Sec. 215. Amortization of development expenditures
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Section 616 of the Internal Revenue Code of 1986 is amended to read as follows: Any expenditures paid or incurred for the development of a mine or other natural deposit (other than an oil or gas well) if paid or incurred after the existence of ores or minerals in commercially marketable quantities has been disclosed shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expenditure was paid or incurred. For purposes of subsection (a), any expenditures paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month.
Except as provided in this section, no depreciation or amortization deduction shall be allowed with respect to expenditures described in subsection (a). If any property with respect to which expenditures described in subsection
(a)are paid or incurred is retired or abandoned during the 84-month period described in such subsection, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this section shall continue with respect to such payment. . The item relating to section 616 in the table of sections for part I of subchapter I of chapter 1 of the Internal Revenue Code of 1986 is amended to read as follows: Sec. 616. Amortization of development expenditures. . Section 56(a)(2)(A) of such Code is amended by striking 616(a) or . Section 59(e) of such Code is amended— in paragraph (2)— in subparagraph (C), by inserting or at the end, by striking subparagraph (D), and by redesignating subparagraph
(E)as subparagraph (D), and in paragraph (5)(A), by striking , 616(a), . Section 263(a)(1) of such Code is amended by striking subparagraph (A). Section 263A(c)(3) of such Code is amended by striking 616, . Section 291(b) of such Code is amended— in paragraph (1)(B), by striking 616(a) or , in paragraph (2), by striking , 616(a), , and in paragraph (3), by striking , 616(a), . Section 312(n)(2)(B) of such Code is amended by striking 616(a) or . Section 381(c) of such Code is amended by striking paragraph (10). Section 1016(a) of such Code is amended by striking paragraph (9). Section 1254(a)(1)(A)(i) of such Code is amended by striking , 616, . The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after the date of the enactment of this Act.