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TITLE 26-INTERNAL REVENUE CODE such expenditures shall be considered, in ap- plying this section, as costs for railroad grad- ing or tunnel bores placed in service in the year in which such costs are incurred. (2) Qualified railroad grading and tunnel bores The term "qualified railroad grading and tunnel bores" means railroad grading and tunnel bores the original use of which com- mences after December 31, 1968. (3) Pre-1969 railroad grading and tunnel bores The term "pre-1969 railroad grading and tunnel bores" means railroad grading and tunnel bores the original use of which com- mences before January 1, 1969. (g) Treatment upon retirement If any qualified railroad grading or tunnel bore is retired or abandoned during a taxable year for which an election under this section is in effect, no deduction shall be allowed on ac- count of such retirement or abandonment and the amortization deduction under this section shall continue with respect to such property. This subsection shall not apply if the retire- ment or abandonment is attributable primarily to fire, storm, or other casualty. (h) Investment credit not to be allowed Property eligible to be amortized under this section shall not be treated as section 38 prop- erty within the meaning of section 48(a). (i) Regulations The Secretary shall prescribe such regula- tions as may be necessary to carry out the pur- poses of this section. (j) Cross reference For special rule with respect to certain gain derived from the disposition of property the adjusted basis of which is determined with regard to this section, see sec- tion 1245. (Added Pub. L. 91-172, title VII, § 705(a), Dec. 30, 1969, 83 Stat. 672, and amended Pub. L. 94- 455, title XVII, § 1702, title XIX, § 1906(b) (13)(A), Oct. 4, 1976, 90 Stat. 1760, 1834.) AMENDMENTS 1976-Subsec. (c). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" in four places following "Secretary". Subsec. (d). Pub. L. 94-455, § 1702(a), added subsec. (d). Former subsec. (d) redesignated (f). Subsec. (e). Pub. L. 94-455, § 1702(a), added subsec. (e). Former subsec. (e) redesignated (g). Subsec. (f). Pub. L. 94-455, § 1702(a), (b), redesignat- ed former subsec. (d) as (f) and, as redesignated, added par. (3). Subsec. (g). Pub. L. 94-455, § 1702(a), redesignated former subsec. (e) as (g). Subsec. (h). Pub. L. 94-455. § 1702(a), redesignated former subsec. (f) as (h). Subsec. (i). Pub. L. 94-455, §§ 1702(a), 1906(b)(13)(A), redesignated former subsec. (g) as (I) and, as redesig- nated, struck out "or his delegate" following "Secre- tary". Subsec. (j). Pub. L. 94-455, § 1702(a), redesignated former subsec. (h) as (j). EFFECTIVE DATE Section applicable with respect to taxable years be- ginning after Dec. 31, 1969, see section 706(c) of Pub. L. 91-172, set out as an Effective Date note under sec- tion 184 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section Is referred to in sections 1082, 1245, 1250 of this title. § 186. Recoveries of damages for antitrust violations, etc. (a) Allowance of deduction If a compensatory amount which is included in gross income is received or accrued during the taxable year for a compensable injury, there shall be allowed as a deduction for the taxable year an amount equal to the lesser of- (1) the amount of such compensatory amount, or (2) the amount of the unrecovered losses sustained as a result of such compensable injury. () Compensable injury For purposes of this section, the term "com- pensable injury" means- (1) injuries sustained as a result of an in- fringement of a patent issued by the United States, (2) injuries sustained as a result of a breach of contract or a breach of fiduciary duty or relationship, or (3) injuries sustained in business, or to property, by reason of any conduct forbidden in the antitrust laws for which a civil action may be brought under section 4 of the Act en- titled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes", approved October 15, 1914 (commonly known as the Clayton Act). (c) Compensatory amount For purposes of this section, the term "com- pensatory amount" means the amount received or accrued during the taxable year as damages as a result of an award in, or in settlement of, a civil action for recovery for a compensable injury, reduced by any amounts paid or in- curred in the taxable year in securing such award or settlement. (d) Unrecovered losses (1) In general For purposes of this section, the amount of any unrecovered loss sustained as a result of any compensable injury is- (A) the sum of the amount of the net op- erating losses (as determined under section 172) for each taxable year in whole or in part within the injury period, to the extent that such net operating losses are attribut- able to such compensable injury, reduced by (B) the sum of- (i) the amount of the net operating losses described in subparagraph (A) which were allowed for any prior taxable year as a deduction under section 172 as a net operating loss carryback or carryover to such taxable year, and (ii) the amounts allowed as a deduction under subsection (a) for any prior taxable year for prior recoveries of compensatory amounts for such compensable injury. (2) Injury period For purposes of paragraph (1), the injury period is- § 186 Page 188