
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: 26USC263]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
                      PART IX--ITEMS NOT DEDUCTIBLE
 
Sec. 263. Capital expenditures


(a) General rule

    No deduction shall be allowed for--
        (1) Any amount paid out for new buildings or for permanent 
    improvements or betterments made to increase the value of any 
    property or estate. This paragraph shall not apply to--
            (A) expenditures for the development of mines or deposits 
        deductible under section 616,
            (B) research and experimental expenditures deductible under 
        section 174,
            (C) soil and water conservation expenditures deductible 
        under section 175,
            (D) expenditures by farmers for fertilizer, etc., deductible 
        under section 180,
            (E) expenditures for removal of architectural and 
        transportation barriers to the handicapped and elderly which the 
        taxpayer elects to deduct under section 190,
            (F) expenditures for tertiary injectants with respect to 
        which a deduction is allowed under section 193; \1\
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    \1\ So in original. The semicolon probably should be a comma.
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            (G) expenditures for which a deduction is allowed under 
        section 179; \1\ or
            (H) expenditures for which a deduction is allowed under 
        section 179A.

        (2) Any amount expended in restoring property or in making good 
    the exhaustion thereof for which an allowance is or has been made.

[(b) Repealed. Pub. L. 101-508, title XI, Sec. 11801(a)(16), Nov. 5, 
        1990, 104 Stat. 1388-520]

(c) Intangible drilling and development costs in the case of oil and gas 
        wells and geothermal wells

    Notwithstanding subsection (a), and except as provided in subsection 
(i), regulations shall be prescribed by the Secretary under this 
subtitle corresponding to the regulations which granted the option to 
deduct as expenses intangible drilling and development costs in the case 
of oil and gas wells and which were recognized and approved by the 
Congress in House Concurrent Resolution 50, Seventy-ninth Congress. Such 
regulations shall also grant the option to deduct as expenses intangible 
drilling and development costs in the case of wells drilled for any 
geothermal deposit (as defined in section 613(e)(2)) to the same extent 
and in the same manner as such expenses are deductible in the case of 
oil and gas wells. This subsection shall not apply with respect to any 
costs to which any deduction is allowed under section 59(e) or 291.

(d) Expenditures in connection with certain railroad rolling stock

    In the case of expenditures in connection with the rehabilitation of 
a unit of railroad rolling stock (except a locomotive) used by a 
domestic common carrier by railroad which would, but for this 
subsection, be properly chargeable to capital account, such 
expenditures, if during any 12-month period they do not exceed an amount 
equal to 20 percent of the basis of such unit in the hands of the 
taxpayer, shall, at the election of the taxpayer, be treated 
(notwithstanding subsection (a)) as deductible repairs under section 162 
or 212. An election under this subsection shall be made for any taxable 
year at such time and in such manner as the Secretary prescribes by 
regulations. An election may not be made under this subsection for any 
taxable year to which an election under subsection (e) applies to 
railroad rolling stock (other than locomotives).

[(e) Repealed. Pub. L. 97-34, title II, Sec. 201(c), Aug. 13, 1981, 95 
        Stat. 219]

(f) Railroad ties

    In the case of a domestic common carrier by rail (including a 
railroad switching or terminal company) which uses the retirement-
replacement method of accounting for depreciation of its railroad track, 
expenditures for acquiring and installing replacement ties of any 
material (and fastenings related to such ties) shall be accorded the 
same tax accounting treatment as expenditures for replacement ties of 
wood (and fastenings related to such ties).

(g) Certain interest and carrying costs in the case of straddles

                          (1) General rule

        No deduction shall be allowed for interest and carrying charges 
    properly allocable to personal property which is part of a straddle 
    (as defined in section 1092(c)). Any amount not allowed as a 
    deduction by reason of the preceding sentence shall be chargeable to 
    the capital account with respect to the personal property to which 
    such amount relates.

              (2) Interest and carrying charges defined

        For purposes of paragraph (1), the term ``interest and carrying 
    charges'' means the excess of--
            (A) the sum of--
                (i) interest on indebtedness incurred or continued to 
            purchase or carry the personal property, and
                (ii) all other amounts (including charges to insure, 
            store, or transport the personal property) paid or incurred 
            to carry the personal property, over

            (B) the sum of--
                (i) the amount of interest (including original issue 
            discount) includible in gross income for the taxable year 
            with respect to the property described in subparagraph (A),
                (ii) any amount treated as ordinary income under section 
            1271(a)(3)(A), 1278, or 1281(a) with respect to such 
            property for the taxable year,
                (iii) the excess of any dividends includible in gross 
            income with respect to such property for the taxable year 
            over the amount of any deduction allowable with respect to 
            such dividends under section 243, 244, or 245, and
                (iv) any amount which is a payment with respect to a 
            security loan (within the meaning of section 512(a)(5)) 
            includible in gross income with respect to such property for 
            the taxable year.

