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(b) Amount of investment credit and retail enterprise credit.
(1) Amount of investment credit.
(i) The amount of investment credit which a taxpayer is allowed is a percentage of the cost or other basis, for Federal income tax purposes, of qualified property acquired, constructed, reconstructed or erected. Such percentage is determined in accordance with the following table and the provisions of subparagraph (ii) of this paragraph:
(ii) When the acquisition, construction, reconstruction or erection of qualified property is commenced in any one period set forth in subparagraph (i) of this paragraph and continued or completed in any subsequent period set forth in such subparagraph, the allowable investment credit is the sum of the credits allowable for each such period. The allowable investment credit for each period is determined by the following formula:
(iii)
(a) With respect to qualified property which is depreciable pursuant to section 167 of the Internal Revenue Code and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is the total number of months of useful life of the property.
(b) Except with respect to that qualified property referred to in clause ( d ) of this subparagraph (a building or a structural component of a building), with respect to qualified property which is three-year property (as defined in section 168[c][2] of the Internal Revenue Code) and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is 36.
(c) Except with respect to that qualified property referred to in clause ( d ) of this subparagraph (a building or a structural component of a building), with respect to qualified property which is 5-year property, 10-year property and 15-year real property (as defined in section 168[c][2] of the Internal Revenue Code) and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is 60.
(d) With respect to any recovery property to which section 168 of the Internal Revenue Code applies, which is a building or a structural component of a building and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.
(e) For recomputation of investment credit on property that is disposed of or that ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(1) of this section.
(i) The amount of investment credit which a taxpayer is allowed is a percentage of the cost or other basis, for Federal income tax purposes, of qualified property acquired, constructed, reconstructed or erected. Such percentage is determined in accordance with the following table and the provisions of subparagraph (ii) of this paragraph:
(ii) When the acquisition, construction, reconstruction or erection of qualified property is commenced in any one period set forth in subparagraph (i) of this paragraph and continued or completed in any subsequent period set forth in such subparagraph, the allowable investment credit is the sum of the credits allowable for each such period. The allowable investment credit for each period is determined by the following formula:
(iii)
(a) With respect to qualified property which is depreciable pursuant to section 167 of the Internal Revenue Code and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is the total number of months of useful life of the property.
(b) Except with respect to that qualified property referred to in clause ( d ) of this subparagraph (a building or a structural component of a building), with respect to qualified property which is three-year property (as defined in section 168[c][2] of the Internal Revenue Code) and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is 36.
(c) Except with respect to that qualified property referred to in clause ( d ) of this subparagraph (a building or a structural component of a building), with respect to qualified property which is 5-year property, 10-year property and 15-year real property (as defined in section 168[c][2] of the Internal Revenue Code) and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is 60.
(d) With respect to any recovery property to which section 168 of the Internal Revenue Code applies, which is a building or a structural component of a building and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.
(e) For recomputation of investment credit on property that is disposed of or that ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(1) of this section.
(a) With respect to qualified property which is depreciable pursuant to section 167 of the Internal Revenue Code and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is the total number of months of useful life of the property.
(b) Except with respect to that qualified property referred to in clause ( d ) of this subparagraph (a building or a structural component of a building), with respect to qualified property which is three-year property (as defined in section 168[c][2] of the Internal Revenue Code) and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is 36.
(c) Except with respect to that qualified property referred to in clause ( d ) of this subparagraph (a building or a structural component of a building), with respect to qualified property which is 5-year property, 10-year property and 15-year real property (as defined in section 168[c][2] of the Internal Revenue Code) and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is 60.
(d) With respect to any recovery property to which section 168 of the Internal Revenue Code applies, which is a building or a structural component of a building and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the investment credit is to be taken, an investment credit will be allowed for the period the property was in qualified use. The amount of the investment credit which will be allowed is that portion of the investment credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property was in qualified use and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.
(e) For recomputation of investment credit on property that is disposed of or that ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(1) of this section.
(2) Amount of retail enterprise credit.
