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actual construction of this property. Instead, the contract
explains how each coowner will pay for the construction, details
the management structure that the coowners will use to construct
the facility, and provides the dates when the parties plan to
operate the power plant. Subsection 3.7 describes the
“Construction and Plant Account”, which the coowners use to pay
for the construction of the plant. Subsection 3.8 provides for
the billing and payment of the construction costs. Subsections
3.12 and 5.4.2 establish the date that construction will be
completed. These terms relate to construction, but they provide
few details regarding construction. The terms concern the
coowner’s obligations and responsibilities as joint venturers.
We think that the conference report’s requirement that the
subject matter of the contract be the construction,
reconstruction, erection, or acquisition of property demands a
contract between the taxpayer and the persons who will provide
construction services or supply the property to be acquired.
Neither party to the contract in issue was the general contractor
nor was to provide labor or materials.
Because the subject matter of the contract is not the
construction, reconstruction, or acquisition of property, we find
that the joint agreement fails to satisfy the written contract
requirement of TRA section 203(b)(1)(A). Accordingly, we hold
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