Reduction in Taxable Income for Housing Hurricane Katrina Displaced Individuals, 66048-66051 [E9-29635]
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Federal Register / Vol. 74, No. 238 / Monday, December 14, 2009 / Rules and Regulations
SUMMARY: The Food and Drug
Administration (FDA) is amending the
animal drug regulations to reflect
approval of an original new animal drug
application (NADA) filed by Boehringer
Ingelheim Vetmedica, Inc. The NADA
provides for veterinary prescription use
of an injectable suspension of protamine
zinc recombinant human insulin for the
reduction of hyperglycemia and
hyperglycemia-associated clinical signs
in cats with diabetes mellitus.
DATES: This rule is effective December
14, 2009.
FOR FURTHER INFORMATION CONTACT:
Melanie R. Berson, Center for Veterinary
Medicine (HFV–110), Food and Drug
Administration, 7500 Standish Pl.,
Rockville, MD 20855, 240–276–8337, email: melanie.berson@fda.hhs.gov.
SUPPLEMENTARY INFORMATION:
Boehringer Ingelheim Vetmedica, Inc.,
2621 North Belt Highway, St. Joseph,
MO 64506–2002, filed NADA 141–297
that provides for the veterinary
prescription use of PROZINC
(protamine zinc recombinant human
insulin), an injectable suspension for
the reduction of hyperglycemia and
hyperglycemia-associated clinical signs
in cats with diabetes mellitus. The
NADA is approved as of October 28,
2009, and the regulations are amended
in 21 CFR 522.1160 to reflect the
approval.
In accordance with the freedom of
information provisions of 21 CFR part
20 and 21 CFR 514.11(e)(2)(ii), a
summary of safety and effectiveness
data and information submitted to
support approval of this application
may be seen in the Division of Dockets
Management (HFA–305), Food and Drug
Administration, 5630 Fishers Lane, rm.
1061, Rockville, MD 20852, between 9
a.m. and 4 p.m., Monday through
Friday.
The agency has determined under 21
CFR 25.33 that this action is of a type
that does not individually or
cumulatively have a significant effect on
the human environment. Therefore,
neither an environmental assessment
nor an environmental impact statement
is required.
This rule does not meet the definition
of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because
it is a rule of ‘‘particular applicability.’’
Therefore, it is not subject to the
congressional review requirements in 5
U.S.C. 801–808.
List of Subjects in 21 CFR Part 522
Animal drugs.
■ Therefore, under the Federal Food,
Drug, and Cosmetic Act and under
authority delegated to the Commissioner
of Food and Drugs and redelegated to
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the Center for Veterinary Medicine, 21
CFR part 522 is amended as follows:
DEPARTMENT OF THE TREASURY
Internal Revenue Service
PART 522—IMPLANTATION OR
INJECTABLE DOSAGE FORM NEW
ANIMAL DRUGS
1. The authority citation for 21 CFR
part 522 continues to read as follows:
■
Authority: 21 U.S.C. 360b.
2. In § 522.1160, revise paragraphs (a),
(b), and (c)(2)(i) to read as follows:
■
§ 522.1160
Insulin.
(a) Specifications—(1) Each milliliter
(mL) of porcine insulin zinc suspension
contains 40 international units (IU) of
insulin.
(2) Each mL of protamine zinc
recombinant human insulin suspension
contains 40 IU of insulin.
(b) Sponsors. See sponsors in
§ 510.600 of this chapter for use as in
paragraph (c) of this section.
(1) No. 000061 for use of product
described in paragraph (a)(1) of this
section as in paragraphs (c)(1),
(c)(2)(i)(A), (c)(2)(ii), and (c)(2)(iii) of
this section.
(2) No. 000010 for use of product
described in paragraph (a)(2) of this
section as in paragraphs (c)(2)(i)(B),
(c)(2)(ii), and (c)(2)(iii) of this section.
(c) * * *
(2) Cats—(i) Amount—(A) Porcine
insulin zinc. Administer an initial dose
of 1 to 2 IU by subcutaneous injection.
Injections should be given twice daily at
approximately 12-hour intervals. For
cats fed twice daily, the injections
should be concurrent with or right after
a meal. For cats fed ad libitum, no
change in feeding is needed. Adjust the
dose at appropriate intervals based on
clinical signs, urinalysis results, and
glucose curve values until adequate
glycemic control has been attained.
(B) Protamine zinc recombinant
human insulin. Administer an initial
dose of 0.1 to 0.3 IU/pound of body
weight (0.2 to 0.7 IU/kilogram) every 12
hours. The dose should be given
concurrently with or right after a meal.
Re-evaluate the cat at appropriate
intervals and adjust the dose based on
both clinical signs and glucose nadirs
until adequate glycemic control has
been attained.
*
*
*
*
*
Dated: December 8, 2009.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
[FR Doc. E9–29583 Filed 12–11–09; 8:45 am]
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26 CFR Part 1
[TD 9474]
RIN 1545–BF14
Reduction in Taxable Income for
Housing Hurricane Katrina Displaced
Individuals
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
SUMMARY: This document contains final
regulations relating to the reduction in
taxable income under section 302 of the
Katrina Emergency Tax Relief Act of
2005. The final regulations also reflect
legislation under section 702 of the
Heartland Disaster Tax Relief Act of
2008. The final regulations affect
taxpayers who provide housing in their
principal residences to individuals
displaced by certain major disasters.
