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48(a)(1) and (a)(2)(A). The energy property must be depreciable,
which requires that the property be used in a trade or business
or held for the production of income. Secs. 48(a)(3)(A)(i), (C),
176(a).
A trust is eligible for the energy credit if it places
qualifying energy property in service during the taxable year.
The trust must apportion its basis in the qualifying energy
property among itself and its beneficiaries. Secs. 38(a),
(c)(3)(D), 46(2), 48(a)(1). Although there is no current
provision in the Code that governs the apportionment of an
investment in energy property among a trust and its
beneficiaries, section 50(d)5 refers taxpayers to specific
provisions in effect prior to the enactment of OBRA. One of
those provisions, section 48(f)6 (as in effect on the day before
5Sec. 50(d) provides: “For purposes of * * * [secs. 46, 48,
and 50], rules similar to the rules of the following provisions
(as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990) shall apply: * * * (6)
Section 48(f) (relating to certain estates and trusts).”
(Emphasis added.)
6Sec. 48(f) (as in effect on the day before the enactment of
OBRA) provides:
SEC. 48(f). Estates and Trusts.--In the case of an
estate or trust--
(1) the qualified investment for any taxable
year shall be apportioned between the * * * trust
and the beneficiaries on the basis of the income
of the * * * trust allocable to each, and
(continued...)
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