26 U.S.C. § 193 : US Code - Section 193: Tertiary injectants

Search 26 U.S.C. § 193 : US Code - Section 193: Tertiary injectants

(a) Allowance of deduction
There shall be allowed as a deduction for the taxable year an
amount equal to the qualified tertiary injectant expenses of the
taxpayer for tertiary injectants injected during such taxable year.
(b) Qualified tertiary injectant expenses
For purposes of this section -
(1) In general
The term "qualified tertiary injectant expenses" means any cost
paid or incurred (whether or not chargeable to capital account)
for any tertiary injectant (other than a hydrocarbon injectant
which is recoverable) which is used as a part of a tertiary
recovery method.
(2) Hydrocarbon injectant
The term "hydrocarbon injectant" includes natural gas, crude
oil, and any other injectant which is comprised of more than an
insignificant amount of natural gas or crude oil. The term does
not include any tertiary injectant which is hydrocarbon-based, or
a hydrocarbon-derivative, and which is comprised of no more than
an insignificant amount of natural gas or crude oil. For purposes
of this paragraph, that portion of a hydrocarbon injectant which
is not a hydrocarbon shall not be treated as a hydrocarbon
injectant.
(3) Tertiary recovery method
The term "tertiary recovery method" means -
(A) any method which is described in subparagraphs (1)
through (9) of section 212.78(c) of the June 1979 energy
regulations (as defined by section 4996(b)(8)(C) as in effect
before its repeal), or
(B) any other method to provide tertiary enhanced recovery
which is approved by the Secretary for purposes of this
section.
(c) Application with other deductions
No deduction shall be allowed under subsection (a) with respect
to any expenditure -
(1) with respect to which the taxpayer has made an election
under section 263(c), or
(2) with respect to which a deduction is allowed or allowable
to the taxpayer under any other provision of this chapter.