§ 169. Amortization of pollution control facilities

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1969

   Tax Reform Act of 1969

   Pub. L. 91–172 title VII § 704(a) · 83 Stat. 487

   Enacted · 26 U.S.C. § 169

   Added Pub. L. 91–172, title VII, § 704(a), Dec. 30, 1969, 83 Stat. 667

   Source evidence

   Code source credit
   Added Pub. L. 91–172, title VII, § 704(a), Dec. 30, 1969, 83 Stat. 667

   Enacted provision · exact public law section
   (a) Allowance.— Part VI of subchapter B of chapter 1 (relating 68A Stat. 45. Post, pp. 670–674. 26 USC 161–187. to itemized deductions for individuals and corporations) is amended by striking out section 169 and inserting in lieu thereof the following new section: “SEC. 169. AMORTIZATION OF POLLUTION CONTROL FACILITIES. “(a) Allowance of Deduction.— Every person, at his election, shall be entitled to a deduction with respect to the amortization of the amortizable basis of any certified pollution control facility (as defined in subsection (d), based on a period of 60 months. Such amortization deduction shall be an amount, with respect to each month of such period within the taxable year, equal to the amortizable basis of the pollution control facility at the end of such month divided by the number of months (including the month for which the deduction is computed) remaining in the period. Such amortizable basis at the end of the month shall be computed without regard to the amortization deduction for such month. The amortization deduction provided by this section with respect to any month shall be in lieu of the depreciation deduction with respect to such pollution control facility for such month provided by section 167. The 60-month period shall begin, as to Ante, p. 649. 26 USC 167. any pollution control facility, at the election of the taxpayer, with the month following the month in which such facility was completed or acquired, or with the succeeding taxable year. “(b) Election of Amortization.— The election of the taxpayer to take the amortization deduction and to begin the 60-month period with the month following the month in which the facility is completed or acquired, or with the taxable year succeeding the taxable year in which such facility is completed or acquired, shall be made by filing with the Secretary or his delegate, in such manner, in such form, and within such time, as the Secretary or his delegate may by regulations prescribe, a statement of such election. “(c) Termination of Amortization Deduction.— A taxpayer which has elected under subsection (b) to take the amortization deduction provided in subsection (a) may, at any time after making such election, discontinue the amortization deduction with respect to the remainder of the amortization period, such discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice in writing filed with the Secretary or his delegate before the beginning of such month. The depreciation deduction provided under section 167 shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the taxpayer shall not be entitled to any further amortization deduction under this section with respect to such pollution control facility. “(d) Definitions.— For purposes of this section— “(1) Certified pollution control facility.— The term ‘certified pollution control facility’ means a new identifiable treatment facility which is used, in connection with a plant or other property in operation before January 1, 1969, to abate or control water or atmospheric pollution or contamination by removing, altering, disposing, or storing of pollutants, contaminants, wastes, or heat and which— “(A) the State certifying authority having jurisdiction with respect to such facility has certified to the Federal certifying authority as having been constructed, reconstructed, erected, or acquired in conformity with the State program or requirements for abatement or control of water or atmospheric pollution or contamination; and “(B) the Federal certifying authority has certified to the Secretary or his delegate (i) as being in compliance with the applicable regulations of Federal agencies and (ii) as being in furtherance of the general policy of the United States for cooperation with the States in the prevention and abatement of water pollution under the Federal Water Pollution Control 70 Stat. 498; 80 Stat. 1246. Act, as amended (33 U.S.C. 466 et seq.), or in the prevention and abatement of atmospheric pollution and contamination under the Clean Air Act, as amended (42 U.S.C. 81 Stat. 485. 1857 et seq.). “(2) State certifying authority.— The term ‘State certifying authority’ means, in the case of water pollution, the State water pollution control agency as defined in section 13(a) of the 33 USC 466j. Federal Water Pollution Control Act and, in the case of air pollution, the air pollution control agency as defined in section 42 USC 1857h. 302(b) of the Clean Air Act. The term ‘State certifying authority’ includes any interstate agency authorized to act in place of a certifying authority of the State. “(3) Federal certifying authority.— The term ‘Federal certifying authority’ means, in the case of water pollution, the Secretary of the Interior and, in the case of air pollution, the Secretary of Health, Education, and Welfare. “(4) New identificable treatment facility.— For purposes of paragraph (1), the term ‘new identifiable treatment facility’ includes only tangible property (not including a building and its structural components, other than a building which is exclusively a treatment facility) which is of a character subject Ante, p. 649. 26 USC 167. to the allowance for depreciation provided in section 167, which is identifiable as a treatment facility, and which— “(A) is property— “(i) the construction, reconstruction, or erection of which is completed by the taxpayer after December 31, 1968, or “(ii) acquired after December 31, 1968, if the original use of the property commences with the taxpayer and commences after such date, and “(B) is placed in service by the taxpayer before January 1, 1975. In applying this section in the case of property described in clause (i) of subparagraph (A), there shall be taken into account only that portion of the basis which is properly attributable to construction, reconstruction, or erection after December 31, 1968. “(e) Profitmaking Abatement Works, Etc.— The Federal certifying authority shall not certify any property under subsection (d)(1)(B) to the extent it appears that by reason of profits derived through the recovery of wastes or otherwise in the operation of such property, its costs will be recovered over its actual useful life. “(f) Amortizable Basis.— “(1) Defined.— For purposes of this section, the term ‘amortizable basis’ means that portion of the adjusted basis (for determining gain) of a certified pollution control facility which may be amortized under this section. “(2) Special rules.— “(A) If a certified pollution control facility has a useful life (determined as of the first day of the first month for which a deduction is allowable under this section) in excess of 15 years, the amortizable basis of such facility shall be equal to an amount which bears the same ratio to the portion of the adjusted basis of such facility, which would be eligible for amortization but for the application of this subparagraph, as 15 bears to the number of years of useful life of such facility. “(B) The amortizable basis of a certified pollution control facility with respect to which an election under this section is in effect shall not be increased, for purposes of this section, for additions or improvements after the amortization period has begun. “(g) Depreciation Deduction.— The depreciation deduction provided by section 167 shall, despite the provisions of subsection (a), be Ante, p. 649. 26 USC 167. allowed with respect to the portion of the adjusted basis which is not the amortizable basis. “(h) Investment Credit Not To Be Allowed.— In the case of any property with respect to which an election has been made under subsection (a), so much of the adjusted basis of the property as (after the application of subsection (f)) constitutes the amortizable basis for purposes of this section shall not be treated as section 38 property within the meaning of section 48(a). 76 Stat. 967. “(i) Life Tenant and Remainderman.— In the case of property held by one person for life with remainder to another person, the deduction under this section shall be computed as if the life tenant were the absolute owner of the property and shall be allowable to the life tenant. “(j) Cross Reference.— “For special rule with respect to certain gain derived from the disposition of property the adjusted basis of which is determined with regard to this section, see section 1245.”

