Branded Prescription Drug Fee, 34611-34612 [2017-15643]
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Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Rules and Regulations
the amount of the specified premiums
minus the advance credit payments
attributable to the specified premiums.
(b) Additional guidance. The
Secretary may provide by publication in
the Federal Register or in the Internal
Revenue Bulletin (see § 601.601(d)(2) of
this chapter) additional guidance on
coordinating the deduction allowed
under section 162(l) and the credit
provided under section 36B.
(c) Applicability date. This section
applies for taxable years beginning after
December 31, 2013.
§ 1.162(l)–1T
[Removed]
Par. 11. Section 1.162(l)–1T is
removed.
■
Kirsten B. Wielobob,
Deputy Commissioner for Services and
Enforcement.
Approved: July 14, 2017.
Thomas West,
Tax Legislative Counsel.
[FR Doc. 2017–15642 Filed 7–24–17; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 51
[TD 9823]
RIN 1545–BM26
Branded Prescription Drug Fee
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
This document contains final
regulations that define the term
controlled group for purposes of the
branded prescription drug fee. The final
regulations supersede and adopt the text
of temporary regulations that define the
term controlled group. The final
regulations affect persons engaged in the
business of manufacturing or importing
certain branded prescription drugs.
DATES:
Effective Date: The final regulations
are effective July 24, 2017.
Applicability Date: For dates of
applicability, see § 51.11(b) of the final
regulations.
FOR FURTHER INFORMATION CONTACT:
Rachel S. Smith at (202) 317–6855 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
pmangrum on DSKBC4BHB2PROD with RULES
SUMMARY:
Background
The branded prescription drug fee
was enacted by section 9008 of the
VerDate Sep<11>2014
13:33 Jul 25, 2017
Jkt 241001
Patient Protection and Affordable Care
Act, Public Law 111–148, 124 Stat. 119
(2010), as amended by section 1404 of
the Health Care and Education
Reconciliation Act of 2010, Public Law
111–152, 124 Stat. 1029 (2010)
(collectively the ACA). Section 9008 did
not amend the Internal Revenue Code
(Code) but cross-references specific
Code sections.
On July 28, 2014, temporary
regulations (TD 9684) relating to the fee
on branded prescription drugs were
published in the Federal Register (79
FR 43631) (2014 temporary regulations).
A notice of proposed rulemaking (REG–
123286–14) cross-referencing the
temporary regulations was published in
the Federal Register on the same day
(79 FR 43699). The 2014 temporary
regulations provided a definition of the
term controlled group that was broader
than the definition of the term
controlled group in § 51.2T(e)(3) of the
temporary regulations (TD 9544)
published in the Federal Register (76
FR 51245) on August 18, 2011 (2011
temporary regulations).
Neither the Department of the
Treasury (Treasury Department) nor the
Internal Revenue Service (IRS) received
any written comments with respect to
the notice of proposed rulemaking and
no public hearing was requested or
held. The final regulations adopt the
proposed regulations without change
and the 2014 temporary regulations are
removed.
Explanation of Provisions
The 2011 temporary regulations
defined the term controlled group to
mean a group of at least two covered
entities that are treated as a single
employer under section 52(a), 52(b),
414(m), or 414(o) of the Code. The 2014
temporary regulations defined the term
controlled group more broadly to mean
a group of two or more persons,
including at least one person that is a
covered entity, that is treated as a single
employer under section 52(a), 52(b),
414(m), or 414(o) of the Code. These
final regulations adopt the definition of
controlled group contained in the 2014
temporary regulations without change.
The broader definition of the term
controlled group in the 2014 temporary
regulations and these final regulations is
supported by the statutory language and
is consistent with the way in which
controlled group rules based on similar
statutory language are applied,
including how the term controlled
group is defined in § 57.2(c)(1) for
purposes of the health insurance
providers fee under section 9010 of the
ACA. Consistent with the preamble to
the 2014 temporary regulations, the
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
34611
Treasury Department and the IRS
continue to expect that the broader
definition of the term controlled group
in the final regulations will primarily
affect the scope of joint and several
liability for the fee and will not
otherwise affect the administration of
the fee.
