Because of "the policies underlying the enactment of an unprecedented 100-percent additional first year depreciation provision," (43) the revenue procedure provided a limited exception to the self-constructed property rules in Treasury regulations section 1.168(k)-1(b)(4)(iii) for certain components of a larger self-constructed property (hereinafter, the "component election"):
If before September 9, 2010, a taxpayer begins the manufacture, construction, or production of the larger self-constructed property that is qualified property for use in its trade or business or for its production of income, but this larger self-constructed property meets the requirements of [then-section 168(k)(2)(A)(ii) (original use) and (iv) (placed-in-service date)], the taxpayer may elect to treat any acquired or self-constructed component of that larger self-constructed property as being eligible for the 100-percent additional first year depreciation deduction if the component is qualified property and is acquired or self-constructed by the taxpayer after September 8, 2010, and before January 1, 2012.
May's California CPA, Page 33, discussed the new 30-percent additional first year depreciation deduction for qualified property generally acquired after Sept.
167(0(1) or 168, as applicable, is determined for the placed-in-service year and all subsequent years by taking into account the 30-percent additional first year depreciation deduction.
* The time described above and included in that return an affirmative statement that the taxpayer is not deducting the additional first year depreciation for the class of property.