18096 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 

2 2 U.S.C. 1532. 

3 2 U.S.C. 1534. 

4 2 U.S.C. 1532(a). 

III. Findings and Certification 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601 et seq.) generally requires 

an agency to conduct a regulatory 

flexibility analysis of any rule subject to 

notice and comment rulemaking 

requirements, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. Because HUD 

has determined that good cause exists to 

issue this rule without prior public 

comment, this rule is not subject to the 

requirement to publish an initial or final 

regulatory flexibility analysis under the 

RFA as part of such action. 

Unfunded Mandates Reform 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 2

requires that an agency prepare a 

budgetary impact statement before 

promulgating a rule that includes a 

Federal mandate that may result in the 

expenditure by state, local and tribal 

governments, in the aggregate, or by the 

private sector of $100 million or more 

in any one year. If a budgetary impact 

statement is required, section 205 of 

UMRA also requires an agency to 

identify and consider a reasonable 

number of regulatory alternatives before 

promulgating a rule.3 However, the 

UMRA applies only to rules for which 

an agency publishes a general notice of 

proposed rulemaking pursuant to the 

APA.4 As discussed above, HUD has 

determined for good cause that the APA 

does not require general notice and 

public comment on this rule and, 

therefore, the UMRA does not apply to 

this final rule. 

Executive Order 13132, Federalism 

Executive Order 13132 (entitled 

‘‘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 the rule preempts 

state law, unless the agency meets the 

consultation and funding requirements 

of section 6 of the Executive Order. This 

final rule will not have federalism 

implications and would not impose 

substantial direct compliance costs on 

state and local governments or preempt 

state law within the meaning of the 

Executive Order. 

Environmental Review 

This final rule does not direct, 

provide for assistance or loan and 

mortgage insurance for, or otherwise 

govern, or regulate, real property 

acquisition, disposition, leasing, 

rehabilitation, alteration, demolition, or 

new construction, or establish, revise or 

provide for standards for construction or 

construction materials, manufactured 

housing, or occupancy. Accordingly, 

under 24 CFR 50.19(c)(1), this final rule 

is categorically excluded from 

environmental review under the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321). 

List of Subjects 

24 CFR Part 200 

Administrative practice and 

procedure, Claims, Equal employment 

opportunity, Fair housing, Home 

improvement, Housing standards, 

Incorporation by reference, Lead 

poisoning, Loan programs—housing and 

community development, Minimum 

property standards, Mortgage insurance, 

Organization and functions 

(Government agencies), Penalties, 

Reporting and recordkeeping 

requirements, Social security, 

Unemployment compensation, Wages. 

24 CFR Part 235 

Condominiums, Cooperatives, Grant 

programs—housing and community 

development, Low and moderate 

income housing, Mortgage insurance, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, and under the authority of 42 

U.S.C. 3535(d), HUD amends 24 CFR 

parts 200 and 235 as follows: 

PART 200—INTRODUCTION TO FHA 

PROGRAMS 

■ 1. The authority citation for part 200 

continues to read as follows: 

Authority: 12 U.S.C. 1702–1715z–21; 42 

U.S.C. 3535(d). 

■ 2. Add § 200.1301(g) to read as 

follows: 

§ 200.1301 Expiring programs—Savings 

clause. 

* * * * * 

(g) Any existing loan assistance 

(including recapture of loan assistance), 

ongoing participation, or insured loans 

under the program listed in this 

paragraph will continue to be governed 

by the regulations in effect as they 

existed immediately before May 4, 2015 

(24 CFR part 235, 2014 Edition): 

(1) Part 235, Mortgage Insurance and 

Assistance Payments for Home 

Ownership and Project Rehabilitation 

(12 U.S.C. 1715z). 

(2) [Reserved] 

PART 235—[Removed] 

■ 3. Remove part 235. 

Dated: March 27, 2015. 

Biniam Gebre, 

Acting Assistant Secretary for Housing— 

Federal Housing Commissioner. 

[FR Doc. 2015–07597 Filed 4–2–15; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9717] 

RIN 1545–BL77 

Allocation of Controlled Group 

Research Credit 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations relating to 

the allocation of the credit for increasing 

research activities (research credit) to 

corporations and trades or businesses 

under common control (controlled 

groups)... This document also contains 

final and temporary regulations relating 

to the allocation of the railroad track 

maintenance credit and the election for 

a reduced research credit. The text of 

these temporary regulations also serves 

as the text of the proposed regulations 

(REG–133489–13) published in the 

Proposed Rules section in this issue of 

the Federal Register. 

