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NECESSITY CERTIFICATES r.c.a. 2-l6-b2 The term *N#oessity Certificates4' means a certification issued pursuant to Section 12*1 of the Internal Hovenue Code, as amended, that the oonstruotlon or acquisition of the emergency faollltiee referred to in the certificate is necessary In the Interest of national defense during this emergency period. The application for a necessity certificate la timely if filed before the expiration of six months after the beginning of construc­tion* reconstruction* erection or installation or the date of acquisition of the facilities sought to be certified. When the certificate of necessity has been obtained, the applicant is in position to receive the benefit of amortisation of the oost of said facilities during sixty consecutive months, with the privilege of obtaining tine adjustments favorable to the appli­cant if the existing state of emergency ie preclslmed by the President of the Unites States as having terminated prior to the expiration ©f the sixty month®. When any facilities used In con neetion with the existing emergency may be amortised during such a short period, obviously, tax benefits accrue to the applicant. Application* for necessity certificates shall be filed with the Office of the Under-secretary of War or the Office ©f the Under-secretary of the Navy and application shall be cade 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 facilities sought to be certified. So far a rather broad policy has been applied in granting these certificate# if the applicant can show a reasonable need for the additional facilities for defense work or for the purpose of rendering service to the Army, the Navy, the Maritime Commission or any auxiliary davelopment required t© facilitate the activities of the Army, the Navy, or the Maritime Commission. As an example, service faollltiee for a Federal Housing Project or a Joint Federal and State or City Housing Project necessary to furnish quarters for enlisted men or oivllian employees engaged in the production of far materials or facilities are proper subjects for application. In other words. If the tax payer or applicant can show a reasonable need for the additional facilities in the interest of national defense ootivltle* and can prevail upon an Army or Navy Commanding officer to recognise such, he probably will receive a certificate. Heretofore, it has been necessary to obtain other certificates as veil as necessity certificates in order to assure recognition from the Bureau of Internal Fevenue, if the benefits of amortisation are sought in connection with taxes. However, we have been notified that Section 12b of the Internal Revenue Code has been amended by repealing Section {1} thereof and ae a result the only certificate required to establish the tax payers* right to amortisation during 6o months ie the Necessity Certificate.