    For purposes of subparagraph (A), the term ``interest'' includes any 
    amount paid or incurred in connection with personal property used in 
    a short sale.

               (3) Exception for hedging transactions

        This subsection shall not apply in the case of any hedging 
    transaction (as defined in section 1256(e)).

                (4) Application with other provisions

        (A) Subsection (c)

            In the case of any short sale, this subsection shall be 
        applied after subsection (h).

        (B) Section 1277 or 1282

            In the case of any obligation to which section 1277 or 1282 
        applies, this subsection shall be applied after section 1277 or 
        1282.

(h) Payments in lieu of dividends in connection with short sales

                           (1) In general

        If--
            (A) a taxpayer makes any payment with respect to any stock 
        used by such taxpayer in a short sale and such payment is in 
        lieu of a dividend payment on such stock, and
            (B) the closing of such short sale occurs on or before the 
        45th day after the date of such short sale,

    then no deduction shall be allowed for such payment. The basis of 
    the stock used to close the short sale shall be increased by the 
    amount not allowed as a deduction by reason of the preceding 
    sentence.

        (2) Longer period in case of extraordinary dividends

        If the payment described in paragraph (1)(A) is in respect of an 
    extraordinary dividend, paragraph (1)(B) shall be applied by 
    substituting ``the day 1 year after the date of such short sale'' 
    for ``the 45th day after the date of such short sale''.

                     (3) Extraordinary dividend

        For purposes of this subsection, the term ``extraordinary 
    dividend'' has the meaning given to such term by section 1059(c); 
    except that such section shall be applied by treating the amount 
    realized by the taxpayer in the short sale as his adjusted basis in 
    the stock.

           (4) Special rule where risk of loss diminished

        The running of any period of time applicable under paragraph 
    (1)(B) (as modified by paragraph (2)) shall be suspended during any 
    period in which--
            (A) the taxpayer holds, has an option to buy, or is under a 
        contractual obligation to buy, substantially identical stock or 
        securities, or
            (B) under regulations prescribed by the Secretary, a 
        taxpayer has diminished his risk of loss by holding 1 or more 
        other positions with respect to substantially similar or related 
        property.

     (5) Deduction allowable to extent of ordinary income from 
            amounts paid by lending broker for use of collateral

        (A) In general

            Paragraph (1) shall apply only to the extent that the 
        payments or distributions with respect to any short sale exceed 
        the amount which--
                (i) is treated as ordinary income by the taxpayer, and
                (ii) is received by the taxpayer as compensation for the 
            use of any collateral with respect to any stock used in such 
            short sale.

        (B) Exception not to apply to extraordinary dividends

            Subparagraph (A) shall not apply if one or more payments or 
        distributions is in respect of an extraordinary dividend.

       (6) Application of this subsection with subsection (g)

        In the case of any short sale, this subsection shall be applied 
    before subsection (g).

(i) Special rules for intangible drilling and development costs incurred 
        outside the United States

    In the case of intangible drilling and development costs paid or 
incurred with respect to an oil, gas, or geothermal well located outside 
the United States--
        (1) subsection (c) shall not apply, and
        (2) such costs shall--
            (A) at the election of the taxpayer, be included in adjusted 
        basis for purposes of computing the amount of any deduction 
        allowable under section 611 (determined without regard to 
        section 613), or
            (B) if subparagraph (A) does not apply, be allowed as a 
        deduction ratably over the 10-taxable year period beginning with 
        the taxable year in which such costs were paid or incurred.

This subsection shall not apply to costs paid or incurred with respect 
to a nonproductive well.

