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retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
Federal tax returns and tax return
information are confidential pursuant to
26 U.S.C. 6103.

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9146]
RIN 1545–BD35

Section 179 Elections
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
AGENCY:

This document contains
temporary regulations relating to the
election to expense the cost of property
subject to section 179 of the Internal
Revenue Code. The regulations reflect
changes to the law made by section 202
of the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The text of
these temporary regulations also serves
as the text of the proposed regulations
set forth in the notice of proposed
rulemaking on this subject in the
Proposed Rules section in this issue of
the Federal Register.
DATES: Effective Dates: These
regulations are effective August 4, 2004.
Applicability Dates: For dates of
applicability, see § 1.179–6T.
FOR FURTHER INFORMATION CONTACT:
Winston H. Douglas, (202) 622–3110
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:

Paperwork Reduction Act
These temporary regulations are being
issued without prior notice and public
procedure pursuant to the
Administrative Procedure Act (5 U.S.C.
553). For this reason, the collection of
information contained in these
regulations has been reviewed and,
pending receipt and evaluation of
public comments, approved by the
Office of Management and Budget under
control number 1545–1201. Responses
to this collection of information are
required to obtain a benefit.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
For further information concerning
this collection of information, where to
submit comments on the collection of
information and the accuracy of the
estimated burden, and suggestions for
reducing this burden, please refer to the
preamble to the cross-referencing notice
of proposed rulemaking published in
the Proposed Rules section in this issue
of the Federal Register.
Books or records relating to a
collection of information must be

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Background
This document contains amendments
to 26 CFR part 1 to provide regulations
under section 179 of the Internal
Revenue Code (Code). These
amendments reflect the changes to the
law made by section 202 of the Jobs and
Growth Tax Relief Reconciliation Act of
2003, Public Law 108–27 (117 Stat.
752).
Prior to the enactment of the Jobs and
Growth Tax Relief Reconciliation Act of
2003 (JGTRRA) (117 Stat. 752), section
179 provided that, in lieu of
depreciation under section 168 (MACRS
depreciation) for taxable years
beginning in 2003 and thereafter, a
taxpayer with a sufficiently small
amount of current year investment in
section 179 property could elect to
deduct up to $25,000 of the cost of
section 179 property placed in service
by the taxpayer for the taxable year. In
general, section 179 property was
defined as depreciable tangible personal
property that was purchased for use in
the active conduct of a trade or
business. The $25,000 amount was
reduced (but not below zero) by the
amount by which the cost of section 179
property placed in service by the
taxpayer during the taxable year
exceeded $200,000. The election under
section 179 generally was made on the
taxpayer’s original Federal tax return for
the taxable year to which the election
related, required specific information to
be provided at the time the election was
made, and could only be revoked with
the consent of the Commissioner of
Internal Revenue.
The changes made to section 179 by
section 202 of JGTRRA are applicable
for section 179 property placed in
service by a taxpayer in taxable years
beginning after 2002 and before 2006.
Section 202 of JGTRRA expands the
definition of section 179 property to
include off-the-shelf computer software
(a category of intangible property) and
increases the $25,000 and $200,000
amounts to $100,000 and $400,000,
respectively. In addition, the $100,000
and $400,000 amounts are indexed
annually for inflation for taxable years
beginning after 2003 and before 2006.
JGTRRA also modifies section 179 to
provide that any election or
specification for taxable years beginning
after 2002 and before 2006 may be
revoked by the taxpayer with respect to
any section 179 property, and that such

