TelecomUSA, Inc. v. United States

Opinion for the Court filed by Circuit Judge GARLAND.

GARLAND, Circuit Judge:

Telecom*USA, Inc. and its subsidiaries, and MCI Communications Corporation and its subsidiaries, (collectively, “Telecom”), appeal the district court’s ruling that Telecom is not entitled to the income tax refund it seeks. The case concerns transition rules enacted by Congress in 1986 to cushion the impact of the repeal of the investment tax credit (ITC). Telecom’s principal contention is that its basis in depreciable property should be reduced by the amount of ITC it received in the year to which it carried its ITC…