This Announcement is issued pursuant to § 521(b) of Pub. L. 106-170, the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the Secretary of the Treasury to report annually to the public concerning advance pricing agreements (APAs) and the Advance Pricing and Mutual Agreement Program (APMA Program), formerly known as the Advance Pricing Agreement Program (APA Program). This twenty-fifth report describes the experience, structure, and activities of the APMA Program during calendar year 2023.

This Notice of Proposed Rulemaking revises the regulations pertaining to the advance notice to be provided to taxpayers prior to IRS contact with third parties to conform to the new statutory language of section 7602(c) enacted as part of the Taxpayer First Act of 2019 (TFA), Public Law 116-25 (133 Stat. 981). The proposed regulations also provide, pursuant to the Secretary’s authority in section 7602(c)(1)(B), exceptions to the 45-day advance notice requirement where delaying contact with third parties for 45 days after providing notice to the taxpayer would impair tax administration.

REG-101552-24, 2024-13 I.R.B. 741 (March 25, 2024) contains errors in the second sentence of the second column on page 743 and in the first sentence of the third column on page 746. These sentences incorrectly describe the requirement that members in an unincorporated organization reserve the right separately to take in kind or dispose of their pro rata shares of electricity produced, extracted or used, or any associated renewable energy credits or similar credits. This requirement was intended to be conjunctive, applying to both electricity and associated credits. The sentence on page 743 is corrected to read, “Second, the unincorporated organization’s members must enter into a joint operating agreement with respect to the applicable credit property in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced, extracted, or used, and any associated renewable energy credits or similar credits.” The sentence on page 746 is corrected to read, “(B) The members of which enter into a joint operating agreement in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced, extracted, or used, and any associated renewable energy credits or similar credits”.

This notice modifies Notice 2023-29, 2023-29 I.R.B. 1 (July 17, 2023), clarified by Notice 2023-45, 2023-29 I.R.B. 317 (July 17, 2023), by expanding the Nameplate Capacity Attribution Rule under section 4.02(1)(b) of Notice 2023-29 to include additional attribution property and by adding two 2017 North American Industry Classification System (NAICS) industry codes to the table in section 3.03(2) of Notice 2023-29 for purposes of determining the Fossil Fuel Employment rate (as defined in section 3.03(2) of Notice 2023-29).

This notice provides guidance for qualified student loan bonds to clarify certain requirements for tax-exempt bond financing for loan programs of general application approved by a State under § 144(b)(1)(B) (State Supplemental Loan programs). Specifically, this notice addresses eligibility of borrowers of loans through State Supplemental Loan programs and the loan size limitation for State Supplemental Loans. This notice also provides guidance on whether an issue of State or local bonds the proceeds of which are used to finance or refinance qualified student loans or to finance qualified mortgage loans is a refunding issue.

This Notice of Proposed Rulemaking (NPRM) would add a new regulation section promulgated under section 6011 of the Code to establish that Charitable Remainder Annuity Trust (CRAT) transactions described in the NPRM are listed transactions for purposes of Treasury Regulation § 1.6011-4 and sections 6111 and 6112. The transaction at issue is one in which taxpayers purport to eliminate recognition of ordinary income and/or capital gain on appreciated property contributed to a CRAT when the CRAT sells that property and purchases a single premium immediate annuity (SPIA). Taxpayers misapply the rules governing CRAT’s upon the sale of the appreciated property by the CRAT and also misapply the rules concerning the SPIA by treating the beneficiaries as the owners of the SPIA, rather than it being an asset of the CRAT funding the annuity payments from the trust.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) are issuing this revenue procedure to provide the process under § 48(e) of the Internal Revenue Code to apply for an allocation of environmental justice solar and wind capacity limitation (Capacity Limitation) as part of the low-income communities bonus credit program (Program) for the 2024 Program year. Additionally, this revenue procedure describes how the Capacity Limitation for the 2024 Program year will be divided across the facility categories described in §§ 48(e)(2)(A)(iii) and 1.48(e)-1(b)(2), the Category 1 sub-reservation described in § 1.48(e)-1(i)(1), and the additional selection criteria application options described in § 1.48(e)-1(h). Receipt of an allocation of Capacity Limitation increases the amount of an energy investment credit determined under § 48(a) for the taxable year in which certain solar and wind-powered electricity generation facilities are placed in service.

26 CFR 601.201: Rulings and determination letters.

Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2024 are set forth.

26 CFR 1.61-21: Taxation of Fringe Benefit

For purposes of the taxation of fringe benefits under section 61 of the Internal Revenue Code, section 1.61-21(g) of the Income Tax Regulations provides a rule for valuing noncommercial flights on employer-provided aircraft. Section 1.61-21(g)(5) provides an aircraft valuation formula to determine the value of such flights. The value of a flight is determined under the base aircraft valuation formula (also known as the Standard Industry Fare Level formula or SIFL) by multiplying the SIFL cents-per-mile rates applicable for the period during which the flight was taken by the appropriate aircraft multiple provided in section 1.61-21(g)(7) and then adding the applicable terminal charge. The SIFL cents-per-mile rates in the formula and the terminal charge are calculated by the Department of Transportation (DOT) and are reviewed semi-annually.

The following chart sets forth the terminal charge and SIFL mileage rates:

This notice modifies Notice 2023-29, 2023-29 I.R.B. 1 (July 17, 2023), clarified by Notice 2023-45, 2023-29 I.R.B. 317 (July 17, 2023), by expanding the Nameplate Capacity Attribution Rule under section 4.02(1)(b) of Notice 2023-29 to include additional attribution property and by adding two 2017 North American Industry Classification System (NAICS) industry codes to the table in section 3.03(2) of Notice 2023-29 for purposes of determining the Fossil Fuel Employment rate (as defined in section 3.03(2) of Notice 2023-29). These modifications are set forth in section 3 of this notice.

.01 In General. Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), amended §§ 45 and 48 of the Internal Revenue Code (Code)¹ to provide increased credit amounts or rates if certain requirements pertaining to energy communities are satisfied, and added new §§ 45Y and 48E, which provide increased credit amounts or rates for certain qualified facilities, energy projects, or energy storage technologies that satisfy similar requirements and that are placed in service after December 31, 2024.²

Notice 2023-29 describes certain rules that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to include in forthcoming proposed regulations for determining what constitutes an energy community, as defined in § 45(b)(11)(B) and as adopted by §§ 45Y(g)(7), 48(a)(14), and 48E(a)(3)(A), and for determining whether a qualified facility, an energy project, or energy storage technology is located in an energy community. Notice 2023-29 also provides that the Treasury Department and the IRS intend to propose that the forthcoming proposed regulations will apply to taxable years ending after April 4, 2023. Taxpayers may rely on the rules described in sections 3 through 6 of Notice 2023-29 until the proposed regulations are published.

Sections 45(b)(11), 48(a)(14), 45Y(g)(7), and 48E(a)(3)(A) provide the requirements that taxpayers must satisfy to qualify EC Projects (defined in section 2 of Notice 2023-29) for increased energy community bonus credit amounts or rates under those provisions of the Code. Section 2 of Notice 2023-29 provides that the term “EC Project” refers to: (1) a qualified facility eligible for a credit determined under § 45 or determined under § 45Y that is located in an energy community; (2) an energy project eligible for a credit determined under § 48, which may include qualified property for which a taxpayer has made a valid irrevocable election under § 48(a)(5) to treat such qualified property as energy property under § 48, that is placed in service within an energy community; or (3) a qualified investment with respect to a qualified facility or energy storage technology eligible for a credit determined under § 48E that is placed in service within an energy community.

Section 45(b)(11)(B) identifies three location-based categories of energy communities for purposes of §§ 45, 45Y, 48, and 48E, described in Notice 2023-29 as the Brownfield Category, the Statistical Area Category, and the Coal Closure Category. The Statistical Area Category includes a metropolitan statistical area (MSA) or non-metropolitan statistical area (non-MSA) that (1) has (or had at any time after December 31, 2009) 0.17 percent or greater direct employment (Fossil Fuel Employment) or 25 percent or greater local tax revenues (Fossil Fuel Tax Revenue) related to the extraction, processing, transport, or storage of coal, oil, or natural gas (as determined by the Secretary of the Treasury or her delegate (Secretary)); and (2) has an unemployment rate at or above the national average unemployment rate for the previous year (as determined by the Secretary).

Section 4 of Notice 2023-29 provides generally applicable rules for determining whether a qualified facility is located in an energy community under §§ 45 or 45Y, and under §§ 48 and 48E, whether an energy project, qualified facility, or energy storage technology, as applicable, is placed in service within an energy community. Section 4.02 of Notice 2023-29 provides that an EC Project is treated as located in or placed in service within an energy community if it satisfies either the Nameplate Capacity Test under section 4.02(1) of that notice or the Footprint Test under section 4.02(2) of that notice.

.02 The Nameplate Capacity Attribution Rule. Under the Nameplate Capacity Test, an EC Project that has nameplate capacity is considered located in or placed in service within an energy community if 50 percent or more of the EC Project’s nameplate capacity is in an area that qualifies as an energy community. The Nameplate Capacity Test includes a Nameplate Capacity Attribution Rule (described in section 4.02(1)(b) of Notice 2023-29). The Nameplate Capacity Attribution Rule provides that if an EC Project with offshore energy generation units has nameplate capacity but none of the EC Project’s energy-generating units are in a census tract, MSA, or non-MSA, then the Nameplate Capacity Test for such EC Project is applied by attributing all the nameplate capacity of such EC Project to the land-based power conditioning equipment that conditions energy generated by the EC Project for transmission, distribution, or use and that is closest to the point of interconnection. Section 3.01 of this notice expands the Nameplate Capacity Attribution Rule to include additional attribution property.

