1. (a) A partial determination must be requested for all property that is not on the predetermined equipment list and that is not wholly used for pollution control. In order to calculate a partial determination percentage, the cost analysis procedure described in subsection (b) of this section must be used.
2. (b) The following calculation (cost analysis procedure) must be used to determine the creditable partial percentage for a property or project which is not used wholly for pollution control:
   Attached Graphic
   
3. (c) For property that generates a marketable byproduct (BP), the net present value of the BP is used to reduce the partial determination. The value of the BP is calculated by subtracting the transportation and storage of the BP from the market value of the BP. This value is then used to calculate the net present value (NPV) of the BP over the lifetime of the equipment. The equation for calculating BP is as follows:
   Attached Graphic
   
4. (d) If the cost analysis procedure produces a negative number or a zero, the property is not eligible for a positive use determination.

Source Note:The provisions of this §17.17 adopted to be effective January 9, 2002, 27 TexReg 185.