respectively, and (B) by striking paragraph (1) and inserting the following: (1) In general No deduction shall be allowed for that portion of the qualified research expenses (as defined in section 41(b)) or basic research expenses (as defined in section 41(e)(2)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 41(a). (2) Similar rule where taxpayer capitalizes rather than deducts expenses If— (A) the amount of the credit determined for the taxable year under section 41(a)(1), exceeds (B) the amount allowable as a deduction for such taxable year for qualified research expenses or basic research expenses (determined without regard to paragraph (1)), the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess. , and (C) in paragraph (3)(A)(i), as redesignated by subparagraph (A), by striking paragraph (1) and inserting paragraphs (1) and (2) . (3) The table of sections for part VI of subchapter B of chapter 1, as amended by section 13206, is amended by striking the item related to section 174 and inserting the following: Sec. 174. Research and experimental expenditures. . 15006. Reporting (a) In general Subpart B of part III of subchapter A of chapter 61, as amended by this Act, is amended by adding at the end the following new section: 6050Z. Transaction affecting revenue dependent proposals (a) Research and experimental expenditures Any taxpayer who makes research and experimental expenditures (within the meaning of section 174) during a taxable year shall make a return according to the forms and regulations prescribed by the Secretary, setting forth the aggregate amount of such expenditures. (b) Foreign related party payments Any taxpayer who makes a payment to a foreign person which is a related party (as such terms are defined in section 59A) of the taxpayer during the taxable year shall make a return according to the forms and regulations