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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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