- 42 - of a building". Scott Paper Co. v. Commissioner, 74 T.C. at 183. In Scott Paper Co. v. Commissioner, supra at 182-183, which involved a claimed credit for electric wiring, we stated: Although we give great weight to respondent's regulations, it would be improper to read the words "electric wiring" in a vacuum and conclude that those electric cables, therefore, must be structural components. Rather, the effect of the final element of that same subparagraph, which reads "and other components relating to the operation or maintenance of a building," must be taken into account. That final element functions as a descriptive phrase intended to present the basic test used for identifying structural components. The preceding elements are examples of items which meet that 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. * * * Accordingly, the critical test * * * is whether they [the electric wiring and fixtures] relate to the overall operation and maintenance of a building. * * * [Fn. refs. omitted.] See also Everhart v. Commissioner, 61 T.C. at 331; Ponderosa Mouldings, Inc. v. Commissioner, 53 T.C. 92, 96 (1969). In Scott, we held that "a logical and objective measure of electrical load exists, allowing an allocation between the structural and process functions which are served by the electrical components." Scott Paper Co. v. Commissioner, supra at 185. Based on this objective evidence, we held that the components of a primary electrical system were tangible personal property to the extent they provided power for the taxpayer's process machinery, and we disallowed ITC's only for thePage: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Next
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