The 2014 temporary regulations
applied beginning on January 1, 2015
(i.e., starting with 2015 sales years), and
are effective until July 24, 2017. These
final regulations apply on and after July
24, 2017. Because both the 2014
temporary regulations and these final
regulations provide the same definition
of controlled group for purposes of
section 9008 of the ACA, that definition
applies continuously beginning with the
2015 sales year and 2017 fee year.
Special Analyses
Certain IRS regulations, including
these, are exempt from the requirements
of Executive Order 12866, as
supplemented and reaffirmed by
Executive Order 13563. Therefore, a
regulatory impact assessment is not
required. Because the final 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
the final regulations was submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for
comment on its impact on small
business. No comments were received
on the proposed regulations.
Drafting Information
The principal author of these final
regulations is Rachel S. Smith, Office of
the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 51
Drugs, Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 51 is
amended as follows:
PART 51—BRANDED PRESCRIPTION
DRUG FEE
Paragraph 1. The authority citation
for part 51 is revised to read as follows:
■
Authority: 26 U.S.C. 7805; sec. 9008, Pub.
L. 111–148, 124 Stat. 119.
Section 51.8 also issued under 26 U.S.C.
6302(a).
E:\FR\FM\26JYR1.SGM
26JYR1
34612
Federal Register / Vol. 82, No. 142 / Wednesday, July 26, 2017 / Rules and Regulations
Section 51.6302–1 also issued under 26
U.S.C. 6302(a).
Par. 2. Section 51.2 is amended by
revising paragraph (e)(3) to read as
follows:
■
§ 51.2
Explanation of terms.
*
*
*
*
*
(e) * * *
(3) Controlled group. The term
controlled group means a group of two
or more persons, including at least one
person that is a covered entity, that is
treated as a single employer under
section 52(a), 52(b), 414(m), or 414(o).
*
*
*
*
*
§ 51.2T
[Removed]
Par. 3. Section 51.2T is removed.
■ Par. 4. Section 51.11 is amended by
revising the section heading and
paragraph (b) and removing paragraph
(c) to read as follows:
■
§ 51.11
Applicability date.
*
*
*
*
*
(b) Section 51.2(e)(3) applies on and
after July 24, 2017.
§ 51.11T
■
persons and vessels from being in the
safety zones unless authorized by the
Captain of the Port New York or a
designated representative.
DATES: This rule is effective without
actual notice from July 26, 2017 through
December 31, 2017. For the purposes of
enforcement, actual notice will be used
from July 22, 2017 through July 26,
2017.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2017–
0486 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Mr. Jeff Yunker, Sector New York
Waterways Management Division;
telephone 718–354–4195, email
jeff.m.yunker@uscg.mil.
SUPPLEMENTARY INFORMATION:
I. Table of Abbreviations
CFR Code of Federal Regulations
COTP Captain of the Port New York
DHS Department of Homeland Security
FDNY New York City Fire Department
FR Federal Register
NPRM Notice of proposed rulemaking
NYSDOT New York State Department of
Transportation
OSHA Occupational Safety and Health
Administration
§ Section
U.S.C. United States Code
[Removed]
Par. 5. Section 51.11T is removed.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
Approved: July 17, 2017.
Tom West,
Tax Legislative Counsel.
[FR Doc. 2017–15643 Filed 7–24–17; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2017–0486]
RIN 1625–AA00
Safety Zone; Kosciuszko Bridge
Approach Spans Demolition, Newtown
Creek, Brooklyn and Queens, NY
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone on
the navigable waters of Newtown Creek,
NY within 2,000 feet of the existing
Kosciuszko Bridge at mile 2.1. This
action is necessary to provide for the
safety of life on these navigable waters
during the explosives demolition of the
approach spans on each adjacent
shoreline. This rulemaking prohibits
pmangrum on DSKBC4BHB2PROD with RULES
SUMMARY:
VerDate Sep<11>2014
13:33 Jul 25, 2017
Jkt 241001
II. Background Information and
Regulatory History
The Coast Guard issued a Bridge
Permit dated August 21, 2013 approving
the location and construction of the
Kosciuszko Bridge across Newtown
Creek, mile 2.1, between the Boroughs
of Queens and Brooklyn, NY. On April
25, 2017, NYSDOT notified the Coast
Guard that the contractor requires a
short term closure of Newtown Creek for
the energetic felling of the existing
Kosciuszko Bridge approach spans over
land using shaped charges. The shaped
charges make multiple precise cuts in
the steel bridge spans at the same
instant. This allows the approach spans
to fall directly to the ground below.
