Federal Register / Vol. 78, No. 173 / Friday, September 6, 2013 / Proposed Rules 54795 

The Withdrawal 

Accordingly, the notice of proposed 

rulemaking (NPRM), FAA–2013–0315, 

published in the Federal Register on 

April 9, 2013 (78 FR 21082), is 

withdrawn. 

Issued in Kansas City, Missouri, on August 

13, 2013. 

Earl Lawrence, 

Manager, Small Airplane Directorate, Aircraft 

Certification Service. 

[FR Doc. 2013–20095 Filed 9–5–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 71 

[Docket No. FAA–2013–0749; Airspace 

Docket No. 13–ASW–16] 

Proposed Amendment of Class D 

Airspace; Dallas, Addison Airport, TX 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: This action proposes to 

amend Class D airspace at Addison 

Airport, Dallas, TX. Changes to air 

traffic flows in the Dallas-Fort Worth 

metropolitan area has made it necessary 

to lower the ceiling of the airspace area 

to enhance the safety and management 

of Instrument Flight Rules (IFR) 

operations at the airport. 

DATES: Comments must be received on 

or before October 21, 2013. 

ADDRESSES: Send comments on this 

proposal to the U.S. Department of 

Transportation, Docket Operations, 1200 

New Jersey Avenue SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. You must 

identify the docket number FAA–2013– 

0749/Airspace Docket No. 13–ASW–16, 

at the beginning of your comments. You 

may also submit comments through the 

Internet at http://www.regulations.gov. 

You may review the public docket 

containing the proposal, any comments 

received, and any final disposition in 

person in the Dockets Office between 

9:00 a.m. and 5:00 p.m., Monday 

through Friday, except Federal holidays. 

The Docket Office (telephone 1–800– 

647–5527), is on the ground floor of the 

building at the above address. 

FOR FURTHER INFORMATION CONTACT: 

Scott Enander, Central Service Center, 

Operations Support Group, Federal 

Aviation Administration, Southwest 

Region, 2601 Meacham Blvd., Fort 

Worth, TX 76137; telephone: 817–321– 

7716. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

Interested parties are invited to 

participate in this proposed rulemaking 

by submitting such written data, views, 

or arguments, as they may desire. 

Comments that provide the factual basis 

supporting the views and suggestions 

presented are particularly helpful in 

developing reasoned regulatory 

decisions on the proposal. Comments 

are specifically invited on the overall 

regulatory, aeronautical, economic, 

environmental, and energy-related 

aspects of the proposal. 

Communications should identify both 

docket numbers and be submitted in 

triplicate to the address listed above. 

Commenters wishing the FAA to 

acknowledge receipt of their comments 

on this notice must submit with those 

comments a self-addressed, stamped 

postcard on which the following 

statement is made: ‘‘Comments to 

Docket No. FAA–2013–0749/Airspace 

Docket No. 13–ASW–16.’’ The postcard 

will be date/time stamped and returned 

to the commenter. 

Availability of NPRMs 

An electronic copy of this document 

may be downloaded through the 

Internet at http://www.regulations.gov. 

Recently published rulemaking 

documents can also be accessed through 

the FAA’s Web page at http://

www.faa.gov/airports_airtraffic/air_

traffic/publications/airspace_

amendments/. 

You may review the public docket 

containing the proposal, any comments 

received and any final disposition in 

person in the Dockets Office (see 

ADDRESSES section for address and 

phone number) between 9:00 a.m. and 

5:00 p.m., Monday through Friday, 

except Federal holidays. An informal 

docket may also be examined during 

normal business hours at the office of 

the Central Service Center, 2601 

Meacham Blvd., Fort Worth, TX 76137. 

Persons interested in being placed on 

a mailing list for future NPRMs should 

contact the FAA’s Office of Rulemaking 

202–267–9677, to request a copy of 

Advisory Circular No. 11–2A, Notice of 

Proposed Rulemaking Distribution 

System, which describes the application 

procedure. 

The Proposal 

This action proposes to amend Title 

14, Code of Federal Regulations 

(14 CFR), part 71 by amending Class D 

airspace at Addison Airport, Dallas, TX. 

Adjustments to air traffic flows in the 

Dallas-Fort Worth metropolitan area, 

along with restructuring of the DallasFort Worth Class B airspace area, have 

made these changes necessary. The 

airspace would extend upward from the 

surface to but not including 2,500 feet 

MSL, instead of to but not including 

3,000 feet MSL, within the 4.4-mile 

radius to retain the safety and 

management of IFR aircraft operating in 

the vicinity of Addison Airport. 

Class D airspace areas are published 

in Paragraph 5000 of FAA Order 

7400.9W, dated August 8, 2012 and 

effective September 15, 2012, which is 

incorporated by reference in 14 CFR 

71.1. The Class D airspace designation 

listed in this document would be 

published subsequently in the Order. 

The FAA has determined that this 

proposed regulation only involves an 

established body of technical 

regulations for which frequent and 

routine amendments are necessary to 

keep them operationally current. It, 

therefore, (1) is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866; (2) is not a ‘‘significant 

rule’’ under DOT Regulatory Policies 

and Procedures (44 FR 11034; February 

26, 1979); and (3) does not warrant 

preparation of a Regulatory Evaluation 

as the anticipated impact is so minimal. 

Since this is a routine matter that will 

only affect air traffic procedures and air 

navigation, it is certified that this rule, 

when promulgated, will not have a 

significant economic impact on a 

substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the U.S. Code. Subtitle 1, 

Section 106 describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the agency’s 

authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This proposed regulation is 

within the scope of that authority as it 

would amend controlled airspace at 

Addison Airport, Dallas, TX. 

