; but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures. (d) Exploration Expenditures This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas). (e) Only Reasonable Research Expenditures Eligible This section shall apply to a research or experimental expenditure only to the extent that the amount thereof is reasonable under the circumstances. (f) Cross References (1) For adjustments to basis of property for amounts allowed as deductions as deferred expenses under subsection (b), see section 1016(a)(14). (2) For election of 10-year amortization of expenditures allowable as a deduction under subsection (a), see section 59(e). . (b) Clerical Amendment The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 174 and inserting the following new item: Sec. 174. Research and experimental expenditures . (c) Conforming Amendments (1) Section 41(d)(1)(A) is amended by striking specified research or experimental expenditures under section 174 and inserting expenses under section 174 . (2) Section 280C(c) is amended to read as follows: (c) Credit for Increasing Research Activities (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)),