(1) Property shall be included in the property
factor if it is actually used or is available for or capable of being used
during the tax period in the regular course of the trade or business of the
taxpayer. Property held as reserves or
standby facilities or property held as a reserve source of materials shall be
included in the factor. For example, a
plant temporarily idle or raw material reserves not currently being processed
are includable in the factor.
(2) Property or equipment under construction
during the tax period (except inventoriable goods in process) shall be excluded
from the factor until such property is actually used in the regular course of
the trade or business of the taxpayer. If the property is partially used in the
regular course of the trade or business of the taxpayer while under
construction, the value of the property to the extent used shall be included in
the property factor.
(3) Property used in the regular course of the
trade or business of the taxpayer shall remain in the property factor until its
permanent withdrawal is established by an identifiable event such as its
conversion to the production of non-business income, its sale, or the lapse of
an extended period of time (normally five years) during which the property is
held for sale.