; (2) by striking the period at the end of clause (iii) and inserting , or ; and (3) by adding at the end the following new clause: (iv) reduction of costs associated with— (I) a business component of the taxpayer, or (II) research relating to a purpose described in clause (i), (ii), or (iii). . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016. 7. Inclusion of obsolescence mitigation (a) In general Clause (iv) of section 41(d)(3)(A) of the Internal Revenue Code of 1986, as added by section 5, is amended by inserting or obsolescence mitigation after reduction of costs . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2016. 8. Election of reduced credit may be made on amended return (a) In general Subparagraph (C) of section 280C(c)(3) of the Internal Revenue Code of 1986 is amended to read as follows: (C) Election An election under this paragraph shall made in such manner as the Secretary may prescribe and, once made with respect to a taxable year, shall be irrevocable. Such election may be made on the return of tax for the taxable year to which it applies or on an amended return. . (b) Effective date The amendment made by this section shall apply to amended returns which are permitted to be filed under the applicable provisions of the Internal Revenue Code of 1986 after the date of the enactment of this Act.