Proposed regulations under section 987 of the Code provide guidance regarding the determination of the items of income or loss of a taxpayer with respect to a section 987 qualified business unit (QBU) as well as the timing, amount, character, and source of any section 987 gain or loss. A public hearing is scheduled for November 21, 2006.

Electricity produced from certain renewable resources; open-loop biomass. This notice sets forth interim guidance, pending the issuance of regulations, regarding the credit for electricity produced from open-loop biomass.

Extension of replacement period for livestock sold on account of drought. This notice explains the circumstances under which the 4-year replacement period under section 1033(e)(2) of the Code is extended for livestock sold on account of drought. The Appendix to this notice contains a list of counties that experienced exceptional, extreme, or severe drought conditions during the preceding 12 months. Taxpayers may use this list to determine if an extension is available.