Effective Date: These regulations are
effective on December 14, 2009.
Applicability Date: For date of
applicability, see § 1.9300–1(h).
FOR FURTHER INFORMATION CONTACT:
Shareen S. Pflanz, 202–622–4920 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provisions
This document contains final
regulations that replace the temporary
regulations in 26 CFR Part 1 relating to
the reduction in taxable income for
housing provided to displaced
individuals under section 302 of the
Katrina Emergency Tax Relief Act of
2005 (Pub. L. 109–73, 119 Stat. 2016)
(KETRA). This document also applies
these rules to individuals displaced in
a Midwestern disaster area, as defined
in section 702 of the Heartland Disaster
Tax Relief Act of 2008 (Title VII of
Division C of Pub. L. 110–343, 122 Stat.
3912) (HDTRA).
On December 12, 2006, temporary
regulations (TD 9301) were published in
the Federal Register (71 FR 74467). A
notice of proposed rulemaking (REG–
152043–05) cross-referencing the
temporary regulations was also
published in the Federal Register (71
FR 74482). No public hearing was
requested or held. No written comments
responding to the notice of proposed
rulemaking were received. The
proposed regulations are adopted as
amended by this Treasury decision to
implement section 702 of HDTRA.
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Federal Register / Vol. 74, No. 238 / Monday, December 14, 2009 / Rules and Regulations
Section 702 of HDTRA, enacted on
October 3, 2008, applies section 302 of
KETRA to the Midwestern disaster area.
The Midwestern disaster area is the area
for which the President declared (after
May 19, 2008, and before August 1,
2008) a major disaster under the Robert
T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5170) (Stafford Act). The disaster
occurred by reason of severe storms,
tornados, or flooding in the states of
Arkansas, Illinois, Indiana, Iowa,
Kansas, Michigan, Minnesota, Missouri,
Nebraska, and Wisconsin. The
applicable disaster date for each state in
the Midwestern disaster area is the date
of the severe storm, tornado, or flooding
giving rise to the Presidential
declaration for that state. See Federal
Register notices for each state at
https://www.FEMA.gov. The reduction in
taxable income for providing housing to
a displaced individual in a Midwestern
disaster area applies to taxable years
beginning in 2008 or 2009.
Accordingly, the final regulations
expand the scope of the temporary
regulations to include taxpayers who
provide housing in their principal
residences to Midwestern disaster
displaced individuals. The final
regulations expand the definitions
under § 1.9300–1T(e) of the temporary
regulations relating to Hurricane Katrina
to include the Midwestern disaster area.
The final regulations also clarify that
the limitations on the reduction in
taxable income apply separately to the
Hurricane Katrina disaster area and the
Midwestern disaster area. Thus, for
example, a taxpayer may reduce taxable
income by up to $2,000 for providing
housing to Midwestern disaster
displaced individuals even though the
taxpayer reduced taxable income for
providing housing to one or more
Hurricane Katrina displaced
individuals.
The temporary regulations provided
that the maximum dollar limitation for
a married individual who files a
separate income tax return is $1,000.
The final regulations provide that the
maximum dollar limitation is $2,000 for
married taxpayers filing jointly or
separately. Married taxpayers filing
separate income tax returns may
allocate the $2,000 between the returns.
The final regulations authorize the
Commissioner to apply these rules in
additional guidance of general
applicability, see § 601.601(d)(2) of the
Internal Revenue Practice Regulations, if
Congress extends relief under section
302 of KETRA to other disaster areas in
the future.
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Effective/Applicability Date
These regulations apply to taxable
years ending after December 11, 2006.
Taxpayers who, after filing their tax
returns for 2006 or 2008 as married
filing separately, want to apply the rule
allowing them to allocate the $2,000
maximum limitation between them,
may do so by filing amended returns if
the period of limitations on credit or
refund under section 6511 has not
expired.
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
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 and, because the
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking
that preceded these final regulations
was submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
Drafting Information
The principal author of these
regulations is Shareen S. Pflanz of the
Office of the Associate Chief Counsel
(Income Tax and Accounting). 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.
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 is amended by removing the
entry for § 1.9300–1T to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.9300–1 is added to
read as follows:
■
§ 1.9300–1 Reduction in taxable income
for housing displaced individuals.
(a) In general. For a taxable year
beginning in the applicable taxable year
(as defined in paragraph (f)(1) of this
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section), a taxpayer who is a natural
person may reduce taxable income by
$500 for each displaced individual (as
defined in paragraph (f)(2) of this
section) to whom the taxpayer provides
housing free of charge in, or on the site
of, the taxpayer’s principal residence for
a period of at least 60 consecutive days.
A taxpayer may claim the reduction in
taxable income for any applicable
taxable year in which a consecutive 60day period ends. A taxpayer may not
claim the reduction in taxable income
unless the taxpayer includes the
taxpayer identification number of the
displaced individual on the taxpayer’s
income tax return.
(b) Provision of housing—(1) Principal
residence. For purposes of this section,
the term principal residence has the
same meaning as in section 121 and the
associated regulations. See § 1.121–
1(b)(1) and (b)(2).
