Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Proposed Rules 95727 

PART 273.10—DETERMINING 

HOUSEHOLD ELIGIBILITY AND 

BENEFIT LEVELS 

■ 1. The authority citation for part 273 

continues to read as follows: 

Authority: 7 U.S.C. 2011–2036. 

■ 2. In § 273.10, amend paragraph 

(e)(4)(i) to remove the word ‘‘Honolulu’’ 

and adding in its place ‘‘Hawaii’’. 

Tameka Owens, 

Acting Administrator and Assistant 

Administrator, Food and Nutrition Service. 

[FR Doc. 2024–27853 Filed 12–2–24; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–106595–22] 

RIN 1545–BQ83 

Substantiation Requirements and 

Qualified Nonpersonal Use Vehicles 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document sets forth 

proposed regulations relating to the 

definition of qualified nonpersonal use 

vehicles. Qualified nonpersonal use 

vehicles are excepted from the 

substantiation requirements that apply 

to certain listed property. These 

proposed regulations add unmarked 

vehicles used by firefighters or members 

of a rescue squad or ambulance crew as 

a new type of qualified nonpersonal use 

vehicle. These regulations affect 

governmental units that provide 

firefighter or rescue squad or ambulance 

crew member employees with 

unmarked qualified nonpersonal use 

vehicles and the employees who use 

those vehicles. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by March 3, 2025. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at http://

www.regulations.gov (indicate IRS and 

REG–106595–22) by following the 

online instructions for submitting 

comments. Requests for a public hearing 

must be submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. Once submitted to the 

Federal Rulemaking Portal, comments 

cannot be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comment 

submitted electronically or on paper, to 

the IRS’s public docket. Send paper 

submissions to CC:PA:01:PR (REG– 

106595–22), Room 5203, Internal 

Revenue Service, P.O. Box 7604, Ben 

Franklin Station, Washington, DC 

20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Stephanie Caden at (202) 317–4750; 

concerning submissions of comments or 

requests for a public hearing, the 

Publications and Regulations section by 

email at publichearings@irs.gov 

(preferred) or (202) 317–6901 (not tollfree numbers). 

SUPPLEMENTARY INFORMATION: 

Authority 

This notice of proposed rulemaking 

contains proposed regulations issued 

under the authority granted to the 

Secretary of the Treasury or her delegate 

(Secretary) by sections 274(p) and 

132(o) of the Internal Revenue Code 

(Code) that would amend the Income 

Tax Regulations (26 CFR part 1) under 

sections 274(i) and 132(d) related to 

qualified nonpersonal use vehicles. 

Section 274(p) provides the Secretary 

with an express grant of regulatory 

authority with respect to section 274 as 

the Secretary may deem necessary to 

carry out the purposes of that section. 

Section 132(o) provides the Secretary 

with an express grant of regulatory 

authority with respect to section 132 to 

prescribe such regulations as may be 

necessary or appropriate to carry out the 

purposes of that section. In addition, 

section 7805(a) authorizes the Secretary 

to prescribe all needful rules and 

regulations for the enforcement of the 

Code. 

Background 

In general, section 274 limits or 

disallows deductions for certain 

expenditures that otherwise would be 

allowable under chapter 1 of the Code, 

primarily under section 162(a), which 

allows a deduction for ordinary and 

necessary expenses paid or incurred 

during the taxable year in carrying on 

any trade or business. 

Section 274(d), as relevant to these 

proposed regulations, provides that a 

taxpayer is not allowed a deduction or 

credit for certain expenses unless the 

expenses are substantiated by adequate 

records or by sufficient evidence 

corroborating the taxpayer’s own 

statement as to the amount, time and 

place, business purposes of the 

expenditure, and the business 

relationship to the taxpayer of the 

person receiving the benefit. These 

substantiation requirements apply to 

expenses incurred in the use of any 

listed property, as defined in section 

280F(d)(4), which includes any 

passenger automobile and any other 

property used as a means of 

transportation. 

