Sec. 617. Election to expense property used in the production of energy
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Part VI of subchapter B of chapter 1 is amended by inserting after section 179E the following new section: A taxpayer may elect to treat the cost of any property used in the production of energy as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the property is placed in service. An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year.
Such election shall specify the property to which the election applies and shall be made in such manner as the Secretary may by regulations prescribe. Any election made under this section may not be revoked except with the consent of the Secretary. For purposes of this section, the term property used in the production of energy means property— used in the production of energy, the original use of which commences with the taxpayer, and which is placed in service by the taxpayer after the date of the enactment of this section.
No expenditures shall be taken into account under subsection
(a)with respect to the portion of the cost of any property taken into account in determining a credit or deduction under any other section of this chapter. For purposes of this subtitle, if a deduction is allowed under this section with respect to any property, the basis of such property shall be reduced by the amount of the deduction so allowed. No deduction shall be allowed under subsection
(a)to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the mines of the taxpayer as the Secretary shall require. . Section 1016(a) is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph
(37)and inserting , and , and by adding at the end the following new paragraph: to the extent provided in section 179F(e). . Section 263(a)(1) of the Internal Revenue Code of 1986 (relating to capital expenditures) is amended by striking or at the end of subparagraph (K), by striking the period at the end of paragraph
(L)and inserting , or , and by adding at the end the following new subparagraph: expenditures for which a deduction is allowed under section 179F. . Section 1245(a) of such Code is amended by inserting 179F, after 179E, both places it appears in paragraphs (2)(C) and (3)(C). The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 179E the following new item: Sec. 179F. Election to expense property used in the production of energy. . The amendments made by this section shall apply to taxable years beginning after December 31, 2014.