27934 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Rules and Regulations 

terminates (determined without regard 

to any extension thereof); or 

(2) December 31, 2008. 

(B) Treatment of plans with both 

collectively bargained and noncollectively bargained employees. If a 

collective bargaining agreement applies 

to some, but not all, of the plan 

participants, the definition of whether 

the plan is considered a collectively 

bargained plan for purposes of this 

paragraph (g)(1)(ii) is made in the same 

manner as the definition of whether a 

plan is collectively bargained under 

section 436(f)(3). 

(2) Regulatory effective/applicability 

date. This section is effective and 

applicable for plan years beginning on 

or after January 1, 2011. 

(3) Statutory transition rules—(i) 

General rule. Pursuant to section 

401(a)(35)(H), in the case of the portion 

of an account to which paragraph (c) of 

this section applies and that consists of 

employer securities acquired in a plan 

year beginning before January 1, 2007, 

the requirements of paragraph (c) of this 

section only apply to the applicable 

percentage of such securities. 

(ii) Applicable percentage—(A) 

Phase-in percentage. For purposes of 

this paragraph (g)(3), the applicable 

percentage is determined as follows— 

Plan year to which paragraph (c) of this section 

applies: 

The applicable 

percentage is: 

1st ..................................... 33 

2nd .................................... 66 

3rd and following .............. 100 

(B) Special rule. For a plan for which 

the special effective date under section 

901(c)(3) of PPA ’06 applies, the 

applicable percentage under this 

paragraph (g)(3)(ii) is determined 

without regard to the delayed effective 

date in section 901(c)(3)(A) and (B) of 

PPA ’06. 

(iii) Nonapplication for participants 

age 55 with three years of service. 

Paragraph (g)(3)(i) of this section does 

not apply to an individual who is a 

participant who attained age 55 and had 

completed at least three years of service 

(as defined in paragraph (c)(3) of this 

section) before the first day of the first 

plan year beginning after December 31, 

2005. 

(iv) Separate application by class of 

securities. This paragraph (g)(3) applies 

separately with respect to each class of 

securities. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: May 5, 2010. 

Michael F. Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–11924 Filed 5–18–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9483] 

RIN 1545–BH65 

Qualified Nonpersonal Use Vehicles 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations relating to qualified 

nonpersonal use vehicles as defined in 

section 274(i). Qualified nonpersonal 

use vehicles are excepted from the 

substantiation requirements of section 

274(d)(4) that apply to listed property as 

defined in section 280F(d)(4). These 

final regulations add clearly marked 

public safety officer vehicles as a new 

type of qualified nonpersonal use 

vehicle. These final regulations affect 

employers that provide their employees 

with qualified nonpersonal use vehicles 

and the employees who use such 

vehicles. 

DATES: Effective Date: These regulations 

are effective on May 19, 2010. 

Applicability Date: These regulations 

apply to uses of clearly marked public 

safety officer vehicles occurring after 

May 19, 2010. 

FOR FURTHER INFORMATION CONTACT: Don 

Parkinson at (202) 622–6040 (not a tollfree number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final Income 

Tax Regulations under section 274(i) 

added by section 2(b) of Public Law 99– 

44 (May 24, 1985), which provides a 

definition of qualified nonpersonal use 

vehicle. Temporary Regulation § 1.274– 

5T(k), identifying categories of qualified 

nonpersonal use vehicles and 

Temporary Regulation § 1.274–5T(l), 

providing for definitions of the terms 

‘‘automobile,’’ ‘‘vehicle,’’ ‘‘employer,’’ 

‘‘employee,’’ and ‘‘personal use’’ were 

issued in 1985. (TD 8061 1982–5 CB 93 

(1985)). A notice of proposed 

rulemaking was issued by crossreference to Temporary Regulation 

§ 1.274–5T(k). (LR–145–84, 50 FR 

46088, 1985–2 CB 809 (1985)). 