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revocation, once made, shall be
irrevocable. The conference agreement
(H.R. Conf. Rep. No. 108–126, at 35
(2003)) states that a taxpayer may make
or revoke an expensing election on an
amended Federal tax return without the
consent of the Commissioner.
Explanation of Provisions
For taxable years beginning after 2002
and before 2006, the regulations reflect
the change to section 179(d)(1) by
including off-the-shelf computer
software in the definition of section 179
property, and the changes to sections
179(b)(1) and (2) by increasing the
respective amounts to $100,000 and
$400,000. The regulations also provide
guidance for making and revoking
elections under section 179 for those
taxable years. Several examples are
provided to illustrate how taxpayers
may make and revoke their section 179
elections. Additionally, each year the
IRS will publish the annual inflation
indexed amounts for sections 179(b)(1)
and (2). For the inflation indexed
amounts for taxable years beginning in
2004, see Rev. Proc. 2003–85, 2003–49
I.R.B. 1184.
Making or Revoking Section 179
Elections on Amended Federal Tax
Returns
Prior to the enactment of JGTRRA, an
election to expense the cost of property
under section 179 generally was made
on the taxpayer’s original federal tax
return for the taxable year to which the
election applied. An election could only
be revoked with the consent of the
Commissioner. The section 179
regulations (pre-JGTRRA) provided that
a revocation of an election would only
be granted in extraordinary
circumstances.
Small business taxpayers are often
unaware of the advantages or
disadvantages of section 179 expensing.
Some taxpayers may not have been
aware of the section 179 election until
after filing an original Federal tax
return. In addition, making the section
179 election is not always to a
taxpayer’s advantage. For example, the
section 179 election may prevent the
taxpayer from fully using exemptions
and deductions, reduce a taxpayer’s
coverage under the social security
system, and make various tax credits
unusable. See Internal Revenue Service,
Publication 946, ‘‘How to Depreciate
Property (For use in preparing 2003
Returns)’’, p. 14, and ‘‘General
Explanations of the Administration’s
Fiscal Year 2004 Revenue Proposals’’,
Department of the Treasury, p. 23
(February 2003).

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Federal Register / Vol. 69, No. 149 / Wednesday, August 4, 2004 / Rules and Regulations
Permitting taxpayers to make or
revoke section 179 elections on
amended Federal tax returns without
the consent of the Commissioner reflects
Congress’s intent ‘‘that the process of
making and revoking section 179
elections should be made simpler and
more efficient for taxpayers.’’ H.R. Rep.
No. 108–94, at 25 and 26 (2003) and S.
Prt. No. 108–26, at 10 (2003). Such a
process will provide flexibility to small
business taxpayers in determining
whether the section 179 election is to
their advantage or disadvantage.
Section 1.179–5T(c)(1) establishes the
time period during which a taxpayer
may make or revoke a section 179
election on an amended Federal tax
return.
Section 1.179–5T(c)(2) provides that a
section 179 election made on an
amended Federal tax return must
specify the item of section 179 property
to which the election applies and the
portion of the cost of each such item to
be taken into account under section 179.
Further, if a taxpayer elected to expense
only a portion of the cost basis of an
item of section 179 property for a
particular taxable year (or did not elect
to expense any portion of the cost basis
of an item of section 179 property),
§ 1.179–5T(c)(2) allows the taxpayer to
file an amended Federal tax return and
expense any portion of the cost basis of
an item of section 179 property that was
not expensed pursuant to a prior section
179 election. Any such increase in the
amount expensed under section 179 is
not deemed to be a revocation of the
prior election for that particular taxable
year.
Section 1.179–5T(c)(3) provides that
any election under section 179, or
specification of such election, for any
taxable year beginning after 2002 and
before 2006 for any item of section 179
property may be revoked by the
taxpayer on an amended Federal tax
return without the Commissioner’s
consent and that such revocation, once
made, is irrevocable. For this purpose,
a specification refers to both the
selected specific item of section 179
property subject to a section 179
election and a selected dollar amount
allocable to the specific item of section
179 property. In addition, § 1.179–
5T(c)(3) describes the circumstances
under which partial and entire
revocations of elections and
specifications occur. Section 1.179–
5T(c)(3) also discusses the effect of a
revocation of an election under section
179 or a revocation of any specification
of such election.
Section 1.179–5T(c)(4) sets forth
examples illustrating the rules of
paragraphs (c)(1), (2), and (3).

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Section 1.179–6T provides the
applicability dates for the provisions of
§§ 1.179–2T, 1.179–4T, and 1.179–5T.

