Deduction for Qualified Film and Television Production Costs, 72923-72924 [2012-29630]
Download as PDF
<![CDATA[
srobinson on DSK4SPTVN1PROD with
Federal Register / Vol. 77, No. 236 / Friday, December 7, 2012 / Rules and Regulations
be sufficient to restore the financial
viability of the project;
(3) The project is or can (at reasonable
cost) be made physically sound;
(4) The current or proposed operator
of the facility is satisfactory to the
Commissioner, as demonstrated by past
experience in operating similar types of
healthcare facilities and by state
regulatory performance;
(5) The default under the insured
mortgage was beyond the control of the
borrower and/or operator, or in the case
of a transfer of physical assets (TPA),
the proposed borrower or operator,
unless the Commissioner determines
that any borrower/operator deficiencies
giving rise to the default have clearly
been addressed; and
(6) The project is serving as, or
potentially could serve as, a needed
nursing home, intermediate care facility,
board and care home, or assisted living
facility.
(c) Partial payment of a claim under
this section shall be made only when:
(1) The property covered by the
mortgage is free and clear of all liens
other than the insured first mortgage
and such other liens as the
Commissioner may have approved;
(2) The lender has voluntarily agreed
to accept a PPC under the mortgage
insurance contract and to recast the
remaining mortgage amount under
terms and conditions prescribed by the
Commissioner; and
(3) The borrower has agreed to repay
to the Commissioner an amount equal to
the partial payment, with the obligation
secured by a second mortgage on the
project containing terms and conditions
prescribed by the Commissioner. The
terms of the second mortgage will be
determined on a case-by-case basis to
ensure that the estimated project income
will be sufficient to cover estimated
operating expenses and debt service on
the recast insured mortgage. The
Commissioner may provide for
postponed amortization of the second
mortgage.
(d) Payment of insurance benefits
under this section shall be in cash.
(e) A lender receiving a partial
payment of claim, following the
Commissioner’s endorsement of the
mortgage for full insurance under 24
CFR part 252, will pay HUD a fee in an
amount set forth through Federal
Register notice. HUD, in its discretion,
may collect this fee or deduct the fee
from any payment it makes in the claim
process.
VerDate Mar<15>2010
16:11 Dec 06, 2012
Jkt 229001
Dated: December 3, 2012.
Carol J. Galante,
Acting Assistant Secretary for Housing—
Federal Housing Commissioner.
[FR Doc. 2012–29545 Filed 12–6–12; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9603]
RIN 1545–BJ23
Deduction for Qualified Film and
Television Production Costs
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
This document contains final
regulations relating to deductions for
the cost of producing qualified film and
television productions. These final
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.
DATES: Effective Date: These regulations
are effective on December 7, 2012.
Applicability Dates: For dates of
applicability, see § 1.181–6.
FOR FURTHER INFORMATION CONTACT:
Bernard P. Harvey, (202) 622–4930 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
This document contains final
regulations that amend 26 CFR part 1 to
reflect amendments made to section 181
of the Internal Revenue Code of 1986
(Code) by section 502 of the Tax
Extenders and Alternative Minimum
Tax Relief Act of 2008, Public Law 110–
343 (122 Stat. 3765) (October 3, 2008).
On October 19, 2011, the IRS and the
Treasury Department published in the
Federal Register (TD 9552, 76 FR
64816) temporary regulations amending
the rules under section 181 for
deductions relating to the cost of
producing qualified film and television
productions to reflect section 502 of the
Tax Extenders and Alternative
Minimum Tax Relief Act of 2008. A
notice of proposed rulemaking (REG–
146297–09) cross-referencing the
temporary regulations was published in
the Federal Register (76 FR 64879) on
the same day. No comments were
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
72923
received from the public in response to
the notice of proposed rulemaking. No
public hearing was requested or held.
The proposed regulations under section
181 are adopted by this Treasury
decision and the corresponding
temporary regulations are removed.
Effective/Applicability Date
These final regulations apply to
qualified film and television
productions to which section 181 is
applicable and for which the first day of
principal photography or in-between
animation occurs on or after December
7, 2012. The owner of a qualified film
or television production may apply the
final regulations to productions to
which section 181 applies and for
which principal photography or, for an
animated production, in-between
animation commenced before December
7, 2012.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866, as
supplemented by Executive Order
13563. 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. 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 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, and no comments were
received.