.03 NAICS codes used for determining the Fossil Fuel Employment rate. Section 3.03(2) of Notice 2023-29 provides that for purposes of determining whether an MSA or non-MSA is in the Statistical Area Category based on Fossil Fuel Employment, the relevant direct employment is determined by the number of people employed in the industries identified by the 2017 NAICS industry codes listed in the table in section 3.03(2) of Notice 2023-29. The Fossil Fuel Employment rate is determined as the number of people employed in the industries identified by the 2017 NAICS codes specified in the table and as listed in the annual County Files of the County Business Patterns (CBP) published by the Census Bureau, divided by the total number of people employed in that area. The Fossil Fuel Employment and total employment for each county in an MSA or non-MSA is aggregated for each year to determine whether the MSA or non-MSA meets the Fossil Fuel Employment threshold of 0.17 percent. Section 3.02 of this notice modifies the Fossil Fuel Employment rate determination by adding two NAICS codes to the table provided in section 3.03(2) of Notice 2023-29.

.01 Modification of the Nameplate Capacity Attribution Rule. Section 4.02(1)(b) of Notice 2023-29 is modified to read as follows:

(b) Nameplate Capacity Attribution Rule. If an EC Project with offshore energy generation units has nameplate capacity but none of the EC Project’s energy-generating units are in a census tract, MSA, or non-MSA, then the Nameplate Capacity Test for such EC Project is applied by attributing all the nameplate capacity of such EC Project to: (i) any land-based power conditioning equipment that conditions energy generated by the EC Project for transmission, distribution, or use before the energy is transmitted to the point of interconnection (or in the case of an EC Project with multiple points of interconnection, any land-based power conditioning equipment that conditions energy generated by the EC Project for transmission, distribution, or use before the energy is transmitted to one of the multiple points of interconnection); or (ii) any EC Project supervisory control and data acquisition (SCADA) equipment located in an EC Project Port. EC Project SCADA equipment is property owned by the taxpayer that owns the EC Project and is used to remotely monitor and control the EC Project’s operations. An EC Project Port is defined as a port used either full or part-time to facilitate maritime operations necessary for the installation or operation and maintenance of the EC Project, and with a significant long-term relationship with the EC Project at which staff employed by, or working as independent contractors for, the taxpayer that owns the EC Project are based and perform functions essential to the EC Project’s operations. A port will be considered to have a significant long-term relationship with the EC Project only if the taxpayer that owns the EC Project owns (in whole or in part) or leases (in whole or in part) under a lease agreement with a term of at least 10 years, the port in which the EC Project SCADA equipment is located. Staff employed by, or working as independent contractors for, the taxpayer that owns the EC Project will be considered based in an EC Project Port to perform functions essential to the EC Project’s operations only if the staff perform (collectively, if not individually) all of the following functions: management of marine operations, inventory and handling of spare parts and consumables, and berthing and dispatch of operation and maintenance vessels and associated crews and technicians.

.02 Modification of the Fossil Fuel Employment rate determination by the addition of two NAICS codes.

(1) The table in section 3.03(2) of Notice 2023-29 is modified to read as follows (new codes in bold):

(2) Appendix B to Notice 2023-29 provided the list of MSAs and non-MSAs that meet the Fossil Fuel Employment threshold described in § 45(b)(11)(B)(ii)(I) and section 3.03(2) of Notice 2023-29. Appendix 1 to this notice is a list of additional MSAs and non-MSAs that meet the Fossil Fuel Employment threshold described in Notice 2023-29 after including the two additional NAICS codes. Appendix 1 to this notice, Appendix B to Notice 2023-29, and Appendix 1 to Notice 2023-47 together provide the full list of MSAs and non-MSAs that meet the Fossil Fuel Employment threshold applicable to the period beginning on January 1, 2023.

(3) Appendix 2 to Notice 2023-47 is a list of MSAs and non-MSAs that qualify as energy communities because they meet the Fossil Fuel Employment threshold and have an unemployment rate at or above the national average unemployment rate for calendar year 2022 as described in § 45(b)(11)(B)(ii)(II) and section 3.03(3) of Notice 2023-29. Appendix 2 to this notice is a list of additional MSAs and non-MSAs that qualify as energy communities after including the two additional NAICS codes. Appendix 2 to this notice and Appendix 2 of Notice 2023-47 together provide the full list of energy communities in the Statistical Area Category for the period beginning on January 1, 2023. As provided in section 3.03(3) of Notice 2023-29, the energy community status for the MSAs and non-MSAs listed in Appendix 2 of Notice 2023-47 and Appendix 2 of this notice is effective as of January 1, 2023, and that status will continue until the list is updated based on unemployment rates for calendar year 2023.

Until the proposed regulations are published, taxpayers may rely on the rules described in sections 3 through 6 of Notice 2023-29, as previously clarified by Notice 2023-45 and modified by section 3 this notice, for taxable years ending after April 4, 2023.

Notice 2023-29 is modified as provided in section 3 of this notice. Except as provided in section 3 of this notice, this notice does not otherwise affect the guidance provided in Notice 2023-29.

The principal author of this notice is the Office of Associate Chief Counsel (Passthroughs & Special Industries). However, other personnel from the Treasury Department and the IRS participated in its development. For further information regarding this notice, call the energy security guidance contact number at (202) 317-5254 (not a toll-free number).

¹ Unless otherwise specified, all “section” or “§” references are to sections of the Code.

² See § 13101(g) of the IRA for the energy community provisions under § 45(b)(11), § 13102(o) of the IRA for the energy community provisions under § 48(a)(14), § 13701(a) of the IRA for the energy community provisions under § 45Y(g)(7), and § 13702(a) of the IRA for the energy community provisions under § 48E(a)(3)(A).

This notice provides guidance regarding qualified student loan bonds under § 144(b) of the Internal Revenue Code (Code)¹ to clarify certain requirements for tax-exempt bond financing for loan programs of general application approved by a State under § 144(b)(1)(B) (State Supplemental Loan programs). Specifically, this notice addresses eligibility of borrowers of loans through State Supplemental Loan programs and the loan size limitation for State Supplemental Loans. This notice also provides guidance regarding whether an issue of State or local bonds the proceeds of which are used to finance or refinance qualified student loans (as defined in § 1.150-1(b)) or to finance qualified mortgage loans (as defined in § 1.150-1(b)) is a refunding issue.

Section 144(b)(1) defines a “qualified student loan bond” for which tax-exempt private activity bonds may be issued to mean any bond issued as part of an issue the applicable percentage or more of the net proceeds of which are to be used directly or indirectly to make or finance student loans (that is, loans to pay the costs of postsecondary education) under two types of loan programs.

The first type of loan program, described in § 144(b)(1)(A), is the Federal Family Education Loan Program (FFELP) under the Higher Education Act of 1965, Pub. L. No. 89-329, 79 Stat. 1219 (Higher Education Act), under which education loans are indirectly Federally guaranteed. The FFELP loans that are eligible for tax-exempt bond financing under § 144(b)(1)(A) include, among other types of loans, loans made to parents of undergraduate students under the program known as the “PLUS” loan program. H.R. Conf. Rep. No. 99-841, at II-712 (1986); Sen. Rep. No. 99-313, at 842 (1986). The FFELP guarantee authority extends only to loans originated before July 1, 2010, and was discontinued for loans originated on or after that date. Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152, § 2201, 124 Stat. 1029, 1074 (2010).

The second type of loan program, described in § 144(b)(1)(B), is for State Supplemental Loans. Section 144(b)(1)(B) describes a State Supplemental Loan program as a program of general application approved by the State if no loan under such program exceeds the difference between (1) the total cost of attendance and (2) subject to certain stated exceptions, the other forms of student assistance for which the student borrower may be eligible. A program is not treated as described in § 144(b)(1)(B) if such program is described in § 144(b)(1)(A).

.01 Eligible borrower.

Notice 2015-78, 2015-48 I.R.B. 690, provides guidance regarding qualified student loan bonds, including the use of the proceeds of these bonds to make loans that refinance qualified student loans (refinancing loans). Section 3.1 of Notice 2015-78 provides that an eligible borrower of an original loan under a State Supplemental Loan program is a student (with or without a co-obligor or guarantor) or a parent (with or without a co-obligor or guarantor) borrowing on behalf of a child who is a student. Section 3.1 of Notice 2015-78 further provides that an eligible borrower of a refinancing loan under a State Supplemental Loan program is the student or parent borrower of the original loan.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) are aware of questions that have arisen as to whether, if the student was the original borrower, the parent of that student is an eligible borrower of a refinancing loan, and similarly, if the parent was the original borrower, whether the student on whose behalf the original loan was made is an eligible borrower of a refinancing loan. Section 4.01 of this notice clarifies that an eligible borrower of a refinancing loan includes either of these parties, regardless of which was the original borrower.

.02 Loan size limitation.

Notice 2015-78 also addresses the loan size limitation for a State Supplemental Loan. The amount of an original State Supplemental Loan must not exceed the difference between the total cost of attendance and other forms of student assistance for which the student may be eligible. Section 3.3 of Notice 2015-78 provides, for an original loan, that an issuer may rely on a certification of these amounts by the higher education institution at which the student is enrolled. For a refinancing loan, section 3.3 of Notice 2015-78 provides that (1) the original loan must have met the loan size limitation under § 144(b)(1)(B) and (2) the stated principal amount of the refinancing loan may not exceed the sum of the refinanced loan’s outstanding stated principal amount and any accrued but unpaid stated interest as of the date of the refinancing.

The Treasury Department and IRS are aware of issuers’ questions about how to establish, for purposes of a refinancing loan, that the original loan met the loan size limitation under § 144(b)(1)(B) and issuers’ concerns regarding the attendant administrative burden. Refinancing loans generally are sought after the students have finished their educations, and several years may have passed since the higher education institutions provided the information needed to determine the original loan amounts. Often, however, the original loans were made under the FFELP, another loan program under Title IV of the Higher Education Act, a State Supplemental Loan program, or other student loan program subject to the same loan size limitation as in § 144(b)(1)(B) or a stricter one. Section 4.02 of this notice provides that original loans made under these programs will be treated as meeting the loan size limitation under § 144(b)(1)(B). Section 4.02 of this notice also provides issuers with sources that can be used to ascertain the amounts of (1) the original loan, (2) the student’s total cost of attendance, and (3) other forms of student assistance for this purpose.

.03 Refunding bonds.

Section 1.150-1 provides definitions for all purposes of §§ 103 and 141 through 150, which are applicable to tax-exempt bonds. Section 1.150-1(d)(1) defines a “refunding issue” generally to mean an issue of obligations the proceeds of which are used to pay principal, interest, or redemption price on another issue, provided the obligor on both issues is the same person or a related party (as defined in § 1.150-1(b)). For this purpose, if proceeds are used to finance a purpose investment (as defined in § 1.148-1(b)), the obligor means the conduit borrower of the purpose investment rather than the actual issuer of the bonds, except that, for qualified mortgage loans, qualified student loans, and similar program investments (as defined in § 1.148-1(b)), the obligor does not include the ultimate recipients of the loans (for example, the homeowner or the student). Section 1.150-1(d)(2)(iii) provides, with one exception, that the actual issuer’s use of the proceeds of an issue that refunds a purpose investment determines whether that issue is also a refunding of the issue that originally financed the purpose investment. Section 1.150-1 does not provide a definition of “proceeds” for this purpose.

Questions have arisen regarding the determination of whether an issue that is used to refinance qualified student loans is a refunding issue. Issuers are concerned that if the borrowers of the refinancing loans repay their original loans and the issuer then uses the funds to redeem the bonds that financed the original loans, the bonds might be treated as refunding bonds and, given that this redemption would frequently occur more than 90 days after the issuance of the bonds financing the refinancing loans, potentially treated as taxable advance refunding bonds. If this were the case, issuers would be prevented from issuing tax-exempt bonds to refinance the qualified student loans of their existing borrowers. Another question concerns whether the use of investment proceeds from the repayments of qualified student loans or qualified mortgage loans allocated to one issue to redeem bonds of another issue, a practice sometimes referred to as “cross-calling,” results in bonds of the former issue being treated as taxable advance refunding bonds. An issuer engaged in cross-calling first uses proceeds of the issue to make qualified student loans or qualified mortgage loans and then uses the repayments of the loans to redeem bonds, generally selecting bonds with the highest interest rates. Section 4.03 of this notice addresses these questions.

Sections 4.01 and 4.02 of this notice apply for purposes of the requirements applicable to State Supplemental Loan programs financed with qualified student loan bonds under § 144(b). Section 4.03 of this notice applies to qualified student loan bonds under § 144(b) and qualified mortgage bonds under § 143.

.01 Eligible borrower. An eligible borrower of a refinancing loan under a State Supplemental Loan program includes the student or parent borrower of the original loan. An eligible borrower of a refinancing loan under a State Supplemental Loan program also includes a parent of the student borrower of an original loan (or a refinancing loan) and a child of a parent who borrowed an original loan (or a refinancing loan) on the child’s behalf.

.02 Loan size limitation.

(1) For purposes of establishing that the original loan to be refinanced met the loan size limitation under § 144(b)(1)(B), the original loan will be treated as having met the loan size limitation under § 144(b)(1)(B) if–

(a) The original loan was made under a student loan program that applied the same loan size limitation as in § 144(b)(1)(B) or a stricter one during the period when the original loan was made; for example, the FFELP and other loan programs under Title IV of the Higher Education Act and State Supplemental Loan programs (as described in § 144(b)(1)(B)), whether or not financed with tax-exempt bonds; or

(b) The previous lender, other holder, or loan servicer of the original loan certifies that the original loan amount did not exceed the difference between the total cost of attendance and other forms of student assistance as reported on the original loan application.

(2) In addition, to establish that the original loan to be refinanced met the loan size limitation under § 144(b)(1)(B), an issuer may rely on—

(a) The amount of the original loan as stated on the promissory note for the original loan or as otherwise provided by the previous lender, other holder, or loan servicer of the original loan; and

(b) The amounts of the student’s total cost of attendance and other forms of student assistance for the academic period for which the original loan was made—

(i) As reported on the original loan application and provided by either (A) the previous lender, other holder, or loan servicer of the original loan; or (B) the educational institution the student attended for the academic period of the original loan, or

(ii) As stated in the student’s financial aid award letter that is from the educational institution the student attended for the academic period and includes the amount of the original loan.

.03 Refunding bonds. An issue is not a refunding issue to the extent that the actual issuer reasonably expects as of the issue date of the issue to use net proceeds of the issue within two years of the issue date to refinance one or more obligations that are qualified student loans. For purposes of determining whether an issue is a refunding issue, proceeds means any sales proceeds, investments proceeds, or transferred proceeds (all as defined in § 1.148-1(b)), except that proceeds does not include investment proceeds (or transferred proceeds allocable to investment proceeds) received from investing in a qualified student loan or a qualified mortgage loan.

Sections 4.01 and 4.02 of this notice amplify Notice 2015-78.

This notice applies to bonds sold on or after April 15, 2024. An issuer may apply this notice to bonds sold before April 15, 2024.

The principal author of this notice is Johanna Som de Cerff of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this notice contact Jason Deirmenjian or Johanna Som de Cerff at (202) 317-6980 (not a toll-free number).

¹ Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).

This revenue procedure provides the process under § 48(e) of the Internal Revenue Code (Code)¹ to apply for an allocation of environmental justice solar and wind capacity limitation (Capacity Limitation) as part of the low-income communities bonus credit program (Program) for 2024 (2024 Program year). Solely with respect to the 2024 Program year, this revenue procedure supersedes Rev. Proc. 2023-27, 2023-35 I.R.B. 655, and provides important clarifying changes to the application, documentation, and lottery procedures that apply to the 2024 Program year. In addition, this revenue procedure describes how the Capacity Limitation for the 2024 Program year will be divided across the facility categories described in §§ 48(e)(2)(A)(iii) and 1.48(e)-1(b)(2), the Category 1 sub-reservations described in § 1.48(e)-1(i)(1), and the additional selection criteria application options described in § 1.48(e)-1(h). Receipt of an allocation increases the amount of an energy investment credit determined under § 48(a) (§ 48 credit) for the taxable year in which certain solar and wind-powered electricity generation facilities are placed in service.

.01 Section 13103 of Public Law 117–169, 136 Stat. 1818, 1921 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), added new § 48(e) to the Code. Section 48(e) increases the amount of the § 48 credit with respect to eligible property that is part of a qualified solar or wind facility that is awarded an allocation of Capacity Limitation as part of the Program. The § 48 credit for a taxable year is generally calculated by multiplying the basis of each energy property placed in service during that taxable year by the energy percentage (as defined in § 48(a)(2)). Section 48(e) increases the § 48 credit by increasing the energy percentage used to calculate the amount of the § 48 credit (§ 48(e) Increase) in the case of qualified solar and wind facilities that receive an allocation of Capacity Limitation.

.02 Section 48(e)(4) directs the Secretary of the Treasury or her delegate to establish a program, within 180 days of enactment of the IRA, to allocate amounts of Capacity Limitation to qualified solar and wind facilities. Notice 2023–17, 2023–10 I.R.B. 505, established the Program and provided definitions and other guidance related to the Program. On June 1, 2023, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) published in the Federal Register (88 FR 35791) a notice of proposed rulemaking (REG-110412-23, 2023-26 I.R.B. 1098) under § 48(e) (Proposed Rules) relating to the Program. On August 15, 2023, Treasury Decision 9979 was published in the Federal Register (88 FR 55506) to adopt the Proposed Rules with modifications as final regulations codified at § 1.48(e)-1 (Final Regulations).

.03 On August 28, 2023, the Treasury Department and the IRS published Rev. Proc. 2023-27, which provided guidance necessary to implement the Program for 2023 (2023 Program year), including the information an applicant must submit to apply for a Capacity Limitation allocation, the application review process, the manner of obtaining a Capacity Limitation allocation from the IRS, and the procedures and documentation requirements for reporting that a facility was placed in service. This revenue procedure supersedes Rev. Proc. 2023-27 solely with respect to the 2024 Program year and provides guidance necessary to implement the Program for the 2024 Program year. The procedures for the 2024 Program year provided in this revenue procedure generally follow those provided in Rev. Proc. 2023-27 with certain clarifying changes to the application and documentation requirements described in more detail in sections 3 through 13 of this revenue procedure.