DATES: Effective date: These regulations 

are effective April 3, 2015. 

Applicability date: For dates of 

applicability, see §§ 1.41–6T(j), 1.45G– 

1T(g), and 1.280C–4T(c). 

FOR FURTHER INFORMATION CONTACT: 

James Holmes, at (202) 317–4137; (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final and 

temporary regulations for § 1.41–6, 

§ 1.45G–1, and § 1.280C–4 of the Income 

Tax Regulations (26 CFR part 1). These 

regulations update the rules in a manner 

that is consistent with the amendments 

made to section 41(f)(1)(A)(ii) and 

section 41(f)(1)(B)(ii) in Section 301(c) 

of the Act. 


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Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 18097 

Explanation of Provisions 

Section 41—Research Credit 

Section 41(a) provides an incremental 

tax credit for increasing research 

activities and is based on a percentage 

of a taxpayer’s qualified research 

expenses over a base amount, basic 

research payments as determined under 

section 41(e)(1)(A), and amounts paid or 

incurred to energy research consortiums 

(collectively, ‘‘QREs’’). Under section 

41(f)(1) and § 1.41–6(b), all members of 

a controlled group are treated as a single 

taxpayer for purposes of computing the 

research credit for the group (group 

credit). Section 1.41–6(b) provides that 

the group credit is computed by 

applying all of the section 41 

computational rules on an aggregate 

basis. Section 1.41–6(c) provides a 

method of allocating a group research 

credit among the members of the 

controlled group. 

Section 301(c) of the Act amended 

section 41(f)(1)(A)(ii) and section 

41(f)(1)(B)(ii) by requiring the allocation 

of research credits to each controlled 

group member ‘‘on a proportionate basis 

to its share of the aggregate of the 

qualified research expenses, basic 

research payments, and amounts paid or 

incurred to energy research 

consortiums, taken into account by such 

controlled group for purposes of this 

section.’’ Section 301(c) of the Act 

applies to taxable years beginning after 

December 31, 2011. 

Former section 41(f)(1)(A)(ii) and 

former section 41(f)(1)(B)(ii) provided 

that the research credit allowable to a 

controlled group member shall be its 

proportionate shares of the QREs giving 

rise to the credit. Prior to these 

regulations, § 1.41–6(c)(1)(i) required a 

controlled group to allocate the group 

credit in proportion to each member’s 

stand-alone entity credit, as defined in 

§ 1.41–6(c)(2), in cases in which the 

group credit does not exceed the sum of 

the stand-alone entity credits of all of 

the members. If the group credit does 

exceed this sum, then the excess of the 

group credit over the sum of the standalone entity credits of all of the 

members was allocated in proportion to 

the QREs of the members of the 

controlled group. See § 1.41–6(c)(1)(ii). 

Notice 2013–20 (2013–15 IRB 902 

(April 8, 2013)) was released on March 

9, 2013, to provide interim guidance 

relating to the allocation of the 

controlled group research credit and is 

effective for taxable years beginning 

after December 31, 2011. Notice 2013– 

20 provides that the group credit is 

allocated to group members based on 

each member’s share of QREs, without 

regard to whether the member would 

have a stand-alone entity credit or what 

the amount of any such credit would be. 

The final and temporary regulations 

implement the Act’s changes to the 

allocation of the controlled group 

research credit by revising the allocation 

method in § 1.41–6(c), (d), and (e). 

Section 1.41–6T(c) provides an 

allocation method that follows the 

approach taken in Notice 2013–20. 

Section 1.41–6T(c) provides that the 

group credit is allocated to group 

members based on a member’s 

proportionate share of the controlled 

group’s aggregate QREs. Members are no 

longer required to calculate a standalone entity credit. The temporary 

regulations also remove references to 

the stand-alone entity credit in § 1.41– 

6(d)(1) and (3). New examples are 

provided in § 1.41–6T(e). The first 

example illustrates a general application 

of the allocation method provided in 

these temporary regulations. The second 

example demonstrates an allocation 

under these temporary regulations 

where a consolidated group is treated as 

a single member of a controlled group 

pursuant to § 1.41–6T(d). 

