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H r.c .a . 2-16-42 m s m c k r t i t x c a t o This tern **?«beselty Certificate®“ means a certification issued pursuant to feetion 124 of the Internal Revenue Code, aa amended, that the eons true tlon or acquisition of the emergency faellitiee referred to in the certificate le necessary In the interest of national defense during this emergency period. The application for a necessity oertifloats la timely if filed before the expiration of mix nonthe after the beginning of construc­tion, reconstruction, ereotlon or installation or the date of aequieitlon of the faellitiee sought to he oertlfled. hhen the certifieste of neoeaalty has been obtained, the applicant le In position to receive the benefit of amortisation of the coat of said facilities during sixty consecutive son the, with the privilege of obtaining tine adjustments favorable to the appli­cant If the existing state of emergency le p r o o l timed by the President of tibia Unites States as having terminated prior to the expiration of the sixty months. i-hen any faellitiee used In con­nection with the existing emergency may be amortised during such a short period, obviously, tax benefits accrue to tbs applicant. Applications for necessity certificates shall be filed with the Office of the Ondsr-o eoretary of v&r or the Office of the Under-secretary of the Mavy and application shall be made to only one department, ordinarily that one which receives directly or indirectly the larger part of the products or services to be pro­duced or furnished with the faellitiee sought to be certified. So far a rather broad policy has been applied In granting these certificates if the applicant can shoe a reasonable need for the additional facilities for defense work or for the purpose of rendering service to the Army, the Kavy, the Maritime Commission or any auxiliary development required to facilitate the activities of the Army, tile Havy, or the Marl time Commission. As m example • service facilities for a Federal Housing Project or a joint Federal and State or City Housing Project necessary to furnish quarters for enlisted men or civilian employees engaged In the production of war materials or facilities are proper subjects for application. In other words, if the tax payer or applleant east show a reasonable need for the additional facilities in the interest of national defense activities and can prevail upon an Army or Wavy Commanding officer to recognise such, he probably will receive a certificate. Heretofore, It has beat necessary to obtain other certificates as well as necessity certificates in order to assure recognition from the Bureau of Internal Revenue» if the benefits of amortisation are sought In connection with taxes. However, we have been notified that Section 124 of the Internal Revenue Code has been amended by repealing faction (1 ) thereof and as a result the only certificate required to establish the tax payers* right to amortisation during 60 months Is the necessity Certificate.