SECTION 3. EFFECTIVE DATE

This revenue procedure is effective on August 18, 1997.

DRAFTING INFORMATION

The principal author of this revenue procedure is Dwight N. Mersereau of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this revenue procedure, contact Mr. Mersereau on (202) 622-4970 (not a toll free call).

ginning after December 31, 1993, that are capitalized under § 263 and the regulations thereunder or that would be capitalized under § 263 and the regulations thereunder but for the fact that the costs create a package design (or modification to the design) having an ascertainable useful life that does not extend substantially beyond the end of the tax year in which the costs are incurred must be capitalized. All package design costs incurred after December 31, 1986, in taxable years beginning before January 1, 1994, that are capitalized under § 263A and the regulations thereunder or that would be capitalized under § 263A and the regulations thereunder but for the fact that the costs create a package design (or modification to the design) having an ascertainable

useful life that does not extend substantially beyond the end of the tax year in which the costs are incurred must be capitalized. The costs required to be capitalized are described in section 2 of this revenue procedure.

.08 Section 5 (CHANGING PACKAGE DESIGN COSTS METHOD) of Rev. Proc. 97–35 is renumbered as new section 6.

.09 Sections 6 (INQUIRIES), 7 (EFFECT ON OTHER DOCUMENTS), and 8 (EFFECTIVE DATE), of Rev. Proc. 97–35 are renumbered as new sections 7, 8, and 9, respectively. .10 Section 7 (EFFECT ON OTHER DOCUMENTS) of Rev. Proc. 97–35 (new section 8) is modified to read as follows:

Rev. Rul. 89–23, 1989–1 C.B. 85, is

1998–26 I.R.B. 37 June 29, 1998