This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

81871 

Vol. 89, No. 196 

Wednesday, October 9, 2024 

FEDERAL TRADE COMMISSION 

16 CFR Part 1 

[File No. R407003] 

Petition for Rulemaking of Consumer 

Technology Association 

AGENCY: Federal Trade Commission. 

ACTION: Receipt of petition; request for 

comment. 

SUMMARY: Please take notice that the 

Federal Trade Commission 

(‘‘Commission’’) received a petition for 

rulemaking from the Consumer 

Technology Association (‘‘CTA’’) and 

has published that petition online at 

https://www.regulations.gov. This 

petition requests that the Commission 

clarify its application of the amended 

Trade Regulation Rule Relating to Power 

Output Claims for Amplifiers Utilized 

in Home Entertainment Products (the 

‘‘Amplifier Rule’’) or amend the 

Amplifier Rule to apply only 

prospectively to products designed, 

tested, and manufactured on or after the 

August 12, 2024 effective date. The 

Commission invites written comments 

concerning the petition. Publication of 

this petition is pursuant to the 

Commission’s Rules of Practice and 

Procedure and does not affect the legal 

status of the petition or its final 

disposition. 

DATES: Comments must identify the 

petition docket number and be filed by 

November 8, 2024. 

ADDRESSES: You may view the petition, 

identified by docket number FTC–2024– 

0039, and submit written comments 

concerning its merits by using the 

Federal eRulemaking Portal at https://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Do not submit sensitive or confidential 

information. You may read background 

documents or comments received at 

https://www.regulations.gov at any time. 

FOR FURTHER INFORMATION CONTACT: Joel 

Christie, Office of the Secretary, Federal 

Trade Commission, 600 Pennsylvania 

Avenue NW, Washington, DC 20580, 

jchristie@ftc.gov, 202–326–3297. 

SUPPLEMENTARY INFORMATION: Pursuant 

to Section 18(a)(1)(B) of the Federal 

Trade Commission Act, 15 U.S.C. 

57a(1)(B), and FTC Rule 1.31(f), 16 CFR 

1.31(f), notice is hereby given that the 

above-captioned petition has been filed 

with the Secretary of the Commission 

and has been placed on the public 

record for a period of 30 days. Any 

person may submit comments in 

support of or in opposition to the 

petition. All timely and responsive 

comments submitted in connection with 

this petition will become part of the 

public record. 

The Commission will not consider the 

petition’s merits until after the comment 

period closes. It may grant or deny the 

petition in whole or in part, and it may 

deem the petition insufficient to warrant 

commencement of a rulemaking 

proceeding. The purpose of this 

document is to facilitate public 

comment on the petition to aid the 

Commission in determining what, if 

any, action to take regarding the request 

contained in the petition. This 

document is not intended to start, stop, 

cancel, or otherwise affect rulemaking 

proceedings in any way. 

Because your comment will be placed 

on the publicly accessible website at 

https://www.regulations.gov, you are 

solely responsible for making sure your 

comment does not include any sensitive 

or confidential information. In 

particular, your comment should not 

include any sensitive personal 

information, such as your or anyone 

else’s Social Security number; date of 

birth; driver’s license number or other 

state identification number, or foreign 

country equivalent; passport number; 

financial account number; or credit or 

debit card number. You are also solely 

responsible for making sure your 

comment does not include any sensitive 

health information, such as medical 

records or other individually 

identifiable health information. In 

addition, your comment should not 

include any ‘‘trade secret or any 

commercial or financial information 

which . . . is privileged or 

confidential’’—as provided by Section 

6(f) of the FTC Act, 15 U.S.C. 46(f), and 

FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). 

(Authority: 15 U.S.C. 46; 15 U.S.C. 57a; 5 

U.S.C. 601 note.) 

April J. Tabor, 

Secretary. 

[FR Doc. 2024–23272 Filed 10–8–24; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 301 

[REG–113628–21] 

RIN 1545–BQ13 

Entities Wholly Owned by Indian Tribal 

Governments 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document contains 

proposed regulations regarding the 

Federal tax classification of entities 

wholly owned by Indian Tribal 

governments (Tribes). The proposed 

regulations would provide that entities 

that are wholly owned by Tribes and 

organized or incorporated exclusively 

under the laws of the Tribes that own 

them generally are not recognized as 

separate entities for Federal tax 

purposes. The proposed regulations 

would also provide that, for purposes of 

making certain elective payment 

elections (including determining 

eligibility for and the consequences of 

such elections) for certain energy credits 

under the Inflation Reduction Act of 

2022, these entities and certain Tribal 

corporations chartered by the 

Department of the Interior (DOI) are 

treated as an instrumentality of one or 

more Indian Tribal governments or 

subdivisions thereof. This document 

also requests comments and provides 

notice of a public hearing on the 

proposed regulations that will be in 

addition to Tribal consultation on the 

proposed regulations. 

DATES: 

Comments: Electronic or written 

comments on this proposed rule from 

the public must be received by January 

7, 2025. 

Public Hearing: The public hearing on 

these proposed regulations is scheduled 

to be held on January 17, 2025, at 10 


khammond on DSKJM1Z7X2PROD with PROPOSALS
81872 Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 

1Under the Federally Recognized Indian Tribe 

List Act of 1994, Public Law 103–454, 108 Stat. 

4791 (List Act), the Secretary of the Interior is 

required to publish annually a list of all Federallyrecognized Tribes. In Revenue Procedure 2008–55 

(2008–39 I.R.B. 768), after consultation with the 

Department of Interior (DOI), the Treasury 

Department and the IRS determined that the Indian 

tribal entities that appear on the current or future 

lists of Federally-recognized Tribes published 

annually under the List Act by the DOI, Bureau of 

Indian Affairs, are designated as Indian tribal 

governments for purposes of section 7701(a)(40). 

See 89 FR 944 (January 8, 2024) for the most current 

list published by the DOI, Bureau of Indian Affairs. 

a.m. EST. Requests to speak and 

outlines of topics to be discussed at the 

public hearing must be received by 

January 7, 2025. If no outlines are 

received by January 7, 2025, the public 

hearing will be cancelled. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at https://

www.regulations.gov (indicate IRS and 

REG–113628–21) by following the 

online instructions for submitting 

comments. Once submitted to the 

Federal eRulemaking Portal, comments 

cannot be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comments 

submitted to the IRS’s public docket. 

