Page:United States Statutes at Large Volume 96 Part 1.djvu/466

 96 STAT. 424

PUBLIC LAW 97-248—SEPT. 3, 1982 applied with respect to such corporation by substituting '57.5 percent' for 'one-half. "(5) AMORTIZATION OF POLLUTION CONTROL FACILITIES.—If an

26 USC 169.

election is made under section 169 with respect to any certified pollution control facility, the amortizable basis of such facility for purposes of such section shall be reduced by 15 percent. "(b) SPECIAL RULES FOR TREATMENT OF INTANGIBLE DRILLING COSTS AND MINERAL EXPLORATION AND DEVELOPMENT COSTS.—For pur-

poses of this subtitle, in the case of an applicable corporation— "(1) IN GENERAL.—The amount allowable as a deduction for any taxable year (determined without regard to this section)— "(A) under section 263(c) in the case of an integrated oil company, or "(B) under section 616(a) or 617, shall be reduced by 15 percent. "(2) Special rule for amounts not allowable as deductions under paragraph (1).— "(A) INTANGIBLE DRILLING COSTS.—The amount not allowable as a deduction under section 263(c) for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 36-month period beginning with the month in which the costs are paid or incurred. "(B) MINERAL EXPLORATION AND DEVELOPMENT COSTS.—In

the case of any amount not allowable as a deduction under section 616(a) or 617 for any taxable year by reason of paragraph (1)— "(i) the applicable percentage of the amount not so allowable as a deduction shall be allowable as a deduction for the taxable year in which the costs are paid or incurred and in 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. "(3) APPLICABLE PERCENTAGE.—For purposes of paragraph

(2)(B), the term 'applicable percentage' means the percentage determined in accordance with the following table: "Taxable Year: 1 2 3 4 5 "(4) DISPOSITIONS.— "(A) OIL, GAS, AND GEOTHERMAL PROPERTY.—In

Applicable Percentage: 15 22 21 21 21.

the case of any disposition of any oil, gas, or geothermal property to which section 1254 applies (determined without regard to this section) any deduction under paragraph (2)(A) with respect to intangible drilling and development costs under section 263(c) which are allocable to such property shall, for purposes of section 1254, be treated as a deduction allowable under section 263(c).

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