(a) In general.—Section 56A(c)(13) is amended—
(1) by striking subparagraph (A) and inserting the following:
“(A) reduced by—
“(i) depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the year, and
“(ii) any deduction allowed for expenses under section 263(c) (including any deduction for such expenses under section 59(e) or 291(b)(2)) with respect to property described therein to the extent of the amount allowed as deductions in computing taxable income for the year, and”, and
(2) by striking subparagraph (B)(i) and inserting the following:
“(i) to disregard any amount of—
“(I) depreciation expense that is taken into account on the taxpayer’s applicable financial statement with respect to such property, and
“(II) depletion expense that is taken into account on the taxpayer’s applicable financial statement with respect to the intangible drilling and development costs of such property, and”.
(b) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.