A commenter to Notice 2013–20 

suggested that the IRS adopt a safe 

harbor under § 1.41–6(c) that permits 

taxpayers to calculate and allocate 

group credits for taxable years ending 

prior to January 1, 2013, under the new 

law. The commenter’s proposal would 

effectively make the Act’s amendments 

retroactive to before the effective date of 

the statutory change (change effective 

for taxable years beginning after 

December 31, 2011). Therefore, the 

regulations do not adopt this suggestion 

for taxable years beginning before 

January 1, 2012. For taxable years 

beginning before January 1, 2012, 

taxpayers must apply the rules 

applicable to such taxable years. 

Section 45G—Railroad Track 

Maintenance Credit (RTMC) 

Section 45G, subject to limitations, 

generally provides a RTMC in an 

amount equal to fifty percent of the 

qualified railroad track maintenance 

expenditures paid or incurred by an 

eligible taxpayer during the year. 

Section 45G(e)(2) provides, for 

controlled groups, that rules similar to 

the rules of section 41(f)(1) shall apply 

for purposes of section 45G. Section 

1.45G–1(f) provides guidance on 

determining the amount of RTMC under 

section 45G if a taxpayer is a member 

of a controlled group. Section 1.45G–1(f) 

applies rules similar to the rules of 

§ 1.41–6 for allocating a group RTMC. 

The temporary regulations add 

§ 1.45G–1T(f)(4) to provide an allocation 

method for the RTMC that is consistent 

with the Act’s amendments to section 

41(f)(1). Section 1.45G–1T(f)(5)(i) and 

(ii) of the temporary regulations remove 

references to the stand-alone entity 

credit. 

Section 280C(c)—Credit for Increasing 

Research Activities 

Section 280C(c)(1) generally disallows 

otherwise allowable deductions for 

QREs in an amount equal to the research 

credit determined under 41(a) for a 

taxable year. Section 280C(c)(3) 

provides a method to elect a reduced 

amount of research credit. Section 

280C(c)(4) provides, by reference to 

section 280C(b)(3), that in the case of a 

corporation which is a member of a 

controlled group of corporations (within 

the meaning of section 41(f)(5)) or a 

trade or business treated as being under 

common control with other trades or 

business (within the meaning of section 

41(f)(1)(B)), section 280C(c) shall be 

applied under rules prescribed by the 

Secretary similar to the rules applicable 

under section 41(f)(1)(A) and (B). 

Section 1.280C–4(b) relates to the 

election under section 280C(c)(3) that a 

member of a controlled group may 

make. Section 1.280C–4(b)(2) contains 

an example that includes references to 

the rules in § 1.41–6(c). The temporary 

regulations update the example in 

§ 1.280C–4(b)(2) because it describes the 

rules of section 41(f) in effect before the 

Act’s amendments. 

Effect on Other Documents 

Notice 2013–20 (2013–15 IRB 902) is 

obsolete for taxable years beginning on 

or after April 3, 2015. 

Effective/Applicability Dates 

The temporary regulations are 

applicable for taxable years beginning 

on or after April 3, 2015 and expire on 

April 2, 2018. A taxpayer may apply 

§§ 1.41–6T, 1.45G–1T, and 1.280C–4T to 

taxable years beginning after December 

31, 2011, but before April 3, 2015. For 

a taxpayer that does not apply these 

temporary regulations to a taxable year 

beginning after December 31, 2011, but 

before April 3, 2015, the guidance that 

applies to such taxable year is contained 

in Notice 2013–20 (2013–15 IRB 902). 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866, as 

supplemented by Executive Order 

13563. Therefore, a regulatory 

assessment is not required. It also has 

been determined that section 553(b) of 

the Administrative Procedure Act (5 

U.S.C. chapter 5) does not apply to these 


asabaliauskas on DSK5VPTVN1PROD with RULES
18098 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 

regulations. For the applicability of the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6), refer to the Special Analyses 

section of the preamble to the crossreferenced notice of proposed 

rulemaking published in the Proposed 

Rules section in this issue of the Federal 

Register. Pursuant to section 7805(f) of 

the Code, these regulations have been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on their 

impact on small business. 

Drafting Information 

The principal author of these 

regulations is James Holmes, Office of 

the Associate Chief Counsel 

(Passthroughs and Special Industries). 