§ 1.179–0 Table of contents for section 179
expensing rules.

Special Analyses
It has been determined that this
Treasury decision 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. For the
applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6), refer
to the Special Analyses section of the
preamble to the cross-reference notice of
proposed rulemaking published in the
proposed rules section in this issue of
the Federal Register. Pursuant to
section 7805(f) of the Code, these
temporary regulations will be submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for
comment on its impact on small
business.

§ 1.179–2 Limitations on amount subject
to section 179 election.

Drafting Information
The principal author of these
regulations is Winston H. Douglas,
Office of Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated
in their development.

§ 1.179–5
election.

List of Subjects
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations

*

*

*

*

*

*

*

*

*

*

*

*

(b) * * *
(1) [Reserved].
(2) [Reserved].

*

*

*

§ 1.179–2T Limitations on amount subject
to section 179 election (temporary).
(a) [Reserved].
(b) Dollar Limitation.
(1) In general.
(2) Excess section 179 property.
(3) through (d) [Reserved].

*

*

*

*

*

§ 1.179–4 Definitions.
(a) Section 179 property [Reserved].

*

*

*

*

*

§ 1.179–4T Definitions.
(a) Section 179 property.
(b) through (f) [Reserved].

*

*

Time and manner of making

*

*

*

(c) Section 179 property placed in service
by the taxpayer in a taxable year beginning
after 2002 and before 2006.
§ 1.179–5T Time and manner of making
election.
(a) and (b) [Reserved].
(c) Section 179 property placed in service
by the taxpayer in a taxable year beginning
after 2002 and before 2006.

*

*

*

*

*

§ 1.179–6T Effective dates.
(a) In general.
(b) Section 179 property placed in service
by the taxpayer in a taxable year beginning
after 2002 and before 2006.

■

■ Par. 3. Section 1.179–2 is amended by
revising paragraphs (b)(1) and (b)(2)(ii) to
read as follows:

PART 1—INCOME TAXES

§ 1.179–2 Limitations on amount subject
to section 179 election.

Paragraph 1. The authority citation for
part 1 continues to read in part as
follows:

*

Accordingly, 26 CFR part 1 is amended
as follows:

■

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.179–0 is amended as
follows:
■ 1. Paragraphs (b)(1) and (b)(2) of
§ 1.179–2 are revised.
■ 2. Section 1.179–2T is added.
■ 3. Paragraph (a) of § 1.179–4 is revised.
■ 4. Section 1.179–4T is added.
■ 5. Paragraph (c) of § 1.179–5 is added.
■ 6. Section 1.179–5T is added.
■ 7. Section 1.179–6T is added.
The revisions and additions read as
follows:
■

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*
*
*
*
(b) * * *
(1) [Reserved]. For further guidance,
see § 1.179–2T(b)(1).
(2) * * *
(i) * * *
(ii) [Reserved]. For further guidance,
see § 1.179–2T(b)(2)(ii).
*
*
*
*
*
■ Par. 4. Section 1.179–2T is added to
read as follows:
§ 1.179–2T Limitations on amount subject
to section 179 election (temporary).

(a) [Reserved]. For further guidance,
see § 1.179–2(a).

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Federal Register / Vol. 69, No. 149 / Wednesday, August 4, 2004 / Rules and Regulations

(b) Dollar limitation—(1) In general.
The aggregate cost of section 179
property that a taxpayer may elect to
expense under section 179 for any
taxable year beginning in 2003 and
thereafter is $25,000 ($100,000 in the
case of taxable years beginning after
2002 and before 2006 under section
179(b)(1), indexed annually for inflation
under section179(b)(5) for taxable years
beginning after 2003 and before 2006),
reduced (but not below zero) by the
amount of any excess section 179
property (described in paragraph (b)(2)
of this section) placed in service during
the taxable year.
(b)(2) and (b)(2)(i) [Reserved]. For
further guidance, see § 1.179–2(b)(2) and
(b)(2)(i).
(ii) $200,000 ($400,000 in the case of
taxable years beginning after 2002 and
before 2006 under section 179(b)(2),
indexed annually for inflation under
section 179(b)(5) for taxable years
beginning after 2003 and before 2006).
(b)(3) through (d) [Reserved]. For
further guidance, see § 1.179–2(b)(3)
through (d).
■ Par. 5. Section 1.179–4 is amended by
revising paragraph (a) to reads as follows:
§ 1.179–4

Definitions.