(2) Legal interest required. A taxpayer
is treated as providing housing for
purposes of this section only if the
taxpayer is an owner or lessee
(including a co-owner or co-lessee) of
the principal residence.
(3) Compensation for providing
housing. No reduction in taxable
income is allowed under this section to
a taxpayer who receives rent or any
reimbursement or compensation
(whether in cash, services, or property)
from any source for providing housing
to the displaced individual. For this
purpose, lodging, utilities, and other
similar items are treated as housing, but
telephone calls, food, clothing,
transportation, and other similar items
are not treated as housing.
(c) Limitations—(1) Dollar
limitation—(i) In general. The reduction
in taxable income under paragraph (a) of
this section may not exceed the
maximum dollar limitation, and must be
reduced by the total amount of all
reductions under this section for all
prior taxable years (except as provided
in paragraph (c)(5) of this section). The
maximum dollar limitation is—
(A) $2,000 in the case of an unmarried
individual; or
(B) $2,000 in the case of a husband
and wife, whether the husband and wife
file a joint income tax return or separate
income tax returns; married taxpayers
filing separate income tax returns may
allocate this amount in $500 increments
between their respective returns,
provided that each spouse is otherwise
eligible to claim that reduction in
taxable income.
(ii) Married individuals with separate
principal residences. The limitation in
paragraph (c)(1)(i)(B) of this section
applies whether or not the married
individuals occupy the same principal
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residence. A person is treated as
married for purposes of this section if
the individual is treated as married
under section 7703.
(2) Spouse or dependent of the
taxpayer. No reduction of taxable
income is allowed for a displaced
individual who is the spouse or a
dependent of the taxpayer.
(3) One reduction per displaced
individual. Except as provided in
paragraph (c)(5) of this section, a
taxpayer may not reduce taxable income
under paragraph (a) of this section for a
displaced individual for whom the
taxpayer or any taxpayer residing in the
same principal residence has reduced
taxable income under this section for
any prior taxable year.
(4) Taxpayers occupying the same
principal residence. Except as provided
in paragraph (c)(5) of this section, for all
taxable years, only one taxpayer
occupying the same principal residence
may reduce taxable income for a
particular displaced individual.
(5) Limitations applied separately to
each disaster. The limitations of this
paragraph (c) apply separately to each
disaster area. Thus, a taxpayer may
reduce taxable income by $2,000 for
providing housing to Midwestern
disaster displaced individuals even
though the taxpayer reduced taxable
income for providing housing to one or
more Hurricane Katrina displaced
individuals. For this purpose, all areas
within the Midwestern disaster area are
treated as one disaster area.
(d) Substantiation. A taxpayer
claiming a reduction of taxable income
under this section must maintain
records sufficient to show entitlement to
the reduction as provided in forms,
instructions, publications or other
guidance published by the IRS.
(e) The Commissioner may apply this
section in additional guidance of
general applicability, see § 601.601(d)(2)
of this chapter, to other disaster areas to
which Congress extends relief under
section 302 of the Katrina Emergency
Tax Relief Act of 2005.
(f) In general. The following
definitions apply for all purposes of this
section.
(1) Applicable taxable year. The term
applicable taxable year means—
(i) A taxable year beginning in 2005
or 2006, in the case of housing provided
to a Hurricane Katrina displaced
individual (as defined in paragraph
(f)(2)(ii) of this section); and
(ii) A taxable year beginning in 2008
or 2009, in the case of housing provided
to a Midwestern disaster displaced
individual (as defined in paragraph
(f)(2)(iii) of this section).
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(2) Displaced individual—(i) Scope.
The term displaced individual means a
Hurricane Katrina displaced individual
as defined in paragraph (f)(2)(ii) of this
section and a Midwestern disaster
displaced individual as defined in
paragraph (f)(2)(iii) of this section.
(ii) Hurricane Katrina displaced
individual. The term Hurricane Katrina
displaced individual means any natural
person (other than the spouse or a
dependent of the taxpayer) if the
following requirements are met—
(A) The person’s principal place of
abode on August 28, 2005, was in the
Hurricane Katrina disaster area (as
defined in paragraph (f)(4)(ii) of this
section);
(B) The person was displaced from
that abode; and
(C) If the abode was located outside
the Hurricane Katrina core disaster area
(as defined in paragraph (f)(5)(ii) of this
section)—
(1) The abode was damaged by
Hurricane Katrina; or
(2) The person was evacuated from
that abode by reason of Hurricane
Katrina.
(iii) Midwestern disaster displaced
individual. The term Midwestern
disaster displaced individual means any
natural person (other than the spouse or
a dependent of the taxpayer) if the
following requirements are met—
(A) The person’s principal place of
abode on the Midwestern disaster date
(as defined in paragraph (f)(3) of this
section), was in any Midwestern
disaster area (as defined in paragraph
(f)(4)(iii) of this section);
(B) The person was displaced from
that abode; and
(C) If the abode was located outside
the Midwestern core disaster area (as
defined in paragraph (f)(5)(iii) of this
section)—
(1) The abode was damaged by any
Midwestern disaster; or
(2) The person was evacuated from
that abode by reason of any Midwestern
disaster.