However, other personnel from the IRS 

and Treasury Department participated 

in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Amendments to the Regulations 

Accordingly, 26 CFR part 1 is 

amended 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 * * * 

Section 1.41–6T also issued under 26 

U.S.C. 41(f)(1) * * * 

Section 1.45G–1T also issued under 26 

U.S.C. 45G(e)(2) * * * 

Section 1.280C–4T also issued under 26 

U.S.C. 280C(c)(4) * * * 

■ Par. 2. Section 1.41–0 is amended by 

removing the entries in the table of 

contents for § 1.41–6(c)(1) and § 1.41– 

6(c)(2) and adding an entry for §§ 1.41– 

6(j)(4) and (5) to read as follows: 

§ 1.41–0. Table of contents. 

* * * * * 

(j) * * * 

(4) Taxable years beginning after 

December 31, 2011. 

(5) Taxable years ending before 

January 1, 2012. 

■ Par. 3. Section 1.41–6 is amended by 

revising paragraphs (c), (d)(1) and (3), 

and (e) and adding paragraphs (j)(4) and 

(5) to read as follows: 

§ 1.41–6. Aggregation of expenditures. 

* * * * * 

(c) [Reserved]. For further guidance, 

see § 1.41–6T(c). 

* * * * * 

(d) * * * 

(1) [Reserved]. For further guidance, 

see § 1.41–6T(d)(1). 

* * * * * 

(3) [Reserved]. For further guidance, 

see § 1.41–6T(d)(3). 

(e) [Reserved]. For further guidance, 

see § 1.41–6T(e). 

* * * * * 

(j) * * * 

(4) Taxable years beginning after 

December 31, 2011. [Reserved]. For 

further guidance, see § 1.41–6T(j)(4). 

(5) Taxable years ending before 

January 1, 2012. [Reserved]. For further 

guidance, see § 1.41–6T(j)(5). 

■ Par. 4. Section 1.41–6T is added to 

read as follows: 

§ 1.41–6T. Aggregation of expenditures 

(temporary). 

(a) through (b) [Reserved]. For further 

guidance, see § 1.41–6(a) through (b). 

(c) Allocation of the group credit. The 

group credit is allocated to each member 

of the controlled group on a 

proportionate basis to its share of the 

aggregate of the qualified research 

expenses, basic research payments, and 

amounts paid or incurred to energy 

research consortiums (collectively 

‘‘QREs’’ for purposes of paragraphs (c), 

(d), and (e) of this section) taken into 

account for the taxable year by such 

controlled group for purposes of the 

credit. 

(d) Special rules for consolidated 

groups—(1) In general. For purposes of 

applying paragraph (c) of this section, 

members of a consolidated group who 

are members of a controlled group are 

treated as a single member of the 

controlled group. 

(2) [Reserved]. For further guidance, 

see § 1.41–6(d)(2). 

(3) Special rule for allocation of group 

credit among consolidated group 

members. The portion of the group 

credit that is allocated to a consolidated 

group is allocated to each member of the 

consolidated group on a proportionate 

basis to its share of the aggregate of the 

QREs taken into account for the taxable 

year by such consolidated group for 

purposes of the credit. 

(e) Examples. The following examples 

illustrate the provisions of paragraphs 

(c) and (d) of this section. 

Example 1. Controlled group. A, B, and C 

are a controlled group. A had $100x, B 

$300x, and C $500x of qualified research 

expenses for the year, totaling $900x for the 

group. A, in the course of its trade or 

business, also made a payment of $100x to 

an energy research consortium for energy 

research. The group’s QREs total 1000x and 

the group calculated its total research credit 

to be $60x for the year. Based on each 

member’s proportionate share of the 

controlled group’s aggregate QREs, A is 

allocated $12x, B $18x, and C $30x of the 

credit. 

Example 2. Consolidated group is a 

member of controlled group. The controlled 

group’s members are D, E, F, G, and H. F, G, 

and H file a consolidated return and are 

treated as a single member (FGH) of the 

controlled group. D had $240x, E $360x, and 

FGH $600x of qualified research expenses for 

the year ($1,200x aggregate). The group 

calculated its research credit to be $100x for 

the year. Based on the proportion of each 

member’s share of QREs to the controlled 

group’s aggregate QREs for the taxable year 

D is allocated $20x, E $30x, and FGH $50x 

of the credit. The $50x of credit allocated to 

FGH is then allocated to the consolidated 

group members based on the proportion of 

each consolidated group member’s share of 

QREs to the consolidated group’s aggregate 

QREs. F had $120x, G $240x, and H $240x 

of QREs for the year. Therefore, F is allocated 

$10x, G is allocated $20x, and H is allocated 

$20x. 

(f) through (i) [Reserved]. For further 

guidance, see § 1.41–6(f) through (i). 

