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Rev. Proc. 74-29

Rev. Proc. 74-29; 1974-2 C.B. 482

DATED
DOCUMENT ATTRIBUTES
  • 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.)

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 74-29; 1974-2 C.B. 482

Superseded by Rev. Proc. 77-10

Rev. Proc. 74-29 1

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.

 ---------------------------------------------------------------------

 

                                                            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

 

 ---------------------------------------------------------------------

 

 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.

DOCUMENT ATTRIBUTES
  • 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.)

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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