RTC §24422: No deduction shall be allowed for both of the following: (a) Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate.

No deduction shall be allowed for both of the following: (a) Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate. This subdivision shall not apply to: (1) Expenditures for the development of mines or deposits deductible under Section 616 of the Internal Revenue Code. (2) Soil and water conservation expenditures deductible under Section 24369. (3) Expenditures for farmers for fertilizer, etc., deductible under Section 24377. (4) Research and experimental expenditures deductible under Section 24365. (5) Expenditures for which a deduction is allowed under Section 24356.7. (6) Expenditures for removal of architectural and transportation barriers to the handicapped and elderly that the taxpayer elects to deduct under Section 24383. (b) Any amount expended in restoring property or in making good the exhaustion thereof for which an allowance is or has been made.