[Federal Register Volume 66, Number 247 (Wednesday, December 26, 2001)]
[Proposed Rules]
[Pages 66376-66377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31529]



[[Page 66376]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-119436-01]
RIN 1545-AY87


New Markets Tax Credit

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the new markets tax credit. The text of those regulations also serves 
as the text of these proposed regulations. This document also provides 
notice of a public hearing on these proposed regulations.

DATES: Written and electronic comments must be received by February 25, 
2002. Outlines of topics to be discussed at the public hearing 
scheduled for March 14, 2002, must be received by February 21, 2002.

ADDRESSES: Send submissions to: CC:ITA:RU (REG-119436-01), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand delivered Monday through Friday 
between the hours of 8 a.m. and 5 p.m. to: CC:ITA:RU (REG-119436-01), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC. Alternatively, taxpayers may send submissions 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or directly to the IRS Internet site at http://www.irs.gov/tax_regs/regslist.html. The public hearing will be held in 
the IRS Auditorium, Internal Revenue Building, 1111 Constitution 
Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Paul 
Handleman, (202) 622-3040; concerning submissions, the hearing, and/or 
to be placed on the building access list to attend the hearing, Treena 
Garret, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:   

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collection of information should be 
sent to the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S:O, 
Washington, DC 20224. Comments on the collection of information should 
be received by February 25, 2002.
    Comments are specifically requested concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the IRS, including whether the 
information will have practical utility; The accuracy of the estimated 
burden associated with the proposed collection of information (see 
below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collection of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    The requirement for the collection of information in this notice of 
proposed rulemaking is in Sec. 1.45D-1(g)(2). The information is 
required so that a taxpayer may claim a new markets tax credit on each 
credit allowance date during the 7-year credit period and report 
compliance with the requirements of section 45D and the regulations 
thereunder to the Secretary. The collection of information is 
mandatory. The likely respondents are businesses or other for-profit 
institutions, nonprofit institutions, and small businesses or 
organizations.
    Estimated total annual reporting burden: 378 hours.
    The estimated annual burden per respondent: 2.5 hours.
    Estimated number of respondents : 151.
    Estimated annual frequency of responses: once.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number assigned by the Office of 
Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 45D. The temporary regulations provide 
guidance for taxpayers claiming the new markets tax credit under 
section 45D. The text of those regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the amendments.

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 is hereby 
certified that the collection of information in these regulations will 
not have a significant economic impact on a substantial number of small 
entities. This certification is based upon the fact that any burden on 
taxpayers is minimal. Accordingly, 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 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 (a signed original 
and eight (8) copies) or electronic comments that are submitted timely 
to the IRS. The IRS and Treasury Department specifically request 
comments on the clarity of the proposed rule and how it may be made 
easier to understand. All comments will be available for public 
inspection and copying.
    A public hearing has been scheduled for March 14, 2002, at 10 a.m. 
in the IRS Auditorium, Internal Revenue Building, 1111 Constitution 
Avenue, NW., Washington, DC. Due to building security procedures, 
visitors must use the main building entrance on Constitution Avenue, 
NW. In addition, all visitors must present photo identification to 
enter the building. Because of access restrictions, visitors will not 
be admitted beyond the immediate entrance area more than 15

[[Page 66377]]

minutes before the hearing starts. For information about having your 
name placed on the building access list to attend the hearing, see the 
FOR FURTHER INFORMATION CONTACT section of this preamble.
    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 an outline of the topics to be discussed and the time to be 
devoted to each topic (signed original and eight (8) copies) by 
February 21, 2002.
    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 author of these regulations is Paul F. Handleman, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries), IRS. 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.

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 is amended by adding 
an entry in numerical order to read as follows:

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

    Section 1.45D-1 also issued under 26 U.S.C. 45D(i); * * *
    Par. 2. Section 1.45D-1 is added to read as follows:


Sec. 1.45D-1  New markets tax credit.

    [The text of proposed Sec. 1.45D-1 is the same as the text of 
Sec. 1.45D-1T published elsewhere in this issue of the Federal 
Register].

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 01-31529 Filed 12-21-01; 8:45 am]
BILLING CODE 4830-01-P