Alternative Simplified Credit ("ASC")

A method of calculating the Federal R&D tax credit.  Under the ASC method, the R&D credit is equal to 14% of the portion of QRE that exceeds 50% of the average QRE for the prior three tax years. For a startup company, defined for purposes of this calculation as a company without QRE in at least one of the three prior tax years, the R&D credit is equal to 6% of current year QRE.