In a mixing bowl, cream butter and sugar. Beat in eggs and extract. Combine flour and baking powder. Stir in nuts and chocolate chips; add to creamed mixture and stir until well mixed.
Pour into a greased 6-cup fluted tube pan. Bake at 350 degrees F for 30-35 minutes or until a toothpick inserted near the center comes out clean. Cool for 10 minutes before removing from pan to a wire rack to cool completely.