In 1985, Congress modified section 

274(d) and added section 274(i), 

creating an exception from the 

substantiation requirements for 

qualified nonpersonal use vehicles. 

Public Law 99–44 2, 99 Stat. 77 (1985). 

Section 274(i) provides that the term 

‘‘qualified nonpersonal use vehicle’’ 

means any vehicle, which by reason of 

its nature, is not likely to be used more 

than a de minimis amount for personal 

purposes. 

Both the business and personal use of 

an employer-provided vehicle that is a 

qualified nonpersonal use vehicle under 

section 274(i) qualifies under section 

132(d) as a working condition fringe 

benefit that is excluded from the 

employee’s income. Thus, if an 

employer provides an employee with a 

qualified nonpersonal use vehicle, the 

employee does not need to keep records 

of how the vehicle is used, and the total 

use of the vehicle is excluded from the 

employee’s income as a working 

condition fringe benefit under section 

132(d). See §§ 1.132–5(h) and 1.274– 

5(k). 

The legislative history to section 

274(i) includes examples of qualified 

nonpersonal use vehicles such as school 

buses, qualified specialized utility 

repair trucks, qualified moving vans, 

clearly marked police and fire vehicles, 

and unmarked law enforcement 

vehicles. H.R. Rep. No. 99–67, at 16 

(1985) (Conf. Rep.). The legislative 

history indicates that Congress intended 

the IRS and the Treasury Department to 

expand the list to include other vehicles 

that, by reason of their nature, are 

highly unlikely to be used more than a 

very minimal amount for personal 

purposes. H.R. Rep. No. 99–34, at 11 

(1985). 

Temporary Regulations § 1.274–5T(k) 

and (l) were issued in 1985, identifying 

categories of qualified nonpersonal use 

vehicles and providing definitions (by 

cross reference) of terms such as 

‘‘automobile,’’ ‘‘vehicle,’’ and ‘‘personal 

use.’’ TD 8061, 50 FR 46006, 46033, and 

46036. Police and fire vehicles that are 

clearly marked and law enforcement 

vehicles that are unmarked were 

included as categories of qualified 

nonpersonal use vehicles. However, 

clearly marked vehicles provided to 

Federal, State, and local government 

workers who respond to emergency 

situations as public safety officers but 


lotter on DSK11XQN23PROD with PROPOSALS1
95728 Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Proposed Rules 

who are not employed by either a fire 

department or police department were 

not included as qualified nonpersonal 

use vehicles. 

In 2008, proposed regulations were 

issued to incorporate the text of § 1.274– 

5T(k) and add clearly marked public 

safety officer vehicles as a new type of 

qualified nonpersonal use vehicle. 73 

FR 32500. An example illustrating the 

application of the rules to a clearly 

marked public safety officer vehicle was 

included at § 1.274–5(k)(8) as Example 

3. 

In 2010, final regulations were 

published adding clearly marked public 

safety officer vehicles to the list of 

qualified nonpersonal use vehicles. TD 

9483, 75 FR 27934 (current regulations). 

As a result, emergency responders who 

are provided a clearly marked vehicle 

receive the same tax treatment whether 

they work for the police department, fire 

department, or other governmental unit, 

or any agency or instrumentality 

thereof. 

Explanation of Provisions 

The Treasury Department and the IRS 

have become aware that certain 

emergency responders not covered by 

the current regulations are provided 

unmarked vehicles by a governmental 

unit or an agency or instrumentality 

thereof (governmental unit). In 

particular, stakeholders have 

commented that fire chiefs or members 

of rescue squads or ambulance crews 

who, when not on a regular shift, need 

to be on call at all times to respond to 

emergencies will often be assigned 

unmarked command vehicles to travel 

safely and quickly to a scene and 

perform emergency services. While the 

authorized use of unmarked vehicles by 

law enforcement officers employed on a 

full-time basis by a governmental unit 

that is responsible for the prevention or 

investigation of crime involving injury 

to persons or property (including 

apprehension or detention of persons 

for such crimes) satisfies the current 

regulations governing qualified 

nonpersonal use vehicles, the use of 

unmarked vehicles provided to 

firefighters or members of a rescue 

squad or ambulance crew does not 

satisfy the current regulations. 

