Capital Costs Incurred To Comply With EPA Sulfur Regulations, 36475-36476 [E8-14708]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 73, Number 125 (Friday, June 27, 2008)]
[Proposed Rules]
[Pages 36475-36476]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14708]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-143453-05]
RIN 1545-BE96


Capital Costs Incurred To Comply With EPA Sulfur Regulations

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 under 
section 179B of the Internal Revenue Code (Code) relating to the 
deduction for qualified capital costs paid or incurred by a small 
business refiner to comply with the highway diesel fuel sulfur control 
requirements of the Environmental Protection Agency (EPA). The 
temporary regulations implement changes to the law made by the American 
Jobs Creation Act of 2004, the Energy Policy Act of 2005, and the Tax 
Technical Corrections Act of 2007. The text of those temporary 
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 or electronic comments must be received by September 25, 
2008. Outlines of topics to be discussed at the public hearing 
scheduled for October 28, 2008, at 10 a.m. must be received by 
September 22, 2008.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-143453-05), 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-
143453-05), 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-143453-05). 
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 proposed regulations, 
Nicole Cimino, (202) 622-3110; concerning submissions of comments, the 
hearing, and/or to be placed on the building access list to attend the 
hearing, Oulwafunmilayo Taylor, (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, SE:W:CAR: MP:T:T:SP, 
Washington, DC 20224. Comments on the collection of information should 
be received by August 26, 2008. 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;
    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 service to provide information.
    The collection of information in this proposed regulation is in 
section 1.179B-1T(d) and section 1.179B-1T(e). This information 
collected under section 1.179B-1T(d) relates to the election under 
section 179B(a) by a small business refiner to deduct a portion of the 
qualified capital costs paid or incurred. The information collected 
under section 1.179B-1T(e) relates to the election under section 
179B(e) by a cooperative small business refiner to allocate all or some 
of its section 179B(a) deduction to its cooperative owners and to 
notify those cooperative owners of the allocated amount. This 
information will be used by the IRS for examination purposes. The 
collection of information is required to obtain a benefit. The likely 
respondents are small business refiners.
    Estimated total annual reporting burden: 50 hours.
    The estimated annual burden per respondent varies from .75 to 1.5 
hours,

[[Page 36476]]

depending on individual circumstances, with an estimated average of 1 
hour.
    Estimated number of respondents: 50.
    Estimated frequency of responses: Annually.
    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 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 26 CFR part 1 by adding regulations 
under section 179B of the Code. The temporary regulations contain rules 
relating to the deduction provided under section 179B for qualified 
costs paid or incurred by a small business refiner to comply with the 
highway diesel fuel sulfur control requirements of the EPA. The text of 
those temporary 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 rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It also has 
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. This certification is based upon the fact, as discussed 
earlier in this preamble, that the amount of time necessary to record 
and retain the required information is estimated to average one hour 
for those taxpayers electing to deduct qualified capital costs and 
electing to allocate all or some of that deduction to certain owners. 
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 Code, this notice of proposed rulemaking has 
been 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 the 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 has been scheduled for October 28, 2008, beginning 
at 10 a.m. in the IRS Auditorium, Internal Revenue Building, 1111 
Constitution Avenue, NW., Washington, DC. Due to building security 
procedures, all visitors must enter at the Constitution Avenue 
entrance. 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 30 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 written or 
electronic comments by September 25, 2008 and an outline of the topics 
to be discussed and the time to be devoted to each topic (signed 
original and eight (8) copies) by September 22, 2008. 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 Nicole R. Cimino, 
Office of Associate Chief Counsel (Passthroughs and Special 
Industries). 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.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

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

    Par. 2. Section 1.179B-1 is added to read as follows:


Sec.  1.179B-1  Deduction for capital costs incurred in complying with 
Environmental Protection Agency sulfur regulations.

    [The text of this proposed Sec.  1.179B-1 is the same as the text 
of Sec.  1.179B-1T published elsewhere in this issue of the Federal 
Register].

Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-14708 Filed 6-26-08; 8:45 am]
BILLING CODE 4830-01-P