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TITLE 26-INTERNAL REVENUE CODE [(g) Repealed. Pub. L. 88-272, title II, § 203(a)(1), Feb. 26, 1964, 78 Stat. 33] (h) Suspension of investment credit For purposes of this subpart- (1) General rule Section 38 property which is suspension period property shall not be treated as new or used section 38 property. (2) Suspension period property defined Except as otherwise provided in this subsec- tion and subsection (i), the term "suspension period property" means section 38 property- (A) the physical construction, reconstruc- tion, or erection of which (i) is begun during the suspension period, or (ii) is begun, pur- suant to an order placed during such period, before May 24, 1967, or (B) which (i) is acquired by the taxpayer during the suspension period, or (ii) is ac- quired by the taxpayer, pursuant to an order placed during such period, before May 24, 1967. In applying subparagraph (A) to any section 38 property, there shall be taken into account only that portion of the basis which is proper- ly attributable to construction, reconstruc- tion, or erection before May 24, 1967. (3) Binding contracts To the extent that any property is con- structed, reconstructed, erected, or acquired pursuant to a contract which was, on October 9, 1966, and at all times thereafter, binding on the taxpayer, such property shall not be deemed to be suspension period property. (4) Equipped building rule If- (A) pursuant to a plan of the taxpayer in existence on October 9, 1966 (which plan was not substantially modified at any time after such date and before the taxpayer placed the equipped building in service), the taxpayer has constructed, reconstructed, erected, or acquired a building and the ma- chinery and equipment necessary to the planned use of the building by the taxpay- er, and (B) more than 50 percent of the aggregate adjusted basis of all the property of a char- acter subject to the allowance for depreci- ation making up such building as so equipped is attributable to either property the construction, reconstruction, or erection of which was begun by the taxpayer before October 10, 1966, or property the acquisi- tion of which by the taxpayer occurred before such date, then all section 38 property comprising such building as so equipped (and any incidental section 38 property adjacent to such building which is necessary to the planned use of the building) shall be treated as section 38 prop- erty which is not suspension period property. For purposes of subparagraph (B) of the pre- ceding sentence, the rules of paragraphs (3) and (6) shall be applied. For purposes of this paragraph, a special purpose structure shall be treated as a building. (5) Plant facility rule (A) Genera! rule If- (i) pursuant to a plan of the taxpayer in existence on October 9, 1966 (which plan was not substantially modified at any time after such date and before the tax- payer placed the plant facility in service), the taxpayer has constructed, recon- structed, or erected a plant facility, and either (ii) the construction, reconstruction, or erection of such plant facility was com- menced by the taxpayer before October 10, 1966, or (il) more than 50 percent of the aggre- gate adjusted basis of all the property of a character subject to the allowance for de- preciation making up such plant facility is attributable to either property the con- struction, reconstruction, or erection of which was begun by the taxpayer before October 10, 1966, or property the acquisi- tion of which by the taxpayer occurred before such date, then all section 38 property comprising such plant facility shall be treated as sec- tion 38 property which is not suspension period property. For purposes of clause (ill) of the preceding sentence, the rules of para- graphs (3) and (6) shall be applied. (B) Plant facility defined For purposes of this paragraph, the term "plant facility" means a facility which does not include any building (or of which build- ings 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 ne- cessity 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 (i1) more than 50 percent of the aggre- gate adjusted basis of all the property of a character subject to the allowance for de- preciation making up such plant facilities is attributable to either property the con- struction, reconstruction, or erection of which was begun by the taxpayer before October 10, 1966, or property the acquisi- tion 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)(ii), the construction, reconstruction, or erection of a plant facility shall not be considered to have commenced until construction, recon- Page 72