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did not begin construction of the transmission line components at
issue by December 31, 1985.
We hold that petitioner is not entitled to an ITC under TRA
section 203(b)(1)(B) for the Jensen-Midway-Turnpike or the
Andytown-Lauderdale transmission lines because it failed to incur
or commit the $1 million or 5 percent of the construction costs
by December 31, 1985, and petitioner did not begin construction
of the components at issue before 1986.
4. “Backfit” Items at St. Lucie
Petitioner claims an ITC for the following “backfit” items
at the St. Lucie nuclear power plant facility: (1) The
underwater intrusion system; (2) the condensate polisher tie
line; and (3) the instrument air upgrade. Petitioner seeks an
ITC for the cost of the underwater intrusion system of $338,665
in the 1990 taxable year. Petitioner seeks an ITC for the costs
incurred for the condensate polisher tie line during the 1989 and
1990 taxable years of $3,826,317 and $388,906, respectively.
Petitioner also seeks ITCs for the costs of the instrument air
upgrade property in the 1988, 1989, and 1990 taxable years of
$1,541,721, $1,717,941, and $316,912, respectively. Petitioner
126(...continued)
gives rise to the presumption that if produced it would be
unfavorable.” Wichita Terminal Elevator Co. v. Commissioner, 6
T.C. 1158, 1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947).
Thus, we conclude that BI 634 would have shown that petitioner
began construction of the third-feeder position and the third
230-kV line at the Turnpike substation after Dec. 31, 1985.
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