Payless Cashways, Inc. and Its Subsidiaries - Page 16

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               Payless would not qualify for transitional relief under TRA            
          section 203(b)(1)(C) even if it could establish the total cost of           
          the building because Payless did not have a written specific plan           
          and did not incur or commit to more than one-half of the cost of            
          the equipped building.                                                      
               TRA section 203(b)(1)(C) does not explicitly state whose               
          “written specific plan” will satisfy the requirement of the                 
          section.  However, the conference report supports the proposition           
          that the “written specific plan” referred to in the section must            
          be the plan of the taxpayer claiming the credit.  The conference            
          report states:                                                              
                    Under the equipped building rule, the conference                  
               agreement [repeal of the ITC] will not apply to                        
               equipment and machinery to be used in the completed                    
               building, and also incidental machinery, equipment, and                
               structures adjacent to the building (referred to here                  
               as appurtenances) which are necessary to the planned                   
               use of the building, where the following conditions are                
                    (1) The construction (or reconstruction or                        
               erection) or acquisition of the building, machinery,                   
               and equipment was pursuant to a specific written plan                  
               of a taxpayer in existence on March 1, 1986 (December                  
               31, 1985, for the investment tax credit); and                          
                    (2) More than 50 percent of the adjusted basis of                 
               the building and the equipment and machinery to be used                
               in it (as contemplated by the written plan) was                        
               attributable to property the cost of which was incurred                
               or committed by March 1, 1986 (December 31, 1985, for                  
               the investment tax credit), and construction commenced                 
               on or before March 1, 1986 (December 31, 1985, for the                 
               investment tax credit).                                                
                    The written plan for an equipped building may be                  
               modified to a minor extent after March 1, 1986,                        
               (December 31, 1985, for the investment tax credit) and                 

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