SECTION 4. DEFINITIONS

.01 Eligible small business taxpay- er. An eligible small business taxpayer is a taxpayer, other than a tax shelter as defined in § 448(d)(3), that meets the § 448(c) gross receipts test, as defined in section 4.05 of this revenue procedure, and that:

(1) made a valid election under § 263A(d)(3) for plants produced in the taxpayer’s farming business for a taxable year prior to the taxable year for which the

taxpayer wants to revoke such election; and

(2) properly implemented the election under § 263A(d)(3).

.02 Former eligible small business tax- payer . A former eligible small business taxpayer is a taxpayer whose method of accounting is not to capitalize costs under § 263A based on the exemption provided in § 263A(i), and for the taxable year:

(1) becomes ineligible to use the exemption under § 263A(i); and

(2) is eligible to and wants to elect under § 263A(d)(3) not to capitalize costs under § 263A for certain plants produced in the taxpayer’s farming business.

.03 Related person . A related person is as defined in § 1.263A-4(d)(4)(iii).

.04 Farming business . A farming business is as defined in § 263A(e)(4) and § 1.263A-4(a)(4).

.05 Gross receipts test . The gross receipts test is as defined § 448(c).

.06 Plant . A plant is as defined in § 1.263A-4(a)(4)(A).