Payless Cashways, Inc. and Its Subsidiaries - Page 14




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               On the record before us, there is insufficient evidence of             
          the type of substantial international operations required to                
          justify classifying Payless’ corporate headquarters at Two                  
          Pershing Square a “world headquarters” as that term is used in              
          TRA section 204(a)(7).                                                      
          Equipped Building Rule                                                      
               In the alternative, Payless argues that its expenditures               
          qualify for ITC under the “equipped building rule”.  TRA section            
          203(b)(1)(C) provides:                                                      
                    (1)  In general.--The amendments made by section                  
               201 shall not apply to--                                               
                       *     *     *      *     *     *     *                         
                         (C) an equipped building or plant                            
                    facility if construction has commenced as of                      
                    [December 31, 19859], pursuant to a written                       
                    specific plan and more than one-half of the                       
                    cost of such equipped building or facility                        
                    has been incurred or committed by such date.                      
          In order to qualify for transitional relief, Payless must show              
          that:                                                                       
               (1)  Construction commenced by December 31, 1985;                      
               (2)  Construction was pursuant to a written specific plan;             
          and                                                                         
               (3)  More than one-half of the cost of the building,                   
          including its machinery and equipment, was incurred or committed            


               8(...continued)                                                        
          world headquarters.                                                         
               9TRA sec. 211(a) amended subpt. E of pt. IV of subch. A of             
          ch. 1 by adding a new sec. 49.  Sec. 49(e)(1)(B) substituted                
          “Dec. 31, 1985", for “Mar. 1, 1986", in sec. 203(b)(1)(C).                  


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