(j)(1) through (3) [Reserved]. For 

further guidance, see § 1.41–6(j)(1) 

through (3). 

(4) Taxable years beginning after 

December 31, 2011. Section 1.41–6T is 

applicable for taxable years beginning 

on or after April 3, 2015. Taxpayers may 

apply § 1.41–6T to taxable years 

beginning after December 31, 2011, but 

before April 3, 2015. For a taxpayer that 

does not apply § 1.41–6T to a taxable 

year beginning after December 31, 2011, 

but before April 3, 2015, the guidance 

that applies to such taxable year is 

contained in Notice 2013–20 (2013–15 

IRB 902). 

(5) Taxable years beginning before 

January 1, 2012. See § 1.41–6 as 

contained in 26 CFR part 1, revised 

April 1, 2014. 

(6) Expiration date. The applicability 

of § 1.41–6T expires on April 2, 2018. 

■ Par. 5. Section 1.45G–0 is amended by 

removing the entries in the table of 

contents for § 1.45G–1(f)(4)(i) and 

§ 1.45G–1(f)(4)(ii) and adding an entry 

in the table of contents for §§ 1.45G– 

1(g)(4) and (5) to read as follows: 

§ 1.45G–0. Table of contents for the 

railroad track maintenance credit. 

* * * * * 

(g) * * * 

(4) Taxable years beginning after 

December 31, 2011. 

(5) Taxable years beginning before 

January 1, 2012. 

■ Par. 6. Section 1.45G–1 is amended by 

revising paragraphs (f)(4) and (f)(5)(i) 

and (ii) and adding paragraphs (g)(4) 

and (5) to read as follows: 

§ 1.45G–1. Railroad track maintenance 

credit. 

* * * * * 

(f) * * * 

(4) [Reserved]. For further guidance, 

see § 1.45G–1T(f)(4). 


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Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Rules and Regulations 18099 

(5) [Reserved]. For further guidance 

see § 1.45G–1T(f)(5). 

(g) * * * 

(4) Taxable years beginning after 

December 31, 2011. [Reserved]. For 

further guidance see § 1.45G–1T(g)(4). 

(5) Taxable years beginning before 

January 1, 2012. [Reserved]. For further 

guidance see § 1.45G–1T(g)(5). 

■ Par. 7. Section 1.45G–1T is added to 

read as follows: 

§ 1.45G–1T. Railroad track maintenance 

credit (temporary). 

(a) through (e) [Reserved]. For further 

guidance, see § 1.45G–1(a) through (e). 

(f)(1) through (3) [Reserved]. For 

further guidance, see § 1.45G–1(f)(1) 

through (3). 

(4) Allocation of the group credit. The 

group credit is allocated to each member 

of the controlled group on a 

proportionate basis to its share of the 

aggregate of the QRTMEs taken into 

account for the taxable year by such 

controlled group for purposes of the 

credit. 

(5) Special rules for consolidated 

groups—(i) In general. For purposes of 

applying paragraph (f)(4) of this section, 

members of a consolidated group who 

are members of a controlled group are 

treated as a single member of the 

controlled group. 

(ii) Special rule for allocation of group 

credit among consolidated group 

members. The portion of the group 

credit that is allocated to a consolidated 

group is allocated to each member of the 

consolidated group on a proportionate 

basis to its share of the aggregate of the 

QRTMEs taken into account for the 

taxable year by such consolidated group 

for purposes of the credit. 

(6) through (8) [Reserved]. For further 

guidance, see § 1.45G–1(f)(6) through 

(8). 

(g)(1) through (3) [Reserved]. For 

further guidance, see § 1.45G–1(g)(1) 

through (3). 

(4) Taxable years beginning after 

December 31, 2011. Section 1.45G–1T is 

applicable for taxable years beginning 

on or after April 3, 2015. Taxpayers may 

apply § 1.45G–1T to taxable years 

beginning after December 31, 2011, but 

before April 3, 2015. For a taxpayer that 

does not apply § 1.45G–1T to a taxable 

year beginning after December 31, 2011, 

but before April 3, 2015, the guidance 

that applies to such taxable year is 

contained in Notice 2013–20 (2013–15 

IRB 902). 

(5) Taxable years ending before 

January 1, 2012. See § 1.45–1 as 

contained in 26 CFR part 1, revised 

April 1, 2014. 

(6) Expiration date. The applicability 

of § 1.45G–1T expires on April 2, 2018. 

