81 FR 11160 - Utility Allowances Submetering

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 42 (March 3, 2016)

Page Range		11160-11161
FR Document		2016-04618

This document contains proposed regulations that amend the utility allowance regulations concerning the low-income housing credit. The proposed regulations relate to the circumstances in which utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company. The proposed regulations extend those rules to situations in which a building owner sells to tenants energy that is produced from a renewable source and that is not delivered by a local utility company. The proposed regulations affect owners of low-income housing projects that claim the credit, the tenants in those low-income housing projects, and the State and local housing credit agencies that administer the credit. In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations concerning utility allowance regulations when the utility is generated from renewable sources and is not delivered by the local utility company. The text of those regulations also serves as the text of these proposed regulations. This document also contains a notice of a public hearing on these proposed regulations.

Federal Register, Volume 81 Issue 42 (Thursday, March 3, 2016)

[Federal Register Volume 81, Number 42 (Thursday, March 3, 2016)]
[Proposed Rules]
[Pages 11160-11161]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04618]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-123867-14]
RIN 1545-BM28


Utility Allowances Submetering

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

-----------------------------------------------------------------------

SUMMARY: This document contains proposed regulations that amend the 
utility allowance regulations concerning the low-income housing credit. 
The proposed regulations relate to the circumstances in which utility 
costs paid by a tenant based on actual consumption in a submetered 
rent-restricted unit are treated as paid by the tenant directly to the 
utility company. The proposed regulations extend those rules to 
situations in which a building owner sells to tenants energy that is 
produced from a renewable source and that is not delivered by a local 
utility company. The proposed regulations affect owners of low-income 
housing projects that claim the credit, the tenants in those low-income 
housing projects, and the State and local housing credit agencies that 
administer the

[[Page 11161]]

credit. In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations concerning 
utility allowance regulations when the utility is generated from 
renewable sources and is not delivered by the local utility company. 
The text of those regulations also serves as the text of these proposed 
regulations. This document also contains a notice of a public hearing 
on these proposed regulations.

DATES: Comments and requests for a public hearing must be received by 
May 2, 2016.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-123867-14), 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-
123867-14), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC, or sent electronically, via the Federal 
eRulemaking Portal at http://www.regulations.gov/ (IRS REG-123867-14).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
James Rider at (202) 317-4137; concerning submissions of comments and 
requests for a public hearing, Oluwafunmilayo 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 26 CFR part 1. The temporary 
regulations provide a special rule for a renewable-source utility 
arrangement in which the building owner does not pay a local utility 
company for the utility consumed by the tenant. The text of those 
regulations also serves as the text of these regulations. The preamble 
to the temporary regulations explains the temporary regulations and 
these proposed regulations.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. 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 
this regulation, and because the regulation does 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 has been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Requests for Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) or electronic comments that are submitted timely 
to the IRS as prescribed in this preamble under the ``ADDRESSES'' 
heading. The IRS and the Treasury Department request comments on all 
aspects of the proposed regulations. All comments that are submitted by 
the public will be available for public inspection and copying at 
www.regulations.gov or upon request. A public hearing will be scheduled 
if requested in writing by any person that timely submits 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 David Selig, Office of 
the Associate Chief Counsel (Passthroughs and Special Industries), IRS. 
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.

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 * * *

0
Par. 2. Section 1.42-10(e)(1)(i)(B) and (C), and (e)(1)(iv)(B) are 
revised to read as follows:


Sec.  1.42-10  Utility allowances.

* * * * *
    (e) * * * (1) * * *
    (i) * * *
    (B) [The text of the proposed amendments to Sec.  1.42-
10(e)(1)(i)(B) is the same as the text of Sec.  1.42-10T(e)(1)(i)(B) 
published elsewhere in this issue of the Federal Register].
    (C) [The text of the proposed amendments to Sec.  1.42-
10(e)(1)(i)(C) is the same as the text of Sec.  1.42-10T(e)(1)(i)(C) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (iv) * * *
    (B) [The text of the proposed amendments to Sec.  1.42-
10(e)(1)(iv)(B) is the same as the text of Sec.  1.42-10T(e)(1)(iv)(B) 
published elsewhere in this issue of the Federal Register].
* * * * *

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2016-04618 Filed 3-2-16; 8:45 am]
BILLING CODE 4830-01-P

