Internal Revenue Bulletin 2022-43 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 2022–43
October 24, 2022
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
Rev. Proc 2022-31, page 339.
General Rules and Specifications for Substitute Forms
and Schedules. This procedure provides guidelines and
general requirements for the development, printing,
and approval of the 2022 substitute tax forms. This
procedure will be reproduced as the next revision of
Publication 1167. Rev. Proc. 2021-42 is superseded.
Rev. Proc 2022-37, page 377.
This procedure publishes the amounts of unused hous-
ing credit carryovers allocated to qualified states under
section 42(h)(3)(D) of the Code for calendar year 2022.
INCOME TAX
Notice 2022-41, page 304.
This notice expands the application of the permitted
change-in-status rules for health coverage under a sec-
tion 125 cafeteria plan (cafeteria plan). In particular,
this notice addresses the situation in which, during a
period of coverage (typically a plan year), a cafeteria
plan participant may wish to revoke the employee’s
election under the cafeteria plan for other-than-self-only
(family) coverage under a group health plan (other than
a flexible spending arrangement) in order to allow one
or more family members to enroll in a Qualified Health
Plan through a Health Insurance Exchange in the indi-
vidual market.
Notice 2022-46, page 306.
Following enactment of Public Law 117-169, 136 Stat.
1818 (August 16, 2022), commonly known as the Infla-
tion Reduction Act of 2022 (IRA), this notice requests
comments related to the clean vehicles provisions
under §§ 25E and 30D of the Internal Revenue Code.
Comments received in response to this notice will help
to inform development of guidance implementing §§
30D and 25E.
Notice 2022-47, page 312.
This notice requests comments on issues concerning
§§ 45X and 48C, as amended or added by Public Law
117-169, 136 Stat. 1818 (August 16, 2022), com-
monly known as the Inflation Reduction Act of 2022
(IRA).
Notice 2022-48, page 316.
Following enactment of Public Law 117-169, 136 Stat.
1818 (August 16, 2022), commonly known as the Infla-
tion Reduction Act of 2022 (IRA), this notice requests
comments regarding the provisions of §§ 25C, 25D,
45L and 179D of the Internal Revenue Code. Com-
ments received in response to the notice will help to
inform the development of guidance implementing §§
25C, 25D, 45L and 179D.
Notice 2022-49, page 321.
The notice requests comments on issues concerning §§
45, 48, 45U, 45Y, and 48E, as amended or added by
Public Law 117-169, 136 Stat. 1818 (August 16, 2022),
commonly known as the Inflation Reduction Act (IRA).
Notice 2022-50, page 325.
The notice requests comments on the elective payment
provisions under § 6417 and the elective credit trans-
fer provisions under § 6418 of the Internal Revenue
Code, as added by § 13801 of Public Law 117-169,
136 Stat. 1818 (August 16, 2022), commonly known
as the Inflation Reduction Act of 2022.
Finding Lists begin on page ii.

Notice 2022-51, page 331.
This notice requests comments on issues concerning
§§ 30C, 45, 45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C,
48E, and 179D, as amended or added by Public Law
117-169, 136 Stat. 1818 (August 16, 2022), com-
monly known as the Inflation Reduction Act (IRA) relat-
ing to the prevailing wage, apprenticeship, domestic
content, and energy community requirements for
increased or bonus credit or deduction amounts under
those sections.
Notice 2022-52, page 337.
The Department of the Treasury and the Internal Revenue
Service are issuing this notice to modify and amplify provi-
sions of Notice 2022–05, 2022–5 I.R.B. 457, by provid-
ing additional temporary relief from certain requirements
under § 42 of the Internal Revenue Code for qualified
low-income housing projects. This additional temporary
relief is provided due to unavoidable labor and supply-chain
disruptions delaying the construction, rehabilitation, and
restoration of properties throughout the United States.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
October 24, 2022 Bulletin No. 2022–43

Part III
Additional Permitted
Election Changes for
Health Coverage under
Section 125 Cafeteria
Plans
Notice 2022-41
PURPOSE
This notice expands the application
of the permitted change-in-status rules
for health coverage under a section 125
cafeteria plan (cafeteria plan). In particu-
lar, this notice addresses the situation in
which, during a period of coverage (typi-
cally a plan year), a cafeteria plan partic-
ipant may wish to revoke the employee’s
election under the cafeteria plan for oth-
er-than-self-only (family) coverage under
a group health plan (other than a flexible
spending arrangement (FSA)) in order
to allow one or more family members to
enroll in a Qualified Health Plan (QHP)
through a Health Insurance Exchange
(Exchange) in the individual market.
Under this notice, the employee will be
able to elect out of family coverage and
into self-only coverage (or family cover-
age including one or more already-cov-
ered related individuals) under that health
plan prospectively during a period of cov-
erage, provided specific conditions are
satisfied.
The Department of the Treasury and
the Internal Revenue Service intend to
modify the Income Tax Regulations under
section 125 of the Internal Revenue Code
(Code) consistent with the provisions of
this notice. Taxpayers may rely on the
guidance in this notice for plan amend-
ments allowing elections effective on or
after January 1, 2023.
This notice is being issued in conjunc-
tion with regulations under section 36B,
which provide that the affordability of
an offer of group health plan coverage
for a related individual is based on the
employee’s cost to cover the employee and
the employee’s related individuals. See
§ 1.36B-2(c)(3)(v)(A)(2); 87 FR 61979
(Oct. 13, 2022).
BACKGROUND
Section 125(d)(1) defines a cafete-
ria plan as a written plan maintained by
an employer under which all participants
are employees and under which all par-
ticipants may choose among two or more
benefits consisting of cash and qualified
benefits. Section 125(f) generally defines
a qualified benefit as any benefit which,
with the application of section 125(a), is
not includable in the gross income of the
employee by reason of an express provi-
sion of the Code (with certain exceptions).
Qualified benefits include employer-pro-
vided accident and health plans excludable
from gross income under sections 106 and
105(b), but exclude long term care insur-
ance and certain QHPs.
Consistent with longstanding rules for
cafeteria plans, a written cafeteria plan
generally must provide that elections
are irrevocable, except to the extent that
the optional change-in-status rules in
§ 1.125-4 have been included in the cafe-
teria plan.
1
Section 1.125-4 provides rules
on the circumstances in which a cafete-
ria plan may permit changes to elections
under the plan. Cafeteria plans are not
required to allow any of the changes per-
mitted under § 1.125-4.
Section 1.125-4(c) permits a cafeteria
plan to allow an employee to revoke an
election during a period of coverage with
respect to coverage under an accident or
health plan as defined in § 1.105-5 and
make a new election for the remaining
portion of the period if, under the facts
and circumstances, (i) a change in sta-
tus occurs, and (ii) the election change
satisfies the consistency requirements of
§ 1.125-4(c)(3). A change in status for this
purpose includes a change in employment
status as described in § 1.125-4(c)(2)(iii).
