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Tax Returns
Petitioner did not claim an investment tax credit with
respect to the nuclear fuel assemblies that were placed in
service in 1990 on its 1990 Form 1120, U.S. Corporation Income
Tax Return. Based on the advice of its accountants, petitioner
filed a Form 1120X, Amended U.S. Corporation Income Tax Return,
on September 14, 1994, claiming an additional investment tax
credit. Petitioner claimed an investment tax credit of
$1,831,825 with respect to the fuel assemblies placed in service
in 1990. Respondent disallowed petitioner’s claim for refund in
a notice of deficiency that included other adjustments.
OPINION
The issue presented is whether petitioner is entitled to an
investment tax credit with respect to the fuel assemblies that
were placed in service in 1990. Prior to 1986, an investment tax
credit was available pursuant to sections 38(b), 46, and 48 for
investments in certain types of tangible property placed in
service during the taxable year. The credit was repealed by
section 211 of the Tax Reform Act of 1986 (TRA 1986), Pub. L.
99-514, 100 Stat. 2166, which added section 49 to the Internal
Revenue Code. Section 49(a) made the investment tax credit
inapplicable to property placed in service after December 31,
1985. Because TRA 1986 did not become law until October 22,
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