business concern The term qualified research intensive small business concern means, with respect to any taxable year, any small business concern (as defined in section 3 of the Small Business Act) if— (A) such taxable year begins not later than 10 years after the date on which such entity is established, (B) such entity employs an average of fewer than 100 employees on business days during such year, and (C) at least 30 percent of the gross expenditures of such entity for such year are research or experimental expenditures under section 174. (d) Certain taxpayers not eligible No credit shall be determined under this section for any equity investment in any qualified research intensive small business concern made by any individual who, at the time of the investment, is— (1) an employee of such concern, or (2) a member of the family (within the meaning of section 267(c)(4)) of an employee of such concern. (e) Basis reduction The basis of any qualified equity investment shall be reduced by the amount of any credit determined under this section with respect to such investment. This subsection shall not apply for purposes of sections 1202, 1400B, and 1400F. (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, (2) which impose appropriate reporting requirements, and (3) which apply the provisions of this section to newly formed entities. . (b) Credit made part of general business credit Subsection (b) of section 38 (relating to current year business credit) is amended by striking plus at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , plus , and by adding at the end the following new paragraph: (38) the research intensive investment tax credit determined under section 45T. . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: