- 80 -
identity symbols, and signs (except billboards) are tangible
personal property). The parties agree further that the computer-
room air conditioners (Property Unit 3292) are 5-year property,
presumably because they satisfy the "sole justification" test of
section 1.48-1(e)(2), Income Tax Regs,49 and they consequently
48 (...continued)
investment tax credit includes special lighting (including
lighting to illuminate the exterior of a building or store,
but not lighting to illuminate parking areas), false
balconies and other exterior ornamentation that have no more
than an incidental relationship to the operation or
maintenance of a building, and identity symbols that
identify or relate to a particular retail establishment or
restaurant such as special materials attached to the
exterior or interior of a building or store and signs (other
than billboards). Similarly, floor coverings which are not
an integral part of the floor itself such as floor tile
generally installed in a manner to be readily removed (that
is it is not cemented, mudded, or otherwise permanently
affixed to the building floor but, instead, has adhesives
applied which are designed to ease its removal), carpeting,
wall panel inserts such as those designed to contain
condiments or to serve as a framing for pictures of the
products of a retail establishment, beverage bars,
ornamental fixtures (such as coats-of-arms), artifacts (if
depreciable), booths for seating, movable and removable
partitions, and large and small pictures of scenery,
persons, and the like which are attached to walls or
suspended from the ceiling, are considered tangible personal
property and not structural components. Consequently, under
existing law, this property is already eligible for the
investment tax credit. [S. Rept. 95-1263, at 117, 1978-3
C.B. (Vol. 1) 315, 415.]
49 Sec. 1.48-1(e)(2), Income Tax Regs., provides in pertinent
part as follows:
the term "structural components" does not
include machinery the sole justification for
the installation of which is the fact that
(continued...)
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