Deduction for Qualified Film and Television Production Costs, 64816-64818 [2011-26973]
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integrity and determine that the
application meets the requirements of
DEA’s regulations. DEA is reviewing the
fact that the American Institute of
Certified Public Accountants has
replaced SAS 70 audits referenced in 21
CFR 1311.300(b)(1) and will necessarily
address this issue in the final rule on
EPCS.
Recommendation
Where questions arise in reviewing a
particular EPCS prescriber or pharmacy
application, DEA recommends that
federal guidelines as set forth by the
National Institute of Standards and
Technology (NIST), specifically NIST
Special Publication 800–53A, be
consulted. Other NIST standards and
publications are incorporated by
reference in the Interim Final Rule and
must be complied with as stated in the
Interim Final Rule.
Some of the questions surrounding
interpretation of DEA’s EPCS
regulations as applied to specific
applications are addressed by federal
guidelines articulated by the National
Institute of Standards and Technology
in NIST Special Publication (SP) 800–
53A, as revised. Federal computer
systems must comply with federal
guidelines as outlined in NIST SP 800–
53A.11 As NIST SP 800–53A states, the
publication may be used by
nongovernmental organizations on a
voluntary basis. Although the Interim
Final Rule does not require compliance
with NIST SP 800–53A, DEA believes
this publication provides useful
guidance and that it is advisable for
private sector entities to consult the
publication when reviewing security
requirements for EPCS applications. In
addition, EPCS will be used on federal
systems in the military, the Department
of Veterans Affairs and elsewhere where
such systems must comply with federal
guidelines.
DEA notes that the Notice of Proposed
Rulemaking (NPRM) in June 27, 2008
discussed NIST SP 800–53A and
whether or not it should be the basis for
security requirements. 73 FR 36746–47
(June 27, 2008). DEA did not require
application of NIST SP 800–53A in the
Interim Final Rule due to the perceived
need for flexibility and because security
would be ensured by review of
‘‘processing integrity.’’ In light of
developments since that time, DEA will
be revisiting this issue as it is clear that
a mechanism must be established in the
EPCS regulations to keep EPCS
11 https://csrc.nist.gov/publications/nistpubs/80053A-rev1/sp800-53A-rev1-final.pdf. Note that the
latest version of SP800–53A should be consulted as
it is regularly updated to meet technology
developments.
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15:51 Oct 18, 2011
Jkt 223001
applications current with technology,
particularly security requirements.
Update
All certifying organizations with a
certification process approved by DEA
pursuant to 21 CFR 1311.300(e) are
posted on DEA’s Web site once
approved.
As noted above, the Interim Final
Rule provides that, as an alternative to
the audit requirements of 21 CFR
1311(b) through (d), an electronic
prescription or pharmacy application
may be verified and certified as meeting
the requirements of 21 CFR Part 1311 by
a certifying organization whose
certification process has been approved
by DEA. The preamble to the Interim
Final Rule further indicated that, once
a qualified certifying organization’s
certification process has been approved
by DEA in accordance with 21 CFR
1311.300(e), such information will be
posted on DEA’s Web site. 75 FR 16243,
March 31, 2010. On September 22, 2011,
DEA approved the certification process
developed by InfoGard Laboratories,
Inc. and relevant information has been
posted on DEA’s Web site at https://
www.DEAdiversion.usdoj.gov under
electronic prescriptions.
in the notice of proposed rulemaking on
this subject in the Proposed Rules
section in this issue of the Federal
Register.
Effective Date: These regulations
are effective on October 18, 2011.
Applicability Dates: For dates of
applicability, see § 1.181–6T.
FOR FURTHER INFORMATION CONTACT:
Bernard P. Harvey, (202) 622–4930 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
Background
This document contains amendments
to 26 CFR part 1 to provide regulations
under section 181 of the Internal
Revenue Code of 1986 (Code). Section
181 permits the deduction of certain
production costs by the producer of a
qualified film or television production.
