(a) General rule.

(1)  Every taxpayer, at his or her election, shall be entitled to a deduction with respect to the amortization of the adjusted basis, for determining gain, of any “treatment facility”, as defined in subsection (d) of this section, based on a period of sixty (60) months. This amortization deduction shall be an amount, with respect to each month of that period within the taxable year, equal to the adjusted basis of the facility at the end of each month divided by the number of months, including the month for which the deduction is computed, remaining in the period. The adjusted basis at the end of the month shall be computed without regard to the amortization deduction for that month.

(2)  The amortization deduction provided in this section with respect to any month shall be in lieu of the depreciation deduction with respect to the facility for that month provided for under § 44-11-11. The sixty (60) month period shall begin as to any treatment facility, at the election of the taxpayer, with the month following the month in which the facility was completed, or with the succeeding taxable year.

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(b) Election of amortization.  The election of the taxpayer under subsection (a) of this section to take the amortization deduction and to begin the sixty (60) month period with the month following the month in which the facility was completed shall be made only by a statement to that effect in the return for the taxable year in which the facility was completed. The election of the taxpayer under subsection (a) of this section to take the amortization deduction and to begin that period with the taxable year succeeding that year shall be made only by a statement to that effect in the return for the succeeding taxable year.

(c) Termination of amortization deduction.  A taxpayer that has elected under subsection (b) of this section to take the amortization deduction provided in subsection (a) of this section may, at any time after making that election, discontinue the amortization deduction with respect to the remainder of the amortization period, the discontinuance to begin as of the beginning of any month specified by the taxpayer in a notice, in writing, filed with the tax administrator before the beginning of that month. The depreciation deduction provided for under § 44-11-11 shall be allowed, beginning with the first month as to which the amortization deduction does not apply, and the taxpayer shall not be entitled to any further amortization deduction with respect to the treatment facility.

(d) Treatment facility.  For the purposes of this section, “treatment facility” means any land, facility, device, building, machinery, or equipment, the construction, reconstruction, erection, installation, or acquisition of which: (i) is in furtherance of, or in compliance with, federal or state requirements or standards for the control of water or air pollution or contamination, (ii) has been made by the taxpayer primarily to control the pollution or contamination of the water or the air of the state as defined in chapter 12 of Title 46 and chapter 25 of Title 23, respectively, and (iii) has been certified as approved in an order entered by the director of the department of health. This provision shall apply only to any water and air pollution control properties and facilities that are installed for the treatment of waste waters and air contaminants resulting from industrial processing and it shall apply only to water or air pollution control properties and facilities placed in operation for the first time after April 13, 1970.

(e) Certificate of compliance.  Any taxpayer who has adopted a “treatment facility” as defined in subsection (d) of this section shall be entitled to the deduction afforded in subsection (a) of this section; provided, that in no event shall an amortization deduction be allowed in respect to any “treatment facility” for any taxable year unless an attested copy of the order of approval of the facility entered by the director of the department of health, and a written statement of the department of health certifying that the installation of the facility has been completed and that it is in proper operation, are provided to the tax administrator at the time of filing of the taxpayer’s return.