80 FR 18171 - Allocation of Controlled Group Research Credit

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 64 (April 3, 2015)

This document contains proposed regulations relating to the allocation of the group credit. The proposed regulations will affect certain taxpayers claiming the credit. In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations providing guidance relating to the allocation of the credit for increasing research activities (research credit) to corporations and trades or businesses under common control (controlled groups). The temporary regulations also contain rules relating to the allocation of the railroad track maintenance credit (RTMC) and the election for a reduced research credit. The text of the temporary regulations also serves as the text of these proposed regulations.

[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Proposed Rules]
[Pages 18171-18172]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07380]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-133489-13]
RIN 1545-BL76


Allocation of Controlled Group Research Credit

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and notice of public hearing.

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SUMMARY: This document contains proposed regulations relating to the 
allocation of the group credit. The proposed regulations will affect 
certain taxpayers claiming the credit. In the Rules and Regulations 
section of this issue of the Federal Register, the IRS is issuing 
temporary regulations providing guidance relating to the allocation of 
the credit for increasing research activities (research credit) to 
corporations and trades or businesses under common control (controlled 
groups). The temporary regulations also contain rules relating to the 
allocation of the railroad track maintenance credit (RTMC) and the 
election for a reduced research credit. The text of the temporary 
regulations also serves as the text of these proposed regulations.

DATES: Comments and requests for a public hearing must be received by 
July 2, 2015.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-133489-13), Room 
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
133489-13), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC. Submissions may also be sent electronically 
via the Federal eRulemaking Portal at www.regulations.gov (IRS REG-
133489-13). The public hearing will be held in the IRS Auditorium, 
Internal Revenue Building, 1111 Constitution Avenue NW., Washington, 
DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, James A. 
Holmes, (202) 317-4137; concerning submission of comments, the hearing, 
and/or to be placed on the building access list to attend the hearing, 
Oluwafunmilayo (Funmi) Taylor at (202) 317-6901 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 41. The temporary regulations amend 
Sec. Sec.  1.41-6,1.45G-1, and 1.280C-4. The regulations are being 
prescribed to update the regulations in a manner that is consistent 
with the amendments made to sections 41(f)(1)(A)(ii) and 
41(f)(1)(B)(ii) in Section 301(c) of the Act. The text of the temporary 
regulations also serves as the text of these proposed regulations. The 
preamble to those regulations explains the amendments.

Special Analyses

    It has been determined that this notice of proposed rulemaking 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) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations, and 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 Internal Revenue Code, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on their 
impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS. The Treasury Department and the IRS request comments on all 
aspects of the proposed rules. All comments will be available at 
www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person that timely submits written comments. If a public hearing is 
scheduled, notice of the date, time, and place for the public hearing 
will be published in the Federal Register.

Drafting Information

    The principal author of these regulations is James A. Holmes, 
Office of Associate Chief Counsel (Passthroughs and Special 
Industries), IRS. However, other personnel from the IRS and Treasury 
Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be 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 * * *

    Section 1.41-6 also issued under 26 U.S.C. 41(f)(1) * * *
    Section 1.45G-1 also issued under 26 U.S.C. 45G(e)(2) * * *
    Section 1.280C-4 also issued under 26 U.S.C. 280C(c)(4) * * *
0
Par. 2. Section 1.41-6 is amended to read as follows:


Sec.  1.41-6.  Aggregation of expenditures.

    [The text of the amendments to this proposed section is the same as 
the text of Sec.  1.41-6T published elsewhere in this issue of the 
Federal Register].
0
Par. 3. Section 1.45G-1 is amended to read as follows:


Sec.  1.45G-1.  Railroad track maintenance credit.

    [The text of the amendments to this proposed section is the same as 
the text

[[Page 18172]]

of Sec.  1.45G-1T published elsewhere in this issue of the Federal 
Register].
0
Par. 4. Section 1.280C-4 is amended to read as follows.


Sec.  1.280C-4.  Credit for increasing research activities.

    [The text of the amendments to this proposed section is the same as 
the text of Sec.  1.280C-4T published elsewhere in this issue of the 
Federal Register].

John M. Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2015-07380 Filed 4-2-15; 8:45 am]
 BILLING CODE 4830-01-P