
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: 26USC613]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                     Subchapter I--Natural Resources
 
                           PART I--DEDUCTIONS
 
Sec. 613. Percentage depletion


(a) General rule

    In the case of the mines, wells, and other natural deposits listed 
in subsection (b), the allowance for depletion under section 611 shall 
be the percentage, specified in subsection (b), of the gross income from 
the property excluding from such gross income an amount equal to any 
rents or royalties paid or incurred by the taxpayer in respect of the 
property. Such allowance shall not exceed 50 percent (100 percent in the 
case of oil and gas properties) of the taxpayer's taxable income from 
the property (computed without allowance for depletion). For purposes of 
the preceding sentence, the allowable deductions taken into account with 
respect to expenses of mining in computing the taxable income from the 
property shall be decreased by an amount equal to so much of any gain 
which (1) is treated under section 1245 (relating to gain from 
disposition of certain depreciable property) as ordinary income, and (2) 
is properly allocable to the property. In no case shall the allowance 
for depletion under section 611 be less than it would be if computed 
without reference to this section.

(b) Percentage depletion rates

    The mines, wells, and other natural deposits, and the percentages, 
referred to in subsection (a) are as follows:

                           (1) 22 percent

        (A) sulphur and uranium; and
        (B) if from deposits in the United States--anorthosite, clay, 
    laterite, and nephelite syenite (to the extent that alumina and 
    aluminum compounds are extracted therefrom), asbestos, bauxite, 
    celestite, chromite, corundum, fluorspar, graphite, ilmenite, 
    kyanite, mica, olivine, quartz crystals (radio grade), rutile, block 
    steatite talc, and zircon, and ores of the following metals: 
    antimony, beryllium, bismuth, cadmium, cobalt, columbium, lead, 
    lithium, manganese, mercury, molybdenum, nickel, platinum and 
    platinum group metals, tantalum, thorium, tin, titanium, tungsten, 
    vanadium, and zinc.

                           (2) 15 percent

        If from deposits in the United States--
            (A) gold, silver, copper, and iron ore, and
            (B) oil shale (except shale described in paragraph (5)).

                           (3) 14 percent

        (A) metal mines (if paragraph (1)(B) or (2)(A) does not apply), 
    rock asphalt, and vermiculite; and
        (B) if paragraph (1)(B), (5), or (6)(B) does not apply, ball 
    clay, bentonite, china clay, sagger clay, and clay used or sold for 
    use for purposes dependent on its refractory properties.

                           (4) 10 percent

        Asbestos (if paragraph (1)(B) does not apply), brucite, coal, 
    lignite, perlite, sodium chloride, and wollastonite.

                         (5) 7\1/2\ percent

        Clay and shale used or sold for use in the manufacture of sewer 
    pipe or brick, and clay, shale, and slate used or sold for use as 
    sintered or burned lightweight aggregates.

                            (6) 5 percent

        (A) gravel, peat, pumice, sand, scoria, shale (except shale 
    described in paragraph (2)(B) or (5)), and stone (except stone 
    described in paragraph (7));
        (B) clay used, or sold for use, in the manufacture of drainage 
    and roofing tile, flower pots, and kindred products; and
        (C) if from brine wells--bromine, calcium chloride, and 
    magnesium chloride.

                           (7) 14 percent

        All other minerals, including, but not limited to, aplite, 
    barite, borax, calcium carbonates, diatomaceous earth, dolomite, 
    feldspar, fullers earth, garnet, gilsonite, granite, limestone, 
    magnesite, magnesium carbonates, marble, mollusk shells (including 
    clam shells and oyster shells), phosphate rock, potash, quartzite, 
    slate, soapstone, stone (used or sold for use by the mine owner or 
    operator as dimension stone or ornamental stone), thenardite, 
    tripoli, trona, and (if paragraph (1)(B) does not apply) bauxite, 
    flake graphite, fluorspar, lepidolite, mica, spodumene, and talc 
    (including pyrophyllite), except that, unless sold on bid in direct 
    competition with a bona fide bid to sell a mineral listed in 
    paragraph (3), the percentage shall be 5 percent for any such other 
    mineral (other than slate to which paragraph (5) applies) when used, 
    or sold for use, by the mine owner or operator as rip rap, ballast, 
    road material, rubble, concrete aggregates, or for similar purposes. 
    For purposes of this paragraph, the term ``all other minerals'' does 
    not include--
            (A) soil, sod, dirt, turf, water, or mosses;
            (B) minerals from sea water, the air, or similar 
        inexhaustible sources; or
            (C) oil and gas wells.

