685 



allowed, beginning with the first month as to whicli 

 the amortization deduction does not apply, and the 

 taxpayer shall not be entitled to any further 

 amortization deduction under this section with 

 respect to such pollution control facility. 



(d) Definitions. 

 For purposes of this section — 



(1) Certified pollution control facility. 



The term "certified pollution control facility" 

 means a new identifiable treatment facility which 

 is used, in connection with a plant or other prop- 

 erty in operation before January 1, 1976, to abate 

 or control water or atmospheric pollution or con- 

 tamination by removing, altering, disposing, 

 storing, or preventing the creation or emission 

 of of ' pollutants, contaminants, wastes, or heat 

 and which — 



(A) the State certifying authority having 

 jurisdiction with respect to such facility has 

 certified lo the Federal certifying authorty as 

 having been constructed, reconstructed, erected, 

 or acquired in conformity with the State pro- 

 gram or requirements for abatement or control 

 of water or atmospheric pollution or contamina- 

 tion; 



(B) the Federal certifying authority has 

 certified to the Secretary or his delegate (i) as 

 being in compliance with the applicable regula- 

 tions of Federal agencies and (ii) as being in 

 furtherance of the general policy of the United 

 States for cooperation with the States in the 

 prevention and abatement of water pollution 

 under the Federal Water Pollution Control Act, 

 as amended (33 U.S.C. 466 et seqj, or in the 

 prevention and abatement of atmospheric pollu- 

 tion and contamination under the Clean Air 

 Act, as amended (42 U.S.C. 1857 et seq.) ; and 



(C) does not significantly — 



(i) increase the output or capacity, ex- 

 tend the useful life, or reduce the total 

 operating costs of such plant or other prop- 

 erty (or any imit thereof) , or 



(ii) alter the nature of the manufactur- 

 ing or production process or facility. 



(2) State certifying authority. 



The term "State certifying authority" means, 

 in the case of water pollution, the State water 

 pollution control agency as defined in section 13 

 (ai of the Federal Water Pollution Control Act 

 and. m the case of air pollution, the air pollution 

 control agency as defined in section 302ib) of the 

 Clean Air Act. The term "State certifying author- 

 ity" includes any interstate agency authorized to 

 act in place of a certifying authority of the State. 



(3) Federal certifying authority. 



The term "Federal certifying authority" means, 

 in the case of water pollution, the Secretary of 

 the Interior and, in the case of air pollution, the 

 Secretary of Health. Education, and Welfare. 



(4) New identifiable treatment facility. 



(A) In general. — For purposes of paragraph 

 (1), the term 'new identifiable treatment fa- 



' So In amending law. 



cility' includes only tangible property (not 

 including a building and its structural com- 

 ponents, other than a building which is exclu- 

 sively a treatment facility) which is of a 

 character subject to the allowance for depre- 

 ciation provided in section 167, which is iden- 

 tifiable as a treatment facility, and which is 

 property — 



(i) the construction, reconstruction, or 

 erection of which is completed by the tax- 

 payer after December 31, 1968, or 



(ii) acquired after December 31, 1968, if 

 the original use of the property commences 

 with the taxpayer and commences after 

 such date. 

 In applying this section in the case of property 

 described in clause (i) there shall be taken into 

 account only that portion of the basis which 

 is properly attributable to construction, re- 

 construction, or erection after December 31, 

 1968. 



(B) Certain plants, etc., placed in opera- 

 tion AFTER 1968. — In the cBse of any treat- 

 ment facility used in connection with any 

 plant or other property not in operation before 

 January 1, 1969, the preceding sentence shall 

 be applied by substituting December 31, 1975, 

 for December 31, 1968. 



(e) Profilmaking abatement works, etc. 



The Federal certifying authority shall not certify 

 any property under subsection (d) (1) (B) to the ex- 

 tent it appears that by reason of profits derived 

 through the recovery of wastes or otherwise in the 

 operation of such property, its costs will be recovered 

 over its actual useful life. 



(f) Amortizable basis. 



(1) Defined. 



For purposes of this section, the term "amortiz- 

 able basis ' means that portion of the adjusted 

 basis I for determining gain ) of a certified pollution 

 control facility which may be amortized under this 

 section. 



(2) Special rules. 



I A > If a certified pollution control facility has 

 a useful life i determined as of the first day of 

 the first month for which a deduction is allow- 

 able under this section > in excess of 15 years, the 

 amortizable basis of such facility shall be equal 

 to an amount which bears the same ratio to the 

 portion of the adjusted basis of such facility, 

 which would be eligible for amortization but for 

 the application of this subparagraph, as 15 bears 

 to the number of years of useful life of such 

 facility. 



I B ) The amortizable basis of a certified pollu- 

 tion control facility with respect to which an 

 election under this section is in effect shall not 

 be increased, for purposes of this section, for ad- 

 ditions or improvements after the amortization 

 period has begun. 



(g) Depreciation deduction. 



The depreciation deduction provided by section 

 167 shall, despite the provisions of subsection (a) . be 



