SECTION 7. COMMERCIAL

REVITALIZATION DEDUCTION ELECTION

.01 In general . The commercial revitalization deduction election provided by § 1400I(a) is made by each person owning the qualified revitalization building (for example, by the member of a consolidated group, the partnership, or the S corporation that owns the building). This election must be made for the taxable year in which the building is placed in service. The election only applies to the extent that qualified commercial revitalization expenditure amounts are allocated to the building by the commercial revitalization agency of the state in which the building is located. If the amount of that allocation exceeds the amount properly chargeable to a capital account for the building, the qualified revitalization expenditures eligible for the commercial revitalization deduction election are limited to the amount properly chargeable to a capital account for the building.

.02 Time and manner for making the election .

(1) In general . The commercial revitalization deduction election must be made by the due date (including extensions) of the federal tax return for the taxable year in which the qualified revitalization building is placed in service by the taxpayer. The election must be made in the manner prescribed in the instructions for Form 4562, Depreciation and Amortization . For 2002, the taxpayer should refer to the instructions for line 42 of Form 4562.

(2) Limited relief for late election . (a) Automatic 6-month extension . Pursuant to § 301.9100–2(b) of the Procedure and Administration Regulations, an automatic extension of 6 months from the due date of the federal tax return ( exclud- ing extensions) for the placed-in-service year of the qualified revitalization building is granted to make the commercial revitalization deduction election, provided the taxpayer timely filed the taxpayer’s federal tax return for the placed-in-service year and the taxpayer satisfies the requirements in § 301.9100–2(c) and § 301.9100–2(d).

(b) Other extensions . A taxpayer that fails to make the commercial revitalization de

June 16, 2003 1019 2003–24 I.R.B.

ing in a renewal community. This information will be used by the Service to verify that the taxpayer is entitled to the commercial revitalization deduction. The collections of information are required to obtain a benefit. The likely respondents are state or local governments and business or other for-profit institutions.

The estimated total annual reporting burden is 200 hours.

The estimated annual burden per respondent varies from 1 to 4 hours, depending on individual circumstances, with an estimated average of 2.5 hours. The estimated number of respondents is 80.

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be retained as long as their contents may 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.