83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1969
633
(c) CONFORMING AMENDMENTS.—
^
(1) Section 243(b)(3)(C) (iii) is amended by striking out "section 615(c)(1) " and inserting in lieu thereof "sections 615(c) (1) and 617(h)(1)". (2) Paragraph (10) of section 381(c) is amended— (A) by striking out so much as precedes the second sentence and inserting in lieu thereof: "(10)
78 Stat. 53. 26 USC 243.
^SA Stat. 127.
T R E A T M E N T OF CERTAIN M I N I N G EXPLORATION AND DEVEL-
O P M E N T EXPENSES OF DISTRIBUTOR OR TRANSFEROR CORPORATION,
The acquiring corporation shall be entitled to deduct, as if it were the distributor or transferor corporation, expenses deferred under sections 615 and 616 (relating to pre-1970 exploration expenditures and development expenditures, respectively) if the distributor or transferor corporation has so elected."; and (B) by adding at the end thereof the following new sentence: "For the purpose of applying the limitation provided in section 617, if, for any taxable year, the distributor or transferor corporation was allowed the deduction in section 615(a) or section 617(a) or made the election provided in section 615(b), the acquiring corporation shall be deemed to have been allowed such deduction or deductions or to have made such election, as the case may be." (3) Section 703(b) is amended by striking out "(relating to exploration expenditures) or under section 617 (relating to additional exploration expenditures in the case of domestic mining)" and inserting in lieu thereof "(relating to pre-1970 exploration expenditures) or under section 617 (relating to deduction and recapture of certain mining exploration expenditures)". (4) Paragraph (10) of section 1016(a) is amended by inserting "pre-1970" after "certain". (5) The table of sections for part I of subchapter I of Chapter 1 is amended— (A) by striking out the item relating to section 615 and inserting in lieu thereof: "Sec. 615. Pre-1970 exploration expenditures."; and (B) by striking out the item relating to section 617 and inserting in lieu thereof:
^e use 616. --j -.u* " '
^"'^' P- ^^2.
26 USC 703.
^^^ ^'^t- ^oo.
"Sec. 617, Deduction and recapture of certain mining exploration expenditures." (d) EFFECTIVE
DATE.—
(1) IN GENERAL,—The amendments made by this section shall apply with respect to exploration expenditures paid or incurred after December 31, 1969. (2) PRESUMPTION OF ELECTION UNDER SECTION 617.—For purposes of section 617 of the Internal Revenue Code of 1954, an election under section 615(e) of such Code, which is effective with respect to exploration expenditures paid or incurred before January 1, 1970, shall be treated as an election under section 617(a) of such Code with respect to exploration expenditures paid or incurred after December 31, 1969. The preceding sentence shall not apply to any taxpayer who notifies the Secretary of the Treasury or his delegate (at such time and in such manner as the Secretary or his delegate prescribes by regulations) that he does not desire his election under section 615(e) to be so treated.
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