Section 181 was added to the Code by
section 244 of the American Jobs
Creation Act of 2004, Public Law 108–
357 (118 Stat. 1418) (October 22, 2004),
and was modified by section 403(e) of
the Gulf Opportunity Zone Act of 2005,
Public Law 109–135 (119 Stat. 2577)
(December 21, 2005). Section 502 of the
Tax Extenders and Alternative
Minimum Tax Relief Act of 2008, Public
Law 110–343 (122 Stat. 3765) (October
3, 2008) further modified section 181 for
film and television productions
commencing after December 31, 2007,
and extended section 181 to film and
television productions commencing
before January 1, 2010. Section 181 was
extended again to film and television
productions commencing before January
1, 2012, by section 744 of the Tax Relief,
Unemployment Insurance
Reauthorization, and Job Creation Act of
2010, Public Law 111–312 (December
17, 2010).
On September 30, 2011, the IRS and
the Treasury Department published in
the Federal Register (TD 9551, 76 FR
60721) final regulations relating to
deductions for the cost of producing
film and television productions under
section 181 as enacted by the American
Jobs Creation Act of 2004 and modified
by the Gulf Opportunity Zone Act of
2005.
This document contains final
and temporary regulations relating to
deductions for the cost of producing
film and television productions. These
temporary regulations reflect changes to
the law made by the Tax Extenders and
Alternative Minimum Tax Relief Act of
2008, and affect taxpayers that produce
films and television productions within
the United States. The text of these
temporary regulations also serves as the
text of the proposed regulations set forth
Explanation of Provisions
Section 181 permits an owner of a
qualified film or television production
to elect to deduct production costs paid
or incurred by that owner for the year
the costs are paid or incurred, in lieu of
capitalizing the costs and recovering
them through depreciation allowances.
For a qualified film or television
production that commenced before
January 1, 2008 (a ‘‘pre-amendment
production’’), this deduction is available
Dated: October 7, 2011.
Joseph T. Rannazzisi,
Deputy Assistant Administrator, Office of
Diversion Control.
[FR Doc. 2011–26738 Filed 10–18–11; 8:45 am]
BILLING CODE 4410–09–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9552]
RIN 1545–BJ24
Deduction for Qualified Film and
Television Production Costs
AGENCY:
SUMMARY:
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Federal Register / Vol. 76, No. 202 / Wednesday, October 19, 2011 / Rules and Regulations
only if the aggregate production costs
paid or incurred by all owners do not
exceed $15 million ($20 million if a
significant amount of the production
costs are paid or incurred in certain
designated areas) for each qualified
production (the ‘‘aggregate production
costs limit’’). For productions
commencing on or after January 1, 2008,
the aggregate production costs limit
does not apply; instead, the aggregate
deduction under section 181 for
production costs paid or incurred by all
owners of a qualified film or television
production is limited to $15 million
($20 million if a significant amount of
the production costs are incurred in
certain designated areas) for each
qualified production (the ‘‘deduction
limit’’). A film or television production
(‘‘production’’) is a qualified film or
television production if at least 75
percent of the total compensation of the
production is compensation for services
performed in the United States by
actors, directors, producers, and other
production personnel.
These temporary regulations amend
§ 1.181–1 to define the term ‘‘postamendment production’’ and specify
that the aggregate deduction under
section 181 (rather than the amount of
aggregate production costs) is subject to
the dollar limits imposed under § 1.181–
1(b). The temporary regulations also
amend §§ 1.181–0 (table of contents)
and 1.181–6 (effective date provisions).
sroberts on DSK5SPTVN1PROD with RULES
Effective Date
These temporary regulations apply to
qualified film and television
productions for which principal
photography or, for an animated
production, in-between animation,
commenced on or after October 18,
2011. An owner may choose to apply
these temporary regulations to qualified
film or television productions
commencing on or after January 1, 2008,
and before October 18, 2011.
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) and (d) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. For
applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6),
please refer to the Special Analyses
section of the preamble to the crossreference notice of proposed rulemaking
published in the Proposed Rules section
in this issue of the Federal Register.
