78696 Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Rules and Regulations 

the change, the applicant must comply 

with certain regulations in effect on the 

date of application for the change. The 

FAA has determined that the Model 

MBB–BK117 D–2 must also comply 

with the noise certification 

requirements of 14 CFR part 36; and the 

FAA must issue a finding of regulatory 

adequacy under § 611 of Public Law 92– 

574, the ‘‘Noise Control Act of 1972.’’ 

Regulatory Basis for Special Conditions 

The Administrator has determined 

that the applicable airworthiness 

regulations (that is, 14 CFR part 29) do 

not contain adequate or appropriate 

safety standards for the MBB–BK117 

D22 model helicopter because of a novel 

or unusual design feature. Therefore, 

special conditions are prescribed under 

the provisions of 14 CFR 21.16. 

The FAA issues special conditions, as 

defined in § 11.19, in accordance with 

§ 11.38, and they become part of the 

type certification basis under § 21.101. 

Special conditions are initially 

applicable to the model for which they 

are issued. Should the type certificate 

for that model be amended later to 

include any other model that 

incorporates the same novel or unusual 

design feature, or should any other 

model already included on the same 

type certificate be modified to 

incorporate the same novel or unusual 

design feature, the special conditions 

would also apply to the other model. 

Novel or Unusual Design Features 

The MBB–BK117 D–2 model 

helicopter will incorporate the 

following novel or unusual design 

feature: 

• A 30-minute power rating. 

Applicability 

These special conditions are 

applicable to the Airbus Helicopters 

Deutschland GmbH Model MBB–BK117 

D2 helicopter. Should Airbus 

Helicopters Deutschland GmbH apply at 

a later date for an amendment to the 

type certificate to include another 

model incorporating the same novel or 

unusual design feature, the special 

conditions would apply to that model as 

well. 

Conclusion 

This action affects only certain novel 

or unusual design features on the Airbus 

Helicopters Deutschland GmbH Model 

MBB–BK117 D–2 helicopter. It is not a 

rule of general applicability. 

List of Subjects in 14 CFR Part 29 

Aircraft, Aviation safety, Reporting 

and recordkeeping requirements. 

The authority citation for these 

special conditions is as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701– 

44702, 44704. 

The Special Conditions 

Accordingly, pursuant to the 

authority delegated to me by the 

Administrator, the following special 

conditions are issued as part of the type 

certification basis for Airbus Helicopters 

Deutschland GmbH Model MBB–BK117 

D–2 helicopters. Unless stated 

otherwise, all requirements in 

§§ 29.1049, 29.1305 and 29.1521 remain 

unchanged. 

Section 29.1049 Hover cooling test 

procedures. In addition to the 

requirements of this section, for 

rotorcraft with a 30-minute power 

rating, the hovering cooling provisions 

at the 30-minute power rating must be 

shown— 

(a) At maximum weight or at the 

greatest weight at which the rotorcraft 

can hover (if less), at sea level, with the 

power required to hover but not more 

than the 30-minute power, in the 

ground effect in still air, until at least 5 

minutes after the occurrence of the 

highest temperature recorded, or until 

the continuous time limit of the 30- 

minute power rating if the highest 

temperature recorded is not stabilized 

before. 

(b) At maximum weight and at the 

altitude resulting in zero rate of climb 

for this configuration, until at least 5 

minutes after the occurrence of the 

highest temperature recorded, or until 

the continuous time limit of the 30- 

minute power rating if the highest 

temperature recorded is not stabilized 

before. 

Section 29.1305 Powerplant 

instruments, at Amendment 29–40. In 

addition to the requirements of this 

section, a means must be provided to 

indicate to the pilot when the engine is 

at the 30-minute power level, when the 

event begins, and when the time 

interval expires. 

Section 29.1521 Powerplant 

limitations, at Amendment 29–41. In 

addition to the requirements of this 

section, use of the 30-minute power 

must be limited to no more than 30 

minutes per use. The use of the 30- 

minute power must also be limited by: 

(1) The maximum rotational speed, 

which may not be greater than— 

(i) The maximum value determined 

by the rotor design; or 

(ii) The maximum value demonstrated 

during the type tests; 

(2) The maximum allowable turbine 

inlet or turbine outlet gas temperature 

(for turbine engines); 

(3) The maximum allowable power or 

torque for each engine, considering the 

power input limitations of the 

transmission with all engines operating; 

(4) The maximum allowable power or 

torque for each engine considering the 

power input limitations of the 

transmission with one engine 

inoperative; 

(5) The time limit for the use of the 

power corresponding to the limitations 

established in paragraphs (1) through (4) 

above; and 

(6) The maximum allowable engine 

and transmission oil temperatures, if the 

time limit established in paragraph (5) 

above exceeds 2 minutes. 

