PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 533 SEC. 197. AMORTIZATION OF GOODWILL AND CERTAIN OTHER INTANGIBLES. "(a) GENERAL RULE. —^A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible. The amount of such deduction shall be determined by amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 15-year period beginning with the month in which such intangible was acquired. "(b) No OTHER DEPRECIATION OR AMORTIZATION DEDUCTION ALLOWABLE.— Except as provided in subsection (a), no depreciation or amortization deduction shall be allowable with respect to any amortizable section 197 intangible. "(c) AMORTIZABLE SECTION 197 INTANGIBLE. —For purposes of this section— "(1) IN GENERAL. —Except as otherwise provided in this section, the term 'amortizable section 197 intangible' means any section 197 intangible— "(A) which is acquired by the taxpayer after the date of the enactment of this section, and "(B) which is held in connection with the conduct of a trade or business or an activity described in section 212. "(2) EXCLUSION OF SELF-CREATED INTANGIBLES, ETC.— The term 'amortizable section 197 intangible' shall not include any section 197 intangible— "(A) which is not described in subparagraph (D), (E), or (F) of subsection (d)( 1), and "(B) which is created by the taxpayer. This paragraph shall not apply if the intangible is created in connection with a transaction (or series of related transactions) involving the acquisition of assets constituting a trade or business or substantial portion thereof. "(3) ANTI-CHURNING RULES.— Tor exclusion of intangibles acquired in certain transactions, see subsection (f)(9).
- (d) SECTION 197 INTANGIBLE.—For purposes of this sectioned) IN GENERAL.—Except as otherwise provided in this
section, the term 'section 197 intangible' means— "(A) goodwill, "(B) going concern value,
- \C) any of the following intangible items:
"(i) workforce in place including its composition and terms and conditions (contractual or otherwise) of its employment, "(ii) business books and records, operating systems, or any other information base (inclumng lists or other information with respect to current or prospective customers), "(iii) any patent, copjrright, formula, process, design, pattern, knowhow, format, or other similar item, "(iv) any customer-based intangible, "(v) any supplier-based intangible, and "(vi) any other similar item, "(D) any license, permit, or other ri^ht granted by a governmental unit or an agency or instrumentality thereof.
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