# Alternative simplified credit

> Alternative simplified credit — The research credit computed as 14% of QREs above 50% of the average QREs of the three prior years, or 6% of current QREs if any one of those years had none; elected on a timely filed original return (or an amended one only if no credit was claimed for that year) and binding for later years unless revoked.

Source: https://lopifi.com/glossary/alternative-simplified-credit
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is alternative simplified credit?** In accounting, alternative simplified credit means the research credit computed as 14% of QREs above 50% of the average QREs of the three prior years, or 6% of current QREs if any one of those years had none; elected on a timely filed original return (or an amended one only if no credit was claimed for that year) and binding for later years unless revoked.

## Also known as

- ASC method

## Words this system refuses for it

- ASC alone (in this system, the FASB Codification)

- **Category:** Research credit
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** research-credit, credit, qualified-research-expenses