[Federal Register Volume 66, Number 12 (Thursday, January 18, 2001)]
[Proposed Rules]
[Pages 4754-4755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1413]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-114998-99]
RIN 1545-AY71


Obligations of States and Political Subdivisions

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of notice of proposed rulemaking; notice of 
proposed rulemaking by cross-reference to temporary regulations; and 
notice of public hearing.

-----------------------------------------------------------------------

SUMMARY: This document withdraws portions of the notice of proposed 
rulemaking published in the Federal Register on January 22, 1998. In 
the

[[Page 4755]]

Rules and Regulations section of this issue of the Federal Register, 
the IRS is issuing temporary regulations that provide guidance to state 
and local governments that issue bonds for output facilities. The text 
of those temporary regulations also serves as the text of these 
proposed regulations. This document provides a notice of public hearing 
on these proposed regulations.

DATES: Written comments must be received by July 18, 2001. Outlines of 
topics to be discussed at the public hearing scheduled for July 24, 
2001, at 10 a.m. must be received by July 3, 2001.

ADDRESSES: Send submissions to: CC:M&SP:RU (REG-114998-99), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand delivered between the hours of 8 a.m. 
and 5 p.m. to: CC:M&SP:RU (REG-114998-99), courier's desk, Internal 
Revenue Service, 1111 Constitution Avenue NW., Washington, DC. 
Alternatively, taxpayers may submit comments electronically via the 
Internet by selecting the ``Tax Regs'' option on the IRS Home Page, or 
by submitting comments directly to the IRS Internet site at http://
www.irs.gov/tax__regs/regslist.html. The public hearing will be held in 
the Auditorium, Internal Revenue Building, 1111 Constitution Avenue 
NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Rose M. 
Weber, (202) 622-3980; concerning submissions and the hearing, Treena 
Garrett, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Proposed regulations (REG-110965-97) Secs. 1.141-7, 1.141-8 and 
1.141-15(f) through (i), published on January 22, 1998 (63 FR 3296), 
addressed the application of the private activity bond tests of section 
141(b) (1) and (2) to output contracts for output facilities and the 
application of the $15 million limitation under section 141(b)(4) to 
output facility financings. These proposed sections are withdrawn.
    Sections 1.141-7T, 1.141-8T and 1.141-15T published in the Rules 
and Regulations portion of this issue of the Federal Register are 
issued to provide guidance on certain aspects of the private activity 
bond restrictions under section 141 of the Internal Revenue Code.
    The text of the temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It has also 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations, and because 
the regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Internal Revenue Code, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments that are submitted 
timely (preferably a signed original and eight copies) to the IRS. All 
comments will be available for public inspection and copying.
    A public hearing has been scheduled for July 24, 2001, at 10 a.m. 
in the Auditorium, Internal Revenue Building, 1111 Constitution Avenue, 
NW., Washington, DC. Because of access restrictions, visitors will not 
be admitted beyond the lobby more than 15 minutes before the hearing 
starts.
    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 written comments by July 18, 2001 and submit an outline of the 
topics to be discussed and the time to be devoted to each topic by July 
3, 2001.
    A period of 10 minutes will be allotted to each person for making 
comments.
    An agenda showing the scheduling of the speakers will be prepared 
after the deadline for receiving outlines has passed. Copies of the 
agenda will be available free of charge at the hearing.

Drafting Information

    The principal authors of these regulations are Bruce M. Serchuk, 
and Rose M. Weber, Office of Chief Counsel (Tax-exempt and Government 
Entities), Internal Revenue Service, and Stephen J. Watson, Office of 
Tax Legislative Counsel, Department of the Treasury. However, other 
personnel from the IRS and Treasury Department participated in their 
development.

Partial Withdrawal of Notice of Proposed Rulemaking

    Under the authority of 26 U.S.C. 7805, Secs. 1.141-7, 1.141-8 and 
1.141-15(f) through (i) in the notice of proposed rulemaking that was 
published on January 22, 1998 (63 FR 3256) are withdrawn.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be 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 * * *

    Par. 2. Sections 1.141-7 and 1.141-8 are added to read as follows:


Sec. 1.141-7  Special rules for output facilities.

    [The text of this proposed section is the same as the text of 
Sec. 1.141-7T published elsewhere in this issue of the Federal 
Register.]


Sec. 1.141-8  $15 million limitation for output facilities.

    [The text of this proposed section is the same as the text of 
Sec. 1.141-8T published elsewhere in this issue of the Federal 
Register.]
    Par. 3. Section 1.141-15 is amended by adding paragraphs (f) 
through (i) to read as follows:


Sec. 1.141-15  Effective dates.

* * * * *
    (f) through (i) [The text of proposed paragraphs (f) through (i) is 
the same as the text of Sec. 1.141-15T(f) through (i) published 
elsewhere in this issue of the Federal Register.]

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 01-1413 Filed 1-17-01; 8:45 am]
BILLING CODE 4830-01-P