Deduction for Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income; Correcting Amendment, 60909-60910 [2020-19333]
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Federal Register / Vol. 85, No. 189 / Tuesday, September 29, 2020 / Rules and Regulations
jbell on DSKJLSW7X2PROD with RULES
subject to public comment, in the
Federal Register.
HUD created the Section 3 worker and
Targeted Section 3 worker concepts so
that HUD could track and set
benchmarks to target selected categories
of workers and to recognize the
statutory requirements pertaining to
contracting opportunities for business
concerns employing low- and very-low
income persons.
In the final Section 3 rule, HUD
defines a Section 3 worker for both
public housing financial assistance and
Section 3 projects as a worker that meets
one of the following requirements:
• The worker’s income is below the
income limit established by HUD.
• The worker is employed by a
Section 3 business concern.
• The worker is a YouthBuild
participant.
HUD defines a Targeted Section 3
worker differently for public housing
financial assistance and Section 3
projects. For § 75.11, public housing
financial assistance, a Targeted Section
3 worker includes any worker who is
employed by a Section 3 business
concern or is a:
• Resident of public housing or
Section 8-assisted housing;
• Resident of another project
managed by the PHA that is expending
assistance; or
• YouthBuild participant.
For § 75.21, Section 3 projects, a
Targeted Section 3 worker includes any
worker who is employed by a Section 3
business concern or is a Section 3
worker who is:
• Living within the service area or
neighborhood of the project; or
• A YouthBuild participant.
HUD defines a Section 3 business
concern as a business concern that
meets one of the following
requirements:
• It is at least 51 percent owned by
low- or very low-income persons;
• Over 75 percent of the labor hours
performed for the business are
performed by low- or very low-income
persons; or
• It is a business at least 51 percent
owned by current public housing
residents or residents who currently live
in Section 8-assisted housing.
For more information about the final
rule, HUD refers readers to the final rule
published elsewhere in this issue of the
Federal Register.
included in the proposed benchmark
notification. In the final rule, HUD is
not adopting the new hires formula as
proposed as an alternative in the
proposed rule, so the new hires formula
is accordingly not reflected in this
document. HUD is finalizing the same
benchmarks for all public housing
financial assistance and Section 3
projects. The methodology in
determining the Section 3 benchmarks,
as discussed above in the Background
section, did not change from what was
described in the proposed benchmark
notification because the definitions of
Section 3 Workers, Targeted Section 3
Workers, and Section 3 Business
concerns provided in the proposed rule
and adopted in the Section 3 final rule
were not substantially different. Once
HUD has more data, it may determine
whether different benchmarks are
appropriate. Please see the above
summary in the Background section of
this document and the proposed
benchmark notification for more
information.
The following benchmarks apply to
recipients subject to Section 3 upon the
effective date in the Section 3 final rule:
Public Housing Financial Assistance
For meeting the safe harbor in § 75.13,
PHAs and other recipients that certify to
following the prioritization of effort in
§ 75.9 and meet or exceed the following
Section 3 benchmarks will be
considered to have complied with
requirements in proposed 24 CFR part
75, subpart B, in the absence of
evidence to the contrary:
(1) Twenty-five (25) percent or more
of the total number of labor hours
worked by all workers employed with
public housing financial assistance in
the PHA’s or other recipient’s fiscal year
are Section 3 workers;
Section 3 Labor Hours
Targeted Section 3 Labor Hours
15:52 Sep 28, 2020
= 5%
Total Labor Hours
This document finalizes the
benchmarks with regards to labor hours
for both public housing financial
assistance and Section 3 projects
without changes from what was
Jkt 250001
benchmarks will be considered to have
complied with requirements in
proposed 24 CFR part 75, subpart C, in
the absence of evidence to the contrary:
(1) Twenty-five (25) percent or more
of the total number of labor hours
worked by all workers on a Section 3
project are Section 3 workers;
Targeted Section 3 Labor Hours
= 25%
Total Labor Hours
and
(2) Five (5) percent or more of the
total number of labor hours worked by
all workers on a Section 3 project are
Targeted Section 3 workers, as defined
at § 75.21.
