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makes no argument that these backfit items qualify as self-
constructed property independently from St. Lucie Units 1 and 2.
Respondent argues that FPL satisfies the requirements of TRA
section 203(b)(1)(B) only by “bootstrapping” these items to St.
Lucie Units 1 and 2.
a. Underwater Intrusion System
In arguing that the underwater intrusion system qualifies
for the self-constructed property transitional rule, petitioner
relies on Steelcase, Inc. v. United States, 76 AFTR 2d 5185, 95-2
USTC par. 50,336 (W.D. Mich. 1995). In Steelcase, the taxpayer
began building its “Corporate Development Center” in October
1985. Id. On December 13, 1985, the taxpayer temporarily
stopped construction to redesign the shape of the building. Id.
The taxpayer continued construction using a new design on April
7, 1986. Id. The court found that the taxpayer was entitled to
an ITC under the self-constructed property rule, reasoning that
the self-constructed property rule does not prohibit the taxpayer
from making modifications. Id. While the binding contract rule
and the equipped-building rules specifically forbid taxpayers
from making substantial modifications after the transition date,
the self-constructed property rule does not include a similar
restriction. Id. By failing to include this language, Congress
chose not to limit modifications under the self-constructed
property rule. Id.
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