(Aug. 16, 1954, ch. 736, 68A Stat. 77; Pub. L. 86-779, Sec. 6(c), Sept. 
14, 1960, 74 Stat. 1001; Pub. L. 87-834, Sec. 21(b), Oct. 16, 1962, 76 
Stat. 1064; Pub. L. 88-563, Sec. 4, Sept. 2, 1964, 78 Stat. 845; Pub. L. 
89-243, Sec. 4(p)(1), (2), Oct. 9, 1965, 79 Stat. 964; Pub. L. 91-172, 
title VII, Sec. 706(a), Dec. 30, 1969, 83 Stat. 674; Pub. L. 92-178, 
title I, Sec. 109(b), (c), Dec. 10, 1971, 85 Stat. 509; Pub. L. 94-455, 
title XVII, Sec. 1701(a), title XIX, Secs. 1904(b)(10)(A)(i), 
1906(b)(13)(A), title XXI, Sec. 2122(b)(2), Oct. 4, 1976, 90 Stat. 1759, 
1817, 1834, 1915; Pub. L. 95-618, title IV, Sec. 402(a), Nov. 9, 1978, 
92 Stat. 3201; Pub. L. 96-223, title II, Sec. 251(a)(2)(B), Apr. 2, 
1980, 94 Stat. 287; Pub. L. 97-34, title II, Secs. 201(c), 202(d)(1), 
title V, Sec. 502, Aug. 13, 1981, 95 Stat. 219, 221, 327; Pub. L. 97-
248, title II, Sec. 204(c)(1), Sept. 3, 1982, 96 Stat. 426; Pub. L. 97-
448, title I, Sec. 105(b)(1), title III, Sec. 306(a)(9)(A), Jan. 12, 
1983, 96 Stat. 2385, 2403; Pub. L. 98-369, div. A, title I, Secs. 56(a), 
102(e)(7), (8), July 18, 1984, 98 Stat. 573, 624, 625; Pub. L. 99-514, 
title IV, Secs. 402(b)(1), 411(b)(1), title VII, Sec. 701(e)(4)(D), 
title XVIII, Sec. 1808(b), Oct. 22, 1986, 100 Stat. 2221, 2225, 2343, 
2817; Pub. L. 100-647, title I, Sec. 1007(g)(5), Nov. 10, 1988, 102 
Stat. 3435; Pub. L. 101-508, title XI, Secs. 11801(a)(16), 11815(b)(3), 
Nov. 5, 1990, 104 Stat. 1388-520, 1388-558; Pub. L. 105-34, title XVI, 
Sec. 1604(a)(1), Aug. 5, 1997, 111 Stat. 1097.)