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.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
E:\FR\FM\07DER1.SGM
07DER1
72924
Federal Register / Vol. 77, No. 236 / Friday, December 7, 2012 / Rules and Regulations
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 1.181–0 is amended
by:
■ 1. Adding the entries for § 1.181–1
paragraphs (a)(6), (b)(1)(ii) and (c)(2).
■ 2. Revising the entry for § 1.181–6
paragraph (b) and removing paragraph
(c).
The revision and additions to read as
follows:
■
§ 1.181–0
Table of contents.
*
*
*
*
*
§ 1.181–1 Deduction for qualified film and
television production costs.
(a) * * *
(6) Post-amendment production.
*
*
*
*
*
(b) * * *
(1) * * *
(ii) Post-amendment production.
*
*
*
*
*
(c) * * *
(2) Post-amendment production.
*
*
*
*
*
§ 1.181–6
*
Effective/applicability date.
*
*
*
*
(b) Pre-effective date productions.
§ 1.181–0T
[Removed]
Par. 3. Section 1.181–0T is removed.
Par. 4. Section 1.181–1 is amended by
revising paragraphs (a)(1)(ii), (a)(6),
(b)(1)(ii), (b)(2)(vi), and (c)(2) to read as
follows:
■
■
srobinson on DSK4SPTVN1PROD with
§ 1.181–1 Deduction for qualified film and
television production costs.
(a) * * * (1) * * *
(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
VerDate Mar<15>2010
16:11 Dec 06, 2012
Jkt 229001
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.
*
*
*
*
*
(6) Post-amendment production. The
term post-amendment production
means a qualified film or television
production commencing on or after
January 1, 2008.
*
*
*
*
*
(b) * * * (1) * * *
(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,
$20,000,000) of the aggregate production
costs of any post-amendment
production.
*
*
*
*
*
(2) * * *
(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) * * *
(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.
§ 1.181–1T
[Removed]
Par. 5. Section 1.181–1T is removed.
Par. 6. Section 1.181–6 is revised to
read as follows:
■
■
§ 1.181–6
Effective/applicability date.
(a) In general. Except as otherwise
provided in this section, §§ 1.181–1
through 1.181–5 apply to productions
the first day of principal photography
for which occurs on or after September
29, 2011. Paragraphs 1.181–1(a)(1)(ii),
(a)(6), (b)(1)(ii), (b)(2)(vi), and (c)(2) of
§ 1.181–1 apply to productions to which
section 181 is applicable and for which
the first day of principal photography or
in-between animation occurs on or after
December 7, 2012.
(b) Pre-effective date productions. For
any taxable year for which the period of
limitation on refund or credit under
section 6511 has not expired, the owner
may apply §§ 1.181–1 through 1.181–5
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
to any production to which section 181
applies and for which the first day of
principal photography (or in-between
animation) occurred before December 7,
2012, provided the owner applies all
relevant provisions of §§ 1.181–1
through 1.181–5 to the production.
§ 1.181–6T
[Removed]
Par. 7. Paragraph 1.181–6T is
removed.
■
Approved: November 30, 2012.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Mark J. Mazur
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2012–29630 Filed 12–6–12; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 48
[TD 9604]
RIN 1545–BJ44
Taxable Medical Devices
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations that provide guidance on the
excise tax imposed on the sale of certain
medical devices, enacted by the Health
Care and Education Reconciliation Act
of 2010 in conjunction with the Patient
Protection and Affordable Care Act. The
final regulations affect manufacturers,
importers, and producers of taxable
medical devices.
DATES: Effective date: These regulations
are effective on December 7, 2012.
Applicability date: These regulations
are applicable to sales of taxable
medical devices after December 31,
2012.
FOR FURTHER INFORMATION CONTACT:
Natalie Payne, Michael Beker, or
Stephanie Bland, at (202) 622–3130 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
This document contains final
regulations that provide guidance on the
excise tax imposed on the sale of certain
medical devices under section 4191 (the
medical device excise tax) of the
Internal Revenue Code (Code), enacted
by section 1405 of the Health Care and
Education Reconciliation Act of 2010,
E:\FR\FM\07DER1.SGM
07DER1
]]>Agencies
[Federal Register Volume 77, Number 236 (Friday, December 7, 2012)]
[Rules and Regulations]
[Pages 72923-72924]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29630]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9603]
RIN 1545-BJ23
Deduction for Qualified Film and Television Production Costs
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to
deductions for the cost of producing qualified film and television
productions. These final 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.
DATES: Effective Date: These regulations are effective on December 7,
2012.
