§179C Election to expense certain refineries

Summary

You can choose to deduct 50% of the cost of certain refinery equipment in the year you put it into use. You must make that choice on your tax return in the way the IRS requires. Once made, you can’t take back the choice unless the IRS agrees. Only parts of U.S. refineries that meet several rules qualify. The part’s first use must start with you, it must be placed in service after this law was passed and before January 1, 2014, and it must meet environmental laws in effect when it starts (a Clean Air Act waiver doesn’t count). No binding construction contract can have existed on or before June 14, 2005, and construction or placement dates must fall between June 15, 2005 and January 1, 2010 under the listed rules. For additions to an existing refinery, the work must raise average daily output by at least 5% or let the refinery process shale, tar sands, or similar fuels equal to at least 25% of daily throughput. The deduction does not cover equipment whose main use is topping, asphalt, lube oil, terminals, or blending, or work done only to satisfy government orders. Cooperatives have special filing and notice rules, and you must file a report with the IRS about your refineries to get the deduction.