SECTION 7. PAPERWORK

REDUCTION ACT

The collection of information contained in this notice has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–2000.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number.

The collections of information in this notice are in section 3. This information is required to be collected and retained in order for taxpayers to claim the new credit for the production of electricity from advanced nuclear power facilities under § 45J. The information will be used to determine the portion of the national megawatt capacity limitation to which a taxpayer’s facility is entitled. The collection of information is required to obtain a benefit. The likely respondents are corporations and partnerships.

The estimated total annual reporting burden is 600 hours.

2006–18 I.R.B. 857 May 1, 2006

to provide one advance refunding under the applicable rules of § 149(d) (notwithstanding § 149(d)(2)) after December 21, 2005, and before January 1, 2011, if the Governor of the State designates the Gulf Opportunity Zone Advance Refunding Bonds for purposes of § 1400N(b) and the requirements of § 1400N(b)(5) are met.

Section 1400N(b)(5) provides that the requirements of § 1400N(b)(5) are met with respect to any advance refunding of a bond described in § 1400N(b)(3) if: (1) no advance refundings of such bond would be allowed under the Internal Revenue Code on or after August 28, 2005; (2) the Gulf Opportunity Zone Advance Refunding Bonds is the only other outstanding bond with respect to the refunded bond; and (3) the requirements of § 148 are met with respect to all bonds issued under § 1400N(b).

Section 1400N(b)(6) provides that § 1400N(b) does not apply to any advance refunding of a bond which is issued as part of an issue if any portion of the proceeds of such issue (or any prior issue) was or (is to be) used to provide any property described in § 144(c)(6)(B).

3.03. Gulf Tax Credit Bonds

Section 1400N(l)(1) provides that a taxpayer that holds a Gulf Tax Credit Bond on one or more credit allowance dates of the bond occurring during any taxable year is allowed as a credit against Federal income tax for the taxable year an amount equal to the sum of the credits determined under § 1400N(l)(2) with respect to such dates.

In general, § 1400N(l)(2)(B) provides that the annual credit determined with respect to any Gulf Tax Credit Bond is the product of the credit rate determined by the Secretary for the day on which such bond was sold, multiplied by the outstanding face amount of the bond. Under § 1400N(l)(2)(C), with respect to any Gulf Tax Credit Bond, the Secretary shall determine daily or cause to be determined daily a credit rate which shall apply to the first day on which there is a binding, written contract for the sale or exchange of the bond. The credit rate for any day is the credit rate which the Secretary estimates will permit the issuance of Gulf Tax Credit Bonds with a specified maturity or redemption date without discount and without interest cost to the issuer.

of the Hurricane Katrina disaster area determined by the President to warrant individual or individual and public assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of Hurricane Katrina.

In general, § 1400N authorizes the states of Alabama, Louisiana and Mississippi to issue: (1) certain exempt facility bonds and qualified mortgage bonds pursuant to § 1400N(a) (“Gulf Opportunity Zone Bonds”), (2) advance refunding bonds pursuant to § 1400N(b) (“Gulf Opportunity Zone Advance Refunding Bonds”) and (3) tax credit bonds pursuant to § 1400(N)(l) (“Gulf Tax Credit Bonds”). Gulf Opportunity Zone Bonds and Gulf Opportunity Zone Advance Refunding Bonds must be issued before January 1, 2011. Gulf Tax Credit Bonds must be issued before January 1, 2007.