Targeted Section 3 Labor Hours
= 5%
Total Labor Hours
IV. Environmental Impact
This document involves the
establishment of new Section 3
benchmarks for creating economic
opportunities for low- and very lowincome persons and eligible businesses,
and does not direct, provide for
assistance or loan and mortgage
insurance for, or otherwise govern or
regulate, real property acquisition,
disposition, leasing, rehabilitation,
alteration, demolition, or new
construction; or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this document
is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Benjamin S. Carson, Sr.,
Secretary.
[FR Doc. 2020–19183 Filed 9–28–20; 8:45 am]
BILLING CODE 4210–67–P
Total Labor Hours
and
(2) Five (5) percent or more of the
total number of labor hours worked by
all workers employed with public
housing financial assistance in the
PHA’s or other recipient’s fiscal year are
Targeted Section 3 workers, as defined
at § 75.11.
III. Section 3 Benchmarks
VerDate Sep<11>2014
= 25%
60909
Section 3 Project
For meeting the safe harbor in § 75.23,
recipients that certify to following the
prioritization in § 75.19 and meet or
exceed the following Section 3
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9901]
RIN 1545–BO55
Deduction for Foreign-Derived
Intangible Income and Global
Intangible Low-Taxed Income;
Correcting Amendment
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
E:\FR\FM\29SER1.SGM
29SER1
60910
Federal Register / Vol. 85, No. 189 / Tuesday, September 29, 2020 / Rules and Regulations
This document contains
corrections to Treasury Decision 9901,
which was published in the Federal
Register on Wednesday, July 15, 2020.
The Treasury Decision provided
guidance regarding the deduction for
foreign derived intangible income (FDII)
and global intangible low-taxed income
(GILTI).
DATES: These corrections are effective
on September 29, 2020.
Applicability Date: For date of
applicability, see § 1.250–1(b).
FOR FURTHER INFORMATION CONTACT: Brad
McCormack at (202) 317–6911 and
Lorraine Rodriguez at (202) 317–6726;
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations (TD 9901) that
are the subject of this correction are
issued under section 250 of the Internal
Revenue Code.
Need for Correction
As published July 15, 2020 (85 FR
43042), the final regulations (TD 9901)
contain errors that need to be corrected.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
PART 1—INCOME TAXES
Par. 2. Section 1.250–0 is amended by
revising the entry for § 1.250(b)–6
(d)(3)(ii) to read as follows:
■
*
Table of contents.
*
*
*
§ 1.250(b)–6 Related party transactions.
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*
*
*
*
*
(d) * * *
(3) * * *
(ii) Rules for allocating the benefits
provided by and price paid to the
renderer of a related party service.
*
*
*
*
*
■ Par. 3. Section 1.250(b)–2 is amended
by revising the second sentence of
paragraph (d)(4)(ii)(C) to read as follows:
§ 1.250(b)–2 Qualified business asset
investment (QBAI).
*
*
*
(d) * * *
VerDate Sep<11>2014
*
*
15:52 Sep 28, 2020
Jkt 250001
*
*
*
*
*
(d) * * *
(2) * * *
(iv) * * *
(B) * * *
(13) Example 13: License of intangible
property used in research and
development of other intangible
property—* * *
*
*
*
*
*
■ Par. 5. Section 1.250(b)–5 is amended
by revising the second sentence of
paragraph (e)(2)(iii) to read as follows:
*
Authority: 26 U.S.C. 7805 * * *
*
§ 1.250(b)–4 Foreign-derived deduction
eligible income (FDDEI) sales.
§ 1.250(b)–5 Foreign-derived deduction
eligible income (FDDEI) services.
