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a descriptive phrase intended to present the basic
test used for identifying structural components.
The preceding elements are examples of items which
meet the test as a general rule. Items which
occur in an unusual circumstance and do not relate
to the operation or maintenance of a building
should not be structural components despite being
listed in section 1.48-1(e)(2), Income Tax Regs.
* * *
We also quoted the Technical Explanations of the Revenue Act
of 1962 which explained the language which was incorporated
in the regulation as follows:
The term "structural components" of a building
includes such parts of the building as central
air-conditioning and heating systems, plumbing,
and electric wiring and lighting fixtures,
relating to the operation [or] maintenance of the
building. [H. Rept. 1447, 87th Cong., 2d Sess.
(1962), 1962-3 C.B. 503, 516; S. Rept. 1881, 87th
Cong., 2d Sess. (1962), 1962-3 C.B. 843, 859.]
In accordance, we concluded that property fails to qualify
for the credit if it relates to the overall operation or
maintenance of a building rather than being used to aid in
the employment of a particular function or particular piece
of property. See Central Citrus Co. v. Commissioner, 58
T.C. 365, 374 (1972).
We focused on the ultimate uses of power at the
taxpayer's facility in Scott Paper Co. and distinguished the
power used in the overall operation or maintenance such as
lighting, heating, ventilation and air-conditioning of the
building and the power used to operate the taxpayer's
machinery. Scott Paper Co. v. Commissioner, supra at 183-
184. We thus concluded in Scott Paper Co. that:
To the extent that the primary electric carried
electrical loads to be used for pulp and paper
production processes or other such qualifying
uses, the investment credit will be allowed for
the primary electric improvements.
To the extent that the primary electric
improvements relate to the overall operation [or]
maintenance of buildings, they are structural
components of such buildings, and they do not qualify
as tangible personal property.
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