Page:United States Statutes at Large Volume 76.djvu/1112

 1064

PUBLIC LAW 87-834-OCT. 16, 1962

[76 STAT.

" (d) EXCEPTIONS, ETC.—

26 USC 167.

"(1) EXCEPTIONS.—The expenditures to which subsection (a) applies shall not include— " (A) the purchase, construction, installation, or improvement of structures, appliances, or facilities which are of a character which is subject to the allowance for depreciation provided in section 167, or " (B) any amount paid or incurred which is allowable as a deduction without regard to this section. "(2)

CERTAIN PROPERTY USED I N THE CLEARING OF LAND.— " (A) ALLOWANCE FOR DEPRECIATION.—The expenditures to

which subsection (a) applies shall include a reasonable allowance for depreciation with respect to property of the taxpayer which is used in the clearing of land for the purpose of making such land suitable for use in farming and which, if used in a trade or business, would be property subject to the allowance for depreciation provided by section 167. " (B) TREATMENT AS DEPRECIATION DEDUCTION.—For purposes of this chapter, any expenditure described in subparagraph (A) shall, to the extent allowed as a deduction under subsection (a), be treated as an amount allowed under section 167 for exhaustion, wear and tear, or obsolescence of the property which is used in the clearing of land. "(e) ELECTION.—The election under subsection (a) for any taxable year shall be made within the time prescribed by law (including extensions thereof) for filing the return for such taxable year. Such election shall be made in such manner as the Secretary or his delegate ma;^ by regulations prescribe. Such election may not be revoked except with the consent of the Secretary or his delegate." 26 USC 263.

(b) CONFORMING AMENDMENT.—Section 2 6 3 (a)(1)

(relating to

disallowance of deductions for capital expenditures) is amended by striking out "or" at the end of subparagraph (C), by striking out the period at the end of subparagraph (D) and inserting ", or", and by adding at the end thereof the following new subparagraph: " (E) expenditures by farmers for clearing land deductible under section 182." (c) CLERICAL AMENDMENT.—The table of sections for such part VI is amended by adding at the end thereof the following: "Sec. 182. Expenditures by farmers for clearing land."

(d) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to taxable years beginning after December 31, 1962. SEC. 22. CHARITABLE CONTRIBUTIONS MADE FROM INCOME ATTRIBUTABLE TO SEVERAL TAXABLE YEARS. (a) TREATMENT FOR PURPOSES OF PART I OF SUBCHAPTER Q.—Sec-

26 USC 1307.

tion 1307 (relating to rules applicable to part I of subchapter Q) is amended by adding at the end thereof the following new subsection: " (e) ELECTION W I T H RESPECT TO CHARITABLE CONTRIBUTIONS.—In

the case of an individual who elects (in such manner and at such time as the Secretary or his delegate prescribes by regulations) to have the provisions of this subsection apply, an amount received or accrued to which this part applies shall be reduced, for purposes of computing the tax liability of the taxpayer under this part with respect to the amount so received or accrued, by an amount equal to that portion of (1) the amount of charitable contributions made by the taxpayer during the taxable year in which the amount is so received or accrued

