Page:United States Statutes at Large Volume 96 Part 1.djvu/460

 96 STAT. 418

PUBLIC LAW 97-248—SEPT. 3, 1982 "(B) APPLICABLE PERCENTAGE.—For purposes of subpara-

graph (A), the term 'applicable percentage' means the percentage determined in accordance with the following table: Applicable percentage: 15 22 21 21 21

"Taxable Year: 1 2 3 4 5 "(C)

NONLIMITED

PARTNERSHIP

INTANGIBLE DRILLING

COSTS.—For purposes of this paragraph, the term 'nonlimited partnership intangible drilling costs' means any qualified expenditure described in paragraph (2)(C) of an individual which is not allocable to such individual's interest as a limited partner in a limited partnership. "(5) ELECTION.—

"(A) IN GENERAL.—An election may be made under this subsection with respect to any qualified expenditure. "(B) REVOCABLE ONLY WITH CONSENT.—An election under this subsection with respect to any qualified expenditure may be revoked only with the consent of the Secretary. "(C) TIME AND MANNER.—An election under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. "(D) PARTNERS.—In the case of a partnership, any election under this subsection shall be made separately by each partner with respect to the partner's allocable share of any qualified expenditure. "(6) DISPOSITIONS.— "(A) OIL, GAS, AND GEOTHERMAL PROPERTY.—In

the case of any disposition of any oil, gas, or geothermal property to which section 1254 applies (determined without regard to this section)— "(i) any deduction under paragraph (1) or (4)(A) with respect to costs which are allocable to such property shall, for purposes of section 1254, be treated as a deduction allowable under section 263(c), and "(ii) in the case of any credit allowable under section 38 by reason of paragraph (4)(B) which is allocable to such property, such disposition shall, for purposes of section 47, be treated as a disposition of section 38 recovery property which is not 3-year property. "(B) APPLICATION OF SECTION 617(d).—In the case of any disposition of mining property to which section 617(d) applies (determined without regard to this subsection), any amount allowable as a deduction under paragraph (1) which is allocable to such property shall, for purposes of section 617(d), be treated as a deduction allowable under section 617(a).

"(7) AMOUNTS TO WHICH ELECTION APPLY NOT TREATED AS TAX

95 Stat. 239. 26 USC 1016.

PREFERENCE.—Any qualified expenditure to which an election under paragraph (1) or (4) applies shall not be treated as an item of tax preference under section 57(a)." (2) Subsection (a) of section 1016 (relating to adjustments to basis) is amended by striking out "and" at the end of paragraph (23), by striking out the period at the end of paragraph (24) and

