Internal Revenue Code · 26 U.S.C.
§ 248. Organizational expenditures
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 248
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- October 4, 1976 by Pub. L. 94–455
- Last amended
- December 19, 2014 by Pub. L. 113–295
- Amendments
- 2 dated changes in the source credit
- Length
- 3 subsections · 290 words · about 1 min to read
- Defines
- 1 term
- Cross-references
- cites 0; cited by 9 Code sections and 14 other regulations
- Regulations
- 1 issued under this section
The election provided by subsection (a) may be made for any taxable year but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The period so elected shall be adhered to in computing the taxable income of the corporation for the taxable year for which the election is made and all subsequent taxable years.
(Aug. 16, 1954, ch. 736, 68A Stat. 76; Pub. L. 94–455, title XIX, §§ 1901(a)(36), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1770, 1834; Pub. L. 108–357, title VIII, § 902(b), Oct. 22, 2004, 118 Stat. 1651; Pub. L. 113–295, div. A, title II, § 221(a)(42), Dec. 19, 2014, 128 Stat. 4044.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 248
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 9 Code sections
- § 170(b)(2)(D)(ii) Charitable, etc., contributions and gifts
- § 312(n)(3) Effect on earnings and profits
- § 535(b)(3) Accumulated taxable income
- § 545(b)(3) Undistributed personal holding company income
- § 834(c)(7) Determination of taxable investment income
- § 852(b)(2)(C) Taxation of regulated investment companies and their shareholders
- § 857(b)(2)(A) Taxation of real estate investment trusts and their beneficiaries
- § 1363(b)(3) Effect of election on corporation
- § 1375(b)(1)(B)(i) Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts
Cited in 14 regulations not issued under it
- § 1.167(a)-3 Intangibles.
- § 1.170-3 Contributions or gifts by corporations (before amendment by Tax Reform Act of 1969).
- § 1.170A-11 Limitation on, and carryover of, contributions by corporations.
- § 1.172-2 Net operating loss in case of a corporation.
- § 1.263(a)-6 Election to deduct or capitalize certain expenditures.
- § 1.535-2 Adjustments to taxable income.
- § 1.545-2 Adjustments to taxable income.
- § 1.818-2 Accounting provisions.
- § 1.822-5 Mutual insurance company taxable income.
- § 1.822-8 Determination of taxable investment income.
- § 1.852-3 Investment company taxable income.
- § 1.857-2 Real estate investment trust taxable income and net capital gain.
- § 1.1374-1A Tax imposed on certain capital gains.
- § 301.6621-2T Questions and answers relating to the increased rate of interest on substantial underpayments attributable to certain tax motivated transactions (temporary).
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part VIII SPECIAL DEDUCTIONS FOR CORPORATIONS
Nearby sections
- § 245A Deduction for foreign source-portion of dividends received by domestic corporations from specified 10-percent owned foreign corporations
- § 246 Rules applying to deductions for dividends received
- § 246A Dividends received deduction reduced where portfolio stock is debt financed
- § 247 Contributions to Alaska Native Settlement Trusts
- § 248 Organizational expenditures
- § 249 Limitation on deduction of bond premium on repurchase
- § 250 Foreign-derived deduction eligible income and net CFC tested income
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2014—Subsec. (c). Pub. L. 113–295 struck out “beginning after December 31, 1953,” after “any taxable year” and “The election shall apply only with respect to expenditures paid or incurred on or after August 16, 1954.” at end.
2004—Subsec. (a). Pub. L. 108–357 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “The organizational expenditures of a corporation may, at the election of the corporation (made in accordance with regulations prescribed by the Secretary, be treated as deferred expenses. In computing taxable income, such deferred expenses shall be allowed as a deduction ratably over such period of not less than 60 months as may be selected by the corporation (beginning with the month in which the corporation begins business).”
1976—Subsec. (a). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (c). Pub. L. 94–455, § 1901(a)(36), substituted “August 16, 1954” for “the date of enactment of this title”.
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–357 applicable to amounts paid or incurred after Oct. 22, 2004, see section 902(d) of Pub. L. 108–357, set out as a note under section 195 of this title.
Effective Date of 1976 Amendment
Amendment by section 1901(a)(36) of Pub. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Amendment by section 1906(b)(13)(A) of Pub. L. 94–455 effective Feb. 1, 1977, see section 1906(d)(1) of Pub. L. 94–455, set out as a note under section 6013 of this title.