Development Costs
Development Costs means:
the expenses incurred in the exploitation of solid minerals after establishing that ore exists in commercially marketable quantities. These costs are deductible or may be capitalized and amortized during production. There is no recapture of development costs for solid minerals. In the case of oil and gas wells, development expenditures are divided into two classes: intangible drilling costs and equipment costs. Former IRC (check if this IRC provision is current here) §6l6.
Leave a Reply