Environmental Review 

This proposal will be subject to an 

environmental analysis in accordance 

with FAA Order 1050.1E, 

‘‘Environmental Impacts: Policies and 

Procedures’’ prior to any FAA final 

regulatory action. 


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54796 Federal Register / Vol. 78, No. 173 / Friday, September 6, 2013 / Proposed Rules 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 71 as 

follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g); 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9W, 

Airspace Designations and Reporting 

Points, dated August 8, 2012, and 

effective September 15, 2012, is 

amended as follows: 

Paragraph 5000 Class D airspace. 

* * * * * 

ASW TX D Dallas, Addison Airport, TX 

[Amended] 

Dallas, Addison Airport, TX 

(Lat. 32°58′07′′ N., long. 96°50′11′′ W.) 

That airspace extending upward from the 

surface, to but not including, 2,500 feet MSL 

within a 4.4-mile radius of Addison Airport, 

excluding that portion within the Dallas-Fort 

Worth, TX, Class B airspace area. This Class 

D airspace area is effective during the 

specific dates and times established in 

advance by a Notice to Airmen. The effective 

dates and times will thereafter be 

continuously published in the Airport/

Facility Directory. 

Issued in Fort Worth, TX, on August 23, 

2013. 

David P. Medina, 

Manager, Operations Support Group, ATO 

Central Service Center. 

[FR Doc. 2013–21751 Filed 9–5–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–124148–05] 

RIN 1545–BE64 

Research Expenditures 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document proposes 

regulations to amend the definition of 

research and experimental expenditures 

under section 174 of the Internal 

Revenue Code (Code). In particular, 

these proposed regulations provide 

guidance on the treatment of amounts 

paid or incurred in connection with the 

development of tangible property, 

including pilot models. The regulations 

will affect taxpayers engaged in research 

activities. This document also provides 

notice of a public hearing on these 

proposed regulations. 

DATES: Written or electronic comments 

must be received by December 5, 2013. 

Requests to speak and outlines of topics 

to be discussed at the public hearing 

scheduled for January 8, 2014, at 10 

a.m., must be received by December 5, 

2013. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–124148–05), room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–124148– 

05), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically, 

via the Federal eRulemaking Portal at 

www.regulations.gov (indicate IRS and 

REG–124148–05). The public hearing 

will be held in the IRS Auditorium, 

Internal Revenue Building, 1111 

Constitution Avenue NW., Washington, 

DC. 

FOR FURTHER INFORMATION CONTACT: 

Concerning these proposed regulations, 

David McDonnell, (202) 622–3040; 

concerning submissions of comments, 

the hearing, and/or to be placed on the 

building access list to attend the 

hearing, Oluwafunmilayo (Funmi) 

Taylor, (202) 622–7180 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Overview of 

Provisions 

Section 174—Background 

Section 174 was enacted as a part of 

the Internal Revenue Code of 1954 to 

eliminate uncertainty in the tax 

accounting treatment of research and 

experimental expenditures and to 

encourage taxpayers to carry on research 

and experimentation. See H.R. Rep. 

No.1337, 83d Cong., 2d Sess. 28 (1954); 

S. Rep. No. 1622, 83d Cong., 2d Sess. 33 

(1954). Before the enactment of section 

174, courts consistently held that the 

law required capitalization of product 

research and development costs, 

including production costs of tangible 

property used in the research process. 

Under prior law, expenditures related to 

a taxpayer’s research and 

experimentation generally were 

capitalized and held in suspense until 

the taxpayer could determine (1) 

whether or not the research had failed; 

and (2) if the research was successful, 

whether or not the research resulted in 

property that had a useful life 

determinable with reasonable accuracy. 

Research and experimental 

expenditures resulting in property with 

a useful life determinable with 

reasonable accuracy were amortized 

over the useful life of the property or, 

if intangible, may have been allocated to 

tangible assets. For example, if a design 

developed through research and 

experimentation (‘‘appropriate design’’) 

was used to produce a tangible asset 

that was used in the taxpayer’s trade or 

business or if the appropriate design 

was used to produce inventory or other 

property held for sale to customers, then 

the research costs were recovered by an 

adjustment to basis at the time the 

tangible property was used, sold, placed 

in service, or otherwise disposed of by 

the taxpayer. Where, however, projects 

were not abandoned and a useful life 

could not be definitely determined, 

taxpayers had no means of amortizing 

research expenditures. See H.R. Rep. 

No.1337, 83d Cong., 2d Sess. 28 (1954); 

S. Rep. No. 1622, 83d Cong., 2d Sess. 33 

(1954). Congress addressed this issue by 

enacting section 174, which allows 

taxpayers to either currently deduct 

research or experimental expenditures 

as they are paid or incurred or treat 

them as deferred expenses amortizable 

over a period not less than 60 months. 

See sections 174(a) and (b). Section 174 

does not define the phrase ‘‘research or 

experimental expenditures.’’ 

In 1957, the IRS published T.D. 6255 

(the 1957 Regulations) and adopted 

§ 1.174–2(a)(1), which defines the 

phrase ‘‘research or experimental 

expenditures’’ as expenditures ‘‘which 

represent research and development 

costs in the experimental or laboratory 

sense.’’ In 1994, the IRS published T.D. 

8562, which adopted amendments to 

§ 1.174–2(a)(1). The amendments 

clarified the 1957 Regulations by 

providing that the determination of 

whether costs qualify as research or 

experimental expenditures under 

section 174 depends upon whether the 

costs are incident to activities intended 

to discover information that would 

eliminate uncertainty concerning the 

development or improvement of a 

product. Applying this general rule, 

costs relating to the production of a 

product after the uncertainty relating to 


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