                               Amendments

    1997--Subsec. (a)(1)(H). Pub. L. 105-34 added subpar. (H).
    1990--Subsec. (b). Pub. L. 101-508, Sec. 11801(a)(16), struck out 
subsec. (b) ``Expenditures for advertising and good will'' which read as 
follows: ``If a corporation has, for the purpose of computing its excess 
profits tax credit under chapter 2E or subchapter D of chapter 1 of the 
Internal Revenue Code of 1939 claimed the benefits of the election 
provided in section 733 or section 451 of such code, as the case may be, 
no deduction shall be allowable under section 162 to such corporation 
for expenditures for advertising or the promotion of good will which, 
under the rules and regulations prescribed under section 733 or section 
451 of such code, as the case may be, may be regarded as capital 
investments.''
    Subsec. (c). Pub. L. 101-508, Sec. 11815(b)(3), substituted 
``section 613(e)(2)'' for ``section 613(e)(3)''.
    1988--Subsec. (c). Pub. L. 100-647 substituted ``section 59(e)'' for 
``section 59(d)''.
    1986--Subsec. (a)(1)(E) to (H). Pub. L. 99-514, Sec. 402(b)(1), 
struck out subpar. (E) relating to nonapplication of par. (1) to 
expenditures by farmers for clearing land deductible under section 182, 
and redesignated subpars. (F) to (H) as (E) to (G), respectively.
    Subsec. (c). Pub. L. 99-514, Sec. 701(e)(4)(D), substituted 
``59(d)'' for ``58(i)''.
    Pub. L. 99-514, Sec. 411(b)(1)(B), inserted ``and except as provided 
in subsection (i),''.
    Subsec. (g)(2)(B)(iv). Pub. L. 99-541, Sec. 1808(b), added cl. (iv).
    Subsec. (i). Pub. L. 99-514, Sec. 411(b)(1)(A), added subsec. (i).
    1984--Subsec. (g)(2). Pub. L. 98-369, Sec. 102(e)(7), amended par. 
(2) generally, striking out ``charges for temporary use of the personal 
property in a short sale, or'' after ``(including'' in subpar. (A)(ii), 
substituting ``any amount treated as ordinary income under section 
1271(a)(3)(A), 1278, or 1281(a) with respect to such property for the 
taxable year, and'' for ``any amount treated as ordinary income under 
section 1232(a)(3)(A) with respect to such property for the taxable 
year'' in subpar. (B)(ii), and adding subpar. (B)(iii).
    Subsec. (g)(4). Pub. L. 98-369, Sec. 102(e)(8), added par. (4).
    Subsec. (h). Pub. L. 98-369, Sec. 56(a), added subsec. (h).
    1983--Subsec. (g)(2)(A)(ii). Pub. L. 97-448, Sec. 105(b)(1), 
substituted ``all other amounts (including charges for temporary use of 
the personal property in a short sale, or to insure, store, or transport 
the personal property) paid or incurred to carry the personal property, 
over'' for ``amounts paid or incurred to insure, store, or transport the 
personal property, over''.
    Subsec. (g)(2)(B)(ii). Pub. L. 97-448, Sec. 306(a)(9)(A), 
substituted ``section 1232(a)(3)(A)'' for ``section 1232(a)(4)(A)''.
    1982--Subsec. (c). Pub. L. 97-248, Sec. 204(c)(1), inserted 
provision that this subsection not apply with respect to any costs to 
which any deduction is allowed under section 58(i) or 291.
    1981--Subsec. (a)(1)(H). Pub. L. 97-34, Sec. 202(d)(1), added 
subpar. (H).
    Subsec. (e). Pub. L. 97-34, Sec. 201(c), struck out subsec. (e) 
which related to the allowance of repair expenses or specified repair, 
rehabilitation, or improvement expenditures.
    Subsec. (g). Pub. L. 97-34, Sec. 502, added subsec. (g).
    1980--Subsec. (a)(1)(G). Pub. L. 96-223 added subpar. (G).
    1978--Subsec. (c). Pub. L. 95-618 inserted ``and geothermal wells'' 
after ``gas wells'' in heading and in text inserted provision that such 
regulations also grant the option to deduct as expenses intangible 
drilling and development costs in the case of wells drilled for any 
geothermal deposit (as defined in section 613(e)(3)) to the same extent 
and in the same manner as such expenses are deductible in the case of 
oil and gas wells.
    1976--Subsec. (a)(1)(F). Pub. L. 94-455, Sec. 2122(b)(2), added 
subpar. (F).
    Subsec. (a)(3). Pub. L. 94-455, Sec. 1904(b)(10)(A)(i)(I), struck 
out par. (3) which provided that no deduction be allowed for amounts 
paid as tax under section 4911 (relating to imposition of interest 
equalization tax) except as provided in subsec. (d).
    Subsec. (d). Pub. L. 94-455, Secs. 1904(b)(10)(A)(i)(I), (II), 
1906(b)(13)(A), redesignated subsec. (e) as (d) and struck out ``or his 
delegate'' after ``Secretary'' and substituted ``subsection (e)'' for 
``subsection (f)''. Former subsec. (d) was struck out.
    Subsec. (e). Pub. L. 94-455, Secs. 1904(b)(10)(A)(i)(I), 
1906(b)(13)(A), redesignated subsec. (f) as (e) and struck out ``or his 
delegate'' after ``Secretary''. Former subsec. (e) redesignated (d).
    Subsec. (f). Pub. L. 94-455, Secs. 1701(a), 1904(b)(10)(A)(i)(I), 
added subsec. (f). Former subsec. (f) redesignated (e).
    1971--Subsec. (e). Pub. L. 92-178, Sec. 109(c), substituted ``shall, 
at the election of the taxpayer, be treated'' for ``shall be treated'' 
and inserted provisions respecting making of election under this 
subsection for any taxable year at such time and in such manner as 
Secretary or his delegate prescribed by regulation and prohibiting 
making of election for any taxable year to which an election under 
subsec. (f) applies to railroad rolling stock (other than locomotives).
    Subsec. (f). Pub. L. 92-178, Sec. 109(b), added subsec. (f).
    1969--Subsec. (e). Pub. L. 91-172 added subsec. (e).
    1965--Subsec. (a)(3). Pub. L. 89-243, Sec. 4(p)(1), inserted 
``Except as provided in subsection (d)'', and struck out ``except to the 
extent that any amount attributable to the amount paid as tax is 
included in gross income for the taxable year'' after parenthetical 
provision.
    Subsec. (d). Pub. L. 89-243, Sec. 4(p)(2), added subsec. (d).
    1964--Subsec. (a)(3). Pub. L. 88-563 added par. (3).
    1962--Subsec. (a)(1)(E). Pub. L. 87-834 added subpar. (E).
    1960--Subsec. (a)(1)(D). Pub. L. 86-779 added subpar. (D).


