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Federal Register / Vol. 73, No.

46 / Friday, March 7, 2008 / Proposed Rules 12315

List of Subjects in 26 CFR Part 1 constitutes income of the trust for will have unrelated business taxable income
purposes of determining the character of under section 512 of $29,000 ($30,000 minus
Income taxes, Reporting and the $1,000 deduction under section
recordkeeping requirements. the distribution made to the beneficiary.
Income of the charitable remainder trust 512(b)(12)). Except for section 512(b)(12), no
Proposed Amendments to the other exceptions or modifications under
is allocated among the charitable sections 512–514 apply when calculating
Regulations remainder trust income categories in unrelated business taxable income based on
Accordingly, 26 CFR part 1 is paragraph (d)(1) of this section without the facts presented in this example. Because
proposed to be amended as follows: regard to whether any part of that the trust has unrelated business taxable
income constitutes unrelated business income of $29,000, the excise tax imposed
PART 1—INCOME TAXES taxable income under section 512. under section 664(c) is equal to the amount
(2) Examples. The application of the of such unrelated business taxable income,
Paragraph 1. The authority citation rules in this paragraph (c) may be $29,000. The $29,000 excise tax is allocated
for part 1 continues to read in part as illustrated by the following examples: to corpus, and does not reduce the amount
follows: in any of the categories of income under
Example 1. For 2007, a charitable paragraph (d)(1) of this section. Regardless of
Authority: 26 U.S.C. 7805. * * * remainder annuity trust with a taxable year how the trust’s income might be treated
Par. 2. Section 1.664–1 is amended as beginning on January 1, 2007, has $60,000 of under sections 511–514, the entire $40,000 is
ordinary income, including $10,000 of gross capital gain for purposes of section 664 and
follows:
income from a partnership that constitutes is allocated accordingly to and within the
1. In paragraph (a)(1)(i), the last unrelated business taxable income to the second of the categories of income under
sentence is revised and a sentence is trust. The trust has no deductions that are paragraph (d)(1) of this section.
added to the end of the paragraph. directly connected with that income. For that
2. Paragraph (c) is revised. same year, the trust has administration (3) Effective/Applicability date.
3. In paragraph (d)(2), the fourth expenses (deductible in computing taxable Paragraph (c) is effective for taxable
sentence is revised. income) of $16,000, resulting in net ordinary years beginning after December 31,
The revisions and addition read as income of $44,000. The amount of unrelated 2006. The rules that apply with respect
follows: business taxable income is computed by to taxable years beginning before
taking gross income from an unrelated trade January 1, 2007, are contained in 1.664–
§ 1.664–1 Charitable remainder trusts. or business and deducting expenses directly 1(c) in effect prior to the date these
(a) * * * (1) * * * (i) * * * A trust connected with carrying on the trade or
business, both computed with modifications
regulations are published as final
created after July 31, 1969, which is a regulations in the Federal Register. (See
under section 512(b). Section 512(b)(12)
charitable remainder trust, is exempt provides a specific deduction of $1,000 in 26 CFR part 1, § 1.664–1(c)(1) revised as
from all of the taxes imposed by subtitle computing the amount of unrelated business of April 2, 2007).
A of the Code for any taxable year of the taxable income. Under the facts presented in (d) * * *
trust, except a taxable year beginning this example, there are no other (2) * * * All taxes imposed by
before January 1, 2007, in which it has modifications under section 512(b). The chapter 42 of the Code (including
unrelated business taxable income. For trust, therefore, has unrelated business without limitation taxes treated under
taxable years beginning after December taxable income of $9,000 ($10,000 minus the section 664(c)(2) as imposed by chapter
31, 2006, an excise tax, treated as $1,000 deduction under section 512(b)(12)).