.01 The amount of Capacity Limitation for the 2024 Program year available for allocation through the application process provided in this revenue procedure is limited to the annual Capacity Limitation of 1.8 gigawatts of direct current capacity plus any unallocated Capacity Limitation carried over from the 2023 Program year. If any such Capacity Limitation from the 2023 Program year is carried over to the 2024 Program year, the Treasury Department and the IRS will announce the distribution of that Capacity Limitation.

.02 As provided in § 1.48(e)-1(g), the annual Capacity Limitation available for allocation is divided across the four facility categories described in §§ 48(e)(2)(A)(iii) and 1.48(e)-1(b)(2). For the 2024 Program year, the Treasury Department and the IRS plan to distribute the annual Capacity Limitation of 1.8 gigawatts of direct current capacity as shown in Table 1. As described in § 1.48(e)-1(g), the Treasury Department and the IRS may later reallocate Capacity Limitation across facility categories in the event any category is oversubscribed or has excess capacity.

As provided in § 1.48(e)-1(i)(1), Category 1 Capacity Limitation is subdivided for each Program year, with a specific sub-reservation for eligible residential behind the meter (BTM) facilities. Accordingly, the 600 megawatts of Capacity Limitation for Category 1 facilities will be subdivided for facilities seeking a Category 1 allocation with 400 megawatts of Capacity Limitation reserved specifically for eligible residential BTM facilities described in § 1.48(e)-1(i)(2)(ii), including rooftop solar. The remaining 200 megawatts of Capacity Limitation distributed to Category 1 is available for applicants with front of the meter (FTM) facilities described in § 1.48(e)-1(i)(2)(iii) as well as non-residential BTM facilities that meet the requirements of § 1.48(e)-1(i)(2)(i).

.01 In general. An applicant (described in section 6 of this revenue procedure) must apply for an allocation of Capacity Limitation through Department of Energy’s (DOE) online Program portal system (Portal), available at https://eco.energy.gov/ejbonus/s/. The application must contain all information, documentation, and attestations specified in section 7 of this revenue procedure and any additional information required by DOE’s publicly available written procedures.

.02 Selection of the appropriate category or sub-reservation. Applicants must submit applications for a particular facility category described in § 1.48(e)-1(b)(2) (that is, Category 1 Facility, Category 2 Facility, Category 3 Facility, or Category 4 Facility). If the applicant is applying in Category 1, the applicant must also select the appropriate Category 1 sub-reservation described in § 1.48(e)-1(i) (that is, eligible residential BTM or other facilities located in low-income communities). In addition, applicants must select the appropriate application option (for example, additional selection criteria, if applicable) within the facility category or Category 1 sub-reservation to which they are applying. DOE will not move applications to a different facility category or Category 1 sub-reservation.

.03 One application for the 2024 Program year. Applicants may only submit one application per facility for the 2024 Program year. If, after submitting an application for a facility, the applicant decides that it would rather have the facility considered for an allocation under a different facility category or Category 1 sub-reservation, the applicant must withdraw the first application and submit a second application under the other facility category or Category 1 sub-reservation. If DOE identifies that an applicant has submitted more than one application for a facility (and the applicant has not withdrawn a previously submitted application(s)), any application submitted after the first submitted application will be considered a duplicate application and will be treated as withdrawn.

.04 Opening and closing dates of 2024 Program year application period. The Treasury Department and the IRS will publicly announce the opening and closing dates for the 2024 Program year application period on DOE’s landing page for the Program (Program Homepage), available at https://www.energy.gov/justice/low-income-communities-bonus-credit-program. DOE will not accept new application submissions for the 2024 Program year after 11:59 PM ET on the date the application period closes.

.01 In general. The owner of the solar or wind facility is the person who must apply for an allocation of Capacity Limitation. If the facility is determined to be eligible for an allocation, and there is Capacity Limitation available to allocate, the owner of the facility is the recipient of the allocation of Capacity Limitation.

.02 Disregarded entities. If a qualified solar or wind facility is owned by an entity that is disregarded as separate from its owner for federal income tax purposes, the owner of the disregarded entity is the owner of the facility and is the applicant.

.03 Partnerships and S corporations. If a qualified solar or wind facility is owned by a partnership or S corporation, then the partnership or S corporation, and not its partners or shareholders, is the owner of the facility and is the applicant. For unincorporated organizations that have made or will make an election under § 761(a) to be excluded from the application of subchapter K of chapter 1 of the Code (subchapter K), the organization, and not its members, is the applicant.

.01 Registration in general. Applicants must register in the Portal before they can begin the application process. Potential applicants should follow DOE’s publicly available procedures to register in the Portal and to submit applications. To register, applicants must first create a login.gov account before accessing the Portal. After a login.gov account has been created, the user can register as the applicant in the Portal. See the Applicant User Guide, which can be found on the Program Homepage, for more information. Applications may be submitted only through the Portal.

.02 Application Submission. The applicant must submit their application, including any required information, documentation, and attestations required by section 7 of this revenue procedure, under penalties of perjury. The person completing and submitting the application must have personal knowledge of the facts related to the application and be a person who is legally authorized to (1) bind the applicant entity for federal income tax purposes, including providing, under penalties of perjury, the attestations under sections 7.06, 7.07, 7.08 and 10.02 of this revenue procedure; (2) communicate with DOE about the application prior to and after submission of the application; and (3) receive notifications, letters, and other communications from DOE and the IRS about the Program. For example, an application may be authorized by an officer of a corporation, a general partner of a state law partnership, a member-manager on behalf of a limited liability company, a trustee on behalf of a trust, or the proprietor in the case of a sole proprietorship. The person submitting the application must attest through the Portal that they have the requisite authority to legally bind the applicant with respect to federal income tax matters.

.03 Applicant Information. The application must include the following identifying information of the applicant:

(1) The name of the applicant;

(2) The unique federal taxpayer identification number for the applicant. Unless a transfer request is reviewed and approved by the IRS or the unincorporated organization has made a § 761(a) election to be excluded from the application of subchapter K (see section 13 of this revenue procedure), the taxpayer identification number of the applicant must match the taxpayer identification number of the taxpayer that will claim the energy percentage increase under § 48(e), or, in the case of a partnership or S corporation, the partnership or S corporation that owns the facility when it is placed in service;

(3) The applicant’s address;

(4) If the applicant is a subsidiary corporation of a consolidated group filing a consolidated federal income tax return, the legal name and federal taxpayer identification number of the parent corporation of the consolidated group; and

(5) Any other information required by DOE’s publicly available written procedures.

.04 Facility Information.

(1) In general. The application requires the applicant to provide the information about the facility described in section 7.04(2) and 7.04(3) of this revenue procedure.

(2) Facility maximum net output and nameplate capacity.

(a) Wind facility. Applicants seeking an allocation for a wind facility must report the expected maximum net output of the facility defined as the nameplate capacity of the facility in alternating current. Wind facilities selected for an allocation will be awarded an amount of Capacity Limitation in direct current that is equal to the facility’s reported nameplate capacity in alternating current.

(b) Solar facility. Applicants seeking an allocation for a solar facility must report the expected maximum net output of the facility as measured in alternating current and the nameplate capacity of the facility in direct current. Solar facilities selected for an allocation will be awarded an amount of Capacity Limitation in direct current that is equal to the facility’s reported nameplate capacity in direct current.

(3) Facility location. Applicants are required to report the location of the facility, including street address (if applicable) and coordinates (latitude and longitude).

.05 Documentation.

(1) In general. Applicants must submit the documentation specified in sections 7.05(2) and 7.05(3) of this revenue procedure with an application for an allocation of Capacity Limitation. An application is not complete and may be rejected if any required documentation is not included.

(2) Facility documentation. As specified in Table 2, the following documents are required for each facility for which an application is submitted:

(3) Facility category specific document. The application must include the following documents for the applicable facility category:

.06 Attestations.

(1) In general. Each applicant must make the required attestations as specified in sections 7.06(2) and 7.06(3) of this revenue procedure. The attestations in sections 7.06(2) and 7.06(3) are included as part of the application in the Portal. An applicant will be unable to submit their application if any required attestations are not completed.

(2) For all facilities. As specified below in Table 4, the following attestations are required for each facility for which an application is submitted:

(3) Facility and category specific attestations. The application must include the following attestations for the applicable facility category:

.07 Ownership Criteria documentation and attestation. In addition to the information, documentation, and attestations required above, any applicant purporting to meet the Additional Selection Criteria for Ownership Criteria, as described under § 1.48(e)-1(h)(2), must submit with their application the documentation specified below to demonstrate that they meet the Ownership Criteria.

(1) Tribal Enterprise. An applicant claiming to be a Tribal Enterprise must provide proof of inclusion of its Indian Tribal government (Tribal government) owner on the current list of Tribal entities recognized and eligible for funding and services by the Bureau of Indian Affairs (BIA).

(2) Alaska Native Corporation. An applicant claiming to be an Alaska Native Corporation (ANC) must provide a copy of the relevant portions of the ANC’s articles of incorporation and bylaws (and any relevant amendments), including the first page with the title of the document and, if applicable, the signature pages.

