674
P U B L I C LAW 9 1 - 1 7 2 - D E C. 30, 1969
[83 STAT.
(b) CONFORMING AMENDMENT. — The t a b l e of sections for x^art VI of
jgliaulW.'^ 26 USC 263.
subchapter B of chapter 1 is amended by a d d i n g a t the end thereof the following new items: "Sec. 184. Amortization of certain railroad rolling stock. "Sec. 185. Amortization of railroad grading and tunnel bores." (c) EFFECTIVE D A T E. — The amendments m a d e by t h i s section shall a p p l y w i t h respect to tax a b l e years b e g i n n i n g after December 31, 1969. SEC. 706. EXPENDITURES IN CONNECTION WITH CERTAIN RAILROAD ROLLING STOCK. (^) I ^ GENERAL. — S e c t i o n 263 ( r e l a t i n g to capital expenditures) is amended by a d d i n g a t the e n d thereof the following new subsection: "(e)
26 USC 162, 212.
Post, p. 711.
CONNECTION
WITH
CERTAIN
RAILROAD
R O L L I N G S TO C K. — I n the case of expenditures i n connection w i t h the rehabilitation of a u n i t of r a i l r o a d r o l l i n g stock (except a locomotive) used by a domestic common c a r r i e r by r a i l r o a d which would, b u t for t h i s subsection, be p r o p e r l y c h a r g e a b l e to capital account, such expenditures, if during any 12-month period they d o not exceed a n a m o u n t equal to 20 percent of the basis of such unit i n the h and s of the tax p a y e r, shall be t r e a t e d ( notwithstanding subsection (a)) as deductjble r e p a i r s under section 162 o r 212." (b) EFFECTIVE D A T E. — The amendment m a d e by subsection (a) shall a p p l y w i t h respect to tax a b l e years b e g i n n i n g after December 31, 1969. SEC. 707. AMORTIZATION OF CERTAIN COAL MINE SAFETY EQUIPMENT. (a) A L L O W A N C E. — Part VI of subchapter B of chapter 1 ( r e l a t i n g to itemized deductions for i n d i v i d u a l s and corporations) is amended by a d d i n g after section 186 ( a d d e d by section 904 of t h i s Act) the following new section. "SEC. 187. AMORTIZATION OF CERTAIN COAL MINE SAFETY EQUIPMENT. "(a)
^"'^' p- 649-
EXPENDITURES I N
ALLOW^ANCE OF DEDUCTION. — E v e r y
p e r s o n, at h i s
election,
shall be entitled to a deduction w i t h respect to the amortization of the adjusted basis (for determining g a i n) of any certified coal mine safety equipment ( a s defined in subsection (d)), based on a period of 60 months. S u c h amortization deduction shall be a n a m o u n t, w i t h respect to each month of such period w i t h i n the taxable year, equal to the adjusted basis of the certified coal m i n e safety equipment a t the e n d of such month divided by the n u m b e r of months ( i n c l u d i n g the month for which the deduction is c o m p u t e d) r e m a i n i n g in the period. S u c h adjusted basis a t the e n d of the month shall be c o m p u t e d w i t h o u t r e g a r d to the amortization deduction for such month. The amortization deduction provided by t h i s section w i t h respect to any certified coal mine safety equipment for any month shall be in lieu of the depreciation deduction with respecl to such equipment for such month provided by section 167. The 60-month period shall begin, as to any certified coal m i n e safety equipment, a t the election of the tax p a y e r, w i t h the month following the month in which such equipment was placed in service o r w i t h the succeeding tax a b l e year. "(b)
ELECTION OF AMORTIZATION. — The election of the tax p a y e r to
take the amortization deduction and to begin the 60-month period w i t h the month following the month in which the certified coal m i n e safety equipment was placed in service, or w i t h the taxable year succeeding the taxable year i n which such equipment is placed in service, shall be m a d e by filing w i t h the Secretary or h i s delegate, in such m a n n e r, i n such form, and w i t h i n such time, as the Secretary o r h i s delegate may by r e g u l a t i o n s prescribe, a statement of such election. "(c)
TERMINATION
OF AMORTIZATION
DEDUCTION.—A
taxpayer
which has elected under subsection (b) to t a k e the amortization deduc-
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