Undistributed ordinary income from prior
42) and, for taxable years beginning
imposed by chapter 42, is imposed on prior to January 1, 2007, all taxes
years is $12,000 and undistributed capital
charitable remainder trusts that have gains from prior years are $50,000. Under the imposed by subtitle A of the Code for
unrelated business taxable income. See terms of the trust agreement, the trust is which the trust is liable because it has
paragraph (c) of this section. required to pay an annuity of $100,000 for unrelated business taxable income, shall
* * * * * year 2007 to the noncharitable beneficiary. be allocated to corpus. * * *
(c) Excise Tax on Charitable Because the trust has unrelated business * * * * *
Remainder Trusts—(1) In general. For taxable income of $9,000, the excise tax
each taxable year beginning after imposed under section 664(c) is equal to the Linda E. Stiff,
amount of such unrelated business taxable Deputy Commissioner for Services and
December 31, 2006, in which a income, $9,000. The character of the
charitable remainder annuity trust or a Enforcement.
$100,000 distribution to the noncharitable
charitable remainder unitrust has any beneficiary is as follows: $56,000 of ordinary [FR Doc. E8–4576 Filed 3–6–08; 8:45 am]
unrelated business taxable income, an income ($44,000 from current year plus BILLING CODE 4830–01–P
excise tax is imposed on that trust in an $12,000 from prior years), and $44,000 of
amount equal to the amount of such capital gains. The $9,000 excise tax is
unrelated business taxable income. For allocated to corpus, and does not reduce the DEPARTMENT OF HOMELAND
this purpose, unrelated business taxable amount in any of the categories of income SECURITY
income is as defined in section 512, under paragraph (d)(1) of this section. At the
beginning of year 2008, the amount of Coast Guard
determined as if part III, subchapter F, undistributed capital gains is $6,000, and
chapter 1 subtitle A of the Internal there is no undistributed ordinary income.
Revenue Code applied to such trust. Example 2. During 2007, a charitable
33 CFR Part 117
Such excise tax is treated as imposed by remainder annuity trust with a taxable year [Docket No. USCG–2008–0010]
chapter 42 (other than subchapter E) beginning on January 1, 2007, sells real estate
and is reported and payable in generating gain of $40,000. Because the trust RIN 1625–AA09
accordance with the appropriate forms had obtained a loan to finance part of the
purchase price of the asset, some of the Drawbridge Operation Regulations;
and instructions. Such excise tax shall
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income from the sale is treated as debt- Mill Neck Creek, Oyster Bay, NY
be allocated to corpus and, therefore, is
financed income under section 514 and thus
not deductible in determining taxable constitutes unrelated business taxable AGENCY: Coast Guard, DHS.
income distributed to a beneficiary. (See income under section 512. The unrelated ACTION: Notice of proposed rulemaking.
paragraph (d)(2) of this section.) The debt-financed income computed under
charitable remainder trust income that section 514 is $30,000. Assuming the trust SUMMARY: The Coast Guard proposes to
is unrelated business taxable income receives no other income in 2007, the trust change the drawbridge operating

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12316 Federal Register / Vol. 73, No. 46 / Friday, March 7, 2008 / Proposed Rules

regulations governing the operation of Submitting Comments for one to the Docket Management
the Bayville Bridge, mile 0.1, across Mill If you submit a comment, please Facility at the address under ADDRESSES
Neck creek at Oyster Bay, New York. include the docket number for this explaining why one would be
This proposed rule would allow the rulemaking (USCG–2008–0010), beneficial. If we determine that one
bridge to open on signal between 7 a.m. indicate the specific section of this would aid this rulemaking, we will hold
and 11 p.m. from May 1 through document to which each comment one at a time and place announced by
October 31 and between 7 a.m. and 5 applies, and give the reason for each a later notice in the Federal Register.
p.m., Monday through Friday, from comment. We recommend that you Background and Purpose
November 1 through April 30. At all include your name and mailing address,
other times the bridge would open after an e-mail address, or a phone number in The Bayville Bridge has a vertical
a two-hour advance notice is given by the body of your document so that we clearance of 9 feet at mean high water,
calling the number posted at the bridge. can contact you if we have questions and 16 feet at mean low water in the
The purpose of this rule is to help regarding your submission. You may closed position. The existing
relieve the bridge owner from the submit your comments and materials by drawbridge operating regulations listed
burden of crewing the bridge during electronic means, mail, fax, or delivery at 33 CFR 117.5, require the bridge to
time periods that the bridge receives few to the Docket Management Facility at open on signal at all times.