For the purposes of this subsection, minerals (other than sodium 
chloride) extracted from brines pumped from a saline perennial lake 
within the United States shall not be considered minerals from an 
inexhaustible source.

(c) Definition of gross income from property

    For purposes of this section--

                 (1) Gross income from the property

        The term ``gross income from the property'' means, in the case 
    of a property other than an oil or gas well and other than a 
    geothermal deposit, the gross income from mining.

                             (2) Mining

        The term ``mining'' includes not merely the extraction of the 
    ores or minerals from the ground but also the treatment processes 
    considered as mining described in paragraph (4) (and the treatment 
    processes necessary or incidental thereto), and so much of the 
    transportation of ores or minerals (whether or not by common 
    carrier) from the point of extraction from the ground to the plants 
    or mills in which such treatment processes are applied thereto as is 
    not in excess of 50 miles unless the Secretary finds that the 
    physical and other requirements are such that the ore or mineral 
    must be transported a greater distance to such plants or mills.

       (3) Extraction of the ores or minerals from the ground

        The term ``extraction of the ores or minerals from the ground'' 
    includes the extraction by mine owners or operators of ores or 
    minerals from the waste or residue of prior mining. The preceding 
    sentence shall not apply to any such extraction of the mineral or 
    ore by a purchaser of such waste or residue or of the rights to 
    extract ores or minerals therefrom.

            (4) Treatment processes considered as mining

        The following treatment processes where applied by the mine 
    owner or operator shall be considered as mining to the extent they 
    are applied to the ore or mineral in respect of which he is entitled 
    to a deduction for depletion under section 611:
            (A) In the case of coal--cleaning, breaking, sizing, dust 
        allaying, treating to prevent freezing, and loading for 
        shipment;
            (B) in the case of sulfur recovered by the Frasch process--
        cleaning, pumping to vats, cooling, breaking, and loading for 
        shipment;
            (C) in the case of iron ore, bauxite, ball and sagger clay, 
        rock asphalt, and ores or minerals which are customarily sold in 
        the form of a crude mineral product--sorting, concentrating, 
        sintering, and substantially equivalent processes to bring to 
        shipping grade and form, and loading for shipment;
            (D) in the case of lead, zinc, copper, gold, silver, 
        uranium, or fluorspar ores, potash, and ores or minerals which 
        are not customarily sold in the form of the crude mineral 
        product--crushing, grinding, and beneficiation by concentration 
        (gravity, flotation, amalgamation, electrostatic, or magnetic), 
        cyanidation, leaching, crystallization, precipitation (but not 
        including electrolytic deposition, roasting, thermal or electric 
        smelting, or refining), or by substantially equivalent processes 
        or combination of processes used in the separation or extraction 
        of the product or products from the ore or the mineral or 
        minerals from other material from the mine or other natural 
        deposit;
            (E) the pulverization of talc, the burning of magnesite, the 
        sintering and nodulizing of phosphate rock, the decarbonation of 
        trona, and the furnacing of quicksilver ores;
            (F) in the case of calcium carbonates and other minerals 
        when used in making cement--all processes (other than preheating 
        of the kiln feed) applied prior to the introduction of the kiln 
        feed into the kiln, but not including any subsequent process;
            (G) in the case of clay to which paragraph (5) or (6)(B) of 
        subsection (b) applies--crushing, grinding, and separating the 
        mineral from waste, but not including any subsequent process;
            (H) in the case of oil shale--extraction from the ground, 
        crushing, loading into the retort, and retorting, but not 
        hydrogenation, refining, or any other process subsequent to 
        retorting; and
            (I) any other treatment process provided for by regulations 
        prescribed by the Secretary which, with respect to the 
        particular ore or mineral, is not inconsistent with the 
        preceding provisions of this paragraph.