A change in employment status for this
purpose includes only a change in an indi-
vidual’s employment status that results
in a change in the individual’s eligibility
for coverage under the group health plan.
Thus, under the regulations, a change in
employment status that does not result in
an employee or a related individual either
becoming or ceasing to be eligible for cov-
erage under the group health plan is not
a change in status for which a plan may
allow the employee to revoke an election
of health coverage under the cafeteria plan
during a period of coverage.
Even if the change in status results in
a change in eligibility for coverage under
the group health plan, any revocation of
an election must satisfy the consistency
requirements of § 1.125-4(c)(3)(i) and
(iii). Those requirements provide that if
an employee’s change in status results in
an individual covered by a group health
plan due to the individual’s relationship to
the employee ceasing to satisfy eligibility
requirements for coverage, the employee
is not permitted to elect to revoke an
election of coverage under the cafeteria
plan for any individual who did not lose
eligibility. Similarly, if a change in status
results in an individual gaining eligibility
for coverage under a second group health
plan, an employee’s election to cease or
decrease coverage for that individual
under the cafeteria plan is permitted only
if the individual enrolls in the coverage for
which the individual is newly eligible.
Furthermore, § 1.125-4(b) permits a
cafeteria plan to allow an employee to
revoke an election under a group health
plan during a period of coverage and to
make a new election that corresponds
with the special enrollment rights under
section 9801(f).
The Affordable Care Act
2
created
the ability to enroll in QHPs through
an Exchange. Special enrollment rights
under section 9801(f) concern rights to
enroll in a group health plan due to loss
of other coverage or certain family events,
but do not include the ability to enroll in
a QHP through an Exchange. The ACA
1
See, e.g., Prop. Reg. § 1.125-1(c)(1)(iii); 72 FR 43938, 43948 (Aug. 6, 2007).
2
The Patient Protection and Affordable Care Act, Pub. L. 111–148 (124 Stat. 119 (2010)), and the Health Care and Education Reconciliation Act of 2010, Pub. L. 111–152 (124 Stat. 1029
(2010)), collectively referred to as the Affordable Care Act or ACA.
October 24, 2022 304 Bulletin No. 2022–43

includes separate provisions regarding
enrollment in QHPs through an Exchange
during open and special enrollment peri-
ods. In order to allow employees to enroll
in a QHP through an Exchange if they
would prefer that coverage, Notice 2014-
55 (2014-41 IRB 672) expanded the abil-
ity of cafeteria plans to allow employees
to revoke elections for group health plan
coverage in two situations.
The first situation in Notice 2014-55
addresses an employee with a specified
reduction in hours. Specifically, a caf-
eteria plan may allow that employee to
revoke prospectively an election for group
health plan coverage if (1) the change in
that employee’s status does not result in
the employee ceasing to be eligible under
the group health plan; and (2) the revoca-
tion of the election of coverage under the
group health plan corresponds with the
intended enrollment of the employee, and
any related individuals who cease cover-
age due to the revocation, in another plan
that provides minimum essential cover-
age, with the new coverage effective no
later than the first day of the second month
following the month that includes the date
the original coverage is revoked.
The second situation in Notice 2014-
55 addresses an employee who is eligible
to enroll in a QHP through an Exchange.
Specifically, a cafeteria plan may allow
an employee to revoke prospectively an
election for group health plan coverage
if (1) the employee is eligible for a spe-
cial enrollment period to enroll in a QHP
through an Exchange pursuant to guid-
ance issued by the Department of Health
and Human Services
3
and any other appli-
cable guidance, or the employee seeks to
enroll in a QHP during the Exchange’s
annual open enrollment period; and (2)
the revocation of the election of cover-
age under the group health plan corre-
sponds to the intended enrollment of the
employee, and any related individuals
who cease coverage due to the revocation,
in a QHP through an Exchange for new
coverage that is effective beginning no
later than the day immediately following
the last day of the original coverage that is
revoked. However, Notice 2014-55 does
not allow the revocation of an election
for group health plan coverage when only
related individuals, and not the employee,
become eligible to enroll in a QHP through
an Exchange.
Section 36B allows a premium tax
credit to applicable taxpayers who satisfy
certain eligibility requirements, including
that an individual in the taxpayer’s family
enrolls in a QHP through an Exchange for
one or more months in which the individ-
ual is not eligible for employer-sponsored
minimum essential coverage (including
group health plan coverage) or certain
other minimum essential coverage. See
section 36B(c)(2)(B) and § 1.36B-3(c).
Section 36B(c)(2)(C) generally provides
that an individual is not treated as eligi-
ble for group health plan coverage if the
coverage offered is unaffordable or does
not provide minimum value. However,
an individual who enrolls in group health
plan coverage is eligible for that coverage,
and therefore ineligible for a premium tax
credit, irrespective of whether it is afford-
able or provides minimum value.
Previous regulations under section 36B
provided that the affordability of an offer
of group health plan coverage for an indi-
vidual who may enroll in the coverage
because of a relationship to an employee
of the employer (a related individual) was
based on the employee’s self-only cost
to enroll in the coverage.
4
This rule was
changed in recently issued regulations
under section 36B, which provide that the
affordability of an offer of group health
plan coverage for a related individual is
based on the employee’s cost to cover the
employee and the employee’s related indi-
viduals. See § 1.36B-2(c)(3)(v)(A)(2);
87 FR 61979 (Oct. 13, 2022). Affordabil-
ity of an offer of group health plan cover-
age to an employee, however, continues to
be based on the employee’s self-only cost
to enroll in the coverage.
Interaction with Current Change-in-
Status Rules
Under the current change-in-status
rules under § 1.125-4 and Notice 2014-55,
a cafeteria plan is not permitted to allow
an employee to revoke an election of fam-
ily coverage under a group health plan
during a period of coverage and elect self-
only coverage (or family coverage includ-
ing one or more already-covered related
individuals) solely to allow one or more
related individuals who had also been
enrolled in the group health plan to instead
enroll in a QHP through an Exchange (or
separate QHPs if there is more than one
related individual). This is the case even
when the related individuals are newly
eligible to enroll in a QHP through an
Exchange during a special enrollment
period or during the Exchange’s annual
open enrollment period.
