Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 67-23

1967-1 C.B. 5

Sec. 48

IRS Headnote

An outdoor lighting facility used to illuminate recreational, entertainment and amusement areas, and the related parking areas, is generally an inherently permanent structure and not, therefore, `tangible personal property' within the meaning of section 1.48-1(c) of the Income Tax Regulations.

Full Text

Rev. Rul. 67-23

Advice has been requested whether any or all parts of an outdoor lighting facility are `tangible personal property' within the meaning of section 1.48-1(c) of the Income Tax Regulations.

The facility consists of cement blocks, metal towers, lighting fixtures, transformers, and underground conduits. It was installed in such a manner as to make it easy to dismantle and remove. Parts of the facility were also attached to a building and to another structure because they were conveniently located. In general, the outdoor lighting facility is used to illuminate recreational, entertainment and amusement areas, and the related parking areas.

Section 1.48-1(c) of the regulations provides, in part, that the term `tangible personal property' means any tangible property except land and improvements thereto, such as buildings or other inherently permanent structures including their structural components. It further provides that local law shall not be controlling for purposes of determining whether property is tangible or personal.

The controlling factor in this case, for investment credit purposes, is not that the facility is annexed to the ground, or attached to a building or other structure in such a manner as to make its removal convenient but that the facility is an inherently permanent structure within the meaning of this section.

Accordingly, the outdoor lighting facility, including its component parts, as described and used above, is an inherently permanent structure and not, therefore, `tangible personal property' within the meaning of section 1.48-1(c) of the regulations.