requests to open while continuing to the address under ADDRESSES; but On March 8, 2007, the bridge owner,
meet the reasonable needs of navigation. please submit your comments and the County of Nassau Department of
DATES: Comments and related material materials by only one means. If you Public Works, requested a change to the
must reach the Coast Guard on or before submit them by mail or delivery, submit drawbridge operation regulations to
April 7, 2008. them in an unbound format, no larger help provide relief from the burden of
ADDRESSES: You may submit comments
than 81⁄2 by 11 inches, suitable for providing a draw tender at the bridge
identified by Coast Guard docket copying and electronic filing. If you during time periods when the bridge
number (USCG–2008–0010) to the submit them by mail and would like to seldom receives a request to open.
Docket Management Facility at the U.S. know that they reached the Facility, On April 13, 2007, the Coast Guard
Department of Transportation. To avoid please enclose a stamped, self-addressed authorized a temporary deviation with a
duplication, please use only one of the postcard or envelope. We will consider request for public comment in order to
following methods: all comments and material received test the proposed rule change. The
during the comment period. We may temporary test deviation was in effect
(1) Online: http://
change this proposed rule in view of from May 25, 2007 through November
www.regulations.gov.
them. 20, 2007, with a comment period open
(2) Mail: Docket Management Facility
(M–30), U.S. Department of Viewing Comments and Documents until November 30, 2007.
Transportation, West Building ground To view comments, as well as The Coast Guard received no
floor, Room W12–140, 1200 New Jersey documents mentioned in this preamble comments or complaints from mariners
Avenue, SE., Washington, DC. 20590– as being available in the docket, go to in response to the temporary test
0001. http://www.regulations.gov at any time. deviation.
(3) Hand Delivery: Room W12–140, Enter the docket number for this As a result of all the above
1200 New Jersey Avenue SE., rulemaking (USCG–2008–001) in the information, the Coast Guard is now
Washington, DC., 20590–0001, between Search box, and click ‘‘Go>>.’’ You may proposing to permanently change the
9 a.m. and 5 p.m., Monday through also visit either the Docket Management drawbridge operation regulations for the
Friday, except, Federal holidays. The Facility in Room W12–140, on the Bayville Bridge, mile 0.1, across Mill
telephone number is (202) 366–9329. ground floor of the DOT West Building Neck Creek at Oyster Bay, New York.
(4) Fax: (202) 493–2251. 1200 New Jersey Avenue, SE., Under this notice of proposed
FOR FURTHER INFORMATION CONTACT: Ms. Washington, DC, 20590–0001, between rulemaking the Bayville Bridge would
Judy Leung-Yee, Project Officer, First 9 a.m. and 5 p.m., Monday through be required to open on signal between
Coast Guard District, (212) 668–7165. Friday, except Federal holidays; or First 7 a.m. and 11 p.m., from May 1 through
If you have questions on viewing or Coast Guard District, Bridge Branch, October 31, and between 7 a.m. and 5
submitting material to the docket, call One South Street, New York, NY 10004 p.m., Monday through Friday, from
Renee V. Wright, Program Manager, between 9 a.m. and 5 p.m., Monday November 1 through April 30. At all
Docket Operations, telephone (202) through Friday, except Federal holidays. other times the draw would open on
366–9826. Privacy Act signal after at least a two-hour advance
SUPPLEMENTARY INFORMATION: notice is provided by calling the number
Anyone can search the electronic
posted at the bridge.