2. 1971

   Revenue Act of 1971

   Pub. L. 92–178 title I § 104(f)(2) · 85 Stat. 494

   Struck · 26 U.S.C. § 169(h)

   Pub. L. 92–178 struck out provision that investment credit not be allowed. See section 48(a)(8) of this title

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 92–178 struck out provision that investment credit not be allowed. See section 48(a)(8) of this title.

   Enacted provision · exact public law section
   (2) Conforming amendment— Section 169 (relating to amortization of pollution control facilities) is amended by striking out subsection (h).

3. 1975

   Pub. L. 93–625 § 3(a) · 88 Stat. 2108

   Substituted · 26 U.S.C. § 169(d)(4)(B)

   Pub. L. 93–625 substituted “January 1, 1976” for “January 1, 1975”

   Source evidence

   Code amendment note
   Subsec. (d)(4)(B). Pub. L. 93–625 substituted “January 1, 1976” for “January 1, 1975”.

   Enacted provision · exact public law section
   (a) Pollution Control Facilities.— Section 169(d)(4)(B) 26 USC 169. (defining new identifiable treatment facility) is amended by striking out “January 1, 1915” and inserting in lieu thereof “January 1, 1976”.

4. 1976

   Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 169(b); 26 U.S.C. § 169(c)

   Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

   Source evidence

   Code amendment note
   Subsecs. (b), (c). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

5. 1976

   Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

   1. Substituted · 26 U.S.C. § 169(d)(1)

      Pub. L. 94–455, §§ 1906(b)(13)(A), 2112(b), substituted in provisions preceding subpar. (A) “January 1, 1976,” for “January 1, 1969,”

   2. Substituted · 26 U.S.C. § 169(d)(1)

      Pub. L. 94–455, §§ 1906(b)(13)(A), 2112(b), substituted in provisions preceding subpar. (A) “storing, or preventing the creation or emission of” for “or storing”

   3. Struck · 26 U.S.C. § 169(d)(1)

      Pub. L. 94–455, §§ 1906(b)(13)(A), 2112(b), struck out in subpar. (B) “or his delegate” after “Secretary”

   4. Added · 26 U.S.C. § 169(d)(1)

      Pub. L. 94–455, §§ 1906(b)(13)(A), 2112(b), added subpar. (C)

   Source evidence

   Code amendment note
   Subsec. (d)(1). Pub. L. 94–455, §§ 1906(b)(13)(A), 2112(b), substituted in provisions preceding subpar. (A) “January 1, 1976,” for “January 1, 1969,” and “storing, or preventing the creation or emission of” for “or storing”, struck out in subpar. (B) “or his delegate” after “Secretary”, and added subpar. (C).

