72 S T A T. ]
PUBLIC LAW 8 5 - 8 6 6 - S E P T. 2, 1958
SEC. 36. PERCENTAGE DEPLETION RATES FOR CERTAIN TAXABLE YEARS ENDING IN 1954. (a) APPLICABLE RATES.—Section 613 (relating to percentage depletion) is amended by adding at the end thereof the following new subsection:
1633
26 USC su.
" (d) APPLICATION OF PERCENTAGE DEPLETION RATES TO CERTAIN TAXABLE YEARS ENDING IN 1954.—
" (1) GENERAL RULE.—At the election of the taxpayer in respect of any property (within the meaning of the Internal Revenue Code of 1939), the percentage specified in subsection (b) in the case of any mine, well, or other natural deposit listed in such subsection shall apply to a taxable year ending after December 31, 1953, to which the Internal Revenue Code of 1939 applies. "(2) METHOD OF COMPUTATION.—The allowance for depletion, in respect of any property for which an election is made under paragraph (1) for any taxable year, shall be an amount equal to the sum of— " (A) that portion of a tentative allowance, computed under the Internal Revenue Code of 1939 without regard to paragraph (1) of this subsection, which the number of days in such taxable year before January 1, 1954, bears to the total number of days in such taxable year; plus " (B) that portion of a tentative allowance, computed under the Internal Revenue Code of 1939 (as modified solely by the application of paragraph (1) of this subsection), which the number of days in such taxable year after December 31, 1953, bears to the total number of days in such taxable year." (b) STATUTE OF LIMITATIONS, ETC.; INTEREST.—If refund or credit of any overpayment resulting from the application of the amendment made by subsection (a) of tms section is prevented on the date of the enactment of this Act, or within 6 months from such date, by the operation of any law or rule of law (other than section 3760 of the Internal Revenue Code of 1939 or section 7121 of the Internal Revenue Code of 1954, relating to closing agreements, and other than section 3761 of the Internal Revenue Code of 1939 or section 7122 of the Internal Revenue Code of 1954, relating to compromises), refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor is filed within 6 months from such date. No interest shall be paid on any overpayment resulting from the application of the amendment made by subsection (a) of this section. SEC. 37. DEFINITION OF PROPERTY FOR PURPOSES OF THE DEPLETION ALLOWANCE. (a)
1954
26 USC 7121. 26 USC 7122.
RULE FOR AGGREGATION OF SEPARATE MINERAL INTER-
ESTS.—Section 614(b) (relating to special rule as to operating mineral interests) is amended by adding at the end thereof the following new paragraph: " (4) TERMINATION WITH RESPECT TO MINES.—Except in the case of oil and gas wells— " (A) an election made under the provisions of this subsection shall not apply with respect to any taxable year beginning after December 31, 1957, and " (B) if a taxpayer makes an election under the provisions of subsection (c)(3)(B) for any operating mineral interest which constitutes part or all of an operating unit, an election made under the provisions of this subsection shall not apply with respect to any operating mineral interest which constitutes part or all of such operating unit for any taxable year for which the election under subsection (c)(3)(B) i s effective."
26 USC eu.
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