There will be no debris field outside of
the limits of the bridge. The tentative,
primary demolition dates are the early
morning hours of July 22 or 23, 2017.
The tentative back-up dates for these
operations are the early morning hours
of July 29 or 30, August 5 or 6, and
August 12 or 13, 2017. To ensure public
safety the contractor requested the
USCG establish a safety zone within
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Frm 00012
Fmt 4700
Sfmt 4700
600-feet of the existing bridge for a
three-hour duration during these
operations. NYSDOT stated FDNY was
working with the explosives demolition
subcontractor and would provide a final
exclusion zone limit during these
operations in early May 2017.
On May 15, 2017 the contractor
notified the Coast Guard that the
distance requested for the exclusion
zone is 1,200 from the existing bridge
during the explosives demolition.
However, the subcontractor stated this
is a preliminary distance for discussion
purposes only. The final distance would
not be provided until the contract is
awarded and the subcontractor meets
with NYSDOT, the general contractor,
security forces, and other stakeholders.
Due to this expanded distance and late
notification the Coast Guard was unable
to include this request within the
existing bridge demolition rulemaking
(Docket Number USCG–2016–1048) for
this bridge replacement project. The
safety zone distance is to ensure that
persons are not exposed to air
overpressure (noise) levels above the
140 decibel impact guidelines under
OSHA regulations codified at 29 CFR
1910.95 Table G–16—PERMISSIBLE
NOISE EXPOSURES, Footnote 1. The
Coast Guard proposes to make this rule
enforceable through December 31, 2017,
and to a greater distance (2,000 feet)
than currently requested (1,200 feet), as
a contingency for any unforeseen delays
or revisions to the bridge approach
spans demolition schedule or safety
requirements based upon the final
FDNY safety requirements.
The Coast Guard is making this
temporary rule effective less than 30
days after publication in the Federal
Register pursuant to authority under
section 4(a) of the Administrative
Procedure Act (APA) (5 U.S.C. 553(d)).
This provision authorizes an agency to
make a rule effective less than 30 days
after publication for good cause. We are
issuing this rule, and under 5 U.S.C.
553(d)(3), the Coast Guard finds that
good cause exists for making it effective
less than 30 days after publication in the
Federal Register because waiting 30
days would be impracticable and
contrary to the public interest. It is
impracticable and contrary to the public
interest to provide a full 30-days notice
because this rule must be effective on
July 22 or 23, 2017 to limit delays to
NYSDOT and contractor schedules as
part of this $555 million dollar
infrastructure improvement project.
FDNY requires the contractor to conduct
the explosives demolition in the early
morning hours on a weekend to reduce
the impact to vehicle traffic on the
bridge. This time frame is also expected
E:\FR\FM\26JYR1.SGM
26JYR1
]]>Agencies
[Federal Register Volume 82, Number 142 (Wednesday, July 26, 2017)]
[Rules and Regulations]
[Pages 34611-34612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15643]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 51
[TD 9823]
RIN 1545-BM26
Branded Prescription Drug Fee
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations that define the term
controlled group for purposes of the branded prescription drug fee. The
final regulations supersede and adopt the text of temporary regulations
that define the term controlled group. The final regulations affect
persons engaged in the business of manufacturing or importing certain
branded prescription drugs.
DATES:
Effective Date: The final regulations are effective July 24, 2017.
Applicability Date: For dates of applicability, see Sec. 51.11(b)
of the final regulations.
FOR FURTHER INFORMATION CONTACT: Rachel S. Smith at (202) 317-6855 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The branded prescription drug fee was enacted by section 9008 of
the Patient Protection and Affordable Care Act, Public Law 111-148, 124
Stat. 119 (2010), as amended by section 1404 of the Health Care and
Education Reconciliation Act of 2010, Public Law 111-152, 124 Stat.
1029 (2010) (collectively the ACA). Section 9008 did not amend the
Internal Revenue Code (Code) but cross-references specific Code
sections.
