The New York Commissioner of Taxation and Finance issued an advisory opinion declaring that the construction of a taxpayer’s custom-engineered steam pipeline constituted a capital improvement for New York sales and use tax purposes. The pipeline was designed to deliver steam from the taxpayer’s energy plant to their customer’s property. The pipeline qualifies as a capital improvement because it satisfies all requirements of the definition. First, the pipeline is permanently attached to the taxpayer’s foundation, thus adding value to the real property. Second, the steel support structure is permanently attached to the foundation and removal would cause damage to the real property and to the pipeline itself. Finally, it is intended to be a permanent installation since it was built by the taxpayer on its own land (TSB-A-09(7), New York Commissioner of Taxation and Finance, January 30, 2009).