26 U.S.C. § 613 — Percentage depletion

Page 1794 TITLE 26—INTERNAL REVENUE CODE § 612 Editorial Notes AMENDMENTS 1976—Subsec. (a). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1958—Subsec. (d)(4). Pub. L. 85–866 substituted ‘‘devi- sees’’ for ‘‘devises’’. Statutory Notes and Related Subsidiaries 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. § 612. Basis for cost depletion Except as otherwise provided in this sub- chapter, the basis on which depletion is to be al- lowed in respect of any property shall be the ad- justed basis provided in section 1011 for the pur- pose of determining the gain upon the sale or other disposition of such property. (Aug. 16, 1954, ch. 736, 68A Stat. 208.) § 613. Percentage depletion (a) General rule In the case of the mines, wells, and other nat- ural deposits listed in subsection (b), the allow- ance 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 al- lowance for depletion and without any deduc- tion under section 199A). 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 disposi- tion of certain depreciable property) as ordinary income, and (2) is properly allocable to the prop- erty. In no case shall the allowance for depletion under section 611 be less than it would be if com- puted 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 sye- nite (to the extent that alumina and alu- minum compounds are extracted therefrom), asbestos, bauxite, celestite, chromite, corun- dum, fluorspar, graphite, ilmenite, kyanite, mica, olivine, quartz crystals (radio grade), ru- tile, 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) 71⁄2 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 para- graph (7)); (B) clay used, or sold for use, in the manu- facture 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 lim- ited to, aplite, barite, borax, calcium carbon- ates, diatomaceous earth, dolomite, feldspar, fullers earth, garnet, gilsonite, granite, lime- stone, 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 di- mension 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, un- less sold on bid in direct competition with a bona fide bid to sell a mineral listed in para- graph (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 pur- poses 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. Page 1795 TITLE 26—INTERNAL REVENUE CODE § 613 (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 de- posit, 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 con- sidered as mining described in paragraph (4) (and the treatment processes necessary or in- cidental thereto), and so much of the transpor- tation 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 dis- tance 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 pur- chaser 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 ap- plied 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 deple- tion 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 custom- arily sold in the form of the crude mineral product—crushing, grinding, and beneficiation by concentration (gravity, flo- tation, amalgamation, electrostatic, or mag- netic), cyanidation, leaching, crystalliza- tion, precipitation (but not including elec- trolytic deposition, roasting, thermal or electric smelting, or refining), or by sub- stantially equivalent processes or combina- tion 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 nat- ural 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 ce- ment—all processes (other than preheating of the kiln feed) applied prior to the intro- duction 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—crush- ing, grinding, and separating the mineral from waste, but not including any subse- quent process; (H) in the case of oil shale—extraction from the ground, crushing, loading into the retort, and retorting (including in situ re- torting), but not hydrogenation, refining, or any other process subsequent to retorting; and (I) any other treatment process provided for by regulations prescribed by the Sec- retary 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 min- ing Unless such processes are otherwise provided for in paragraph (4) (or are necessary or inci- dental to processes so provided for), the fol- lowing treatment processes shall not be con- sidered as ‘‘mining’’: electrolytic deposition, roasting, calcining, thermal or electric smelt- ing, refining, polishing, fine pulverization, blending