On June 9, 2008, proposed regulations 

(REG–106897–08) were published in the 

Federal Register (73 FR 32500). The 

proposed regulations incorporated the 

text of § 1.274–5T(k) and added clearly 

marked public safety officer vehicles as 

a new type of qualified nonpersonal use 

vehicle, listed along with clearly 

marked police and fire vehicles at 

§ 1.274–5(k)(2)(ii)(A). A definition of 

clearly marked public safety officer 

vehicles was added to the provision 

defining clearly marked police and fire 

vehicles at § 1.274–5(k)(3), and an 

example illustrating application of the 

rules to a public safety officer vehicle 

was added at § 1.274–5(k)(8) Example 3. 

The proposed regulations incorporated 

the text of § 1.274–5T(l) with no 

changes. The corresponding provisions 

of the proposed regulations in LR–145– 

84 were withdrawn on June 8, 2008. 

Written public comments on the 

proposed regulations at § 1.274–5(k) and 

(l) were received and no hearing was 

requested. After consideration of all the 

comments, these final regulations adopt 

the provisions of the proposed 

regulations with an amendment to 

Example 3 and the provision of a new 

Example 4 in § 1.274–5(k)(8) which are 

intended to assist taxpayers in 

determining whether individual 

employees meet the definition of public 

safety officer. The temporary regulations 

at § 1.274–5T(k) and (l) are withdrawn 

concurrently with the publication of 

these final regulations in the Federal 

Register. The remaining temporary 

regulations at § 1.274–5T are unaffected 

by this Treasury decision. 

Summary of Comments and 

Explanation of Provisions 

Section 274(d) provides that a 

taxpayer is not allowed a deduction or 

credit for certain expenses unless the 

expenses are substantiated. These 

substantiation requirements apply to 

expenses incurred in the of use of any 

listed property (defined in section 

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

passenger automobile and any other 

property used as a means of 

transportation. Section 274(d) does not 

apply to any qualified nonpersonal use 

vehicle as defined in section 274(i). 

Both business and personal use of a 

vehicle that meets the criteria to be a 

qualified nonpersonal use vehicle under 

section 274(i) will also qualify as a 

working condition fringe benefit that is 

excluded from the recipient’s income 


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Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Rules and Regulations 27935 

under section 132(d). 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 both the 

business and the personal use of the 

vehicle will be excluded from the 

employee’s income as a working 

condition fringe benefit under section 

132(d). 

Section 274(i) provides that a 

qualified nonpersonal use vehicle is any 

vehicle which by reason of its nature is 

not likely to be used more than a de 

minimis amount for personal purposes. 

The legislative history to section 274(i) 

provided a list of qualified nonpersonal 

use vehicles and identified a number of 

examples of qualified nonpersonal use 

vehicles such as school buses, qualified 

specialized utility repair trucks, and 

qualified moving vans. The legislative 

history indicated that Congress wanted 

the Commissioner to expand the list to 

include other vehicles appropriate for 

listing because by their nature it is 

highly unlikely that they will be used 

more than a very minimal amount for 

personal purposes. H.R. Rep. No. 99–34, 

at 11 (1985). 

Passenger automobiles such as sedans 

and sport utility vehicles are generally 

not exempt from taxation as qualified 

nonpersonal use vehicles because by 

design they can easily be used for 

personal purposes. However, unmarked 

law enforcement vehicles and clearly 

marked police and fire vehicles are 

included in the list of qualified 

nonpersonal use vehicles set forth in the 

legislative history to section 274(i) and 

incorporated into these final 

regulations. 

Under prior rules, clearly marked 

vehicles provided to Federal, State and 

local government workers who respond 

to emergency situations did not satisfy 

the current regulations governing 

qualified nonpersonal use vehicles if the 

individual workers were not employed 

by either the fire department or police 

department. These final regulations, 

consistent with the proposed 

regulations, add clearly marked public 

safety officer vehicles to the list of 

qualified nonpersonal use vehicles so 

that emergency responders who are not 

employed by either the fire department 

or police department receive the same 

treatment as those who work for the 

police or fire department. 

