IRS Issues Final Rules on Expensing Qualified Refinery Property

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IRS releases final regulations (T.D. 9547) regarding the election to expense qualified refinery property under Section 179C, largely adopting temporary rules (T.D. 9412) and a notice of proposed rulemaking (REG-146895-05) issued in 2008 but reflecting changes to the law made by the Energy Improvement and Extension Act of 2008 (Pub. L. No. 110-343). Section 179C allows taxpayers to elect to deduct as an expense 50 percent of the cost of any qualified refinery property. Many of the changes in the new regulations provide extended dates for placing qualified property in service; the 2008 act also amended the definition of “qualified refinery” to include facilities designed to process liquid fuel directly from shale or tar sands.

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