Merchants Refrigerating Company of California v. United States
Opinion
Opinion
Appellant Merchants Refrigerating Company of California (Merchants) provides cold storage facilities for food processors. Between 1973 and 1974, Merchants constructed large frozen food storage and shipping structures at Salinas and Modesto, California. Merchants contends these facilities are used “for the bulk storage of fungible commodities” under Int.Rev.Code § 48(a)(l)(B)(iii) which qualifies it for an investment tax credit under Int.Rev.Code § 38. Merchants’ claims for tax refund were not approved, and it commenced this action. The district court entered summary judgment against Merchants on the question of whether the facilities fell under § 48(a)(lXB)(iii). We affirm.
The following stipulated facts were submitted to the district court: The Modesto facility consists of 23,162 square feet of freezer space and 7,238 square feet of loading dock area added to an existing building. In Salinas, two adjoining buildings were constructed. The first contains 39,427 square feet of freezer space and 18,541 square feet used for an office and loading dock. The second holds 41,787 square feet of freezer space and 10,055 square feet of loading dock area.