RESEARCH TAX CREDIT.

SEC. 601. RESEARCH TAX CREDIT. (a) In General.—Paragraph (1) of section 41(h) (relating to termination) is amended— (1) by striking “May 31, 1997” and inserting “June 30, 1998”, and (2) by striking in the last sentence “during the first 11 months of such taxable year.” and inserting “during the 24-month period beginning with the first month of such year. The 24 months referred to in the preceding sentence shall be reduced by the number of full months after June 1996 (and before the first month of such first taxable year) during which the taxpayer paid or incurred any amount which is taken into account in determining the credit under this section”. (b) Technical Amendments.— (1) Subparagraph (B) of section 41(c)(4) is amended to read as follows:111 STAT. 862 “(B) Election.—An election under this paragraph shall apply to the taxable year for which made and all succeeding taxable years unless revoked with the consent of the Secretary.”. (2) Paragraph (1) of section 45C(b) is amended by striking “May 31, 1997” and inserting “June 30, 1998”. (c) Effective Date.—The amendments made by this section shall apply to amounts paid or incurred after May 31, 1997.