Rev. Proc. 76-16
Rev. Proc. 76-16; 1976-1 C.B. 556
- 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Superseded by Rev.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 clarify Rev. Proc. 74-27, 1974-2 C.B. 480, which established asset guideline class 49.5, Industrial Steam and Electric Generation and Distribution Systems.
In clarifying the definition of asset guideline class 49.5, Industrial Steam and Electric Generation and Distribution Systems, it is provided that steam and chemical recovery systems, such as those used in the manufacture of pulp and paper, are not included in asset guideline class 49.5 but are included in the existing asset guideline class for the appropriate manufacturing or producing activity.
Sec. 2. Asset Guideline Classes and Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages 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 for asset guideline class 49.5 is clarified as set forth below:
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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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49.5 Industrial Steam and
Electric Generation
and Distribution
Systems:
Includes assets
used in the
production and
distribution of
electricity with
rated total capacity
in excess of 500
Kilowatts 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 industrial
manufacturing process
or plant activity and
not ordinarily
available for sale to
others.
Assets used to
generate or distribute
electricity or steam
of the type described
above of lesser rated
capacity are not
included, but are
included in the
appropriate manufacturing
equipment classes
elsewhere specified.
Steam and chemical
recovery boiler systems
used for the recovery
and regeneration of
chemicals used in
manufacturing, with rated
capacity in excess of
that described above,
with specifically related
distribution and return
systems are not included
but are included in
appropriate manufacturing
equipment classes
elsewhere specified. An
example of an excluded
steam and recovery boiler
system is that used in
the pulp and paper
manufacturing industry ______ 22.5 28 33.5 2.5
Sec. 3. Effect On Other Documents.
Rev. Proc. 74-27 is clarified to exclude steam and chemical recovery systems primarily used for the recovery and regeneration of chemicals used in manufacturing.
Sec. 4. Effective Date.
The asset guideline class, asset guideline depreciation period and range, and the annual asset guideline repair allowance percentage for asset guideline class 49.5, Industrial Steam and Electric Generation and Distribution Systems, is effective for property placed in service after December 31, 1973. As provided in Rev. Rul. 75-92, 1975-1 C.B. 75, the same options available to a taxpayer in the application of Rev. Proc. 74-27 are effective for asset guideline class 49.5 as clarified above.
1 Also released as IR-1578, 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
