Qualified Zone Academy Bonds; Obligations of States and Political Subdivisions, 38802-38803 [E7-13663]

Download as PDF 38802 Federal Register / Vol. 72, No. 135 / Monday, July 16, 2007 / Proposed Rules (AMM) P.180 Avanti report 9066) or Temporary Revision 11 into the maintenance program (AMM P.180 Avanti II report 180– MAN–0200–01105). The temporary revisions require confirmation that the steering manifold and steering actuator are compliant with Piaggio Aero Industries S.p.A. Service Bulletin (Mandatory) N.: 80–0236 Rev. 1, dated May 15, 2007. Issued in Kansas City, Missouri, on July 9, 2007. Sandra J. Campbell, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E7–13713 Filed 7–13–07; 8:45 am] BILLING CODE 4910–13–P www.regulations.gov/ (IRS REG– 121475–03). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Zoran Stojanovic, (202) 622–3980; concerning submissions of comments and/or requests for a hearing, Richard A. Hurst, (202) 622–7180 (not toll-free numbers). FAA AD Differences DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION: Note 2: This AD differs from the MCAI and/or service information as follows: The MCAI requires the initial inspection action within 5 hours TIS. We consider 5 hours TIS an urgent safety of flight compliance time, and we do not consider this unsafe condition to be an urgent safety of flight condition. Because we do not consider this unsafe condition to be an urgent safety of flight condition, we are issuing this proposed action through the normal notice of proposed rulemaking (NPRM) AD process. The initial inspection time of 30 hours TIS or 30 days, whichever occurs first, is an adequate compliance time for this proposed AD action and meets the FAA requirements for an NPRM followed by a final rule. Internal Revenue Service Paperwork Reduction Act Other FAA AD Provisions (g) The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, Standards Staff, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Sarjapur Nagarajan, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329–4145; fax: (816) 329–4090. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector (PI) in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. (2) Airworthy Product: For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service. (3) Reporting Requirements: For any reporting requirement in this AD, under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et.seq.), the Office of Management and Budget (OMB) has approved the information collection requirements and has assigned OMB Control Number 2120–0056. ycherry on PRODPC74 with PROPOSALS Related Information (h) Refer to MCAI European Aviation Safety Agency (EASA) Emergency Airworthiness Directive EAD No: 2007– 0147–E, dated May 22, 2007; and Piaggio Aero Industries S.p.A. Service Bulletin (Mandatory) N.: 80–0236 Rev. 1, dated May 15, 2007, for related information. VerDate Aug<31>2005 15:15 Jul 13, 2007 Jkt 211001 26 CFR Part 1 [REG–121475–03] RIN 1545–BC61 Qualified Zone Academy Bonds; Obligations of States and Political Subdivisions Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations and withdrawal of proposed regulations. AGENCY: SUMMARY: In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations relating to the Federal income tax treatment of qualified zone academy bonds. This document contains proposed regulations that provide guidance to state and local governments that issue qualified zone academy bonds and to banks, insurance companies, and other taxpayers that hold those bonds on the program requirements for qualified zone academy bonds. The regulations implement the amendments to section 1397E of the Internal Revenue Code (Code) and provide guidance on the maximum term, permissible use of proceeds, and remedial actions for qualified zone academy bonds. The text of those regulations also serves as the text of these proposed regulations. This document also withdraws proposed regulations published March 26, 2004. DATES: Written or electronic comments and requests for a public hearing must be received by October 15, 2007. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–121475–03), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG–121475–03), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent electronically, via the Federal eRulemaking Portal at https:// PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 The collection of information contained in these proposed regulations has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1908. Responses to this collection of information are required to obtain or retain a benefit. This collection of information is required by the IRS to verify compliance with section 1397E. 