[Federal Register Volume 71, Number 174 (Friday, September 8, 2006)]
[Proposed Rules]
[Pages 53052-53054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-14856]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-142270-05]
RIN 1545-BE90


Railroad Track Maintenance 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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[[Page 53053]]

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations under 
section 45G of the Internal Revenue Code relating to the railroad track 
maintenance credit determined for qualified railroad track maintenance 
expenditures paid or incurred by a Class II or Class III railroad and 
other eligible taxpayers during the taxable year. The temporary 
regulations reflect changes to the law made by the American Jobs 
Creation Act of 2004 and the Gulf Opportunity Zone Act of 2005. The 
text of those temporary regulations also serves as the text of these 
proposed regulations. This document also provides notice of a public 
hearing on these proposed regulations.

DATES: Written or electronic comments must be received by December 7, 
2006. Outlines of topics to be discussed at the public hearing 
scheduled for Tuesday, January 9, 2007, at 10 a.m. must be received by 
December 8, 2006.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-142270-05), room 
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. Alternatively, submissions may be sent 
electronically, via the IRS Internet site at http://www.irs.gov.regs or 
via the Federal eRulemaking Portal at http://www.regulations.gov (IRS 
REG-142270-05). The public hearing will be held in the auditorium of 
the New Carrollton Federal Building, 5000 Ellin Road, Lanham, MD 20706.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Winston H. Douglas, (202) 622-3110; concerning submissions of comments, 
the hearing, and/or to be placed on the building access list to attend 
the hearing, Kelly D. Banks, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collections of information should be 
sent to the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, 
Washington, DC 20224. Comments on the collection of information should 
be received by November 7, 2006. Comments are specifically requested 
concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the Internal Revenue Service, 
including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collections of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of service to provide information.
    The collections of information in this notice of proposed rule 
making are in Sec.  1.45G-1T(d). This information is required to verify 
the assignments of railroad track miles made under section 45G(b). This 
information will be used by the Service for examination purposes. The 
collection of information is required to obtain a benefit. The likely 
respondents are business or other for-profit institutions.
    Estimated total annual reporting: 1,375 hours.
    The estimated annual burden per respondent varies from 1 hour to 4 
hours, depending on individual circumstances, with an estimated average 
of 2.5 hours.
    Estimated number of respondents: 550.
    Estimated frequency of responses: Annually.
    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.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend 26 CFR part 1 relating to section 
45G of the Internal Revenue Code (Code). The temporary regulations 
contain rules for claiming the railroad track maintenance credit for 
qualified railroad track maintenance expenditures paid or incurred by a 
Class II or Class III railroad and other eligible taxpayers during the 
taxable year. The text of those temporary regulations also serves as 
the text of these proposed regulations. The preamble to the temporary 
regulations explains the temporary regulations and these proposed 
regulations.

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 
these regulations do not impose on small entities a collection of 
information requirement, the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) does not apply. Therefore, a Regulatory Flexibility Analysis 
is not required. Pursuant to section 7805(f) of the Internal Revenue 
Code, this regulation has been submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business.

Comments and 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. The IRS and Treasury Department specifically request 
comments on the clarity of the proposed rules and how they may be made 
easier to understand. All comments will be available for public 
inspection and copying.
    A public hearing has been scheduled for Tuesday, January 9, 2007, 
beginning at 10 a.m. in the auditorium of the New Carrollton Federal 
Building, 5000 Ellin Road, Lanham, MD 20706. Due to building security 
procedures, visitors must enter at the main front entrance. In 
addition, all visitors must present photo identification to enter the 
building. Because of access restrictions, visitors will not be admitted 
beyond the immediate entrance area more than 30 minutes before the 
hearing starts. For information about having your name placed on the 
building access list to attend the hearing, see the FOR FURTHER 
INFORMATION CONTACT section of this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit written or 
electronic comments and an outline of the topics

[[Page 53054]]

to be discussed and the time to be devoted to each topic (signed 
original and eight (8) copies) by December 8, 2006. A period of 10 
minutes will be allotted to each person for making comments. An agenda 
showing the scheduling of the speakers will be prepared after the 
deadline for receiving outlines has passed. Copies of the agenda will 
be available free of charge at the hearing.

Drafting Information

    The principal author of these regulations is Winston H. Douglas, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries).

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

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

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

    Par. 2. Section 1.45G-0 is added to read as follows:


Sec.  1.45G-0  Table of contents for the railroad track maintenance 
credit rules.

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


Sec.  1.45G-1  Railroad track maintenance credit.

    [The text of this proposed section is the same as the text of Sec.  
1.45G-1T published elsewhere in this issue of the Federal Register].

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E6-14856 Filed 9-7-06; 8:45 am]
BILLING CODE 4830-01-P