PUBLIC LAW 96-223—APR. 2, 1980
94 STAT. 287
"(1) IN GENERAL.—The term 'qualified tertiary injectant expenses' means any cost paid or incurred during the taxable year (whether or not chargeable to capital account) for any tertiary injectant (other than a hydrocarbon injectant which is recoverable) which is used as a part of a tertiary recovery method. "(2) HYDROCARBON INJECTANT.—The term 'hydrocarbon injectant' includes natural gas, crude oil, and any other injectant which is comprised of more than an insignificant amount of natural gas or crude oil. The term does not include any tertiary injectant which is hydrocarbon-based, or a hydrocarbon-derivative, and which is comprised of no more than an insignificant amount of natural gas or crude oil. For purposes of this paragraph, that portion of a hydrocarbon injectant which is not a hydrocarbon shall not be treated as a hydrocarbon injectant. "(3) TERTIARY RECOVERY METHOD.—The term 'tertiary recovery method' means— "(A) any method which is described in subparagraphs (1) through (9) of section 212.78(c) of the June 1979 energy lO CFR 212.78. regulations (as defined by section 4996(b)(8)(C)), or Ante, p. 247. "(B) any other method to provide tertiary enhanced recovery which is approved by the Secretary for purposes of this section. "(c) APPLICATION WITH OTHER DEDUCTIONS.—No deduction shall be allowed under subsection (a) with respect to any expenditure— "(1) with respect to which the taxpayer has made an election under section 263(c), or 26 USC 263. "(2) with respect to which a deduction is allowed or allowable to the taxpayer under any other provision of this chapter." (2) TECHNICAL AND CONFORMING AMENDMENTS.—
(A) The table of sections for such part VI is amended by adding at the end thereof the following new item: "Sec. 193. Tertiary injectants."
(B) Section 263(a)(1) (relating to capital expenditures) is amended— (i) by striking out "or" at the end of subparagraph (E), (ii) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof ", or", and (iii) by adding at the end thereof the following new subparagraph: "(G) expenditures for tertiary injectants with respect to which a deduction is allowed under section 193." (C) Section 1245(a) (relating to gain from dispositions of certain depreciable property) is amended— (i) by striking out "or 190" each place it appears in paragraphs (2)(D) and (3)(D) and inserting in lieu thereof "190, or 193", (ii) by inserting "193," after "190," each place it appears in paragraph (2), and (iii) by inserting "or 193" after "190" in the last sentence of paragraph (2). (D) Section 1250(b)(3) (relating to depreciation adjustments) is amended by striking out "or 190" and inserting in lieu thereof "190, or 193". (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1979.
79-194
O—81 —pt. 1
22: QL3
Ante, p. 286. 26 USC 1245.
26 USC 1250. 26 USC 193 note.
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