A clearly marked public safety officer 

vehicle is a vehicle owned or leased by 

a governmental unit or any agency or 

instrumentality thereof, that is required 

to be used for commuting by a public 

safety officer as defined in section 

402(l)(4)(C) who, when not on a regular 

shift, is on call at all times, provided 

that any personal use (other than 

commuting) of the vehicle outside the 

limit of the public safety officer’s 

obligation to respond to an emergency is 

prohibited by such governmental unit. 

A public safety officer vehicle is clearly 

marked if, through painted insignia or 

words, it is readily apparent that the 

vehicle is a public safety officer vehicle. 

Section 402(l)(4)(C) provides that the 

term ‘‘public safety officer’’ shall have 

the same meaning given such term by 

the Omnibus Crime Control and Safe 

Streets Act of 1968, as codified at 42 

U.S.C. 3796b(9)(A). The definition of 

public safety officer is part of the Public 

Safety Officer’s Benefits Act which was 

enacted as part L of Title I of the 

Omnibus Crime Control and Safe Streets 

Act of 1968. 42 U.S.C. 3796b(9)(A) 

defines public safety officer as ‘‘an 

individual serving a public agency in an 

official capacity, with or without 

compensation, as a law enforcement 

officer, a firefighter, a chaplain, or as a 

member of a rescue squad or ambulance 

crew.’’ 

Some commenters suggested 

eliminating some of the requirements 

pertaining to qualified nonpersonal use 

vehicles. In particular, commenters 

suggested elimination of the 

requirement that the vehicle be clearly 

marked, or the requirement that the 

individual be on call at all times, or the 

requirement that the vehicle be 

specially equipped. 

Qualified nonpersonal use vehicles 

were exempted from the substantiation 

and recordkeeping requirements 

imposed under section 274(d) and 

minimal personal use of such vehicles 

was excluded from income because the 

nature of the vehicles prevents more 

than a de minimis amount of personal 

use. If an individual is not on call at all 

times, personal use may be more than 

de minimis. If the vehicle is not 

required to be specially equipped or 

clearly marked, the vehicle will 

function easily as a personal use vehicle 

and is not readily distinguishable from 

vehicles routinely used for personal 

purposes. Thus, these suggested changes 

were not adopted because they conflict 

with the underlying goal and purpose of 

the statute. 

A number of comments were made 

urging that various specific types of 

workers be included within the 

definition ‘‘public safety officer.’’ For 

example, commenters suggested the 

definition of public safety officer should 

be expanded to include employees who 

respond to local disasters such as flash 

floods, pipeline ruptures, hazardous 

material accidents, bridge collapses, and 

mining accidents. Additionally 

commenters suggested that child 

protective service workers, emergency 

management personnel, and members of 

Incident Management Teams which are 

part of the Department of Homeland 

Security’s National Incident 

Management System should all be 

included in the definition of public 

safety officer. 

The determination of the status of an 

individual as a public safety officer is 

made pursuant to a facts and 

circumstances analysis based on an 

evaluation of the relevant criteria in the 

Public Safety Officers’ Benefits Act of 

1978 and its regulations (PSOB 

Regulations, 28 CFR part 32). The PSOB 

regulations set forth criteria to be used 

in determining whether individual 

workers are public safety officers. For 

example, the PSOB Regulations at 28 

CFR 32.3 define ‘‘rescue squad or 

ambulance crew’’ as follows: ‘‘a squad or 

crew whose members are rescue 

workers, ambulance drivers, 

paramedics, health-care responders, 

emergency medical technicians, or other 

similar workers who— 

(1) Are trained in rescue activity or 

the provision of emergency medical 

services; and 

(2) As such members, have the legal 

authority and responsibility to— 

(i) Engage in rescue activity; or 

(ii) Provide emergency medical 

services. 

Rescue activity means search or 

rescue assistance in locating or 

extracting from danger persons lost, 

missing, or in imminent danger of 

serious bodily harm. 

Emergency medical services means— 

(1) Provision of first-response 

emergency medical care (other than in 

a permanent medical-care facility); or 

(2) Transportation of persons in 

medical distress (or under emergency 

conditions) to medical-care facilities. 