Section 274(i) defines a qualified 

nonpersonal use vehicle as one which, 

by reason of its nature, ‘‘is not likely to 

be used more than a de minimis amount 

for personal purposes.’’ The current 

regulations define qualified nonpersonal 

use vehicles to include clearly marked 

police, fire, or public safety officer 

vehicles that are owned or leased by a 

governmental unit and required to be 

used for commuting by a police officer, 

firefighter, or public safety officer (as 

defined in section 402(l)(4)(C)) who, 

when not on a regular shift, is on call 

at all times. Any personal use (other 

than commuting) of the vehicle outside 

the limit of the police officer’s arrest 

powers or the firefighter’s or public 

safety officer’s obligation to respond to 

an emergency must be prohibited by the 

governmental unit. See § 1.274– 

5(k)(2)(ii)(A) and (k)(3). The various 

examples included in § 1.274–5(k)(8) 

illustrate that a prohibition on personal 

use (other than commuting) is intended 

to exist in situations where both 

commuting and only de minimis 

personal use, such as personal errands, 

are permitted. 

The current regulations also define 

qualified nonpersonal use vehicles as 

including unmarked law enforcement 

vehicles owned or leased by Federal, 

State, county, or local governmental 

agencies or departments that officially 

authorize the business and personal use 

of the vehicle by law enforcement 

officers whom they employ, provided 

any personal use is incidental to law 

enforcement functions. See § 1.274– 

5(k)(2)(ii)(R) and (k)(6). The regulations 

define law enforcement officers as 

individuals who are employed on a fulltime basis by a governmental unit that 

is responsible for the prevention or 

investigation of crime involving injury 

to persons or property (including 

apprehension or detention of persons 

for those crimes), who are authorized by 

law to carry firearms, execute search 

warrants, and to make arrests (other 

than merely a citizen’s arrest), and who 

regularly carry firearms (except when it 

is not possible to do so because of the 

requirements of undercover work). See 

§ 1.274–5(k)(6)(ii). Unmarked law 

enforcement vehicles allow law 

enforcement officers to operate 

inconspicuously, e.g., so that they can 

conduct these duties while performing 

undercover work. 

Historically, firefighters and rescue 

squad and ambulance crew members 

were provided with vehicles that had 

markings to indicate their status as 

emergency response vehicles. More 

recently, the IRS and Treasury 

Department have become aware that 

some governmental units are assigning 

these emergency responders unmarked 

vehicles due to increased incidents of 

harassment of first responders and 

vandalism of clearly marked fire and 

emergency vehicles and equipment. 

Generally, fire and emergency 

response departments retain the title to 

the unmarked vehicles and maintain 

policies that limit the use of the vehicles 

for personal, non-work purposes. 

Because firefighters and members of a 

rescue squad or ambulance crew 

respond to a wide variety of 

emergencies at all hours, including fires, 

medical crises, vehicular accidents, 

natural disasters, and terrorist attacks, 

these vehicles typically are specially 

equipped to allow firefighters and 

members of rescue squads or ambulance 

crews who, even when not on a regular 

shift, are on call at all times to travel 

safely and efficiently to the scene of an 

emergency and provide emergency 

services. Onboard equipment may 

include lights and sirens, medical 

emergency equipment, life-saving 

devices such as defibrillators, and 

radios that assist firefighters, rescue 

squads, or ambulance crews in 

communicating with a central source 

and other emergency response crews 

related, for example, to traffic or 

hospital capacity. Onboard equipment 

may also include items such as personal 

protective equipment (helmet, coat, 

boots), emergency oxygen tanks, 

reference books, and laptop computers 

that enable workers to access important 

information related to the emergency. 