Applicability Dates: For dates of applicability, see Sec. 1.181-6.
FOR FURTHER INFORMATION CONTACT: Bernard P. Harvey, (202) 622-4930 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains final regulations that amend 26 CFR part 1
to reflect amendments made to section 181 of the Internal Revenue Code
of 1986 (Code) by section 502 of the Tax Extenders and Alternative
Minimum Tax Relief Act of 2008, Public Law 110-343 (122 Stat. 3765)
(October 3, 2008).
On October 19, 2011, the IRS and the Treasury Department published
in the Federal Register (TD 9552, 76 FR 64816) temporary regulations
amending the rules under section 181 for deductions relating to the
cost of producing qualified film and television productions to reflect
section 502 of the Tax Extenders and Alternative Minimum Tax Relief Act
of 2008. A notice of proposed rulemaking (REG-146297-09) cross-
referencing the temporary regulations was published in the Federal
Register (76 FR 64879) on the same day. No comments were received from
the public in response to the notice of proposed rulemaking. No public
hearing was requested or held. The proposed regulations under section
181 are adopted by this Treasury decision and the corresponding
temporary regulations are removed.
Effective/Applicability Date
These final regulations apply to qualified film and television
productions to which section 181 is applicable and for which the first
day of principal photography or in-between animation occurs on or after
December 7, 2012. The owner of a qualified film or television
production may apply the final regulations to productions to which
section 181 applies and for which principal photography or, for an
animated production, in-between animation commenced before December 7,
2012.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866, as
supplemented by Executive Order 13563. 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. 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 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, and no comments were received.
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.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
[[Page 72924]]
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 1.181-0 is amended by:
0
1. Adding the entries for Sec. 1.181-1 paragraphs (a)(6), (b)(1)(ii)
and (c)(2).
0
2. Revising the entry for Sec. 1.181-6 paragraph (b) and removing
paragraph (c).
The revision and additions to read as follows:
Sec. 1.181-0 Table of contents.
* * * * *
Sec. 1.181-1 Deduction for qualified film and television production
costs.
(a) * * *
(6) Post-amendment production.
* * * * *
(b) * * *
(1) * * *
(ii) Post-amendment production.
* * * * *
(c) * * *
(2) Post-amendment production.
* * * * *
Sec. 1.181-6 Effective/applicability date.
* * * * *
(b) Pre-effective date productions.
Sec. 1.181-0T [Removed]
0
Par. 3. Section 1.181-0T is removed.
0
Par. 4. Section 1.181-1 is amended by revising paragraphs (a)(1)(ii),
(a)(6), (b)(1)(ii), (b)(2)(vi), and (c)(2) to read as follows:
Sec. 1.181-1 Deduction for qualified film and television production
costs.
(a) * * * (1) * * *
(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.
* * * * *
(6) Post-amendment production. The term post-amendment production
means a qualified film or television production commencing on or after
January 1, 2008.
* * * * *
(b) * * * (1) * * *
(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, $20,000,000) of the aggregate production costs of any post-
amendment production.
* * * * *
(2) * * *
(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) * * *
(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.
Sec. 1.181-1T [Removed]
0
Par. 5. Section 1.181-1T is removed.
0
Par. 6. Section 1.181-6 is revised to read as follows:
Sec. 1.181-6 Effective/applicability date.
(a) In general. Except as otherwise provided in this section,
Sec. Sec. 1.181-1 through 1.181-5 apply to productions the first day
of principal photography for which occurs on or after September 29,
2011. Paragraphs 1.181-1(a)(1)(ii), (a)(6), (b)(1)(ii), (b)(2)(vi), and
(c)(2) of Sec. 1.181-1 apply to productions to which section 181 is
applicable and for which the first day of principal photography or in-
between animation occurs on or after December 7, 2012.
(b) Pre-effective date productions. For any taxable year for which
the period of limitation on refund or credit under section 6511 has not
expired, the owner may apply Sec. Sec. 1.181-1 through 1.181-5 to any
production to which section 181 applies and for which the first day of
principal photography (or in-between animation) occurred before
December 7, 2012, provided the owner applies all relevant provisions of
Sec. Sec. 1.181-1 through 1.181-5 to the production.
Sec. 1.181-6T [Removed]
0
Par. 7. Paragraph 1.181-6T is removed.
Approved: November 30, 2012.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Mark J. Mazur
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2012-29630 Filed 12-6-12; 8:45 am]
BILLING CODE 4830-01-P