Public Participation and Request for form of all comments received into any
Comments of our dockets by the name of the Discussion of Proposed Rule
individual submitting the comment (or
We encourage you to participate in signing the comment), if submitted on This notice of proposed rulemaking
this rulemaking by submitting behalf of an association, business, labor would change the existing drawbridge
comments and related material. All union, etc.). You may review the operation regulations to help relieve the
comments received will be posted, Department of Transportation’s Privacy bridge owner from the burden of
without change, to http:// Act Statement in the Federal Register maintaining a draw tender at the bridge
www.regulations.gov and will include published on April 11, 2000 (65 FR during time periods the bridge seldom
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any personal information you have 19477), or you may visit http:// receives a request to open.
provided. We have an agreement with DocketsInfo.dot.gov. The Coast Guard believes this
the Department of Transportation (DOT) proposed change to the drawbridge
to use the Docket Management Facility. Public Meeting operation regulations is justified and
Please see DOT’s ‘‘Privacy Act’’ We do not now plan to hold a public that the reasonable needs of navigation
paragraph below. meeting. But you may submit a request will continue to be met as a result.

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Federal Register / Vol. 73, No. 46 / Friday, March 7, 2008 / Proposed Rules 12317

Regulatory Evaluation compliance, please contact, Commander Indian Tribal Governments


This proposed rule is not a (dpb), First Coast Guard District, Bridge This rule does not have tribal
‘‘significant regulatory action’’ under Branch, One South Street, New York, implications under Executive Order
section 3(f) of Executive Order 12866, NY 10004. The telephone number is 13175, Consultation and Coordination
Regulatory Planning and Review, and (212) 668–7165. The Coast Guard will with Indian Tribal Governments,
does not require an assessment of not retaliate against small entities that because it would not have a substantial
potential costs and benefits under question or complain about this rule or direct effect on one or more Indian
section 6(a)(3) of that Order. The Office any policy or action of the Coast Guard. tribes, on the relationship between the
of Management and Budget has not Collection of Information Federal Government and Indian tribes,
reviewed it under that Order. or on the distribution of power and
This proposed rule would call for no responsibilities between the Federal
We expect the economic impact of
new collection of information under the Government and Indian tribes.
this proposed rule to be so minimal that
Paperwork Reduction Act of 1995 (44
a full Regulatory Evaluation under the Energy Effects
U.S.C. 3501–3520).
regulatory policies and procedures of
DHS is unnecessary. Federalism We have analyzed this proposed rule
This conclusion is based on the fact under Executive Order 13211, Actions
A rule has implications for federalism Concerning Regulations That
that vessel traffic will still be able to under Executive Order 13132,
transit through the Bayville Bridge at Significantly Affect Energy Supply,
Federalism, if it has a substantial direct Distribution, or Use. We have
any time provided they give a two-hour effect on State or local governments and
advance notice during time periods the determined that it is not a ‘‘significant
would either preempt State law or energy action’’ under that order because
bridge is not crewed. impose a substantial direct cost of it is not a ‘‘significant regulatory action’’
Small Entities compliance on them. We have analyzed under Executive Order 12866 and is not
this proposed rule under that Order and likely to have a significant adverse effect
Under the Regulatory Flexibility Act have determined that it does not have
(5 U.S.C. 601–612), we have considered on the supply, distribution, or use of
implications for federalism. energy. The Administrator of the Office
whether this proposed rule would have
a significant economic impact on a Unfunded Mandates Reform Act of Information and Regulatory Affairs
substantial number of small entities. has not designated it as a significant
The Unfunded Mandates Reform Act energy action. Therefore, it does not
The term ‘‘small entities’’ comprises of 1995 (2 U.S.C. 1531–1538) requires
small businesses, not-for-profit require a Statement of Energy Effects
Federal agencies to assess the effects of under Executive Order 13211.
organizations that are independently their discretionary regulatory actions. In
owned and operated and are not particular, the Act addresses actions Technical Standards
dominant in their fields, and that may result in the expenditure by a The National Technology Transfer
governmental jurisdictions with State, local, or tribal government, in the and Advancement Act (NTTAA) (15
populations of less than 50,000. aggregate, or by the private sector of U.S.C. 272 note) directs agencies to use
The Coast Guard certifies under $100,000,000 or more in any one year. voluntary consensus standards in their
section 5 U.S.C. 605(b) that this Though this proposed rule would not regulatory activities unless the agency
proposed rule would not have a result in such an expenditure, we do provides Congress, through the Office of
significant economic impact on a discuss the effects of this rule elsewhere Management and Budget, with an
substantial number of small entities. in this preamble. explanation of why using these
This conclusion is based on the fact standards would be inconsistent with
that vessel traffic will still be able to Taking of Private Property
applicable law or otherwise impractical.