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, SE:W:CAR:MP:T:T:SP; Washington, DC 20224. Comments on the collection of information should be received by September 14, 2007. Comments are specifically requested concerning: Whether the proposed collection of information is necessary for the proper performance of the functions of the Internal Revenue Service, including whether the information will have practical utility; The accuracy of the estimated burden associated with the proposed collection of information; 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 collection of information in this proposed regulation is in § 1.1397E– 1(h). This collection of information is required by the IRS to verify compliance with section 1397E. This information will be used to identify issuers of qualified zone academy bonds that have established a defeasance escrow as a remedial action taken because of failure E:\FR\FM\16JYP1.SGM 16JYP1 Federal Register / Vol. 72, No. 135 / Monday, July 16, 2007 / Proposed Rules to satisfy certain requirements of section 1397E. The collection of information is required to obtain or retain a benefit. The likely respondents are states or local governments that issue qualified zone academy bonds. Estimated total annual reporting burden: 3 hours. Estimated average annual burden hours per respondent: 30 minutes. Estimated number of respondents: 6. Estimated annual frequency of responses: varies. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget. Books and 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. ycherry on PRODPC74 with PROPOSALS Background and Explanation of Provisions 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 1397E. The temporary regulations amend the final regulations adopted September 26, 2000 (TD 8903) (65 FR 57732), and provide guidance to state and local governments that issue qualified zone academy bonds and to bank, insurance companies, and other taxpayers that hold those bonds. The temporary regulations provide guidance on the program requirements for qualified zone academy bonds. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations. Special Analyses It has been determined that this notice of proposed rule 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. 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. It is estimated that each year six issuers of QZABs will be required to report the establishment of a defeasance escrow, and the average estimated burden of VerDate Aug<31>2005 15:15 Jul 13, 2007 Jkt 211001 each such reporting is 30 minutes. In addition, the establishment of a defeasance escrow need only be reported once. 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 regulation has been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Comments and Requests for a 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 rules and how they may be made easier to understand. All comments will be available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register. Drafting Information The principal authors of these regulations are Timothy L. Jones and Zoran Stojanovic, Office of Division Counsel/Associate Chief Counsel, IRS (Tax Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in their development. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Withdrawal of Proposed Regulations Under the authority of 26 U.S.C. 7805, the notice of proposed rulemaking (REG–121475–03) published in the Federal Register on March 26, 2004 (69 FR 15747) is withdrawn. Proposed Amendments to the Regulations Accordingly, 26 CFR part 1 is proposed to be amended as follows: Par. 2. Section 1.1397E–1 is amended by revising paragraphs (a), (d), (h), (i), (j), (k), (l), and (m) to read as follows: § 1.1397E–1 bonds. Kevin M. Brown, Deputy Commissioner for Services and Enforcement. [FR Doc. E7–13663 Filed 7–13–07; 8:45 am] BILLING CODE 4830–01–P 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 1.1397E–1 also issued under 26 U.S.C. 1397E. * * * Frm 00007 Fmt 4702 Sfmt 4702 Qualified zone academy (a) [The text of the proposed amendment to § 1.1397E–1(a) is the same as the text of § 1.1397E–1T(a) published elsewhere in this issue of the Federal Register]. * * * * * (d) [The text of the proposed amendment to § 1.1397E–1(d) is the same as the text of § 1.1397E–1T(d) published elsewhere in this issue of the Federal Register]. * * * * * (h) [The text of the proposed amendment to § 1.1397E–1(h) is the same as the text of § 1.1397E–1T(h) published elsewhere in this issue of the Federal Register]. (i) [The text of the proposed amendment to § 1.1397E–1(i) is the same as the text of § 1.1397E–1T(i) published elsewhere in this issue of the Federal Register]. (j) [The text of the proposed amendment to § 1.1397E–1(j) is the same as the text of § 1.1397E–1T(j) published elsewhere in this issue of the Federal Register]. (k) [The text of the proposed amendment to § 1.1397E–1(k) is the same as the text of § 1.1397E–1T(k) published elsewhere in this issue of the Federal Register]. (l) [The text of the proposed amendment to § 1.1397E–1(l) is the same as the text of § 1.1397E–1T(l) published elsewhere in this issue of the Federal Register]. (m) [The text of the proposed amendment to § 1.1397E–1(m) is the same as the text of § 1.1397E–1T(m)(1) and (m)(2) published elsewhere in this issue of the Federal Register]. * * * * * PART 1—INCOME TAXES PO 00000 38803 E:\FR\FM\16JYP1.SGM 16JYP1