Send paper submissions to: 

CC:PA:01:PR (REG–113628–21), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

contact Amanda R. Markarian of the 

Office of Associate Chief Counsel 

(Passthroughs and Special Industries) at 

(202) 317–6850 (not a toll-free number); 

and concerning submissions of 

comments, the hearing, or any questions 

to attend the hearing by 

teleconferencing, contact Publications 

and Regulations Section at (202) 317– 

6901 (not a toll-free number) or 

preferably by email to publichearings@

irs.gov. If emailing, please include the 

following information in the subject 

line: Attend, Testify, or Question and 

REG–113628–21. 

SUPPLEMENTARY INFORMATION: 

Authority 

This notice of proposed rulemaking 

contains proposed amendments to 

provisions of 26 CFR part 1 (Income Tax 

Regulations) under section 6417 of the 

Internal Revenue Code (Code) and 26 

CFR part 301 (Procedure and 

Administration Regulations) under 

section 7701 of the Code that would 

address the Federal tax treatment of 

certain Tribal entities wholly owned by 

one or more Indian Tribal governments 

(proposed regulations). 

Section 6417(h) provides an express 

delegation of authority to the Secretary 

of the Treasury or her delegate 

(Secretary) relating to elective payment 

elections under section 6417 (section 

6417 elections), stating, ‘‘[t]he Secretary 

shall issue such regulations or other 

guidance as may be necessary to carry 

out the purposes of this section, 

including guidance to ensure that the 

amount of the payment or deemed 

payment made under this section is 

commensurate with the amount of the 

credit that would be otherwise 

allowable (determined without regard to 

section 38(c)).’’ 

Section 7701(a)(40) provides an 

express delegation of authority to the 

Secretary related to identifying Indian 

Tribal governments for Federal tax 

purposes, stating, ‘‘[t]he term ‘Indian 

tribal government’ means the governing 

body of any tribe, band, community, 

village, or group of Indians, or (if 

applicable) Alaska Natives, which is 

determined by the Secretary, after 

consultation with the Secretary of the 

Interior, to exercise governmental 

functions.’’ 1

Finally, section 7805(a) of the Code 

authorizes the Secretary to ‘‘prescribe 

all needful rules and regulations for the 

enforcement of [the Code], including all 

rules and regulations as may be 

necessary by reason of any alteration of 

law in relation to internal revenue.’’ 

Background 

I. Overview 

The proposed regulations under 

section 7701 would provide that an 

entity wholly owned by one or more 

Indian Tribal governments, within the 

meaning of section 7701(a)(40), that is 

organized or incorporated under the 

laws of the Tribe or Tribes that own it 

(wholly owned Tribal entity) is not 

recognized as a separate entity for 

Federal tax purposes. A single member 

limited liability company organized 

under the laws of the Tribe that owns 

it would be a wholly owned Tribal 

entity. Additionally, the proposed 

regulations would provide that wholly 

owned Tribal entities, as well as Tribes 

incorporated under section 17 of the 

Indian Reorganization Act of 1934, as 

amended, 25 U.S.C. 5124 (section 17 

corporations), or under section 3 of the 

Oklahoma Indian Welfare Act, as 

amended, 25 U.S.C. 5203 (section 3 

corporations), are treated, for purposes 

of making section 6417 elections 

(including determining eligibility for 

and the consequences of such elections), 

as instrumentalities of the Indian Tribal 

government(s) that wholly own them. 

The Treasury Department and the IRS 

consulted with DOI on these proposed 

rules because of DOI’s role in working 

with Federally-recognized Indian Tribes 

and administering a broad array of 

Federal laws that affect Federallyrecognized Indian Tribes. These 

proposed rules would address only the 

application of Federal tax law and 

would not affect the rights of Tribes and 

Tribal entities under other Federal laws. 

The Treasury Department and the IRS 

continue to consider the Federal tax 

treatment of Tribally chartered 

corporations that are owned in part by 

persons other than Tribes. The Treasury 

Department and the IRS would conduct 

Tribal consultation prior to issuing any 

additional guidance in that area. 

II. Executive Order 14112 

In December 2023, the President 

issued an executive order titled 

‘‘Reforming Federal Funding and 

Support for Tribal Nations to Better 

Embrace Our Trust Responsibilities and 

Promote the Next Era of Tribal SelfDetermination.’’ Executive Order 14112 

(Dec. 6, 2023). Executive Order 14112 

reaffirms the Executive Branch’s 

support for Tribal self-determination as 

the most effective policy for the 

economic growth of Tribal Nations and 

the economic well-being of Tribal 

citizens. Executive Order 14112 requires 

agency heads to take certain actions, 

consistent with applicable law and to 

the extent practicable, to increase access 

to ‘‘Federal funding and support 

programs for Tribal Nations’’; provide 

Tribal Nations with the flexibility to 

improve economic growth and address 

the specific needs of their communities; 

and reduce administrative burdens. 

Section 2(b) of the Executive Order 

defines ‘‘Federal funding and support 

programs for Tribal Nations’’ as 

including ‘‘funding, programs, technical 

assistance, loans, grants, or other 

financial support or direct services that 

the Federal Government provides to 

Tribal Nations or Indians because of 

their status as Indians.’’ The Treasury 

Tribal Advisory Committee has advised 

that Tribes consider ‘‘financial support’’ 

in Executive Order 14112 to include tax 

matters that range from tax credits to 

Federal tax rules that regulate Tribal 

revenue. 

Consistent with Executive Order 

14112, the Treasury Department and the 

IRS recognize the importance of 

protecting and supporting Tribal 

sovereignty and self-determination. As 

the Executive Order explains, ‘‘As we 

continue to support Tribal Nations, we 

must respect their sovereignty by better 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 81873 

2See Rev. Rul. 67–284, 1967–2 C.B. 55. However, 

Tribes generally are subject to Federal employment 

taxes. Employment taxes refers to Federal Insurance 

Contributions Act (FICA) (consisting of both social 

security and Medicare taxes), Federal 

Unemployment Tax Act (FUTA), and Income Tax 

Withholding. Section 3306(c)(7) of the Code 

provides an exception from FUTA taxes under 

certain circumstances. Further, subject to applicable 

law, including statutes (such as section 7871 of the 

Code) and treaties or agreements with the United 

States, Tribes are subject to Federal excise taxes. 