with other materials, treatment ef- fecting 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 deple- tion 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 res- ervoir 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 geo- thermal 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, Page 1796 TITLE 26—INTERNAL REVENUE CODE § 613 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, § 36(a), Sept. 2, 1958, 72 Stat. 1633; Pub. L. 86–564, title III, § 302(a), (b), June 30, 1960, 74 Stat. 291, 292; Pub. L. 87–834, § 13(e), Oct. 16, 1962, 76 Stat. 1034; Pub. L. 88–571, § 6(a), Sept. 2, 1964, 78 Stat. 860; Pub. L. 89–809, title II, §§ 207(a), 208(a), 209(a), (b), Nov. 13, 1966, 80 Stat. 1579, 1580; Pub. L. 91–172, title V, §§ 501(a), 502(a), Dec. 30, 1969, 83 Stat. 629, 630; Pub. L. 93–499, § 2(a), Oct. 29, 1974, 88 Stat. 1550; Pub. L. 94–12, title V, § 501(b)(1), (2), Mar. 29, 1975, 89 Stat. 53; Pub. L. 94–455, title XIX, §§ 1901(b)(3)(K), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1793, 1834; Pub. L. 95–618, title IV, § 403(a)(1), (2)(A), Nov. 9, 1978, 92 Stat. 3203; Pub. L. 99–514, title IV, § 412(a)(2), Oct. 22, 1986, 100 Stat. 2227; Pub. L. 101–508, title XI, §§ 11522(a), 11815(b)(1), (2), Nov. 5, 1990, 104 Stat. 1388–486, 1388–557, 1388–558; Pub. L. 104–188, title I, § 1704(t)(34), Aug. 20, 1996, 110 Stat. 1889; Pub. L. 108–357, title I, § 102(d)(6), Oct. 22, 2004, 118 Stat. 1429; Pub. L. 109–135, title IV, § 412(gg), Dec. 21, 2005, 119 Stat. 2639; Pub. L. 115–97, title I, §§ 11011(d)(3), 13305(b)(4), Dec. 22, 2017, 131 Stat. 2071, 2126; Pub. L. 115–141, div. T, § 101(a)(2)(D), Mar. 23, 2018, 132 Stat. 1155.) Editorial Notes AMENDMENTS 2018—Subsec. (a). Pub. L. 115–141 substituted ‘‘any de- duction under section 199A’’ for ‘‘the deduction under section 199A’’. 2017—Subsec. (a). Pub. L. 115–97, § 13305(b)(4), struck out ‘‘and without the deduction under section 199’’ after ‘‘without allowance for depletion’’. Pub. L. 115–97, § 11011(d)(3), inserted ‘‘and without the deduction under section 199A’’ after ‘‘without the de- duction under section 199’’. 2005—Subsec. (c)(4)(H). Pub. L. 109–135 inserted ‘‘(in- cluding in situ retorting)’’ after ‘‘and retorting’’. 2004—Subsec. (a). Pub. L. 108–357, which directed the insertion of ‘‘and without the deduction under section 199’’ after ‘‘without allowances for depletion’’, was exe- cuted by making the insertion after ‘‘without allow- ance for depletion’’, to reflect the probable intent of Congress. 1996—Subsec. (e)(1)(B). Pub. L. 104–188 substituted ‘‘subsection (b).’’ for ‘‘subsection (b),’’. 1990—Subsec. (a). Pub. L. 101–508, § 11522(a), inserted ‘‘(100 percent in the case of oil and gas properties)’’ after ‘‘50 percent’’. Subsec. (e)(1)(B). Pub. L. 101–508, § 11815(b)(2), amend- ed subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: ‘‘the applicable percentage (deter- mined 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, § 11815(b)(1), re- designated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to the ap- plicable percentage depletion for geothermal deposits. 1986—Subsec. (e)(4). Pub. L. 99–514 added par. (4). 1978—Subsec. (c)(1). Pub. L. 95–618, § 403(a)(2)(A), in- serted ‘‘and other than a geothermal deposit’’ after ‘‘oil or gas well’’. Subsec. (e). Pub. L. 95–618, § 403(a)(1), added subsec. (e). 1976—Subsec. (a). Pub. L. 94–455, § 1901(b)(3)(K), sub- stituted ‘‘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, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1975—Subsec. (b)(1). Pub. L. 94–12, § 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, § 501(b)(2)(B), sub- stituted ‘‘(1)(B)’’ for ‘‘(1)(C)’’ wherever appearing. Subsec. (b)(7). Pub. L. 94–12, § 501(b)(2) (B), (C), sub- stituted ‘‘(1)(B)’’ for ‘‘(1)(C)’’ in provisions preceding subpar. (A) and added subpar. (C). Subsec. (d). Pub. L. 94–12, § 501(b)(1), substituted pro- visions denying the percentage depletion allowance in the case of oil and gas wells except as provided in sec- tion 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 ref- erence to decarbonation of trona. 