96-30315. Applicable Rate of Interest on Nonqualified Withdrawals From a Capital Construction Fund

[Federal Register Volume 61, Number 230 (Wednesday, November 27, 1996)]
[Notices]
[Page 60321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30315]


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DEPARTMENT OF TRANSPORTATION
DEPARTMENT OF TRANSPORTATION

Maritime Administration

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

DEPARTMENT OF THE TREASURY

Internal Revenue Service


Applicable Rate of Interest on Nonqualified Withdrawals From a 
Capital Construction Fund

    Under the authority in Section 607(h)(4)(B) of the Merchant Marine 
Act, 1936, as amended (the Act, 46 U.S.C. 1177(h)(4)(B)), we hereby 
determine and announce that the applicable rate of interest on the 
amount of additional tax attributable to any nonqualified withdrawals 
from a Capital Construction Fund established under Section 607 of the 
Act shall be 6.93 percent, with respect to nonqualified withdrawals 
made in the taxable year beginning in 1996.
    The determination of the applicable rate of interest with respect 
to nonqualified withdrawals was computed, according to the joint 
regulations issued under the Act (46 CFR 391.7(e)(2)(ii)), by 
multiplying eight percent by the ratio which (a) the average yield on 
5-year Treasury securities for the calendar year immediately preceding 
the beginning of such taxable year bears to (b) the average yield on 5-
year Treasury securities for the calendar year 1970. The applicable 
rate so determined was computed to the nearest one-hundredth of one 
percent.

    Dated: November 21, 1996.

    So Ordered By:

Maritime Administrator
Maritime Administration
Under Secretary for Oceans and Atmosphere/Administrator, National 
Oceanic and Atmospheric Administration
Assistant Secretary (Tax Policy) Department of the Treasury
Albert J. Herberger,
Maritime Administrator.
D. James Baker,
Under Secretary for Oceans and Atmosphere/Administrator, National 
Oceanic and Atmospheric Administration.
Donald C. Lubick,
Acting Assistant Secretary (Tax Policy).
[FR Doc. 96-30315 Filed 11-26-96; 8:45 am]
BILLING CODE 4910-81-P