See Rev. Rul. 94–81, 1994–2 C.B. 412. 

ensuring that they are able to make their 

own decisions about where and how to 

meet the needs of their communities. No 

less than for any other sovereign, Tribal 

self-governance is about the 

fundamental right of a people to 

determine their own destiny and to 

prosper and flourish on their own 

terms.’’ These commitments build on a 

recognition of principles of sovereignty, 

sovereign immunity, and selfgovernance that have been repeatedly 

reaffirmed by the Supreme Court. See, 

e.g., Three Affiliated Tribes of the Fort 

Berthold Reservation v. Wold 

Engineering, P.C., et al., 476 U.S. 877, 

890–91 (1986); Oklahoma Tax Comm’n 

v. Citizen Band Potawatomi Indian 

Tribe of Oklahoma, 498 U.S. 505, 510 

(1991). 

III. Prior Guidance 

The Federal government has long 

recognized the unique aspects of Tribal 

sovereignty and Tribal sovereign 

immunity. Tribes themselves are not 

subject to Federal income tax under the 

Code.2 IRS guidance on the issue in the 

1960s raised questions about the extent 

to which section 17 corporations and 

section 3 corporations should share the 

Tribe’s Federal income tax status. In 

response, the IRS published further 

guidance and issued proposed 

regulations in 1996 on the treatment of 

section 17 corporations and section 3 

corporations for Federal tax purposes. 

See the notice of proposed rulemaking, 

Simplification of Entity Classification 

Rules, (PS–43–95) published in the 

Federal Register (61 FR 21989) on May 

13, 1996 (explaining the basis for the 

proposed rule later adopted as 

§ 301.7701–1(a)(3)). 

On December 18, 1996, the Treasury 

Department and the IRS published final 

regulations (TD 8697) in the Federal 

Register (61 FR 66584) under section 

7701, known as the entity classification 

regulations. Those still-existing 

regulations at § 301.7701–1(a)(3) make 

clear that entities formed under local 

laws are not always recognized as 

separate entities for Federal tax 

purposes. For example, an organization 

wholly owned by a State is not 

recognized as a separate entity for 

Federal tax purposes if it is an integral 

part of the State. Similarly, those 

regulations provide that section 17 

corporations and section 3 corporations 

are not recognized as separate entities 

for Federal tax purposes. The entity 

classification regulations, however, do 

not specifically address whether an 

organization formed under Tribal law 

and wholly owned by a Tribe (that is, 

a wholly owned Tribal entity) is 

recognized as a separate entity for 

Federal tax purposes. 

The preamble to TD 8697 states that 

the IRS received a number of comments 

asking for clarification of the tax 

treatment of wholly owned Tribal 

entities. 61 FR 66584. The preamble also 

indicated that the Treasury Department 

and the IRS continued to study the issue 

and would issue additional guidance, if 

necessary. Id. at 66585–86. 

IV. Tribal Consultation 

Over the past several decades, Tribes 

have sought clarity concerning the 

Federal tax status of Tribally chartered 

corporations that are wholly owned by 

Tribes, in part to provide certainty for 

Tribal economic development and to 

support the generation of revenue for 

Indian Tribal governments. In order to 

obtain Tribal input on the issue, and in 

accordance with Executive Order 13175 

(November 6, 2000), ‘‘Consultation and 

Coordination with Indian Tribal 

Governments,’’ and the Treasury 

Department’s Tribal Consultation Policy 

(80 FR 57434, September 23, 2015), 

superseded by Treasury Order 112–04 

(November 22, 2023), the Treasury 

Department and the IRS most recently 

held Tribal consultations on the issue 

on June 21 and June 22, 2023, October 

8 and October 10, 2019, and a listening 

session on December 3, 2019. 

During Tribal consultations, Tribes 

have explained that they view Tribally 

chartered corporations as an exercise of 

their inherent sovereign authority to 

generate governmental revenue, selfgovern the use of that revenue according 

to their own laws, and self-determine 

the use of that revenue for their 

citizenry. Tribes highlighted that 

Tribally chartered corporations enable 

Tribes to create entities that meet their 

emerging revenue opportunities, 

establish guidelines for the operation of 

these entities that are culturally 

appropriate and protect Tribal assets, 

and dissolve them when they are 

unneeded. Tribes also highlighted that 

Tribally chartered corporations are 

consistent with recent Federal policy 

that promotes Tribal sovereignty, selfgovernance, and self-determination in 

economic development activities. 

In contrast, Tribes highlighted that 

section 17 and section 3 corporations 

are not sufficient to meet their needs. 

The incorporation process for these 

entities is a lengthy multi-step Federal 

process that subjects Tribal authority to 

Federal oversight and approval, results 

in increased administrative costs to 

Tribes, and requires an act of Congress 

to dissolve the chartered entity. 

This issue has taken on increased 

salience in recent years, particularly 

with the enactment of laws, such as 

Public Law 117–169, 136 Stat. 1818 

(August 16, 2022), commonly known as 

the Inflation Reduction Act of 2022, that 

extend greater access to capital and new 

economic opportunities to certain 

governments (including Indian Tribal 

governments), tax-exempt organizations, 

and other entities. Tribes have reiterated 

their requests for guidance through 

meetings of the Treasury Tribal 

Advisory Committee and other Tribal 

consultations. 

In light of the considerations of Tribal 

sovereignty and self-determination 

described previously, the Treasury 

Department and the IRS propose to 

amend the existing section 7701 

regulations to make clear that entities 

wholly owned by Tribes and organized 

or incorporated under the laws of the 

Tribes that own them generally are not 

recognized as separate entities for 

Federal tax purposes. Accordingly, such 

entities generally would be viewed as 

one and the same as the Tribes that own 

them for Federal tax purposes and 

would therefore not be subject to 

Federal income tax. In addition, the 

Treasury Department and the IRS are 

proposing to amend the existing 

regulations under section 6417 to 

provide that such entities and section 17 

and section 3 corporations are treated as 

instrumentalities of the Indian Tribal 

governments that own them for 

purposes of making an elective payment 

election under section 6417 (including 

determining eligibility for and the 

consequences of the election). This 

would mean that the wholly owned 

Tribal entity itself, rather than the 

Indian Tribal government(s) owning the 

entity, would make a section 6417 

election for an applicable credit 

determined with respect to any 

applicable credit property held directly 

by the wholly owned Tribal entity. 

