Internal Revenue Service (IRS), Treasury.
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.
This correction is effective December 28, 2004.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Paul F. Handleman or Lauren R. Taylor, (202) 622-3040 (not a toll-free number).End Further Info End Preamble Start Supplemental Information
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.Start List of Subjects
List of Subjects in 26 CFR Part 1
- Income taxes
- Reporting and recordkeeping requirements
Correction of PublicationStart Amendment Part
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:End Amendment Part Start Part
PART 1—INCOME TAXESEnd Part Start Amendment Part
Paragraph 1. The authority citation for part 1 continues to read in part as follows:End Amendment Part
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.End Amendment Part Start Amendment Part
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.End Amendment Part Start Amendment Part
Par. 4. Section 1.45D-1(d)(5)(ii) and (h)(2) are revised to read as follows:End Amendment Part
(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.
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.End Amendment Part Start Signature
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