As a general rule, the determination of 

the status of an individual as a rescue 

squad or ambulance crew member is 

based on whether that individual is 

trained to engage in rescue activity or to 

provide emergency medical services and 

whether that individual has legal 

authority and legal responsibility to 

engage in rescue activity or provide 

emergency medical services. 

Thus, an individual’s job title is not 

determinative of his or her status as a 

public safety officer. Instead, the 

determination is made based on the 

facts and circumstances of the 

individual’s employment, including 

their training, legal authority and legal 

responsibility. Example 3 has been 

modified and an Example 4 has been 

added to clarify this analysis using the 

criteria in the PSOB Regulations. 


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27936 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Rules and Regulations 

Moreover, these final regulations have 

not been amended to add additional job 

titles to the definition of public safety 

officer as suggested by commenters 

because an employee’s job title is not 

determinative of their status as a public 

safety officer. 

Special Analyses 

It has been determined that this 

Treasury decision 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. It is hereby 

certified that these regulations will not 

have a significant economic impact on 

a substantial number of small entities. 

This certification is based upon the fact 

that these regulations do not require a 

collection of information and do not 

impose any new or different 

requirements on small entities. 

Therefore, a Regulatory Flexibility 

Analysis under the Regulatory 

Flexibility Act (5 U.S.C. chapter 6) is 

not required. Pursuant to section 7805(f) 

of the Internal Revenue Code, this 

notice of proposed rulemaking has been 

submitted to the Chief Council for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Drafting Information 

The principal author of these 

regulations is Don M. Parkinson, Office 

of the Associate Chief Counsel (Tax 

Exempt and Government Entities). 

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. 

Adoption of 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 * * * 

■ Par. 2. Section 1.132–5 paragraph (h) 

is revised to read as follows: 

§ 1.132–5 Working condition fringes. 

* * * * * 

(h) Qualified nonpersonal use 

vehicles—(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 (8), the use of 

the vehicle conforms to the 

requirements of paragraphs (k)(3) 

through (8). 

(2) Shared usage of qualified 

nonpersonal use vehicles. In general, a 

working condition fringe under this 

paragraph (h) is available to the driver 

and all passengers of a qualified 

nonpersonal use vehicle. However, a 

working condition fringe under this 

paragraph (h) is available only with 

respect to the driver and not with 

respect to any passengers of a qualified 

nonpersonal use vehicle described in 

§ 1.274–5(k)(2)(ii)(L) or (P). 

* * * * * 

■ Par. 3. Section 1.274–5 paragraphs (k) 

and (l) and the last sentence of 

paragraph (m) are revised to read as 

follows: 

§ 1.274–5 Substantiation requirements. 

* * * * * 

(k) Exceptions for qualified 

nonpersonal use vehicles—(1) In 

general. The substantiation 

requirements of section 274(d) and this 

section do not apply to any qualified 

nonpersonal use vehicle (as defined in 

paragraph (k)(2) of this section). 

(2) Qualified nonpersonal use 

vehicle—(i) In general. For purposes of 

section 274(d) and this section, the term 

qualified nonpersonal use vehicle 

means any vehicle which, by reason of 

its nature (that is, design), is not likely 

to be used more than a de minimis 

amount for personal purposes. 

(ii) List of vehicles. Vehicles which 

are qualified nonpersonal use vehicles 

include the following: 

(A) Clearly marked police, fire, and 

public safety officer vehicles (as defined 

and to the extent provided in paragraph 

(k)(3) of this section). 

(B) Ambulances used as such or 

hearses used as such. 

(C) Any vehicle designed to carry 

cargo with a loaded gross vehicle weight 

over 14,000 pounds. 

(D) Bucket trucks (cherry pickers). 

(E) Cement mixers. 

(F) Combines. 

(G) Cranes and derricks. 

(H) Delivery trucks with seating only 

for the driver, or only for the driver plus 

a folding jump seat. 

(I) Dump trucks (including garbage 

trucks). 

(J) Flatbed trucks. 

(K) Forklifts. 