          (5) Treatment processes not considered as mining

        Unless such processes are otherwise provided for in paragraph 
    (4) (or are necessary or incidental to processes so provided for), 
    the following treatment processes shall not be considered as 
    ``mining'': electrolytic deposition, roasting, calcining, thermal or 
    electric smelting, refining, polishing, fine pulverization, blending 
    with other materials, treatment effecting a chemical change, thermal 
    action, and molding or shaping.

(d) Denial of percentage depletion in case of oil and gas wells

    Except as provided in section 613A, in the case of any oil or gas 
well, the allowance for depletion shall be computed without reference to 
this section.

(e) Percentage depletion for geothermal deposits

                           (1) In general

        In the case of geothermal deposits located in the United States 
    or in a possession of the United States, for purposes of subsection 
    (a)--
            (A) such deposits shall be treated as listed in subsection 
        (b), and
            (B) 15 percent shall be deemed to be the percentage 
        specified in subsection (b).

                   (2) Geothermal deposit defined

        For purposes of paragraph (1), the term ``geothermal deposit'' 
    means a geothermal reservoir consisting of natural heat which is 
    stored in rocks or in an aqueous liquid or vapor (whether or not 
    under pressure). Such a deposit shall in no case be treated as a gas 
    well for purposes of this section or section 613A, and this section 
    shall not apply to a geothermal deposit which is located outside the 
    United States or its possessions.

     (3) Percentage depletion not to include lease bonuses, etc.

        In the case of any geothermal deposit, the term ``gross income 
    from the property'' shall, for purposes of this section, not include 
    any amount described in section 613A(d)(5).

(Aug. 16, 1954, ch. 736, 68A Stat. 208; Pub. L. 85-866, title I, 
Sec. 36(a), Sept. 2, 1958, 72 Stat. 1633; Pub. L. 86-564, title III, 
Sec. 302(a), (b), June 30, 1960, 74 Stat. 291, 292; Pub. L. 87-834, 
Sec. 13(e), Oct. 16, 1962, 76 Stat. 1034; Pub. L. 88-571, Sec. 6(a), 
Sept. 2, 1964, 78 Stat. 860; Pub. L. 89-809, title II, Secs. 207(a), 
208(a), 209(a), (b), Nov. 13, 1966, 80 Stat. 1579, 1580; Pub. L. 91-172, 
title V, Secs. 501(a), 502(a), Dec. 30, 1969, 83 Stat. 629, 630; Pub. L. 
93-499, Sec. 2(a), Oct. 29, 1974, 88 Stat. 1550; Pub. L. 94-12, title V, 
Sec. 501(b)(1), (2), Mar. 29, 1975, 89 Stat. 53; Pub. L. 94-455, title 
XIX, Secs. 1901(b)(3)(K), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1793, 
1834; Pub. L. 95-618, title IV, Sec. 403(a)(1), (2)(A), Nov. 9, 1978, 92 
Stat. 3203; Pub. L. 99-514, title IV, Sec. 412(a)(2), Oct. 22, 1986, 100 
Stat. 2227; Pub. L. 101-508, title XI, Secs. 11522(a), 11815(b)(1), (2), 
Nov. 5, 1990, 104 Stat. 1388-486, 1388-557, 1388-558; Pub. L. 104-188, 
title I, Sec. 1704(t)(34), Aug. 20, 1996, 110 Stat. 1889.)