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
§ 1.250–0
(4) * * *
(ii) * * *
(C) * * * Therefore, under paragraph
(d)(3) of this section, DC’s dual use ratio
with respect to the machine for the
taxable year is 80 percent, which is DC’s
depreciation with respect to the
machine that is capitalized to inventory
of Product A, the gross income or loss
from the sale of which is taken into
account in determining DC’s DEI for the
taxable year ($320x), divided by DC’s
depreciation with respect to the
machine that is capitalized to inventory,
the gross income or loss from the sale
of which is taken into account in
determining DC’s income for Year 1
($400x). * * *
*
*
*
*
*
■ Par. 4. Section 1.250(b)–4 is amended
by revising the paragraph heading for
paragraph(d)(2)(iv)(B)(13) to read as
follows:
*
*
*
*
(e) * * *
(2) * * *
(iii) * * * If it cannot be determined
whether the location is within or
outside the United States (such as where
the location of access cannot be reliably
determined using the location of the IP
address of the device used to receive the
service), and the gross receipts from all
services with respect to the business
recipient are in the aggregate less than
$50,000 for the renderer’s taxable year,
the operations of the business recipient
that benefit from the service provided
by the renderer are deemed to be located
at the recipient’s billing address;
otherwise, the operations of the
business recipient that benefit are
deemed to be located in the United
States. * * *
*
*
*
*
*
■ Par. 6. Section 1.250(b)–6 is amended
by:
■ 1. Revising the second sentence of
paragraph (d)(4)(ii)(B)(2)(i).
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2. Revising the third sentence of
paragraph (d)(4)(ii)(C)(2)(i).
The revisions read as follows:
■
§ 1.250(b)–6
Related party transactions.
*
*
*
*
*
(d) * * *
(4) * * *
(ii) * * *
(B) * * *
(2) * * *
(i) * * * However, because 90
percent of R’s operations that will
benefit from FC’s service are located
outside the United States under
paragraph (d)(3)(i) of this section, only
10 percent of the benefits of FC’s service
are conferred on persons located within
the United States. * * *
*
*
*
*
*
(C) * * *
(2) * * *
(i) * * * Accordingly, because 10
percent of R’s operations that will
benefit from FC’s services are located
within the United States, persons
located within the United States are
treated as paying $10x ($100x × 0.10) for
FC’s services for purposes of applying
the test in paragraph (d)(2)(ii) of this
section.
*
*
*
*
*
§ 1.1502–12
[Corrected]
Par. 7. On page 43112, in the third
column, amendatory instruction 18
under § 1.1502–12, is corrected to read
as ‘‘Redesignating newly designated
paragraphs (c)(7)(ii)(Q)(a) through (c) as
paragraphs (c)(7)(ii)(Q)(1) through (3)’’.
■
Crystal Pemberton,
Senior Federal Register Liaison, Publications
and Regulations Branch, Legal Processing
Division, Associate Chief Counsel, (Procedure
and Administration).
[FR Doc. 2020–19333 Filed 9–28–20; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 272
[Docket ID: DOD–2019–OS–0007]
RIN 0790–AK51
Administration and Support of Basic
Research by the Department of
Defense
Under Secretary of Defense
(Research and Engineering), Department
of Defense (DoD).
ACTION: Final rule.
AGENCY:
This final rule removes DoD’s
regulation concerning the
SUMMARY:
E:\FR\FM\29SER1.SGM
29SER1
]]>Agencies
[Federal Register Volume 85, Number 189 (Tuesday, September 29, 2020)]
[Rules and Regulations]
[Pages 60909-60910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19333]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9901]
RIN 1545-BO55
Deduction for Foreign-Derived Intangible Income and Global
Intangible Low-Taxed Income; Correcting Amendment
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
[[Page 60910]]
SUMMARY: This document contains corrections to Treasury Decision 9901,
which was published in the Federal Register on Wednesday, July 15,
2020. The Treasury Decision provided guidance regarding the deduction
for foreign derived intangible income (FDII) and global intangible low-
taxed income (GILTI).
DATES: These corrections are effective on September 29, 2020.
Applicability Date: For date of applicability, see Sec. 1.250-
1(b).
FOR FURTHER INFORMATION CONTACT: Brad McCormack at (202) 317-6911 and
Lorraine Rodriguez at (202) 317-6726; (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9901) that are the subject of this
correction are issued under section 250 of the Internal Revenue Code.
Need for Correction
As published July 15, 2020 (85 FR 43042), the final regulations (TD
9901) contain errors that need to be corrected.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following
correcting amendments:
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 1.250-0 is amended by revising the entry for Sec.
