### Question
How is the "exempt utility property" defined?


### Answer
The term **exempt utility property** is defined in *26 U.S.C. § 451* as follows -

> property used in the trade or business of—



(i) generating, transmitting, distributing, or selling electricity, or



(ii) producing, transmitting, distributing, or selling natural gas

#### Citation:
  - *26 U.S.C. § 451*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

