### Question
How is the "production expenditures" defined?


### Answer
The term **production expenditures** is defined in *26 U.S.C. § 263A* as follows -

> the costs (whether or not incurred during the production period) required to be capitalized under subsection (a) with respect to the property

#### Citation:
  - *26 U.S.C. § 263A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