(3) Midwestern disaster date. The
term Midwestern disaster date means—
(i) In Arkansas, May 2 through May
12, 2008;
(ii) In Illinois, June 1 through July 22,
2008;
(iii) In Indiana, May 30 through June
27, 2008;
(iv) In Iowa, May 25 through August
13, 2008;
(v) In Kansas, May 22 through June
16, 2008;
(vi) In Michigan, June 6 through June
13, 2008;
(vii) In Minnesota, June 6 through
June 12, 2008;
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(viii) In Missouri, May 10 through
May 11, 2008, and June 1 through
August 13, 2008;
(ix) In Nebraska, April 23 through
April 26, 2008, May 22 through June 24,
2008, and June 27, 2008; or
(x) In Wisconsin, June 5 through July
25, 2008.
(4) Disaster area—(i) Scope. The term
disaster area means the Hurricane
Katrina disaster area as defined in
paragraph (f)(4)(ii) of this section and
the Midwestern disaster area as defined
in paragraph (f)(4)(iii) of this section.
(ii) Hurricane Katrina disaster area.
The term Hurricane Katrina disaster
area means the states of Alabama,
Florida, Louisiana, and Mississippi.
(iii) Midwestern disaster area. The
term Midwestern disaster area means an
area for which the President declared a
major disaster on or after May 20, 2008,
and before August 1, 2008, under
section 401 of the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170)
(Stafford Act) by reason of severe
storms, tornados, or flooding occurring
in any of the states of Arkansas, Illinois,
Indiana, Iowa, Kansas, Michigan,
Minnesota, Missouri, Nebraska, and
Wisconsin.
(5) Core disaster area—(i) Scope. The
term core disaster area means the
Hurricane Katrina core disaster area as
defined in paragraph (f)(5)(ii) of this
section and the Midwestern core
disaster area as defined in paragraph
(f)(5)(iii) of this section.
(ii) Hurricane Katrina core disaster
area. The term Hurricane Katrina core
disaster area means the portion of the
Hurricane Katrina disaster area
designated by the President to warrant
individual or individual and public
assistance from the federal government
under the Stafford Act.
(iii) Midwestern core disaster area.
The term Midwestern core disaster area
means the portion of the Midwestern
disaster area designated by the President
to warrant individual or individual and
public assistance from the federal
government under the Stafford Act for
damages attributable to the severe
storms, tornados, or flooding in the
Midwestern disaster area.
(g) Examples. The provisions of this
section are illustrated by the following
examples. In each example, a taxpayer
provides housing within the meaning of
paragraph (b) of this section in, or on
the site of, the taxpayer’s principal
residence for a period of at least 60
consecutive days (the 60th day being in
the applicable taxable year) for each
displaced individual, none of whom is
a spouse or dependent of the taxpayer.
The examples are as follows:
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Example 1. Taxpayer A provides housing
to N, a Hurricane Katrina displaced
individual, from September 1, 2005, until
March 10, 2006. Under paragraphs (a) and
(c)(3) of this section, A may reduce A’s
taxable income by $500 on A’s income tax
return for calendar year 2005 or 2006 (but not
both) for providing housing to N.
Example 2. The facts are the same as in
Example 1, except that A and A’s unmarried
roommate B are co-lessees of their principal
residence. Both A and B provide housing to
N. Under paragraphs (a) and (c)(4) of this
section, either A or B, but not both, may
reduce taxable income by $500 for 2005 or
2006 for providing housing to N. If A or B
reduces taxable income for 2005 for
providing housing to N, neither A nor B may
reduce taxable income for 2006 for providing
housing to N.
Example 3. The facts are the same as in
Example 2, except that in 2009 A and B
provide housing to N, who in 2009 is a
Midwestern disaster displaced individual.
Under paragraph (c)(5) of this section, the
limitation of paragraph (c)(4) of this section
applies separately to each disaster. Therefore,
either A or B may reduce taxable income by
$500 for 2009 for providing housing to N.
Example 4. During 2008, unmarried
roommates and co-lessees C and D provide
housing to eight Midwestern disaster
displaced individuals. Under paragraphs (a)
and (c)(1)(i)(A) of this section, C may reduce
taxable income by $2,000 on C’s 2008 income
tax return for providing housing to any four
of these displaced individuals and D may
reduce taxable income by $2,000 on D’s 2008
income tax return for providing housing to
the other four displaced individuals.
Example 5. (i) In 2008, a married couple,
H and W, provide housing to a Midwestern
disaster displaced individual, O. H and W
file their 2008 income tax return as married
filing jointly. Under paragraphs (a) and (c)(4)
of this section, H and W may reduce taxable
income by $500 on their 2008 income tax
return for providing housing to O.
(ii) In 2009, H and W provide housing to
O and to another Midwestern disaster
displaced individual, P. H and W file their
2009 income tax returns as married filing
separately. Because H and W reduced their
2008 taxable income for providing housing to
O, under paragraph (c)(3) of this section,
neither H nor W may reduce taxable income
on their 2009 income tax returns for
providing housing to O. Under paragraphs (a)
and (c)(4) of this section, either H or W but
not both, may reduce taxable income by $500
on his or her 2009 income tax return for
providing housing to P.