(3) Renewable Energy Cooperative. An applicant that claims to be a Renewable Energy Cooperative, as described under § 1.48(e)-1(h)(2)(v), must provide a copy of its articles of incorporation and bylaws. The applicant must highlight the relevant language in these documents that demonstrates the entity meets either the consumer/purchasing cooperative requirements under § 1.48(e)-1(h)(2)(v)(A) or is a worker cooperative controlled by its worker-members with each member having an equal voting right as described under § 1.48(e)-1(h)(2)(v)(B).

(4) Qualified Renewable Energy Company. Applicants claiming to be a qualified renewable energy company (QREC), as described in § 1.48(e)-1(h)(2)(vi), must provide documentation to support each of the below requirements in a single package upload.

(a) Statement of business purpose attestation. The applicant must submit the following attestation: “I declare that the business purpose of this organization is to serve low-income communities and provide pathways for the adoption of clean energy by low-income households, as required under § 1.48(e)-1(h)(2)(vi).” This attestation must be signed by the applicant and uploaded as an Additional Selection Criteria Ownership Criteria document in the Portal.

(b) At least 51 percent ownership requirement. The applicant must provide documentation which demonstrates that the applicant entity meets the at least 51 percent ownership requirements under § 1.48(e)-1(h)(2)(vi)(A)-(F).

(i) For applicants whose equity interests are at least 51 percent owned and controlled by one or more individuals, the applicant must provide a list of all individuals with an equity interest in the entity and specify for each individual the percentage of their ownership interest in the applicant entity.

(ii) For applicants whose equity interests are at least 51 percent owned and controlled by a Community Development Corporation (CDC), the applicant must submit (1) a copy of the award letter, or other communication, from the Department of Housing and Urban Development (HUD) demonstrating that the CDC which owns and controls the applicant has received financial assistance under HUD’s Urban and Rural Special Impact Programs (42 U.S.C. 9806); and (2) documentation showing the CDC owns and controls the applicant entity.

(iii) For applicants whose equity interests are at least 51 percent owned and controlled by an agricultural or horticultural cooperative, documentation demonstrating that the applicant entity is at last 51 percent owned and controlled by an agricultural or horticultural cooperative,

(iv) For applicants whose equity interests are at least 51 percent owned and controlled by a Tribal government, the applicant entity must provide (1) documentation that its Tribal government owner is on the current list of Tribal entities recognized and eligible for funding and services by the BIA; and (2) documentation showing the Tribal government owns and controls the applicant entity.

(v) For applicants whose equity interests are at least 51 percent owned and controlled by an ANC, the applicant must provide (1) a copy of the ANC’s Articles of Incorporation and bylaws (including any amendments); and (2) documentation showing the ANC owns and controls the applicant entity.

(vi) For applicants whose equity interests are at least 51 percent owned and controlled by a Native Hawaiian organization (NHO), the applicant must provide (1) documentation which demonstrates the legal status of the NHO; and (2) documentation showing the NHO owns and controls the applicant entity.

(c) Employment and gross receipts. The applicant entity must provide documentation that demonstrates it meets the employment and gross receipts requirements under § 1.48(e)-1(h)(2)(vi)(G). To demonstrate this, the applicant entity must provide the following documentation:

(i) A list of all current employees of the applicant, indicating the number of full-time and full-time equivalent employees, as provided in § 1.48(e)-1(h)(2)(vi)(G).

(ii) A copy of a federal tax filing for the previous tax year listing the applicant entity’s gross receipts.

(iii) Either a statement providing that the applicant does not have any affiliates or, if the applicant has affiliates, a summary list of each affiliate entity of the applicant and a list of all current employees of affiliates, indicating the number of full-time and full-time equivalent employees, as provided in § 1.48(e)-1(h)(2)(vi)(G), and a list of affiliate entity gross receipts from the previous taxable year, broken down by each affiliate entity.

(d) Installation, operation, or services requirement. The applicant entity must provide documentation to demonstrate the applicant meets the requirements of § 1.48(e)-1(h)(2)(vi)(H) or (I).

(i) To demonstrate that the applicant meets the requirements of § 1.48(e)-1(h)(2)(vi)(H), the applicant must provide (1) documentation indicating the QREC has been in existence and operating for at least two years; and (2) an executed (by each party) contract, in its entirety (including any amendments, appendices, consumer disclosures, and schedules, and dated at least two years prior to the date of application to this Program), to install and/or operate a qualified facility as defined in § 48(e)(2)(A).

(ii) To demonstrate that the applicant meets the requirements of § 1.48(e)-1(h)(2)(vi)(I), the applicant must provide a list of all qualified solar or wind facilities, as defined in § 48(e)(2)(A), to which the applicant has provided services in eligible low-income communities, the geographic coordinates of each facility, and the nameplate capacity of each facility. For any selection of the facilities in the list which cumulatively amount to at least 100 kW in nameplate capacity, the applicant must provide executed contracts (in their entirety, inclusive of any amendments, appendices, consumer disclosures, and schedules) to install and/or operate the facility.

(5) Qualified tax-exempt entity. An applicant claiming to be a qualified tax-exempt entity described in § 1.48(e)-1(h)(2)(vii) must provide documentation supporting its claim as described below.

(a) An applicant claiming to be described in § 501(c)(3), § 501(c)(12), or § 501(d) must provide the following:

(i) If its exempt status is currently recognized by the IRS, proof of listing in IRS Pub. 78, Cumulative List of Organizations Described in § 170(c) (see the “Tax Exempt Organization Search” page on the IRS website), or in the Exempt Organizations Business Master File Extract (also available on the IRS website), such as a screenshot within the last 30 days, or, if issued within the last 12 months, a copy of its IRS determination letter or a letter from the IRS affirming its exempt status. See Pub. 4573, Group Exemptions, for information on group exemptions and returns.

(ii) If its exempt status has never been recognized by the IRS, a copy of its annual information return or notice under § 6033 filed within the last two years (if it has so filed). Section 501(c)(3) and 501(c)(12) organizations file a Form 990-series return or notice such as Form 990, Return of Organization Exempt from Tax. Section 501(d) organizations file Form 1065, U.S. Return of Partnership Income.

(iii) If an applicant’s exempt status has never been recognized by the IRS and it has not filed an annual information return or notice within the last two years, the applicant must provide other documentation demonstrating that it is described in § 501(c)(3), § 501(c)(12), or § 501(d) (such as its governing documents) and demonstrating that it is currently excepted from, or otherwise in compliance with, its exemption application requirements and information return filing requirements, unless it is a church or a convention or association of churches described in § 170(b)(1)(A)(i), in which case it may submit the following attestation, uploaded by the applicant in the Portal, signed by a person authorized to bind the entity: “Solely for purposes of the § 48(e) credit, I certify that Entity is a church or a convention or association of churches described in § 170(b)(1)(A)(i). I further certify that I am an officer of the Entity and that I am duly authorized to sign this statement on behalf of the Entity.”

(iv) An applicant described in § 501(c)(12) must also demonstrate that it is a corporation that operates on a cooperative basis and explain, in a statement uploaded by the applicant in the Portal, the extent to which it is engaged in furnishing electric energy to persons in rural areas.

(b) An applicant claiming to be a State, the District of Columbia, a Tribal government (as defined in § 30D(g)(9)⁸), a political subdivision of any of the foregoing,⁹ or an agency or instrumentality of any of the foregoing,¹⁰ must provide the following:

(i) A private letter ruling issued by the IRS ruling on its status, if any, or

(ii) An attestation signed under penalties of perjury, by a person authorized to bind the applicant, certifying that, to the best of the person’s knowledge and belief, that the entity is a State, the District of Columbia, a Tribal government, a political subdivision of any of the foregoing, or an agency or instrumentality of any of the foregoing, and acknowledging that this representation is not for the purpose of examination or inspection within the meaning of IRC § 7605(b). The attestation must be uploaded as part of the application in the Portal by the applicant. In addition to the acknowledgment described above, the attestation must include the following statement: “Solely for purposes of the § 48(e) credit, the applicant qualifies as a [insert the entity type as described above in this section].”

(iii) In the case of an applicant claiming to be a Tribal government, a subdivision of a Tribal government, or an agency or instrumentality of any of the foregoing, proof that the Tribe is on the current list of Tribal entities recognized and eligible for funding and services published by the BIA, available on the BIA website.

(6) Qualifying entity in a partnership. If an applicant does not itself meet the Ownership Criteria described in § 1.48(e)-1(h)(2), but the applicant is an entity treated as a partnership for federal income tax purposes, and an entity described in § 1.48(e)-1(h)(2) and section 7.07 of this revenue procedure (that is, an entity that meets the Ownership Criteria) owns at least a one percent interest (either directly or indirectly) in each material item of partnership income, gain, loss, deduction, and credit and is a managing member or general partner (or similar title) under State law of the partnership (or directly owns 100 percent of the equity interests in the managing member or general partner) at all times during the existence of the partnership, the qualified solar or wind facility owned by the applicant will be deemed to meet the Ownership Criteria. In addition to providing the documentation described in section 7.07 of this revenue procedure with respect to the relevant partner meeting the requirements of § 1.48(e)-1(h)(2) (that is, the partner which the applicant is claiming meets the Ownership Criteria), the applicant must also submit documentation to demonstrate that the requirements described in § 1.48(e)-1(h)(2)(ii)(B) are satisfied if the applicant is claiming to meet the Ownership Criteria based on this provision.

