This section shall not apply to any short-term obligation to which section 1281 applies.
A taxpayer may make an election under this paragraph to have section 1281 apply to all short-term obligations acquired by the taxpayer on or after the 1st day of the 1st taxable year to which such election applies.
Rules similar to the rules of subsections (b) and (c) of section 1277 shall apply for purposes of this section.
For special rules limiting the application of this section to original issue discount in the case of nongovernmental obligations, see section 1283(c).