(L) Passenger buses used as such with 

a capacity of at least 20 passengers. 

(M) Qualified moving vans (as defined 

in paragraph (k)(4) of this section). 

(N) Qualified specialized utility repair 

trucks (as defined in paragraph (k)(5) of 

this section). 

(O) Refrigerated trucks. 

(P) School buses (as defined in section 

4221(d)(7)(c)). 

(Q) Tractors and other special purpose 

farm vehicles. 

(R) Unmarked vehicles used by law 

enforcement officers (as defined in 

paragraph (k)(6) of this section) if the 

use is officially authorized. 

(S) Such other vehicles as the 

Commissioner may designate. 

(3) Clearly marked police, fire, or 

public safety officer vehicles. A police, 

fire, or public safety officer vehicle is a 

vehicle, owned or leased by a 

governmental unit, or any agency or 

instrumentality thereof, that is required 

to be used for commuting by a police 

officer, fire fighter, or public safety 

officer (as defined in section 402(l)(4)(C) 

of this chapter) who, when not on a 

regular shift, is on call at all times, 

provided that any personal use (other 

than commuting) of the vehicle outside 

the limit of the police officer’s arrest 

powers or the fire fighter’s or public 

safety officer’s obligation to respond to 

an emergency is prohibited by such 

governmental unit. A police, fire, or 

public safety officer vehicle is clearly 

marked if, through painted insignia or 

words, it is readily apparent that the 

vehicle is a police, fire, or public safety 

officer vehicle. A marking on a license 

plate is not a clear marking for purposes 

of this paragraph (k). 

(4) Qualified moving van. The term 

qualified moving van means any truck 

or van used by a professional moving 

company in the trade or business of 

moving household or business goods 

if— 

(i) No personal use of the van is 

allowed other than for travel to and 

from a move site (or for de minimis 

personal use, such as a stop for lunch 

on the way between two move sites); 

(ii) Personal use for travel to and from 

a move site is an irregular practice (that 

is, not more than five times a month on 

average); and 

(iii) Personal use is limited to 

situations in which it is more 

convenient to the employer, because of 

the location of the employee’s residence 

in relation to the location of the move 

site, for the van not to be returned to the 

employer’s business location. 

(5) Qualified specialized utility repair 

truck. The term qualified specialized 

utility repair truck means any truck (not 

including a van or pickup truck) 


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Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Rules and Regulations 27937 

specifically designed and used to carry 

heavy tools, testing equipment, or parts 

if— 

(i) The shelves, racks, or other 

permanent interior construction which 

has been installed to carry and store 

such heavy items is such that it is 

unlikely that the truck will be used 

more than a de minimis amount for 

personal purposes; and 

(ii) The employer requires the 

employee to drive the truck home in 

order to be able to respond in 

emergency situations for purposes of 

restoring or maintaining electricity, gas, 

telephone, water, sewer, or steam utility 

services. 

(6) Unmarked law enforcement 

vehicles—(i) In general. The 

substantiation requirements of section 

274(d) and this section do not apply to 

officially authorized uses of an 

unmarked vehicle by a ‘‘law 

enforcement officer’’. To qualify for this 

exception, any personal use must be 

authorized by the Federal, State, county, 

or local governmental agency or 

department that owns or leases the 

vehicle and employs the officer, and 

must be incident to law-enforcement 

functions, such as being able to report 

directly from home to a stakeout or 

surveillance site, or to an emergency 

situation. Use of an unmarked vehicle 

for vacation or recreation trips cannot 

qualify as an authorized use. 

(ii) Law enforcement officer. The term 

law enforcement officer means an 

individual who is 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 such crimes), who is authorized by 

law to carry firearms, execute search 

warrants, and to make arrests (other 

than merely a citizen’s arrest), and who 

regularly carries firearms (except when 

it is not possible to do so because of the 

requirements of undercover work). The 

term ‘‘law enforcement officer’’ may 

include an arson investigator if the 

investigator otherwise meets the 

requirements of this paragraph (k)(6)(ii), 

but does not include Internal Revenue 

Service special agents. 