.08 Geographic Criteria attestation. If the applicant claims that it meets the Additional Selection Criteria for Geographic Criteria described in § 1.48(e)-1(h)(3) with respect to Categories 1, 3, or 4, it must provide an attestation that the qualifying facility will be located in a Persistent Poverty County (PPC) or in a census tract that is designated as disadvantaged in the Climate and Economic Justice Screening Tool (CEJST) as defined in § 1.48(e)-1(h)(3).¹¹

.01 In general. DOE will review applications for the Program and provide a recommendation to the IRS regarding whether to award an applicant an amount of Capacity Limitation with respect to a facility. Based on DOE’s recommendation, the IRS will award the applicant a Capacity Limitation allocation or reject the application.

.02 Order of application review and recommendation for allocation.

(1) First 30 days. When the application period opens for the 2024 Program year, there will be a 30-day period during which applications will initially be accepted for each facility category. All applications submitted within the first 30-days will be treated as submitted on the same date and at the same time. DOE will publicly announce on the Program Homepage the opening and closing dates of the 30-day period. All applications submitted by 11:59 PM ET on the closing date will be considered submitted during the initial 30-day period. Refer to section 8.02(3) of this revenue procedure for information regarding the lottery for applications submitted during the first 30 days in oversubscribed facility categories or Category 1 sub-reservations.

(2) Applications submitted after the 30-day period. Following the 30-day period, DOE will continue to accept applications until the close of the 2024 Program year application period. Provided there is remaining Capacity Limitation in a facility category or Category 1 sub-reservation, DOE will review applications submitted in those facility categories or Category 1 sub-reservation after the 30-day period. Within each facility category or Category 1 sub-reservation, DOE will make recommendations for an allocation of Capacity Limitation with respect to applications submitted after the close of the 30-day period in the order in which applications are received in a particular facility category or Category 1 sub-reservation. The IRS will award Capacity Limitation allocations in the order that it receives recommendations from DOE.

(3) Lottery for applications submitted during the 30-day period. For oversubscribed facility categories and Category 1 sub-reservations, DOE will conduct a lottery at the end of the 30-day period described in section 8.02(1) of this revenue procedure for applications submitted during that period. The lottery is conducted prior to application review. Lottery scores will be used to determine which qualified facilities are eligible for a recommendation for an allocation of Capacity Limitation if a facility category or Category 1 sub-reservation is oversubscribed. Refer to section 8.03(2) of this revenue procedure for information regarding how applications meeting Additional Selection Criteria are prioritized over other applications. Regardless of an application’s lottery score, a facility will not receive a recommendation for an allocation of Capacity Limitation if the facility and the application with respect to that facility do not meet the requirements of the Final Regulations and this revenue procedure.

(4) Close of program year. After the IRS awards all the Capacity Limitation within each facility category or Category 1 sub-reservation, or the 2024 Program year is closed, DOE will cease review of any remaining applications. At the end of the 2024 Program year, no further action will be taken on applications submitted but not awarded an allocation. DOE will publicly announce on the Program Homepage when the 2024 Program year closes.

.03 Processing Additional Selection Criteria applications.

(1) In general. Fifty percent of the Capacity Limitation in each facility category will be reserved for qualified solar or wind facilities meeting the Ownership Criteria described in § 1.48(e)-1(h)(2) and the Geographic Criteria described in § 1.48(e)-1(h)(3). This reservation will remain beyond the initial 30-day period described in section 8.02(1) of this revenue procedure. However, as described in § 1.48(e)-1(h)(1), the Treasury Department and the IRS may later decide to reallocate reserved capacity across facility categories and Category 1 sub-reservations in the event one facility category or Category 1 sub-reservation is oversubscribed and another has excess capacity. Allocations for facilities meeting one or more of the Additional Selection Criteria will be made from the 50-percent reserve for such facilities before additional amounts reserved for a facility category are allocated to facilities meeting these criteria. If the 50-percent reserve is depleted, however, applications meeting the Additional Selection Criteria submitted during the initial 30-day period are prioritized with respect to all available Capacity Limitation in each facility category or Category 1 sub-reservation as provided in section 8.03(2) of this revenue procedure.

(2) Review of Additional Selection Criteria applications. If a facility category or Category 1 sub-reservation is oversubscribed at the end of the 30-day period, applications purporting to meet one or more Additional Selection Criteria are included in the lottery (described in section 8.02(3) of this revenue procedure) with non-Additional Selection Criteria applications for that oversubscribed Category or Category 1 sub-reservation. However, applications purporting to meet one or more Additional Selection Criteria as a group will be prioritized for an allocation over non-Additional Selection Criteria applications within the same facility category or Category 1 sub-reservation. DOE will use lottery scores to determine which qualified facilities are eligible for a recommendation for an allocation of Capacity Limitation if a facility category or Category 1 sub-reservation is oversubscribed. If the eligible applications for Capacity Limitation for facilities that meet at least one of the two Additional Selection Criteria exceed the Capacity Limitation for a facility category or Category 1 sub-reservation, applications purporting to meet both of the Additional Selection Criteria receive a higher score so that they are prioritized over other applications within each facility category or Category 1 sub-reservation. If upon DOE review it is determined that an application does not meet one or both Additional Selection Criteria purported in the application, then the application’s score may be reduced resulting in a change to the application’s priority status.

.04 Cure period for application defects.

(1) In general. If the assigned DOE reviewer identifies a defect with a submitted application, such as missing or incorrect information or documentation, DOE will contact the applicant via the Portal. The reviewer will request that the applicant submit additional information or documentation to correct or complete the application via the Portal.

(2) Timing for applicant response. An applicant that is contacted by a DOE reviewer to submit additional information or documentation or provide corrected information will have 12 business days (12-business day cure period) to respond and provide such requested information or documentation.

(3) Consequences for failure to respond or provide information. If an applicant fails to respond and provide the requested information or documentation within the 12 business-day cure period, DOE will cease review and mark the application as withdrawn. The applicant may create and submit a new application for review, at a later date, if the facility remains eligible and the Program is still accepting applications.

.01 In general. The IRS will send final decision letters through the Portal to inform applicants of the outcome of the application process. For any applicant that receives an award of Capacity Limitation, the letter will state the amount of the allocated Capacity Limitation.

.02 Allocation amount. The Capacity Limitation allocated to a facility will be determined based on the nameplate capacity of the facility as stated in the application. The Capacity Limitation allocation will be provided in direct current. For wind facilities, alternating current will be treated as equivalent to direct current for purposes of determining the amount of a Capacity Limitation allocation. The facility that receives the final allocation of Capacity Limitation in each facility category or Category 1 sub-reservation may receive an allocation less than its nameplate capacity.

.01 In general. To satisfy the requirements of § 1.48(e)-1(k), for any facility that receives an allocation of Capacity Limitation, the owner of the facility must report to DOE through the Portal the date the facility was placed in service.

.02 Documentation and attestation requirements. To satisfy the requirements of § 1.48(e)-1(k), the owner must provide the following through the Portal:

(1) A Permission to Operate (PTO) letter (or commissioning report for off-grid facilities) confirming that the facility has been placed in service and the location of the facility being placed in service;

(2) A Final, Professional Engineer (PE) stamped (if required by applicable state or local law) as-built design plan, PTO letter with nameplate capacity listed, or other documentation from an unrelated party verifying as-built nameplate capacity;

(3) For Category 3 Facilities, a Benefits Sharing Statement as defined in § 1.48(e)-1(e)(6) demonstrating that the financial benefits requirements will be met based on the expected annual energy produced by the as-built facility at placed in service;

(4) For Category 4 Facilities, a final list of low-income households served with name, address, subscription share, and the income verification method used. Alternatively, if financial benefits are delivered through a utility or government body where the utility or government body cannot provide a final list of low-income households served with all relevant details, documentation issued from the participating utility or government body (for example, a Public Utility Commission, state energy office, or Tribal government) or the program administrator acting on behalf of the utility or government body that confirms that the facility is participating in a low-income program that ensures that at least fifty percent of the facility’s total output is assigned to qualifying low-income households under § 48(e)(2)(C)(i) or (ii) (Qualifying Household). If documentation is submitted from the participating utility, government body, or program administrator, the documentation must also include additional information, such as a copy of the relevant statute or regulatory order, that confirms that the low-income program in which the facility is participating requires the facility to serve multiple Qualifying Households; and

(5) For Category 4 Facilities, a spreadsheet demonstrating the expected financial benefit to low-income subscribers to demonstrate the 20 percent bill credit discount rate.

(6) An attestation confirming that a disqualification event under § 1.48(e)-1(m)(1) through (5) has not occurred.

(7) An attestation stating that the person submitting the information and documentation at placed in service is authorized to legally bind the owner, and that, under penalties of perjury, they have examined the submission, including any accompanying documents, and that, to the best of their knowledge and belief, all of the facts contained therein are true, correct, and complete.

A Capacity Limitation allocation or a notification that a facility has met the eligibility requirements under the Program at the time the facility is placed in service is not a final determination that property is eligible for an increased credit under § 48(e). The IRS may, upon examination, determine that property does not qualify for the increased credit.

