and (ii) an organization described in section 501(c)(3) and exempt from tax under section 501(a). (B) Eligible project partner The term eligible project partner means any person who— (i) is identified in the application for allocation of credit under this section as a project partner, and (ii) participates in, or provides funding for, the research with respect to which limitation was allocated by the Secretary under subsection (b). (3) Special rules (A) In general In the case of a credit under subsection (a) which is determined at the partnership level— (i) for purposes of paragraph (1)(A), a tax-exempt entity shall be treated as the taxpayer with respect to such entity’s distributive share of such credit, and (ii) the term eligible project partner shall include any partner of the partnership. (B) Taxable year in which credit taken into account In the case of any credit (or portion thereof) with respect to which an election is made under paragraph (1), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the tax-exempt entity’s taxable year with respect to which the credit was determined. (d) Coordination with credit for increasing research expenditures (1) In general Except as provided in paragraph (2), any expenses taken into account under this section shall not be taken into account for purposes of determining the credit allowable under section 41 for such taxable year. (2) Expenses included in determining base period research expenses Any expenses taken into account under this section which are qualified research expenses (within the meaning of section 41(b)) shall be taken into account in determining base period research expenses for purposes of applying section 41 to subsequent taxable years. (e) Termination No credit shall be allowed under this section for any taxable year beginning after December 31, 2033. . (b) Deduction disallowed Section 280C of such Code is amended by adding at the end the following new subsection: (i) Credit for