11160 Federal Register / Vol. 81, No. 42 / Thursday, March 3, 2016 / Proposed Rules

Hepatitis B Virus Among Persons available at http://www.cms.gov/survey multiple patient use described in
Undergoing Blood Glucose Monitoring in certificationgeninfo/downloads/ paragraph (d)(1) of this section that was
Long-Term-Care Facilities—Mississippi, SCLetter10_28.pdf. in commercial distribution before May
North Carolina, and Los Angeles County, 37. Centers for Disease Control and
28, 1976, or that has, on or before [A
California, 2003–2004’’, MMWR Prevention (CDC), ‘‘Notes From the
Morbidity and Mortality Weekly Report, Field: Transmission of HBV Among DATE WILL BE ADDED 90 DAYS
2005; 54(09):220–223. (Available at: Assisted-Living-Facility Residents— AFTER DATE OF PUBLICATION OF A
http://www.cdc.gov/mmwr/preview/ Virginia, 2012’’, MMWR Morbidity and FUTURE FINAL ORDER CALLING FOR
mmwrhtml/mm5409a2.htm.) Mortality Weekly Report, 2013; PMAs IN THE FEDERAL REGISTER OR
28. Thompson, N.D. and J.F. Perz, 62(19):389. (Available at: http://www. 30 MONTHS AFTER DATE OF
‘‘Eliminating the Blood: Ongoing cdc.gov/mmwr/preview/mmwrhtml/ PUBLICATION OF A FUTURE FINAL
Outbreaks of Hepatitis B Virus Infection mm6219a4.htm?s_cid=mm6219a4_w.) ORDER RECLASSSIFYING INTO
and the Need for Innovative Glucose 38. Desenclos, J.C., M. Bourdiol-Razes, B.
CLASS III, WHICHEVER IS LATER],
Monitoring Technologies’’, Journal of Rolin, et al., ‘‘Hepatitis C in a Ward for
Diabetes Science and Technology, 2009; Cystic Fibrosis and Diabetic Patients: been found to be substantially
3(2):283–288. Possible Transmission by Spring-Loaded equivalent to a multiple use blood
29. Thompson, N.D., V. Barry, K. Alelis, et Finger-Stick Devices for Self-Monitoring lancet for multiple patient use described
al., ‘‘Evaluation of the Potential for of Capillary Blood Glucose’’, Infection in paragraph (d)(1) of this section that
Bloodborne Pathogen Transmission Control and Hospital Epidemiology, was in commercial distribution before
Associated With Diabetes Care Practices 2001; 22(11):701–707. May 28, 1976. Any other multiple use
in Nursing Homes and Assisted Living 39. De Schrijver, K., I. Maes, P. Van Damme, blood lancet for multiple patient use
Facilities, Pinellas County’’, Journal of et al., ‘‘An Outbreak of Nosocomial shall have an approved PMA or a
the American Geriatrics Society, 2010; Hepatitis B Virus Infection in a Nursing
58:914–918. declared completed PDP in effect before
Home for the Elderly in Antwerp
30. Patel, A.S., M.B. White-Comstock, D. (Belgium)’’, Acta Clinica Belgica, 2005; being placed in commercial
Woolard, et al., ‘‘Infection Control 60(2):63–69. distribution.
Practices in Assisted Living Facilities: A 40. Gotz, H.M., M. Schutten, G.J. Borsboom, Dated: February 25, 2016.
Response to Hepatitis B Virus Infection et al., ‘‘A Cluster of Hepatitis B Leslie Kux,
Outbreaks’’, Infection Control and Infections Associated With Incorrect Use
Hospital Epidemiology, 2009; 30:209– of a Capillary Blood Sampling Device in Associate Commissioner for Policy.
214. a Nursing Home in the Netherlands, [FR Doc. 2016–04579 Filed 3–2–16; 8:45 am]
31. Centers for Disease Control and 2007’’, Euro Surveillance, 2008; 13(7– BILLING CODE 4164–01–P
Prevention (CDC), ‘‘Multiple Outbreaks 9):1–5.
of Hepatitis B Virus Infection Related to
Assisted Monitoring of Blood Glucose List of Subjects in 21 CFR Part 878
Among Residents of Assisted Living DEPARTMENT OF THE TREASURY
Medical devices.
Facilities—Virginia, 2009–2011’’, MMWR
Therefore, under the Federal Food, Internal Revenue Service
Morbidity and Mortality Weekly Report,
2012; 61(19):339–343. (Available at: Drug, and Cosmetic Act, and under
http://www.cdc.gov/mmwr/preview/ authority delegated to the Commissioner 26 CFR Part 1
mmwrhtml/mm6119a3.htm?s_cid= of Food and Drugs, it is proposed that
mm6119a3_w.) 21 CFR part 878, as proposed to be [REG–123867–14]
32. Centers for Disease Control and amended elsewhere in this issue of the RIN 1545–BM28
Prevention (CDC), ‘‘Notes From the Federal Register, be further amended as
Field: Deaths From Acute Hepatitis B follows: Utility Allowances Submetering
Virus Infection Associated With Assisted
Blood Glucose Monitoring in an PART 878—GENERAL AND PLASTIC AGENCY: Internal Revenue Service (IRS),
Assisted-Living Facility—North SURGERY DEVICES Treasury.
Carolina, August–October, 2010,’’
MMWR Morbidity and Mortality Weekly ACTION: Notice of proposed rulemaking
■ 1. The authority citation for 21 CFR by cross-reference to temporary
Report, 2011; 60(6):182. (Available at: part 878 continues to read as follows:
http://www.cdc.gov/mmwr/preview/ regulations.
mmwrhtml/mm6006a5.htm?s_cid= Authority: 21 U.S.C. 351, 360, 360c, 360e,
mm6006a5_w.) 360j, 360l, 371. SUMMARY: This document contains
33. Schaefer, M.K., M. Jhung, M. Dahl, et al., ■ 2. Add paragraph (d)(3) to § 878.4850, proposed regulations that amend the
‘‘Infection Control Assessment of under subpart E, to read as follows: utility allowance regulations concerning
Ambulatory Surgical Centers’’, Journal of the low-income housing credit. The
the American Medical Association, 2010; § 878.4850 Blood Lancets. proposed regulations relate to the
303(22):2273–2279. circumstances in which utility costs
34. Thompson, N.D. and M.K. Schaefer,
* * * * *
(d) * * * paid by a tenant based on actual
‘‘‘Never Events’: Hepatitis B Outbreaks
and Patient Notifications Resulting From (3) Date PMA or notice of completion consumption in a submetered rent-
Unsafe Practices During Assisted of a PDP is required: A PMA or a notice restricted unit are treated as paid by the
Monitoring of Blood Glucose, 2009– of completion of a PDP is required to be tenant directly to the utility company.
2010’’, Journal of Diabetes Science and filed with the Food and Drug The proposed regulations extend those
Technology, 2011; 5(6):1396–1402. Administration on or before [A DATE rules to situations in which a building
35. Centers for Disease Control and WILL BE ADDED 90 DAYS AFTER owner sells to tenants energy that is
mstockstill on DSK4VPTVN1PROD with PROPOSALS

