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TITLE 26-INTERNAL REVENUE CODE subsec. (c) relating to advertising in a convention pro- gram of a national political convention. Subsec. (d). Pub. L. 93-443 redesignated former subsec. (d) as (c). 1968-Subsec. c). Pub. L. 90-364 added subsec. (c). Former subsec. (c) redesignated (d). Subsec. d). Pub. L. 90-364 redesignated former subsec. Wc) as (d). EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93-443 applicable with re- spect to taxable years beginning after Dec. 31, 1974, see section 410(c)(1) of Pub. L. 93-443, set out as an Ef- fective Date of 1974 Amendment note under section 431 of Title 2, The Congress. EFFECTIVE DATE OF 1968 AMENDMENT Section 108(b) of Pub. L. 90-364 provided that: "The amendments made by subsection (a) [enacting subsec. Cc) of this section] shall apply with respect to amounts paid or incurred on or after January 1. 1968." EFFECTIVE DATE Section 301(c) of Pub. L. 89-368 provided that: "The amendments made by subsections (a) and (b) [adding this section] shall apply to taxable years beginning after December 31, 1965, but only with respect to amounts paid or incurred after the date of the enact- ment of this Act [Mar. 15, 1966]." PROGRAM ADVERTISING FOR PRESIDENTIAL AND VICE- PRESIDENTIAL NOMINATING CONVENTIONS Pub. L. 93-625, § 10(g), Jan. 3, 1975, 88 Stat. 2119, re- pealed Pub. L. 90-346, June 18, 1968, 82 Stat. 183, pro- viding for advertising in a convention program of a na- tional political convention, applicable with respect to amounts paid or incurred on or after Jan. 1, 1968. § 277. Deductions incurred by certain membership or- ganizations in transactions with members (a) General rule In the case of a social club or other member- ship organization which is operated primarily to furnish services or goods to members and which is not exempt from taxation, deductions for the taxable year attributable to furnishing services, insurance, goods, or other items of value to members shall be allowed only to the extent of income derived during such year from members or transactions with members (includ- ing income derived during such year from insti- tutes and trade shows which are primarily for the education of members). If for any taxable year such deductions exceed such income, the excess shall be treated as a deduction attribut- able to furnishing services, insurance, goods, or other items of value to members paid or in- curred in the succeeding taxable year. The de- ductions provided by sections 243, 244, and 245 (relating to dividends received by corporations' shall not be allowed to any organization to which this section applies for the taxable yetr. (b) Exceptions Subsection (a) shall not apply to any organi- zation- (1) which for the taxable year is subject to taxation under subchapter H or L, (2) which has made an election before Octo- ber 9, 1969, under section 456(c) or which is affiliated with such an organization, or (3) which for each day of any taxable year is a national securities exchange subject to regulation under the Securities Exchange Act of 1934 or a contract market subject to regu- lation under the Commodity Exchange Act. (Added Pub. L. 91-172, title I, § 121(b)(3)(A). Dec. 30, 1969, 83 Stat. 540, and amended Pub. L. 94-568, § 1(c), Oct. 20, 1976, 90 Stat. 2697.) REFERENCES IN TEXT The Securities Exchange Act of 1934, referred to in subsec. (b)(3), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B § 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15, and Tables volume. The Commodity Exchange Act, referred to in subsec. (b)(3), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified'generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classifica- tion of this Act to the Code, see Tables volume. AMENDMENTS 1976-Subsec. (a). Pub. L. 94-568 provided that the deductions provided by sections 243, 244, and 245 (re- lating to dividends received by corporations) shall not be allowed to any organization to which this section applies for the taxable year. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-568 applicable to taxable years beginning after Oct. 20, 1976, see section 1(d) of Pub. L. 94-568, set out as an Effective Date of 1976 Amendment note under section 501 of this title. EFFECTIVE DATE Section applicable to taxable years beginning after Dec. 31, 1970, see section 121(g) of Pub. L. 91-172, set out as an Effective Date of 1969 Amendment note under section 511 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 404 of this title. § 278. Capital expenditures incurred in planting and developing citrus and almond groves; certain cap. ital expeniditures of farming syndicates (a) General rule Except as provided in subsection (c), any amount (allowable as a deduction without regard to this section), which is attributable to the planting, cultivation, maintenance, or devel- opment of any citrus or almond grove (or part thereof), and which Is incurred before the close of the fourth taxab~e year beginning with the taxable year in which the trees were planted, shall be charged to capital account. For pur- poses of the preceding sentence, the portion of a citrus or almond grove planted in one taxable year shall be treated separately from the por- tion of such grove planted in another taxable year. (b) Farming syndicates Except as provided in subsection (c), in the case of any farming syndicate (as defined in section 464(c)) engaged in planting, cultivating, maintaining, or developing a grove, orchard, or vineyard in which fruit or nuts are grown, any amount- (1) which would be allowable as a deduction but for the provisions of this subsection, (2) which is attributable to the planting, cultivation, maintenance, or development of such grove, orchard, or vineyard, and (3) which is incurred in 'a taxable year before the first taxable year in which such grove, orchard, or vineyard bears a crop or yield in commercial quantities, shall be charged to capital account. Page 222