Pursuant to section 7805(f) of the Code,
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15:51 Oct 18, 2011
Jkt 223001
these temporary regulations have been
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 Bernard P. Harvey, Office
of 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.
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 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.181–1 is amended by
revising paragraphs (a)(1)(ii), (a)(6) and
(b)(1)(ii) and (b)(2)(vi) to read as follows:
■
§ 1.181–1 Deduction for qualified film and
television production costs.
(a) * * *
(1) * * *
(ii) [Reserved]. For further guidance,
see § 1.181–1T(a)(1)(ii).
*
*
*
*
*
(6) [Reserved]. For further guidance,
see § 1.181–1T(a)(6).
*
*
*
*
*
(b) * * *
(1) * * *
(ii) [Reserved]. For further guidance,
see § 1.181–1T(b)(1)(ii).
*
*
*
*
*
(2) * * *
(vi) [Reserved]. For further guidance,
see § 1.181–1T(b)(2)(vi).
*
*
*
*
*
(c) * * *
(2) [Reserved]. For further guidance,
see § 1.181–1T(c)(2).
*
*
*
*
*
■ Par. 3. Section 1.181–0T is added to
read as follows:
§ 1.181–0T
Table of contents (temporary).
This section lists the entries for
§§ 1.181–1T and 1.181–6T.
§ 1.181–1T Deduction for qualified film and
television production costs (temporary).
(a) through (a)(5) [Reserved]. For
further guidance, see entries for § 1.181–
1(a) through (a)(5).
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64817
(6) Post-amendment production.
(a)(7) through (b)(1)(i) [Reserved]. For
further guidance, see entries for § 1.181–
1(a)(7) through (b)(1)(i).
(ii) Post-amendment costs.
(b)(1)(iii) through (c)(1) [Reserved].
For further guidance, see entries for
§ 1.181–1(b)(1)(iii) through (c)(1).
(2) Post-amendment production.
§ 1.181–6T Effective/applicability dates
(temporary).
(a) In general.
(b) Application of temporary
regulations to pre-effective date
productions.
■ Par. 4. Section 1.181–1T is added to
read as follows:
§ 1.181–1T Deduction for qualified film and
television production costs (temporary).
(a)(1)(i) [Reserved]. For further
guidance, see § 1.181–1(a)(1)(i).
(ii) This section provides rules for
determining the owner of a production,
the production costs (as defined in
paragraph (a)(3) of this section), the
maximum amount of aggregate
production costs (as defined in
paragraph (a)(4) of this section) that may
be paid or incurred for a preamendment production (as defined in
paragraph (a)(5) of this section) for
which the owner makes an election
under section 181, and the maximum
amount of aggregate production costs
that may be claimed as a deduction for
a post-amendment production (as
defined in paragraph (a)(6) of this
section) for which the owner makes an
election under section 181. Section
1.181–2 provides rules for making the
election under section 181. Section
1.181–3 provides definitions and rules
concerning qualified film and television
productions. Section 1.181–4 provides
special rules, including rules for
recapture of the deduction. Section
1.181–5 provides examples of the
application of §§ 1.181–1 through
1.181–4, while § 1.181–6 provides the
effective date of §§ 1.181–1 through
1.181–5.
(2) through (5) [Reserved]. For further
guidance, see § 1.181–1(a)(2) through
(a)(5).
(6) Post-amendment production. The
term post-amendment production
means a qualified film or television
production commencing on or after
January 1, 2008.
(7) [Reserved]. For further guidance,
see § 1.181–1(a)(7).
(b)(1)(i) [Reserved]. For further
guidance, see § 1.181–1 (b)(1)(i).
(ii) Post-amendment production.
Section 181 permits a deduction for the
first $15,000,000 (or, if applicable under
paragraph (b)(2) of this section,
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Federal Register / Vol. 76, No. 202 / Wednesday, October 19, 2011 / Rules and Regulations
$20,000,000) of the aggregate production
costs of any post-amendment
production.
(iii) [Reserved]. For further guidance,
see § 1.181–1(b)(1)(iii).
