Common use of Placed In Service Clause in Contracts

Placed In Service. (i) Property shall be considered as placed in service at the time the property is placed in a condition or state of readiness and availability for a specifically assigned function. If an entire facility is leased under one lease, property which is part of the facility will not be considered placed in service under this rule until the entire facility is placed in service. If the lessee claims any investment tax credit or ACRS deductions with respect to any component which is part of an entire facility that is subsequently leased, the lessee must file an amended return within the time prescribed in paragraph (b)(2)(ii) of this section in which it foregoes its claim to the in- vestment tax credit and ACRS deduc- tions. If such amended return may not be filed because the time for filing a claim for refund with respect to any component under section 6511 has ex- pired, each component of the facility will be considered as placed in service at the time the individual component is placed in a condition or state of readiness and availability for a specifi- xxxxx assigned function and not when the entire facility is placed in service. (ii) For purposes other than deter- mining whether property is qualified leased property, property subject to a lease under section 168(f)(8) will be deemed to have been placed in service not earlier than the date such property is used under the lease. If the lessee claims any investment tax credit or ACRS deductions with respect to prop- erty placed in service under a lease, the lessee must file an amended return within 3 months following the execu- tion of the lease agreement in which the lessee foregoes its claim to the in- vestment tax credit and ACRS deduc- tions with respect to the leased prop- erty or the election under section 168(f)(8) will be void. (iii) The application of this para- graph (b)(2) may be illustrated by the following examples:

Placed In Service. (i) Property shall be considered as placed in service at the time the property is placed in a condition or state of readiness and availability for a specifically assigned function. If an entire facility is leased under one lease, property which is part of the facility will not be considered placed in service under this rule until the entire facility is placed in service. If the lessee claims any investment tax credit or ACRS deductions with respect to any component which is part of an entire facility that is subsequently leased, the lessee must file an amended return within the time prescribed in paragraph (b)(2)(ii) of this section in which it foregoes its claim to the in- vestment tax credit and ACRS deduc- tions. If such amended return may not be filed because the time for filing a claim for refund with respect to any component under section 6511 has ex- pired, each component of the facility will be considered as placed in service at the time the individual component is placed in a condition or state of readiness and availability for a specifi- xxxxx cally assigned function and not when the entire facility is placed in service. (ii) For purposes other than deter- mining whether property is qualified leased property, property subject to a lease under section 168(f)(8) will be deemed to have been placed in service not earlier than the date such property is used under the lease. If the lessee claims any investment tax credit or ACRS deductions with respect to prop- erty placed in service under a lease, the lessee must file an amended return within 3 months following the execu- tion of the lease agreement in which the lessee foregoes its claim to the in- vestment tax credit and ACRS deduc- tions with respect to the leased prop- erty or the election under section 168(f)(8) will be void. (iii) The application of this para- graph (b)(2) may be illustrated by the following examples: