80 STAT.]
PUBLIC LAW 89-800-NOV. 8, 1966
placed the plant facility in service), the taxpayer has constructed, reconstructed, or erected a plant facility, and either "(ii) the construction, reconstruction, or erection of such plant facility was commenced by the taxpayer before October 10, 1966, or "(iii) more than 50 percent of the aggregate adjusted basis of all the property of a character subject to the allowance for depreciation making up such plant facility is attributable to either property the construction, reconstruction, or erection of which was begun by the taxpayer before October 10, 1966, or property the acquisition of which by the taxpayer occurred before such date, then all section 38 property comprising such plant facility shall be treated as section 38 property which is not suspension period property. For purposes of clause (iii) of the preceding sentence, the rules of paragraphs (3) and (6) shall be applied. " (B) P L A N T FACILITY DEFINED.—For purposes of this paragraph, the term 'plant facility' means a facility which does not include any building (or of which buildings constitute an insignificant portion) and which is— " (i) a self-contained, single operating unit or processing operation, (ii) located on a single site, and "(iii) identified, on October 9, 1966, in the purchasing and internal financial plans of the taxpayer as a single unitary project. " (C) SPECIAL RULE.—For purposes of this subsection, if— " (i) a certificate of convenience and necessity has been issued before October 10, 1966, by a Federal regulatory agency with respect to two or more plant facilities which are included under a single plan of the taxpayer to construct, reconstruct, or erect such plant facilities, and "(ii) more than 50 percent of the aggregate adjusted basis of all the property of a character subject to the allowance for depreciation ma&ing up such plant facilities is attributable to either property the construction, reconstruction, or erection of which was begun by the taxpayer before October 10, 1966, or property the acquisition of which by the taxpayer occurred before such date, such plant facilities shall be treated as a single plant facility. " (D)
COMMENCEMENT OF CONSTRUCTION.—For purposes of
subparagraph (A) ( i i), the construction, reconstruction, or erection of a plant facility shall not be considered to have commenced until construction, reconstruction, or erection has commenced at the site of such plant facility. The preceding sentence shall not apply if the site of such plant facility is not located on land. "(6) MACHINERY OR EQUIPMENT RULE.—Any piece of machinery or equipment— " (A) more than 50 percent of the parts and components of which (determined on the basis of cost) were held by the taxpayer on October 9, 1966, or are acquired by the taxpayer pursuant to a binding contract which was in effect on such date, for inclusion or use in such piece of machinery or equipment, and
1509
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