(2)(i) through (v) [Reserved]. For
further guidance, see § 1.181–1(b)(2)(i)
through (b)(2)(v).
(vi) Allocation. Solely for purposes of
determining whether a production
qualifies for the higher production cost
limit (for pre-amendment productions)
or deduction limit (for post-amendment
productions) provided under this
paragraph (b)(2), compensation to actors
(as defined in § 1.181–3(f)(1)), directors,
producers, and other relevant
production personnel (as defined in
§ 1.181–3 (f)(2)) is allocated entirely to
first–unit principal photography.
(c)(1) [Reserved]. For further
guidance, see § 1.181–1(c)(1).
(2) Post-amendment production.
Amounts not allowable as a deduction
under section 181 for a post-amendment
production may be deducted under any
other applicable provision of the Code.
■ Par. 4. Section 1.181–6T is added to
read as follows:
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(a) In general. (1) Except as provided
in paragraph (b) of this section, § 1.181–
1T applies to productions, the first day
of principal photography for which
occurs on or after October 18, 2011, and
before the date of expiration of section
181 as provided in section 181(f). For an
animated production, this paragraph (a)
applies by substituting ‘‘in-between
animation’’ in place of ‘‘principal
photography.’’ Productions involving
both animation and live-action
photography may use either standard.
(2) The applicability of § 1.181–1T
expires on October 17, 2014.
(b) Application of temporary
regulations to pre-effective date
productions. An owner may apply
§ 1.181–1T to productions, the first day
of principal photography (or ‘‘inbetween’’ animation) for which occurs
after December 31, 2007, and before
October 18, 2011, provided that the
taxpayer applies all provisions in
§ 1.181–1T and in §§ 1.181–1 through
1.181–5 (other than provisions specific
to pre-amendment productions) to the
productions. If a taxpayer does not
choose to apply § 1.181–1T to a
production, the first day of principal
photography (or ‘‘in-between’’
animation) for which occurs after
December 31, 2007, and before October
18, 2011, then the taxpayer must use a
reasonable method to take into account
the statutory change to section 181
under section 502 of the Tax Extenders
15:51 Oct 18, 2011
Jkt 223001
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: September 19, 2011.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 2011–26973 Filed 10–18–11; 8:45 am]
If
you have questions on this temporary
rule, contact or email BM1 Adam Kraft,
U.S. Coast Guard Sector Lake Michigan,
at 414–747–7148 or
Adam.D.Kraft@uscg.mil. If you have
questions on viewing the docket, call
Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 4830–01–P
Regulatory Information
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2011–0961]
RIN 1625–AA00
Safety Zone; Truman-Hobbs Alteration
of the Elgin Joliet & Eastern Railroad
Drawbridge, Morris, IL
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
§ 1.181–6T Effective/applicability dates
(temporary).
VerDate Mar<15>2010
and Alternative Minimum Tax Relief
Act of 2008. See § 1.181–6.
The Coast Guard is
establishing a temporary safety zone on
the Illinois River near Morris, Illinois.
This zone is intended to restrict vessels
from a portion of the Illinois River due
to the Truman-Hobbs alteration of the
Elgin Joliet & Eastern Railroad
Drawbridge. This temporary safety zone
is necessary to protect the surrounding
public and vessels from the hazards
associated with the removal of the Elgin
Joliet & Eastern Railroad Drawbridge’s
old bridge piers and pier protection
cells.
