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TITLE 26-INTERNAL REVENUE CODE taxable years beginning after Dec. 31, 1975, see section 213(f) of Pub. L. 94-455, set out as an Effective Date note under section 709 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment of subsecs. (d)(2)(B), (d)(6) and (7) by section 401(f) of Pub. L. 91-172 applicable with respect to taxable years ending on or after Dec. 31, 1970, see section 401(h)(3) of Pub. L. 91-172, set out as an Effec- tive Date of 1969 Amendment note under section 1561 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendment of subsecs. (d)(5), (8) by Pub. L. 87-834 applicable to taxable years beginning after Dec. 31, 1961, and ending after Oct. 16, 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 Section 204(c) of Pub. L. 85-866 provided that: "The amendments made by this section [which added this section and amended analysis prec. § 161 of this title] shall apply with respect to taxable years ending after June 30, 1958." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 48 of this title. § 180. Expenditures by farmers for fertilizer, etc. (a) In general A taxpayer engaged in the business of farm- ing may elect to treat as expenses which are not chargeable to capital account expenditures (otherwise chargeable to capital account) which are paid or incurred by him during the taxable year for the purchase or acquisition of fertiliz- er, lime, ground limestone, marl, or other mate- rials to enrich, neutralize, or condition land used in farming, or for the application of such materials to such land. The expenditures so treated shall be allowed as a deduction. (b) Land used in farming For purposes of subsection (a), the term "land used in farming" means land used (before or si- multaneously with the expenditures described in subsection (a)) by the taxpayer or his tenant for the production of crops, fruits, or other ag- ricultural products or for the sustenance of livestock. (c) Election The election under subsection (a) for any tax- able year shall be made within the time pre- scribed by law (including extensions thereof) for filing the return for such taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe. Such election may not be revoked except with the consent of the Secretary. (Added Pub. L. 80-779, § 6(a), Sept. 14, 1960, 74 Stat. 1001, and amended Pub. L. 94-455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) AMENDMENTS 1976-Subsec. (c). Pub. L. 94-455 struck out "or his delegate" following "Secretary". EFFECTIVE DATE Section 6(d) of Pub. L. 86-779 provided that: "The amendments made by subsections (a), (b), and (c) [adding this section and item 180 to table of sections for Part VI and amending section 263(a)(1) of this title] shall apply to taxable years beginning after De- cember 31, 1959." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 263 of this title. [§ 181. Repealed. Pub. L. 88-272, title II, § 203(a)(3) (11), Feb. 26, 1964, 78 Stat. 34] Section, Pub. L. 87-834, § 2(c), Oct. 16, 1962, 76 Stat. 970, related to a deduction for unused investment credit. EFFECTIVE DATE OF REPEAL Repeal of section applicable in case of property placed in service after Dec. 31, 1963, with respect to taxable years ending after such date, and in case of property placed in service before Jan. 1, 1964, with re- spect to taxable years beginning after Dec. 31, 1963, sf.e section 203(a)(4) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 48 of this title. § 182. Expenditures by farmers for clearing land (a) In general A taxpayer engaged in the business of farm- ing may elect to treat expenditures which are paid or incurred by him during the taxable year in the clearing of land for the purpose of making such land suitable for use in farming as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction. (b) Limitation The amount deductible under subsection (a) for any taxable year shall not exceed whichever of the following amounts is the lesser: (1) $5,000, or (2) 25 percent of the taxable income derived from farming during the taxable year. For purposes of paragraph (2), the term "tax- able income derived from farming" means the gross income derived from farming reduced by the deductions allowed by this chapter (other than by this section) which are attributable to the business of farming. (c) Definitions For purposes of subsection (a)- (1) The term "clearing of land" includes (but is not limited to) the eradication of trees, stumps, and brush, the treatment or moving of earth, and the diversion of streams and wa- tercourses. (2) The term "land suitable for use in farm- ing" means land which as a result of the ac- tivities described in paragraph (1) is suitable for use by the taxpayer or his tenant for the production of crops, fruits, or other agricul- tural products or for the sustenance of live- stock. (d) Exceptions, etc. (1) Exceptions The expenditures to which subsection (a) applies shall not include- (A) the purchase, construction, installa- tion, or improvement of structures, appli- ances, or facilities which are of a character which is subject to the allowance for depre- ciation provided in section 167, or (B) any amount paid or incurred which is allowable as a deduction without regard to this section. Page 183 § 182