1.148-7 (g)(1) Definition.

Except as otherwise provided, CONSTRUCTION EXPENDITURES means capital expenditures (as defined in section 1.150-1) that are allocable to the cost of real property or constructed personal property (as defined in paragraph (g)(3) of this section). Except as provided in paragraph (g)(2) of this section, construction expenditures do not include expenditures for acquisitions of interests in land or other existing real property.