■ Par. 8. Section 1.280C–4 is amended 

by revising paragraph (b)(2), 

redesignating paragraph (c) as (c)(1) and 

adding paragraphs (c)(2) and (3) to read 

as follows: 

§ 1.280C–4. Credit for increasing research 

activities. 

* * * * * 

(b) * * * 

(2) [Reserved]. For further guidance, 

see § 1.280C–4T(b)(2). 

* * * * * 

(c) * * * 

(2) [Reserved]. For further guidance, 

see § 1.280C–4T(c)(2). 

(3) [Reserved]. For further guidance, 

see § 1.280C–4T(c)(3). 

■ Par. 9. Section 1.280C–4T is added to 

read as follows: 

§ 1.280C–4T. Credit for increasing 

research activities (temporary). 

(a) [Reserved]. For further guidance, 

see § 1.280C–4(a). 

(b) Controlled groups of corporations; 

trades or businesses under common 

control. (1) [Reserved]. For further 

guidance, see § 1.280C–4(b)(1). 

(2) Example. The following example 

illustrates an application of paragraph (b) of 

this section: A, B, and C, all of which are 

calendar year taxpayers, are members of a 

controlled group of corporations (within the 

meaning of section 41(f)(5)). A, B, and C each 

attach a statement to the 2012 Form 6765, 

‘‘Credit for Increasing Research Activities,’’ 

showing A and C were the only members of 

the controlled group to have qualified 

research expenses when calculating the 

group credit. A and C report their allocated 

portions of the group credit on the 2012 Form 

6765 and B reports no research credit on 

Form 6765. Pursuant to § 1.280C–4(a), A and 

B, but not C, each make an election for the 

reduced credit under section 280(c)(3)(B) on 

the 2012 Form 6765. In December 2013, B 

determines it had qualified research expenses 

in 2012 resulting in an increased group 

credit. On an amended 2012 Form 6765, A, 

B, and C each report their allocated portions 

of the group credit. B reports its credit as a 

regular credit under section 41(a) and 

reduces the credit under section 

280C(c)(3)(B). C may not reduce its credit 

under section 280(c)(3)(B) because C did not 

make an election for the reduced credit with 

its original return. 

(c)(1) [Reserved]. For further guidance 

see § 1.280C–4(c)(1). 

(2) Taxable years beginning after 

December 31, 2011. Section 1.280C–4T 

is applicable for taxable years beginning 

on or after April 3, 2015. Taxpayers may 

apply § 1.280C–4T to taxable years 

beginning after December 31, 2011, but 

before April 3, 2015. For a taxpayer that 

does not apply § 1.280C–4T to a taxable 

year beginning after December 31, 2011, 

but before April 3, 2015, the guidance 

that applies to such taxable year is 

contained in Notice 2013–20 (2013–15 

IRB 902). 

(3) For taxable years ending before 

January 1, 2012. See § 1.280C–4 as 

contained in 26 CFR part 1, revised 

April 1, 2014. 

(4) Expiration date. The applicability 

of paragraph (b)(2) expires on April 2, 

2018. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: March 16, 2015. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2015–07331 Filed 4–2–15; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF JUSTICE 

28 CFR Part 16 

[Docket No. OAG 140; AG Order No. 3517– 

2015] 

RIN 1105–AB27 

Revision of Department’s Freedom of 

Information Act Regulations 

AGENCY: Department of Justice. 

ACTION: Final rule. 

SUMMARY: This rule amends the 

Department’s regulations under the 

Freedom of Information Act (‘‘FOIA’’). 

The regulations have been revised to 

update and streamline the language of 

several procedural provisions and to 

incorporate changes brought about by 

the amendments to the FOIA under the 

OPEN Government Act of 2007. 

Additionally, the regulations have been 

updated to reflect developments in the 

case law and to include current cost 

figures to be used in calculating and 

charging fees. 

DATES: Effective May 4, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Lindsay Roberts, Attorney-Advisor, 

Office of Information Policy, (202) 514– 

3642. 

SUPPLEMENTARY INFORMATION: 

Background Information 

On March 21, 2011, the Department of 

Justice published a proposed rule to 

revise its existing regulations under the 

FOIA. See 76 FR 15236. On September 

19, 2011, the Department reopened the 

comment period for another thirty days 

in order to consider additional public 

comments. See 76 FR 57940. 

Comments 

Interested persons were afforded the 

opportunity to participate in the 


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