Td 9209

Federal Register / Vol. 70, No. 133 / Wednesday, July 13, 2005 / Rules and Regulations
Effective Date

Compliance

(a) This airworthiness directive (AD)
becomes effective August 17, 2005.

(h) You are responsible for having the
actions required by this AD performed within
10 hours time-in-service after the effective
date of this AD.

Affected ADs
(b) None.
Applicability
(c) This AD applies to the Hartzell
Propeller, Inc., McCauley Propeller Systems,
and Sensenich Propeller Manufacturing
Company, Inc. propeller models last returned
to service by Southern California Propeller
Service of Inglewood, CA., listed in the
following Table 1:

TABLE 1.—APPLICABLE PROPELLER
MODELS
Hartzell Propeller, Inc.
()HC–()(2,3,4)Y()–().
()HC–()(2,3,4)(X,V,MV,W,Z,P,R)
(F,G,L,K,R,20,30,31)–().
()HA–()–().
HC–B(3,4)(M,P,R,T)(A,N,P)–().
HC–(D,E)(4,5)(A,B,N,P)–().
McCauley Propeller Systems
()2()()3()C()()()–(): All constant speed twobladed propeller models.
()3()()3()C()()()–(): All constant speed threebladed propeller models.
1()()()()/(): All metal propeller models.
Sensenich Propeller Manufacturing
Company, Inc.
All metal propeller models.
(d) These actions are against propeller
models returned to service by Southern
California Propeller Service. Southern
California Propeller Service is not to be
confused with propeller repair stations
known as California Propeller or as Propeller
Service of California. Southern California
Propeller Service was issued Air Agency
Certificate number of VXSR617L in 1992,
which was revoked in June of 1998.
(e) For Hartzell and McCauley propeller
models listed in Table 1 of this AD, any letter
or number (or lack of a letter or number)
could appear where open parentheses are
shown in the model number. Model numbers
could show any combination of letters or
numbers where the model number shows
parentheses with a series of numbers or
letters.
(f) For propeller models listed in Table 1
of this AD, that have been overhauled since
being returned to service by Southern
California Propeller Service by an authorized
repair station other than Southern California
Propeller Service, no further action is
required.
Unsafe Condition
(g) This AD results from the investigation
of a failed propeller blade and subsequent
inspections of various propeller models
returned to service by Southern California
Propeller Service, of Inglewood, CA. We are
issuing this AD to prevent blade failure that
could result in separation of a propeller blade
and loss of control of the airplane.

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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602

Required Actions

[TD 9209]

(i) Perform the actions specified in
paragraph (j) of this AD on propeller models
listed in Table 1 of this AD. You can find
information on performing the actions in the
applicable propeller manufacturer’s service
documentation.
(j) Perform the following actions:
(1) Disassemble,
(2) Clean,
(3) Inspect for the following:
(i) Cracks,
(ii) Corrosion or pits,
(iii) Nicks,
(iv) Scratches,
(v) Blade minimum dimensions,
(vi) Unapproved localized heating of blade,
(vii) Unapproved use of helicoil inserts in
actuating pin holes,
(viii) Improperly drilled actuating pin
holes,
(ix) Chemical conversion coat or paint or
both applied over corrosion,
(x) Lack of chemical conversion coating,
(xi) Lack of paint on internal surfaces,
(xii) Bolts incorrectly torqued,
(xiii) Incorrect parts,
(xiv) Incorrect installation of parts,
(xv) Reinstallation of parts intended for
one-time use, and
(xvi) Lack of proper shot peening.
(4) Repair and replace with serviceable
parts, as necessary,
(5) Reassemble and test.

