- 128 -
that the only effect of subsection (C)(ii) of �
203(b)(2) is to make applicable to eligible property
with a class life of more than 7 years the required
service date applicable to property with a class life
of 20 years or more--January 1, 1991.
5 Airborne's eligibility for credits under � 49(e)
is not in issue, because this appeal concerns only
property placed in service in 1989 and 1990, well after
the dates required by � 49(e) for property having a
class life of less than 7 years.
6 Airborne contends that � 49(e)(1)(C) would still
have a function because it could apply to the different
type of transition property described in � 203(b)(1).
But � 203(b)(1), like � 204(a), is rendered
inapplicable by � 203(b)(2)(A) to property with a class
life of less than 7 years. There is no reason why �
49(e)(1)(C) should be effective in one context but not
in another, when both are governed by the same clause
of � 203(b)(2)(A).
See also United States v. Kjellstrom, 916 F. Supp. 902 (W.D. Wis.
1996).
We apply the analysis of the Court of Appeals, and hold that
TRA section 203(b)(2)(A) precludes any ITC for the nuclear fuel
assemblies that petitioner placed in service in 1988, 1989, and
1990.107
2. Are the Southern Company Contracts TRA
Section 204(a)(3) Supply or Service Contracts?
Petitioner seeks ITCs for equipment related to the Southern
company contracts. Petitioner contends that the Southern company
contracts constitute TRA section 204(a)(3) supply contracts and
107 Petitioner cannot claim an ITC for 1988, 1989, and 1990
under sec. 49(e)(1)(C). Transitional relief pursuant to sec.
49(e)(1)(C) applies only to property placed in service before
Jan. 1, 1987.
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