1.250(b)-6 (d)(3)(ii) to read as follows:
Sec. 1.250-0 Table of contents.
* * * * *
Sec. 1.250(b)-6 Related party transactions.
* * * * *
(d) * * *
(3) * * *
(ii) Rules for allocating the benefits provided by and price paid
to the renderer of a related party service.
* * * * *
0
Par. 3. Section 1.250(b)-2 is amended by revising the second sentence
of paragraph (d)(4)(ii)(C) to read as follows:
Sec. 1.250(b)-2 Qualified business asset investment (QBAI).
* * * * *
(d) * * *
(4) * * *
(ii) * * *
(C) * * * Therefore, under paragraph (d)(3) of this section, DC's
dual use ratio with respect to the machine for the taxable year is 80
percent, which is DC's depreciation with respect to the machine that is
capitalized to inventory of Product A, the gross income or loss from
the sale of which is taken into account in determining DC's DEI for the
taxable year ($320x), divided by DC's depreciation with respect to the
machine that is capitalized to inventory, the gross income or loss from
the sale of which is taken into account in determining DC's income for
Year 1 ($400x). * * *
* * * * *
0
Par. 4. Section 1.250(b)-4 is amended by revising the paragraph heading
for paragraph(d)(2)(iv)(B)(13) to read as follows:
Sec. 1.250(b)-4 Foreign-derived deduction eligible income (FDDEI)
sales.
* * * * *
(d) * * *
(2) * * *
(iv) * * *
(B) * * *
(13) Example 13: License of intangible property used in research
and development of other intangible property--* * *
* * * * *
0
Par. 5. Section 1.250(b)-5 is amended by revising the second sentence
of paragraph (e)(2)(iii) to read as follows:
Sec. 1.250(b)-5 Foreign-derived deduction eligible income (FDDEI)
services.
* * * * *
(e) * * *
(2) * * *
(iii) * * * If it cannot be determined whether the location is
within or outside the United States (such as where the location of
access cannot be reliably determined using the location of the IP
address of the device used to receive the service), and the gross
receipts from all services with respect to the business recipient are
in the aggregate less than $50,000 for the renderer's taxable year, the
operations of the business recipient that benefit from the service
provided by the renderer are deemed to be located at the recipient's
billing address; otherwise, the operations of the business recipient
that benefit are deemed to be located in the United States. * * *
* * * * *
0
Par. 6. Section 1.250(b)-6 is amended by:
0
1. Revising the second sentence of paragraph (d)(4)(ii)(B)(2)(i).
0
2. Revising the third sentence of paragraph (d)(4)(ii)(C)(2)(i).
The revisions read as follows:
Sec. 1.250(b)-6 Related party transactions.
* * * * *
(d) * * *
(4) * * *
(ii) * * *
(B) * * *
(2) * * *
(i) * * * However, because 90 percent of R's operations that will
benefit from FC's service are located outside the United States under
paragraph (d)(3)(i) of this section, only 10 percent of the benefits of
FC's service are conferred on persons located within the United States.
* * *
* * * * *
(C) * * *
(2) * * *
(i) * * * Accordingly, because 10 percent of R's operations that
will benefit from FC's services are located within the United States,
persons located within the United States are treated as paying $10x
($100x x 0.10) for FC's services for purposes of applying the test in
paragraph (d)(2)(ii) of this section.
* * * * *
Sec. 1.1502-12 [Corrected]
0
Par. 7. On page 43112, in the third column, amendatory instruction 18
under Sec. 1.1502-12, is corrected to read as ``Redesignating newly
designated paragraphs (c)(7)(ii)(Q)(a) through (c) as paragraphs
(c)(7)(ii)(Q)(1) through (3)''.
Crystal Pemberton,
Senior Federal Register Liaison, Publications and Regulations Branch,
Legal Processing Division, Associate Chief Counsel, (Procedure and
Administration).
[FR Doc. 2020-19333 Filed 9-28-20; 8:45 am]
BILLING CODE 4830-01-P
