Additional First Year Depreciation Deduction
| Published date | 10 November 2020 |
| Citation | 85 FR 71587 |
| Record Number | 2020-24026 |
| Section | Proposed rules |
| Court | Internal Revenue Service,Treasury Department |
71587
Federal Register / Vol. 85, No. 218 / Tuesday, November 10, 2020 / Proposed Rules
the 6.6-mile (decreased from 7-mile)
radius to 16.8 (increased from 16.6)
miles southwest of the airport; and
removing the city associated with the
airport to comply with changes to FAA
Order 7400.2M, Procedures for
Handling Airspace Matters.
This action is the result of an airspace
review caused by the decommissioning
of the Kankakee VOR, which provided
navigation information for the
instrument procedures this airport, as
part of the VOR MON Program.
Class E airspace designations are
published in paragraph 6005 of FAA
Order 7400.11E, dated July 21, 2020,
and effective September 15, 2020, which
is incorporated by reference in 14 CFR
71.1. The Class E airspace designations
listed in this document will be
published subsequently in the Order.
FAA Order 7400.11, Airspace
Designations and Reporting Points, is
published yearly and effective on
September 15.
Regulatory Notices and Analyses
The FAA has determined that this
regulation only involves an established
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current, is non-controversial and
unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a
‘‘significant regulatory action’’ under
Executive Order 12866; (2) is not a
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is so minimal. Since this is a
routine matter that will only affect air
traffic procedures and air navigation, it
is certified that this rule, when
promulgated, would not have a
significant economic impact on a
substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
Environmental Review
This proposal will be subject to an
environmental analysis in accordance
with FAA Order 1050.1F,
‘‘Environmental Impacts: Policies and
Procedures’’ prior to any FAA final
regulatory action.
List of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
The Proposed Amendment
Accordingly, pursuant to the
authority delegated to me, the Federal
Aviation Administration proposes to
amend 14 CFR part 71 as follows:
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
■1. The authority citation for 14 CFR
part 71 continues to read as follows:
Authority: 49 U.S.C. 106(f), 106(g); 40103,
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
1959–1963 Comp., p. 389.
§ 71.1 [Amended]
■2. The incorporation by reference in
14 CFR 71.1 of FAA Order 7400.11E,
Airspace Designations and Reporting
Points, dated July 21, 2020, and
effective September 15, 2020, is
amended as follows:
Paragraph 6005 Class E Airspace Areas
Extending Upward from 700 Feet or More
Above the Surface of the Earth.
* * * * *
AGL IL E5 Kankakee, IL [Amended]
Greater Kankakee Airport, IL
(Lat. 41°04′17″ N, long. 87°50′47″ W)
Greater Kankakee: RWY 04–LOC
(Lat. 41°05′00″ N, long. 87°50′12″ W)
That airspace extending upward from 700
feet above the surface within a 6.6-mile
radius of Greater Kankakee Airport, and
within 4 miles each side of the 214° bearing
from the Greater Kankakee: RWY 04–LOC
extending from the 6.6-mile radius of the
airport to 16.8 miles southwest of the airport.
Issued in Fort Worth, Texas, on November
4, 2020.
Martin A. Skinner,
Acting Manager, Operations Support Group,
ATO Central Service Center.
[FR Doc. 2020–24878 Filed 11–9–20; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–106808–19]
RIN 1545–BP32
Additional First Year Depreciation
Deduction
AGENCY
: Internal Revenue Service (IRS),
Treasury.
ACTION
: Partial withdrawal of a notice of
proposed rulemaking.
SUMMARY
: This document withdraws a
portion of a notice of proposed
rulemaking published in the Federal
Register on September 24, 2019. The
withdrawn portion relates to the extent
to which a partner is deemed to have a
depreciable interest in property held by
a partnership.
DATES
: Section 1.168(k)–2(b)(3)(iii)(B)(5)
of proposed rules (REG–106808–19)
published in the Federal Register on
September 24, 2019 (84 FR 50152) is
withdrawn effective January 11, 2021].
