Rev. Proc. 74-27
Rev. Proc. 74-27; 1974-2 C.B. 480
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit
or abatement; determination of correct tax liability.
(Also Part I, Section 167; 167(a)-11.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 77-10 Clarified by Rev. Proc. 76-16
Section 1. Purpose.
The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11(b)(4)(i) of the Income Tax Regulations a subclass 49.5 Industrial steam and electric generation and distribution systems used in all asset guideline class activities except those of public utilities.
In establishing new asset guideline subclass 49.5 Industrial steam and electric generation and distribution systems, it is provided that this new subclass is an addition to and part of the existing asset guideline class for the appropriate manufacturing or producing activity and such subclass is not separately subject to possible exclusion from the election provided for in section 1.167(a)-11(b)(5)(v) of the regulations.
Sec. 2. Asset Guideline Class and Period, Asset Depreciation Range, and Annual Asset Guideline Repair Allowance Percentage for Assets Used in Industrial Steam and Electric Generation and Distribution Systems.
The asset guideline class, asset guideline depreciation period and range, and the annual asset guideline repair allowance percentage are established as set forth below.
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Annual
Asset Depreciation Asset
Asset Range (in years) Guideline
Guide- ____________________________ Repair
line Description of Lower Asset Guide- Upper Allowance
Class Assets Included Limit line Period Limit Percentage
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49.5 Industrial steam and
electric generation
and distribution
systems:
Includes assets
used in the produc-
tion and distribution
of electricity with
rated total capacity
in excess of 500 Kilo-
watts and/or assets
used in the production
and distribution of
steam with rated total
capacity in excess of
12,500 pounds per
hour, for use by the
taxpayer in his indus-
trial manufacturing
process or plant acti-
vity and not ordinari-
ly available for sale
to others.
Assets used to ge-
nerate or distribute
electricity or steam
of the type described
above of lesser rated
capacity are not in-
cluded, but are inclu-
ded in the appropriate
manufacturing equip-
ment classes elsewhere
specified ____________ 22.5 28 33.5 2.5
Sec. 3. Effect on Other Documents.
Rev. Proc. 72-10, 1972-1 C.B. 721, is modified by the supplemental asset guideline class set forth in section 2 above with prescribed asset guideline depreciation period and range, and the annual asset guideline repair allowance percentage as indicated.
Sec. 4. Effective Date.
The asset guideline class, asset guideline depreciation period and range, and the annual asset guideline repair allowance percentage for class 49.5, Industrial steam and electric generation and distribution systems is effective for property placed in service after December 31, 1973, to which section 1.167(a)-11 of the regulations applies.
1 Also released as Technical Information Release 1301, dated August 23, 1974.
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund, credit
or abatement; determination of correct tax liability.
(Also Part I, Section 167; 167(a)-11.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