*

*
*
*
*
(a) [Reserved]. For further guidance,
see § 1.179–4T(a).
*
*
*
*
*
■ Par. 6. Section 1.179–4T is added to
read as follows:
§ 1.179–4T

Definitions (temporary).

The following definitions apply for
purposes of section 179, §§ 1.179–1
through 1.179–6, and § 1.179–2T, 5T,
and 6T:
(a) Section 179 property. The term
section 179 property means any tangible
property described in section 179(d)(1)
that is acquired by purchase for use in
the active conduct of the taxpayer’s
trade or business (as described in
§ 1.179–2(c)(6)). For taxable years
beginning after 2002 and before 2006,
the term section 179 property includes
computer software described in section
179(d)(1) that is placed in service by the
taxpayer in a taxable year beginning
after 2002 and before 2006 and is
acquired by purchase for use in the
active conduct of the taxpayer’s trade or
business (as described in § 1.179–
2(c)(6)). For purposes of this paragraph
(a), the term trade or business has the
same meaning as in section 162 and the
regulations thereunder.
(b) through (f) [Reserved]. For further
guidance, see § 1.179–4(b) through (f).
■ Par. 7. Section 1.179–5 is amended by
adding paragraph (c) to read as follows:

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§ 1.179–5
election.

Time and manner of making

*

*
*
*
*
(c) Section 179 property placed in
service by the taxpayer in a taxable year
beginning after 2002 and before 2006.
[Reserved]. For further guidance, see
§ 1.179–5T(c).
■ Par. 8. Section 1.179–5T is added to
read as follows:
§ 1.179–5T Time and manner of making
election (temporary).

(a)and (b) [Reserved]. For further
guidance, see § 1.179–5(a) and (b).
(c) Section 179 property placed in
service by the taxpayer in a taxable year
beginning after 2002 and before 2006—
(1) In general. For any taxable year
beginning after 2002 and before 2006, a
taxpayer is permitted to make or revoke
an election under section 179 without
the consent of the Commissioner on an
amended Federal tax return for that
taxable year. This amended return must
be filed within the time prescribed by
law for filing an amended return for
such taxable year.
(2) Election—(i) In general. For any
taxable year beginning after 2002 and
before 2006, a taxpayer is permitted to
make an election under section 179 on
an amended Federal tax return for that
taxable year without the consent of the
Commissioner. Thus, the election under
section 179 and § 1.179–1 to claim a
section 179 expense deduction for
section 179 property may be made on an
amended Federal tax return for the
taxable year to which the election
applies. The amended Federal tax return
must include the adjustment to taxable
income for the section 179 election and
any collateral adjustments to taxable
income or to the tax liability (for
example, the amount of depreciation
allowed or allowable in that taxable year
for the item of section 179 property to
which the election pertains). Such
adjustments must also be made on
amended Federal tax returns for any
affected succeeding taxable years.
(ii) Specifications of election. Any
election under section 179 must specify
the items of section 179 property and
the portion of the cost of each such item
to be taken into account under section
179(a). Any election under section 179
must comply with the specification
requirements of section 179(c)(1)(A),
§ 1.179–1(b), and § 1.179–5(a). If a
taxpayer elects to expense only a
portion of the cost basis of an item of
section 179 property for a taxable year
beginning after 2002 and before 2006 (or
did not elect to expense any portion of
the cost basis of the item of section 179
property), the taxpayer is permitted to
file an amended Federal tax return for