Example 6. The facts are the same as in
Example 5, except that in 2009 H and W
provide housing to five Midwestern disaster
displaced individuals in addition to O. H and
W together may reduce taxable income on
their 2009 income tax returns by a total of
$2,000 for the Midwestern disaster displaced
individuals (other than O). Under paragraph
(c)(1)(i)(B) of this section, H and W may
allocate the $2,000 in increments of $500
between their separate returns. For example,
either one may reduce taxable income by
$500 and the other may reduce taxable
income by $1,500, or H and W each may
reduce taxable income by $1,000.
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(h) Effective/applicability date. This
section applies for taxable years ending
after December 11, 2006.
Terrorism Risk Insurance Program, (202)
622–6770 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
§ 1.9300–1T
I. Background
The Terrorism Risk Insurance Act of
2002 (Pub. L. 107–297, 116 Stat. 2322)
was enacted on November 26, 2002. The
Act was effective immediately. The
Act’s purposes are to address market
disruptions, ensure the continued
widespread availability and
affordability of commercial property
and casualty insurance for terrorism
risk, and allow for a transition period
for the private markets to stabilize and
build capacity while preserving state
insurance regulation and consumer
protections.
Title I of the Act establishes a
temporary Federal program of shared
public and private compensation for
insured commercial property and
casualty losses resulting from an act of
terrorism. The Act authorizes Treasury
to administer and implement the
Terrorism Risk Insurance Program,
including the issuance of regulations
and procedures. The Program provides
a Federal backstop for insured losses
from an act of terrorism. Section 103(e)
of the Act directs and gives Treasury
authority to recoup Federal payments
made under the Program through
policyholder surcharges.
The Program was originally set to
expire on December 31, 2005. On
December 22, 2005, the Terrorism Risk
Insurance Extension Act of 2005 (Pub.
L. 109–144, 119 Stat. 2660) was enacted,
which extended the Program through
December 31, 2007. On December 26,
2007, the Terrorism Risk Insurance
Program Reauthorization Act of 2007
(Pub. L. 110–160, 121 Stat. 1839) was
enacted, which extends the Program
through December 31, 2014.
The Reauthorization Act, among other
changes, revised the recoupment
provisions of the Act. These changes are
explained below in the context of
discussion of other provisions.
■
[Removed]
Par. 3. Section 1.9300–1T is removed.
Approved: December 8, 2009.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Michael F. Mundaca,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. E9–29635 Filed 12–11–09; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
31 CFR Part 50
RIN 1505–AB10
Terrorism Risk Insurance Program;
Recoupment Provisions
Departmental Offices, Treasury.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Department of the
Treasury (Treasury) is issuing this final
rule as part of its implementation of
Title I of the Terrorism Risk Insurance
Act of 2002 (‘‘TRIA’’ or ‘‘the Act’’), as
amended by the Terrorism Risk
Insurance Extension Act of 2005
(‘‘Extension Act’’) and the Terrorism
Risk Insurance Program Reauthorization
Act of 2007 (‘‘Reauthorization Act’’).
The Act established a temporary
Terrorism Risk Insurance Program
(‘‘TRIP’’ or ‘‘Program’’) under which the
Federal Government would share the
risk of insured losses from certified acts
of terrorism with commercial property
and casualty insurers. The
Reauthorization Act has now extended
the Program until December 31, 2014.
This rule was published in proposed
form on September 17, 2008, for public
comment. The final rule contains minor
clarifications in response to comments.
The rule incorporates and implements
statutory requirements in section 103(e)
of the Act, as amended by the
Reauthorization Act, for the recoupment
of the Federal share of compensation for
insured losses. In particular, the rule
describes how Treasury will determine
the amounts to be recouped and
establishes procedures insurers are to
use for collecting Federal Terrorism
Policy Surcharges and remitting them to
Treasury. The rule generally builds
upon previous rules issued by Treasury.
DATES: This rule is effective January 13,
2010.
FOR FURTHER INFORMATION CONTACT:
Howard Leikin, Deputy Director,
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
II. Previous Rulemaking
To assist insurers, policyholders, and
other interested parties in complying
with immediately applicable
requirements of the Act, Treasury has
issued interim guidance to be relied
upon by insurers until superseded by
regulations. Rules establishing general
provisions implementing the Program,
including key definitions, and
requirements for policy disclosures and
mandatory availability, can be found in
Subparts A, B, and C of 31 CFR Part 50.
Treasury’s rules applying provisions of
the Act to State residual market
insurance entities and State workers’
E:\FR\FM\14DER1.SGM
14DER1
]]>Agencies
[Federal Register Volume 74, Number 238 (Monday, December 14, 2009)]
[Rules and Regulations]
[Pages 66048-66051]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29635]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9474]
RIN 1545-BF14
Reduction in Taxable Income for Housing Hurricane Katrina
Displaced Individuals
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to the
reduction in taxable income under section 302 of the Katrina Emergency
Tax Relief Act of 2005. The final regulations also reflect legislation
under section 702 of the Heartland Disaster Tax Relief Act of 2008. The
final regulations affect taxpayers who provide housing in their
principal residences to individuals displaced by certain major
disasters.
Effective Date: These regulations are effective on December 14,
2009.
Applicability Date: For date of applicability, see Sec. 1.9300-
1(h).
