632
PUBLIC LAW 91-172-DEC. 30, 1969
68A Stat. 211; 80 Stat 76 S
26 USC 615.
'^*Hd ^atf 6c 80 Stat. 759.
67 Stat. 462.
[83 STAT
SEC. 504. EXPLORATION EXPENDITURES. (a) AMENDMENTS TO SECTION 615.—Section 615 (relating to PTi^u •
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ration expenditures) IS amended— (1) by striking out the heading and inserting in lieu thereof"SEC. 615. PRE-1970 EXPLORATION EXPENDITURES."; and (2) by adding at the end thereof the following new subsection•'(h) TERMINATION.—The provisions of this section shall not apply with respect to expenditures paid or incurred after December 3i 1969." ^\)^ AMENDMENTS TO SECTION 617.—Section 617 (relating to additional exploration expenditures in the case of domestic mining) ig amended— (1) by striking out the heading and inserting in lieu thereof: "SEC. 617. DEDUCTION AND RECAPTURE OF CERTAIN MINING EXPLORATION EXPENDITURES."; (2) by striking out in subsection (a)(1) "in the United States or on the Outer Continental Shelf (within the meaning of section 2 of the Outer Continental Shelf Lands Act, as amended and supplcmeutcd; 43 U.S.C. 1331)"; and (3) by striking out subsection (h) and inserting the following in lieu thereof: " (h) LIMITATION.-—
53 Stat. 40.
Post,
p. 633.
r'^^,
^^68A Stat. 104-
"(1) IN GENERAL.—Subsection (a) shall apply to any amount paid or incurred after December 31, 1969, with respect to any deposit of ore or other mineral located outside the United States, only to the extent that such amount, when added to the amounts which are or have been deducted under subsection (a) and section 615 (a) and the amounts which are or have been treated as deferred expenses under section 615(b), or the corresponding provisions of prior law, does not exceed $400,000. "(2) AMOUNTS TAKEN INTO ACCOUNT.—For purposes of paragraph (1), there shall be taken into account amounts deducted and amounts treated as deferred expenses by— " (A) the taxpayer, and " (B) any individual or corporation who has transferred to the taxpayer any mineral property. "(3) APPLICATION OF PARAGRAPH (2)(B). — Paragraph (2)(B) shall apply with respect to all amounts deducted and all amounts treated as deferred expenses which were paid or incurred before the latest such transfer from the individual or corporation to the taxpayer. Paragraph (2)(B) shall apply only if— " (A) the taxpayer acquired any mineral property from the individual or corporation under circumstances which make paragraph (7), (8), (11), (15), (17), (20), or (22) of section 113(a) of the Internal Revenue Code of 1939 apply ' to such transfer; " (B) the taxpayer would be entitled under section 381(c) ' (10) to deduct expenses deferred under section 615(b) had the ' distributor or transferor corporation elected to defer such w ' expenses; or " (C) the taxpayer acquired any mineral property from ' the individual or corporation under circumstances which make section 334(b), 362 (a) and (b), 372(a), 373(b) (Ijj 1051, OT 1082 apply to such transfer." .^..
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