drilling and development costs in the case of oil and gas wells and geothermal wells (a) In general Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended to read as follows: (c) Intangible drilling and development costs in the case of oil and gas wells and geothermal wells Notwithstanding subsection (a), and except as provided in subsection (i), in the case of any expenses paid or incurred in connection with intangible drilling and development costs related to oil and gas wells and wells drilled for any geothermal deposit (as defined in section 613(e)(2))— (1) such expenses shall be allowed as a deduction ratably over the 84-month period beginning on the date that such expense was paid or incurred, (2) any such expenses paid or incurred during any month shall be treated as paid or incurred on the mid-point of such month, (3) except as provided in this subsection, no depreciation or amortization deduction shall be allowed with respect to such expenses, and (4) if any property with respect to which such intangible drilling and development costs are paid or incurred is retired or abandoned during such 84-month period, no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this subsection shall continue with respect to such payment. . (b) Conforming amendments (1) Section 57(a)(2)(B)(i) of the Internal Revenue Code of 1986 is amended by striking 263(c) or . (2) Section 59(e) of such Code, as amended by sections 128 and 129, is amended— (A) in paragraph (2)— (i) in subparagraph (A), by inserting or at the end, (ii) in subparagraph (B), by striking the comma at the end and inserting a period, and (iii) by striking subparagraph (C), and (B) by striking paragraph (5). (3) Section 263A(c)(3) of such Code, as amended by sections 128 and 129, is amended by striking 263(c), . (4) Section 291 of such Code, as amended by sections 128 and 129, is amended by striking subsection (b). (5) Section 312(n) of such Code, as amended by sections 128 and