83
STAT. ] '• (b)
PUBLIC LAW 91-172-DEC. 30, 1969
673
A3I(JI>;TOFDEIHCTIOX.—
" (1) I x GEXEKAL.—The (lodiiction ullowable under siibsectioji (a) for any tax a b l e year shall be an a m o u n t determined by amort i z i n g r a t a b l y over a period of 50 year s the a d j u s t e d basis ( for determining g a i n) of the qualified r a i l r o a d g r a d i n g and tuniiel bores of the tax p a y e r. S u c h 5()-year period shall commence w i t h the first tax a b l e year for which an election m i d e r t h i s section is effective. " (2) SPECIAL RULE. — I n the case of qualified r a i l r o a d g r a d i n g and t u n n e l bores placed i n s e r \ i c e after the b e g i n n i n g of the first taxable year for which a n election under this section is effective, the 50-year j^eriod w i t h respect to such property shall begin with the year following the year the property is placed in service. "'(c) ELECTION o r A:MoriTizATiox.—The election of the tax p a y e r to t a k e the amortization deduction provided in subsection (a) may be m a d e for any tax a b l e year b e g i n n i n g after December?>1, 1909, S u c h election shall be m a d e by filing w i t h the Secretary o r his delegate, in such m a n n e r, in such form, and within such t i m e, as the Secretary o r his delegate may by r e g u l a t i o n s prescribe, a statement of such election. The election shall r e m a i n in effect for all tax a b l e year s subsequent to the first year for which it is effective and shall a p p l y to all qualified r a i l r o a d g r a d i n g and tunnel bores of the taxpayer, unless, on application by the tax p a y e r, the Secretary o r h i s delegate permits h i m, subject to such conditions as the Secretary o r h i s delegate deems necessary, to revoke such election. " (d) D E E IX I T I O X S. — For purposes of t h i s section— " (1)
RAILHOAD ORADIXO AXD Ti'xxEL BORES.—The term ' r a i l r o a d
g r a d i n g and t u n n e l bores" means all improvements r e s u l t i n g from excavations ( i n c l u d i n g t u m i e l i n g), construction of e m b a n k m e n t s, clearings, di^•ersions of r o a d s and s t r e a m s, s o d d i n g of slopes, and from s i m i l a r work necessary to p r o v i d e, construct, reconstruct, alter, p r o t e c t, inqn'OAe, replace, o r restore a r o a d b e d o r right-ofway for railroad track. I f expenditures for improvements described i n the preceding sentence a r c i n c u r r e d w i t h respe€t to a n e x i s t i n g r o a d b e d o r righ.t-of-way for I'ailroad t r a c k, such expenditures shall be considered, in a p p l y i n g t h i s section, as costs for r a i l r o a d g r a d i n g or t u n n e l bores placed in service in the year i n which such costs a r e i n c u r r e d. "(2)
Q U A L I F I E D KAILKOAD GRADIXG AXD TUXX^EL BORES.—The
term 'qualified r a i l r o a d g r a d i n g and t u n n e l bores' means r a i l r o a d g r a d i n g and t u n n e l bores the o r i g i n a l use of which commences after December 31, 1968. "(e)
TREATMEXT
Urox^
RETIRE3IEXT.—If
any
qualified
railroad
g r a d i n g o r t u n n e l bore is r e t i r e d or a b and o n e d during a tax a b l e year for which a n election, under this section is in effect, n o deduction shall be allowed o n account of such retiremento r a b and o n m e n t and the amortization deduction under t h i s section shall continue w i t h respect to such property. T h i s subsection shall not a p p l y if the retiremento r a b and o n m e n t is a t t r i b u t a b l e p r i m a r i l y to fire, s to n n, or other casualty. "(f)
IX ' V E S T M E X T C R E D I T X O T To B E A L L O W E D. — Property eligible
to be a m o r t i z e d under t h i s section shall not be t r e a t e d as section 38 property w i t h i n the m e a n i n s: of section 48(a). (g) KEGFLATIOX'S.— IJie Secretary o r i n s delegate shall prescribe such r e g u l a t i o n s as may be necessary to c a r r y o u t the purposes of t h i s section. " (h) CROSS R E F E R E X C E. —
"For special rule with respect to certain gain derived from the disposition of property the adjusted basis of which is determined with regard to this section, see section 1245."
'^^ Stat. 967. 26 USC 48.
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