Rev. Rul. 68-545

In accordance with the provisions of section 1.47-1(e)(2) of the Income Tax Regulations, Revenue Ruling 67-378, C.B. 1967-2, 45, prescribes a standard mortality dispersion table for determining qualified investment in the case of mass assets for purposes of sections 46 and 47 of the Internal Revenue Code of 1954, relating to the investment credit.

Taxpayers may elect to use that table in lieu of data from mortality dispersion tables based on their own experience. The table prescribed by Revenue Ruling 67-378 is based on the normal probability distribution that is widely used in statistical theory and practice. Dispersion and percent of total qualified investment are shown in the table for mass assets with average useful life for full-year periods from 3 to 20 years.

In the case of mass asset useful lives falling between the full-year periods shown in the table, the dispersion percentages and the total qualified investment as percentages may be computed by interpolation between the nearest given values of each column of the table. For example, in the case of an average useful life of 5 years and 7 months, the total qualified investment as a percentage may be computed by adding to the percentage shown in the last column of the table for a 5-year useful life (34.52) serven-twelfths of the difference between the percentages for a 6-year useful life and a 5-year useful life (50.00-34.52 = 15.48). This interpolation ( 7/12 of 15.48 = 9.03) results in total qualified investment as a percentage of 43.55 (34.52 + 9.03) for mass assets with an average useful life of 5 years and 7 months.

Revenue Ruling 67-378 is hereby amplified.