Issued in Fort Worth, Texas, on December 

19, 2014. 

Lance T. Gant 

Acting Directorate Manager, Rotorcraft 

Directorate, Aircraft Certification Service. 

[FR Doc. 2014–30562 Filed 12–30–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9689] 

RIN 1545–BL52 

Guidance Regarding Dispositions of 

Tangible Depreciable Property; 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains 

corrections to final regulations (TD 

9689) that were published in the 

Federal Register on Monday, August 18, 

2014 (79 FR 48661). The final 

regulations are regarding dispositions of 

property subject to depreciation under 

section 168 of the Internal Revenue 

Code. 

DATES: This correction is effective on 

December 31, 2014 and applicable 

beginning August 18, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Kathleen Reed, at (202) 317–7005 (not a 

toll free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9689) that 

are the subject of this correction are 

under section 168 of the Internal 

Revenue Code. 

Need for Correction 

As published, the final regulations 

(TD 9689) contain errors that may prove 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Rules and Regulations 78697 

to be misleading and are in need of 

clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendments: 

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 1.168(i)–1 also issued under 26 

U.S.C. 168(i)(4). 

■ Par. 2. Section 1.168(i)–1 is amended 

as follows: 

■ 1. Paragraph (c)(2)(ii)(D) is revised. 

■ 2. The third sentences of paragraphs 

(e)(3)(ii)(B), Example 2. (ii) and 

(e)(3)(iii)(A) are revised. 

■ 3. Paragraph (e)(3)(iii)(C)(3) is revised. 

■ 4. The second sentence of paragraph 

(e)(3)(v)(B)(1) is revised. 

■ 5. In paragraph (f)(3) remove the 

phrase ‘‘Allowed Depreciation 

Deductions Allocated and Apportioned 

to a Separate Category Total/Allowed 

Depreciation Deductions and 

Apportioned to Foreign Source 

Income.’’ and add in its place ‘‘Allowed 

Depreciation Deductions Allocated and 

Apportioned to a Separate Category/

Total Allowed Depreciation Deductions 

and Apportioned to Foreign Source 

Income.’’ 

■ 6. In the first line of paragraph 

(j)(3)(ii), remove the phrase ‘‘allowed 

or’’. 

■ 7. Paragraph (m)(4) is revised. 

The revisions read as follows: 

§ 1.168(i)–1 General asset accounts. 

* * * * * 

(c) * * * 

(2) * * * 

(ii) * * * 

(D) Assets not eligible for any 

additional first year depreciation 

deduction, including assets for which 

the taxpayer elected not to deduct the 

additional first year depreciation, 

provided by, for example, section 

168(k), section 168(l), section 168(m), 

section 168(n), section 1400L(b), or 

section 1400N(d), must be grouped into 

a separate general asset account; 

* * * * * 

(e) * * * 

(3) * * * 

(ii) * * * 

(B) * * * 

Example 2. * * * 

(ii) * * * The gain of $232 is subject to 

section 1245 to the extent of the depreciation 

allowed or allowable for the account, plus 

the expensed cost for assets in the account, 

less the amounts previously recognized as 

ordinary income ($1,232 + $0 ¥ $0 = 

$1,232). * * * 

(iii) * * * 

(A) * * * The adjusted depreciable 

basis of the asset at the time of the 

disposition, as determined under the 

applicable convention for the general 

asset account in which the asset was 

included, equals the unadjusted 

depreciable basis of the asset less the 

greater of the depreciation allowed or 

allowable for the asset. The allowable 

depreciation is computed by using the 

depreciation method, recovery period, 

and convention applicable to the 

general asset account in which the asset 

was included and by including the 

portion of the additional first year 

depreciation deduction claimed for the 

general asset account that is attributable 

to the asset disposed of. * * * 

* * * * * 

(C) * * * 

(3) The depreciation reserve of the 

general asset account is reduced by the 

greater of the depreciation allowed or 

allowable for the asset as of the end of 

the taxable year immediately preceding 

the year of disposition. The allowable 

depreciation is computed by using the 

depreciation method, recovery period, 

and convention applicable to the 

general asset account in which the asset 

was included and by including the 

portion of the additional first year 

depreciation deduction claimed for the 

general asset account that is attributable 

to the asset disposed of; and 

* * * * * 

(v) * * * 

(B) * * * 

(1) The adjusted depreciable basis of 

the asset at the time of disposition 

equals the unadjusted depreciable basis 

of the asset less the greater of the 

depreciation allowed or allowable for 

the asset. The allowable depreciation is 

computed by using the depreciation 

method, recovery period, and 

convention applicable to the general 

asset account in which the asset was 

included and by including the portion 

of the additional first year depreciation 

deduction claimed for the general asset 

account that is attributable to the 

relinquished asset. * * * * * 

(m) * * * 

(4) Optional application of TD 9564. 