On July 28, 2014, temporary regulations (TD 9684) relating to the
fee on branded prescription drugs were published in the Federal
Register (79 FR 43631) (2014 temporary regulations). A notice of
proposed rulemaking (REG-123286-14) cross-referencing the temporary
regulations was published in the Federal Register on the same day (79
FR 43699). The 2014 temporary regulations provided a definition of the
term controlled group that was broader than the definition of the term
controlled group in Sec. 51.2T(e)(3) of the temporary regulations (TD
9544) published in the Federal Register (76 FR 51245) on August 18,
2011 (2011 temporary regulations).
Neither the Department of the Treasury (Treasury Department) nor
the Internal Revenue Service (IRS) received any written comments with
respect to the notice of proposed rulemaking and no public hearing was
requested or held. The final regulations adopt the proposed regulations
without change and the 2014 temporary regulations are removed.
Explanation of Provisions
The 2011 temporary regulations defined the term controlled group to
mean a group of at least two covered entities that are treated as a
single employer under section 52(a), 52(b), 414(m), or 414(o) of the
Code. The 2014 temporary regulations defined the term controlled group
more broadly to mean a group of two or more persons, including at least
one person that is a covered entity, that is treated as a single
employer under section 52(a), 52(b), 414(m), or 414(o) of the Code.
These final regulations adopt the definition of controlled group
contained in the 2014 temporary regulations without change.
The broader definition of the term controlled group in the 2014
temporary regulations and these final regulations is supported by the
statutory language and is consistent with the way in which controlled
group rules based on similar statutory language are applied, including
how the term controlled group is defined in Sec. 57.2(c)(1) for
purposes of the health insurance providers fee under section 9010 of
the ACA. Consistent with the preamble to the 2014 temporary
regulations, the Treasury Department and the IRS continue to expect
that the broader definition of the term controlled group in the final
regulations will primarily affect the scope of joint and several
liability for the fee and will not otherwise affect the administration
of the fee.
The 2014 temporary regulations applied beginning on January 1, 2015
(i.e., starting with 2015 sales years), and are effective until July
24, 2017. These final regulations apply on and after July 24, 2017.
Because both the 2014 temporary regulations and these final regulations
provide the same definition of controlled group for purposes of section
9008 of the ACA, that definition applies continuously beginning with
the 2015 sales year and 2017 fee year.
Special Analyses
Certain IRS regulations, including these, are exempt from the
requirements of Executive Order 12866, as supplemented and reaffirmed
by Executive Order 13563. Therefore, a regulatory impact assessment is
not required. Because the final 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 the final
regulations was submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on its impact on small
business. No comments were received on the proposed regulations.
Drafting Information
The principal author of these final regulations is Rachel S. Smith,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and the Treasury
Department participated in their development.
List of Subjects in 26 CFR Part 51
Drugs, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 51 is amended as follows:
PART 51--BRANDED PRESCRIPTION DRUG FEE
0
Paragraph 1. The authority citation for part 51 is revised to read as
follows:
Authority: 26 U.S.C. 7805; sec. 9008, Pub. L. 111-148, 124 Stat.
119.
Section 51.8 also issued under 26 U.S.C. 6302(a).
[[Page 34612]]
Section 51.6302-1 also issued under 26 U.S.C. 6302(a).
0
Par. 2. Section 51.2 is amended by revising paragraph (e)(3) to read as
follows:
Sec. 51.2 Explanation of terms.
* * * * *
(e) * * *
(3) Controlled group. The term controlled group means a group of
two or more persons, including at least one person that is a covered
entity, that is treated as a single employer under section 52(a),
52(b), 414(m), or 414(o).
* * * * *
Sec. 51.2T [Removed]
0
Par. 3. Section 51.2T is removed.
0
Par. 4. Section 51.11 is amended by revising the section heading and
paragraph (b) and removing paragraph (c) to read as follows:
Sec. 51.11 Applicability date.
* * * * *
(b) Section 51.2(e)(3) applies on and after July 24, 2017.
Sec. 51.11T [Removed]
0
Par. 5. Section 51.11T is removed.
Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
Approved: July 17, 2017.
Tom West,
Tax Legislative Counsel.
[FR Doc. 2017-15643 Filed 7-24-17; 4:15 pm]
BILLING CODE 4830-01-P
