Class lives for utility grading costs.Prior to the enactment of the modified accelerated cost recovery system Modified Accelerated Cost Recovery System (MACRS) A 1986 act that set out rules for the depreciation of qualifying assets, allowing for greater acceleration over longer periods of time. (MACRS See Modified Accelerated Cost Recovery System. MACRS See Modified Accelerated Cost Recovery System (MACRS). ), the Service ruled that the average useful lives for the initial clearing and grading for electric transmission lines and electric distribution lines were 84 years and 46 years, respectively. The holding was not incorporated in the MACRS asset classes. Thus, these assets were depreciated Depreciated may refer to:
The same situation existed for gas utility trunk A communications channel between two points. It generally refers to a high-bandwidth, fiber-optic line between telephone switching centers (central offices). Telephone "trunks" handle thousands of simultaneous voice and data signals, whereas telephone "lines" are the wires from the pipelines and related storage facilities. These assets were included in asset class 49.24, with a 15-year MACRS recovery period. Initial clearing and grade improvements were specifically excluded from asset class 49.24 and, thus, were not included in an asset class. As a result, such costs were recovered using a seven-year period for MACRS. New Law Under AJCA AJCA American Jobs Creation Act of 2004 (US) AJCA American Jersey Cattle Association AJCA Association of Juvenile Compact Administrators AJCA All Japan Cooks Association AJCA Alabama Junior Cattlemen’s Association Section 901, amending Sec. 168, utility clearing and grading costs incurred to locate transmission and distribution lines and pipelines are assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to the asset classes of the property to which the costs relate--in general, asset class 49.14 for electric utilities (20-year recovery period) and asset class 49.24 for gas utilities (15-year recovery period). Effective Date This provision is effective for property placed in service after Oct. 22, 2004. FROM JANE ROHRS, WASHINGTON, DC |
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