In many instances, the current rules
for changes in status would not restrict
employees’ and related individuals’
choices regarding coverage. For a related
individual enrolled in a calendar year
group health plan through the cafeteria
plan offered to an employee, the employee
may revoke the related individual’s cov-
erage under the plan during the plan’s
annual open season at the end of the plan
year so that the related individual gener-
ally may immediately begin coverage the
next calendar year under a QHP, enrolling
during the Exchange’s annual open enroll-
ment period. However, a related individ-
ual enrolled through a cafeteria plan in
a group health plan with a non-calendar
plan year might not be able to synchronize
the change in coverage to avoid either an
overlapping period of coverage or a gap
in coverage because the existing cafeteria
plan change-in-status rules do not allow
the revocation of coverage when only
related individuals, and not the employee,
become eligible to enroll in a QHP through
an Exchange.
In addition, under § 1.125-4(b), a caf-
eteria plan may allow an employee to
revoke an election under a group health
plan during a period of coverage and to
make a new election that corresponds
with special enrollment rights under sec-
tion 9801(f). However, special enrollment
rights under section 9801(f) relate only to
enrollment in group health plan coverage,
not a right to enroll in a QHP through an
Exchange.
3
See 45 CFR § 155.420(d).
4
See 78 FR 7264 (Feb. 1, 2013).
Bulletin No. 2022–43 305 October 24, 2022

October 24, 2022 306 Bulletin No. 2022–43
Finally, there are some circumstances
in which a related individual may become
eligible for a special enrollment period
during a plan year and newly eligible to
enroll in a QHP through an Exchange, and
a premium tax credit under section 36B
may be allowed for the QHP coverage
of the related individual (for example, if
a related individual relocates to another
state). See 45 CFR § 155.420(d). Under the
current change-in-status rules, however,
an employee would be unable to revoke
family coverage in a group health plan to
allow any related individuals to enroll in
a QHP through an Exchange while at the
same time the employee elects to enroll
in self-only coverage (or family coverage
including one or more already-covered
related individuals) under the group health
plan.
As noted previously, under § 1.36B-
2(c)(3)(v)(A)(2), affordability of an offer
of group health plan coverage for a related
individual is based on the employee’s cost
to cover the employee and the employ-
ee’s related individuals. Consequently, an
employee may wish to revoke the election
of group health plan coverage for one or
more related individuals so the related
individuals may enroll in a QHP through
an Exchange and be allowed a premium
tax credit for the related individual’s QHP
coverage. In the case of group health plan
coverage elected through a non-calendar
year cafeteria plan, however, or in situa-
tions in which a premium tax credit would
be allowed for a related individual during
the plan year if the related individual was
enrolled in a QHP through an Exchange
and not in the group health plan coverage,
current rules require the employee to delay
this change until the plan’s annual open
enrollment period, even if the employee
would prefer to make the change sooner.
GUIDANCE
In addition to the situations described
in Notice 2014-55, a non-calendar year
cafeteria plan may allow an employee to
revoke prospectively an election of family
coverage under a group health plan that is
not a health FSA and that provides min-
imum essential coverage (as defined in
section 5000A(f)(1)) provided the follow-
ing conditions are satisfied:
(1) One or more related individuals are
eligible for a special enrollment period to
enroll in a QHP through an Exchange pur-
suant to guidance issued by the Depart-
ment of Health and Human Services
5
and
any other applicable guidance, or one
or more already-covered related indi-
viduals seeks to enroll in a QHP during
the Exchange’s annual open enrollment
period; and
(2) The revocation of the election of
coverage under the group health plan cor-
responds to the intended enrollment of the
related individual or related individuals
in a QHP through an Exchange for new
coverage that is effective beginning no
later than the day immediately following
the last day of the original coverage that is
revoked. If the employee does not enroll
in a QHP through an Exchange as set forth
in Notice 2014-55, the employee must
elect self-only coverage (or family cov-
erage including one or more already-cov-
ered related individuals) under the group
health plan.
A cafeteria plan may rely on the rea-
sonable representation of an employee
that the employee and/or related individ-
uals have enrolled or intend to enroll in a
QHP through an Exchange for new cov-
erage that is effective beginning no later
than the day immediately following the
last day of the original coverage that is
revoked.
EFFECTIVE DATE AND PLAN
AMENDMENTS
The guidance in this notice is effective
for elections effective on or after Janu-
ary 1, 2023. Taxpayers may rely on the
guidance in this notice pending further
guidance.
To allow the new permitted election
changes under this notice, an employer
must amend a cafeteria plan to provide for
these election changes. An employer must
adopt the amendment on or before the last
day of the plan year in which the elections
are allowed, and the amendment may be
effective retroactively to the first day of
that plan year, provided that the cafeteria
plan operates in accordance with the guid-
ance under this notice and the employer
informs participants of the amendment,
and provided further that an employer
may amend a cafeteria plan to adopt the
new permitted election changes for a plan
year that begins in 2023 at any time on or
before the last day of the plan year that
begins in 2024. However, in no event may
an employer amend a cafeteria plan to
allow an election to revoke coverage on a
retroactive basis.
EFFECT ON OTHER
DOCUMENTS
Notice 2014-55 is amplified.
DRAFTING INFORMATION
The principal author of this notice is
Jennifer Friedman of the Office of Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). For further information regarding
this notice, contact Jennifer Friedman at
(202) 317-5500 (not a toll-free number).
Request for Comments on
Credits for Clean Vehicles
Notice 2022-46
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Revenue
Service (IRS) plan to issue guidance under
§ 30D and § 25E of the Internal Revenue
Code (Code), as amended by §§ 13401 and
13402, respectively, of Public Law 117-169,
136 Stat. 1818 (August 16, 2022), com-
monly known as the Inflation Reduction Act
of 2022 (IRA). This notice requests general
comments on questions under § 25E and the
amendments to § 30D, as well as specific
comments involving questions described in
section 3 of this notice. Comments received
in response to this notice will help to inform
development of guidance implementing
§§ 30D and 25E.
5
See 45 CFR § 155.420(d).

Bulletin No. 2022–43 307 October 24, 2022
SECTION 2. BACKGROUND
.01 Section 30D, Clean Vehicle Credit
Section 30D of the Code was origi-
nally enacted by § 205(a) of the Energy
Improvement and Extension Act of 2008,
Division B of Public Law 110-343, 122
Stat. 3765, 3835 (October 3, 2008), to
provide a credit for purchasing and plac-
ing in service of new qualified plug-in
electric drive motor vehicles. Section 30D
of the Code has been amended several
times since its enactment, most recently
by § 13401 of the IRA. In general, the
amendments made by § 13401 of the
IRA to § 30D of the Code apply to vehi-
cles placed in service after December 31,
2022, except as provided in § 13401(k)(2)
through (5) of the IRA.
