### Question
What does exempt utility property mean?


### Answer
**Exempt utility property** has the following meaning in *26 U.S.C. § 451*:

> 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**