A taxpayer may choose to apply 

§ 1.168(i)–1T as contained in 26 CFR 

part 1 edition revised as of April 1, 

2014, to taxable years beginning on or 

after January 1, 2012. However, a 

taxpayer may not apply § 1.168(i)–1T as 

contained in 26 CFR part 1 edition 

revised as of April 1, 2014, to taxable 

years beginning on or after January 1, 

2014. 

* * * * * 

■ Par. 3. Section 1.168(i)–7 is amended 

by revising paragraph (e)(4) to read as 

follows: 

§ 1.168(i)–7 Accounting for MACRS 

property. 

* * * * * 

(e) * * * 

(4) Optional application of TD 9564. 

A taxpayer may choose to apply 

§ 1.168(i)–7T as contained in 26 CFR 

part 1 edition revised as of April 1, 

2013, to taxable years beginning on or 

after January 1, 2012. However, a 

taxpayer may not apply § 1.168(i)–7T as 

contained in 26 CFR part 1 edition 

revised as of April 1, 2013, to taxable 

years beginning on or after January 1, 

2014. 

* * * * * 

■ Par. 4. Section 1.168(i)–8 is amended 

as follows: 

■ 1. Remove the phrase ‘‘allowed or’’ 

wherever it appears in paragraphs 

(f)(2)(ii), (f)(3)(ii), (h)(2)(iv), and 

(h)(3)(iv). 

■ 2. Revise paragraphs (h)(2)(iii) and 

(h)(3)(iii). 

The revisions read as follows: 

§ 1.168(i)–8 Dispositions of MACRS 

property. 

* * * * * 

(h) * * * 

(2) * * * 

(iii) The depreciation reserve of the 

multiple asset account or pool must be 

reduced by the greater of the 

depreciation allowed or allowable for 

the asset disposed of as of the end of the 

taxable year immediately preceding the 

year of disposition. The allowable 

depreciation is computed by using the 

depreciation method, recovery period, 

and convention applicable to the 

multiple asset account or pool in which 

the asset disposed of was included and 

by including the additional first year 

depreciation deduction claimed for the 

asset disposed of; and 

* * * * * 

(3) * * * 

(iii) The depreciation reserve of the 

asset must be reduced by the greater of 

the depreciation allowed or allowable 

for the disposed portion as of the end of 

the taxable year immediately preceding 

the year of disposition. The allowable 

depreciation is computed by using the 

depreciation method, recovery period, 

and convention applicable to the asset 

in which the disposed portion was 

included and by including the portion 


tkelley on DSK3SPTVN1PROD with RULES
78698 Federal Register / Vol. 79, No. 250 / Wednesday, December 31, 2014 / Rules and Regulations 

of the additional first year depreciation 

deduction claimed for the asset that is 

attributable to the disposed portion; and 

* * * * * 

Martin V. Franks, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. 2014–30186 Filed 12–30–14; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 199 

[DoD–2010–HA–0068] 

RIN 0720–AB39 

Civilian Health and Medical Program of 

the Uniformed Services (CHAMPUS); 

TRICARE Retired Reserve 

AGENCY: Office of the Secretary, 

Department of Defense. 

ACTION: Final rule. 

SUMMARY: TRICARE Retired Reserve 

(TRR) is a premium-based TRICARE 

health plan available for purchase 

worldwide by qualified members of the 

Retired Reserve and by qualified 

survivors of TRR members. This final 

rule responds to public comments 

received to an interim final rule that 

was published in the Federal Register 

on August 6, 2010 (75 FR 47452–47457). 

That rule established requirements and 

procedures to implement the TRR 

program in fulfillment of section 705 of 

the National Defense Authorization Act 

for Fiscal Year 2010 (NDAA–10) (Pub. L. 

111–84). This final rule also revises 

requirements and procedures as 

indicated. 

DATES: This rule is effective January 30, 

2015. 

FOR FURTHER INFORMATION CONTACT: Jody 

Donehoo, Defense Health Agency, 

TRICARE Health Plan, telephone (703) 

681–0039. Questions regarding payment 

of specific claims under the TRICARE 

allowable charge method should be 

addressed to the appropriate TRICARE 

contractor. 