FOR FURTHER INFORMATION CONTACT: Shareen S. Pflanz, 202-622-4920 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
This document contains final regulations that replace the temporary
regulations in 26 CFR Part 1 relating to the reduction in taxable
income for housing provided to displaced individuals under section 302
of the Katrina Emergency Tax Relief Act of 2005 (Pub. L. 109-73, 119
Stat. 2016) (KETRA). This document also applies these rules to
individuals displaced in a Midwestern disaster area, as defined in
section 702 of the Heartland Disaster Tax Relief Act of 2008 (Title VII
of Division C of Pub. L. 110-343, 122 Stat. 3912) (HDTRA).
On December 12, 2006, temporary regulations (TD 9301) were
published in the Federal Register (71 FR 74467). A notice of proposed
rulemaking (REG-152043-05) cross-referencing the temporary regulations
was also published in the Federal Register (71 FR 74482). No public
hearing was requested or held. No written comments responding to the
notice of proposed rulemaking were received. The proposed regulations
are adopted as amended by this Treasury decision to implement section
702 of HDTRA.
[[Page 66049]]
Section 702 of HDTRA, enacted on October 3, 2008, applies section
302 of KETRA to the Midwestern disaster area. The Midwestern disaster
area is the area for which the President declared (after May 19, 2008,
and before August 1, 2008) a major disaster under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170)
(Stafford Act). The disaster occurred by reason of severe storms,
tornados, or flooding in the states of Arkansas, Illinois, Indiana,
Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin.
The applicable disaster date for each state in the Midwestern disaster
area is the date of the severe storm, tornado, or flooding giving rise
to the Presidential declaration for that state. See Federal Register
notices for each state at https://www.FEMA.gov. The reduction in taxable
income for providing housing to a displaced individual in a Midwestern
disaster area applies to taxable years beginning in 2008 or 2009.
Accordingly, the final regulations expand the scope of the
temporary regulations to include taxpayers who provide housing in their
principal residences to Midwestern disaster displaced individuals. The
final regulations expand the definitions under Sec. 1.9300-1T(e) of
the temporary regulations relating to Hurricane Katrina to include the
Midwestern disaster area.
The final regulations also clarify that the limitations on the
reduction in taxable income apply separately to the Hurricane Katrina
disaster area and the Midwestern disaster area. Thus, for example, a
taxpayer may reduce taxable income by up to $2,000 for providing
housing to Midwestern disaster displaced individuals even though the
taxpayer reduced taxable income for providing housing to one or more
Hurricane Katrina displaced individuals.
The temporary regulations provided that the maximum dollar
limitation for a married individual who files a separate income tax
return is $1,000. The final regulations provide that the maximum dollar
limitation is $2,000 for married taxpayers filing jointly or
separately. Married taxpayers filing separate income tax returns may
allocate the $2,000 between the returns.
The final regulations authorize the Commissioner to apply these
rules in additional guidance of general applicability, see Sec.
601.601(d)(2) of the Internal Revenue Practice Regulations, if Congress
extends relief under section 302 of KETRA to other disaster areas in
the future.
Effective/Applicability Date
These regulations apply to taxable years ending after December 11,
2006. Taxpayers who, after filing their tax returns for 2006 or 2008 as
married filing separately, want to apply the rule allowing them to
allocate the $2,000 maximum limitation between them, may do so by
filing amended returns if the period of limitations on credit or refund
under section 6511 has not expired.
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 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 and, because the
regulations do not impose a collection of information on small
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking that preceded these final regulations was
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small business.
Drafting Information
The principal author of these regulations is Shareen S. Pflanz of
the Office of the Associate Chief Counsel (Income Tax and Accounting).
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.
Adoption of Amendments to the Regulations
0
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 is amended by removing
the entry for Sec. 1.9300-1T to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.9300-1 is added to read as follows:
Sec. 1.9300-1 Reduction in taxable income for housing displaced
individuals.
(a) In general. For a taxable year beginning in the applicable
taxable year (as defined in paragraph (f)(1) of this section), a
taxpayer who is a natural person may reduce taxable income by $500 for
each displaced individual (as defined in paragraph (f)(2) of this
section) to whom the taxpayer provides housing free of charge in, or on
the site of, the taxpayer's principal residence for a period of at
least 60 consecutive days. A taxpayer may claim the reduction in
taxable income for any applicable taxable year in which a consecutive
60-day period ends. A taxpayer may not claim the reduction in taxable
income unless the taxpayer includes the taxpayer identification number
of the displaced individual on the taxpayer's income tax return.
(b) Provision of housing--(1) Principal residence. For purposes of
this section, the term principal residence has the same meaning as in
section 121 and the associated regulations. See Sec. 1.121-1(b)(1) and
(b)(2).
(2) Legal interest required. A taxpayer is treated as providing
housing for purposes of this section only if the taxpayer is an owner
or lessee (including a co-owner or co-lessee) of the principal
residence.
(3) Compensation for providing housing. No reduction in taxable
income is allowed under this section to a taxpayer who receives rent or
any reimbursement or compensation (whether in cash, services, or
property) from any source for providing housing to the displaced
individual. For this purpose, lodging, utilities, and other similar
items are treated as housing, but telephone calls, food, clothing,
transportation, and other similar items are not treated as housing.
