This temporary regulation provides
rules for claiming the deduction allowable under section 179B of
the Internal Revenue Code for qualified capital costs paid or
incurred by a small business refiner. The temporary regulations
provide the time and manner for: (i) a small business refiner to
make the election to claim this deduction for the taxable year; and
(ii) a cooperative small business refiner to make the election to
allocate its deduction allowable under section 179B for the taxable
year to the cooperative owners and to provide the written notice,
as required by section 179B(e)(3), to the cooperative
owners.
We are requesting
emergency review of this submission and seek OMB approval by May
31, 2007. Section 179B was added to the Code by section 338(a) of
the American Jobs Creation Act of 2004 (AJCA) (October 22, 2004),
and is amended by section 1324 of the Energy Policy Act of 2005
(EPACT) (August 8, 2005). Although enacted in 2004, section 179B
applies to expenses paid or incurred after December 31, 2002, in
taxable years ending after December 31, 2002. The amendment by the
EPACT is effective as if included in the amendment made by section
338(a) of the AJCA. Accordingly, section 179B is effective
retroactively to taxable years beginning in 2003. The statute of
limitations for taxpayers to amend their original 2003 federal tax
returns will expire for most small businesses during 2007, as early
as on June 15, 2007. Unless guidance is available before that date,
small business refiners will not be able to take the tax benefit
available to them for 2003. We do not have OMB approval for the
collection of information associated with this election. That
election was added to section 179B by the Energy Policy Act of 2005
(August 8, 2005), retroactive to the 2003 taxable year. We waited
1.75 years to issue guidance because we were initially advised that
there were no cooperatives eligible for this election; however, we
recently learned that there a few eligible cooperatives. Therefore,
we respectfully request that the consideration of this submission
and provision of an OMB number be completed by May 31, 2007. Any
other result will be detrimental to the taxpaying public and will
interfere with the mission of the IRS.
US Code:
26
USC 179B Name of Law: Deduction for captial costs incurred in
complying with environmental protection agency sulfur regula
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
SUPPORTING STATEMENT.doc
Capital Costs Incurred to Comply With EPA Sulfur Regulations