Rev. Proc. 76-18
Rev. Proc. 76-18; 1976-1 C.B. 559
- 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.)
- Code Sections
- 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Superseded by Rev.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, modified annual asset guideline repair allowance percentages for asset guideline classes 49.13, Electric utility steam production plant, and 49.14, Electric utility transmission and distribution plant. The asset guideline classes and the asset guideline depreciation periods and ranges of classes 49.13 and 49.14 are not changed by this Revenue Procedure.
The annual repair allowance percentages for electric utilities prescribed under Rev. Proc. 72-10, 1972-1 C.B. 721, had not been reviewed since the date of original publication. Study of the repair and maintenance practice of the industry has indicated that while the annual repair allowance percentages prescribed for asset guideline classes 49.11, Electric utility hydraulic production plant, 49.12, Electric utility nuclear production plant, and 49.15, Electric utility combustion turbine production plant, continue to be appropriate, the annual repair allowance percentages for asset guideline classes 49.13 and 49.14 require modification. This Revenue Procedure prescribes modified annual repair allowance percentages for asset guideline classes 49.13 and 49.14.
Sec. 2. Asset Guideline Classes, Periods, Asset Depreciation Ranges and Annual Asset Repair Allowance Percentages for the Electric Utility Activities Enumerated Below.
The asset guideline classes, and asset guideline depreciation periods and ranges are restated and the annual asset guidelines repair allowance percentages are prescribed as follows.
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Asset Depreciation
Range (in years) Annual
------------------- Asset
Asset Asset Guideline
Guide- Guide- Repair
line Description of Assets Lower line Upper Allowance
Class Included Limit Period Limit Percentage
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49.13 Electric utility steam
production plant:
Includes assets
used in the steam power
production of electricity
for sale, combustion
turbines operated in a
combined cycle with a
conventional steam unit,
and related land
improvements ____________ 22.5 28 33.5 5.0
49.14 Electric utility
transmission and
distribution plant:
Includes assets used
in the transmission and
distribution of
electricity for sale
and related land
improvements ____________ 24 30 36 4.5
Sec. 3. Effect on Other Documents.
Rev. Proc. 72-10 is modified by the prescription of revised annual asset guideline repair allowance percentages set forth in section 2 above for asset guideline classes 49.13 and 49.14.
Sec. 4. Effective Date.
The annual repair allowance percentage set forth in this Revenue Procedure are effective for taxable years beginning after December 31, 1974 for which the taxpayer elects to apply section 1.167(a)-11 of the regulations.
1 Also released as IR-1580, dated March 24, 1976.
- 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.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