(c) Limitations--(1) Dollar limitation--(i) In general. The
reduction in taxable income under paragraph (a) of this section may not
exceed the maximum dollar limitation, and must be reduced by the total
amount of all reductions under this section for all prior taxable years
(except as provided in paragraph (c)(5) of this section). The maximum
dollar limitation is--
(A) $2,000 in the case of an unmarried individual; or
(B) $2,000 in the case of a husband and wife, whether the husband
and wife file a joint income tax return or separate income tax returns;
married taxpayers filing separate income tax returns may allocate this
amount in $500 increments between their respective returns, provided
that each spouse is otherwise eligible to claim that reduction in
taxable income.
(ii) Married individuals with separate principal residences. The
limitation in paragraph (c)(1)(i)(B) of this section applies whether or
not the married individuals occupy the same principal
[[Page 66050]]
residence. A person is treated as married for purposes of this section
if the individual is treated as married under section 7703.
(2) Spouse or dependent of the taxpayer. No reduction of taxable
income is allowed for a displaced individual who is the spouse or a
dependent of the taxpayer.
(3) One reduction per displaced individual. Except as provided in
paragraph (c)(5) of this section, a taxpayer may not reduce taxable
income under paragraph (a) of this section for a displaced individual
for whom the taxpayer or any taxpayer residing in the same principal
residence has reduced taxable income under this section for any prior
taxable year.
(4) Taxpayers occupying the same principal residence. Except as
provided in paragraph (c)(5) of this section, for all taxable years,
only one taxpayer occupying the same principal residence may reduce
taxable income for a particular displaced individual.
(5) Limitations applied separately to each disaster. The
limitations of this paragraph (c) apply separately to each disaster
area. Thus, a taxpayer may reduce taxable income by $2,000 for
providing housing to Midwestern disaster displaced individuals even
though the taxpayer reduced taxable income for providing housing to one
or more Hurricane Katrina displaced individuals. For this purpose, all
areas within the Midwestern disaster area are treated as one disaster
area.
(d) Substantiation. A taxpayer claiming a reduction of taxable
income under this section must maintain records sufficient to show
entitlement to the reduction as provided in forms, instructions,
publications or other guidance published by the IRS.
(e) The Commissioner may apply this section in additional guidance
of general applicability, see Sec. 601.601(d)(2) of this chapter, to
other disaster areas to which Congress extends relief under section 302
of the Katrina Emergency Tax Relief Act of 2005.
(f) In general. The following definitions apply for all purposes of
this section.
(1) Applicable taxable year. The term applicable taxable year
means--
(i) A taxable year beginning in 2005 or 2006, in the case of
housing provided to a Hurricane Katrina displaced individual (as
defined in paragraph (f)(2)(ii) of this section); and
(ii) A taxable year beginning in 2008 or 2009, in the case of
housing provided to a Midwestern disaster displaced individual (as
defined in paragraph (f)(2)(iii) of this section).
(2) Displaced individual--(i) Scope. The term displaced individual
means a Hurricane Katrina displaced individual as defined in paragraph
(f)(2)(ii) of this section and a Midwestern disaster displaced
individual as defined in paragraph (f)(2)(iii) of this section.
(ii) Hurricane Katrina displaced individual. The term Hurricane
Katrina displaced individual means any natural person (other than the
spouse or a dependent of the taxpayer) if the following requirements
are met--
(A) The person's principal place of abode on August 28, 2005, was
in the Hurricane Katrina disaster area (as defined in paragraph
(f)(4)(ii) of this section);
(B) The person was displaced from that abode; and
(C) If the abode was located outside the Hurricane Katrina core
disaster area (as defined in paragraph (f)(5)(ii) of this section)--
(1) The abode was damaged by Hurricane Katrina; or
(2) The person was evacuated from that abode by reason of Hurricane
Katrina.
(iii) Midwestern disaster displaced individual. The term Midwestern
disaster displaced individual means any natural person (other than the
spouse or a dependent of the taxpayer) if the following requirements
are met--
(A) The person's principal place of abode on the Midwestern
disaster date (as defined in paragraph (f)(3) of this section), was in
any Midwestern disaster area (as defined in paragraph (f)(4)(iii) of
this section);
(B) The person was displaced from that abode; and
(C) If the abode was located outside the Midwestern core disaster
area (as defined in paragraph (f)(5)(iii) of this section)--
(1) The abode was damaged by any Midwestern disaster; or
(2) The person was evacuated from that abode by reason of any
Midwestern disaster.
(3) Midwestern disaster date. The term Midwestern disaster date
means--
(i) In Arkansas, May 2 through May 12, 2008;
(ii) In Illinois, June 1 through July 22, 2008;
(iii) In Indiana, May 30 through June 27, 2008;
(iv) In Iowa, May 25 through August 13, 2008;
(v) In Kansas, May 22 through June 16, 2008;
(vi) In Michigan, June 6 through June 13, 2008;
(vii) In Minnesota, June 6 through June 12, 2008;
(viii) In Missouri, May 10 through May 11, 2008, and June 1 through
August 13, 2008;
(ix) In Nebraska, April 23 through April 26, 2008, May 22 through
June 24, 2008, and June 27, 2008; or
(x) In Wisconsin, June 5 through July 25, 2008.