The Treasury Department and the IRS 

will conduct Tribal consultation before 

finalizing these regulations to obtain 

additional input on questions involving 

these proposed regulations. The content 

of these consultations will be published 

in a Tribal consultation summary. 


khammond on DSKJM1Z7X2PROD with PROPOSALS
81874 Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 

Explanation of Provisions 

I. In General 

These proposed regulations would 

address the Federal tax treatment of 

wholly owned Tribal entities (that is, 

entities wholly owned by Tribes and 

organized or incorporated exclusively 

under the laws of the Tribes that own 

them). Specifically, these proposed 

regulations would provide that such 

entities are not recognized as separate 

entities for Federal tax purposes (other 

than for purposes related to section 

6417 elections described in part III of 

this Explanation of Provisions). The 

proposed regulations recognize that 

these entities share core characteristics 

with section 17 corporations and section 

3 corporations, including that they are 

wholly owned by Tribes and benefit the 

Tribes by facilitating economic growth 

and Tribal rebuilding. Accordingly, just 

as section 17 corporations and section 3 

corporations are not recognized as 

separate entities for Federal tax 

purposes and are thus not subject to 

Federal income tax on income earned in 

the conduct of commercial business on 

or off the organizing Tribe’s reservation, 

the proposed regulations would confirm 

that wholly owned Tribal entities would 

not be recognized as separate entities for 

Federal tax purposes and would not be 

subject to Federal income tax on income 

earned in the conduct of commercial 

business on or off the organizing Tribe’s 

reservation. 

II. Requirements 

A. Tribal Law 

The proposed regulations would 

recognize that Tribal law is established 

by each individual Tribe. Where 

multiple Tribes work together to 

establish an entity that is owned by 

more than one Tribe, each Tribe would 

need to provide for the entity under its 

own laws. 

B. Wholly Owned 

As is the case for determining the 

ownership of all corporations (including 

a corporation wholly owned by a State 

or other government), the determination 

of whether an outside investor (a person 

other than a Tribe) holds stock in a 

Tribal entity, such that it would fail to 

be wholly owned by one or more Indian 

Tribal governments for Federal tax 

purposes, would take into account 

principles of Federal tax law, such as 

the substance over form doctrine, debt 

versus equity analyses, and the 

economic substance doctrine. 

Under these proposed regulations, an 

entity could satisfy the wholly owned 

requirement through a multi-Tribe 

ownership structure, so long as the 

entity is organized or incorporated 

under each Tribe’s laws. Proposed 

§ 301.7701–1(a)(4)(iii)(D) (Example 4) 

illustrates an example of the 

organizational structure of such an 

entity. 

III. Elective Pay 

The proposed regulations would 

revise the elective pay regulations to 

provide that, for purposes of making a 

section 6417 election (including 

determining eligibility for and the 

consequences of such election), entities 

described in proposed § 301.7701– 

1(a)(4)(i) (that is, section 17 

corporations, section 3 corporations, 

and wholly owned Tribal entities), 

would be treated as instrumentalities of 

Indian Tribal governments. Under 

existing § 1.6417–1(f), section 17 

corporations and section 3 corporations 

are treated as ‘‘disregarded entities’’ for 

purposes of section 6417, and the 

applicable-entity owner of a disregarded 

entity that directly holds applicable 

credit property must make a section 

6417 election for applicable credits 

determined with respect to such 

property pursuant to § 1.6417–2(a)(1)(ii). 

Treatment as instrumentalities under 

these proposed regulations would mean 

that an entity described in proposed 

§ 301.7701–1(a)(4)(i) that directly owns 

applicable credit property would make 

the section 6417 election itself, rather 

than its owner or owners. Such an entity 

generally would do so by filing a Form 

990–T, Exempt Organization Business 

Income Tax Return, as described in 

§ 1.6417–1(b)(2), using its own name 

and employer identification number. 

The Treasury Department and the IRS 

are proposing this rule pursuant to the 

Secretary’s authority under section 

6417(h) to issue such regulations or 

other guidance as may be necessary to 

carry out the purposes of section 6417, 

including guidance to ensure that the 

amount of the payment or deemed 

payment made under section 6417 is 

commensurate with the amount of the 

credit that would be otherwise 

allowable (determined without regard to 

section 38(c) of the Code). Given that 

proposed § 301.7701–1(a)(4)(i) would 

generally provide that an entity owned 

by multiple Tribes is not recognized as 

a separate entity from those Tribes for 

Federal tax purposes, treating the entity 

as a ‘‘disregarded entity’’ for section 

6417 purposes would have required 

each of the entity’s owners to make a 

section 6417 election with respect to an 

applicable credit determined with 

respect to an applicable credit property 

owned directly by the entity. That 

approach would have been 

administratively burdensome and 

complex for the Tribes that own the 

entity as well as for the IRS. Given the 

need for coordination among these 

Tribes in making consistent tax filings, 

it could also have resulted in cases in 

which the amount of the total payments 

or deemed payments claimed under 

section 6417 may not be commensurate 

with the amount of the underlying 

credit. In addition, even for an entity 

owned by a single Tribe, the entity 

directly owning the applicable credit 

property may be better positioned to 

fulfill the pre-filing registration and 

other requirements to make the section 

6417 election. Accordingly, the 

proposed regulations are intended to 

simplify the filing obligations for Tribes 

and their wholly owned entities and 

ensure that the amount of any payment 

or deemed payment made under section 

6417 will be commensurate with the 

amount of the credit that would be 

otherwise allowable. 

In general, the determination of 

whether an entity is an agency or 

instrumentality is analyzed on a facts 

and circumstances basis. In determining 

whether an entity is an agency or 

instrumentality for Federal tax 

purposes, Federal courts have applied a 

test similar to the six-factor test in Rev. 

Rul. 57–128, 1957–1 C.B. 311, which 

generally provides guidance on whether 

an entity is an instrumentality for 

purposes of the exemptions from 

employment taxes under sections 

3121(b)(7) and 3306(c)(7). See, e.g., 

Berini v. Federal Reserve Bank of St. 

Louis, Eighth District, 420 F. Supp. 2d 

1021 (E.D. Mo. 2005) and Rose v. Long 

Island Railroad Pension Plan, 828 F.2d 

910, 918 (2d Cir. 1987), cert. denied, 485 

U.S. 936 (1988). 

No inferences should be drawn from 

the instrumentality treatment in 

proposed § 1.6417–1(c)(7) as to whether 

any particular entity is or is not an 

instrumentality in other contexts. The 

special rule in proposed § 1.6417–1(c)(7) 

is informed in part by administrative 

considerations and would be issued 

under the express delegation of 

authority in section 6417(h) to 

promulgate rules that carry out the 

purposes of section 6417 and ensure 

that the amount of the payment or 

deemed payment made thereunder is 

commensurate with the amount of the 

underlying credit. 