.01 In general. After the facility is placed in service, and the owner submits the additional documentation and attestations described in § 1.48(e)-1(k) and section 10 of this revenue procedure, the owner is notified that it (or the applicable partners or shareholders in the case of a partnership or an S corporation) may claim the energy percentage increase on Form 3468, Investment Credit (or successor form) or Form 3800, General Business Credit (or successor form), if eligible, make an elective payment election under § 6417, or, if eligible, make a transfer election under § 6418.

.02 Reduction in Increased Energy Percentage. In cases where the facility size is larger than the allocated capacity when placed in service (but still below 5 MW AC), the 10 percentage or 20 percentage point increase will be reduced by a reduction factor which is calculated by the amount of Capacity Limitation allocated (kW) divided by the total nameplate capacity installed (kW) at the time the owner of the facility claims the energy percentage increase under § 48(e). See § 48(e)(1)(B).

.01 In general. Except as otherwise provided in this section 13, a Capacity Limitation allocation award applies only to the taxpayer who applied for and received an allocation award for the facility the taxpayer owns. If a taxpayer wants to request a transfer of an allocation, it should refer to DOE’s publicly available written procedures to initiate a transfer request in the Portal. Transfer requests will be reviewed and approved by the IRS. The IRS intends to provide future guidance regarding unincorporated organizations that elect to be excluded from the application of subchapter K.

.02 Additional Selection Criteria. Applicants who received an allocation based on the Additional Selection Criteria should refer to § 1.48(e)-1(m)(5) regarding potential disqualification if the original applicant does not retain the requisite interest described in § 1.48(e)-1(m)(5) in an entity treated as a partnership for federal income tax purposes that owns the facility.

Solely with respect to the 2024 Program year, this revenue procedure supersedes Rev. Proc. 2023-27.

This revenue procedure applies to the 2024 Program year.

This revenue procedure is not creating a new collection of information as described by the Paperwork Reduction Act (44 U.S.C. 3507(d)). The collections of information contained within this revenue procedure, and their associated burdens, have been submitted to the Office of Management and Budget as part of TD 9979 and was approved under OMB Control Number 1545-2308.

The principal author of this revenue procedure is the Office of Associate Chief Counsel (Passthroughs & Special Industries). However, other personnel from the Treasury Department and the IRS participated in its development. For further information regarding this revenue procedure, call the energy security guidance contact number at (202) 317-5254 (not a toll-free number).

¹ Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).

² As defined in § 1.48(e)-1(i)(2)(iii), for the purposes of the Program, a qualified solar or wind facility is front of the meter (FTM) if it is directly connected to a grid and its primary purpose is to provide electricity to one or more offsite locations via such grid or utility meters with which it does not have an electrical connection; alternatively, FTM is defined as a facility that is not BTM. For the purposes of Category 4, a qualified solar or wind facility is also FTM if 50 percent or more of its electricity generation on an annual basis is physically exported to the broader electricity grid.

³ As defined in § 1.48(e)-1(i)(2)(i), a qualified wind or solar facility is behind the meter (BTM) if (1) it is connected with an electrical connection between the facility and the panelboard or sub-panelboard of the site where the facility is located, (2) it is to be connected on the customer side of a utility service meter before it connects to a distribution or transmission system (that is, before it connects to the electricity grid), and its primary purpose is to provide electricity to the utility customer of the site where the facility is located. This also includes systems not connected to a grid and that may not have a utility service meter, and whose primary purpose is to serve the electricity demand of the owner of the site where the system is located.

⁴ If the applicant is not a party named in the contract, the applicant must provide with the applicable contract a statement explaining why the applicant is not named in the contract and the relationship between the appropriate entity named in the contract and the applicant—the latter of which must be the owner of the facility to be eligible to apply for an allocation of Capacity Limitation.

⁵ If an affidavit is provided, it must be signed by an individual with authority to bind the applicant.

⁶ Non-ministerial permits are permits in which one or more officials or agencies consider various factors and exercise some discretion in deciding whether to issue or deny permits. This does not include ministerial permits based upon a determination that the request complies with established standards such as electrical or building permits. Non-ministerial permits typically come with conditions and usually require public notice or hearings. Examples of non-ministerial permits include local planning board authorization, conditional use permits, variances, and special orders.

⁷ For Category 1, the applicant must attest that the facility will be located in a low-income community, as defined in the Final Regulations for the Program, specifically § 1.48(e)-1. A map that captures applicable census tracts will be available in DOE’s publicly available written procedures to assist applicants. For Category 2, the applicant must attest that the facility will be located on Indian Land as defined in § 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2)).

⁸ For a general discussion of Tribal governments and their subdivisions, see Section 5.12 of Rev. Proc. 2024-1, 2024-1 IRB 1, and § 7871.

⁹ For a general discussion of political subdivisions of States, see Rev. Rul. 77-164, 1977-1 C.B. 20, Rev. Rul. 78-276, 1978-2 C.B. 256, and Rev. Rul. 83-131, 1983-2 C.B. 184.

¹⁰ For a general discussion of agencies and instrumentalities of governments, see Rev. Rul. 57-128, 1957-1 C.B. 311, Rose v. Long Island Railroad Pension Plan, 828 F.2d 910, 918 (2d Cir. 1987), cert. denied, 485 U.S. 936 (1988), and Bernini v. Federal Reserve Bank of St. Louis, Eighth District, 420 F. Supp. 2d 1021 (E.D. Mo. 2005).

¹¹ Maps that capture applicable census tracts are available in DOE’s publicly available written procedures to assist applicants.

This Announcement is issued pursuant to § 521(b) of Pub. L. 106-170, the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the Secretary of the Treasury to report annually to the public concerning advance pricing agreements (APAs) and the Advance Pricing and Mutual Agreement Program (APMA Program), formerly known as the Advance Pricing Agreement Program (APA Program). The first report covered calendar years 1991 through 1999. Subsequent reports covered each calendar year 2000 through 2022 separately. This twenty-fifth report describes the experience, structure, and activities of the APMA Program during calendar year 2023. It does not provide guidance regarding the application of the arm’s length standard.

Part I of this report includes information on the structure, composition, and operation of the APMA Program; Part II presents statistical data; and Part III includes general descriptions of various elements of the APAs executed in 2023, including types of transactions covered, transfer pricing methods used, and completion time.

John M. Wall

Acting Director, APMA Program

[Pub. L. 106-170 § 521(b)(2)(A)]

In February 2012, the former APA Program was moved from the Office of Chief Counsel to the Office of Transfer Pricing Operations¹ within the Large Business and International Division of the IRS and combined with the U.S. Competent Authority staff responsible for transfer pricing cases, thereby forming the APMA Program (APMA).

As of December 31, 2023, APMA’s APA cases were handled by 70 team leaders, 29 economists, 12 managers, and 3 assistant directors.² Each assistant director oversees four managers who lead teams consisting of both team leaders and economists. APMA’s main office is in Washington, DC, and it also has offices in northern California, southern California, and the Atlanta, Boston, Chicago, Denver, Miami, New York, and Seattle metropolitan areas.

On August 31, 2015, the current revenue procedure governing APA applications was published in 2015-35 I.R.B. on page 263. Revenue Procedure (Rev. Proc.) 2015-41 provides guidance, information and instructions on APA requests and the administration of APAs. Rev. Proc. 2015-41 updates and supersedes Rev. Proc. 2006-9, 2006-1 C.B. 278, as modified by Rev. Proc. 2008-31, 2008-1 C.B. 1133, which is also superseded.

The model for APAs covered by Rev. Proc. 2006-9 was updated to serve as the current model APA for APAs covered by Rev. Proc. 2015-41. The model APA is included as Appendix 1 to this report. A list of primary APMA contacts is available at https://www.irs.gov/businesses/corporations/apma-contacts.

[Pub. L. 106-170 § 521(b)(2)(C)(i-viii)]

The charts above illustrate the number of complete applications filed per year and the percentage of bilateral requests received in 2023 per foreign country. As of December 31, 2023, APMA had also received 22 user fee filings that were not yet accompanied by a substantially complete APA application, in addition to the 167 complete APA applications.

In 2023, the percentage of renewals executed decreased (47 percent of all APAs executed in 2023 versus 55 percent of all APAs executed in 2022). The charts above illustrate trends in the number of APAs executed per year and the countries involved in the bilateral APAs that were executed in 2023.

As the top chart illustrates, the number of pending requests decreased slightly relative to December 31, 2022. As of December 31, 2023, almost half of the pending bilateral APA requests involved either Japan or India.

[Pub. L. 106-170 § 521(b)(2)(D) and (E)]

Nature of the Relationships

§ 521(b)(2)(D)(i)

As in prior years, more than half of the APAs executed in 2023 involved transactions between non-U.S. parents and U.S. subsidiaries.

Covered Transactions, Functions and Risks, and Tested Parties

§ 521(b)(2)(D)(ii-iii)

Most of the transactions¹⁰ covered in APAs executed in 2023 involve the sale of tangible goods or the provision of services. Eighteen percent of the transactions involve the use of intangible property, which can be among the most challenging transactions in APMA’s inventory.

In the majority of APAs, the covered transactions involve numerous business functions and risks. For instance, with respect to functions, APAs involving manufactured products typically involve a controlled group that conducts research and development (R&D), engages in product design and engineering, manufactures the product, markets and distributes the product, and performs support functions such as legal, finance, and human resources. Regarding risks, the controlled group may assume a variety of risks, including market risks, R&D risks, financial risks, credit and collection risks, product liability risks, and general business risks. In the APA evaluation process, a significant amount of time and effort is devoted to understanding how functions and risks are allocated among the controlled group of companies that are party to the covered transactions. For methods requiring the selection of a tested party, the tested party chosen generally will be the least complex of the controlled taxpayers.