(4) Disaster area--(i) Scope. The term disaster area means the
Hurricane Katrina disaster area as defined in paragraph (f)(4)(ii) of
this section and the Midwestern disaster area as defined in paragraph
(f)(4)(iii) of this section.
(ii) Hurricane Katrina disaster area. The term Hurricane Katrina
disaster area means the states of Alabama, Florida, Louisiana, and
Mississippi.
(iii) Midwestern disaster area. The term Midwestern disaster area
means an area for which the President declared a major disaster on or
after May 20, 2008, and before August 1, 2008, under section 401 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170) (Stafford Act) by reason of severe storms, tornados, or
flooding occurring in any of the states of Arkansas, Illinois, Indiana,
Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin.
(5) Core disaster area--(i) Scope. The term core disaster area
means the Hurricane Katrina core disaster area as defined in paragraph
(f)(5)(ii) of this section and the Midwestern core disaster area as
defined in paragraph (f)(5)(iii) of this section.
(ii) Hurricane Katrina core disaster area. The term Hurricane
Katrina core disaster area means the portion of the Hurricane Katrina
disaster area designated by the President to warrant individual or
individual and public assistance from the federal government under the
Stafford Act.
(iii) Midwestern core disaster area. The term Midwestern core
disaster area means the portion of the Midwestern disaster area
designated by the President to warrant individual or individual and
public assistance from the federal government under the Stafford Act
for damages attributable to the severe storms, tornados, or flooding in
the Midwestern disaster area.
(g) Examples. The provisions of this section are illustrated by the
following examples. In each example, a taxpayer provides housing within
the meaning of paragraph (b) of this section in, or on the site of, the
taxpayer's principal residence for a period of at least 60 consecutive
days (the 60th day being in the applicable taxable year) for each
displaced individual, none of whom is a spouse or dependent of the
taxpayer. The examples are as follows:
[[Page 66051]]
Example 1. Taxpayer A provides housing to N, a Hurricane Katrina
displaced individual, from September 1, 2005, until March 10, 2006.
Under paragraphs (a) and (c)(3) of this section, A may reduce A's
taxable income by $500 on A's income tax return for calendar year
2005 or 2006 (but not both) for providing housing to N.
Example 2. The facts are the same as in Example 1, except that A
and A's unmarried roommate B are co-lessees of their principal
residence. Both A and B provide housing to N. Under paragraphs (a)
and (c)(4) of this section, either A or B, but not both, may reduce
taxable income by $500 for 2005 or 2006 for providing housing to N.
If A or B reduces taxable income for 2005 for providing housing to
N, neither A nor B may reduce taxable income for 2006 for providing
housing to N.
Example 3. The facts are the same as in Example 2, except that
in 2009 A and B provide housing to N, who in 2009 is a Midwestern
disaster displaced individual. Under paragraph (c)(5) of this
section, the limitation of paragraph (c)(4) of this section applies
separately to each disaster. Therefore, either A or B may reduce
taxable income by $500 for 2009 for providing housing to N.
Example 4. During 2008, unmarried roommates and co-lessees C and
D provide housing to eight Midwestern disaster displaced
individuals. Under paragraphs (a) and (c)(1)(i)(A) of this section,
C may reduce taxable income by $2,000 on C's 2008 income tax return
for providing housing to any four of these displaced individuals and
D may reduce taxable income by $2,000 on D's 2008 income tax return
for providing housing to the other four displaced individuals.
Example 5. (i) In 2008, a married couple, H and W, provide
housing to a Midwestern disaster displaced individual, O. H and W
file their 2008 income tax return as married filing jointly. Under
paragraphs (a) and (c)(4) of this section, H and W may reduce
taxable income by $500 on their 2008 income tax return for providing
housing to O.
(ii) In 2009, H and W provide housing to O and to another
Midwestern disaster displaced individual, P. H and W file their 2009
income tax returns as married filing separately. Because H and W
reduced their 2008 taxable income for providing housing to O, under
paragraph (c)(3) of this section, neither H nor W may reduce taxable
income on their 2009 income tax returns for providing housing to O.
Under paragraphs (a) and (c)(4) of this section, either H or W but
not both, may reduce taxable income by $500 on his or her 2009
income tax return for providing housing to P.
Example 6. The facts are the same as in Example 5, except that
in 2009 H and W provide housing to five Midwestern disaster
displaced individuals in addition to O. H and W together may reduce
taxable income on their 2009 income tax returns by a total of $2,000
for the Midwestern disaster displaced individuals (other than O).
Under paragraph (c)(1)(i)(B) of this section, H and W may allocate
the $2,000 in increments of $500 between their separate returns. For
example, either one may reduce taxable income by $500 and the other
may reduce taxable income by $1,500, or H and W each may reduce
taxable income by $1,000.
(h) Effective/applicability date. This section applies for taxable
years ending after December 11, 2006.
Sec. 1.9300-1T [Removed]
0
Par. 3. Section 1.9300-1T is removed.
Approved: December 8, 2009.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Michael F. Mundaca,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. E9-29635 Filed 12-11-09; 8:45 am]
BILLING CODE 4830-01-P