Proposed Applicability Dates 

These proposed regulations would, 

upon finalization, apply to taxable years 

ending after October 9, 2024. The 

proposed regulations would also, upon 

finalization, generally allow an entity 

the option to apply proposed 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 81875 

§ 301.7701–1(a)(4), including the option 

to apply proposed § 1.6417–1(c)(7) and 

(f), to taxable years ending on or before 

October 9, 2024, provided that the 

Indian Tribal government(s) that own 

the entity also apply § 301.7701–1(a)(4), 

and § 1.6417–1(c)(7) and (f) as 

applicable, consistently with such entity 

for all such taxable years. However, this 

option would not be available for any 

taxable period for a Federal excise tax 

or employment tax with respect to 

which the entity was, as of October 9, 

2024, a party to any administrative or 

judicial proceeding. 

Until the date final regulations are 

published in the Federal Register, an 

entity described in proposed 

§ 301.7701–1(a)(4)(i) generally may rely 

on the proposed regulations for taxable 

years ending on or before that date, 

provided that the Indian Tribal 

government(s) that own the entity do so 

consistently with such entity for all 

such taxable years. However, an entity 

described in proposed § 301.7701– 

1(a)(4)(i) may not rely on the proposed 

regulations for any taxable period for a 

Federal excise tax or employment tax 

with respect to which the entity was, as 

of October 9, 2024, a party to any 

administrative or judicial proceeding. 

Reliance and the proposed option to 

apply the regulations retroactively are 

not provided for any taxable period for 

a Federal excise or employment tax 

subject to pending administrative or 

judicial proceedings as of October 9, 

2024, because reliance and retroactive 

application of these regulations in that 

context could create certain unintended 

and technical procedural questions. 

This exception to reliance on the 

proposed regulations and the proposed 

option to retroactively apply these 

regulations is limited to the Federal 

excise and employment tax context 

because these questions would not arise 

in the context of a Federal income tax 

administrative or judicial proceeding. 

Special Analyses 

I. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

Executive Order 13175 (Consultation 

and Coordination With Indian Tribal 

Governments) prohibits an agency from 

publishing any rule that has Tribal 

implications if the rule either imposes 

substantial, direct compliance costs on 

Indian Tribal governments and is not 

required by statute, or preempts Tribal 

law, unless the agency meets the 

consultation and funding requirements 

of section 5 of the Executive order. This 

proposed rule would neither impose 

substantial, direct compliance costs on 

Indian Tribal governments nor preempt 

Tribal law within the meaning of the 

Executive order. 

II. Executive Order 14112: Reforming 

Federal Funding and Support for Tribal 

Nations To Better Embrace Our Trust 

Responsibilities and Promote the Next 

Era of Tribal Self-Determination 

Consistent with Executive Order 

14112 (described previously in the 

Background section), these proposed 

regulations would further Tribal selfdetermination and self-governance and 

reduce administrative burdens by 

providing entities wholly owned by 

Tribes and organized or incorporated 

under the laws of the Tribes that own 

them with the same Federal tax 

treatment that applies to section 17 

corporations and section 3 corporations. 

III. Regulatory Planning and Review 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6 of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520) (PRA) generally 

requires that a Federal agency obtain the 

approval of the Office of Management 

and Budget (OMB) before collecting 

information from the public, whether 

such collection of information is 

mandatory, voluntary, or required to 

obtain or retain a benefit. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless the 

collection of information displays a 

valid control number. 

The collection of information in these 

regulations contain reporting and 

recordkeeping requirements. The 

recordkeeping requirements mentioned 

within these final regulations are 

considered general tax records under 

§ 1.6001–1(e). These records are 

required for the IRS to validate that 

taxpayers have met the regulatory 

requirements and are entitled to make 

an elective payment election and to 

verify the Federal tax classification of 

entities described in these proposed 

regulations. For PRA purposes, general 

tax records are already approved by 

OMB under 1545–0047 for tax-exempt 

organizations and government entities. 

These regulations also mention 

reporting requirements related to 

making elections under section 6417. 

These elections will be made by 

taxpayers on Forms 990–T, and credit 

calculations will be made on Form 3800 

and supporting forms. These forms are 

approved under 1545–0047 for taxexempt organizations and governmental 

entities. 

V. Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6), the Secretary 

of the Treasury hereby certifies that the 

proposed regulations will not have a 

significant economic impact on a 

substantial number of small entities 

pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6). These proposed 

regulations would affect entities that are 

wholly owned by Tribes. Additionally, 

no added burden is created through 

these proposed regulations; rather, these 

proposed regulations would expand the 

definition of an eligible entity for 

section 6417 of the Code but does not 

expand the requirements for entities to 

make the elective pay election. 

Although data is not readily available 

about the number of small entities that 

are potentially affected by this rule, it is 

possible that a substantial number of 

small entities may be affected. 

To the extent the entities described in 

these regulations make elections under 

section 6417, the Treasury Department 

and the IRS certify the final regulatory 

flexibility analysis undertaken in TD 

9988. 

For the reasons stated, a regulatory 

flexibility analysis under the Regulatory 

Flexibility Act is not required. The 

Treasury Department and the IRS invite 

comments on the impact of the 

proposed regulations on small entities. 

Pursuant to section 7805(f), this 

notice of proposed rulemaking has been 

submitted to the Chief Counsel for the 

Office of Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

VI. Unfunded Mandates Reform Act 

Section 202 of the Unfunded Mandate 

Reform Act of 1995 requires that 

agencies assess anticipated costs and 

benefits and take certain other actions 

before issuing a final rule that includes 

any Federal mandate that may result in 

expenditures in any one year by a State, 

local, or Indian Tribal government, in 

the aggregate, or by the private sector, of 

$100 million (updated annually for 

inflation). These proposed regulations 

do not include any Federal mandate that 

may result in expenditures by State, 

local, or Indian Tribal governments or 

by the private sector in excess of that 

threshold. 


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81876 Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 

VII. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has Federalism implications if 

the rule either imposes substantial, 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

executive order. These proposed 

regulations do not have Federalism 

implications and do not impose 

substantial, direct compliance costs on 

State and local governments or preempt 

State law within the meaning of the 

executive order. 

Comments and Public Hearing 

Consideration will be given to 

comments received in Tribal 

consultation and comments regarding 

the notice of proposed rulemaking that 

are submitted timely to the IRS as 

prescribed in the preamble under the 

ADDRESSES section. The Treasury 

Department and the IRS request 

comments on all aspects of the proposed 

regulations, including the application of 

the proposed regulations in the context 

of federal employment and excise taxes. 

All commenters are strongly encouraged 

to submit comments electronically. All 

comments will be made available at 

https://www.regulations.gov. Once 

submitted to the Federal eRulemaking 

Portal, comments cannot be edited or 

withdrawn. 

A public hearing will be held on 

January 17, 2025, beginning at 10 a.m. 