SUMMARY:
This rule is effective in the CFR
on October 19, 2011 through 7 a.m. on
November 16, 2011. This rule is
effective with actual notice for purposes
of enforcement beginning 7 a.m. on
October 13, 2011. This rule will remain
in effect until 7 a.m. on November 16,
2011.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2011–
0961 and are available online by going
to https://www.regulations.gov, inserting
USCG–2011–0961 in the ‘‘Keyword’’
box, and then clicking ‘‘search.’’ They
are also available for inspection or
copying at the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building Ground
floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
DATES:
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The Coast Guard is issuing this
temporary final rule without prior
notice and opportunity to comment
pursuant to authority under section 4(a)
of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when an agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under U.S.C. 553
(b)(B), the Coast Guard finds that good
cause exists for not publishing a notice
of proposed rulemaking (NPRM) with
respect to this rule because waiting for
a notice and comment period to run
would be impracticable and contrary to
the public interest in that it would
prevent the Coast Guard from protecting
the public and vessels on navigable
waters from the hazards associated with
the alteration of the Elgin Joliet &
Eastern Railroad Drawbridge, as
discussed in detail below.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective less than 30
days after publication in the Federal
Register. For the reasons discussed in
the preceding paragraph and due to the
Captain of the Port Sector Lake
Michigan not receiving notice of the
need for a safety zone, a 30-day notice
period would be impracticable and
contrary to the public interest.
Background and Purpose
The Truman-Hobbs alteration of the
Elgin Joliet & Eastern Railroad
Drawbridge, which consists of the
removal of the bridges old piers and pier
protection cells, will begin on October
13, 2011. This temporary safety zone is
necessary to protect vessels from the
hazards associated with those alteration
efforts. The falling debris associated
with the removal of the bridge’s piers
and protection cells poses a serious risk
of injury to persons and property. As
such, the Captain of the Port, Sector
Lake Michigan, has determined that the
alteration project of the Elgin Joliet &
Eastern Railroad Drawbridge poses
significant risks to public safety and
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]]>Agencies
[Federal Register Volume 76, Number 202 (Wednesday, October 19, 2011)]
[Rules and Regulations]
[Pages 64816-64818]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26973]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9552]
RIN 1545-BJ24
Deduction for Qualified Film and Television Production Costs
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final and temporary regulations
relating to deductions for the cost of producing film and television
productions. These temporary regulations reflect changes to the law
made by the Tax Extenders and Alternative Minimum Tax Relief Act of
2008, and affect taxpayers that produce films and television
productions within the United States. The text of these temporary
regulations also serves as the text of the proposed regulations set
forth in the notice of proposed rulemaking on this subject in the
Proposed Rules section in this issue of the Federal Register.
DATES: Effective Date: These regulations are effective on October 18,
2011.
Applicability Dates: For dates of applicability, see Sec. 1.181-
6T.
FOR FURTHER INFORMATION CONTACT: Bernard P. Harvey, (202) 622-4930 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR part 1 to provide
regulations under section 181 of the Internal Revenue Code of 1986
(Code). Section 181 permits the deduction of certain production costs
by the producer of a qualified film or television production.
Section 181 was added to the Code by section 244 of the American
Jobs Creation Act of 2004, Public Law 108-357 (118 Stat. 1418) (October
22, 2004), and was modified by section 403(e) of the Gulf Opportunity
Zone Act of 2005, Public Law 109-135 (119 Stat. 2577) (December 21,
2005). Section 502 of the Tax Extenders and Alternative Minimum Tax
Relief Act of 2008, Public Law 110-343 (122 Stat. 3765) (October 3,
2008) further modified section 181 for film and television productions
commencing after December 31, 2007, and extended section 181 to film
and television productions commencing before January 1, 2010. Section
181 was extended again to film and television productions commencing
before January 1, 2012, by section 744 of the Tax Relief, Unemployment
Insurance Reauthorization, and Job Creation Act of 2010, Public Law
111-312 (December 17, 2010).
On September 30, 2011, the IRS and the Treasury Department
published in the Federal Register (TD 9551, 76 FR 60721) final
regulations relating to deductions for the cost of producing film and
television productions under section 181 as enacted by the American
Jobs Creation Act of 2004 and modified by the Gulf Opportunity Zone Act
of 2005.