                               Amendments

    1996--Subsec. (e)(1)(B). Pub. L. 104-188 substituted ``subsection 
(b).'' for ``subsection (b),''.
    1990--Subsec. (a). Pub. L. 101-508, Sec. 11522(a), inserted ``(100 
percent in the case of oil and gas properties)'' after ``50 percent''.
    Subsec. (e)(1)(B). Pub. L. 101-508, Sec. 11815(b)(2), amended 
subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: 
``the applicable percentage (determined under the table contained in 
paragraph (2)) shall be deemed to be the percentage specified in 
subsection (b).''
    Subsec. (e)(2) to (4). Pub. L. 101-508, Sec. 11815(b)(1), 
redesignated pars. (3) and (4) as (2) and (3), respectively, and struck 
out former par. (2) which related to the applicable percentage depletion 
for geothermal deposits.
    1986--Subsec. (e)(4). Pub. L. 99-514 added par. (4).
    1978--Subsec. (c)(1). Pub. L. 95-618, Sec. 403(a)(2)(A), inserted 
``and other than a geothermal deposit'' after ``oil or gas well''.
    Subsec. (e). Pub. L. 95-618, Sec. 403(a)(1), added subsec. (e).
    1976--Subsec. (a). Pub. L. 94-455, Sec. 1901(b)(3)(K), substituted 
``ordinary income'' for ``gain from the sale or exchange of property 
which is neither a capital asset nor property described in section 
1231''.
    Subsec. (c)(2), (4)(I). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck 
out ``or his delegate'' after ``Secretary''.
    1975--Subsec. (b)(1). Pub. L. 94-12, Sec. 501(b)(2)(A), struck out 
subpar. (A) ``oil and gas wells'' and redesignated former subpars. (B) 
and (C) as (A) and (B), respectively.
    Subsec. (b)(3), (4). Pub. L. 94-12, Sec. 501(b)(2)(B), substituted 
``(1)(B)'' for ``(1)(C)'' wherever appearing.
    Subsec. (b)(7). Pub. L. 94-12, Sec. 501(b)(2) (B), (C), substituted 
``(1)(B)'' for ``(1)(C)'' in provisions preceding subpar. (A) and added 
subpar. (C).
    Subsec. (d). Pub. L. 94-12, Sec. 501(b)(1), substituted provisions 
denying the percentage depletion allowance in the case of oil and gas 
wells except as provided in section 613A for provisions governing the 
application of percentage depletion rates to certain taxable years 
ending in 1954.
    1974--Subsec. (c)(4)(E). Pub. L. 93-499 inserted reference to 
decarbonation of trona.
    1969--Subsec. (b). Pub. L. 91-172, Sec. 501(a), reduced the 
percentage depletion rate on oil and gas wells from 27\1/2\ percent to 
22 percent, reduced to 22 percent other minerals formerly receiving 
percentage depletion at a rate of 23 percent, added molybdenum in the 
category of minerals subject to the 22 percent depletion rate, reduced 
to 14 percent the rate on minerals formerly receiving depletion at a 15 
percent rate except in the case of domestic gold, silver, oil shale, 
copper, and iron ore, and inserted provision that for percentage 
depletion purposes, minerals other than sodium chloride, extracted from 
brine pumped from a saline perennial lake within the United States are 
not to be considered minerals from an inexhaustible source.
    Subsec. (c)(4)(H), (I). Pub. L. 91-172, Sec. 502(a), added subpar. 
(H) and redesignated former subpar. (H) as (I).
    1966--Subsec. (b)(2)(B). Pub. L. 89-809, Sec. 207(a)(1), inserted 
``clay, laterite, and nephelite syenite'' after ``anorthosite''.
    Subsec. (b)(3)(B). Pub. L. 89-809, Secs. 207(a)(2), 209(a)(2), 
substituted ``if neither paragraph (2)(B), (5), or (6)(B) applies'' for 
``if paragraph (5)(B) does not apply''.
    Subsec. (b)(5). Pub. L. 89-809, Sec. 209(a)(1), added par. (5). 
Former par. (5) redesignated (6).
    Subsec. (b)(6). Pub. L. 89-809, Secs. 208(a)(1), 209(a)(1), (3), 
(4), redesignated par. (5) as (6), struck out ``mollusk shells 
(including clam shells and oyster shells),'', substituted ``shale 