                    Effective Date of 1997 Amendment

    Section 1604(a)(4) of Pub. L. 105-34 provided that: ``The amendments 
made by this subsection [amending this section and sections 312 and 1245 
of this title] shall take effect as if included in the amendments made 
by section 1913 of the Energy Policy Act of 1992 [Pub. L. 102-486].''


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by section 402(b)(1) of Pub. L. 99-514 applicable to 
amounts paid or incurred after Dec. 31, 1985, in taxable years ending 
after such date, see section 402(c) of Pub. L. 99-514 set out as an 
Effective Date of Repeal note under former section 182 of this title.
    Section 411(c) of Pub. L. 99-514 provided that:
    ``(1) In general.--The amendments made by this section [amending 
this section and sections 243, 291, 381, 616, and 617 of this title] 
shall apply to costs paid or incurred after December 31, 1986, in 
taxable years ending after such date.
    ``(2) Transition rule.--The amendments made by this section shall 
not apply with respect to intangible drilling and development costs 
incurred by United States companies pursuant to a minority interest in a 
license for Netherlands or United Kingdom North Sea development if such 
interest was acquired on or before December 31, 1985.''
    Amendment by section 701(e)(4)(D) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, with certain exceptions and 
qualifications, see section 701(f) of Pub. L. 99-514, set out as an 
Effective Date note under section 55 of this title.
    Amendment by section 1808(b) of Pub. L. 99-514 effective, except as 
otherwise provided, as if included in the provisions of the Tax Reform 
Act of 1984, Pub. L. 98-369, div. A, to which such amendment relates, 
see section 1881 of Pub. L. 99-514, set out as a note under section 48 
of this title.


                    Effective Date of 1984 Amendment

    Amendment by section 56(a) of Pub. L. 98-369 applicable to short 
sales after July 18, 1984, in taxable years ending after that date, see 
section 56(d) of Pub. L. 98-369, set out as a note under section 163 of 
this title.
    Amendment by section 102(e)(7), (8) of Pub. L. 98-369 applicable to 
positions established after July 18, 1984, in taxable years ending after 
that date, except as otherwise provided, see section 102(f), (g) of Pub. 
L. 98-369, set out as a note under section 1256 of this title.


                    Effective Date of 1983 Amendment

    Section 105(b)(2) of Pub. L. 97-448 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply to property 
acquired, and positions established, by the taxpayer after September 22, 
1982, in taxable years ending after such date.''
    Amendment by section 306 of Pub. L. 97-448 effective as if included 
in the provisions of the Tax Equity and Fiscal Responsibility Act of 
1982, Pub. L. 97-248, to which such amendment relates, see section 
311(d) of Pub. L. 97-448, set out as a note under section 31 of this 
title.


                    Effective Date of 1982 Amendment

    Amendment by Pub. L. 97-248 applicable to taxable years beginning 
after December 31, 1982, see section 204(d)(1) of Pub. L. 97-248, set 
out as an Effective Date note under section 291 of this title.


                    Effective Date of 1981 Amendment

    Amendment by sections 201(c) and 202(d)(1) of Pub. L. 97-34 
applicable to property placed in service after Dec. 31, 1980, in taxable 
years ending after that date, see section 209(a) of Pub. L. 97-34, set 
out as an Effective Date note under section 168 of this title.
    Amendment by section 502 of Pub. L. 97-34 applicable to property 
acquired and positions established by the taxpayer after June 23, 1981, 
in taxable years ending after such date, and applicable when so elected 
with respect to property held on June 23, 1981, see section 508 of Pub. 
L. 97-34, set out as an Effective Date note under section 1092 of this 
title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-223 applicable to taxable years beginning 
after Dec. 31, 1979, see section 251(b) of Pub. L. 96-223, set out as an 
Effective Date note under section 193 of this title.


                    Effective Date of 1978 Amendment

    Section 402(e) of Pub. L. 95-618, as amended by Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
    ``(1) In general.--The amendments made by this section [amending 
this section and sections 57, 465, 751, and 1254 of this title] shall 
apply with respect to wells commenced on or after October 1, 1978, in 
taxable years ending on or after such date.
    ``(2) Election.--The taxpayer may elect to capitalize or deduct any 
costs to which section 263(c) of the Internal Revenue Code of 1986 
[formerly I.R.C. 1954] applies by reason of the amendments made by this 
section [amending this section and sections 57, 465, 751, and 1254 of 
this title]. Any such election shall be made before the expiration of 
the time for filing claim for credit or refund of any overpayment of tax 
imposed by chapter 1 of such Code [section 1 et seq. of this title] with 
respect to the taxpayer's first taxable year to which the amendments 
made by this section apply and for which he pays or incurs costs to 
which such section 263(c) applies by reason of the amendments made by 
this section. Any election under this paragraph may be changed or 
revoked at any time before the expiration of the time referred to in the 
preceding sentence, but after the expiration of such time such election 
may not be changed or revoked.''


