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Domestic production activities deduction for agricultural, horticultural cooperatives (OIRA review completed)

Domestic production activities deduction

OMB’s Office of Information and Regulatory Affairs (OIRA) has completed its review of U.S. Treasury Department proposed regulations relating to application of the domestic production activities deduction for specified agricultural or horticultural cooperatives.

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Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before being issued, pursuant to Executive Order 13771. OIRA completed its review on May 17, 2019. The U.S. Treasury Department and IRS will now be expected to release these proposed regulations since OIRA review has been concluded.

The proposed regulations are listed on the OIRA website as:
 

  • RIN: 1545-BO90: Domestic production activities deduction for specified agricultural or horticultural cooperatives [TCJA]


OIRA’s description of these regulations is:

On March 23, 2018, Congress modified section 199A(g) to provide specified agricultural or horticultural cooperatives with a deduction similar to the repealed section 199 deduction effective retroactively to January 1, 2018, in H.R. 1625 - Consolidated Appropriations Act, 2018, Pub. L. 115-141 (H.R. 1625). Section 199A(g)(6) provides that the Secretary shall prescribe such regulations as are necessary, including regulations which prevent more than one taxpayer from being allowed a deduction under section 199A(g). Such regulations shall be based on the regulations applicable to cooperatives and their patrons under section 199 as in effect before its repeal.  

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