Under the current regulations, 

emergency responders must substantiate 

all of the time they spend using these 

unmarked vehicles for work related 

purposes, and the value of any personal 

use of these vehicles, even if minimal, 

must be included in the employees’ 

taxable income. 

Unmarked firefighter and rescue 

squad or ambulance crew vehicles are 

less likely to be utilized in undercover 

work than unmarked law enforcement 

vehicles. However, the use of unmarked 

vehicles allows firefighters and other 

emergency personnel who commute and 

are required to be on call at all times, 

even when not on a regular shift, to 

travel inconspicuously, thereby 

reducing risk of harassment and 

vandalism. Also, as described above, 

unmarked firefighter and rescue squad 

or ambulance crew vehicles typically 

are specially outfitted with onboard 

equipment, which is used by firefighters 

and emergency personnel to suppress 

fires, conduct rescue activities, or 

provide emergency medical services as 

part of an official emergency response 

system. Because these vehicles are 

generally specially outfitted with such 

equipment, any personal use of these 

vehicles is likely to be minimal. Thus, 

adding unmarked firefighter, rescue 

squad or ambulance crew vehicles as a 

new category of qualified nonpersonal 

use vehicle is consistent with the 

underlying intent of section 274(i). 

Accordingly, the proposed regulations 

would amend § 1.274–5(k)(2)(ii) to add 

unmarked vehicles used by firefighters, 

members of rescue squads, or 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Proposed Rules 95729 

ambulance crews to the list of qualified 

nonpersonal use vehicles that are 

exempt from the substantiation 

requirements of section 274(d). In 

addition, the proposed regulations 

would amend § 1.274–5(k) to add a new 

§ 1.274–5(k)(7) providing definitions for 

the terms ‘‘unmarked firefighter, rescue 

squad or ambulance crew vehicles’’, 

‘‘firefighter,’’ and ‘‘member of a rescue 

squad or ambulance crew,’’ and add 

§ 1.274–5(k)(9)(v) (Example 5) 

illustrating the new provision. 

The proposed regulations provide that 

the substantiation requirements of 

section 274(d) do not apply to an 

unmarked firefighter, rescue squad, or 

ambulance crew vehicle that is required 

to be used for commuting by the 

firefighter or member of a rescue squad 

or ambulance crew, who, when not on 

a regular shift, is on call at all times. 

Because any personal use of an 

unmarked firefighter, rescue squad, or 

ambulance crew vehicle should be 

minimal and incidental to its main 

purpose in providing emergency 

services, the proposed regulations also 

provide that personal use of the vehicle, 

other than commuting and personal 

errands, that is outside the firefighter’s 

or rescue squad or ambulance crew 

member’s obligation to respond to an 

emergency must be prohibited by the 

governmental unit that owns or leases 

the vehicle and employs the firefighter 

or rescue squad or ambulance crew 

member. 

The proposed regulations define an 

‘‘unmarked firefighter, rescue squad, or 

ambulance crew vehicle’’ as a vehicle, 

that is owned or leased by a 

governmental unit, or any agency or 

instrumentality thereof, and that is 

specially outfitted to allow firefighters 

or members of rescue squads and 

ambulance crews to travel safely and 

efficiently to the scene of an emergency 

and provide emergency services. The 

description of the types of special 

equipment found in the unmarked 

vehicles is derived from information 

provided by stakeholders requesting 

updates to the current regulations. The 

proposed regulations also provide that a 

license plate marking or insignia do not 

disqualify a vehicle from being an 

unmarked firefighter, rescue squad, or 

ambulance crew vehicle. 

