IRS Issues Notice on Depreciation of Ethanol Facilities

Posted on August 25, 2009 by Greg Jenner

On Monday, August 24, the IRS issued Notice 2009-64.  The notice sets forth a proposed revenue ruling that concludes that ethanol facilities are depreciable over 7 years (rather than 5 years).  A link to the notice appears below.

The proposed ruling classifies ethanol facilities as assets used in Waste Reduction and Resource Recovery Plants (7 years) and not assets used for manufacture of Chemical and Allied Products (5 years).

The IRS did not state when it will issue a final revenue ruling.  The notice does request comments , which must be submitted by November 23, 2009.

The reasoning underlying the proposed ruling is subject to potential criticism.  This may explain why the ruling was issued in proposed form and comments requested.  

Clients that are interested in learning more about the proposed ruling or submitting comments should speak with their favorite Stoel Rives attorney.

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