In the 1943 case Wisconsin Gas & Electric Co. v. United States, the Supreme Court ruled on a dispute regarding tax deductions for utility companies. The Wisconsin Gas and Electric Company had claimed depreciation deductions on its federal income tax returns for certain properties it owned that were used in generating electricity. However, these claims were rejected by the Commissioner of Internal Revenue who argued that such property was not depreciable because it did not have a determinable useful life due to continuous repairs and replacements which maintained them indefinitely. The company appealed this decision arguing that despite regular maintenance, wear and tear would eventually render their assets useless thus justifying their claim for depreciation deduction under Section 23(l) of the Revenue Act of 1938. The Supreme Court sided with the government stating that if an asset is kept in constant repair or replaced when necessary so as to maintain its original condition without decline in value then no allowance should be made for depreciation since there's no loss in value from exhaustion, wear and tear.

In the dissenting opinion for Wisconsin Gas & Electric Co. v. United States, it was argued that the majority's decision to uphold a tax on interstate electricity transmission was incorrect and inconsistent with previous rulings of the court. The dissenting justices believed that this tax constituted an undue burden on interstate commerce and thus violated the Commerce Clause of the Constitution. They pointed out that while states have broad power to levy taxes, they cannot do so in a way that discriminates against or unduly burdens interstate commerce - which they believe this tax does by its very nature as it only applies to electricity transmitted across state lines. Furthermore, they disagreed with the majority's assertion that because some aspects of electrical generation and distribution are local in nature, all aspects can be taxed locally without violating federal law or constitutionally protected rights.