The definition of ‘‘firefighter’’ for 

purposes of these proposed regulations, 

is modeled in part on the definition of 

‘‘law enforcement officer’’ in § 1.274– 

5(k)(6)(ii) and draws from relevant 

language in the Public Safety Officers’ 

Benefits Act (PSOB Act)’s definition of 

‘‘action outside of jurisdiction’’ in 34 

U.S.C. 10284(1)(C), as well as from 

outside sources. The definition of 

‘‘member of a rescue squad or 

ambulance crew’’ in these proposed 

regulations is the same definition that is 

set forth in 34 U.S.C. 10284(10), which 

was enacted as an amendment to the 

PSOB Act that establishes a framework 

for the expeditious and fair processing 

of claims brought by disabled law 

enforcement officers, firefighters, and 

other first responders or their survivors. 

H. Rep. No. 112–548 (2012). 

These proposed regulations provide 

an example of circumstances in which 

a member of a rescue squad or 

ambulance crew assigned an unmarked 

vehicle would qualify for the exclusion 

under this new provision. 

Finally, these proposed regulations 

provide conforming amendments to 

§§ 1.132–1(g) and 1.132–5(h)(1). 

The purpose of these proposed 

regulations is to ensure that firefighters 

and members of rescue squads and 

ambulance crews who are officially 

authorized to use specially equipped 

unmarked vehicles to respond to 

emergencies are accorded the same tax 

treatment as other first responders who 

use qualified nonpersonal use vehicles. 

The Treasury Department and the IRS 

request comments on whether the 

definitions of ‘‘unmarked firefighter, 

rescue squad or ambulance crew 

vehicles,’’ ‘‘firefighter,’’ and ‘‘member of 

a rescue squad or ambulance crew,’’ are 

sufficient to accomplish the intended 

purpose of these proposed regulations 

or whether any of them might lead to 

potential abuse. 

Applicability Date 

Proposed § 1.274–5(k)(2)(ii)(S), (k)(7), 

(k)(9)(v) and references to § 1.274– 

5(k)(9) in § 1.132–5(h) are proposed to 

apply to tax years beginning on or after 

the date of publication of final 

regulations in the Federal Register. 

Until the date of publication of final 

regulations in the Federal Register, for 

purposes of proposed § 1.274– 

5(k)(2)(ii)(S), (k)(7), (k)(9)(v) and 

references to § 1.274–5(k)(9) in § 1.132– 

5(h), taxpayers may rely on the guidance 

provided in these proposed regulations. 

Special Analyses 

I. Regulatory Planning and Review— 

Economic Analysis 

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. 

II. Paperwork Reduction Act 

This proposed regulation does not 

create new collection requirements, as 

defined under the Paperwork Reduction 

Act (44 U.S.C. 35); and does not alter 

any previously approved Office of 

Management and Budget information 

collection requirements and their 

associated burden. 

III. Regulatory Flexibility Act 

It is hereby certified that these 

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). This 

certification is based on the fact that 

these proposed regulations do not 

impose any new or different 

requirements on small entities. The 

proposed regulations would apply only 

to employers that utilize unmarked 

firefighter, rescue squad, or ambulance 

vehicles and therefore would affect a 

relatively small number of entities, most 

of which would be public entities. In 

addition, these proposed regulations 

would not affect employment tax 

reporting or require any additional 

substantiation. Rather, the proposed 

regulations exempt affected entities 

from substantiation requirements and 

for this reason do not add any economic 

burden to affected entities. Therefore, a 

Regulatory Flexibility Analysis under 

the Regulatory Flexibility Act (5 U.S.C. 

chapter 6) is not required. 

IV. Section 7805(f) 

Pursuant to section 7805(f), this 

notice of proposed rulemaking has been 

submitted to the Chief Council for the 

Office of Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

V. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates 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 Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. These proposed 

regulations do not include any Federal 

mandate that may result in expenditures 

by State, local, or Tribal governments, or 

by the private sector, in excess of that 

threshold. 

VI. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 


lotter on DSK11XQN23PROD with PROPOSALS1
95730 Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Proposed Rules 

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, do not impose substantial 

direct compliance costs on State and 

local governments, and do not preempt 

State law within the meaning of the 

Executive order. 

