• Tax Court Delivers Major Tax Depreciation Victory for Electric Utility Industry in PPL v. Commissioner of Internal Revenue
  • August 13, 2010 | Authors: Mark B. Bierbower; Timothy L. Jacobs; David S. Lowman; Richard Edward May
  • Law Firm: Hunton & Williams - Washington Office
  • On July 28, 2010, in PPL Corporation & Subsidiaries v. Commissioner of Internal Revenue, 135 T.C. No. 8, the United States Tax Court, in an opinion written by Judge James S. Halpern, held that street light assets owned and depreciated by an electric utility do not constitute assets used in the distribution of electricity for sale. Rather, the Tax Court found that street light assets are used to provide light for public safety. The difference is significant for federal income tax depreciation purposes -- a 20-year depreciation recovery period vs. a 7-year depreciation recovery period.