
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC248]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
             PART VIII--SPECIAL DEDUCTIONS FOR CORPORATIONS
 
Sec. 248. Organizational expenditures


(a) Election to amortize

    The organizational expenditures of a corporation may, at the 
election of the corporation (made in accordance with regulations 
prescribed by the Secretary, be treated as deferred expenses. In 
computing taxable income, such deferred expenses shall be allowed as a 
deduction ratably over such period of not less than 60 months as may be 
selected by the corporation (beginning with the month in which the 
corporation begins business).

(b) Organizational expenditures defined

    The term ``organizational expenditures'' means any expenditure 
which--
        (1) is incident to the creation of the corporation;
        (2) is chargeable to capital account; and
        (3) is of a character which, if expended incident to the 
    creation of a corporation having a limited life, would be 
    amortizable over such life.

(c) Time for and scope of election

    The election provided by subsection (a) may be made for any taxable 
year beginning after December 31, 1953, but only if made not later than 
the time prescribed by law for filing the return for such taxable year 
(including extensions thereof). The period so elected shall be adhered 
to in computing the taxable income of the corporation for the taxable 
year for which the election is made and all subsequent taxable years. 
The election shall apply only with respect to expenditures paid or 
incurred on or after August 16, 1954.

(Aug. 16, 1954, ch. 736, 68A Stat. 76; Pub. L. 94-455, title XIX, 
Secs. 1901(a)(36), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1770, 1834.)


                               Amendments

    1976--Subsec. (a). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out 
``or his delegate'' after ``Secretary''.
    Subsec. (c). Pub. L. 94-455, Sec. 1901(a)(36), substituted ``August 
16, 1954'' for ``the date of enactment of this title''.


                    Effective Date of 1976 Amendment

    Amendment by section 1901(a)(36) of Pub. L. 94-455 effective for 
taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. 
L. 94-455, set out as a note under section 2 of this title.
    Amendment by section 1906(b)(13)(A) of Pub. L. 94-455 effective Feb. 
1, 1977, see section 1906(d)(1) of Pub. L. 94-455, set out as a note 
under section 6013 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 56, 170, 312, 535, 545, 556, 
834, 852, 857, 1247, 1363, 1375 of this title.
