Reg. § 12.3 Investment credit, public utility property elections.
(a) Elections
(1) In general Under section , three elections may be made on or before March 9, 1972, with respect to section property (as defined in subparagraph (3) of this paragraph). An election made under the provisions of section shall be irrevocable.
(2) Applicability of elections
(i) Any election under section shall be made with respect to all of the taxpayer's property eligible for the election whether or not the taxpayer is regulated by more than one regulatory body.
(ii)
(a) Paragraph (1) of section shall apply to all of the taxpayer's section property in the absence of an election under paragraph (2) or (3) of section . If an election is made under paragraph (2) of section , paragraph (1) of such section shall not apply to any of the taxpayer's section property.
(b) An election made under the last sentence of section shall apply to that portion of the taxpayer's section property to which paragraph (1) of section applies and which is short supply property within the meaning of (Income Tax Regulations) as set forth in a notice of proposed rule making published in 37 FR 3526 on February 17, 1971.
(iii) If a taxpayer makes an election under paragraph (2) of section , and makes no election under paragraph (3) of such section, the election under paragraph (2) of section shall apply to all of its section property.
(iv) If a taxpayer makes an election under paragraph (3) of section , such election shall apply to all of the taxpayer's section property to which section applies. Paragraph (1) or (2) of section (as the case may be) shall apply to that portion of the taxpayer's section property which is not property to which section applies. Thus, for example, if a taxpayer makes an election under paragraph (2) of section , and also makes an election under paragraph (3) of section , paragraph (3) shall apply to all of the taxpayer's section property to which section applies and paragraph (2) shall apply to the remainder of the taxpayer's section property.
(3) Section 46(e) property “Section property” is section property which is both property described in section and is—
(i) Public utility property within the meaning of section (other than nonregulated communication property of the type described in the last sentence of section ), or
(ii) Property used predominantly in the trade or business of the furnishing or sale of
(a) steam through a local distribution system or
(b) the transportation of gas or steam by pipeline, if the rates for such furnishing or sale are established or approved by a governmental unit, agency, instrumentality, or commission described in section .
(b) Method of making elections A taxpayer may make the elections described in section by filing a statement, on or before March 9, 1972, with the district director or director of the internal revenue service center with whom the taxpayer ordinarily files its income tax return. For rules in the case of taxpayers filing consolidated returns, see (Income Tax Regulations). Such statement shall contain the following information:
(1) The name, address, and taxpayer identification number of the taxpayer,
(2) The paragraph (or paragraphs) of section under which the taxpayer is making the election,
(3) If an election is made under the last sentence of section , the name and address of all regulatory bodies which have jurisdiction over the taxpayer with respect to the section property covered by such election and a statement setting forth the type of the public utility activity described in section in which the taxpayer engages, and
(4) If an election is made under paragraph (3) of section , a statement indicating whether an election has been made by the taxpayer under section .
[T.D. 7161, 37 FR 3511, Feb. 17, 1972]