Consistent with prior years, a majority of tested parties¹¹ in 2023 were U.S. distributors, U.S. manufacturers, or U.S. service providers.

Amount of Time Taken to Complete New and Renewal APAs

§ 521(b)(2)(E)

Table 7: Months to Complete New and Renewal APAs Executed in 2023

	Unilateral		Bilateral		Unilateral & Bilateral
	Average	Median	Average	Median	Average	Median
New	45.2	34.9	50.0	49.9	49.4	49.9
Renewal	30.2	25.2	36.1	33.1	34.9	31.8
New & Renewal	35.8	31.6	43.7	42.6	42.5	42.0

Median completion time decreased in 2023 to 42.0 months (from 43.4 months in 2022).

ADVANCE PRICING AGREEMENT

between

[Insert Taxpayer’s Name]

and

THE INTERNAL REVENUE SERVICE

PARTIES

The Parties to this Advance Pricing Agreement (APA) are the Internal Revenue Service (IRS) and [Insert Taxpayer’s Name], EIN ________.

RECITALS

[Insert Taxpayer Name] is the common parent of an affiliated group filing consolidated U.S. tax returns (collectively referred to as “Taxpayer”) and is entering into this APA on behalf of itself and other members of its consolidated group.

Taxpayer’s principal place of business is [City, State]. [Insert general description of Taxpayer and other relevant parties].

This APA contains the Parties’ agreement on the best method for determining arm’s-length prices of the Covered Issues under I.R.C. section 482, the Treasury Regulations thereunder, and any applicable tax treaties.

{If renewal, add} [Taxpayer and IRS previously entered into an APA covering taxable years ending _____ to ______, executed on ________.]

COVERED ISSUES AND COVERED METHOD

CRITICAL ASSUMPTIONS

This APA’s critical assumptions are:

1. The business activities, functions performed, risks assumed, assets employed, and financial and tax accounting methods and classifications [and methods of estimation] of Taxpayer in relation to the Covered Issues will remain materially the same as described or used in Taxpayer’s APA Request. A mere change in business results will not be a material change.

[Insert additional provisions as needed.]

APA RECORDS AND ANNUAL REPORT

APA Records

The APA Records will consist of all documents listed below for inclusion in the Annual Report, as well as all documents, notes, work papers, records, or other writings that support the information provided in such documents.

Annual Report

The Annual Report will include:

DEFINITIONS

The following definitions control for all purposes of this APA. The definitions appear alphabetically below:

APA ANNUAL REPORT SUMMARY FORM

The APA Annual Report Summary on the next page is a required APA Record. The APA Team Leader supplies some of the information requested on the form. Taxpayer is to supply the remaining information requested by the form and submit the form as part of its Annual Report.

APA Information

APA Annual Report Information

Date Annual Report Filed (to be filled in by APMA):

¹ In 2017, Transfer Pricing Operations became Treaty & Transfer Pricing Operations ("TTPO").

² In late 2020, TTPO's Treaty Assistance and Interpretation Team (TAIT) joined APMA, bringing the total number of groups in APMA to four. The three legacy APMA groups have primary responsibility for cases arising under the business profits and associated enterprises articles of U.S. tax treaties. TAIT endeavors to resolve competent authority issues arising under all other articles of U.S. tax treaties including issues arising under U.S. tax treaties relating to estate and gift taxes. As such, TAIT is separate from APMA's APA program, and the total numbers of team leaders and managers handling APA cases do not include TAIT analysts and managers.

³ The first APA Statutory Report, which compiled APA data from 1991-1999, did not report the cumulative number of applications for those years by submission type, so the cumulative totals cannot be reported in that manner.

⁴ “Executed APAs” refers to APAs that were finalized and includes both initial and renewal APAs.

⁵ The number of renewals executed is included in the total number of APAs executed during the year.

⁶ The number of renewals still pending as of year-end is also included in the total number of pending APAs.

⁷ The first APA Statutory Report, which compiled APA data from 1991-1999, and the second APA Statutory Report, which compiled APA data for 2000, did not report the cumulative number of applications for those years by submission type, so the cumulative totals cannot be reported in that manner.

⁸ See supra note 7.

⁹ Industries in the Miscellaneous Manufacturing subsector (NAICS Code 339) make a wide range of products that cannot readily be classified in specific NAICS manufacturing subsectors.

¹⁰ APAs often cover more than one type of transaction.

¹¹ Not all the executed APAs involve a tested party. Whether an APA involves a tested party would depend on the transfer pricing method used.

¹² See Treas. Reg. § 1.482-5(b)(4)(ii)(A).

¹³ See Treas. Reg. § 1.482-5(b)(4)(ii)(B).

¹⁴ The majority of APAs that covered services transactions also included tangible/intangible transactions, which were not tested under a separate PLI.

This document contains corrections to REG-101552-24 as published on Monday, March 25, 2024 (I.R.B. 2024-13, 741). In particular, this announcement corrects the following administrative items.

Correction 1:

In the Explanation of Provisions, the second sentence of the second column on page 743 incorrectly describes the requirement that members in an unincorporated organization reserve the right separately to take in kind or dispose of their pro rata shares of electricity produced, extracted or used, or any associated renewable energy credits or similar credits. The sentence is corrected to read, “Second, the unincorporated organization’s members must enter into a joint operating agreement with respect to the applicable credit property in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced, extracted, or used, and any associated renewable energy credits or similar credits.”

Correction 2:

Proposed §1.761-2(a)(4)(ii)(B) incorrectly requires that members in an unincorporated organization reserve the right separately to take in kind or dispose of their pro rata shares of electricity produced, extracted or used, or any associated renewable energy credits or similar credits. The sentence is corrected to read, “(B) The members of which enter into a joint operating agreement in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced, extracted, or used, and any associated renewable energy credits or similar credits,”.

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and public hearing.

SUMMARY: This document contains proposed regulations that would identify certain charitable remainder annuity trust (CRAT) transactions and substantially similar transactions as listed transactions, a type of reportable transaction. Material advisors and certain participants in these listed transactions would be required to file disclosures with the IRS and would be subject to penalties for failure to disclose. The proposed regulations would affect participants in these transactions as well as material advisors but provide that certain organizations whose only role or interest in the transaction is as a charitable remainderman will not be treated as participants in the transaction or as parties to a prohibited tax shelter transaction subject to excise taxes and disclosure requirements. Finally, this document provides notice of a public hearing on the proposed regulations.

DATES: Comments: Electronic or written comments must be received by May 24, 2024. Public Hearing: A public hearing on the proposed regulation is scheduled for July 11, 2024, at 10 a.m. ET. Requests to speak and outlines of topics to be discussed at the public hearing must be received by May 24, 2024. If no outlines are received by May 24, 2024, the public hearing will be cancelled. Requests to attend the public hearing must be received by 5 p.m. on July 9, 2024.

ADDRESSES: Commenters are strongly encouraged to submit public comments electronically via the Federal eRulemaking Portal at https://regulations.gov (indicate IRS and REG-108761-22) by following the online instructions for submitting comments. Requests for a public hearing must be submitted as prescribed in the “Comments and Requests for a Public Hearing” section. Once submitted to the Federal eRulemaking Portal comments cannot be edited or withdrawn. The Department of the Treasury (Treasury Department) and the IRS will publish availability any comments submitted to the IRS’s public docket. Send paper submission to CC:PA:01:PR (REG-108761-22) room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Charles D. Wien of the Office of Associate Chief Counsel (Passthroughs & Special Industries), (202) 317-5279; concerning submissions of comments and requests for hearing, Vivian Hayes at (202) 317-6901 (not toll-free numbers) or by sending an email to publichearings@irs.gov (preferred).

SUPPLEMENTARY INFORMATION:

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains proposed regulations relating to the notice that the IRS must provide to a taxpayer in advance of IRS contact with a third party with respect to the determination or collection of the taxpayer’s tax liability, to reflect amendments made to the applicable tax law by the Taxpayer First Act of 2019. The regulations would affect taxpayers to whom the IRS must provide advance notice of IRS contact with such third parties.

DATES: Electronic or written comments and requests for a public hearing must be received by May 21, 2024.

ADDRESSES: Commenters are strongly encouraged to submit public comments electronically. Submit electronic submissions via the Federal eRulemaking Portal at https://www.regulations.gov (indicate IRS and IRS REG-117542-22) by following the online instructions for submitting comments. Requests for a public hearing must be submitted as prescribed in the “Comments and Requests for Public Hearing” section. Once submitted to the Federal eRulemaking Portal, comments cannot be edited or withdrawn. The Department of the Treasury (Treasury Department) and the IRS will publish any comments submitted electronically or on paper to the public docket. Send paper submissions to: CC:PA:01:PR (REG-117542-22), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Brittany Harrison of the Office of the Associate Chief Counsel (Procedure and Administration), (202) 317-6833 (not toll-free number); concerning the submission of comments and requests for a public hearing, Vivian Hayes, (202) 317-6901 (not toll-free number) or by sending an email to publichearings@irs.gov (preferred).

SUPPLEMENTARY INFORMATION: