Ezel / IRS Rulings / 201103043

CCA 201103043: Counsel addresses the commercial revitalization deduction after a proposed extension

Number
201103043
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Commercial Revitalization Deduction
Topics
Other topics
Code sections
§ 1400I
Ruling dated
December 10, 2010
Publicly released
January 21, 2011
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that it was premature to decide how the IRS would treat allocations of commercial revitalization expenditures for 2010. At the time, proposed legislation would extend empowerment zone provisions through 2011 but would not extend renewal community provisions. Without an extension, the commercial revitalization deduction would expire for buildings placed in service after 2009.

Ruling snapshot

  • Question: How should 2010 commercial revitalization expenditures be treated while proposed legislation might change the governing provisions?
  • Outcome: Advice given
  • Key authorities: IRC § 1400I

Full text (IRS public release)

ID: CCA_2010121008234957 Number: 201103043
Release Date: 1/21/2011
Office: ------------
UILC: 1400I.00-00

From: ------------------
Sent: Friday, December 10, 2010 8:24:00 AM
To: ------------------------
Cc: ------------------------------------------------------------ Subject: RE: Baucus' tax cut bill and HUD's possible actions

Hi ------. Yesterday, Senate Majority Leader Harry Reid introduced in the U.S. Senate the tax bill that is the tax-cut compromise between President Obama and the Republicans. This bill extends the empowerment zone provisions through 2011 but does not extend the renewal community provisions. Without an extension, the commercial revitalization deduction expired for buildings placed in service after 2009. Accordingly, at this time, it is premature to consider how the IRS will treat allocations of commercial revitalization expenditures for 2010 as though the renewal community provisions are extended.

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