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Im m m m r.c.i. % .. 2-16-42 HgcssaiTr cmnncATsa T h « t e r m *»se#88lty Certificates* means a certification Issued porcuent to Section 124 of the Internal Revenue Code, as amended, that the construction or acquisition of the emergency faeilltiaa Referred to in the certificate la necessary in the interest o f national defense during this emergency oeriod. the application for a necessity certificate is timely if filed before the expiration of six months after the Peginning of construc­tion, reconstruction, erection or installation or the date of acquisition of the facilities sought to be certified. ^ s n the certificate of necessity has been obtained, the applicant is in position to receive the benefit of amortization cf the cost of said facilities during sixty consecutive nonthe, with the privilege of obtaining time adjustments favorable to the appli­cant if the existing state of emergency is proclaimed by the President of the Unites State# as having terminated prior to the expiration of the sixty months, then any facilities used in con aection with the existing emergency may tee amortised during such a short period, obviously, tax benefits accrue to the applicant. Applications for necessity certificates shall be filed with the Office of the Under-secretary of far or the Office ©f the Under-secretary of the «avy and application shall be mads to only one department, ordinarily that one which receives directly or Indirectly the larger part of the products or services to b# pro­duced or furnished with the facilities sought to be certified. So far » rather broad policy has been applied in granting thesa certificates if the applicant can show a reasonable need for the additional facilities for defense work or for the purpose of rendering service to the Aray, the Navy, the Karltime Commission o r any auxiliary development required to facilitate the aetlvltlee of the Army, the Navy, or the Karltime Commission. As an 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 oivllian employees engaged in the production of Nsr materials or facilities are proper subjects for application. In ether words, if the tax payer or applicant can show a reaeonable need for the additional facilities in the interest of national defense activities and can prevail upon an Army or Navy Commanding officer to recognize such, he probably will receive a certificate. Heretofore, it has been necessary to obtain other oertlficatss *• well as necessity certificates in order to assure recognition from the Bureru of Internal revenue, if the benefits of amortization are sought in connsotlon with taxes. However, ve have been notified that Section 12b of the Internal Revenue Code has been amended by repealing Section (1 ) thereof and as a result the only certificate required to establish the tax payers* right to amortization during ©0 months is the Necessity Certificate.