Section 13401(a) of the IRA amends
§ 30D(b) of the Code to provide a maxi-
mum credit of $7,500 per vehicle, consist-
ing of $3,750 in the case of a vehicle that
meets certain critical minerals require-
ments and $3,750 in the case of a vehi-
cle that meets certain battery components
requirements. The amendments made by
§ 13401(a) of the IRA are applicable to
vehicles placed in service after the date on
which the Secretary of the Treasury or her
delegate (Secretary) issues proposed guid-
ance described in new § 30D(e)(3)(B) of
the Code (proposed battery guidance date)
relating to new critical minerals require-
ments described in new § 30D(e)(1)(A)
and new battery components requirements
described in new § 30D(e)(2)(A). See
§ 13401(k)(3) of the IRA.
Section 13401(b) of the IRA amends
§ 30D(d) of the Code by adding new
§ 30D(d)(1)(G) and new § 30D(d)(5)
applicable to vehicles sold after the date
of enactment of the IRA (that is, August
16, 2022). See § 13401(k)(2) of the IRA.
Section 30D(d)(1)(G) requires any vehi-
cle eligible for the credit under § 30D to
undergo final assembly in North America.
For purposes of new § 30D(d)(1)(G), new
§ 30D(d)(5) defines “final assembly” as
the process by which a manufacturer pro-
duces a new clean vehicle at, or through
the use of, a plant, factory, or other place
from which the vehicle is delivered to a
dealer or importer with all component
parts necessary for the mechanical opera-
tion of the vehicle included with the vehi-
cle, whether or not the component parts
are permanently installed in or on the
vehicle.
Section 13401(c) of the IRA further
amends § 30D(d) of the Code by making
the credit applicable to “new clean vehi-
cles,” instead of “new qualified plug-in
electric drive motor vehicles,” for vehi-
cles placed in service after December 31,
2022. As amended by § 13401(c) and (g)
(2) of the IRA, § 30D(d)(1) of the Code
defines a “new clean vehicle” as a motor
vehicle that satisfies the following eight
requirements set forth in § 30D(d)(1)(A)
through (H) of the Code:
(A) The original use of the motor vehi-
cle must commence with the taxpayer.
(B) The motor vehicle must be acquired
for use or lease by the taxpayer and not for
resale.
(C) The motor vehicle must be made
by a qualified manufacturer.
(D) The motor vehicle must be treated
as a motor vehicle for purposes of title II
of the Clean Air Act.
(E) The motor vehicle must have a
gross vehicle weight rating of less than
14,000 pounds.
(F) The motor vehicle must be pro-
pelled to a significant extent by an elec-
tric motor which draws electricity from
a battery that has a capacity of not less
than 7 kilowatt hours, and is capable of
being recharged from an external source
of electricity.
(G) The final assembly of the motor
vehicle must occur within North America.
(H) The person who sells any vehicle
to the taxpayer must furnish a report to the
taxpayer and to the Secretary containing
the following six items:
(i) The name and taxpayer identifica-
tion number of the taxpayer.
(ii) The vehicle identification number
of the vehicle, unless, in accordance with
any applicable rules promulgated by the
Secretary of Transportation, the vehicle is
not assigned such a number.
(iii) The battery capacity of the vehicle.
(iv) Verification that original use of the
vehicle commences with the taxpayer.
(v) The maximum credit under § 30D
allowable to the taxpayer with respect to
the vehicle.
(vi) In the case of a taxpayer who
makes an election to transfer the credit
under § 30D(g)(1) (described below),
any amount described in § 30D(g)(2)(C)
which has been provided to such taxpayer.
The Secretary may prescribe the time and
manner of the report.
Section 13401(c) of the IRA further
amends § 30D(d)(3) of the Code to replace
the term “manufacturer” with “quali-
fied manufacturer” applicable to vehi-
cles placed in service after December 31,
2022. As amended by the IRA, § 30D(d)
(3) of the Code defines a “qualified man-
ufacturer” as any manufacturer (within
the meaning of the regulations prescribed
by the Administrator of the Environmen-
tal Protection Agency for purposes of the
administration of title II of the Clean Air
Act (42 U.S.C. 7521 et seq.)) that enters
into a written agreement with the Secretary
under which such manufacturer agrees to
make periodic written reports to the Sec-
retary (at such times and in such manner
as the Secretary may provide) providing
vehicle identification numbers and such
other information related to each vehicle
manufactured by such manufacturer as the
Secretary may require.
Section 13401(c) of the IRA adds new
§ 30D(d)(6) to the Code, which includes
in the definition of the term “new clean
vehicle” applicable to vehicles placed
in service after December 31, 2022, any
“new qualified fuel cell motor vehicle”
(as defined in § 30B(b)(3)) that meets
the requirements under § 30D(d)(1)(G)
and (H). Section 13401(c) of the IRA
also makes conforming amendments to
§ 30D(a) and (b)(1) of the Code to allow
a credit for the taxable year with respect
to each “new clean vehicle” placed in ser-
vice by a taxpayer during the taxable year
and after December 31, 2022.
Section 13401(d) of the IRA eliminates
the manufacturer limitation on the number
of vehicles eligible for the § 30D credit
by striking former § 30D(e) applicable to
vehicles sold after December 31, 2022.
See § 13401(k)(5) of the IRA.
Section 13401(e) of the IRA provides
new critical minerals requirements and
new battery components requirements in
new § 30D(e) applicable to vehicles placed
in service after the proposed battery guid-
ance date. New § 30D(e)(1)(A) provides
that the critical minerals requirement with
respect to the battery from which the elec-
tric motor of a vehicle draws electricity is
satisfied if the percentage of the value of
the applicable critical minerals (as defined

October 24, 2022 308 Bulletin No. 2022–43
in § 45X(c)(6)) contained in such battery
that were (i) extracted or processed in
the United States, or in any country with
which the United States has a free trade
agreement in effect, or (ii) recycled in
North America, is equal to or greater than
the applicable percentage (as certified by
the qualified manufacturer, in such form
or manner as prescribed by the Secretary).
The applicable percentage for the criti-
cal minerals requirement is set forth in
§ 30D(e)(1)(B)(i) through (v) of the Code
and varies based on when the vehicle is
placed in service. In the case of a vehicle
placed in service after the proposed bat-
tery guidance date and before January 1,
2024, the applicable percentage is 40 per-
cent. In the case of a vehicle placed in ser-
vice during calendar year 2024, 2025, and
2026, the applicable percentage is 50 per-
cent, 60 percent, and 70 percent, respec-
tively. In the case of a vehicle placed in
service after December 31, 2026, the
applicable percentage is 80 percent.
Section 13401(e) of the IRA amends
§ 30D(e)(2)(A) of the Code applicable to
vehicles placed in service after the pro-
posed battery guidance date to provide
that the battery components requirement
with respect to the battery from which
the electric motor of a vehicle draws elec-
tricity is satisfied if the percentage of the
value of the components contained in
such battery that were manufactured or
assembled in North America is equal to
or greater than the applicable percentage
(as certified by the qualified manufacturer,
in such form or manner as prescribed by
the Secretary). The applicable percent-
age for the battery components require-
ment is set forth in § 30D(e)(2)(B)(i)
through (vi) of the Code and varies based
on when the vehicle is placed in service.
