# Definition of Contribution in Aid of Construction Under Section 118(c)
> **IRS** · Final regulations. · Published 2001-01-11 · Effective 2001-01-11 · 66 FR 2252
## Document
- **Document number:** 01-487
- **Category:** other
- **Sub-agency:** IRS
- **Federal Register citation:** 66 FR 2252
- **CFR reference:** 26 CFR 1
- **Publication date:** 2001-01-11
- **Effective date:** 2001-01-11
- **Treasury docket:** TD 8936
## Abstract

This document contains final regulations concerning an exclusion from gross income for a contribution in aid of construction under section 118(c) that is treated as a contribution to capital under section 118(a). The final regulations affect a regulated public utility that provides water or sewerage services because a qualifying contribution in aid of construction is treated as a contribution to the capital of the utility and excluded from gross income. The final regulations provide guidance on the definition of a contribution in aid of construction, the adjusted basis of any property acquired with a contribution in aid of construction, the information relating to a contribution in aid of construction required to be furnished by the utility, and the time and manner for providing that information to the IRS.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2001/01/11/01-487/definition-of-contribution-in-aid-of-construction-under-section-118c)
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