ‘‘30E,’’ after ‘‘25D,’’. 
(3) Section 1400C(d) of such Code is amended 
by inserting ‘‘and 30E’’ after ‘‘25D’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 30D the following new item: 
‘‘Sec. 30E. Investments in high technology and biotechnology business concerns 
developing innovative technologies.’’. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to investments made after Decem-
ber 31, 2012, in taxable years ending after such date. 
Æ 
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