transit through the Bayville Bridge at This proposed rule would not affect a Voluntary consensus standards are
any time provided they give a two-hour taking of private property or otherwise technical standards (e.g., specifications
advance notice during time periods the have taking implications under of materials, performance, design, or
bridge is not crewed. Executive Order 12630, Governmental operation; test methods; sampling
If you think that your business, Actions and Interference with procedures; and related management
organization, or governmental Constitutionally Protected Property systems practices) that are developed or
jurisdiction qualifies as a small entity Rights. adopted by voluntary consensus
and that this rule would have a standards bodies.
significant economic impact on it, Civil Justice Reform This proposed rule does not use
please submit a comment (see This proposed rule meets applicable technical standards. Therefore, we did
ADDRESSES) explaining why you think it standards in sections 3(a) and 3(b)(2) of not consider the use of voluntary
qualifies and how and to what degree Executive Order 12988, Civil Justice consensus standards.
this rule would economically affect it. Reform, to minimize litigation,
Environment
eliminate ambiguity, and reduce
Assistance for Small Entities We have analyzed this proposed rule
burden.
Under section 213(a) of the Small under Commandant Instruction
Business Regulatory Enforcement Protection of Children M16475.lD which guides the Coast
Fairness Act of 1996 (Pub. L. 104–121), We have analyzed this proposed rule Guard in complying with the National
we want to assist small entities in under Executive Order 13045, Environmental Policy Act of 1969
understanding this proposed rule so that Protection of Children from (NEPA) (42 U.S.C. 4321–4370f), and
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they can better evaluate its effects on Environmental Health Risks and Safety have made a preliminary determination
them and participate in the rulemaking. Risks. This rule is not an economically that this action is not likely to have a
If the rule would affect your small significant rule and would not create an significant effect on the human
business, organization, or governmental environmental risk to health or risk to environment because it simply
jurisdiction and you have questions safety that might disproportionately promulgates the operating regulations or
concerning its provisions or options for affect children. procedures for drawbridges. We seek

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12318 Federal Register / Vol. 73, No. 46 / Friday, March 7, 2008 / Proposed Rules

any comments or information that may property, and prevent terrorist acts or indicate the specific section of this
lead to the discovery of a significant incidents. This rule would prohibit document to which each comment
environmental impact from this vessels and people from entering the applies, and give the reason for each
proposed rule. security zone and would require vessels comment. We recommend that you
and persons in the security zone to include your name and a mailing
List of Subjects in 33 CFR Part 117 address, an e-mail address, or a phone
depart the security zone, unless
Bridges. specifically exempt under the number in the body of your document
provisions in this rule or granted so that we can contact you if we have
Words of Issuance and Proposed
specific permission from the Coast questions regarding your submission.
Regulatory Text
Guard Captain of the Port Baltimore. You may submit your comments and
For the reasons discussed in the DATES: Comments and related material material by electronic means, mail, fax,
preamble, the Coast Guard proposes to must reach the Coast Guard on or before or delivery to the Docket Management
amend 33 CFR part 117 as follows: April 7, 2008. Facility at the address under ADDRESSES;
ADDRESSES: You may submit comments
but please submit your comments and
PART 117—DRAWBRIDGE material by only one means. If you
OPERATION REGULATIONS identified by Coast Guard docket
submit them by mail or delivery, submit
number USCG–2008–0114 to the Docket
1. The authority citation for part 117 them in an unbound format, no larger
Management Facility at the U.S.
