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TITLE 26-INTERNAL REVENUE CODE § 248. Organizational expenditures (a) Election to amortize The organizational expenditures of a corpora- tion may, at the election of the corporation (made in accordance with regulations pre- scribed by the Secretary, be treated as deferred expenses. In computing taxable income, such deferred expenses shall be allowed as a deduc- tion ratably over such period of not less than 60 months as may be selected by the corporation (beginning with the month in which the corpo- ration begins business). (b) Organizational expenditures defined The term "organizational expenditures" means any expenditure which- (1) is incident to the creation of the corpo- ration; (2) is chargeable to capital account; and (3) is of a character which, if expended inci- dent to the creation of a corporation having a limited life, would be amortizable over such life. (c) Time for and scope of election The election provided by subsection (a) may be made for any taxable year beginning after December 31, 1953, but only if made not later than the time prescribed by law for filing the return for such taxable year (including exten- sions thereof). The period so elected shall be adhered to in computing the taxable income of the corporation for the taxable year for which the election is made and all subsequent taxable years. The election shall apply only with re- spect to expenditures paid or incurred on or after August 16, 1954. (Aug. 16, 1954, ch. 736, 68A Stat. 76: Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1901(a)(36), 1906(b)(13)(A), 90 Stat. 1770, 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (c). Pub. L. 94-455, § 1901(a)(36), substituted "August 16, 1954" for "the date of enactment of this title". EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (a) by section 1906(b)(13)(A) of Pub. L. 94-455 effective Feb. 1, 1977, see section 1906(d)(1) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 6013 of this title. Amendment of subsec. (c) by section 1901(a)(36) 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 an Effective Date of 1976 Amendment note under section 2 of this title. CROSS REFERENCES Capital expenditures not deductible, see section 263 of this title. Time for filing returns, see sections 6072, 6081 of this title. Trade or business expenses deductible, see section 162 of Lhis title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 170, 535, 545, 556, 822, 857, 1247, 1373, 1374 of this title. § 249. Limitation on deduction of bond premium on repurchase (a) General rule No deduction shall be allowed to the issuing corporation for any premium paid or incurred upon the repurchase of a bond, debenture, note, or certificate or other evidence of indebt- edness which is convertible into the stock of the issuing corporation, or a corporation in con- trol of, or controlled by, the issuing corpora- tion, to the extent the repurchase price exceeds an amount equal to the adjusted issue price plus a normal call premium on bonds or other evidences of indebtedness which are not con- vertible. The preceding sentence shall not apply to the extent that the corporation can demonstrate to the satisfaction of the Secre- tary that such excess is attributable to the cost of borrowing and is not attributable to the con- version feature. (b) Special rules For purposes of subsection (a)- (1) Adjusted issue price The adjusted issue price is the issue price (as defined in section 1232(b)) increased by any amount of discount deducted before re- purchase, or, in the case of bonds or other evidences of indebtedness issued after Febru- ary 28, 1913, decreased by any amount of pre- mium included in gross income before repur- chase by the issuing corporation. (2) Control The term "control" has the meaning as- signed to such term by section 368(c). (Added Pub. L. 91-172, title IV, § 414(a), Dec. 30, 1969, 83 Stat. 612, and amended Pub. L. 94- 455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455 struck out "or his delegate" following "Secretary". EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (a) by section 1906(b)(13)(A) of Pub. L. 94-455 effective Feb. 1, 1977, see section 1906(d)(1) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 6013 of this title. EFFECTIVE DATE Section 414(c) of Pub. L. 91-172 provided that: "The amendments made by this section [adding this sec- tion] shall apply to a convertible bond or other con- vertible evidence of indebtedness repurchased after April 22, 1969, other than such a bond or other evi- dence of indebtedness repurchased pursuant to a bind- Ing obligation incurred on or before April 22, 1969, to repurchase such bond or other evidence of indebted- ness at a specified call premium, but no inference shall be drawn from the fact that section 249 of the Inter- nal Revenue Code of 1954 (as added by subsection (a) of this section) [this section] does not apply to the re- purchase of such convertible bond or other convertible evidence of indebtedness." § 250. Certain payments to the National Railroad Pas- senger Corporation (a) General rule If- (1) any corporation which is a common car- rier by railroad (as defined in section 1(3) of Page 209 § 250