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(a) manufactured,
(b) in Puerto Rico,
(c) by EAPR,
and that this have been done “within the meaning of subsection
(d)(1)(A) of section 954.”
Ordinarily, if we do not have a clear authoritative
interpretation of this language in section 936(h)(5)(B)(ii)
(final flush), then we would examine other Code provisions that
use the same language and treat interpretations of any such Code
provisions as authoritative, or at least highly persuasive,
definitions of this language. See, e.g., supra note 9 and
accompanying text, and our analysis of the meaning of “active
conduct of a trade or business”. However, we have held that the
terms “manufactured” and “produced” are not to be so analyzed.
In Spalding v. Commissioner, 66 T.C. 1017 (1976), the
taxpayers constructed an 8-foot chain link fence around that
portion of their auto wrecking yard in which their employees
dismantled autos and stored salvaged parts. Id. at 1019. The
issue before us was whether this fence qualified for the
investment credit. Id. In order to resolve this issue we had to
decide whether the taxpayers’ activity constituted
“manufacturing” or “production” within the meaning of section
48(a)(1)(B)(i), I.R.C. 1954. We opined that the taxpayers’
activity apparently would not constitute manufacturing or
production under section 954(d)(1)(A) but would under section
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