[Federal Register Volume 76, Number 202 (Wednesday, October 19, 2011)]
[Proposed Rules]
[Pages 64879-64880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26972]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-146297-09]
RIN 1545-BJ23


Deduction for Qualified Film and Television Production Costs

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
deductions for the costs of producing film and television productions. 
Those temporary regulations reflect changes to the law made by the Tax 
Extenders and Alternative Minimum Tax Relief Act of 2008, and affect 
taxpayers that produce films and television productions within the 
United States. The text of those temporary regulations also serves as 
the text of these proposed regulations.

DATES: Written comments and requests for a public hearing must be 
received by January 17, 2012.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-146297-09), room 
5205, 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-
146297-

[[Page 64880]]

09), 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-146297-09).

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Bernard P. 
Harvey, (202) 622-4930; concerning submissions and to request a 
hearing, [email protected], (202) 622-7180 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Section 181 was added to the Code by section 244 of the American 
Jobs Creation Act of 2004, Public Law 108-357 (118 Stat. 1418) (October 
22, 2004), and was modified by section 403(e) of the Gulf Opportunity 
Zone Act of 2005, Public Law 109-135 (119 Stat. 2577) (December 21, 
2005). Section 502 of the Tax Extenders and Alternative Minimum Tax 
Relief Act of 2008, Public Law 110-343 (122 Stat. 3765) (October 3, 
2008) further modified section 181 for film and television productions 
commencing after December 31, 2007, and extended section 181 to film 
and television productions commencing before January 1, 2010. Section 
181 was extended again to film and television productions commencing 
before January 1, 2012, by section 744 of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010, Public Law 
111-312 (December 17, 2010).

Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) to add regulations under section 181 of the Internal Revenue 
Code. The temporary regulations provide rules specific to film and 
television productions commencing on or after January 1, 2008, to 
reflect the Tax Extenders and Alternative Minimum Tax Relief Act of 
2008. The text of those temporary regulations also serves as the text 
of these proposed regulations. The preamble to the temporary 
regulations explains 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) and (d) of the Administrative 
Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. 
Because these proposed regulations do 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 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 a 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 electronically generated comments that are 
submitted timely to the IRS. The IRS and the Treasury Department 
request comments on the clarity of the proposed rule and how it may be 
made easier to understand. All comments will be available for public 
inspection and copying. A public hearing may be scheduled if requested 
in writing by a person who timely submits comments. If a public hearing 
is scheduled, notice of the date, time, and place for the hearing will 
be published in the Federal Register.

Drafting Information

    The principal author of these regulations is Bernard P. Harvey, 
Office of Associate Chief Counsel (Income Tax and Accounting). 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

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

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

     Par. 2. Section 1.181-0 is added as follows:


Sec.  1.181-0  Table of contents.

    [The text of this proposed amendment to Sec.  1.181-0 is the same 
as the text of Sec.  1.181-0T published elsewhere in this issue of the 
Federal Register.]
     Par . 3. Section 1.181-1 is amended by adding paragraphs 
(a)(1)(ii), (a)(6), (b)(1)(ii), (b)(2)(vi) and (c)(2) to read as 
follows:


Sec.  1.181-1  Deduction for qualified film and television production 
costs.

    (a) * * * (1) * * *
    (ii) [The text of this proposed amendment to Sec.  1.181-
1(a)(1)(ii) is the same as the text for Sec.  1.181-1T(a)(1)(ii) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (6) [The text of this proposed amendment to Sec.  1.181-1(a)(6) is 
the same as the text for Sec.  1.181-1T(a)(6) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (b) * * * (1) * * *
    (ii) [The text of this proposed amendment to Sec.  1.181-
1(b)(1)(ii) is the same as the text for Sec.  1.181T(b)(1)(ii) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (2)* * *
    (vi) [The text of this proposed amendment to Sec.  1.181-
1(b)(2)(vi) is the same as the text for Sec.  1.181-1T(b)(2)(vi) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (c) * * *
    (2) [The text of this proposed amendment to Sec.  1.181-1(c)(2) is 
the same as the text for Sec.  1.181-1T(c)(2) published elsewhere in 
this issue of the Federal Register].

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2011-26972 Filed 10-18-11; 8:45 am]
BILLING CODE 4830-01-P