Executive Order 8465—Regulations Governing Certifications of the Secretary of War and the Secretary of the Navy With Respect to Special Additional Equipment and Facilities Required To Facilitate Construction of Naval Vessels and Army and Navy Aircraft

By virtue of and pursuant to the authority vested in me by section 4 of the Act of June 28, 1940 (Public, No. 671, 76th Cong., 3d sess.), and as President of the United States, I hereby prescribe the following regulations governing certifications to the Commissioner of Internal Revenue by the Secretary of War or the Secretary of the Navy as to the percentage of cost of special additional equipment and facilities to be charged against a contract or subcontract for the construction or manufacture of any complete naval vessel or Mary or Navy aircraft or any portion thereof:

(1) As used in these regulations the term--

(a) 'Secretary of the Department concerned' means the Secretary of War or the Secretary of the Navy as the case may be.

(b) 'Contracting party' means the contractor or subcontractor as the case may be.

(2) No certification under the provisions of section 4 of the Act of June 28, 1940 (Public, No. 671, 76th Cong., 3d sess.) shall be made, in the case of any contract or subcontract or any contract or subcontract as modified, to the Commissioner of Internal Revenue by the Secretary of the Department concerned (and any certification made shall be ineffective) unless all the requirements of these regulations are met.

(3) Before a certification is made to the Commissioner of Internal Revenue, the contracting party shall file with the Secretary of the Department concerned a request for certification. Such request for certification shall--

(a) Specify and itemize the special additional equipment and facilities acquired (or to be acquired) to facilitate, during the national emergency declared by the President on September 8, 1939 to exist, the completion of any complete naval vessel or Army or Navy aircraft or any portion thereof;

(b) State the necessity and cost (or estimated cost) of each item of such equipment and the percentage of cost of each such item which the contracting party proposes to charge against the contract or subcontract; and

(c) State the action which the contracting party proposes to take in order that there shall be a compliance with the provisions of paragraph (6) of these regulations. If the request for certification is filed in the case of a subcontract or proposed subcontract, it shall be accompanied by a copy of such subcontract or proposed subcontract.

(4) Such a request for certification shall be filed by the contracting party prior to the 60th day after the close of the contracting party's first income taxable year within which is completed a contract or subcontract with respect to which the particular request for certification is made.

(5) On or before the date on which such request for certification is filed with the Secretary of the Department concerned, the contracting party shall file with the Commissioner of Internal Revenue at least three copies of such request for certification, together with at least three copies of excerpts of all such provisions of the contract, subcontract, or proposed contract or subcontract as are pertinent to such request for certification.

(6) No certification shall be made to the Commissioner of Internal Revenue with respect to any special additional equipment and facilities unless adequate measures have been taken by the Secretary of the Department concerned--

(a) To protect the interest of the Government in such special additional equipment and facilities, the cost, or portion of the cost, of which is borne by the Government and is chargeable against the contract or subcontract in accordance with the provisions of section 4 of the above-mentioned Act; and

(b) To provide that throughout the useful life of such special additional equipment and facilities the Government shall be given priority in the use thereof and that such special additional equipment and facilities shall be preserved for national defense purposes.

(7) The certification to the Commissioner of Internal Revenue in the case of any contract or subcontract may be made at any time prior to the 180th day after the close of the contracting party's income taxable year within which the contract or subcontract is completed, or prior to such later time as may be specified by the Commissioner of Internal Revenue, but no certification shall be made in the case of any contract or subcontract unless a certification has been made on all contracts or subcontracts previously completed on which the special additional equipment and facilities were used.

(8) Every certification made to the Commissioner of Internal Revenue by the Secretary of the Department concerned shall be executed in triplicate and shall--

(a) Specify and itemize the special additional equipment and facilities acquired (or to be acquired) to facilitate, during the national emergency declared by the President on September 8, 1939 to exist, the completion of any complete naval vessel or Army or Navy aircraft or any portion thereof;

(b) State the necessity and cost (or estimated cost) of each item of such equipment and facilities, and the percentage of cost of each such item to be charged against the contract or subcontract;

(c) Describe the measures which have been taken by the Secretary of the Department concerned to effect a compliance with the provisions of paragraph (6) of these regulations; and

(d) Contain, or be accompanied by, the contracting party's agreement to such certification.

(9) The Secretary of the Department concerned and the Commissioner of Internal Revenue may issue joint rules for the administration of section 4 of the above-mentioned Act and this Executive Order.

FRANKLIN D ROOSEVELT

The White House,
June 29, 1940.