CHAPTER 308

An Act to amend and reenact § 58-81.1 of the Code of Virginia, relating
to accelerated amortization rate on certain facilities designed to con-
trol pollution.

[H 872]

Approved April 2, 1968

Be it enacted by the General Assembly of Virginia:
on That § 58-81.1 of the Code of Virginia be amended and reenacted as

ollows:

§ 58-81.1. Accelerated amortization rate on certain facilities de-
signed to control pollution.—(a) Every taxpayer, at his election, in lieu of
the allowance for depreciation set forth in § 58-81 (i), for any taxable
year or part thereof beginning after June 30, 1954, shall be entitled to a
deduction with respect to the amortization of the adjusted basis of any
plant, equipment or treatment system installed to prevent, reduce or abate
pollution and completed on or after July 1, 1946, pursuant to any order,
directive or other requirement or with the consent and approval of the
State Water Control Board, or after July 1, 1966, pursuant to any order,
directive or other requirement or with the consent and approval of the
State Air Pollution Control Board, based on a period of sixty months. For
the purposes of this section “adjusted basis” shall mean basis as deter-
mined by § 58-85 less depreciation allowed or allowable.

(b) Written notice of election to take amortization of any plant,
equipment or treatment system under this section must be filed with the
Department of Taxation on or before the filing date of the return for the
first taxable year for which such election under this section is made in
respect to such plant, equipment or system. Such notice shall be given on
such forms and in such manner as the Department of Taxation may by
rule prescribe.

(c) The taxpayer shall file with the Department of Taxation at the
time of his election under this section copies of recommendations, orders
and approvals issued by the State Water Control Board or State Air
Pollution Control Board in respect to such plant. equipment or treatment
system, and such other documents and data relating thereto as the De-
partment may by rule require.

(d) No deduction shall be allowed under this section on other than
depreciable property, except that where wastes are disposed of through
a lagoon process such lagooning costs and the cost of land containing such
lagoons shall be subject to the accelerated amortization provided for under
this section.

(e) In no event shall accelerated amortization, or depreciation and
accelerated amortization deductions be permitted in excess of the cost of
the asset subject to the provisions of this section.

(f) Nothing in this section, as amended, shall be construed as in any
way affecting §§ 58-181.1 through 58-181.18, relating to the allocation and
apportionment of income in the case of corporations engaged in multt-
State operations.

(9) This section, as amended, shall apply to taxable years beginning
after December thirty-first, nineteen hundred sixty-seven.