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SECTION 45.-ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES
ELECTRICITY PRODUCED FROM WIND ENERGY UNDER SECTION 45. This ruling provides that each wind turbine together with its tower and supporting pad owned by a taxpayer that is originally placed in service after December 31, 1993, and before July 1, 1999, is a separate qualified facility under section 45 (c) (3) of the Code.
REV. RUL. 94-31
ISSUE
In determining whether Sec 45 of the Internal Revenue Code applies to electricity produced from wind energy, what is a qualified facility under Sec 45(c)(3)?
FACTS
The Taxpayer owns and operates a windfarm. The windfarm consists of an array. of wind turbines, towers, pads, transformers, roadways, fencing, on-site power collection systems, and monitoring and meteorological equipment. A utility company purchases the electricity produced on the windfarm under an agreement.
A wind turbine consists of blades, a mechanical gear box, a generator, and a mechanism for control and communication. All of these items, except for the blades, are housed in a nacelle, or capsule. The wind turbine is mounted on a platform atop a tower, which sits on a supporting pad. The tower provides the height necessary for...