(1)), the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess. (3) Election of reduced credit (A) In general In the case of any taxable year for which an election is made under this paragraph— (i) paragraphs (1) and (2) shall not apply, and (ii) the amount of the credit under section 41(a) shall be the amount determined under subparagraph (B). (B) Amount of reduced credit The amount of credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of— (i) the amount of credit determined under section 41(a) without regard to this paragraph, over (ii) the product of— (I) the amount described in clause (i), and (II) the rate of tax under section 11(b). (C) Election An election under this paragraph for any taxable year shall be made not later than the time for filing the return of tax for such year (including extensions), shall be made on such return, and shall be made in such manner as the Secretary may prescribe. Such an election, once made, shall be irrevocable. (4) Controlled groups Paragraph (3) of subsection (b) shall apply for purposes of this subsection. . (d) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021. V Matters related to education A Restrictions relating to foreign funding of educational institutions 501. Restrictions on institutions partnering with the People’s Republic of China (a) Funding restricted An institution of higher education or other post-secondary educational institution shall not be eligible to receive Federal funds (except funds under title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ) or other Department of Education funds that are provided directly to students) if such institution: (1) has a contractual partnership in effect with an entity that is owned or controlled, directly or indirectly, by the Government of the People’s Republic of China