ET, in the Auditorium at the Internal 

Revenue Building, 1111 Constitution 

Avenue NW, Washington, DC. Due to 

building security procedures, visitors 

must enter at the Constitution Avenue 

entrance. In addition, all visitors must 

present photo identification to enter the 

building. Because of access restrictions, 

visitors will not be admitted beyond the 

immediate entrance area more than 30 

minutes before the hearing starts. 

Pursuant to Announcement 2023–16, 

2023–20 I.R.B. 854 (May 15, 2023), the 

public hearing is scheduled to be 

conducted in person, but the IRS will 

provide a telephonic option for 

individuals who wish to attend or 

testify at the hearing by telephone. 

The rules of 26 CFR 601.601(a)(3) 

apply to the hearing. Persons who wish 

to present oral comments at the hearing 

must submit an outline of the topics to 

be discussed as well as the time to be 

devoted to each topic January 7, 2025. 

A period of ten minutes will be 

allocated to each person for making 

comments. After the deadline for 

receiving outlines has passed, the IRS 

will prepare an agenda containing the 

schedule of speakers. Copies of the 

agenda will be made available free of 

charge at the hearing. If no outlines of 

the topics to be discussed at the hearing 

are received by January 7, 2025, the 

public hearing will be cancelled. If the 

public hearing is cancelled, a notice of 

cancellation of the public hearing will 

be published in the Federal Register. 

Individuals who want to testify in 

person at the public hearing must send 

an email to publichearings@irs.gov to 

have your name added to the building 

access list. The subject line of the email 

must contain the regulation number 

REG–113628–21 and the language 

TESTIFY In Person. For example, the 

subject line may say: ‘‘Request to 

TESTIFY In Person at Hearing for REG– 

113628–21.’’ 

Individuals who want to testify by 

telephone at the public hearing must 

send an email to publichearings@irs.gov 

to receive the telephone number and 

access code for the hearing. The subject 

line of the email must contain the 

regulation number REG–113628–21 and 

the language TESTIFY Telephonically. 

For example, the subject line may say: 

‘‘Request to TESTIFY Telephonically at 

Hearing for REG–113628–21.’’ 

Individuals who want to attend the 

public hearing in person without 

testifying must also send an email to 

publichearings@irs.gov to have your 

name added to the building access list. 

The subject line of the email must 

contain the regulation number (REG– 

113628–21) and the language ATTEND 

In Person. For example, the subject line 

may say: ‘‘Request to ATTEND Hearing 

In Person for REG–113628–21.’’ 

Requests to attend the public hearing 

must be received by 5 p.m. ET on 

January 15, 2025. 

Individuals who want to attend the 

public hearing telephonically without 

testifying must send an email to 

publichearings@irs.gov to receive the 

telephone number and access code for 

the hearing. The subject line of the 

email must contain the regulation 

number (REG–113628–21) and the 

language ATTEND Hearing 

Telephonically. For example, the 

subject line may say: ‘‘Request to 

ATTEND Hearing Telephonically for 

REG–113628–21.’’ Requests to attend 

the public hearing must be received by 

5 p.m. ET on January 15, 2025. 

The hearing will be made accessible 

to people with disabilities. To request 

special assistance during the hearing, 

contact the Publications and 

Regulations Branch of the Office of 

Associate Chief Counsel (Procedure and 

Administration) by sending an email to 

publichearings@irs.gov (preferred) or by 

telephone at (202) 317–6901 (not a tollfree number) by 5 p.m. ET on January 

14, 2025. 

Statement of Availability of IRS 

Documents 

Rev. Rul. 94–81, Rev. Rul. 94–65, Rev. 

Rul. 94–16, Rev. Rul. 67–284, and Rev. 

Rul. 57–128 are published in the 

Internal Revenue Bulletin (or 

Cumulative Bulletin) and are available 

from the Superintendent of Documents, 

U.S. Government Publishing Office, 

Washington, DC 20402, or by visiting 

the IRS website at https://www.irs.gov. 

Drafting Information 

The principal authors of these 

proposed regulations are attorneys in 

the Office of Associate Chief Counsel 

(Passthroughs and Special Industries), 

Branch 1. However, other personnel 

from the Treasury Department and the 

IRS participated in their development. 

List of Subjects 

26 CFR Part 1 

Income taxes, Reporting and record 

keeping requirements. 

26 CFR Part 301 

Procedure and Administration. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and the IRS propose to amend 26 CFR 

parts 1 and 301 as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * * 

■ Par. 2. Section 1.6417–1 is amended 

by: 

■ 1. Revising paragraph (c) introductory 

text; 

■ 2. Removing the semicolon from the 

end of paragraphs (c)(1)(ii) and (c)(2) 

through (5) and adding a period in their 

places; 

■ 3. Removing ‘‘; and’’ from the end of 

paragraph (c)(6) and adding the text a 

period in its place; and 

■ 4. Revising paragraphs (c)(7), (f), and 

(q). 

The revisions read as follows: 

§ 1.6417–1 Elective payment election of 

applicable credits. 

* * * * * 

(c) Applicable entity. The term 

applicable entity means any entity 

described in paragraph (c)(1) through (7) 

of this section. 

* * * * * 


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Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 81877 

(7) An agency or instrumentality of 

any applicable entity described in 

paragraph (c)(1)(ii) or (c)(2) or (3) of this 

section. For purposes of making a 

section 6417 election (including 

determining eligibility for and the 

consequences of such election), an 

entity described in § 301.7701–1(a)(4)(i) 

of this chapter is treated as an 

instrumentality of the Indian Tribal 

government(s) or subdivision(s) thereof 

that own(s) it. 

* * * * * 

(f) Disregarded entity. The term 

disregarded entity means an entity that 

is disregarded as, or not recognized as, 

an entity separate from its owner for 

Federal income tax purposes under 

§ 301.7701–1(a)(3) or §§ 301.7701–2 and 

301.7701–3 of this chapter. See 

paragraph (c)(7) of this section regarding 

entities described in § 301.7701– 

1(a)(4)(i) of this chapter. 

* * * * * 

(q) Applicability dates—(1) In general. 

Except as provided in paragraph (q)(2) 

of this section, this section applies to 

taxable years ending on or after March 

11, 2024. For taxable years ending 

before March 11, 2024, taxpayers may 

choose to apply the rules of §§ 1.6417– 

1 through 1.6417–4 and 1.6417–6, 

provided the taxpayers apply the rules 

in their entirety and in a consistent 

manner. 

