Rev. Rul. 68-111

Held, for investment credit purposes under the circumstances stated, the `original use' of the diesel-electric locomotive, acquired by the railroad after December 31, 1961, commenced with the railroad; therefore, it is `new section 38 property' within the meaning of section 48(b) of the Internal Revenue Code of 1954, and section 1.48-2(b) of the Income Tax Regulations. The basis of the replacement locomotive is determined under the provisions of section 1.46-3(c)(1) of the regulations.