SUPPLEMENTARY INFORMATION: 

I. Introduction and Background 

A. Overview 

An interim final rule was published 

in the Federal Register on August 6, 

2010 (75 FR 47452–47457), that 

established requirements and 

procedures to implement the TRICARE 

Retired Reserve program in fulfillment 

of section 705 of the National Defense 

Authorization Act for Fiscal Year 2010 

(NDAA–10) (Pub. L. 111–84). Section 

705 added new section 1076e to Title 

10, United States Code. Section 1076e 

allows members of the Retired Reserve 

who are qualified for non-regular 

retirement, but are not yet 60 years of 

age, as well as certain survivors to 

qualify to purchase medical coverage 

equivalent to the TRICARE Standard 

(and Extra) benefit unless that member 

is either enrolled in, or eligible to enroll 

in, a health benefits plan under Chapter 

89 of Title 5, United States Code. 

B. Public Comments 

The interim final rule was published 

in the Federal Register on August 6, 

2010. We received 92 online comments. 

We thank those who provided 

comments. Specific matters raised by 

those who submitted comments are 

summarized below. 

II. Provisions of the Rule Regarding the 

TRICARE Retired Reserve Program 

A. Establishment of the TRICARE 

Retired Reserve Program (§ 199.25(a)) 

1. Provisions of Interim Final Rule. 

This paragraph describes the nature, 

purpose, statutory basis, scope, and 

major features of TRICARE Retired 

Reserve, a premium-based medical 

coverage program that was made 

available for purchase worldwide by 

certain members of the Retired Reserve, 

their family members and their 

surviving family members. TRICARE 

Retired Reserve is authorized by 10 

U.S.C. 1076e. 

The major features of the program 

include making coverage available for 

purchase by any Retired Reserve 

member who is qualified for non-regular 

retirement, but is not yet 60 years of age, 

unless that member is either enrolled in, 

or eligible to enroll in, a health benefit 

plan under Chapter 89 of Title 5, United 

States Code, as well as certain survivors 

of Retired Reserve members as specified 

below. The amount of the premium that 

qualified members and qualified 

survivors pay is prescribed by the 

Assistant Secretary of Defense for 

Health Affairs (ASD(HA)) and 

determined using an appropriate 

actuarial basis. There is one premium 

for member-only coverage and a second 

premium for member and family 

coverage. Additionally, TRICARE rules 

outlined in Part 199 of Title 32 of the 

CFR relating to the TRICARE Standard 

and Extra programs apply unless 

otherwise specified. 

Under TRICARE Retired Reserve, 

qualified members (or their qualified 

survivors) may purchase either the 

member-only type of coverage or the 

member and family type of coverage by 

submitting a completed request in the 

appropriate format along with an initial 

payment of the applicable premium at 

the time of enrollment. When their 

coverage becomes effective, TRICARE 

Retired Reserve beneficiaries receive the 

TRICARE Standard (and Extra) benefit. 

TRICARE Retired Reserve features the 

deductible and cost sharing provisions 

of the TRICARE Standard (and Extra) 

plan for retired members and 

dependents of retired members. Both 

the member and the member’s covered 

family members are provided access 

priority for care in military treatment 

facilities on the same basis as retired 

members and their family members who 

are not enrolled in TRICARE Prime. 

2. Analysis of Major Public 

Comments. Three commenters 

suggested alternative plans to include a 

Preferred Provider Organization (PPO) 

with group discount until age 60; 

eligibility for Reserve Retirees to use the 

Department of Veterans Affairs health 

care benefits and services; and a tier 

system that would allow a member to 

reduce premiums by choosing higher 

deductibles. Another commenter 

suggested a tier system with higher 

deductibles or different options for cost 

shares and deductibles. 

Three commenters requested the 

implementation/passing of the TRR 

benefit. One commenter inquired how 

TRR fits into ‘‘Health Care Reform’’ 

making health care affordable for every 

citizen. 

Response. In regards to the comments 

suggesting alternative plans, we 

observed that the specific provisions of 

the law governing TRR does not allow 

implementation of alternative plans as 

suggested. In fulfillment of law, TRR is 

a premium-based TRICARE health plan 

that features the cost sharing, 

deductible, and catastrophic cap 

provisions of TRICARE Standard (and 

Extra) as they pertain to retirees and 

their family members. 

TRICARE Extra is similar to a PPO. 

TRICARE Standard beneficiaries, 

including TRR members and their 

covered family members, are using 

TRICARE Extra when they receive care 

from a provider in the TRICARE 

Network. TRICARE Extra features cost 

shares that are five percent lower than 

TRICARE Standard cost shares. All 

Department of Veterans Affairs hospitals 

and clinics nationwide currently are in 

the TRICARE Network through active 

agreements with TRICARE contractors. 

Multiple premium tiers with various 

levels of deductibles would not be 

allowed by the statutory provisions that 

require TRR to be offered under one 


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