Congress recently enacted a nonrefundable credit based on the cost of qualifying alcohol and drug abuse counseling programs provided by any corporate employer to its employees. the credit is limited to 50 percent of the total cost of the program. if a corporation elects the credit, none of the program costs are allowed as a deduction. any credit in excess of current year tax may not be carried back or forward to another year. tmm corporation spent $80,000 for a qualifying counseling program this year.

if tmm has $500,000 taxable income before consideration of this expense, should it elect the credit or deduct the program’s cost as an ordinary business expense?