FOR FURTHER INFORMATION CONTACT
:
Elizabeth R. Binder at (202) 317–4869 or
Kathleen Reed at (202) 317–4660 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION
:
Background
On August 8, 2018, the Department of
the Treasury (Treasury Department) and
the IRS published a notice of proposed
rulemaking (REG–104397–18) in the
Federal Register (83 FR 39292)
containing proposed regulations under
section 168(k) (2018 Proposed
Regulations). After full consideration of
the comments received on the 2018
Proposed Regulations and the testimony
heard at the public hearing on
November 28, 2018, the Treasury
Department and the IRS published final
regulations in the Federal Register as
TD 9874 on September 24, 2019 (84 FR
50208) (the 2019 Final Regulations)
adopting the 2018 Proposed Regulations
with modifications in response to such
comments and testimony.
Concurrently with the publication of
the 2019 Final Regulations, the Treasury
Department and the IRS published an
additional notice of proposed
rulemaking (REG–106808–19) in the
Federal Register (84 FR 50152)
withdrawing certain provisions of the
2018 Proposed Regulations and
proposing additional guidance under
section 168(k) (2019 Proposed
Regulations).
The 2019 Proposed Regulations
include § 1.168(k)–2(b)(3)(iii)(B)(5),
which addresses the extent to which a
partner is deemed to have a depreciable
interest in property held by a
partnership. This document withdraws
§ 1.168(k)–2(b)(3)(iii)(B)(5) of the 2019
Proposed Regulations for the reason
stated in the Summary of Comments
and Explanation of Revisions section of
the final regulations published in the
Federal Register by the Treasury
Department and the IRS as TD 9916 on
November 10, 2020.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Partial Withdrawal of a Notice of
Proposed Rulemaking
Accordingly, under the authority of
26 U.S.C. 7805, § 1.168(k)–
2(b)(3)(iii)(B)(5) of the notice of
proposed rulemaking (REG–106808–19)
published in the Federal Register on
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Federal Register / Vol. 85, No. 218 / Tuesday, November 10, 2020 / Proposed Rules
1
15 U.S.C. 6701 note.
2
Terrorism Risk Insurance Extension Act of 2005,
Public Law 109–144, 119 Stat. 2660; Terrorism Risk
Insurance Program Reauthorization Act of 2007,
Public Law 110–160, 121 Stat.1839; Terrorism Risk
Insurance Program Reauthorization Act of 2015,
Public Law 114–1, 129 Stat. 3.
3
Public Law 116–94, 133 Stat. 2534, Title V.
4
TRIA, sec. 103(e)(1)(B)(vi).
5
GAO, Terrorism Risk Insurance: Program
Changes Have Reduced Federal Fiscal Exposure
(GAO–20–348) (April 2020), https://www.gao.gov/
assets/710/706243.pdf.
6
Id. at 18–19.
7
Id. at 19.
8
Guidance Concerning Stand-Alone Cyber
Liability Insurance Policies Under the Terrorism
Risk Insurance Program, 81 FR 95312 (Dec. 27,
2016) (Cyber Guidance), https://
www.federalregister.gov/documents/2016/12/27/
2016-31244/guidance-concerning-stand-alone-
September 24, 2019 (84 FR 50152) is
withdrawn.
Sunita Lough,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2020–24026 Filed 11–5–20; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
31 CFR Part 50
Terrorism Risk Insurance Program;
Updated Regulations in Light of the
Terrorism Risk Insurance Program
Reauthorization Act of 2019, and for
Other Purposes
AGENCY
: Departmental Offices,
Department of the Treasury.
ACTION
: Notice of proposed rulemaking
and request for comments.
SUMMARY
: The Department of the
Treasury (Treasury) is issuing proposed
rules to implement technical changes to
the Terrorism Risk Insurance Program
(TRIP or Program) required by the
Terrorism Risk Insurance Program
Reauthorization Act of 2019 (2019
Reauthorization Act), and to update
links to the Program’s website, where
additional information relating to the
administration of the Program is located
for public reference. In addition,
Treasury is proposing rules to: Clarify
the manner in which Treasury will
calculate ‘‘property and casualty
insurance losses’’ for purposes of
considering certification of an act of
terrorism, and ‘‘insured losses’’ when
administering the financial sharing
mechanisms under the Program,
including the Program Trigger and
Program Cap; and incorporate into the
Program rules prior guidance provided
by Treasury in connection with stand-
alone cyber insurance under the
Program. Treasury also seeks further
public comment concerning the
certification process under the Program,
and the participation of captive insurers
in the Program, to facilitate further
analysis and study by the Federal
Insurance Office (FIO) of the Program
and potential future rulemakings in
these areas.
