Rev. Proc. 74-29
Rev. Proc. 74-29; 1974-2 C.B. 482
- 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; 1.167(a)-11.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 77-10
Section 1. Purpose.
The purpose of this Revenue Procedure is to prescribe under section 1.167(a)-11 of the Income Tax Regulations a new supplementary asset guideline class, and asset depreciation period and range designated Class 49.121, Nuclear fuel assemblies.
Nuclear reactor fuel assemblies used in electric utilities to generate power were held to be capital expenditures subject to depreciation in Rev. Rul. 72-507, 1972-2 C.B. 198, as clarified by Rev. Rul. 74-237, 1974-1 C.B. 70. This Revenue Procedure permits the use of the Class Life ADR System for nuclear fuel assemblies that were not previously included in Rev. Proc. 62-21, 1962-2 C.B. 418, or in any guideline class to which sections 1.167(a)-11 and 1.167(a)-12 of the regulations were applicable, but instead were depreciable under the relevant facts and circumstances.
Sec. 2. Asset Guideline Class and Asset Depreciation Range for Nuclear Fuel Assemblies.
The asset guideline class and asset guideline depreciation period and range for nuclear fuel assemblies are established as set forth below.
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Annual
Asset Depreciation Asset
Asset Range (in years) Guideline
Guide- ____________________________ Repair
line Depreciation of Lower Asset Guide- Upper Allowance
Class Assets Included Limit line Period Limit Percentage
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49.121 Nuclear fuel assem-
blies:
Includes initial
core and replacement
core nuclear fuel as-
semblies (i.e. the
composite of fabrica-
ted nuclear fuel and
container) when used
in a boiling water,
pressurized water, or
high temperature gas
reactor used in the
production of electri-
city. Does not include
nuclear fuel assem-
blies used in breeder
reactors _____________ 4.0 5.0 6.0 -
Sec. 3. Effect on Other Documents.
Rev. Proc. 72-10, 1972-1 C.B. 721, is modified by the addition of class 49.121, Nuclear fuel assemblies.
Sec. 4. Effective Date
The asset guideline period and asset depreciation range for class 49.121, Nuclear fuel assemblies, are effective for property first placed in service subsequent to December 31, 1973, to which section 1.167(a)-11 of the regulations applies.
1 Also released as Technical Information Release 1303, 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; 1.167(a)-11.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available