RIN 1545–BC69

Alternative Methods of Compliance
(k) The Manager, Chicago Aircraft
Certification Office, has the authority to
approve alternative methods of compliance
(AMOCs) for this AD if requested using the
procedures found in 14 CFR 39.19.
Special Flight Permits
(l) Under 14 CFR 39.23, we are limiting the
special flight permits for this AD by not
allowing any flights with apparent cracks in
propellers.
Related Information
(m) Special Airworthiness Information
Bulletin No. NE–01–19, dated March 20,
2001, pertains to the subject of this AD.
Issued in Burlington, Massachusetts, on
July 5, 2005.
Francis A. Favara,
Acting Manager, Engine and Propeller
Directorate, Aircraft Certification Service.
[FR Doc. 05–13740 Filed 7–12–05; 8:45 am]
BILLING CODE 4910–13–P

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

SUMMARY: This document contains final
regulations relating to the election to
expense the cost of property subject to
section 179 of the Internal Revenue
Code (Code). The regulations reflect
changes to the law made by section 202
of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 and section
201 of the American Jobs Creation Act
of 2004.
DATES: Effective Date. These regulations
are effective July 13, 2005.
Applicability Dates: For dates of
applicability, see § 1.179–6.
FOR FURTHER INFORMATION CONTACT:
Winston H. Douglas, (202) 622–3110
(not a toll-free number).
SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act
The collections of information
contained in these final regulations have
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
3507(d)) under control number 1545–
1201. The collections of information in
these final regulations are in §§ 1.179–
2 and 1.179–5. This information is
required by § 1.179–2 to ensure that
married individuals filing separate
returns properly allocate the cost of
section 179 property elected to be
expensed in a taxable year and that the
dollar limitation is properly allocated
among the component members of a
controlled group. Also, this information
is required by § 1.179–5 to ensure the
specific identification of each piece of
acquired section 179 property and
reflect how and from whom such
property was placed in service. This
information will be used for audit and
examination purposes.
Estimated total annual reporting and/
or recordkeeping burden: 3,015,000
hours.
The estimated annual burden per
respondent/recordkeeper varies from .50
to 1 hour, depending on individual
circumstances, with an estimated
average of .75 hour.
Estimated number of respondents
and/or recordkeepers: 4,025,000.

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Estimated frequency of responses:
Annually.
Comments on the collection 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 are specifically
requested concerning how the burden of
complying with the collection of
information may be minimized,
including through the application of
automated collection techniques or
other forms of information technology.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by the Office of
Management and Budget.
Books or records relating to a
collection of information must be
retained as long as their contents might
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
This document contains amendments
to 26 CFR parts 1 and 602. On August
4, 2004, the IRS and Treasury
Department published temporary
regulations (TD 9146) in the Federal
Register (69 FR 46982) relating to the
election to expense the cost of property
subject to section 179 of the Code. The
temporary regulations reflected changes
to the law made by section 202 of the
Jobs and Growth Tax Relief
Reconciliation Act of 2003 (JGTRRA),
Public Law 108–27 (117 Stat. 752). On
the same date, the IRS published a
notice of proposed rulemaking (REG–
152549–03) cross-referencing the
temporary regulations in the Federal
Register (69 FR 47043). No comments
were received from the public in
response to the notice of proposed
rulemaking and no public hearing was
requested or held. However, section 201
of the American Jobs Creation Act of
2004, Public Law 108–357 (118 Stat.
1418), extended the changes that were
made by JGTRRA for an additional two
years. The proposed regulations are
adopted as amended by this Treasury
decision, and the corresponding
temporary regulations are removed. The
revisions are discussed below.