(except shale described in paragraph (5)), and stone (except stone 
described in paragraph (7))'' for ``shale, and stone, except stone 
described in paragraph (6)'' in subpar. (A), and struck out ``building 
or paving brick,'' and ``sewer pipe,'' in subpar. (B). Former par. (6) 
redesignated (7).
    Subsec. (b)(7). Pub. L. 89-809, Secs. 208(a)(2), 209(a)(1), (5), 
redesignated par. (6) as (7) and inserted ``mollusk shells (including 
clam shells and oyster shells),'' after ``marble,'' and ``(other than 
slate to which paragraph (5) applies)'' after ``any other such 
mineral''.
    Subsec. (c)(4)(G). Pub. L. 89-809, Sec. 209(b), substituted 
``paragraph (5) or (6)(B)'' for ``paragraph (5)(B)''.
    1964--Subsec. (b)(2)(B), (6). Pub. L. 88-571 inserted ``beryllium'' 
after ``antimony'' in par. (2)(B), and deleted ``beryl'' after 
``bauxite'' in pars. (2)(B) and (6).
    1962--Subsec. (a). Pub. L. 87-834 inserted provisions requiring the 
allowable deductions taken into account with respect to expenses of 
mining in computing the taxable income from the property to be decreased 
by an amount equal to so much of any gain which is treated under section 
1245 as gain from the sale or exchange of property which is neither a 
capital asset nor property described in section 1231, and is properly 
allocable to the property.
    1960--Subsec. (b)(3). Pub. L. 86-564, Sec. 302(a)(1), limited the 15 
percent allowance for ball clay, bentonite, china clay, and sagger clay 
to cases where paragraph (5)(B) does not apply, and authorized a 15 
percent allowance, if paragraph (5)(B) does not apply, for clay used or 
sold for use for purposes dependent on its refractory properties.
    Subsec. (b)(5). Pub. L. 86-564, Sec. 302(a)(2), substituted 
provisions authorizing a 5 percent allowance for clay used, or sold for 
use, in the manufacture of building or paving brick, drainage and 
roofing tile, sewer pipe, flower pots, and kindred products for 
provisions which authorized a 5 percent allowance for brick and tile 
clay.
    Subsec. (b)(6). Pub. L. 86-564, Sec. 302(a)(3), struck out 
provisions which authorized a 15 percent allowance for refractory and 
fire clay. See subsec. (b)(3) of this section.
    Subsec. (c)(2). Pub. L. 86-564, Sec. 302(b)(1), substituted ``the 
treatment processes considered as mining described in paragraph (4) (and 
the treatment processes necessary or incidental thereto)'' for ``the 
ordinary treatment processes normally applied by mine owners or 
operators in order to obtain the commercially marketable mineral product 
or products'', and ``such treatment processes'' for ``the ordinary 
treatment processes''.
    Subsec. (c)(4). Pub. L. 86-564, Sec. 302(b)(2), substituted ``The 
following treatment processes where applied by the mine owner or 
operator shall be considered as mining to the extent they are applied to 
the ore or mineral in respect of which he is entitled to a deduction for 
depletion under section 611'' for ``The term `ordinary treatment 
processes' includes the following'' in opening provisions, included 
cleaning in subpar. (B), substituted ``ores or minerals which'' for 
``minerals which'' and included substantially equivalent processes in 
subpar. (C), included uranium and minerals which are not customarily 
sold in the form of the crude mineral product and substituted ``from the 
ore or the mineral or minerals from other material from the mine or 
other natural deposit'' for ``from the ore, including the furnacing of 
quicksilver ores'' in subpar. (D), included the furnacing of quicksilver 
ores in subpar. (E), and added subpars. (F) to (H).
    Subsec. (c)(5). Pub. L. 86-564, Sec. 302(b)(2), added par. (5).
    1958--Subsec. (d). Pub. L. 85-866 added subsec. (d).


