[Federal Register Volume 70, Number 18 (Friday, January 28, 2005)]
[Rules and Regulations]
[Page 4012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1552]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9171]
RIN 1545-AY87; 1545-BC03


New Markets Tax Credit; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9171), that were published in the Federal Register on Tuesday, December 
28, 2004 (69 FR 77625) relating to the new markets tax credit under 
section 45D.

DATES: This correction is effective December 28, 2004.

FOR FURTHER INFORMATION CONTACT: Paul F. Handleman or Lauren R. Taylor, 
(202) 622-3040 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9171) that are the subject of these 
corrections are under section 45D of the Internal Revenue Code.

Need for Correction

    As published, TD 9171 contains errors that may prove to be 
misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

0
Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

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 * * *


Sec.  1.45D-1  [Corrected]

0
Par. 2. Section 1.45D-1(a), under the ``Table of contents'', the entry 
for paragraph (h)(2) ``(2) Exception for certain provisions'' is 
removed and the language ``(2) Exception'' is added in its place.

0
Par. 3. Section 1.45D-1(d)(4)(i)(E), second sentence, the language, 
``For purposes the preceding'' is removed and the language ``For 
purposes of the preceding'' is added in its place.

0
Par. 4. Section 1.45D-1(d)(5)(ii) and (h)(2) are revised to read as 
follows:


Sec.  1.45D-1  New markets tax credit.

* * * * *
    (d) * * *
    (5) * * *
    (ii) Rental of real property. The rental to others of real property 
located in any low-income community (as defined in section 45D(e)) is a 
qualified business if and only if the property is not residential 
rental property (as defined in section 168(e)(2)(A)) and there are 
substantial improvements located on the real property. However, a CDE's 
investment in or loan to a business engaged in the rental of real 
property is not a qualified low-income community investment under 
paragraph (d)(1)(i) of this section to the extent a lessee of the real 
property is described in paragraph (d)(5)(iii)(B) of this section.
    (h) * * *
    (2) Exception. Paragraph (d)(5)(ii) of this section as it relates 
to the restriction on lessees described in paragraph (d)(5)(iii)(B) of 
this section applies to qualified low-income community investments made 
on or after June 22, 2005.
* * * * *

0
Par. 5. Section 1.45D-1(d)(8)(ii), Example (ii), first sentence, the 
language, ``On November 1, 2004, W makes a'' is removed and the 
language ``On November 1, 2004, W makes an'' is added in its place.

Cynthia E. Grigsby,
Acting Chief, Publications and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel, (Procedures and Administration).
[FR Doc. 05-1552 Filed 1-27-05; 8:45 am]
BILLING CODE 4830-01-P