In the case of a vehicle placed in service
after the proposed battery guidance date
and before January 1, 2024, the applica-
ble percentage is 50 percent. In the case
of a vehicle placed in service during cal-
endar year 2024 or 2025, the applicable
percentage is 60 percent. In the case of a
vehicle placed in service during calendar
year 2026, 2027, and 2028, the applicable
percentage is 70 percent, 80 percent, and
90 percent, respectively. In the case of a
vehicle placed in service after December
31, 2028, the applicable percentage is 100
percent.
New § 30D(e)(3)(A) of the Code
authorizes the Secretary to issue such
regulations or other guidance as the Sec-
retary determines necessary to carry out
the purposes of new § 30D(e), including
regulations or other guidance which pro-
vides for requirements for recordkeeping
or information reporting for purposes
of administering the new critical miner-
als requirements and new battery com-
ponents requirements of new § 30D(e).
New § 30D(e)(3)(B) of the Code requires
the issuance of proposed guidance with
respect to the new critical minerals
requirements and new battery components
requirements under new § 30D(e) not later
than December 31, 2022.
As amended by § 13401(e) of the IRA,
§ 30D(d)(7) of the Code excludes, after
certain specified dates, vehicles placed in
service with batteries containing certain crit-
ical minerals or battery components from
a foreign entity of concern from the defi-
nition of the term “new clean vehicle.” In
particular, amended § 30D(d)(7) provides
that the term “new clean vehicle” does not
include (A) any vehicle placed in service
after December 31, 2024, with respect to
which any of the applicable critical minerals
contained in the battery of such vehicle (as
described in § 30D(e)(1)(A)) were extracted,
processed, or recycled by a foreign entity of
concern (as defined in § 40207(a)(5) of the
Infrastructure Investment and Jobs Act (42
U.S.C. 18741(a)(5))), or (B) any vehicle
placed in service after December 31, 2023,
with respect to which any of the components
contained in the battery of such vehicle (as
described in § 30D(e)(2)(A)) were manu-
factured or assembled by a foreign entity of
concern (as so defined).
Section 13401(f) of the IRA adds
four new special rules under § 30D(f)
applicable to vehicles placed in service
after December 31, 2022. New § 30D(f)
(8) provides that the § 30D credit is only
allowed once with respect to a vehicle, as
determined based upon the vehicle iden-
tification number of a vehicle, including
any vehicle with respect to which the tax-
payer elects the application of § 30D(g)
(described below). New § 30D(f)(9)
provides that no credit is allowed with
respect to any vehicle unless the taxpayer
includes the vehicle identification number
of such vehicle on the return of tax for the
taxable year.
New § 30D(f)(10)(A) provides that no
credit is allowed for any taxable year if
(i) the lesser of (I) the modified adjusted
gross income of the taxpayer for such
taxable year, or (II) the modified adjusted
gross income of the taxpayer for the
preceding taxable year, exceeds (ii) the
threshold amount. New § 30D(f)(10)(B)
provides that the threshold amount shall
be (i) in the case of a joint return or a
surviving spouse (as defined in § 2(a) of
the Code), $300,000, (ii) in the case of a
head of household (as defined in § 2(b)
of the Code), $225,000, and (iii) in the
case of any other taxpayer, $150,000.
New § 30D(f)(10)(C) defines “modified
adjusted gross income” as adjusted gross
income increased by any amount excluded
from gross income under § 911, 931,
or 933.
New § 30D(f)(11)(A) provides that
no credit is allowed for a vehicle with a
manufacturer’s suggested retail price in
excess of the applicable limitation. New
§ 30D(f)(11)(B) provides that the appli-
cable limitation for each vehicle classifi-
cation is as follows: in the case of a van,
$80,000; in the case of a sport utility vehi-
cle, $80,000; in the case of a pickup truck,
$80,000; and in the case of any other
vehicle, $55,000. New § 30D(f)(11)(C)
authorizes the Secretary to prescribe such
regulations or other guidance as the Sec-
retary determines necessary to determine
vehicle classifications using criteria simi-
lar to that employed by the Environmental
Protection Agency and the Department of
the Energy to determine size and class of
vehicles.
Section 13401(g) of the IRA amends
§ 30(D)(g) of the Code applicable to vehi-
cles placed in service after December
31, 2023, to provide that, subject to such
regulations or other guidance as the Sec-
retary determines necessary, a taxpayer
may elect under § 30D(g) to “transfer” a
§ 30D credit with respect to a new clean
vehicle to an eligible entity (transfer elec-
tion). If the taxpayer who acquires a new
clean vehicle makes a transfer election
under § 30D(g) with respect to such vehi-
cle, the § 30D credit that would otherwise
be allowed to such taxpayer with respect
to such vehicle is allowed to the eligible
entity specified in such election (and not
the taxpayer). Section 30D(g)(2) defines
an “eligible entity” with respect to the

Bulletin No. 2022–43 309 October 24, 2022
vehicle for which the credit is allowed as
the dealer that sold such vehicle to the tax-
payer and that satisfies the following four
requirements set forth in § 30D(g)(2)(A)
through (D):
(A) The dealer, subject to § 30D(g)(4),
must be registered with the Secretary for
purposes of § 30D(g)(2), at such time, and
in such form and manner, as the Secretary
prescribes.
(B) The dealer, prior to the transfer
election and not later than at the time of
sale, must have disclosed to the taxpayer
purchasing such vehicle (i) the manufac-
turer’s suggested retail price, (ii) the value
of the credit allowed and any other incen-
tive available for the purchase of such
vehicle, and (iii) the amount provided by
the dealer to such taxpayer as a condition
of the transfer election.
(C) The dealer, not later than at the time
of sale, must have paid the taxpayer (whether
in cash or in the form of a partial payment
or down payment for the purchase of such
vehicle) an amount equal to the credit other-
wise allowable to such taxpayer.
(D) The dealer with respect to any incen-
tive otherwise available for the purchase
of a vehicle for which a credit is allowed
under § 30D, including any incentive in
the form of a rebate or discount provided
by the dealer or manufacturer, must have
ensured that (i) the availability or use of
such incentive does not limit the ability of
a taxpayer to make a transfer election and
(ii) such election does not limit the value
or use of such incentive.
Amended § 30D(g)(3) provides that
any transfer election cannot be made by
the taxpayer any later than the date on
which the vehicle for which the § 30D
credit is allowed is purchased. Amended
§ 30D(g)(4) provides that upon determi-
nation by the Secretary that a dealer has
failed to comply with the requirements
described in § 30D(g)(2), the Secretary
may revoke the dealer’s registration.
