SECTION 3. SCOPE AND

INFRASTRUCTURE SAFE HARBOR

.01 Scope . This revenue procedure applies to a taxpayer with a trade or business that—

(1) Is conducted by a party contractually obligated to fulfill the terms of a specified infrastructure arrangement, as defined in section 4.11 of this revenue procedure;

(2) Is conducted in connection with fulfilling the terms of a specified infrastructure arrangement; and

(3) Would not otherwise be treated as a real property trade or business under section 163(j)(7)(B) or 469(c)(7)(C).

.02 Safe harbor for certain infrastruc- ture trades or businesses . Taxpayers described in section 3.01 of this revenue procedure are eligible to make an election to be an electing real property trade or business for purposes of sections 163(j)(7)(B) and 168(g)(1)(F). If a taxpayer makes this election, the taxpayer must use the alternative depreciation system of section 168(g) to depreciate the property described in section 168(g)(8). The taxpayer makes the election in accordance with the time and in such form and manner as prescribed by the Commissioner in regulations, guidance published in the Internal Revenue Bulletin, or in IRS forms, instructions, or publications.

.03 Treatment as real property . For purposes of applying section 163(j) and this revenue procedure, a “specified infrastructure arrangement,” as defined in section 4.11 of this revenue procedure, is treated as real property.

.04 Special rule for certain assets . For purposes of applying section 163(j) and this revenue procedure, “qualified public infrastructure property,” as defined in section 4.08 of this revenue procedure, is treated as used in a trade or business described in section 3.01 of this revenue procedure even if such property is being de

17 of this revenue procedure contact Lisa Mojiri-Azad or Edward Schwartz of the Office of Associate Chief Counsel (Income Tax and Accounting) at (202) 317-4718 (not a toll-free call) or (202) 317-7006 (not a toll-free number), respectively. For further information regarding other sections of this revenue procedure contact Mr. Keaton at (202) 317-5404 (not a toll-free number).

26 CFR 601.601. Rules and regulations. (Also Part I, § 163(j).)

Rev. Proc. 2018–59