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that petitioner is not entitled to ITCs for the SJRPP property
constructed pursuant to the joint agreement.
D. TRA Section 203(b)(1)(B)--“Self-Constructed Property”
Section 49(e) and TRA section 203(b)(1)(B) provide taxpayers
with relief from the ITC repeal for “self-constructed property”.
Specifically, TRA section 203(b)(1)(B) provides relief for:
(B) property which is constructed or reconstructed
by the taxpayer if--
(i) the lesser of (I) $1,000,000, or
(II) 5 percent of the cost of such property
has been incurred or committed by * * *
[December 31, 1985] March 1, 1986,[115] and
(ii) the construction or reconstruction
of such property began by such date, * * *
The repeal of the ITC does not apply to “transition
property”. Sec. 49(b)(1). As a subcategory of “transition
property”, self-constructed property, falls within the types of
property excepted from the ITC repeal. Sec. 49(e)(1); TRA sec.
203(b)(1)(B). TRA section 203(b)(1)(B) begins by providing that
it encompasses “property which is constructed or reconstructed by
the taxpayer”. (Emphasis added.) Neither the statute nor the
regulations define property for purposes of the ITC. Consumers
Power Co. v. Commissioner, 89 T.C. 710, 725 (1987). The
definition of property is crucial because it provides the basis
for analyzing the requirements set forth in TRA section
115 See supra note 99.
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