                    Effective Date of 1990 Amendment

    Section 11522(c) of Pub. L. 101-508 provided that: ``The amendments 
made by this section [amending this section and sections 613A and 614 of 
this title] shall apply to taxable years beginning after December 31, 
1990.''


                    Effective Date of 1986 Amendment

    Section 412(a)(3) of Pub. L. 99-514 provided that: ``The amendment 
made by this subsection [amending this section and section 613A of this 
title] shall apply to amounts received or accrued after August 16, 1986, 
in taxable years ending after such date.''


                    Effective Date of 1978 Amendment

    Section 403(c) of Pub. L. 95-618 provided that: ``The amendments 
made by this section [amending this section and sections 613A and 614 of 
this title] shall take effect on October 1, 1978, and shall apply to 
taxable years ending on or after such date.''


                    Effective Date of 1976 Amendment

    Amendment by section 1901(b)(3)(K) 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.


                    Effective Date of 1975 Amendment

    Amendment by Pub. L. 94-12 effective Jan. 1, 1975, applicable to 
taxable years ending after Dec. 31, 1974, see section 501(c) of Pub. L. 
94-12, set out as an Effective Note under section 613A of this title.


                    Effective Date of 1974 Amendment

    Section 2(b) of Pub. L. 93-499 provided that: ``The amendment made 
by this section [amending this section] shall apply to taxable years 
beginning after December 31, 1970.''


                    Effective Date of 1969 Amendment

    Section 501(b) of Pub. L. 91-172 provided that: ``The amendment made 
by subsection (a) [amending this section] shall apply to taxable years 
beginning after October 9, 1969.''
    Section 502(b) of Pub. L. 91-172 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after the date of the enactment of this Act [Dec. 30, 
1969].''


                    Effective Date of 1966 Amendment

    Section 207(b) of Pub. L. 89-809 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after the date of the enactment of this Act [Nov. 13, 
1966].''
    Section 208(b) of Pub. L. 89-809 provided that: ``The amendments 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after the date of the enactment of this Act [Nov. 13, 
1966].''
    Section 209(c) of Pub. L. 89-809 provided that: ``The amendments 
made by subsections (a) and (b) [amending this section] shall apply to 
taxable years beginning after the date of the enactment of this Act 
[Nov. 13, 1966].''


                    Effective Date of 1964 Amendment

    Section 6(b) of Pub. L. 88-571 provided that: ``The amendments made 
by subsection (a) [amending this section] shall apply to taxable years 
beginning after December 31, 1963.''


                    Effective Date of 1962 Amendment

    Amendment by Pub. L. 87-834 applicable to taxable years beginning 
after Dec. 31, 1962, see section 13(g) of Pub. L. 87-834, set out as an 
Effective Date note under section 1245 of this title.


                    Effective Date of 1960 Amendment

    Section 302(c) of Pub. L. 86-564, as amended by Pub. L. 86-781, 
Sec. 4, Sept. 14, 1960, 74 Stat. 1018; Pub. L. 99-514, Sec. 2, Oct. 22, 
1986, 100 Stat. 2095, provided that:
    ``(c) Effective Date.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    amendments made by subsections (a) and (b) [amending this section] 
    shall be applicable only with respect to taxable years beginning 
    after December 31, 1960.
        ``(2) Calcium carbonates, etc.--
            ``(A) Election for past years.--In the case of calcium 
        carbonates or other minerals when used in making cement, if an 
        election is made by the taxpayer under subparagraph (C)--
                ``(i) the amendments made by subsection (b) [amending 
            this section] shall apply to taxable years with respect to 
            which such election is effective and
                ``(ii) provisions having the same effect as the 
            amendments made by subsection (b) [amending this section] 
            shall be deemed to be included in the Internal Revenue Code 
            of 1939 and shall apply to taxable years with respect to 
            which such election is effective in lieu of the 
            corresponding provisions of such Code.
            ``(B) Years to which applicable.--An election made under 
        subparagraph (C) to have the provisions of this paragraph apply 
        shall be effective for all taxable years beginning before 
        January 1, 1961, in respect of which--
                ``(i) the assessment of a deficiency,
                ``(ii) the refund or credit of an overpayment, or
                ``(iii) the commencement of a suit for recovery of a 
            refund under section 7405 of the Internal Revenue Code of 
            1986 [formerly I.R.C. 1954] [section 7405 of this title],
    is not prevented on the date of the enactment of this paragraph 
        [Sept. 14, 1960] by the operation of any law or rule of law. 
        Such election shall also be effective for any taxable year 
        beginning before January 1, 1961, in respect of which an 
        assessment of a deficiency has been made but not collected on or 
        before the date of the enactment of this paragraph.
            ``(C) Time and manner of election.--An election to have the 
        provisions of this paragraph apply shall be made by the taxpayer 
        on or before the 60th day after the date of publication in the 
        Federal Register of final regulations issued under authority of 
        subparagraph (F), and shall be made in such form and manner as 
        the Secretary of the Treasury or his delegate shall prescribe by 
        regulations. Such election, if made, may not be revoked.
            ``(D) Statutes of limitation.--Notwithstanding any other 
        law, the period within which an assessment of a deficiency 
        attributable to the application of the amendments made by 
        subsection (b) [amending this section] may be made with respect 
        to any taxable year to which such amendments apply under an 
        election made under subparagraph (C), and the period within 
        which a claim for refund or credit of an overpayment 
        attributable to the application of such amendments may be made 
        with respect to any such taxable year, shall not expire prior to 
        one year after the last day for making an election under 
        subparagraph (C). An election by a taxpayer under subparagraph 
        (C) shall be considered as a consent to the application of the 
        provisions of this subparagraph.
            ``(E) Terms; applicability of other laws.--Except where 
        otherwise distinctly expressed or manifestly intended, terms 
        used in this paragraph shall have the same meaning as when used 
        in the Internal Revenue Code of 1986 [this title] (or 
        corresponding provisions of the Internal Revenue Code of 1939) 
        and all provisions of law shall apply with respect to this 
        paragraph as if this paragraph were a part of such Code (or 
        corresponding provisions of the Internal Revenue Code of 1939).
            ``(F) Regulations.--The Secretary of the Treasury or his 
        delegate shall prescribe such regulations as may be necessary to 
        carry out the provisions of this paragraph.''