Comments and Request for a Public 

Hearing 

Before final regulations regarding the 

definition of qualified nonpersonal use 

vehicles are adopted, consideration will 

be given to any written or electronic 

comments on these proposed 

amendments that are submitted timely 

(in the manner described under the 

ADDRESSES heading) to the IRS. The 

Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulations. Any electronic or 

paper comments submitted, will be 

made available at https://

www.regulations.gov or upon request. 

A public hearing will be scheduled if 

requested in writing by any person who 

timely submits electronic or written 

comments. Requests for a hearing are 

strongly encouraged to be submitted 

electronically. If a public hearing is 

scheduled, notice of the date and time 

for the public hearing will be published 

in the Federal Register. 

Drafting Information 

The principal author of these 

regulations is Stephanie L. Caden of the 

Office of the Associate Chief Counsel 

(Employee Benefits, Exempt 

Organizations, and Employment Taxes). 

However, other personnel from the 

Treasury Department and the IRS 

participated in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and IRS propose to amend 26 CFR part 

1 as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by revising the 

entries for §§ 1.132–0 through 1.132–8T 

and § 1.274–5 to read in part as follows: 

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

* * * * * 

Sections 1.132–0 through 1.132–8T also 

issued under 26 U.S.C. 132(o). 

* * * * * 

Section 1.274–5 also issued under 26 

U.S.C. 274(p). 

* * * * * 

■ Par. 2. Section 1.132–1 is amended by 

adding a sentence to the end of 

paragraph (g) to read as follows: 

§ 1.132–1 Exclusion from gross income for 

certain fringe benefits. 

* * * * * 

(g) * * * In addition, references to 

§ 1.274–5(k)(9) in § 1.132–5(h) are 

applicable as of [date of publication of 

final regulations in the Federal 

Register]. 

■ Par. 3. Section 1.132–5 is amended by 

revising paragraph (h)(1) to read as 

follows: 

§ 1.132–5 Working condition fringes. 

* * * * * 

(h) * * * (1) In general. Except as 

provided in paragraph (h)(2) of this 

section, 100 percent of the value of the 

use of a qualified nonpersonal use 

vehicle (as described in § 1.274–5(k)) is 

excluded from gross income as a 

working condition fringe, provided that, 

in the case of a vehicle described in 

§ 1.274–5(k)(3) through (9), the use of 

the vehicle conforms to the 

requirements of § 1.274–5(k)(3) through 

(9). 

* * * * * 

■ Par. 4. Section 1.274–5 is amended 

by: 

■ 1. Redesignating paragraph 

(k)(2)(ii)(S) as paragraph (k)(2)(ii)(T) and 

adding new paragraph (k)(2)(ii)(S); 

■ 2. Redesignating paragraph (k)(8) as 

paragraph (k)(9); 

■ 3. Redesignating paragraph (k)(7) as 

new paragraph (k)(8) and adding new 

paragraph (k)(7); 

■ 4. In newly redesignated paragraph 

(k)(9), designating Examples 1 through 4 

as paragraphs (k)(9)(i) through (k)(9)(iv), 

respectively. 

■ 5. Adding paragraph (k)(9)(v); and 

■ 6. Revising paragraph (m). 

The additions read as follows: 

§ 1.274–5 Substantiation requirements. 

* * * * * 

(k) * * * 

(2) * * * 

(ii) * * * 

(S) Unmarked firefighter, rescue 

squad, or ambulance crew vehicles (as 

defined in paragraph (k)(7) of this 

section). 

* * * * * 

(7) Unmarked firefighter, rescue 

squad, or ambulance crew vehicles—(i) 

In general. The substantiation 

requirements of section 274(d) and this 

section do not apply to an unmarked 

firefighter, rescue squad, or ambulance 

crew vehicle required to be used for 

commuting by the firefighter or member 

of a rescue squad or ambulance crew, 

who, when not on a regular shift, is on 

call at all times. Personal use (other than 

commuting) of the vehicle outside the 

firefighter’s or rescue squad or 

ambulance crew member’s obligation to 

respond to an emergency must be 

prohibited by the governmental unit, or 

any agency or instrumentality thereof, 

that owns or leases the vehicle and 

employs the firefighter, rescue squad, or 

ambulance crew member. 

