1545-BN93 202504 Unified Agenda of Federal Regulatory and Deregulatory Actions 1545 Internal Revenue Service IRS 1500 Department of the Treasury TREAS Interest Capitalization Requirements for Improvements to Designated Property

The proposed regulations modify the interest capitalization requirements relating to improvements made to designated property.  Specifically, the proposed regulations clarify the definition of an improvement and remove the associated property rule and similar rules from the regulations. The proposed regulations follow the United States Court of Appeals for the Federal Circuit's rationale and holding in Dominion Resources, Inc. v. United States , 681 F.3d.1313 (Fed. Cir. 2012).

The IRS and Treasury solicited and received public comments on the proposed rule and are reviewing and considering those comments, to include those submitted after the comment period closed.

]]> Substantive, Nonsignificant Previously Published in The Unified Agenda Final Rule Stage No No Deregulatory 26 CFR 1.263A-B 26 CFR 1.263A-11 26 U.S.C. 7805 26 U.S.C. 263A No NPRM 05/15/2024 89 FR 42404 NPRM Comment Period End 07/15/2024 Final Action 05/00/2026 REG-133850-13 (NPRM) Drafter attorney: Max S. Fishman (202) 317-7007 Reviewer attorney: Elizabeth Boone (202) 317-7007 Treasury attorney: Dan Penrith (202) 679-2039 CC: ITA:6 No None No No https://www.federalregister.gov/documents/2024/05/15/2024-10579/interest-capitalization-requirements-for-improvements-to-designated-property https://www.regulations.gov/document/IRS-2024-0024-0001/comment No No Max Fishman S. Attorney 1545 Internal Revenue Service IRS 202 317-7007 855 576-2340 max.s.fishman@irscounsel.treas.gov 1111 Constitution Avenue NW, Washington DC 20224