Amended § 30D(g)(5) provides that
with respect to any payment described in
§ 30D(g)(2)(C), such payment (A) is not
includible in the gross income of the tax-
payer, and (B) with respect to the dealer,
is not deductible under the Code. Section
30D(g)(6) provides that, in the case of
any transfer election with respect to any
vehicle (A) the requirements of § 30D(f)
(1) and (2) apply to the taxpayer who
acquired the vehicle in the same manner
as if the § 30D credit determined with
respect to such vehicle were allowed
to such taxpayer, (B) § 30D(f)(6) does
not apply, and (C) the requirement of
§ 30D(f)(9) is treated as satisfied if the
eligible entity provides the vehicle iden-
tification number of such vehicle to the
Secretary in such manner as the Secre-
tary may provide.
Amended § 30D(g)(7)(A) provides for
the establishment of a program to make
advance payments to any eligible entity in
an amount equal to the cumulative amount
of the credits allowed with respect to any
vehicles sold by such entity for which a
transfer election described in § 30D(g)
(1) has been made. Amended § 30D(g)(7)
(B) details that rules similar to the rules
of § 6417(d)(6) apply for purposes of any
excessive payments.
Amended § 30D(g)(8) defines the term
“dealer” as a person licensed by a State,
the District of Columbia, the Common-
wealth of Puerto Rico, any other territory
or possession of the United States, an
Indian tribal government, or any Alaska
Native Corporation (as defined in § 3 of
the Alaska Native Claims Settlement Act
(43 U.S.C. 1602(m)) to engage in the sale
of vehicles.
Amended § 30D(g)(9) defines the term
“Indian tribal government” as the recog-
nized governing body of any Indian or
Alaska Native tribe, band, nation, pueblo,
village, community, component band, or
component reservation, individually iden-
tified (including parenthetically) in the list
published most recently as of the date of
enactment of § 30D(g) (that is, August 16,
2022) pursuant to § 104 of the Federally
Recognized Indian Tribe List Act of 1994
(25 U.S.C. 5131).
Amended § 30D(g)(10) provides that
in the case of any taxpayer who has made
a transfer election with respect to a new
clean vehicle and received a payment
from an eligible entity, if the §30D credit
would otherwise (but for § 30D(g)) not
be allowable to such taxpayer pursuant
to the application of § 30D(f)(10), the
income tax imposed on such taxpayer
under chapter 1 of the Code for the tax-
able year in which such vehicle was
placed in service must be increased by
the amount of the payment received by
such taxpayer.
Amended § 30D(h) provides that no
credit is allowed with respect to any vehi-
cle placed in service after December 31,
2032.
Section 13401(k) of the IRA provides
the effective date for the amendments to
§ 30D of the Code. As noted above, except
as provided in § 13401(k)(2) through
(5) of the IRA, the amendments made
by § 13401 of the IRA apply to vehicles
placed in service after December 31, 2022.
Section 13401(k)(2) of the IRA provides
that the amendments made by § 13401(b)
of the IRA relating to final assembly apply
to vehicles sold after the date of enact-
ment of the IRA (August 16, 2022). Sec-
tion 13401(k)(3) of the IRA provides that
the amendments made by § 13401(a) and
(e) of the IRA relating to the per vehicle
dollar limitation and related requirements
apply to vehicles placed in service after
the date on which the proposed guidance
described in new § 30D(e)(3)(B) is issued
by the Secretary. Section 13401(k)(4) of
the IRA provides that the amendments
made by § 13401(g) of the IRA relating
to transfers of the § 30D credit apply to
vehicles placed in service after Decem-
ber 31, 2023. Section 13401(k)(5) of the
IRA provides that the amendment made
by § 13401(d) of the IRA eliminating the
manufacturer limitation applies to vehi-
cles sold after December 31, 2022.
Section 13401(l) of the IRA provides
a transition rule for a taxpayer who pur-
chased or entered into a written bind-
ing contract to purchase a new qualified
plug-in electric drive motor vehicle (as
defined in § 30D(d)(1) of the Code, as in
effect on the day before the date of enact-
ment of the IRA (August 15, 2022)) after
December 31, 2021 and before the date of
enactment of the IRA (August 16, 2022),
and placed such vehicle in service on or
after the date of enactment of the IRA.
The transition rule provides that such a
taxpayer may elect (at such time, and in
such form and manner as the Secretary
may prescribe) to treat such vehicle as
having been placed in service on the day
before the date of enactment of the IRA.
.02 Section 25E, Previously Owned
Clean Vehicles
New § 25E of the Code was enacted by
§ 13402 of the IRA. Section 25E(a) pro-
vides that in case of a qualified buyer who
during a taxable year, places in service

October 24, 2022 310 Bulletin No. 2022–43
a previously-owned clean vehicle, an
income tax credit is allowed for the tax-
able year equal to the lesser of (1) $4,000,
or (2) the amount equal to 30 percent of
the sale price with respect to such vehicle
(§ 25E credit).
Section 25E(b)(1) sets a limitation
based on modified adjusted gross income
and provides that no credit is allowed for
any taxable year if (A) the lesser of (i) the
modified adjusted gross income of the
taxpayer for such taxable year, or (ii) the
modified adjusted gross income of the
taxpayer for the preceding taxable year,
exceeds (B) the threshold amount. The
threshold amount is set forth in § 25E(b)
(2) and varies based on a taxpayer’s fil-
ing status. In the case of a taxpayer fil-
ing a joint return or who is a surviving
spouse (as defined in § 2(a) of the Code),
the threshold amount is $150,000. In the
case of a taxpayer who is a head of house-
hold (as defined in § 2(b) of the Code),
the threshold amount is $112,500. In the
case of any other taxpayer, the threshold
amount is $75,000. Section 25E(b)(3)
defines modified adjusted gross income
as adjusted gross income increased by
any amount excluded from gross income
under § 911, 931, or 933.
Section 25E(c) defines certain terms
for purposes of the § 25E credit. Section
25E(c)(1) defines “previously-owned
clean vehicle” as, with respect to a tax-
payer, a motor vehicle that satisfies the
following four requirements set forth in
§ 25E(c)(1)(A) through (D) of the Code:
(A) The model year of the motor vehi-
cle is at least 2 years earlier than the cal-
endar year in which the taxpayer acquires
such vehicle.
(B) The original use of the motor vehi-
cle commences with a person other than
the taxpayer.
(C) The motor vehicle is acquired by
the taxpayer in a qualified sale.
(D) The motor vehicle (i) meets the
requirements of § 30D(d)(1)(C), (D),
(E), (F), and (H) (except for § 30D(d)
(1)(H)(iv)), or (ii) is a motor vehicle
which (I) satisfies the requirements under
§ 30B(b)(3)(A) and (B), and (II) has a
gross vehicle weight rating of less than
14,000 pounds.
