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transtackers, its primary purpose is to support the racks and
other structural elements of the Reserve Facility. Consequently,
as in Munford, the structural elements here have a function
independent of supporting the machinery, which indicates that the
structural elements are not so closely related to the machinery
that they should be considered in the nature of machinery
themselves. Id. at 492-493.
Nevertheless, petitioner contends that it is entitled to an
ITC for the separate components of the Reserve Facility
individually, which include: (1) The storage rack system; (2)
the superflat concrete slab; (3) the roofing and the wall panels;
and (4) miscellaneous systems (consisting of heating,
ventilation, electrical, and fire protection systems).
Respondent, on the other hand, contends that these individual
items constitute inherently permanent structural components of
the Reserve Facility and, therefore, do not qualify as section 38
property.
Section 1.48-1(e)(2), Income Tax Regs., explains the meaning
of "structural components" mainly by illustration rather than by
definition:
The term "structural components" includes such parts of
a building as walls, partitions, floors, and ceilings,
as well as any permanent coverings therefor such as
panelling or tiling; windows and doors; all components
(whether in, on, or adjacent to the building) of a
central air conditioning or heating system, including
motors, compressors, pipes and ducts; plumbing and
plumbing fixtures, such as sinks and bathtubs; electric
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