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-866 applicable to taxable years beginning 
after Dec. 31, 1953, and ending after Aug. 16, 1954, see section 1(c)(1) 
of Pub. L. 85-866, set out as a note under section 165 of this title.


                            Savings Provision

    For provisions that nothing in amendment by section 11815(b)(1), (2) 
of 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.


    Election for Clay and Shale Used in Manufacture of Clay Products

    Pub. L. 87-312, Sept. 26, 1961, 75 Stat. 674, provided for the 
election of, and procedure for, a differing rate of depletion for clay 
and shale used in the manufacture of clay products, such election to be 
effective for all taxable years beginning before Jan. 1, 1961, in 
respect of which the assessment of a deficiency, a refund or credit of 
overpayment, or the commencement of a suit for recovery is not prevented 
on Sept. 26, 1961, by operation of any law or rule of law, and also 
effective for any taxable year beginning before Jan. 1961, in respect of 
which an assessment of a deficiency has been made but not collected on 
or before Sept. 26, 1961.


    Election for Quartzite and Clay Used in Production of Refractory 
                                Products

    Pub. L. 87-321, Sec. 2, Sept. 26, 1961, 75 Stat. 683, provided for 
an election of, and procedures for, a differing rate of depletion for 
quartzite and clay used in production of refractory products, such 
election to be effective on and after Jan. 1, 1951, for all taxable 
years beginning before Jan. 1, 1961, in respect of which the assessment 
of a deficiency, the refund or credit of an overpayment, or the 
commencement of a suit for recovery is not prevented on Sept. 26, 1961, 
by the operation of any law or rule of law, and also effective on and 
after Jan. 1, 1951, for any taxable year beginning before Jan. 1, 1961, 
in respect of which an assessment of a deficiency has been made but not 
collected on or before Sept. 26, 1961.


         Refund or Credit of Overpayments; Limitations; Interest

    Section 36(b) of Pub. L. 85-866 provided for the filing of a claim 
within 6 months of Sept. 2, 1958, and for the refund or credit of any 
overpayment, without interest, if such refund or credit, resulting from 
the addition of subsec. (d) of this section, was prevented on Sept. 2, 
1958, or within 6 months thereof, by the operation of any law or rule of 
law other than certain specified sections of the Internal Revenue Codes 
of 1939 and 1954.

                  Section Referred to in Other Sections

    This section is referred to in sections 48, 57, 263, 291, 381, 465, 
611, 613A, 614, 616, 617, 631, 636, 901, 903, 1082, 1202, 1446, 4612, 
4940, 7704 of this title.