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Explanation of Provisions
Scope
The changes made to section 179 by
section 202 of JGTTRA were applicable
for section 179 property placed in
service by a taxpayer in taxable years
beginning after 2002 and before 2006.
Section 202 of JGTRRA expanded the
definition of section 179 property to
include off-the-shelf computer software
(a category of intangible property) and
increased the $25,000 and $200,000
limitation amounts of section 179(b)(1)
and (b)(2), respectively, to $100,000 and
$400,000, respectively. In addition, the
$100,000 and $400,000 amounts were
indexed annually for inflation for
taxable years beginning after 2003 and
before 2006. JGTRRA also modified
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 revocation, once made, shall
be irrevocable. With respect to a taxable
year beginning after 2002 and before
2006, the conference agreement
permitted taxpayers to make or revoke
an expensing election on an amended
Federal tax return without the consent
of the Commissioner. The temporary
regulations reflected the changes to
section 179 made by section 202 of
JGTTRA.
Subsequent to the issuance of the
proposed regulations and the temporary
regulations, the American Jobs Creation
Act of 2004 (AJCA) was enacted. Section
201 of AJCA extends the changes that
were made by JGTTRA for an additional
two years. The final regulations retain
the rules relating to the JGTTRA
changes contained in the temporary
regulations. The final regulations also
apply the AJCA’s two-year extension of
the JGTTRA changes to section 179
property placed in service by a taxpayer
in a taxable year beginning after 2002
and before 2008.
Manner of Making an Election or
Revoking an Election Under Section 179
The final regulations provide that for
any taxable year beginning after 2002
and before 2008, a section 179 election
or a revocation of a section 179 election
may be made on an amended Federal
tax return for that taxable year to which
the election or revocation applies. For
any taxable year beginning before 2003,
a late section 179 election or a
revocation of a section 179 election
generally is made by a taxpayer
submitting a request for a letter ruling.
Accordingly, the final regulations clarify
that a section 179 election or a
revocation of a section 179 election

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generally must not be made in any other
manner (for example, a section 179
election or revocation of a section 179
election cannot be made through a
request under section 446(e) to change
the taxpayer’s method of accounting).
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. It is hereby
certified that the collection of
information in these regulations will not
have a significant economic impact on
a substantial number of small entities.
This certification is based upon the fact
that the amount of time necessary to
record and retain the required
information will be minimal for those
taxpayers electing to expense the cost of
section 179 property. The estimated
annual burden for each such taxpayer
varies from .50 to 1 hour, depending on
individual circumstances, with an
estimated average of .75 hour.
Therefore, a regulatory flexibility
analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is
not required. Pursuant to section 7805(f)
of the Code, the notice of proposed
rulemaking preceding these final
regulations was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these
regulations is Winston H. Douglas,
Office of the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and Treasury Department participated
in their development.
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
Accordingly, 26 CFR parts 1 and 602
are amended as follows:

■

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Federal Register / Vol. 70, No. 133 / Wednesday, July 13, 2005 / Rules and Regulations
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 1.179–0 is amended as
follows:
■ 1. The entries for § 1.179–2(b)(1) and
(b)(2), § 1.179–4(a), and § 1.179–5(c) are
revised.
■ 2. The entries for § 1.179–5(d) and
§ 1.179–6(a), (b), and (c) are added.
■ 3. Sections 1.179–2T, 1.179–4T,
1.179–5T, and 1.179–6T are removed.
The revisions and additions read as
follows:

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

*

*

*

*

*

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

*

*
*
*
*
(b) * * *
(1) In general.
(2) Excess section 179 property.
*
*
*
*
*
§ 1.179–4

Definitions.

(a) Section 179 property.
*
*
*
*
*
§ 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 2008.
(d) Election or revocation must not be
made in any other manner.
§ 1.179–6

Effective dates.

(a) In general.
(b) Section 179 property placed in
service by the taxpayer in a taxable year
beginning after 2002 and before 2008.
(c) Application of § 1.179–5(d).
§ 1.179–2

[Amended]

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) * * *
(ii) $200,000 ($400,000 in the case of
taxable years beginning after 2002 and
before 2008 under section 179(b)(2),
indexed annually for inflation under
section 179(b)(5) for taxable years
beginning after 2003 and before 2008).
*
*
*
*
*
§ 1.179–2T
■

[Removed]

Par. 4. Section 1.179–2T is removed.

