Page:United States Statutes at Large Volume 96 Part 1.djvu/459

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 417

(C) by striking out paragraph (10) and inserting in lieu thereof the following: "(10) INCENTIVE STOCK OPTIONS.—With respect to the transfer of a share of stock pursuant to the exercise of an incentive stock option (as defined in section 422A), the amount by which the fair market value of the share at the time of exercise exceeds the option price." (2) CONFORMING AMENDMENTS.—

(A) The next to last sentence of section 57(a) is amended 95 Stat. 224. by striking out "(3), (11), and (12)" and inserting in lieu ^6 USC 57. thereof "(1), (3), (5), (6), (11), and (12)(A)". (B) Section 57(a) is amended by striking out the last sentence. (c) OPTIONAL 10-YEAR WRITEOFF OF CERTAIN TAX PREFERENCES—

(1) Section 58 (relating to rules for application of minimum 26 USC 58. tax) is amended by adding at the end thereof the following new subsection: "(i) OPTIONAL 10-YEAR WRITEOFF OF CERTAIN TAX PREFERENCES.—

"(1) IN GENERAL.—For purposes of this title, in the case of an individual, any qualified expenditure to which an election under this paragraph applies shall be allowed as a deduction ratably over the 10-year period beginning with the taxable year in which such expenditure was made. "(2) QuAUFiED EXPENDITURE.—For purposes of this subsection, the term 'qualified expenditure' means any amount which, but for an election under this subsection, would have been allowable as a deduction for the taxable year in which paid or incurred under— "(A) section 173 (relating to circulation expenditures), "(B) section 174(a) (relating to research and experimental expenditures), "(C) section 263(c) (relating to intangible drilling and development expenditures), "(D) section 616(a) (relating to development expenditures), or "(E) section 617 (relating to deduction of certain mining exploration expenditures). "(3) OTHER SECTIONS NOT APPLICABLE.—Except as provided in

this subsection, no deduction shall be allowed under any other section for any qualified expenditure to which an election under this subsection applies. "(4) SPECIAL ELECTION FOR INTANGIBLE DRILLING A N D DEVELOPMENT COSTS NOT ALLOCABLE TO INTEREST AS LIMITED PARTNER.—

"(A) IN GENERAL.—In the case of any nonlimited partnership intangible drilling costs to which an election under this paragraph applies— "(i) the applicable percentage of such costs (adjusted as provided in section 48(q)) shall be allowed as a Post, p. 427. deduction for the taxable year in which paid or incurred and for each of the 4 succeeding taxable years, and "(ii) such costs shall be treated, for purposes of determining the amount of the credit allowable under section 38 for the taxable year in which paid or incurred, as qualified investment (within the meaning of subsections (c) and (d) of section 46) with respect to property placed in service during such year.

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