(2) Paragraphs (c)(7) and (f) of this 

section. Paragraphs (c)(7) and (f) of this 

section apply to taxable years ending 

after October 9, 2024. For taxable years 

ending on or before October 9, 2024, an 

entity described in § 301.7701–1(a)(4)(i) 

of this chapter may choose to apply 

paragraphs (c)(7) and (f) of this section 

as contained in 26 CFR part 1, revised 

October 9, 2024 by following the 

Federal tax reporting requirements in a 

manner consistent with those provisions 

for all such years, but only if the Indian 

Tribal government(s) that own the entity 

also apply paragraphs (c)(7) and (f) of 

this section consistently with such 

entity for all such taxable years. 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Par. 3. The authority citation for part 

301 is amended by adding an entry for 

§ 301.7701–1(a)(4) in numerical order to 

read in part as follows: 

Authority: 26 U.S.C. 7805 * * * * 

* * * * * 

Section 301.7701–1(a)(4) also issued under 

26 U.S.C. 7701(a)(40). 

* * * * * 

■ Par. 4. Section 301.7701–1 is 

amended by: 

■ 1. Revising paragraph (a)(3); 

■ 2. Redesignating paragraph (a)(4) as 

paragraph (a)(5); 

■ 3. Adding new paragraph (a)(4); and 

■ 4. Revising paragraph (f). 

The revisions and addition read as 

follows: 

§ 301.7701–1 Classification of 

organizations for federal tax purposes. 

(a) * * * 

(3) Certain State and local law entities 

not recognized. An entity formed under 

State or local law is not always 

recognized as a separate entity for 

Federal tax purposes. For example, an 

organization wholly owned by a State is 

not recognized as a separate entity for 

Federal tax purposes if it is an integral 

part of the State. 

(4) Certain Tribal entities—(i) In 

general. Except as provided in 

paragraph (a)(4)(ii) of this section, 

Tribes incorporated under section 17 of 

the Indian Reorganization Act of 1934, 

as amended, 25 U.S.C. 5124 (section 17 

corporation), or under section 3 of the 

Oklahoma Indian Welfare Act, as 

amended, 25 U.S.C. 5203 (section 3 

corporation), are not recognized as 

separate entities for Federal tax 

purposes. Also, except as provided in 

paragraph (a)(4)(ii) of this section, 

entities wholly owned by one or more 

Indian Tribal governments (within the 

meaning of section 7701(a)(40) of the 

Code) and organized or incorporated 

exclusively under the laws of the Indian 

Tribal government(s) that own them 

(wholly owned Tribal entity) are not 

recognized as separate entities for 

Federal tax purposes. 

(ii) Elections under section 6417. See 

§ 1.6417–1(c)(7) of this chapter for the 

treatment of section 17 corporations, 

section 3 corporations, and wholly 

owned Tribal entities described in 

paragraph (a)(4)(i) of this section for the 

purposes of making an elective payment 

election under section 6417 of the Code 

(section 6417 election), including 

determining eligibility for and the 

consequences of such election. 

(iii) Examples. The following 

examples illustrate the application of 

paragraph (a)(4)(i) and (ii) of this 

section. For purposes of these examples, 

all references to a Tribe are references 

to an Indian Tribal government within 

the meaning of section 7701(a)(40). 

(A) Example 1. Tribe B incorporates 

Corporation X pursuant to Tribe B’s 

Corporations Ordinance, which governs 

the purpose, formation, and operation of 

commercial entities. Tribe B owns all 

the shares of Corporation X. Corporation 

X is therefore wholly owned by Tribe B 

and organized or incorporated 

exclusively under the laws of Tribe B. 

As a result, Corporation X is not 

recognized as a separate entity from 

Tribe B for Federal tax purposes, except 

for the purposes described in § 1.6417– 

1(c)(7) of this chapter. Accordingly, 

Corporation X is not subject to Federal 

income tax. Under § 1.6417–1(c)(7) of 

this chapter, Corporation X is treated as 

an instrumentality of Tribe B for the 

purposes of making a section 6417 

election (including determining 

eligibility for and the consequences of 

such election). Thus, Corporation X, 

rather than Tribe B, would be the 

applicable entity for purposes of making 

a section 6417 election for any 

applicable credit (as defined in section 

6417(b)) relating to property held or 

activities conducted by Corporation X. 

(B) Example 2. Same facts as in 

paragraph (a)(4)(iii)(A) of this section 

(Example 1), except that the board of 

Corporation X, pursuant to Tribe B’s 

Corporations Ordinance, organizes a 

subsidiary, Corporation Z, to pursue a 

limited line of new business. 

Corporation X owns all the shares of 

Corporation Z. Corporation Z is 

therefore wholly owned by Tribe B and 

organized or incorporated exclusively 

under the laws of Tribe B. As a result, 

neither Corporation X nor Corporation Z 

is recognized as an entity separate from 

Tribe B for Federal tax purposes, except 

for the purposes described in § 1.6417– 

1(c)(7) of this chapter. Accordingly, 

Corporation Z is not subject to Federal 

income tax. Under § 1.6417–1(c)(7) of 

this chapter, Corporation X and 

Corporation Z are each treated as an 

instrumentality of Tribe B for the 

purposes of making a section 6417 

election (including determining 

eligibility for and the consequences of 

such election). Thus, Corporation Z, 

rather than Corporation X or Tribe B, 

would be the applicable entity for 

purposes of making a section 6417 

election for any applicable credit 

relating to property held or activities 

conducted by Corporation Z. As in 

Example 1, Corporation X would 

continue to be the applicable entity for 

purposes of making a section 6417 

election for any applicable credit 

relating to property held or activities 

conducted by Corporation X. 

(C) Example 3. Tribe B incorporates a 

section 17 corporation. The section 17 

corporation subsequently incorporates 

Corporation J pursuant to Tribe B’s 

Corporations Ordinance, which governs 

the purpose, formation, and operation of 

commercial entities. The section 17 

corporation owns all the shares of 

Corporation J. Corporation J is therefore 

treated as wholly owned by Tribe B and 

organized or incorporated exclusively 

under the laws of Tribe B. As a result, 

Corporation J is not recognized as a 


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81878 Federal Register / Vol. 89, No. 196 / Wednesday, October 9, 2024 / Proposed Rules 

separate entity from Tribe B for Federal 

tax purposes, except for the purposes 

described in § 1.6417–1(c)(7) of this 

chapter. Accordingly, neither the 

section 17 corporation nor Corporation 

J is subject to Federal income tax. Under 

§ 1.6417–1(c)(7) of this chapter, the 

section 17 corporation and Corporation 

J are each treated as an instrumentality 

of Tribe B for the purposes of making a 

section 6417 election (including 

determining eligibility for and the 

consequences of such election). Thus, 

the section 17 corporation, rather than 

Tribe B, would be the applicable entity 

for purposes of making a section 6417 

election for any applicable credit 

relating to property held or activities 

conducted by the section 17 

corporation. In addition, Corporation J, 

rather than Tribe B or the section 17 

corporation, would be the applicable 

entity for purposes of making a section 

6417 election for any applicable credit 

relating to property held or activities 

conducted by Corporation J. The 

analysis would be the same if Tribe B 

had organized its business as a single 

member limited liability company 

pursuant to the Tribe’s business code 

instead of incorporating Corporation J. 