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that particular taxable year and increase
the portion of the cost of the item of
section 179 property to be taken into
account under section 179(a) (or elect to
expense any portion of the cost basis of
the item of section 179 property if no
prior election was made) without the
consent of the Commissioner. Any such
increase in the amount expensed under
section 179 is not deemed to be a
revocation of the prior election for that
particular taxable year.
(3) Revocation—(i) In general. Section
179(c)(2) permits the revocation of an
entire election or specification, or a
portion of the selected dollar amount of
a specification. The term specification
in section 179(c)(2) refers to both the
selected specific item of section 179
property subject to a section 179
election and the selected dollar amount
allocable to the specific item of section
179 property. Any portion of the cost
basis of an item of section 179 property
subject to an election under section 179
for a taxable year beginning after 2002
and before 2006 may be revoked by the
taxpayer without the consent of the
Commissioner by filing an amended
Federal tax return for that particular
taxable year. The amended Federal tax
return must include the adjustment to
taxable income for the section 179
revocation and any collateral
adjustments to taxable income or to the
tax liability (for example, allowable
depreciation in that taxable year for the
item of section 179 property to which
the revocation pertains). Such
adjustments must also be made on
amended Federal tax returns for any
affected succeeding taxable years.
Reducing or eliminating a specified
dollar amount for any item of section
179 property with respect to any taxable
year beginning after 2002 and before
2006 results in a revocation of that
specified dollar amount.
(ii) Effect of revocation. Such
revocation, once made, shall be
irrevocable. If the selected dollar
amount reflects the entire cost of the
item of section 179 property subject to
the section 179 election, a revocation of
the entire selected dollar amount is
treated as a revocation of the section 179
election for that item of section 179
property and the taxpayer is unable to
make a new section 179 election with
respect to that item of property. If the
selected dollar amount is a portion of
the cost of the item of section 179
property, revocation of a selected dollar
amount shall be treated as a revocation
of only that selected dollar amount. The
revoked dollars cannot be the subject of
a new section 179 election for the same
item of property.

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(4) Examples. The following examples
illustrate the rules of this paragraph (c):
Example 1. Taxpayer, a sole proprietor,
owns and operates a jewelry store. During
2003, Taxpayer purchased and placed in
service two items of section 179 property—
a cash register costing $4,000 (5-year MACRS
property) and office furniture costing $10,000
(7-year MACRS property). On his 2003
Federal tax return filed on April 15, 2004,
Taxpayer elected to expense under section
179 the full cost of the cash register and, with
respect to the office furniture, claimed the
depreciation allowable. In November 2004,
Taxpayer determines it would have been
more advantageous to have made an election
under section 179 to expense the full cost of
the office furniture rather than the cash
register. Pursuant to paragraph (c)(1) of this
section, Taxpayer is permitted to file an
amended Federal tax return for 2003
revoking the section 179 election for the cash
register, claiming the depreciation allowable
in 2003 for the cash register, and making an
election to expense under section 179 the
cost of the office furniture. The amended
return must include an adjustment for the
depreciation previously claimed in 2003 for
the office furniture, an adjustment for the
depreciation allowable in 2003 for the cash
register, and any other collateral adjustments
to taxable income or to the tax liability. In
addition, once Taxpayer revokes the section
179 election for the entire cost basis of the
cash register, Taxpayer can no longer
expense under section 179 any portion of the
cost of the cash register.
Example 2. Taxpayer, a sole proprietor,
owns and operates a machine shop that does
specialized repair work on industrial
equipment. During 2003, Taxpayer
purchased and placed in service one item of
section 179 property—a milling machine
costing $135,000. On Taxpayer’s 2003
Federal tax return filed on April 15, 2004,
Taxpayer elected to expense under section
179 $5,000 of the cost of the milling machine
and claimed allowable depreciation on the
remaining cost. Subsequently, Taxpayer
determines it would have been to Taxpayer’s
advantage to have elected to expense
$100,000 of the cost of the milling machine
on Taxpayer’s 2003 Federal tax return. In
November 2004, Taxpayer files an amended
Federal tax return for 2003, increasing the
amount of the cost of the milling machine
that is to be taken into account under section
179(a) to $100,000, decreasing the
depreciation allowable in 2003 for the
milling machine, and making any other
collateral adjustments to taxable income or to
the tax liability. Pursuant to paragraph
(c)(2)(ii) of this section, increasing the
amount of the cost of the milling machine to
be taken into account under section 179(a)
supplements the portion of the cost of the
milling machine that was already taken into
account by the original section 179 election
made on the 2003 Federal tax return and no
revocation of any specification with respect
to the milling machine has occurred.
Example 3. Taxpayer, a sole proprietor,
owns and operates a real estate brokerage
business located in a rented storefront office.
During 2003, Taxpayer purchases and places
in service two items of section 179