                    Effective Date of 1976 Amendment

    Section 1904(b)(10)(A)(vii) of Pub. L. 94-455 provided that: ``The 
amendments made by this subparagraph [amending this section and sections 
6011, 6611, and 6651 of this title and repealing sections 6076 and 6680 
of this title] shall apply with respect to acquisitions of stock or debt 
obligations made after June 30, 1974, except that the repeal of 
paragraph (2) of section 6011(d) under clause (ii) shall apply with 
respect to loans and commitments made after such date.''
    Amendment by section 2122(b)(2) of Pub. L. 94-455, as amended by 
Pub. L. 96-167, Sec. 9(c), Dec. 29, 1979, 93 Stat. 1278, applicable to 
taxable years beginning after Dec. 31, 1976, see section 2122(c) of Pub. 
L. 94-455, as amended, set out as an Effective Date note under section 
190 of this title.


                    Effective Date of 1971 Amendment

    Section 109(d)(2), (3) of Pub. L. 92-178 provided that:
    ``(2) The amendment made by subsection (b) [amending this section] 
shall apply to taxable years ending after December 31, 1970.
    ``(3) The amendments made by subsection (c) [amending this section] 
shall apply to taxable years beginning after December 31, 1969.''


                    Effective Date of 1969 Amendment

    Section 706(b) of Pub. L. 91-172 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply with respect to 
taxable years beginning after December 31, 1969.''


                    Effective Date of 1965 Amendment

    Section 4(p)(3) of Pub. L. 89-243 provided that: ``The amendments 
made by this subsection [amending this section] shall apply to taxable 
years ending after September 2, 1964.''
    Section 4(q) of Pub. L. 89-243 provided in part that: ``Except as 
otherwise specifically provided in this section and in the amendments 
made by this section [amending this section and sections 4912, 4914, 
4916, 4917, 4919, 4920, and 4931 of this title], such amendments shall 
apply with respect to acquisitions of stock and debt obligations made 
after February 10, 1965.''


                    Effective Date of 1962 Amendment

    Section 21(d) of Pub. L. 87-834 provided that: ``The amendments made 
by this section [enacting section 182 of this title and amending this 
section] shall apply with respect to taxable years beginning after 
December 31, 1962.''


                    Effective Date of 1960 Amendment

    Amendment by Pub. L. 86-779 applicable to taxable years beginning 
after Dec. 31, 1959, see section 6(d) of Pub. L. 86-779, set out as an 
Effective Date note under section 180 of this title.


                      Short Title of 1965 Amendment

    Section 1(a) of Pub. L. 89-243 provided that: ``This Act [amending 
this section and sections 4912, 4914, 4916, 4917, 4919, 4920, and 4931 
of this title, and enacting provisions set out as notes under sections 
6011 and 6076 of this title] may be cited as the `Interest Equalization 
Tax Extension Act of 1965'.''


                      Short Title of 1964 Amendment

    Section 1(a) of Pub. L. 88-563 provided that: ``This Act [enacting 
sections 4911 to 4920, 4931, 6076, 6680, 6681, and 7241 of this title, 
amending this section and sections 1232, 6011, and 6103 of this title, 
and enacting provisions set out as notes under section 6011 of this 
title] may be cited as the `Interest Equalization Tax Act'.''


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.


  Applicability of Certain Amendments by Pub. L. 99-514 in Relation to 
                   Treaty Obligations of United States

    For applicability of amendment by section 701(e)(4)(D) of Pub. L. 
99-514 notwithstanding any treaty obligation of the United States in 
effect on Oct. 22, 1986, with provision that for such purposes any 
amendment by title I of Pub. L. 100-647 be treated as if it had been 
included in the provision of Pub. L. 99-514 to which such amendment 
relates, see section 1012(aa)(2), (4) of Pub. L. 100-647, set out as a 
note under section 861 of this title.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 43, 57, 59, 173, 193, 263A, 
291, 312, 475, 707, 1092, 1256, 1258 of this title.
