26 U.S.C. § 248

1. (a)If a corporation elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenditures—
   1. (1)the corporation shall be allowed a deduction for the taxable year in which the corporation begins business in an amount equal to the lesser of—
      1. (A)the amount of organizational expenditures with respect to the taxpayer, or
      2. (B)$5,000, reduced (but not below zero) by the amount by which such organizational expenditures exceed $50,000, and
   2. (2)the remainder of such organizational expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the corporation begins business.
2. (b)The term “organizational expenditures” means any expenditure which—
   1. (1)is incident to the creation of the corporation;
   2. (2)is chargeable to capital account; and
   3. (3)is of a character which, if expended incident to the creation of a corporation having a limited life, would be amortizable over such life.
3. (c)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.