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property—a laptop computer costing $2,500
and a desktop computer costing $1,500. On
Taxpayer’s 2003 Federal tax return filed on
April 15, 2004, Taxpayer elected to expense
under section 179 the full cost of the laptop
computer and the full cost of the desktop
computer. Subsequently, Taxpayer
determines it would have been to Taxpayer’s
advantage to have originally elected to
expense under section 179 only $1,500 of the
cost of the laptop computer on Taxpayer’s
2003 Federal tax return. In November 2004,
Taxpayer files an amended Federal tax return
for 2003 reducing the amount of the cost of
the laptop computer that was taken into
account under section 179(a) to $1,500,
claiming the depreciation allowable in 2003
on the remaining cost of $1,000 for that item,
and making any other collateral adjustments
to taxable income or to the tax liability.
Pursuant to paragraph (c)(3)(ii) of this
section, the $1,000 reduction represents a
revocation of a portion of the selected dollar
amount and no portion of those revoked
dollars may be the subject of a new section
179 election for the laptop computer.
Example 4. Taxpayer, a sole proprietor,
owns and operates a furniture making
business. During 2003, Taxpayer purchases
and places in service one item of section 179
property—an industrial-grade cabinet table
saw costing $5,000. On Taxpayer’s 2003
Federal tax return filed on April 15, 2004,
Taxpayer elected to expense under section
179 $3,000 of the cost of the saw and, with
respect to the remaining $2,000 of the cost of
the saw, claimed the depreciation allowable.
In November 2004, Taxpayer files an
amended Federal tax return for 2003
revoking the selected $3,000 amount for the
saw, claiming the depreciation allowable in
2003 on the $3,000 cost of the saw, and
making any other collateral adjustments to
taxable income or to the tax liability.
Subsequently, in December 2004, Taxpayer
files a second amended Federal tax return for
2003 selecting a new dollar amount of $2,000
for the saw, including an adjustment for the
depreciation previously claimed in 2003 on
the $2,000, and making any other collateral
adjustments to taxable income or to the tax
liability. Pursuant to paragraph (c)(2)(ii) of
this section, Taxpayer is permitted to select
a new selected dollar amount to expense
under section 179 encompassing all or a part
of the initially non-elected portion of the cost
of the elected item of section 179 property.
However, no portion of the revoked $3,000
may be the subject of a new section 179
dollar amount selection for the saw. In
December 2005, Taxpayer files a third
amended Federal tax return for 2003
revoking the entire selected $2,000 amount
with respect to the saw, claiming the
depreciation allowable in 2003 for the
$2,000, and making any other collateral
adjustments to taxable income or to the tax
liability. Because Taxpayer elected to
expense, and subsequently revoke, the entire
cost basis of the saw, the section 179 election
for the saw has been revoked and Taxpayer
is unable to make a new section 179 election
with respect to the saw.
■ Par. 9. Section 1.179–6T is added to
read as follows:

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§ 1.179–6T

Effective dates.