DATES
: Comments must be in writing
and received by January 11, 2021. Early
submissions are encouraged.
ADDRESSES
: Please submit comments
electronically through the Federal
eRulemaking Portal: http://
www.regulations.gov, or by mail (if hard
copy, preferably an original and two
copies) to the Federal Insurance Office,
Attention: Richard Ifft, Room 1410 MT,
Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington,
DC 20220. Because postal mail may be
subject to processing delay, it is
recommended that comments be
submitted electronically. All comments
should be captioned with ‘‘2019 TRIA
Reauthorization Proposed Rules
Comments.’’ Please include your name,
organizational affiliation, address, email
address and telephone number in your
comment. Where appropriate, a
comment should include a short
Executive Summary (no more than five
single-spaced pages).
In general, comments received will be
posted on http://www.regulations.gov
without change, including any business
or personal information provided.
Comments received, including
attachments and other supporting
materials, will be part of the public
record and subject to public disclosure.
Do not enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT
:
Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, 202–622–2922, or
Lindsey Baldwin, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, 202–622–3220.
SUPPLEMENTARY INFORMATION
:
I. Background
The Terrorism Risk Insurance Act
(TRIA)
1
was enacted following the
attacks on September 11, 2001 to
address disruptions in the market for
terrorism risk insurance, to help ensure
the continued availability and
affordability of commercial property
and casualty insurance for terrorism
risk, and to help private markets
stabilize and build insurance capacity to
absorb any future losses for terrorism
events. TRIA requires insurers to ‘‘make
available’’ terrorism risk insurance for
commercial property and casualty losses
resulting from certified acts of terrorism
(insured losses) and provides for shared
public and private compensation for
such insured losses. Under TRIA, the
Secretary of the Treasury administers
the Program, with the assistance of FIO.
The Program was originally scheduled
to terminate on December 31, 2005, but
it was extended several times between
2005 and 2015.
2
Most recently, on
December 20, 2019, President Trump
signed into law the 2019
Reauthorization Act.
3
Section 502 of
that Act extends the Program’s
termination date to December 31, 2027.
The risk-sharing mechanisms for
calendar year 2020 remain constant for
the entire reauthorization period, and
are not modified by the 2019
Reauthorization Act.
4
Treasury is issuing this notice of
proposed rulemaking to align certain
dates in the Program regulations with
the 2019 Reauthorization Act. Treasury
is also taking this opportunity to update
links to the Program website in the
regulations.
Treasury is also proposing several
changes in response to a recent report
by the Government Accountability
Office (GAO) addressing certain sources
of risk and uncertainty related to the
Program.
5
In the report, GAO indicated
that, based upon its engagement with
stakeholders during the preparation of
the report, some uncertainty may exist
about how Treasury would factor in
policyholder retention amounts in
calculating ‘‘property and casualty
insurance losses’’ versus ‘‘insured
losses’’ to determine the Program
certification threshold, Program Trigger,
and Program Cap.
6
GAO recommended
that Treasury provide further
clarification to ‘‘prevent uncertainty in
the insurance market and potential
litigation following a terrorist event that
could delay insurance payments and
economic recovery.’’
7
Treasury agrees
that the reduction of uncertainty is an
important goal. Accordingly, Treasury
proposes certain rule changes designed
to clarify how Treasury will apply these
defined terms to effectuate the intent
and goals of the Program.
Treasury is also proposing certain
changes based on previous Treasury
guidance regarding cyber coverage. In
December 2016, Treasury issued interim
guidance confirming that certain stand-
alone cyber coverage written in a TRIP-
eligible line of insurance was within the
scope of the Program, such that insurers
were obligated to adhere to the ‘‘make
available’’ and disclosure requirements
under TRIA for such coverage.
8
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