Rev. Rul. 77-27, 1977-1 C.B. 23

Industrial development bonds; exempt small issue; capital expend­itures. Expenditures incurred by a nonexempt corporation for research and experimental activities with re­spect to a proposed facility to be financed by the industrial develop­ment bonds of a political subdivi­sion of a state are capital expendi­tures within the meaning of section 103(b)(6)(D) of the Code, even though the […]