43-1127. Deferred exploration expenses


A. The amount of exploration expenses added to Arizona gross income pursuant to
section 43-1121, paragraph 8 may be subtracted on a ratable basis as the units of
produced ores or minerals discovered or explored by reason of such expenditures are
sold. An election made for any taxable year shall be binding for such year.


B. If such property is sold, it shall be treated in the same manner and on the same
basis as property held for the production of income pursuant to section 43-1021,
paragraph 7 or section 43-1022, paragraph 11.