Rev. Proc. 76-27
Rev. Proc. 76-27; 1976-2 C.B. 644
- 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Superseded by Rev.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 a new asset guideline class, asset guideline period, asset depreciation range, and repair allowance percentage for assets used in the liquefaction and regasification of natural gas in liquefied natural gas (LNG) plant facilities. This permits the use of the Class Life Asset Depreciation Range (ADR) system in the determination of depreciation and annual repair allowance for these assets for tax purposes for the new asset guideline class 49.25, Liquefied Natural Gas Plant. This class is established for the assets used in this activity with an appropriate asset guideline period, asset depreciation range, asset guideline repair allowance percentage, and a description of the assets included in the asset guideline class.
The classification of the eligible property under the ADR system is not determinative of the proper classification of LNG property for investment credit purposes under sections 38 and 50 of the Internal Revenue Code. See Rev. Rul. 76-268, page 7, this Bulletin.
Sec. 2. Asset guideline class and period, asset depreciation range and asset guideline repair allowance for liquefied natural gas (lng).
For class 49.25, the asset guideline class, asset guideline period, asset depreciation range, asset guideline repair allowance percentage, as prescribed, are set forth below.
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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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49.25 Liquefied natural gas
plant:
Includes assets used
in the liquefaction,
storage, and
regasification of
natural gas including
loading and unloading
connections,
instrumentation
equipment and controls,
pumps, vaporizers and
odorizers, tanks, and
related land improvements.
Also includes pipeline
interconnections with gas
transmission lines and
distribution systems and
marine terminal
facilities ---------------- 17.5 22 26.5 4.5
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 period and depreciation range, and the annual asset guideline repair allowance percentage as indicated.
Sec. 4. Effective date.
The asset guideline classes, periods, asset depreciation ranges, and annual repair allowance percentages for liquefied natural gas activities set forth in this Revenue Procedure are effective for property placed in service during taxable years beginning on or after January 1, 1975.
1 Also released as IR-1628, dated June 25, 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
