October 31, 1995
Plaintiff is entitled to investment tax credit and depreciation deductions due for investing in solar energy devices; Internal Revenue Service (IRS) was incorrect to disallow abatements on the ground that plaintiff's sale and leaseback transactions were shams.
Piggy Wiggly Southern Inc. v. Commissioner
April 18, 1985
Supermarket corp. allowed depreciation and investment credit on equipment purchased for remodeled, new, and relocated stores only when stores were open for business during tax year. Official reopening of remodeled stores didn't negate actual operations in earlier year. But where openings of new and remodeled stores was under taxpayer's control, equipment wasn't in use until year of opening.
Supermarket's central heating, ventilating and air conditioning and heating units qualified for investment credit. Units were not considered structural components since they were installed solely to meet temperature and humidity requirements of refrigeration equipment in taxpayer's stores. Comfort of taxpayer's employees and customers was incidental to maintenance of proper environmental conditions for operation of machinery; and Energy Tax Act of 1978 didn't deny investment credit for central air conditioners.