Electric transmission and distribution repairs: keeping the lights on
Electric utilities incur substantial expenditures to keep their network assets running and the treatment of these large expenditures has been the subject of much controversy with the IRS. To help resolve the controversy, the Treasury and IRS recently issued a safe harbor method of accounting for determining whether expenditures must be capitalized under § 263(a) or are deductible under § 162. The safe harbor provided in Rev. Proc. 2011-43 defines the units of property for the linear and non-linear network assets and provides a bright line rule for repairs to linear property. We’ll discuss both the technical application and practical implementation of the new safe harbor and provide some highlights regarding the forthcoming temporary and/or proposed tangible property ("repairs") regulations.
Please join us for a 90-minute webcast on Tuesday, 4 October at 1:00 p.m. EDT as our panel addresses these issues and more.
Mark Heinemann, Founder, PowerPlan Consultants
Susan Grais, Federal Tax Services, Ernst & Young LLP
Sharon Kay, Federal Tax Services, Ernst & Young LLP
Andy Miller, Director of Industry Tax Services, Ernst & Young LLP
Audience participants are encouraged to ask questions throughout the webcast.