Page 104 - Large Business IRS Training Guides

Excepted Trades or Businesses –

Regulated Utilities

• Utility businesses that meet certain rate regulation

requirements, as well as many electric cooperatives,

are excepted from the IRC § 163(j) limitation, without

having to make an election.

• Utility businesses with greater than 90% of output sold

at qualifying rates are treated as wholly excepted.

Note: Excepted regulated utility trades or businesses are not eligible to
take bonus depreciation for property primarily used in the

excepted business. IRC § 168(k)(9)(A).

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