32636 Federal Register / Vol. 81, No. 100 / Tuesday, May 24, 2016 / Rules and Regulations 

1 81 FR 19861. 

affiliates,’’ under 13 CFR 121.104(a). 

These transactions are commonly 

referred to as interaffiliate transactions. 

The intent of this exclusion is to avoid 

counting the same receipts twice when 

determining the size of a particular 

concern. This Statement of Policy 

explains how SBA will apply the 

exclusion. 

Recent SBA size determinations and 

decisions of the Office of Hearings and 

Appeals have limited the exclusion by 

applying it only to transactions between 

affiliates that are eligible to file a 

consolidated tax return. This 

interpretation has been supported by 

reference to a parenthetical that was 

included with section 121.104(a) from 

1996 to 2004, providing that the 

exclusion would apply to interaffiliate 

amounts ‘‘(if also excluded from gross or 

total income on a consolidated return 

filed with the IRS). . . .’’ 13 CFR 

121.104(a)(1) (1996); 61 FR 3280 (Jan. 

31, 1996). While this parenthetical was 

in place, SBA excluded only those 

interaffiliate transactions that were also 

excluded from consolidated tax returns 

filed by a concern and its affiliate. This 

policy necessarily required that the 

transaction occur between two firms 

that filed consolidated returns. 

SBA deleted the parenthetical in 

2004. In the preamble to the final rule 

issued May 21, 2004, SBA stated that it 

was deleting the parenthetical because 

‘‘[w]hether a consolidated return is filed 

should have no bearing on whether 

properly documented interaffiliate 

transactions are excluded from annual 

receipts.’’ 69 FR 29192, 29196 (May 21, 

2004). Thus, since May 2004, the 

regulation has provided for an exclusion 

from receipts for ‘‘proceeds from 

transactions between a concern and its 

domestic or foreign affiliates.’’ 13 CFR 

121.104(a). The regulation does not 

include a limitation on the types of 

affiliates for which interaffiliate 

transactions can be excluded, and in no 

way ties the exclusion to a concern’s 

ability to file a consolidated tax return 

with the identified affiliate. 

SBA believes that the current 

regulatory language is clear on its face. 

It specifically excludes all proceeds 

from transactions between a concern 

and its affiliates, without limitation. 

Moreover, the regulatory history 

supports the position that the exclusion 

for interaffiliate transactions is available 

regardless of the manner of affiliation 

between a concern and its affiliate. SBA 

recognized that excluding interaffiliate 

transactions only when they are 

identified on a consolidated tax return 

often perpetuated the double-counting 

of receipts. By saying that ‘‘[w]hether a 

consolidated return is filed should have 

no bearing on whether properly 

documented interaffiliate transactions 

are excluded from annual receipts,’’ 

SBA did not mean to imply that a 

concern and its affiliate must be able to 

file a consolidated tax return in order to 

receive the exclusion from doublecounting interaffiliate transactions. 

Conversely, SBA was attempting to 

make clear that it did not support the 

practice of double-counting receipts 

between affiliates generally. 

Because the regulatory text does not 

contain a restriction, a regulatory 

change is not necessary. SBA will 

consider comments submitted regarding 

this policy. 

Statement of Policy 

SBA will not restrict the exclusion for 

interaffiliate transactions to transactions 

between a concern and a firm with 

which it could file a consolidated tax 

return. The exclusion for interaffiliate 

transactions may be applied to 

interaffiliate transactions between a 

concern and a firm with which it is 

affiliated under the principles in 13 CFR 

121.103. Where SBA is conducting a 

size determination, SBA requires that 

exclusions claimed under section 

121.104(a) be specifically identified by 

the concern whose size is at issue and 

be properly documented. This policy is 

effective immediately. 

Dated: May 18, 2016. 

Maria Contreras-Sweet, 

Administrator. 

[FR Doc. 2016–12260 Filed 5–23–16; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 93 

[Docket No. FAA–2008–0221] 

Change of Newark Liberty International 

Airport (EWR) Designation; 

Notification of Availability of Final 

CATEX Declaration and Supporting 

Material 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notification of availability. 

SUMMARY: This action announces the 

placement in the docket of the final 

documented categorical exclusion (the 

signed CATEX declaration and final 

Attachment A: Environmental Review of 

Proposed Change of Operating 

Authorization Requirement at Newark 

Liberty International Airport) for the 

redesignation of Newark Liberty 

International Airport (EWR) as a Level 

2 schedule-facilitated airport. 

DATES: May 24, 2016. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

action, contact Susan Pfingstler, System 

Operations Services, Air Traffic 

Organization, Federal Aviation 

Administration, 600 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–6462; email 

susan.pfingstler@faa.gov. 

SUPPLEMENTARY INFORMATION: On April 

6, 2016, the FAA published the ‘‘Change 

of Newark Liberty International Airport 

(EWR) Designation’’ document in order 

to redesignate Newark Liberty 

International Airport as a Level 2 

schedule-facilitated airport under the 

International Air Transport Association 

Worldwide Slot Guidelines effective for 

the winter 2016 scheduling season, 

which begins on October 30, 2016.1

On April 5, 2016, the FAA posted a 

copy of a draft of Env Rev Attach A in 

the docket associated with the April 6, 

2016 document. The FAA has corrected 

this action by posting the final CATEX 

documents (the signed CATEX 

declaration and final Attachment A: 

Environmental Review of Proposed 

Change of Operating Authorization 

Requirement at Newark Liberty 

International Airport) to the docket. 

Issued in Washington, DC, on May 18, 

2016. 

Lorelei Peter, 

Assistant Chief Counsel for Regulations. 

[FR Doc. 2016–12252 Filed 5–23–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 93 

[Docket No. FAA–2007–29320] 

Operating Limitations at John F. 

Kennedy International Airport 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Extension to Order. 

SUMMARY: This action extends the Order 

Limiting Operations at John F. Kennedy 

International Airport (JFK) published on 

January 18, 2008, and most recently 

extended March 26, 2014. The Order 

remains effective until October 27, 2018. 

DATES: This action is effective on May 

24, 2016. 

ADDRESSES: Requests may be submitted 

by mail to Slot Administration Office, 

mstockstill on DSK3G9T082PROD with RULES