(i) The amount of retail enterprise credit which a taxpayer is allowed is a percentage of qualified rehabilitation expenditures attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise. Such percentage is determined in accordance with the following table:
(ii) The amount of qualified rehabilitation expenditures to be used in computing the retail enterprise credit is determined by adding:
(a) the portion of such expenditures directly attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise; and
(b) the portion of such expenditures indirectly attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise determined by multiplying:
(1) the qualified rehabilitation expenditures such as a new roof, heating system or aluminum siding, equally attributable to all areas of the qualified rehabilitated building; by
(2) a fraction, the numerator of which is the total square feet of area of that part of the qualified rehabilitated building employed by the taxpayer in the retail sales activity and the denominator of which is the total square feet of area of the entire qualified rehabilitated building.
(iii)
(a) With respect to a qualified rehabilitated building which is depreciable pursuant to section 167 of the Internal Revenue Code, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months of useful life of the property.
(b) With respect to any recovery property to which section 168 of the Internal Revenue Code applies which is a qualified rehabilitated building, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.
(c) For recomputation of the retail enterprise credit on property that is disposed of or that otherwise ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(2) of this section.
(i) The amount of retail enterprise credit which a taxpayer is allowed is a percentage of qualified rehabilitation expenditures attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise. Such percentage is determined in accordance with the following table:
(ii) The amount of qualified rehabilitation expenditures to be used in computing the retail enterprise credit is determined by adding:
(a) the portion of such expenditures directly attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise; and
(b) the portion of such expenditures indirectly attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise determined by multiplying:
(1) the qualified rehabilitation expenditures such as a new roof, heating system or aluminum siding, equally attributable to all areas of the qualified rehabilitated building; by
(2) a fraction, the numerator of which is the total square feet of area of that part of the qualified rehabilitated building employed by the taxpayer in the retail sales activity and the denominator of which is the total square feet of area of the entire qualified rehabilitated building.
(a) the portion of such expenditures directly attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise; and
(b) the portion of such expenditures indirectly attributable to that part of a qualified rehabilitated building employed by the taxpayer in the retail sales activity of the retail enterprise determined by multiplying:
(1) the qualified rehabilitation expenditures such as a new roof, heating system or aluminum siding, equally attributable to all areas of the qualified rehabilitated building; by
(2) a fraction, the numerator of which is the total square feet of area of that part of the qualified rehabilitated building employed by the taxpayer in the retail sales activity and the denominator of which is the total square feet of area of the entire qualified rehabilitated building.
(1) the qualified rehabilitation expenditures such as a new roof, heating system or aluminum siding, equally attributable to all areas of the qualified rehabilitated building; by
(2) a fraction, the numerator of which is the total square feet of area of that part of the qualified rehabilitated building employed by the taxpayer in the retail sales activity and the denominator of which is the total square feet of area of the entire qualified rehabilitated building.
(iii)
(a) With respect to a qualified rehabilitated building which is depreciable pursuant to section 167 of the Internal Revenue Code, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months of useful life of the property.
(b) With respect to any recovery property to which section 168 of the Internal Revenue Code applies which is a qualified rehabilitated building, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.
(c) For recomputation of the retail enterprise credit on property that is disposed of or that otherwise ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(2) of this section.
(a) With respect to a qualified rehabilitated building which is depreciable pursuant to section 167 of the Internal Revenue Code, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months of useful life of the property.
(b) With respect to any recovery property to which section 168 of the Internal Revenue Code applies which is a qualified rehabilitated building, and which is disposed of or otherwise ceases to qualify for the retail enterprise credit prior to the end of the taxable year in which such credit is to be taken, a retail enterprise credit will be allowed for the period the property qualified for such credit. The amount of the retail enterprise credit which will be allowed is that portion of the retail enterprise credit attributable to such property which would have been allowed, multiplied by a fraction, the numerator of which is the total number of months the property qualified for such credit and the denominator of which is the total number of months over which the taxpayer chooses to deduct the property under section 168 of the Internal Revenue Code.
(c) For recomputation of the retail enterprise credit on property that is disposed of or that otherwise ceases to qualify after the end of the taxable year in which such credit was taken, see paragraph (i)(2) of this section.