HomeMy WebLinkAbout2128 or manufacturing plants to the extent t?~at the interest thereon
is exempt from incorle taxes under the then existing laws of the
United States when the revenue bonds are payable solely from
revenu~ derivec?~from the sale, operation or leasing of the projects.
(d) Paragranh (1) of Section 103(c) of the Internal Revenue
Code of 1954, as amended, which makes the interest on industrial
develoPr.~ent bonds (as therein defined) subject to Federal income ~
taxes provides in Section 103(c)(4~(F) that sa?d parayranh (1) shall
not ap~ly to any obligation which is issued as part of an issue
substantially all of the ~roceeds of which are to be used to
provide air or water pollution control facilities. ~
(e) Regulation Section 1.103-8(a)(5) of the Department of
the Treasury provides in effect that for the purposes of Section
103(c)(4)(F) a facility is a pollution control facility if the
construction, reconstruction or acquisition of a facility cor.tmences '
before Septer,~aer 2, 1972, if a bond resolution with respect to
obligations to ~rovide such facility had been adopted by, or some
other official action toward the issuance of obligations to provide
i such facility had been taken by the issuer of such obligations
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; prior to the date the entire facility-is placed in service and the '
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~ Company (liereinafter defined) comrtenced the construction and
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~ acquisition of the Project (hereinafter defined) before September 2,
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~ 1972.
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~ (f) Regulation Section 1.103-8(g) of the Department of the
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~ Treasury provides that for the purposes of Section 103(c)(4)(F)
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~ property is a pollution control facility only if "
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1 (i) it is pronerty to be used, in whole or in part
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" to ahate or control water or atmospheric pollution or ~
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; contariination by removing, altering, dis~osing or storing
v; pollutants, contaninants, wastes or heat and in the case
~ of water pollution control incluc'.es the necessary inter-
~v; ceptin~ sewers, pur~ping, pok~er and other equipment and
- their appurtenances,
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