(a) In general. Except as provided in
paragraph (b) of this section, the
provisions of §§ 1.179–1 through 1.179–
5 apply for property placed in service by
the taxpayer in taxable years ending
after January 25, 1993. However, a
taxpayer may apply the provisions of
§§ 1.179–1 through 1.179–5 to property
placed in service by the taxpayer after
December 31, 1986, in taxable years
ending on or before January 25, 1993.
Otherwise, for property placed in
service by the taxpayer after December
31, 1986, in taxable years ending on or
before January 25, 1993, the final
regulations under section 179 as in
effect for the year the property was
placed in service apply, except to the
extent modified by the changes made to
section 179 by the Tax Reform Act of
1986 (100 Stat. 2085), the Technical and
Miscellaneous Revenue Act of 1988 (102
Stat. 3342) and the Revenue
Reconciliation Act of 1990 (104 Stat.
1388–400). For that property, a taxpayer
may apply any reasonable method that
clearly reflects income in applying the
changes to section 179, provided the
taxpayer consistently applies the
method to the property.
(b) Section 179 property placed in
service by the taxpayer in a taxable year
beginning after 2002 and before 2006.
The provisions of § 1.179–2T, 1.179–4T,
and 1.179–5T, reflecting changes made
to section 179 by the Jobs and Growth
Tax Relief Reconciliation Act of 2003
(117 Stat. 752), apply for property
placed in service in taxable years
beginning after 2002 and before 2006.
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 10. The authority citation for part
602 continues to read as follows:

■

Authority: 26 U.S.C. 7805.

Par. 11. In § 602.101, paragraph (b) is
amended by adding the following entries
in numerical order to the table to read as
follows:

■

§ 602.101

*

OMB Control numbers.

*
*
(b) * * *

*

*

CFR part or section where
identified and described

Current
OMB control
No.

*
*
*
*
*
1.179–2T ...................................
1545–1201
*
*
*
*
*
1.179–5T ...................................
1545–1201
*
*
*
*
*

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46986

Federal Register / Vol. 69, No. 149 / Wednesday, August 4, 2004 / Rules and Regulations

Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: July 21, 2004.
Gregory F. Jenner,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 04–17539 Filed 8–3–04; 8:45 am]
BILLING CODE 4830–01–P

DEPARTMENT OF LABOR
Occupational Safety and Health
Administration
29 CFR Part 1910
[Docket No. H–049D]
RIN 1218–AC05

Controlled Negative Pressure REDON
Fit Testing Protocol
Occupational Safety and Health
Administration (OSHA), Department of
Labor.
ACTION: Final rule.
AGENCY:

In this rulemaking, OSHA is
approving an additional quantitative fit
testing protocol, the controlled negative
pressure (CNP) REDON fit testing
protocol, for inclusion in Appendix A of
its Respiratory Protection Standard. The
protocol affects, in addition to general
industry, OSHA respiratory protection
standards for shipyard employment and
construction. The Agency is adopting
this protocol under the provisions
contained in the Respiratory Protection
Standard that allow individuals to
submit evidence for including
additional fit testing protocols in this
standard.
The CNP REDON protocol requires
the performance of three different test
exercises followed by two redonnings of
the respirator, while the CNP protocol
approved previously by OSHA specifies
eight test exercises, including one
redonning of the respirator. In addition
to amending the Standard to include the
CNP REDON protocol, this rulemaking
makes several editorial and nonsubstantive technical revisions to the
Standard associated with the CNP
REDON protocol and the previously
approved CNP protocol.
DATES: The final rule becomes effective
September 3, 2004.
ADDRESSES: In compliance with 28
U.S.C. 2212(a), the Agency designates
the Associate Solicitor for Occupational
Safety and Health, Office of the
Solicitor, Room S–4004, U.S.
Department of Labor, 200 Constitution
Ave., NW, Washington, DC 20210, as
SUMMARY:

