### Question
How is the "construction period" defined?


### Answer
The term **construction period** is defined in *26 U.S.C. § 312* as follows -

> given the term production period under section 263A(f)(4)(B).[2](#312_2_target)


#### (2) Intangible drilling costs and mineral exploration and development costs


#### (A) Intangible drilling costs


Any amount allowable as a deduction under section 263(c) in determining taxable income (other than costs incurred in connection with a nonproductive well)—


(i) shall be capitalized, and


(ii) shall be allowed as a deduction ratably over the 60-month period beginning with the month in which such amount was paid or incurred.

#### Citation:
  - *26 U.S.C. § 312*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart B-Effects on Corporation**