§ 1.179–4

[Amended]

Par. 5. Section 1.179–4 is amended by
revising the introductory text and
paragraph (a) to read as follows:
■

§ 1.179–4

Definitions.

The following definitions apply for
purposes of section 179 and §§ 1.179–1
through 1.179–6:
(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 2008,
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 2008 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 under section 162.
*
*
*
*
*
§ 1.179–4T
■

[Removed]

Par. 6. Section 1.179–4T is removed.

■ Par. 3. Section 1.179–2 is amended by
revising paragraphs (b)(1) and (b)(2)(ii) to § 1.179–5 [Amended]
read as follows:
■ Part. 7. Section 1.179–5 is amended by
revising paragraph (c) and adding
§ 1.179–2 Limitations on amount subject
paragraph (d) to read as follows:
to section 179 election.

*

*
*
*
*
(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 2008 under section
179(b)(1), indexed annually for inflation
under section 179(b)(5) for taxable years
beginning after 2003 and before 2008),

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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 2008—
(1) In general. For any taxable year
beginning after 2002 and before 2008, 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

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40191

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 2008, 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 elections. 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 2008 (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
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

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subject to an election under section 179
for a taxable year beginning after 2002
and before 2008 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
2008 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.
(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

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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
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

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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.

(d) Election or revocation must not be
made in any other manner. Any election
or revocation specified in this section
must be made in the manner prescribed
in paragraphs (a), (b), and (c) of this
section. Thus, this election or
revocation must not be made by the
taxpayer in any other manner (for
example, an election or a revocation of
an election cannot be made through a
request under section 446(e) to change
the taxpayer’s method of accounting),
except as otherwise expressly provided
by the Internal Revenue Code, the
regulations under the Code, or other
guidance published in the Internal
Revenue Bulletin.
§ 1.179–5T
■

Par. 8. Section 1.179–5T is removed.

§ 1.179–6
■

[Removed]

[Removed]

Par. 9. Section 1.179–6 is removed.

§ 1.179–6T

[Amended]

Par. 10. Section 1.179–6T is
redesignated as § 1.179–6 and amended
as follows:

■

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Federal Register / Vol. 70, No. 133 / Wednesday, July 13, 2005 / Rules and Regulations
1. The first sentence of paragraph (a) is
revised.
■ 2. Paragraph (b) is revised.
■ 3. Paragraph (c) is added.
The revisions and addition read as
follows:
■

§ 1.179–6

Effective dates.

(a) * * * Except as provided in
paragraphs (b) and (c) 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. * * *
(b) Section 179 property placed in
service by the taxpayer in a taxable year
beginning after 2002 and before 2008.
The provisions of § 1.179–2(b)(1) and
(b)(2)(ii), the second sentence of
§ 1.179–4(a), and the provisions of
§ 1.179–5(c), reflecting changes made to
section 179 by the Jobs and Growth Tax
Relief Reconciliation Act of 2003 (117
Stat. 752) and the American Jobs
Creation Act of 2004 (118 Stat. 1418),
apply for property placed in service in
taxable years beginning after 2002 and
before 2008.
(c) Application of § 1.179–5(d).
Section 1.179–5(d) applies on or after
July 12, 2005.
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 11. The authority citation for part
602 continues to read, in part, as follows:

■

Authority: 26 U.S.C. 7805.

Par. 12. In § 602.101, paragraph (b) is
amended by removing the entries for
‘‘1.179–2T’’ and ‘‘1.179–5T’’ and adding
a new entry for ‘‘1.179–5’’ 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.

Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: June 23, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury (Tax Policy).
[FR Doc. 05–13680 Filed 7–12–05; 8:45 am]
BILLING CODE 4830–01–P

15:34 Jul 12, 2005

40 CFR Part 52
[R07–OAR–2005–MO–0003; FRL–7936–7]

Approval and Promulgation of
Implementation Plans; State of
Missouri
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:

SUMMARY: EPA is announcing the
approval of an amendment to the
statewide NOX rule for the state of
Missouri. The purpose of this rule is to
reduce the state’s contribution to the St.
Louis 8-hour ozone nonattainment area.
Consequently, the reductions in NOX
emissions will also help to reduce the
amount of PM2.5 precursors in the area.
This action is necessary to complete the
process of incorporating the amended
rule into Missouri’s ozone SIP.
DATES: This rule is effective on August
12, 2005.
FOR FURTHER INFORMATION CONTACT:
Michael Jay at (913) 551–7460 or by email at jay.michael@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document whenever
‘‘we’’, ‘‘us’’, or ‘‘our’’ is used, we mean
EPA. This section provides additional
information by addressing the following
questions:

What is a SIP?
What is the Federal approval process for a
SIP?
What does Federal approval of a state
regulation mean to me?
What is being addressed in this document?
How does the statewide NOX rule relate to
the NOX SIP call?
Have the requirements for approval of a
SIP revision been met?
What action is EPA taking?

What Is a SIP?

*
*
*
*
*
1.179–5 .....................................
1545–1201
....................
*
*
*
*
*

VerDate jul<14>2003

ENVIRONMENTAL PROTECTION
AGENCY

Jkt 205001

Section 110 of the Clean Air Act
(CAA) requires states to develop air
pollution regulations and control
strategies to ensure that state air quality
meets the national ambient air quality
standards established by EPA. These
ambient standards are established under
section 109 of the CAA, and they
currently address six criteria pollutants.
These pollutants are: Carbon monoxide,
nitrogen dioxide, ozone, lead,
particulate matter, and sulfur dioxide.
Each state must submit these
regulations and control strategies to us
for approval and incorporation into the
Federally-enforceable SIP.
Each Federally-approved SIP protects
air quality primarily by addressing air
pollution at its point of origin. These

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Fmt 4700

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40193

SIPs can be extensive, containing state
regulations or other enforceable
documents and supporting information
such as emission inventories,
monitoring networks, and modeling
demonstrations.
What Is the Federal Approval Process
for a SIP?
In order for state regulations to be
incorporated into the Federallyenforceable SIP, states must formally
adopt the regulations and control
strategies consistent with state and
Federal requirements. This process
generally includes a public notice,
public hearing, public comment period,
and a formal adoption by a stateauthorized rulemaking body.
Once a state rule, regulation, or
control strategy is adopted, the state
submits it to us for inclusion into the
SIP. We must provide public notice and
seek additional public comment
regarding the proposed Federal action
on the state submission. If adverse
comments are received, they must be
addressed prior to any final Federal
action by us.
All state regulations and supporting
information approved by EPA under
section 110 of the CAA are incorporated
into the Federally-approved SIP.
Records of such SIP actions are
maintained in the Code of Federal
Regulations (CFR) at title 40, part 52,
entitled ‘‘Approval and Promulgation of
Implementation Plans.’’ The actual state
regulations which are approved are not
reproduced in their entirety in the CFR
outright but are ‘‘incorporated by
reference,’’ which means that we have
approved a given state regulation with
a specific effective date.
What Does Federal Approval of a State
Regulation Mean to Me?
Enforcement of the state regulation
before and after it is incorporated into
the Federally-approved SIP is primarily
a state responsibility. However, after the
regulation is Federally approved, we are
authorized to take enforcement action
against violators. Citizens are also
offered legal recourse to address
violations as described in section 304 of
the CAA.
What Is Being Addressed in This
Document?
We are taking final action to approve
the Missouri Department of Natural
Resources’ (MDNR) request to include,
as a revision to Missouri’s ozone SIP, an
amendment to rule 10 CSR 10–6.350,
‘‘Emissions Limitations and Emissions
Trading of Oxides of Nitrogen’’ (known
hereafter as ‘‘statewide NOX rule’’),
which was incorporated into the SIP on

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