(D) Example 4. Pursuant to their 

respective Tribal laws, Tribe A, Tribe B, 

Tribe C, and Tribe D organize 

Corporation K via a resolution approved 

by their respective Indian Tribal 

governments. Each Tribe owns 25% of 

the shares of Corporation K. Corporation 

K is therefore wholly owned by Indian 

Tribal governments and organized or 

incorporated exclusively under the laws 

of each Indian Tribal government that 

owns it. As a result, Corporation K is 

not recognized as a separate entity from 

the Tribes for Federal tax purposes, 

except for the purposes described in 

§ 1.6417–1(c)(7) of this chapter. 

Accordingly, Corporation K is not 

subject to Federal income tax. Under 

§ 1.6417–1(c)(7) of this chapter, 

Corporation K is treated as an 

instrumentality of Tribe A, Tribe B, 

Tribe C, and Tribe D for the purposes of 

making a section 6417 election 

(including determining eligibility for 

and the consequences of such election). 

Thus, Corporation K, rather than Tribe 

A, Tribe B, Tribe C, or Tribe D, would 

be the applicable entity for purposes of 

making a section 6417 election for any 

applicable credit relating to property 

held or activities conducted by 

Corporation K. 

* * * * * 

(f) Applicability dates—(1) In general. 

Except as provided in paragraph (f)(2) of 

this section, the rules of this section are 

applicable as of January 1, 1997. 

(2) Exceptions—(i) Paragraph (a)(4) of 

this section. The rules of paragraph 

(a)(4) of this section apply to taxable 

years ending after October 9, 2024. In 

general, an entity may choose to apply 

paragraph (a)(4) of this section to 

taxable years ending on or before 

October 9, 2024 if the Indian Tribal 

government(s) that own the entity also 

apply paragraph (a)(4) of this section 

consistently with such entity for all 

such taxable years. However, an entity 

may not choose to apply paragraph 

(a)(4) of this section to any taxable 

period for a Federal excise tax or 

Federal employment tax with respect to 

which the entity was, as of October 9, 

2024, a party to any administrative or 

judicial proceeding. 

(ii) Paragraph (c) of this section. The 

rules of paragraph (c) of this section are 

applicable on January 5, 2009. 

Douglas W. O’Donnell, 

Deputy Commissioner. 

[FR Doc. 2024–23142 Filed 10–7–24; 4:15 pm] 

BILLING CODE 4830–01–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 660 

RIN 0648–BN15 

Magnuson-Stevens Act Provisions; 

Fisheries Off West Coast States; 

Pacific Coast Groundfish Fishery; 

Pacific Coast Groundfish Fishery 

Management Plan; Amendment 34; 

Groundfish Exclusion Area for Coral 

Research and Restoration 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Notice of availability of 

proposed fishery management plan 

amendment; request for comments. 

SUMMARY: NMFS announces that the 

Pacific Fishery Management Council 

(Council) submitted amendment 34 to 

the Pacific Coast Groundfish Fishery 

Management Plan (Groundfish FMP) to 

the Secretary of Commerce for review. If 

approved, amendment 34 would modify 

the groundfish exclusion areas (GEA) 

section in the Groundfish FMP and refer 

to the GEAs described in Federal 

regulation. 

DATES: Comments on amendment 34 

must be received on or before Sunday, 

December 8, 2024. 

ADDRESSES: You may submit comments 

on this document, identified by NOAA– 

NMFS–2024–0081, by the following 

method: 

• Electronic Submission: Submit all 

electronic public comments via the 

Federal e-Rulemaking Portal. Go to 

https://www.regulations.gov and enter 

NOAA–NMFS–2024–0081 in the Search 

box. Click on the ‘‘Comment’’ icon, 

complete the required fields, and enter 

or attach your comments. 

Instructions: Comments sent by any 

other method, to any other address or 

individual, or received after the end of 

the comment period, may not be 

considered by NMFS. All comments 

received are a part of the public record 

and will generally be posted for public 

viewing on https://www.regulations.gov 

without change. All personal identifying 

information (e.g., name, address, etc.), 

confidential business information, or 

otherwise sensitive information 

submitted voluntarily by the sender will 

be publicly accessible. NMFS will 

accept anonymous comments (enter ‘‘N/ 

A’’ in the required fields if you wish to 

remain anonymous). 

Electronic copies of proposed 

amendment 34 and the draft analysis 

prepared for this action may be obtained 

from https://www.regulations.gov and 

the NMFS West Coast Region website at 

https://www.fisheries.noaa.gov/region/ 

west-coast. 

FOR FURTHER INFORMATION CONTACT: 

Megan Mackey, 206–526–6140, 

megan.mackey@noaa.gov. 

SUPPLEMENTARY INFORMATION: NMFS 

manages the groundfish fisheries in the 

exclusive economic zone (EEZ) seaward 

of Washington, Oregon, and California 

under the Groundfish FMP. The Council 

prepared and NMFS implemented the 

Groundfish FMP under the authority of 

the Magnuson-Stevens Act, 16 U.S.C. 

1801 et seq. and by regulations at 50 

CFR parts 600 and 660. The MagnusonStevens Act requires that each regional 

fishery management council submit any 

FMP or plan amendment it prepares to 

NMFS for review and approval, 

disapproval, or partial approval by the 

Secretary of Commerce. The MagnusonStevens Act also requires that NMFS, 

upon receiving an FMP or amendment, 

immediately publish a notice that the 

FMP or amendment is available for 

public review and comment. This notice 

announces that the proposed 

amendment 34 to the Groundfish FMP 

is available for public review and 

comment. NMFS will consider the 

public comments received during the 

comment period described above in 

determining whether to approve, 

partially approve, or disapprove 

amendment 34 to the Groundfish FMP. 


khammond on DSKJM1Z7X2PROD with PROPOSALS