1969—Subsec. (b). Pub. L. 91–172, § 501(a), reduced the percentage depletion rate on oil and gas wells from 271⁄2 percent to 22 percent, reduced to 22 percent other min- erals formerly receiving percentage depletion at a rate of 23 percent, added molybdenum in the category of minerals subject to the 22 percent depletion rate, re- duced to 14 percent the rate on minerals formerly re- ceiving 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, ex- tracted from brine pumped from a saline perennial lake within the United States are not to be considered min- erals from an inexhaustible source. Subsec. (c)(4)(H), (I). Pub. L. 91–172, § 502(a), added subpar. (H) and redesignated former subpar. (H) as (I). 1966—Subsec. (b)(2)(B). Pub. L. 89–809, § 207(a)(1), in- serted ‘‘clay, laterite, and nephelite syenite’’ after ‘‘anorthosite’’. Subsec. (b)(3)(B). Pub. L. 89–809, §§ 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, § 209(a)(1), added par. (5). Former par. (5) redesignated (6). Subsec. (b)(6). Pub. L. 89–809, §§ 208(a)(1), 209(a)(1), (3), (4), redesignated par. (5) as (6), struck out ‘‘mollusk shells (including clam shells and oyster shells),’’, sub- stituted ‘‘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, §§ 208(a)(2), 209(a)(1), (5), redesignated par. (6) as (7) and inserted ‘‘mollusk shells (including clam shells and oyster shells),’’ after ‘‘mar- ble,’’ and ‘‘(other than slate to which paragraph (5) ap- plies)’’ after ‘‘any other such mineral’’. Subsec. (c)(4)(G). Pub. L. 89–809, § 209(b), substituted ‘‘paragraph (5) or (6)(B)’’ for ‘‘paragraph (5)(B)’’. 1964—Subsec. (b)(2)(B), (6). Pub. L. 88–571 inserted ‘‘be- ryllium’’ 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, § 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 prop- erties. Subsec. (b)(5). Pub. L. 86–564, § 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. Page 1797 TITLE 26—INTERNAL REVENUE CODE § 613 Subsec. (b)(6). Pub. L. 86–564, § 302(a)(3), struck out provisions which authorized a 15 percent allowance for refractory and fire clay. See subsec. (b)(3) of this sec- tion. Subsec. (c)(2). Pub. L. 86–564, § 302(b)(1), substituted ‘‘the treatment processes considered as mining de- scribed 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 mar- ketable mineral product or products’’, and ‘‘such treat- ment processes’’ for ‘‘the ordinary treatment proc- esses’’. Subsec. (c)(4). Pub. L. 86–564, § 302(b)(2), substituted ‘‘The following treatment processes where applied by the mine owner or operator shall be considered as min- ing to the extent they are applied to the ore or mineral in respect of which he is entitled to a deduction for de- pletion 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 in- cluded substantially equivalent processes in subpar. (C), included uranium and minerals which are not cus- tomarily sold in the form of the crude mineral product and substituted ‘‘from the ore or the mineral or min- erals from other material from the mine or other nat- ural 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, § 302(b)(2), added par. (5). 1958—Subsec. (d). Pub. L. 85–866 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–141 effective as if included in section 11011 of Pub. L. 115–97, see section 101(d)(1) of Pub. L. 115–141, set out as a note under section 62 of this title. EFFECTIVE DATE OF 2017 AMENDMENT Amendment by section 11011(d)(3) of Pub. L. 115–97 ap- plicable to taxable years beginning after Dec. 31, 2017, see section 11011(e) of Pub. L. 115–97, set out as a note under section 62 of this title. Amendment by section 13305(b)(4) of Pub. L. 115–97 ap- plicable to taxable years beginning after Dec. 31, 2017, except as provided by transition rule, see section 13305(c) of Pub. L. 115–97, set out as a note under section 74 of this title. EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–357 applicable to taxable years beginning after Dec. 31, 2004, see section 102(e) of Pub. L. 108–357, set out as a note under section 56 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–508, title XI, § 11522(c), Nov. 5, 1990, 104 Stat. 1388–486, 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 Pub. L. 99–514, title IV, § 412(a)(3), Oct. 22, 1986, 100 Stat. 2227, 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 Pub. L. 95–618, title IV, § 403(c), Nov. 9, 1978, 92 Stat. 3204, 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, ap- plicable 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 Pub. L. 93–499, § 2(b), Oct. 29, 1974, 88 Stat. 1550, pro- vided that: ‘‘The amendment made by this section [amending this section] shall apply to taxable years be- ginning after December 31, 1970.’’ EFFECTIVE DATE OF 1969 AMENDMENT Pub. L. 91–172, title V, § 501(b), Dec. 30, 1969, 83 Stat. 630, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply to tax- able years beginning after October 9, 1969.’’ Pub. L. 91–172, title V, § 502(b), Dec. 30, 1969, 83 Stat. 630, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply to tax- able years beginning after the date of the enactment of this Act [Dec. 30, 1969].’’ EFFECTIVE DATE OF 1966 AMENDMENT Pub. L. 89–809, title II, § 207(b), Nov. 13, 1966, 80 Stat. 1579, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply to tax- able years beginning after the date of the enactment of this Act [Nov. 13, 1966].’’ Pub. L. 89–809, title II, § 208(b), Nov. 13, 1966, 80 Stat. 1579, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply to tax- able years beginning after the date of the enactment of this Act [Nov. 13, 1966].’’ Pub. L. 89–809, title II, § 209(c), Nov. 13, 1966, 80 Stat. 1580, provided that: ‘‘The amendments made by sub- sections (a) and (b) [amending this section] shall apply to taxable years beginning after the date of the enact- ment of this Act [Nov. 13, 1966].’’ EFFECTIVE DATE OF 1964 AMENDMENT Pub. L. 88–571, § 6(b), Sept. 2, 1964, 78 Stat. 860, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall apply to taxable years be- ginning 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 Pub. L. 86–564, title III, § 302(c), June 30, 1960, 74 Stat. 293, as amended by Pub. L. 86–781, § 4, Sept. 14, 1960, 74 Stat. 1018; Pub. L. 99–514, § 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 tax- payer under subparagraph (C)— Page 1798 TITLE 26—INTERNAL REVENUE CODE § 613A ‘‘(i) the amendments made by subsection (b) [amending this section] shall apply to taxable years with respect to which such election is effec- tive 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 Rev- enue 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 Jan- uary 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 sub- paragraph (F), and shall be made in such form and manner as the Secretary of the Treasury or his del- egate 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 assess- ment of a deficiency attributable to the application of the amendments made by subsection (b) [amend- ing 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.—Ex- cept where otherwise distinctly expressed or mani- festly intended, terms used in this paragraph shall have the same meaning as when used in the Inter- nal Revenue Code of 1986 [this title] (or cor- responding 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 Treas- ury 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 45K 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 de- pletion for clay and shale used in the manufacture of clay products, such election to be effective for all tax- able 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 re- covery is not prevented on Sept. 26, 1961, by operation of any law or rule of law, and also effective for any tax- able 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, § 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 pre- vented 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 re- spect 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 Pub. L. 85–866, title I, § 36(b), Sept. 2, 1958, 72 Stat. 1633, provided for the filing of a claim within 6 months of Sept. 2, 1958, and for the refund or credit of any over- payment, without interest, if such refund or credit, re- sulting 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. § 613A. Limitations on percentage depletion in case of oil and gas wells (a) General rule Except as otherwise provided in this section, the allowance for depletion under section 611 with respect to any oil or gas well shall be com- puted without regard to section 613. (b) Exemption for certain domestic gas wells (1) In general The allowance for depletion under section 611 shall be computed in accordance with sec- tion 613 with respect to— (A) regulated natural gas, and (B) natural gas sold under a fixed contract, and 22 percent shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section. (2) Natural gas from geopressured brine The allowance for depletion under section 611 shall be computed in accordance with sec- tion 613 with respect to any qualified natural gas from geopressured brine, and 10 percent shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of such section.