Prevention (CDC), ‘‘CDC Clinical DATE OF PUBLICATION OF A produced from a renewable source and
Reminder: Use of Fingerstick Devices on FUTURE FINAL ORDER CALLING FOR that is not delivered by a local utility
More Than One Person Poses Risk for
PMAs IN THE FEDERAL REGISTER OR company. The proposed regulations
Transmitting Bloodborne Pathogens’’,
available at http://www.cdc.gov/injection 30 MONTHS AFTER DATE OF affect owners of low-income housing
safety/Fingerstick-DevicesBGM.html. PUBLICATION OF A FUTURE FINAL projects that claim the credit, the
36. Centers for Medical Services (CMS), ORDER RECLASSSIFYING INTO tenants in those low-income housing
‘‘Survey and Certification CLASS III, WHICHEVER IS LATER] for projects, and the State and local housing
Memorandum’’ (August 27, 2010) any multiple use blood lancet for credit agencies that administer the

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Federal Register / Vol. 81, No. 42 / Thursday, March 3, 2016 / Proposed Rules 11161

credit. In the Rules and Regulations chapter 6) does not apply. Pursuant to (C) [The text of the proposed
section of this issue of the Federal section 7805(f) of the Internal Revenue amendments to § 1.42–10(e)(1)(i)(C) is
Register, the IRS is issuing temporary Code, this notice of proposed the same as the text of § 1.42–
regulations concerning utility allowance rulemaking has been submitted to the 10T(e)(1)(i)(C) published elsewhere in
regulations when the utility is generated Chief Counsel for Advocacy of the Small this issue of the Federal Register].
from renewable sources and is not Business Administration for comment * * * * *
delivered by the local utility company. on its impact on small business. (iv) * * *
The text of those regulations also serves (B) [The text of the proposed
Comments and Requests for Public
as the text of these proposed amendments to § 1.42–10(e)(1)(iv)(B) is
Hearing
regulations. This document also the same as the text of § 1.42–
contains a notice of a public hearing on Before these proposed regulations are 10T(e)(1)(iv)(B) published elsewhere in
these proposed regulations. adopted as final regulations, this issue of the Federal Register].
DATES: Comments and requests for a consideration will be given to any * * * * *
public hearing must be received by May written comments (a signed original and
eight (8) copies) or electronic comments John Dalrymple,
2, 2016.
ADDRESSES: Send submissions to:
that are submitted timely to the IRS as Deputy Commissioner for Services and
prescribed in this preamble under the Enforcement.
CC:PA:LPD:PR (REG–123867–14), Room
5203, Internal Revenue Service, P.O. ‘‘ADDRESSES’’ heading. The IRS and the [FR Doc. 2016–04618 Filed 3–2–16; 8:45 am]

Box 7604, Ben Franklin Station, Treasury Department request comments BILLING CODE 4830–01–P