(ii) Unmarked firefighter, rescue 

squad, or ambulance crew vehicle 

defined. An unmarked firefighter, 

rescue squad, or ambulance crew 

vehicle is an unmarked vehicle used by 

a firefighter, or member of a rescue 

squad or ambulance crew, that is owned 

or leased by a governmental unit, or any 

agency or instrumentality thereof, and 

that is specially outfitted to allow 

firefighters or members of rescue squads 

and ambulance crews to travel safely 

and efficiently to the scene of an 

emergency and provide emergency 

services. Onboard equipment on the 

vehicles includes but is not limited to 

lights and sirens, medical emergency 

equipment, life-saving devices such as 

defibrillators, and radios that assist 

firefighters, rescue squads, or 

ambulance crews in communicating 

with a central source or other 

emergency response crews related, for 

example, to traffic or hospital capacity. 

Onboard equipment may also include 

items such as personal protective 

equipment (helmet, coat, boots), 

emergency oxygen tanks, reference 

books, and laptop computers that enable 

workers to access important information 

related to the emergency. A license plate 

marking or insignia does not disqualify 

a vehicle from being an unmarked 

firefighter, rescue squad, or ambulance 

crew vehicle for purposes of this 

paragraph (k)(7). 

(iii) Firefighter. The term firefighter 

means an individual who is employed 

by a governmental unit, or any agency 

or instrumentality thereof, that is 

responsible for firefighting, rescue 

activity, or the provision of emergency 

medical care, and other related 

emergency services to prevent injury to 

persons or property and has the official 

authority to engage in fire suppression 

and provide related emergency services. 

(iv) Member of a rescue squad or 

ambulance crew. For purposes of this 

paragraph (k)(7), the term member of a 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 232 / Tuesday, December 3, 2024 / Proposed Rules 95731 

rescue squad or ambulance crew has the 

same meaning as in 34 U.S.C. 10284(10). 

* * * * * 

(9) * * * 

(v) Example 5. Emergency medical 

technician, X, is a member of a rescue 

squad employed by City M. X is 

provided with an unmarked vehicle 

(equipped with sirens and medical 

equipment) for use in responding to 

emergencies. X, along with other 

members of the rescue squad, is 

ordinarily on duty for a regular shift, 

and on call during the other hours of the 

day. X is required to use the unmarked 

rescue squad vehicle to commute to X’s 

home in City M. The rescue squad’s 

official policy regarding unmarked 

rescue squad vehicles prohibits personal 

use (other than commuting) of the 

vehicles outside the city limits. When 

not using the vehicle on the job, X uses 

the vehicle only for commuting, 

personal errands on the way between 

work and home, and personal errands 

within City M. All use of the vehicle by 

X conforms to the requirements of 

paragraph (k)(7) of this section. 

Therefore, the value of that use is 

excluded from X’s gross income as a 

working condition fringe and the 

vehicle is not subject to the 

substantiation requirements of section 

274(d). 

* * * * * 

(m) Applicability date. This section 

applies to expenses paid or incurred 

after December 31, 1997. However, 

paragraph (j)(3) of this section applies to 

expenses paid or incurred after 

September 30, 2002, and paragraph (k) 

of this section applies to clearly marked 

public safety officer vehicles, as defined 

in paragraph (k)(3) of this section, only 

with respect to uses occurring after May 

19, 2010. The rules of paragraphs 

(k)(2)(ii)(S), (k)(7) and (k)(9)(v) of this 

section apply to taxable years ending on 

or after [date of publication of final 

regulations in the Federal Register]. 

Douglas W. O’Donnell, 

Deputy Commissioner. 

[FR Doc. 2024–28040 Filed 12–2–24; 8:45 am] 

BILLING CODE 4830–01–P 


lotter on DSK11XQN23PROD with PROPOSALS1