VerDate jul<14>2003

12:28 Aug 03, 2004

Jkt 203001

the recipient of petitions for review of
this rulemaking.
FOR FURTHER INFORMATION CONTACT: For
technical inquiries, contact Mr. John E.
Steelnack, Directorate of Standards and
Guidance, Room N–3718, OSHA, U.S.
Department of Labor, 200 Constitution
Avenue, NW, Washington, DC 20210;
telephone (202) 693–2289 or by
facsimile (202) 693–1678. Copies of this
Federal Register notice are available
from the OSHA Office of Publications,
Room N–3101, U.S. Department of
Labor, 200 Constitution Avenue, NW,
Washington DC 20210; telephone (202)
693–1888. For an electronic copy of this
notice, go to OSHA’s Web site (http://
www.osha.gov), and select ‘‘Federal
Register,’’ ‘‘Date of Publication,’’ and
then ‘‘2004.’’
SUPPLEMENTARY INFORMATION:
I. Background
The Respiratory Protection Standard
includes the following three
quantitative fit testing protocols:
Generated-aerosol; ambient-aerosol
condensation nuclei counter; and
controlled negative pressure (CNP). Part
II of Appendix A of the Respiratory
Protection Standard specifies, in part,
the procedure individuals must follow
to submit new fit testing protocols for
the Agency’s consideration. The criteria
OSHA uses for determining whether to
propose adding a fit testing protocol to
the Respiratory Protection Standard
include: (1) A test report prepared by an
independent government research
laboratory (e.g., Lawrence Livermore
National Laboratory, Los Alamos
National Laboratory, the National
Institute for Standards and Technology)
stating that the laboratory tested the
protocol and found it to be accurate and
reliable; or (2) an article published in a
peer-reviewed industrial-hygiene
journal describing the protocol, and
explaining how test data support the
accuracy and reliability of the protocol.
When a protocol meets one of these
criteria, the Agency conducts a noticeand-comment rulemaking under Section
6(b)(7) of the Occupational Safety and
Health Act of 1970 (29 U.S.C. 655). As
OSHA noted in the proposal, the CNP
REDON protocol met the second of
these criteria (68 FR 33887; June 6,
2003).
II. Summary and Explanation of the
Final Standard
A. Introduction
With his letter submitting the CNP
REDON protocol for review, Dr. Clifton
D. Crutchfield included copies of two
peer-reviewed articles from industrialhygiene journals describing the

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Frm 00008

Fmt 4700

Sfmt 4700

accuracy and reliability of the proposed
protocol (Exs. 2 and 3). In this
submission, Dr. Crutchfield also
described in detail the equipment and
procedures required to administer the
proposed protocol. According to this
description, the proposed protocol is a
variation of the CNP protocol developed
by Dr. Crutchfield in the early 1990s,
and which OSHA approved for
inclusion in paragraphs (a) and (d) of
Part I.C.4 of Appendix A when the
Agency revised its Respiratory
Protection Standard (63 FR 1152;
January 8, 1998). Although the proposed
protocol has the same fit-test
requirements and uses the same test
equipment as the CNP protocol
previously approved by OSHA, it
includes only three test exercises
followed by two redonnings of the
respirator instead of the eight test
exercises and one respirator redonning
required by the previously approved
CNP protocol. The three test exercises,
listed in order of administration, are
normal breathing, bending over, and
head shaking. The procedures for
administering these three test exercises
and the two respirator donnings to an
employee, and for measuring respirator
leakage during each test, are described
below:
• Facing forward. In a normal
standing position, without talking, the
test subject must breathe normally for
30 seconds; then, while facing forward,
he or she must hold his or her breath for
10 seconds for test measurement.
• Bending over. The test subject (i.e.,
employee) must bend at the waist for 30
seconds as if he or she is going to touch
his or her toes; then, while facing
parallel to the floor, he or she must hold
his or her breath for 10 seconds for test
measurement.
• Head shaking. The test subject must
shake his or her head back and forth
vigorously several times while shouting
for approximately three seconds; then,
while facing forward, he or she must
hold his or her breath for 10 seconds for
test measurement.
• First redonning (REDON–1). The
test subject must remove the respirator,
loosen all facepiece straps, and then
redon the respirator mask; after
redonning the mask, he or she must face
forward and hold his or her breath for
10 seconds for test measurement.
• Second redonning (REDON–2). The
test subject must remove the respirator,
loosen all facepiece straps, and then
redon the respirator mask again; after
redonning the mask, he or she must face
forward and hold his or her breath for
10 seconds for test measurement. As
noted earlier, Dr. Crutchfield submitted
two peer-reviewed journal articles that

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