Section 25E(c)(2) defines a “qualified
sale” as a sale of a motor vehicle (A) by
a dealer (as defined in § 30D(g)(8)),
(B) for a sale price which does not exceed
$25,000, and (C) which is the first transfer
since the date of enactment to a qualified
buyer other than the person with whom the
original use of such vehicle commenced.
Section 25E(c)(3) defines “qualified
buyer” as, with respect to a sale of a motor
vehicle, a taxpayer (A) who is an individ-
ual, (B) who purchases such vehicle for use
and not for resale, (C) with respect to whom
no deduction is allowable with respect to
another taxpayer under § 151, and (D) who
has not been allowed a credit under § 25E
for any sale during the 3-year period end-
ing on the date of the sale of such vehicle.
Section 25E(c)(4) defines “motor vehi-
cle” and “capacity” to have the meaning
given such terms in § 30D(d)(2) and (4),
respectively. Section 25E(d) provides
that no credit is allowed under § 25(a)
with respect to any vehicle unless the tax-
payer includes the vehicle identification
number of such vehicle on the return of
tax for the taxable year. Section 25E(e)
and (f) provide that rules similar to the
rules of § 30D(f) (without regard to para-
graph (10) or (11) thereof) and the rules
of § 30D(g) apply for purposes of § 25E.
Section 25E(g) provides that no credit
is allowed with respect to any vehicle
acquired after December 31, 2032.
Section 13402(e) of the IRA provides
the effective date for the amendments
made by § 13402 of the IRA. In general,
except as provided in § 13402(e)(2) of the
IRA, the amendments made by § 13402 of
the IRA apply to vehicles acquired after
December 31, 2022. The amendments
made by § 13402(b) of the IRA relating to
transfers of the § 25E credit apply to vehi-
cles placed in service after December 31,
2023.
SECTION 3. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments on any questions aris-
ing from the IRA amendments to § 30D
and the enactment of § 25E that should be
addressed in guidance. Commenters are
encouraged to specify the issues on which
guidance is needed most quickly as well
as the most important issues on which
guidance is needed. In addition to general
comments regarding these provisions, the
Treasury Department and the IRS request
comments that address the following spe-
cific questions:
.01 Clean Vehicles (§ 30D)
(1) Definitions. Section 30D(d)(1)(B)
of the Code defines a “new clean vehi-
cle,” in part, as a motor vehicle which is
acquired for use or lease by the taxpayer
and not for resale. As used in this defini-
tion, what, if any, guidance is needed as
to the meaning of the terms “acquired,”
“use,” and “lease?”
(2) Critical Minerals. Section 30D(e)
(1) provides the new critical minerals
requirements, including the applicable
percentage requirements to be phased in
over several years.
(a) What factors and definitions should
be considered to determine the place of
extracting or processing such critical
minerals, and, in particular, to determine
whether extracting or processing occurred
in the United States or in any country with
which the United States has a free trade
agreement in effect?
(b) What factors and definitions should
be considered to determine the place of
recycling such critical minerals and, in
particular, to determine whether recycling
occurred in North America?
(c) What factors and definitions should
be considered to determine (i) the total
value of the critical minerals contained in
a vehicle’s battery, and (ii) the percentage
of that total value attributable to critical
minerals (I) extracted or processed in the
United States or a country with which the
United States has a free trade agreement in
effect, or (II) recycled in North America?
(3) Battery Components. Section
30D(e)(2) provides the new battery
component requirements, including the
applicable percentage requirements to be
phased in over several years.
(a) What factors should be considered
in defining the components of a battery of
a clean vehicle?
(b) What factors and definitions should
be considered to determine the place of
manufacture or assembly of the components
of a battery of a clean vehicle and, in par-
ticular, to determine whether manufacture or
assembly occurred in North America?
(c) What factors and definitions should
be considered to determine (i) the total
value of the components contained in the
battery of a clean vehicle, and (ii) the per-
centage of that total value attributable to

Bulletin No. 2022–43 311 October 24, 2022
components that were manufactured or
assembled in North America?
(4) Applicable Values. The new critical
mineral and battery component require-
ments in § 30D(e) are based on value.
What existing battery technology supply
chain tracking methodologies or regula-
tory frameworks should be considered in
determining applicable values?
(5) Foreign Entity of Concern. Sec-
tion 30D(d)(7) provides that some vehi-
cles are excluded from the availability
of the credit, including when any of the
applicable critical minerals contained in
the battery were extracted, processed, or
recycled by a foreign entity of concern
(defined in 42 U.S.C. 18741(a)(5)), or if
any of the components contained in the
battery of such vehicle were manufac-
tured or assembled by a foreign entity of
concern.
(a) Is guidance needed to clarify the
definition of “foreign entity of concern”?
(b) What existing regulatory or guid-
ance frameworks for recordkeeping
requirements or supply chain tracking
methodologies may be useful for qualified
manufacturers to verify that its vehicles
are not excluded under § 30D(d)(7)?
(6) Recordkeeping and Reporting.
(a) In addition to VIN numbers, what
additional information should a qualified
manufacturer provide to the Secretary to
be considered a qualified manufacturer
with respect to a particular vehicle, per
§ 30D(d)(3)?
(b) What existing regulatory or guid-
ance frameworks for recordkeeping
requirements or information reporting or
existing battery technology supply chain
tracking methodologies may be useful for
developing guidance for qualified manu-
facturers under § 30D(e)(3)?
(c) What information should be
included in the report furnished by the
seller of the vehicle to the taxpayer and
the Secretary under § 30D(d)(1)(H),
including the election to transfer the credit
under § 30D(g)?
(7) Tax-exempt Entities. Section 30D(f)
(3) is stricken by § 13401(g) of the IRA
with respect to vehicles placed in service
after December 31, 2023. How should
clean vehicles acquired and used by a
tax-exempt entity after this statutory
change becomes effective be treated for
purposes of § 30D?
(8) Registered Dealer and Eligible
Entity.
(a) What guidance, if any, is needed to
determine who is a licensed dealer who
can be registered with the Secretary for
purposes of the transfer of the credit under
§ 30D(g)(2), (7), and (8)?
(b) What guidance, if any, is needed
regarding what circumstances may lead to
the revocation of such registration under
§ 30D(g)(4)?
(9) Final Assembly Requirement. Is
guidance needed to clarify the definition of
the term “final assembly” in § 30D(d)(5) or
the area included in the term “North Amer-
ica” for purposes of § 30D(d)(1)(G)?
(10) Vehicle Classifications.
(a) What, if any, guidance is needed
to define how vehicles are classified as
vans, sport utility vehicles, pickup trucks,
or other designations of vehicles for pur-
poses of the manufacturer’s suggested
retail price limitation in § 30D(f)(11)?
