### Question
How does the law define public utility property?


### Answer
Under *26 U.S.C. § 168*, **public utility property** is defined as:

> property used predominantly in the trade or business of the furnishing or sale of—



(A) electrical energy, water, or sewage disposal services,



(B) gas or steam through a local distribution system,



(C) telephone services, or other communication services if furnished or sold by the Communications Satellite Corporation for purposes authorized by the Communications Satellite Act of 1962 (47 U.S.C. 701), or



(D) transportation of gas or steam by pipeline,


  

if the rates for such furnishing or sale, as the case may be, have been established or approved by a State or political subdivision thereof, by any agency or instrumentality of the United States, or by a public service or public utility commission or other similar body of any State or political subdivision thereof

#### Citation:
  - *26 U.S.C. § 168*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

