Par. 2. In § 1.612-3, the second sentence of paragraph (c)(2) is removed and two sentences are added in its place to read as follows:
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(c) * * *
(2) * * * To the extent the delay rental is not required to be capitalized under section 263A and the regulations thereunder, the payor may at his election deduct such amount or under section 266 and the regulations thereunder, charge it to depletable capital account. The second sentence of this paragraph (c)(2) applies to delay rentals paid with respect to leasing transactions entered into on or after the date these regulations are published as final regulations in the Federal Register .
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