Explanation of Provisions
Section 181 permits an owner of a qualified film or television
production to elect to deduct production costs paid or incurred by that
owner for the year the costs are paid or incurred, in lieu of
capitalizing the costs and recovering them through depreciation
allowances. For a qualified film or television production that
commenced before January 1, 2008 (a ``pre-amendment production''), this
deduction is available
[[Page 64817]]
only if the aggregate production costs paid or incurred by all owners
do not exceed $15 million ($20 million if a significant amount of the
production costs are paid or incurred in certain designated areas) for
each qualified production (the ``aggregate production costs limit'').
For productions commencing on or after January 1, 2008, the aggregate
production costs limit does not apply; instead, the aggregate deduction
under section 181 for production costs paid or incurred by all owners
of a qualified film or television production is limited to $15 million
($20 million if a significant amount of the production costs are
incurred in certain designated areas) for each qualified production
(the ``deduction limit''). A film or television production
(``production'') is a qualified film or television production if at
least 75 percent of the total compensation of the production is
compensation for services performed in the United States by actors,
directors, producers, and other production personnel.
These temporary regulations amend Sec. 1.181-1 to define the term
``post-amendment production'' and specify that the aggregate deduction
under section 181 (rather than the amount of aggregate production
costs) is subject to the dollar limits imposed under Sec. 1.181-1(b).
The temporary regulations also amend Sec. Sec. 1.181-0 (table of
contents) and 1.181-6 (effective date provisions).
Effective Date
These temporary regulations apply to qualified film and television
productions for which principal photography or, for an animated
production, in-between animation, commenced on or after October 18,
2011. An owner may choose to apply these temporary regulations to
qualified film or television productions commencing on or after January
1, 2008, and before October 18, 2011.
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) and (d) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply to these regulations. For
applicability of the Regulatory Flexibility Act (5 U.S.C. chapter 6),
please refer to the Special Analyses section of the preamble to the
cross-reference notice of proposed rulemaking published in the Proposed
Rules section in this issue of the Federal Register. Pursuant to
section 7805(f) of the Code, these temporary regulations have been
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 Bernard P. Harvey,
Office of 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.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.181-1 is amended by revising paragraphs (a)(1)(ii),
(a)(6) and (b)(1)(ii) and (b)(2)(vi) to read as follows:
Sec. 1.181-1 Deduction for qualified film and television production
costs.
(a) * * *
(1) * * *
(ii) [Reserved]. For further guidance, see Sec. 1.181-
1T(a)(1)(ii).
* * * * *
(6) [Reserved]. For further guidance, see Sec. 1.181-1T(a)(6).
* * * * *
(b) * * *
(1) * * *
(ii) [Reserved]. For further guidance, see Sec. 1.181-
1T(b)(1)(ii).
* * * * *
(2) * * *
(vi) [Reserved]. For further guidance, see Sec. 1.181-
1T(b)(2)(vi).
* * * * *
(c) * * *
(2) [Reserved]. For further guidance, see Sec. 1.181-1T(c)(2).
* * * * *
0
Par. 3. Section 1.181-0T is added to read as follows:
Sec. 1.181-0T Table of contents (temporary).
This section lists the entries for Sec. Sec. 1.181-1T and 1.181-
6T.
Sec. 1.181-1T Deduction for qualified film and television production
costs (temporary).
(a) through (a)(5) [Reserved]. For further guidance, see entries
for Sec. 1.181-1(a) through (a)(5).
(6) Post-amendment production.
(a)(7) through (b)(1)(i) [Reserved]. For further guidance, see
entries for Sec. 1.181-1(a)(7) through (b)(1)(i).
(ii) Post-amendment costs.
(b)(1)(iii) through (c)(1) [Reserved]. For further guidance, see
entries for Sec. 1.181-1(b)(1)(iii) through (c)(1).
(2) Post-amendment production.
Sec. 1.181-6T Effective/applicability dates (temporary).
(a) In general.
(b) Application of temporary regulations to pre-effective date
productions.
0
Par. 4. Section 1.181-1T is added to read as follows:
Sec. 1.181-1T Deduction for qualified film and television production
costs (temporary).
(a)(1)(i) [Reserved]. For further guidance, see Sec. 1.181-
1(a)(1)(i).
