Bulletin No. 2004-8 February 23, 2004

Rev. Rul. 2004–18, page 509. Treatment of environmental remediation expenses un- der section 263A. This ruling holds that amounts incurred to clean up land that a taxpayer contaminated with hazardous waste by the operation of a manufacturing plant must be included in inventory costs under section 263A of the Code. Rev. Ruls. 94–38 and 98–25 clarified. Rev. Proc. 2002–9 modified and amplified.

Rev. Rul. 2004–19, page 510. LIFO; price indexes; department stores. The December 2003 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, December 31, 2003.

T.D. 9110, page 504. Final regulations under section 42 of the Code amend current regulations that affect the order in which credits are allocated from the state housing credit ceiling under section 42(h)(3)(C) and the time for meeting the 10-percent basis requirement under sections 42(h)(1)(E) and (F). These regulations also amend current regulations under section 42 to facilitate the electronic filing of income tax returns.

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