§ 173. Circulation expenditures

Statutory text

General rule

Notwithstanding section 263, all expenditures (other than expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher of a newspaper, magazine, or other periodical) to establish, maintain, or increase the circulation of a newspaper, magazine, or other periodical shall be allowed as a deduction; except that the deduction shall not be allowed with respect to the portion of such expenditures as, under regulations prescribed by the Secretary, is chargeable to capital account if the taxpayer elects, in accordance with such regulations, to treat such portion as so chargeable. Such election, if made, must be for the total amount of such portion of the expenditures which is so chargeable to capital account, and shall be binding for all subsequent taxable years unless, upon application by the taxpayer, the Secretary permits a revocation of such election subject to such conditions as he deems necessary.

Cross reference

For election of 3-year amortization of expenditures allowable as a deduction under subsection (a), see section 59(e).

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1954
Aug. 16, 1954, ch. 736, 68A Stat. 65 · 68A Stat. 65
Enacted · 26 U.S.C. § 173
Aug. 16, 1954, ch. 736, 68A Stat. 65
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 65
1976
Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 173
Pub. L. 94–455 struck out “or his delegate” after “Secretary” in two places
Source evidence
Code amendment note
Pub. L. 94–455 struck out “or his delegate” after “Secretary” in two places.
Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.
1982
Pub. L. 97–248 § 201(d)(9)(A) · 96 Stat. 324
1. Amended · 26 U.S.C. § 173
  Pub. L. 97–248, § 201(d)(9)(A), designated existing provisions as subsec. (a)
2. Added · 26 U.S.C. § 173
  Pub. L. 97–248, § 201(d)(9)(A), added subsec. (a) heading
3. Added · 26 U.S.C. § 173
  Pub. L. 97–248, § 201(d)(9)(A), added subsec. (b)
Source evidence
Code amendment note
Pub. L. 97–248, § 201(d)(9)(A), designated existing provisions as subsec. (a), added subsec. (a) heading, and added subsec. (b).
Enacted provision · exact public law section
“(d) Cross Reference.— “For election of 10-year amortization of expenditures allowable as a deduction under subsection (a), see section 58(i).” (D) Section 617 (relating to deduction of certain mining exploration 26 USC 617. expenditures) is amended by adding at the end thereof the following new subsection:
1984
Tax Reform Act of 1984
Pub. L. 98–369 div. A title VII § 711(a)(3)(C) · 98 Stat. 494
Substituted · 26 U.S.C. § 173(b)
Pub. L. 98–369 substituted “3-year” for “10-year”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 98–369 substituted “3-year” for “10-year”.
Enacted provision · exact public law section
(C) Subsection (b) of section 173 is amended by striking out “10-year” and inserting in lieu thereof “3-year”.
1986
Tax Reform Act of 1986
Pub. L. 99–514 title VII § 701(e)(4)(D) · 100 Stat. 2085
Substituted · 26 U.S.C. § 173(b)
Pub. L. 99–514 substituted “section 59(d)” for “section 58(i)”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 99–514 substituted “section 59(d)” for “section 58(i)”.
Enacted provision · exact public law section
(D) Section 173(b), 174(e)(2), 263(c), and 1016(a)(24) (as redesignated by section 634(b)(2)) are each amended by striking out “section 58(i)” and inserting in lieu thereof “section 59(d)”.
Effective date note
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
1988
Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 title I § 1007(g)(5) · 102 Stat. 3342
Substituted · 26 U.S.C. § 173(b)
Pub. L. 100–647 substituted “section 59(e)” for “section 59(d)”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 100–647 substituted “section 59(e)” for “section 59(d)”.
Enacted provision · exact public law section
(5) Sections 173(b), 174(e)(2), and 263(c) of the 1986 Code are each amended by striking out “section 59(d)” and inserting in lieu thereof “section 59(e)”.
Effective date note
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

7 of 8 references resolved to an enrolled provision · 1 partial

Editorial Notes

Amendments1976–1988 · 5 rounds

1988

Subsec. (b). Pub. L. 100–647 substituted “section 59(e)” for “section 59(d)”.

1986

Subsec. (b). Pub. L. 99–514 substituted “section 59(d)” for “section 58(i)”.

1984

Subsec. (b). Pub. L. 98–369 substituted “3-year” for “10-year”.

1982

Pub. L. 97–248, § 201(d)(9)(A), designated existing provisions as subsec. (a), added subsec. (a) heading, and added subsec. (b).

1976

Pub. L. 94–455 struck out “or his delegate” after “Secretary” in two places.

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an Effective Date note under section 55 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title.

Effective Date of 1982 Amendment

Amendment by Pub. L. 97–248 applicable to taxable years beginning after Dec. 31, 1982, see section 201(e)(1) of Pub. L. 97–248, set out as a note under section 5 of this title.

Applicability of Certain Amendments by Pub. L. 99–514 in Relation to Treaty Obligations of United States

For applicability of amendment by Pub. L. 99–514 notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Pub. L. 100–647 be treated as if it had been included in the provision of Pub. L. 99–514 to which such amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100–647, set out as a note under section 861 of this title.

Credits

1954–1988 · 6 acts

1954Aug. 16, 1954, ch. 736, 68A Stat. 65
1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834
1982Pub. L. 97–248, title II, § 201(d)(9)(A), formerly § 201(c)(9)(A), Sept. 3, 1982, 96 Stat. 420, renumbered § 201(d)(9)(A), Pub. L. 97–448, title III, § 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400
1984Pub. L. 98–369, div. A, title VII, § 711(a)(3)(C), July 18, 1984, 98 Stat. 942
1986Pub. L. 99–514, title VII, § 701(e)(4)(D), Oct. 22, 1986, 100 Stat. 2343
1988Pub. L. 100–647, title I, § 1007(g)(5), Nov. 10, 1988, 102 Stat. 3435.

Show as published

(Aug. 16, 1954, ch. 736, 68A Stat. 65; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title II, § 201(d)(9)(A), formerly § 201(c)(9)(A), Sept. 3, 1982, 96 Stat. 420, renumbered § 201(d)(9)(A), Pub. L. 97–448, title III, § 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 98–369, div. A, title VII, § 711(a)(3)(C), July 18, 1984, 98 Stat. 942; Pub. L. 99–514, title VII, § 701(e)(4)(D), Oct. 22, 1986, 100 Stat. 2343; Pub. L. 100–647, title I, § 1007(g)(5), Nov. 10, 1988, 102 Stat. 3435.)