The are few H-1B applicants that can be exempt from this annual cap or quota, if the applicant:
1. is empoyed by an institution of higher education or affiliated non-profit
2. is employed by a non-profit research organization
3. is employed by governmental research organization
4. is already counted towards the previous cap or quota (h-1b transfer or h-1b renewal)
Also, of this 85,000 cap or quota for a fiscal year -- 20,000 are for applicants with masters degree or higher from a US academic institution. Another 6,800 visas are for H-1B1 program under the U.S.-Chile and U.S.-Singapore Free Trade Agreements. The visas that are not used under the free trade agreement can be used the next fiscal year.