Tertiary Injectant Expense Deduction

§ 193. Tertiary injectants(a) Allowance of deductionThere shall be allowed as a deduction for the taxable year an amount equal to the qualified tertiary injectant expenses of the taxpayer for tertiary injectants injected during such taxable year. (b) Qualified tertiary injectant expensesFor purposes of this section—(1) In generalThe term “qualified tertiary injectant expenses” means any cost paid or incurred (whether or not chargeable to capital account) for any tertiary injectant (other than a hydrocarbon injectant which is recoverable) which is used as a part of a tertiary recovery method. (2) Hydrocarbon injectantThe term “hydrocarbon injectant” includes natural gas, crude oil, and any other injectant which is comprised of more than an insignificant amount of natural gas or crude oil. The term does not include any tertiary injectant which is hydrocarbon-based, or a hydrocarbon-derivative, and which is comprised of no more than an insignificant amount of natural gas or crude oil. For purposes of this paragraph, that portion of a hydrocarbon injectant which is not a hydrocarbon shall not be treated as a hydrocarbon injectant. (3) Tertiary recovery methodThe term “tertiary recovery method” means—(A) any method which is described in subparagraphs (1) through (9) of section 212.78(c) of the June 1979 energy regulations (as defined by section 4996(b)(8)(C) as in effect before its repeal), or (B) any other method to provide tertiary enhanced recovery which is approved by the Secretary for purposes of this section. (c) Application with other deductionsNo deduction shall be allowed under subsection (a) with respect to any expenditure—(1) with respect to which the taxpayer has made an election under section 263(c), or (2) with respect to which a deduction is allowed or allowable to the taxpayer under any other provision of this chapter. (Added Pub. L. 96–223, title II, § 251(a)(1), Apr. 2, 1980, 94 Stat. 286; amended Pub. L. 97–448, title II, § 202(b), Jan. 12, 1983, 96 Stat. 2396; Pub. L. 100–418, title I, § 1941(b)(7), Aug. 23, 1988, 102 Stat. 1324.) Editorial Notes References in TextSection 4996(b)(8)(C), referred to in subsec. (b)(3)(A), was repealed by Pub. L. 100–418, title I, § 1941(a), Aug. 23, 1988, 102 Stat. 1322. Amendments1988—Subsec. (b)(3)(A). Pub. L. 100–418 substituted “section 4996(b)(8)(C) as in effect before its repeal” for “section 4996(b)(8)(C)”. 1983—Subsec. (b)(1). Pub. L. 97–448 struck out “during the taxable year” after “any cost paid or incurred”. Statutory Notes and Related Subsidiaries Effective Date of 1988 AmendmentAmendment by Pub. L. 100–418 applicable to crude oil removed from the premises on or after Aug. 23, 1988, see section 1941(c) of Pub. L. 100–418, set out as a note under section 164 of this title.