A taxpayer subject to AS 43.20.144 shall capitalize, and depreciate under 15 AAC 20.480, intangible drilling and development costs that are not subject to capitalization and depletion in the determination of federal taxable income as a result of an election under Internal Revenue Code section 263(c) (26 U.S.C. 263(c)), including intangible drilling and development costs subject to capitalization and amortization under Internal Revenue Code sections 59(e), 291(b), and 312(n) (26 U.S.C. 59(e), 291(b), and 312(n)), but not Internal Revenue Code section 263(i) (26 U.S.C. 263(i)). A taxpayer may elect to capitalize, and depreciate under 15 AAC 20.480, intangible drilling costs capitalized under Internal Revenue Code section 263(i) (26 U.S.C. 263(i)) and may make a separate election for each group of combined corporations set out in 15 AAC 20.480(d).

(Eff. 3/6/98, Register 145)