(7) Trucks and vans. The 

substantiation requirements of section 

274(d) and this section apply generally 

to any pickup truck or van, unless the 

truck or van has been specially modified 

with the result that it is not likely to be 

used more than a de minimis amount 

for personal purposes. For example, a 

van that has only a front bench for 

seating, in which permanent shelving 

that fills most of the cargo area has been 

installed, that constantly carries 

merchandise or equipment, and that has 

been specially painted with advertising 

or the company’s name, is a vehicle not 

likely to be used more than a de 

minimis amount for personal purposes. 

(8) Examples. The following examples 

illustrate the provisions of paragraph 

(k)(3) and (6) of this section: 

Example 1. Detective C, who is a ‘‘law 

enforcement officer’’ employed by a state 

police department, headquartered in City M, 

is provided with an unmarked vehicle 

(equipped with radio communication) for use 

during off-duty hours because C must be able 

to communicate with headquarters and be 

available for duty at any time (for example, 

to report to a surveillance or crime site). The 

police department generally has officially 

authorized personal use of the vehicle by C 

but has prohibited use of the vehicle for 

recreational purposes or for personal 

purposes outside the state. Thus, C’s use of 

the vehicle for commuting between 

headquarters or a surveillance site and home 

and for personal errands is authorized 

personal use as described in paragraph 

(k)(6)(i) of this section. With respect to these 

authorized uses the vehicle is not subject to 

the substantiation requirements of section 

274(d) and the value of these uses is not 

included in C’s gross income. 

Example 2. Detective T is a ‘‘law 

enforcement officer’’ employed by City M. T 

is authorized to make arrests only within M’s 

city limits. T, along with all other officers of 

the force, is ordinarily on duty for eight 

hours each work day and on call during the 

other sixteen hours. T is provided with the 

use of a clearly marked police vehicle in 

which T is required to commute to his home 

in City M. The police department’s official 

policy regarding marked police vehicles 

prohibits its personal use (other than 

commuting) of the vehicles outside the city 

limits. When not using the vehicle on the job, 

T 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 T conforms to 

the requirements of paragraph (k)(3) of this 

section. Therefore, the value of that use is 

excluded from T’s gross income as a working 

condition fringe and the vehicle is not 

subject to the substantiation requirements of 

section 274(d). 

Example 3. Director C is employed by City 

M as the director of the City’s rescue squad 

and is provided with a vehicle for use in 

responding to emergencies. Director C is 

trained in rescue activity and has the legal 

authority and legal responsibility to engage 

in rescue activity. The city’s rescue squad is 

not a part of City M’s police or fire 

departments. The director’s vehicle is a 

sedan which is painted with insignia and 

words identifying the vehicle as being owned 

by the City’s rescue squad. C, when not on 

a regular shift, is on call at all times. The 

City’s official policy regarding clearly marked 

public safety officer vehicles prohibits 

personal use (other than for commuting) of 

the vehicle outside of the limits of the public 

safety officer’s obligation to respond to an 

emergency. When not using the vehicle to 

respond to emergencies, City M authorizes C 

to use the vehicle only for commuting, 

personal errands on the way between work 

and home, and personal errands within the 

limits of C’s obligation to respond to 

emergencies. With respect to these 

authorized uses, the vehicle is not subject to 

the substantiation requirements of section 

274(d) and the value of these uses is not 

includable in C’s gross income. 

Example 4. Coroner D is employed by 

County N to investigate and determine the 

cause, time, and manner of certain deaths 

occurring in the County. Coroner D also 

safeguards the property of the deceased, 

notifies the next of kin, conducts inquests, 

and arranges for the burial of indigent 

persons. D is provided with a vehicle for use 

by County N. The vehicle is to be used in 

County N business and for commuting. 

Personal use other than for commuting 

purposes is forbidden. D is trained in rescue 

activity but has no legal authority or legal 

responsibility to engage in rescue activity. 