(ii) This section provides rules for determining the owner of a
production, the production costs (as defined in paragraph (a)(3) of
this section), the maximum amount of aggregate production costs (as
defined in paragraph (a)(4) of this section) that may be paid or
incurred for a pre-amendment production (as defined in paragraph (a)(5)
of this section) for which the owner makes an election under section
181, and the maximum amount of aggregate production costs that may be
claimed as a deduction for a post-amendment production (as defined in
paragraph (a)(6) of this section) for which the owner makes an election
under section 181. Section 1.181-2 provides rules for making the
election under section 181. Section 1.181-3 provides definitions and
rules concerning qualified film and television productions. Section
1.181-4 provides special rules, including rules for recapture of the
deduction. Section 1.181-5 provides examples of the application of
Sec. Sec. 1.181-1 through 1.181-4, while Sec. 1.181-6 provides the
effective date of Sec. Sec. 1.181-1 through 1.181-5.
(2) through (5) [Reserved]. For further guidance, see Sec. 1.181-
1(a)(2) through (a)(5).
(6) Post-amendment production. The term post-amendment production
means a qualified film or television production commencing on or after
January 1, 2008.
(7) [Reserved]. For further guidance, see Sec. 1.181-1(a)(7).
(b)(1)(i) [Reserved]. For further guidance, see Sec. 1.181-1
(b)(1)(i).
(ii) Post-amendment production. Section 181 permits a deduction for
the first $15,000,000 (or, if applicable under paragraph (b)(2) of this
section,
[[Page 64818]]
$20,000,000) of the aggregate production costs of any post-amendment
production.
(iii) [Reserved]. For further guidance, see Sec. 1.181-
1(b)(1)(iii).
(2)(i) through (v) [Reserved]. For further guidance, see Sec.
1.181-1(b)(2)(i) through (b)(2)(v).
(vi) Allocation. Solely for purposes of determining whether a
production qualifies for the higher production cost limit (for pre-
amendment productions) or deduction limit (for post-amendment
productions) provided under this paragraph (b)(2), compensation to
actors (as defined in Sec. 1.181-3(f)(1)), directors, producers, and
other relevant production personnel (as defined in Sec. 1.181-3
(f)(2)) is allocated entirely to first-unit principal photography.
(c)(1) [Reserved]. For further guidance, see Sec. 1.181-1(c)(1).
(2) Post-amendment production. Amounts not allowable as a deduction
under section 181 for a post-amendment production may be deducted under
any other applicable provision of the Code.
0
Par. 4. Section 1.181-6T is added to read as follows:
Sec. 1.181-6T Effective/applicability dates (temporary).
(a) In general. (1) Except as provided in paragraph (b) of this
section, Sec. 1.181-1T applies to productions, the first day of
principal photography for which occurs on or after October 18, 2011,
and before the date of expiration of section 181 as provided in section
181(f). For an animated production, this paragraph (a) applies by
substituting ``in-between animation'' in place of ``principal
photography.'' Productions involving both animation and live-action
photography may use either standard.
(2) The applicability of Sec. 1.181-1T expires on October 17,
2014.
(b) Application of temporary regulations to pre-effective date
productions. An owner may apply Sec. 1.181-1T to productions, the
first day of principal photography (or ``in-between'' animation) for
which occurs after December 31, 2007, and before October 18, 2011,
provided that the taxpayer applies all provisions in Sec. 1.181-1T and
in Sec. Sec. 1.181-1 through 1.181-5 (other than provisions specific
to pre-amendment productions) to the productions. If a taxpayer does
not choose to apply Sec. 1.181-1T to a production, the first day of
principal photography (or ``in-between'' animation) for which occurs
after December 31, 2007, and before October 18, 2011, then the taxpayer
must use a reasonable method to take into account the statutory change
to section 181 under section 502 of the Tax Extenders and Alternative
Minimum Tax Relief Act of 2008. See Sec. 1.181-6.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: September 19, 2011.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2011-26973 Filed 10-18-11; 8:45 am]
BILLING CODE 4830-01-P
