Publication 535 |
2001 Tax Year |
Pollution Control Facilities
You can choose to amortize over 60 months the cost of a certified
pollution control facility.
Certified pollution control facility.
A certified pollution control facility is a new identifiable
treatment facility used, in connection with a plant or other property
in operation before 1976, to reduce or control water or atmospheric
pollution or contamination. The facility must do so by removing,
changing, disposing, storing, or preventing the creation or emission
of pollutants, contaminants, wastes, or heat. The facility must be
certified by state and federal certifying authorities.
The facility must not significantly increase the output or
capacity, extend the useful life, or reduce the total operating costs
of the plant or other property. Also, it must not significantly change
the nature of the manufacturing or production process or facility.
The federal certifying authority will not certify your property to
the extent it appears you will recover (over the property's useful
life) all or part of its cost from the profit based on its operation
(such as through sales of recovered wastes). The federal certifying
authority will describe the nature of the potential cost recovery. You
must then reduce the amortizable basis of the facility by this
potential recovery.
New identifiable treatment facility.
A new identifiable treatment facility is tangible depreciable
property that is identifiable as a treatment facility. It does not
include a building and its structural components unless the building
is exclusively a treatment facility.
Basis reduction for corporations.
A corporation must reduce the amortizable basis of a pollution
control facility by 20% before figuring the amortization deduction.
More information.
For more information on the amortization of pollution control
facilities, see section 169 of the Internal Revenue Code and the
related regulations.
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