- 133 -
not identify the future replacement property, nor specifications
and amount of replacement property from the pertinent documents.
Id. at 16. In holding against the taxpayer, the court stated
that its decision was consistent with the reasoning of other
courts that have interpreted the same provision. See Bell Atl.
Corp. v. United States, 224 F.3d at 225; S. Multi-Media Commcns.,
Inc. v. Commissioner, 113 T.C. at 419; United States v. Zeigler
Coal Holding Co., 934 F. Supp. at 294-295. Generally, those
cases held that the contract must contain more than a casual link
to the property purchased to qualify for transition relief. Bell
Atl. Corp. v. United States, supra; S. Multi-Media Commcns., Inc.
v. Commissioner, supra at 421-422; see also United States v.
Zeigler Coal Holding Co., supra at 295.
We believe that only the equipment that is readily
identifiable from the language of the amendment to the Southern
company contracts should qualify for transition relief. See
supra p. 131 (quoting amendment to power sales agreement, par.
4.3). Paragraph 4.3 of the amendment specifically identifies the
following property:
(i) a 500 kV transmission line from its Duval
Substation to its Rice Substation continuing to its
Poinsett Substation, (ii) a separate 500 kV
transmission line from its Duval Substation to its
Poinsett Substation, and (iii) a 500 kV transmission
line from its Poinsett Substation to its Martin
Substation. * * *
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