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

6. 1976

   Pub. L. 94–455 § 2112(c) · 90 Stat. 1520

   1. Struck · 26 U.S.C. § 169(d)(4)

      Pub. L. 94–455, § 2112(c), among other changes, struck out provisions relating to treatment facilities placed in service by taxpayer before Jan. 1, 1976

   2. Substituted · 26 U.S.C. § 169(d)(4)

      Pub. L. 94–455, § 2112(c), among other changes, inserted provisions that in case of treatment facilities used in connection with any plan or other property not in operation before Jan. 1, 1969, Dec. 31, 1975, shall be substituted for Dec. 31, 1968, as the cut-off date for taking into account that portion of the basis which is attributable to construction, reconstruction, or erection

   Source evidence

   Code amendment note
   Subsec. (d)(4). Pub. L. 94–455, § 2112(c), among other changes, struck out provisions relating to treatment facilities placed in service by taxpayer before Jan. 1, 1976, and inserted provisions that in case of treatment facilities used in connection with any plan or other property not in operation before Jan. 1, 1969, Dec. 31, 1975, shall be substituted for Dec. 31, 1968, as the cut-off date for taking into account that portion of the basis which is attributable to construction, reconstruction, or erection.

   Enacted provision · exact public law section
   (c) Extension of Amortization.— Paragraph (4) of section 169(d) (relating to new identifiable treatment facility) is amended to read as follows: “(4) New identifiable treatment facility.— “(A) In general.— For purposes of paragraph (1), the term ‘new identifiable treatment facility’ includes only tangible property (not including a building and its structural components, other than a building which is exclusively a treatment facility) which is of a character subject to the allowance for depreciation provided in section 167, which is identifiable as a treatment facility, and which is property— “(i) the construction, reconstruction, or erection of which is completed by the taxpayer after December 31, 1968, or “(ii) acquired after December 31, 1968, if the original use of the property commences with the taxpayer and commences after such date. In applying this section in the case of property described in clause (i) there shall be taken into account only that portion of the basis which is properly attributable to construction, reconstruction, or erection after December 31, 1968. “(B) Certain plants, etc., placed in operation after 1968.— In the case of any treatment facility used in connection with any plant or other property not in operation before January 1, 1969, the preceding sentence shall be applied by substituting December 31, 1975, for December 31, 1968.”

7. 2005

   Energy Tax Incentives Act of 2005

   Pub. L. 109–58 § 1309(c) · 119 Stat. 594

   Inserted · 26 U.S.C. § 169(d)

   Pub. L. 109–58, § 1309(c), inserted “and special rules” after “Definitions” in heading

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 109–58, § 1309(c), inserted “and special rules” after “Definitions” in heading.

   Enacted provision · exact public law section
   (c) Conforming Amendment.— The heading for section 169(d) is amended by inserting “and Special Rules” after “Definitions”.

   Effective date note
   Amendment by Pub. L. 109–135 effective as if included in the provision of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 402(m)(1) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amendments note under section 23 of this title. Pub. L. 109–58, title XIII, § 1309(e), Aug. 8, 2005, 119 Stat. 1007, provided that: “The amendments made by this section [amending this section] shall apply to facilities placed in service after April 11, 2005.”

8. 2005

   Energy Tax Incentives Act of 2005

   Pub. L. 109–58 § 1309(d) · 119 Stat. 594

   Substituted · 26 U.S.C. § 169(d)(3)

   Pub. L. 109–58, § 1309(d), substituted “Health and Human Services” for “Health, Education, and Welfare”

   Source evidence

   Code amendment note
   Subsec. (d)(3). Pub. L. 109–58, § 1309(d), substituted “Health and Human Services” for “Health, Education, and Welfare”.

   Enacted provision · exact public law section
   (d) Technical Amendment.— Section 169(d)(3) is amended by striking “Health, Education, and Welfare” and inserting “Health and Human Services”.

   Effective date note
   Amendment by Pub. L. 109–135 effective as if included in the provision of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 402(m)(1) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amendments note under section 23 of this title. Pub. L. 109–58, title XIII, § 1309(e), Aug. 8, 2005, 119 Stat. 1007, provided that: “The amendments made by this section [amending this section] shall apply to facilities placed in service after April 11, 2005.”