D’s vehicle is a sedan which is painted with 

insignia and words identifying it as a County 

N vehicle. D, when not on a regular shift, is 

on call at all times. D does not satisfy the 

criteria of a public safety officer under 28 

CFR 32.3 (2008). Thus, D’s vehicle cannot 

qualify as a clearly marked public safety 

officer vehicle. Accordingly, business use of 

the vehicle is subject to the substantiation 

requirements of section 274(d), and the value 

of any personal use of the vehicle, such as 

commuting, is includable in D’s gross 

income. 

(l) Definitions. For purposes of section 

274(d) and this section, the terms 

automobile and vehicle have the same 

meanings as prescribed in § 1.61– 

21(d)(1)(ii) and (e)(2), respectively. Also, 

for purposes of section 274(d) and this 

section, the terms employer, employee 

and personal use have the same 

meanings as prescribed in § 1.274–6T(e). 

(m) * * * However, paragraph (j)(3) 

of this section applies to expenses paid 

or incurred after September 30, 2002, 

and paragraph (k) applies to clearly 

marked public safety officer vehicles, as 

defined in § 1.274–5(k)(3), only with 

respect to uses occurring after May 19, 

2010. 

■ Par. 4. Section 1.274–5T is amended 

by revising paragraphs (k) and (l) to read 

as follows: 

§ 1.274–5T Substantiation requirements 

(temporary). 

* * * * * 

(k) and (l) [Reserved]. For further 

guidance, see § 1.274–5(k) and (l). 

* * * * * 

■ Par. 5. Section 1.280F–6 is amended 

by revising paragraph (b)(2)(ii) to read as 

follows: 

§ 1.280F–6 Special rules and definitions. 

* * * * * 

(b) * * * 

(2) * * * 

(ii) Exception. The term ‘‘listed 

property’’ does not include any vehicle 


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27938 Federal Register / Vol. 75, No. 96 / Wednesday, May 19, 2010 / Rules and Regulations 

that is a qualified nonpersonal use 

vehicle as defined in section 274(i) and 

§ 1.274–5(k). 

* * * * * 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: May 5, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–11767 Filed 5–18–10; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2009–0269; FRL–9152–6] 

Approval and Promulgation of 

Implementation Plans; State of 

California; Legal Authority 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: EPA is taking final action to 

clarify the contents of the applicable 

implementation plan for the State of 

California under the Clean Air Act. 

Specifically, EPA is taking final action 

to clarify that the statutory provisions 

submitted by California and approved 

by EPA in 1972 supporting the State’s 

legal authority chapter of the original 

implementation plan were superseded 

by a subsequent approval by EPA in 

1980 of California’s revision to the legal 

authority chapter of the plan. EPA is 

taking this action to clarify the status in 

the California plan of the statutory 

provisions submitted and approved in 

1972. 

DATES: Effective Date: This rule is 

effective on June 18, 2010. 

ADDRESSES: EPA has established docket 

number EPA–R09–OAR–2009–0269 for 

this action. The index to the docket is 

available electronically at http:// 

www.regulations.gov or in hard copy at 

EPA Region IX, 75 Hawthorne Street, 

San Francisco, California. While all 

documents in the docket are listed in 

the index, some information may be 

publicly available only at the hard copy 

location (e.g., copyrighted material), and 

some may not be publicly available in 

either location (e.g., CBI). To inspect the 

hard copy materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

Gerardo Rios, Chief, Permits Office 

(AIR–3), U.S. Environmental Protection 

Agency, Region IX, (415) 972–3974: 

rios.gerardo@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, ‘‘we,’’ ‘‘us’’ 

and ‘‘our’’ refer to EPA. 

Table of Contents 

I. Proposed Action 

II. Public Comments and EPA Responses 

III. Final Action 

IV. Statutory and Executive Order Reviews 

I. Proposed Action 

On January 29, 2010 (75 FR 4742), 

under the Clean Air Act (CAA or ‘‘Act’’), 

we proposed to clarify that the statutory 

provisions submitted by California in 

1972 supporting the State’s legal 

authority chapter of the original 

implementation plan were superseded 

by a subsequent approval by EPA in 

1980 of a revision to California’s legal 

authority chapter of the plan. 