continues to read as follows: than 81⁄2 by 11 inches, suitable for
Department of Transportation. To avoid
copying and electronic filing. If you
Authority: 33 U.S.C. 499; 33 CFR 1.05–1; duplication, please use only one of the
submit them by mail and would like to
Department of Homeland Security Delegation following methods:
know that they reached the Facility,
No. 0170.1. (1) Online: http://
please enclose a stamped, self-addressed
2. Add § 117.800 to read as follows: www.regulations.gov.
postcard or envelope. We will consider
(2) Mail: Docket Management Facility
all comments and material received
§ 117.800 Mill Neck Creek. (M–30), U.S. Department of
during the comment period. We may
The draw of the Bayville Bridge, mile Transportation, West Building Ground
change this proposed rule in view of
0.1, at Oyster Bay, New York, shall open Floor, Room W12–140, 1200 New Jersey
them. Given the amount of time
on signal between 7 a.m. and 11 p.m., Avenue, SE., Washington, DC 20590–
remaining before the papal Mass, after
from May 1 through October 31, and 0001.
considering comments we anticipate
between 7 a.m. and 5 p.m., Monday (3) Hand delivery: Room W12–140 on
making the temporary final rule
through Friday, from November 1 the Ground Floor of the West Building,
effective less than 30 days after
through April 30. At all other times the 1200 New Jersey Avenue, SE.,
publication. If we do so, we will explain
draw shall open on signal provided at Washington, DC 20590, between 9 a.m.
in that publication, as required by 5
least a two-hour advance notice is given and 5 p.m., Monday through Friday,
U.S.C. 553(d)(3), our good cause for
by calling the number posted at the except Federal holidays. The telephone
doing so.
bridge. number is 202–366–9329.
(4) Fax: 202–493–2251. Viewing Comments and Documents
Dated: February 28, 2008.
FOR FURTHER INFORMATION CONTACT: If To view comments, as well as
Timothy S. Sullivan,
you have questions on this proposed documents mentioned in this preamble
Rear Admiral, U.S. Coast Guard, Commander, rule, call Mr. Ronald Houck, at Coast as being available in the docket, go to
First Coast Guard District.
Guard Sector Baltimore, Waterways http://www.regulations.gov at any time,
[FR Doc. E8–4470 Filed 3–6–08; 8:45 am] Management Division, at telephone click on ‘‘Search for Dockets,’’ and enter
BILLING CODE 4910–15–P number (410) 576–2674 or (410) 576– the docket number for this rulemaking
2693. If you have questions on viewing (USCG–2008–0114) in the Docket ID
or submitting material to the docket, call box, and click enter. You may also visit
DEPARTMENT OF HOMELAND Renee V. Wright, Program Manager, either the Docket Management Facility
SECURITY Docket Operations, telephone 202–366– in Room W12–140 on the ground floor
Coast Guard 9826. of the DOT West Building, 1200 New
SUPPLEMENTARY INFORMATION: Jersey Avenue, SE., Washington, DC
33 CFR Part 165 20590, between 9 a.m. and 5 p.m.,
Public Participation and Request for Monday through Friday, except Federal
[Docket No. USCG–2008–0114] Comments holidays; or the Commander, U.S. Coast
We encourage you to participate in Guard Sector Baltimore, 2401 Hawkins
RIN 1625–AA87
this rulemaking by submitting Point Road, Building 70, Waterways
Security Zone; Anacostia River, comments and related materials. All Management Division, Baltimore,
Washington, DC comments received will be posted, Maryland, 21226–1791 between 8 a.m.
without change, to http:// and 3 p.m., Monday through Friday,
AGENCY: Coast Guard, DHS. www.regulations.gov and will include except Federal holidays.
ACTION: Notice of proposed rulemaking. any personal information you have
Privacy Act
provided. We have an agreement with
SUMMARY: The Coast Guard proposes to the Department of Transportation (DOT) Anyone can search the electronic
establish a temporary security zone to use the Docket Management Facility. form of all comments received into any
encompassing certain waters of the Please see DOT’s ‘‘Privacy Act’’ of our dockets by the name of the
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Anacostia River in order to safeguard paragraph below. individual submitting the comment (or
the public and high-ranking public signing the comment, if submitted on
officials attending a papal Mass on April Submitting Comments behalf of an association, business, labor
17, 2008, from terrorist acts and If you submit a comment, please union, etc.). You may review the
incidents. This action is necessary to include the docket number for this Department of Transportation’s Privacy
ensure the safety of persons and rulemaking (USCG–2008–0114), Act Statement in the Federal Register

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