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F.C.N. 2-l6-fc2 NECESSITY CERTIFICATES The term “Necessity Certificates8 means a certification issued pursuant to Section ill of the Internal Revenue Code, as amended, that the construction or acquisition of the emergency facilities referred to in the certificate is necessary in the interest of national defense during this emergency period. The application for a necessity certificate is timely If fll®& before the expiration of six months after the beginning of eonetruo- tion, reconstruction, ereotion or installation or the data of acquisition of the facilities sought to he certified. then the certificate of necessity has been obtained, the applicant is in position to receive the benefit of amortisation or the cost of said facilities during sixty consecutive months, with the privilege of obtaining time adjustment# favorable to the appli­cant if the existing state of emergency is proclaimed by the President of the Unites States as having terminated prior to the expiration of the sixty months. When any facilities used in eon nsetion with the existing emergency may be amortised during such a ahort period, obviously, tax benefits accrue to the applicant. Applications for necessity certificates shall be filed with the Office of the Under-secretary of War or the Office of ™ Under-secretary of the Navy and application shall be made to only one department, ordinarily that one which receives^directly or indirectly the larger part of the products or servicestobepro- dueed or furnished with the facilities sought to be certified. So far a rather broad policy has been applied In granting these certificates if the applicant can show a reasonable need for the additional facilities for defense ^ k j j r for the rendering service to the Army, the Navy, the Maritime Commission or any auxiliary development required to facilitate the activities of the Army, the Navy, or the Maritime Commission. Aa an . service facilities for a Federal and State or City Housing Projec t Honuesciensgs arPyr ojteoc tf uorrn ias h ^oqlunatr ters ror enlisted men or civilian employees engaged in the prdductionof War materials or facilities are proper subjects for application. In other words, if the tax payer or applicant canshwareasonabie naed for the additional facilities in the interest of national doefffelneseer atco tirveictoigensi sea nds uccha,n phree vpariolb abuployn wialnl Armeyce iovr e NaaT Jea rtifieato. Haretofora, it has been necessary to obtain other certificates ae well as necessity certificates in order to assure recognition from the Bureau of internal Revenue, if the benefits ofaaortiRation are sought in connection with taxes. Howtver, we have been notified rtehapte alSiencgti oSne c1t2i*o* n of( !)t het hIernetoefr naaln dR eavs enau er esCuoldte htahse been *»•*”** required to establish the tax payers' right to amorontliys ation during 60 months is the Neoessity Certificate.