9. 2005

   Energy Tax Incentives Act of 2005

   Pub. L. 109–58 § 1309(b) · 119 Stat. 594

   Substituted · 26 U.S.C. § 169(d)(4)(B)

   Pub. L. 109–58, § 1309(b), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “In the case of any treatment facility used in connection with any plant or other property not in operation before January 1, 1969, the preceding sentence shall be applied by substituting December 31, 1975, for December 31, 1968.”

   Source evidence

   Code amendment note
   Subsec. (d)(4)(B). Pub. L. 109–58, § 1309(b), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “In the case of any treatment facility used in connection with any plant or other property not in operation before January 1, 1969, the preceding sentence shall be applied by substituting December 31, 1975, for December 31, 1968.”

   Enacted provision · exact public law section
   (b) Treatment as New Identifiable Treatment Facility.— Subparagraph (B) of section 169(d)(4) is amended to read as follows: “(B) Certain facilities placed in operation after april 11, 2005.— In the case of any facility described in paragraph (1) solely by reason of paragraph (5), subparagraph (A) shall be applied by substituting ‘April 11, 2005’ for ‘December 31, 1968’ each place it appears therein.” .

   Effective date note
   Amendment by Pub. L. 109–135 effective as if included in the provision of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 402(m)(1) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amendments note under section 23 of this title. Pub. L. 109–58, title XIII, § 1309(e), Aug. 8, 2005, 119 Stat. 1007, provided that: “The amendments made by this section [amending this section] shall apply to facilities placed in service after April 11, 2005.”

10. 2005

    Energy Tax Incentives Act of 2005

    Pub. L. 109–58 § 1309(a) · 119 Stat. 594

    Added · 26 U.S.C. § 169(d)(5)

    Pub. L. 109–58, § 1309(a), added par. (5)

    Source evidence

    Code amendment note
    Subsec. (d)(5). Pub. L. 109–58, § 1309(a), added par. (5).

    Enacted provision · exact public law section
    (a) Eligibility of Post-1975 Pollution Control Facilities.— Subsection (d) of section 169 (relating to definitions) is amended by adding at the end the following: “(5) Special rule relating to certain atmospheric pollution control facilities.— In the case of any atmospheric pollution control facility which is placed in service after April 11, 2005, and used in connection with an electric generation plant or other property which is primarily coal fired— “(A) paragraph (1) shall be applied without regard to the phrase ‘in operation before January 1, 1976’, and “(B) this section shall be applied by substituting ‘84’ for ‘60’ each place it appears in subsections (a) and (b).” .

    Effective date note
    Amendment by Pub. L. 109–135 effective as if included in the provision of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 402(m)(1) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amendments note under section 23 of this title. Pub. L. 109–58, title XIII, § 1309(e), Aug. 8, 2005, 119 Stat. 1007, provided that: “The amendments made by this section [amending this section] shall apply to facilities placed in service after April 11, 2005.”

11. 2005

    Tax Technical Corrections Act of 2005

    Pub. L. 109–135 title IV § 402(e) · 119 Stat. 2577

    Inserted · 26 U.S.C. § 169(d)(5)(B)

    Pub. L. 109–135 inserted “in the case of facility placed in service in connection with a plant or other property placed in operation after December 31, 1975,” before “this section”

    Source evidence

    Code amendment note
    Subsec. (d)(5)(B). Pub. L. 109–135 inserted “in the case of facility placed in service in connection with a plant or other property placed in operation after December 31, 1975,” before “this section”.

    Enacted provision · exact public law section
    (e) Amendment Related to Section 1309.— Subparagraph (B) of section 169(d)(5) is amended by adding at beginning thereof “in the case of facility placed in service in connection with a plant or other property placed in operation after December 31, 1975,”.

    Effective date note
    Amendment by Pub. L. 109–135 effective as if included in the provision of the Energy Policy Act of 2005, Pub. L. 109–58, to which such amendment relates, see section 402(m)(1) of Pub. L. 109–135, set out as an Effective and Termination Dates of 2005 Amendments note under section 23 of this title. Pub. L. 109–58, title XIII, § 1309(e), Aug. 8, 2005, 119 Stat. 1007, provided that: “The amendments made by this section [amending this section] shall apply to facilities placed in service after April 11, 2005.”

12. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 div. U title IV § 401(a)(51) · 132 Stat. 348

    Inserted · 26 U.S.C. § 169(d)(5)(B)

    Pub. L. 115–141 inserted “a” before “facility”

    Source evidence

    Code amendment note
    Subsec. (d)(5)(B). Pub. L. 115–141 inserted “a” before “facility”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

16 of 16 references resolved to an enrolled provision