Washington, DC 20044. Submissions on all aspects of the proposed
may be hand-delivered Monday through regulations. All comments that are
Friday between the hours of 8 a.m. and submitted by the public will be DEPARTMENT OF HOMELAND
4 p.m. to CC:PA:LPD:PR (REG–123867– available for public inspection and SECURITY
14), Courier’s Desk, Internal Revenue copying at www.regulations.gov or upon
request. A public hearing will be Coast Guard
Service, 1111 Constitution Avenue NW.,
Washington, DC, or sent electronically, scheduled if requested in writing by any
person that timely submits comments. If 33 CFR Part 165
via the Federal eRulemaking Portal at
http://www.regulations.gov/ (IRS REG– a public hearing is scheduled, notice of [Docket Number USCG–2016–0115]
123867–14). the date, time, and place for the public
hearing will be published in the Federal RIN 1625–AA00
FOR FURTHER INFORMATION CONTACT:
Register.
Concerning the proposed regulations, Safety Zone; Xterra Swim, Myrtle
James Rider at (202) 317–4137; Drafting Information Beach, SC Intracoastal Waterway;
concerning submissions of comments The principal author of these Myrtle Beach, SC
and requests for a public hearing, regulations is David Selig, Office of the
Oluwafunmilayo Taylor at (202) 317– AGENCY: Coast Guard, DHS.
Associate Chief Counsel (Passthroughs ACTION: Notice of proposed rulemaking.
6901 (not toll-free numbers). and Special Industries), IRS. However,
SUPPLEMENTARY INFORMATION: other personnel from the IRS and the SUMMARY: The Coast Guard proposes to
Background Treasury Department participated in issue a temporary safety zone on the
their development. waters of the Intracoastal Waterway in
Temporary regulations in the Rules Myrtle Beach, South Carolina. The
and Regulations section of this issue of List of Subjects in 26 CFR Part 1
Xterra Swim is scheduled to take place
the Federal Register amend 26 CFR part Income taxes, Reporting and on Sunday, April 24, 2016. The
1. The temporary regulations provide a recordkeeping requirements. temporary safety zone is necessary for
special rule for a renewable-source the safety of the swimmers, participant
utility arrangement in which the Proposed Amendments to the
Regulations vessels, spectators, and the general
building owner does not pay a local public during the event. The temporary
utility company for the utility Accordingly, 26 CFR part 1 is safety zone will restrict vessel traffic in
consumed by the tenant. The text of proposed to be amended as follows: a portion of the Intracoastal Waterway,
those regulations also serves as the text preventing non-participant vessels from
of these regulations. The preamble to PART 1—INCOME TAXES
entering, transiting through, anchoring
the temporary regulations explains the in, or remaining within the regulated
temporary regulations and these ■ Paragraph 1. The authority citation
for part 1 continues to read in part as area unless authorized by the Captain of
proposed regulations. the Port Charleston or a designated
follows:
Special Analyses representative.
Authority: 26 U.S.C. 7805 * * *
Certain IRS regulations, including this DATES: Comments and related material
■ Par. 2. Section 1.42–10(e)(1)(i)(B) and
one, are exempt from the requirements (C), and (e)(1)(iv)(B) are revised to read must be received by the Coast Guard on
of Executive Order 12866, as as follows: or before April 4, 2016.
supplemented and reaffirmed by ADDRESSES: You may submit comments
Executive Order 13563. Therefore, a § 1.42–10 Utility allowances. identified by docket number USCG–
mstockstill on DSK4VPTVN1PROD with PROPOSALS

regulatory assessment is not required. It * * * * * 2016–0115 using the Federal
also has been determined that section (e) * * * (1) * * * eRulemaking Portal at http://
553(b) of the Administrative Procedure (i) * * * www.regulations.gov. See the ‘‘Public
Act (5 U.S.C. chapter 5) does not apply (B) [The text of the proposed Participation and Request for
to this regulation, and because the amendments to § 1.42–10(e)(1)(i)(B) is Comments’’ portion of the
regulation does not impose a collection the same as the text of § 1.42– SUPPLEMENTARY INFORMATION section for
of information on small entities, the 10T(e)(1)(i)(B) published elsewhere in further instructions on submitting
Regulatory Flexibility Act (5 U.S.C. this issue of the Federal Register]. comments.

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Document Created: 2016-03-03 03:50:59
Document Modified: 2016-03-03 03:50:59

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of proposed rulemaking by cross-reference to temporary regulations.
Dates		Comments and requests for a public hearing must be received by May 2, 2016.
Contact		Concerning the proposed regulations, James Rider at (202) 317-4137; concerning submissions of comments and requests for a public hearing, Oluwafunmilayo Taylor at (202) 317-6901 (not toll-free numbers).
FR Citation		81 FR 11160
RIN Number		1545-BM28
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

81 FR 11160 - Utility Allowances Submetering

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 42 (March 3, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service