Expenditure rule
An amount meets the requirements of this paragraph if—
(A)#
an amount equal to such amount is expended for the acquisition or construction of tangible property described in section 1231(b)—
(i) which is the property for which the contribution was made or is of the same type as such property, and
(ii) which is used predominantly in the trade or business of furnishing water or sewerage disposal services,
(A)(i)#
which is the property for which the contribution was made or is of the same type as such property, and
(A)(ii)#
which is used predominantly in the trade or business of furnishing water or sewerage disposal services,
(B)#
the expenditure referred to in subparagraph (A) occurs before the end of the second taxable year after the year in which such amount was received, and
(C)#
accurate records are kept of the amounts contributed and expenditures made, the expenditures to which contributions are allocated, and the year in which the contributions and expenditures are received and made.