Agencies

[Federal Register Volume 72, Number 135 (Monday, July 16, 2007)]
[Proposed Rules]
[Pages 38802-38803]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13663]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-121475-03]
RIN 1545-BC61


Qualified Zone Academy Bonds; Obligations of States and Political 
Subdivisions

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and withdrawal of proposed regulations.

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

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the Federal income tax treatment of qualified zone academy bonds. This 
document contains proposed regulations that provide guidance to state 
and local governments that issue qualified zone academy bonds and to 
banks, insurance companies, and other taxpayers that hold those bonds 
on the program requirements for qualified zone academy bonds. The 
regulations implement the amendments to section 1397E of the Internal 
Revenue Code (Code) and provide guidance on the maximum term, 
permissible use of proceeds, and remedial actions for qualified zone 
academy bonds. The text of those regulations also serves as the text of 
these proposed regulations. This document also withdraws proposed 
regulations published March 26, 2004.

DATES: Written or electronic comments and requests for a public hearing 
must be received by October 15, 2007.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-121475-03), room 
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
121475-03), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC, or sent electronically, via the Federal 
eRulemaking Portal at https://www.regulations.gov/ (IRS REG-121475-03).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Zoran Stojanovic, (202) 622-3980; concerning submissions of comments 
and/or requests for a hearing, Richard A. Hurst, (202) 622-7180 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The collection of information contained in these proposed 
regulations has been reviewed and approved by the Office of Management 
and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 
3507) under control number 1545-1908. Responses to this collection of 
information are required to obtain or retain a benefit. This collection 
of information is required by the IRS to verify compliance with section 
1397E. 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, SE:W:CAR:MP:T:T:SP; Washington, DC 
20224. Comments on the collection of information should be received by 
September 14, 2007. Comments are specifically requested concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the Internal Revenue Service, 
including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information;
    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 collection of information in this proposed regulation is in 
Sec.  1.1397E-1(h). This collection of information is required by the 
IRS to verify compliance with section 1397E. This information will be 
used to identify issuers of qualified zone academy bonds that have 
established a defeasance escrow as a remedial action taken because of 
failure

[[Page 38803]]

to satisfy certain requirements of section 1397E. The collection of 
information is required to obtain or retain a benefit. The likely 
respondents are states or local governments that issue qualified zone 
academy bonds.
    Estimated total annual reporting burden: 3 hours.
    Estimated average annual burden hours per respondent: 30 minutes.
    Estimated number of respondents: 6.
    Estimated annual frequency of responses: varies.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books and 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 and Explanation of Provisions

    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 1397E. The temporary regulations amend the 
final regulations adopted September 26, 2000 (TD 8903) (65 FR 57732), 
and provide guidance to state and local governments that issue 
qualified zone academy bonds and to bank, insurance companies, and 
other taxpayers that hold those bonds. The temporary regulations 
provide guidance on the program requirements for qualified zone academy 
bonds. The text of those regulations also serves as the text of these 
proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations and these proposed regulations.

Special Analyses

    It has been determined that this notice of proposed rule 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. 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. It is estimated that each year six issuers of QZABs will be 
required to report the establishment of a defeasance escrow, and the 
average estimated burden of each such reporting is 30 minutes. In 
addition, the establishment of a defeasance escrow need only be 
reported once. 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 
regulation has been submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its impact on small 
business.

Comments and Requests for a 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 rules and how they may be made 
easier to understand. All comments will be available for public 
inspection and copying. A public hearing will be scheduled if requested 
in writing by any person that submits written comments. If a public 
hearing is scheduled, notice of the date, time, and place for the 
public hearing will be published in the Federal Register.

Drafting Information

    The principal authors of these regulations are Timothy L. Jones and 
Zoran Stojanovic, Office of Division Counsel/Associate Chief Counsel, 
IRS (Tax Exempt and Government Entities). However, other personnel from 
the IRS and the Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Withdrawal of Proposed Regulations

    Under the authority of 26 U.S.C. 7805, the notice of proposed 
rulemaking (REG-121475-03) published in the Federal Register on March 
26, 2004 (69 FR 15747) is withdrawn.

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 1.1397E-1 also issued under 26 U.S.C. 1397E. * * *

    Par. 2. Section 1.1397E-1 is amended by revising paragraphs (a), 
(d), (h), (i), (j), (k), (l), and (m) to read as follows:


Sec.  1.1397E-1  Qualified zone academy bonds.

    (a) [The text of the proposed amendment to Sec.  1.1397E-1(a) is 
the same as the text of Sec.  1.1397E-1T(a) published elsewhere in this 
issue of the Federal Register].
* * * * *
    (d) [The text of the proposed amendment to Sec.  1.1397E-1(d) is 
the same as the text of Sec.  1.1397E-1T(d) published elsewhere in this 
issue of the Federal Register].
* * * * *
    (h) [The text of the proposed amendment to Sec.  1.1397E-1(h) is 
the same as the text of Sec.  1.1397E-1T(h) published elsewhere in this 
issue of the Federal Register].
    (i) [The text of the proposed amendment to Sec.  1.1397E-1(i) is 
the same as the text of Sec.  1.1397E-1T(i) published elsewhere in this 
issue of the Federal Register].
    (j) [The text of the proposed amendment to Sec.  1.1397E-1(j) is 
the same as the text of Sec.  1.1397E-1T(j) published elsewhere in this 
issue of the Federal Register].
    (k) [The text of the proposed amendment to Sec.  1.1397E-1(k) is 
the same as the text of Sec.  1.1397E-1T(k) published elsewhere in this 
issue of the Federal Register].
    (l) [The text of the proposed amendment to Sec.  1.1397E-1(l) is 
the same as the text of Sec.  1.1397E-1T(l) published elsewhere in this 
issue of the Federal Register].
    (m) [The text of the proposed amendment to Sec.  1.1397E-1(m) is 
the same as the text of Sec.  1.1397E-1T(m)(1) and (m)(2) published 
elsewhere in this issue of the Federal Register].
* * * * *

Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-13663 Filed 7-13-07; 8:45 am]
BILLING CODE 4830-01-P
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