- 34 - Our inquiry in the instant case is thus not to consider whether the Reserve Facility as a whole constitutes property in the nature of machinery. Rather, the question presented is whether the individual structural elements of the Reserve Facility qualify as property in the nature of machinery which is eligible for an ITC. The structural elements of the Reserve Facility are fixed in place and are similar to the structural elements involved in Munford. The transtackers, like the refrigeration equipment in Munford, are the only components of the Reserve Facility that could be considered to have a machinerylike function. Petitioner has not shown that if it became necessary to replace the transtackers in the Reserve Facility, it would be as economical to replace the entire facility, including the structural elements, as it would be to replace only the transtackers. Additionally, petitioner admits that the walls and the roof of the Reserve Facility have a function separate and apart from merely supporting the transtackers. Petitioner concedes that the purpose of the roofing and wall panels connected to the racks is merely to protect petitioner's inventory. Although the guide tubes and the electrical bus bars for the transtackers are attached to the racks, the primary purpose of the racks is not to support this equipment but, instead, to hold petitioner's merchandise and to support the roof and the walls that protect the merchandise. While the floor slab provides a smooth surface for thePage: Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Next
Last modified: May 25, 2011