In support of our proposed action, we 

provided a detailed account of the 

regulatory context in which the original 

California State implementation plan 

(SIP) was submitted and approved by 

EPA. We also described in detail the 

contents of the original California SIP, 

which consisted of 13 parts, the first 

part (‘‘State General Plan’’) of which 

included a chapter 7 (‘‘Legal 

Considerations’’), referred to herein as 

the ‘‘legal authority’’ chapter. The 

original SIP also included an appendix 

(entitled ‘‘Appendix II: State Statutes 

and other Legal Documents Pertinent to 

Air Pollution Control in California’’) to 

the legal authority chapter. The legal 

authority chapter included many 

citations to individual sections within 

the California Health & Safety Code 

(CH&SC) and other California codes, as 

well as citations to (then) recently 

approved legislation, and attorney 

general opinions as support for the 

assurance that adequate legal authority 

exists in the State to meet CAA and EPA 

SIP requirements. 

As described in the proposal, the 

appendix to the legal authority chapter 

in the plan (herein, ‘‘appendix II’’) 

included the specific sections of 

California code and other legal 

documents cited in chapter 7, but also 

included many sections of California 

code that were not cited specifically in 

chapter 7. Our proposed rule describes 

in detail the contents of appendix II and 

its 14 categories of statutory and other 

legal documents. 

In May 1972, we approved in part and 

disapproved in part the original 

California SIP. See 37 FR 10842 (May 

31, 1972) and 40 CFR 52.220(b). EPA’s 

approval included both chapter 7 and 

the statutory and other documents 

contained in appendix II as described 

above. 

As explained in our proposed rule, in 

response to EPA’s request and in 

response to the Clean Air Act 

Amendments of 1977, California 

undertook a comprehensive update to 

the California SIP. On March 16, 1979, 

the California Air Resources Board 

(ARB) submitted a revision to the legal 

authority chapter of the SIP, entitled 

‘‘Chapter 3—Legal Authority, Revision 

to State of California Implementation 

Plan for the Attainment and 

Maintenance of Ambient Air Quality 

Standards (December 1978),’’ (also 

referred to herein as ‘‘Chapter 3—Legal 

Authority’’ or the ‘‘revised legal 

authority’’ chapter). Much like the 

original legal authority chapter, the 

revised legal authority chapter provides 

an overview of air pollution control in 

California. While the general topics 

covered in the revised legal authority 

chapter were similar to those covered in 

the original legal authority chapter, the 

discussion is completely re-organized 

and updated to reflect, among other 

things, recodifications of statutory 

provisions. Also, like the legal authority 

chapter in the original SIP, the revised 

legal authority chapter includes 

numerous citations to individual 

sections of the CH&SC (which had been 

re-numbered and re-codified since the 

time of the original SIP), certain 

citations to other California codes and 

other legal documents. However, unlike 

the legal authority chapter in the 

original SIP, the revised legal authority 

chapter, as submitted in 1979, did not 

include physical copies of the actual 

statutory provisions nor the other 

documents cited in the chapter. Instead, 

the 1979 SIP revision simply 

incorporates by reference the 1978 

edition of California Air Pollution 

Control Laws as ‘‘appendix 3–A’’ to the 

chapter. Later in 1979, we proposed 

approval of the revised SIP ‘‘Chapter 3— 

Legal Authority’’ as an update and 

clarification of the 1972 SIP. See 44 FR 

38912 (July 3, 1979). The following year, 

we took final action, effective 

September 10, 1980, to approve the 

revised legal authority chapter. See 45 

FR 53136 (August 11, 1980) and 40 CFR 

52.220(c)(48). Since that time, EPA has 

not approved any other revision to the 

chapter that addresses legal authority in 

the California SIP. 

Based upon our review of the relevant 

provisions of the original California SIP 

and the related 1979 SIP revision, and 

the corresponding EPA approval 

actions, we proposed to clarify the 

contents of the SIP to reflect our 

determination that the statutory 

provisions and other legal documents 


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