qualified enhanced oil recovery costs

(1) In general The term “qualified enhanced oil recovery costs” means any of the following: (A) Any amount paid or incurred during the taxable year for tangible property— (i) which is an integral part of a qualified enhanced oil recovery project, and (ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable under this chapter. (B) Any intangible drilling and development costs— (i) which are paid or incurred in connection with a qualified enhanced oil recovery project, and (ii) with respect to which the taxpayer may make an election under section 263(c) for the taxable year. (C) Any qualified tertiary injectant expenses (as defined in section 193(b) ) which are paid or incurred in connection with a qualified enhanced oil recovery project and for which a deduction is allowable for the taxable year. (D) Any amount which is paid or incurred during the taxable year to construct a gas treatment plant which— (i) is located in the area of the United States (within the meaning of section 638(1) ) lying north of 64 degrees North latitude, (ii) prepares Alaska natural gas for transportation through a pipeline with a capacity of at least 2,000,000,000,000 Btu of natural gas per day, and (iii) produces carbon dioxide which is injected into hydrocarbon-bearing geological formations.

Source

26 USC § 43(c)(1)


Scoping language

For purposes of this section
Is this correct? or