(b) What criteria employed by the
Environmental Protection Agency and
Department of Energy, or other factors
(for example, Department of Transpor-
tation motor vehicle type classification)
should be considered in determining the
designation of such vehicles?
(c) Is guidance needed to clarify how
the manufacturer’s suggested retail price
is calculated?
(11) Election to Transfer and Advance
Payments.
(a) What factors should be considered
in determining the time and manner of
the taxpayer’s election under § 30D(g)
to transfer the § 30D credit to an eligible
entity?
(b) Is guidance needed regarding the
definition of “taxpayer,” such as whether
non-individual taxpayers are eligible for
the credit under § 30D?
(c) If an election to transfer the credit is
made by the taxpayer, what issues should
be considered regarding the transfer of the
§ 30D credit?
(d) What considerations and factors
should be taken into account in determin-
ing the time and manner of advance pay-
ments made pursuant to §30D(g)(7)(A)?
(e) For purposes of § 30D(g), what
guidance, if any, is needed regarding a
determination by an eligible entity regard-
ing whether a credit is allowable to the
taxpayer?
(12) Recapture.
(a) Is guidance needed to coordinate
the application of the excess payment
provision under § 30D(g)(7)(B) and the
recapture provision under § 30D(g)(10) as
between the transferors and transferees of
the credit under § 30D(g)?
(b) In the event of a recapture event,
how should recapture be reported by the
taxpayer?
(13) Please provide comments on any
other terms that may require definition or
additional guidance.
.02 Previously Owned Cleans Vehicle
(§ 25E)
(1) What, if any, guidance is needed to
address how a taxpayer can verify that a
vehicle qualifies as a “previously-owned
clean vehicle” as defined in § 25E(c)(1)?
(2) Section 25E(e) provides that rules
similar to the rules of § 30D(f) (without
regard to paragraph (10) or (11) thereof)
apply for purposes of the § 25E credit.
What rules of § 30D(f) should be applied
under § 25E(e) without any modification?
What rules of § 30D(f) should be applied
in modified form for purposes of § 25E
and in what way should they be modified?
(3) Section 25E(f) provides that rules
similar to the rules of § 30D(g) apply for
purposes of the § 25E credit. What rules
of § 30D(g) should be applied under
§ 25E(f) without any modification? What
rules of § 30D(g) should be applied in
modified form for purposes of § 25E and
in what way should they be modified?
(4) Please provide comments on any
other terms that may require definition or
additional guidance.
SECTION 4. SUBMISSION OF
COMMENTS
.01 Written comments should be submit-
ted by Friday, November 4, 2022. Consider-
ation will be given, however, to any written
comment submitted after Friday, November
4, 2022, if such consideration will not delay
the issuance of guidance. The subject line
for the comments should include a reference
to Notice 2022-46. Comments may be sub-
mitted in one of two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2022-0046 in the search
field on the regulations.gov homepage to
find this notice and submit comments).

October 24, 2022 312 Bulletin No. 2022–43
(2) Alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2022-46), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
D.C., 20044.
.02 All commenters are strongly
encouraged to submit comments electron-
ically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically
and on paper to its public docket on regu-
lations.gov.
SECTION 5. RELIANCE ON
NOTICE 2009-89
Notice 2009-89, 2009-48 I.R.B. 714
was modified Notice 2016-51, 2016-37
I.R.B. 344, by updating section 6.03 of
Notice 2009-89, updating the address to
which a manufacturer (or, in the case of a
foreign manufacturer, its domestic distrib-
utor) sends quarterly reports and/or certi-
fications. Taxpayers may rely on Notice
2009-89, as modified by Notice 2016-51,
until additional guidance on these issues
is issued.
SECTION 6. PROPOSED
GUIDANCE FOR CRITICAL
MINERAL AND BATTERY
COMPONENT REQUIREMENTS
For purposes of § 30D(e)(3)(B), the
publication of this notice requesting com-
ments is not the publication of proposed
guidance with respect to the critical mineral
and battery component requirements under
§ 30D(e). The Treasury Department and
the IRS will explicitly identify when they
have published proposed guidance with
respect to the critical mineral and battery
component requirements under § 30D(e).
SECTION 7. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further informa-
tion regarding this notice, call the energy
security guidance contact number at (202)
317-5254 (not a toll-free number).
Request for Comments on
Energy Security Tax Credits
for Manufacturing Under
Sections 48C and 45X
Notice 2022-47
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Reve-
nue Service (IRS) plan to issue guidance
regarding the advanced manufacturing
production credit under new § 45X (§ 45X
credit) and the qualifying advanced energy
project credit under § 48C (§ 48C credit)
of the Internal Revenue Code (Code),
as added and amended, by §§ 13502
and 13501, respectively, of Public Law
117-169, 136 Stat. 1818 (August 16,
2022), commonly known as the Inflation
Reduction Act of 2022 (IRA). This notice
requests general and specific comments
on questions pertaining to the implemen-
tation and administration of §§ 45X and
48C, which will help to inform the devel-
opment of guidance implementing §§ 45X
and 48C.
SECTION 2. BACKGROUND
.01 Advanced Manufacturing Produc-
tion Credit (§ 45X)
(1) Overview
Section 13502(a) of the IRA added
new § 45X to the Code to establish the
advanced manufacturing production
credit. Section 45X(a)(1) and (2) provide
that, for purposes of the general busi-
ness credit under § 38 of the Code, the
advanced manufacturing production credit
for any taxable year is an amount equal to
the sum of the credit amounts determined
under § 45X(b) with respect to each eli-
gible component (as defined in § 45X(c))
produced by the taxpayer and sold by such
taxpayer to an unrelated person, but only
if such production and sale is in a trade or
business of the taxpayer.
Section 45X(a)(3) provides rules regard-
ing the sale of components to an unrelated
person, and generally provides a special rule
that, for purposes of § 45X(a), treats a tax-
payer as selling components to an unrelated
person if such component is sold to such
person by a person related to the taxpayer.
Under § 45X(a)(3)(B), a taxpayer may
make an election in the form and manner
prescribed by the Secretary of the Treasury
or her delegate (Secretary) to treat a sale of
components by such taxpayer to a related
person as made to an unrelated person. As a
condition of, and prior to, a taxpayer mak-
ing this election, the Secretary may require
such information or registration as the Sec-
retary deems necessary for purposes of pre-
venting duplication, fraud, or any improper
or excessive credit amount.
(2) Credit amounts
Section 45X(b)(1)(A) through (M)
and § 45X(b)(2)(A) set forth the credit
amounts for each type of eligible compo-
nent, which amounts, except for purposes
of determining the credit amount with
respect to any applicable critical mineral,
are subject to phase out rules set forth in
§ 45X(b)(3). For any eligible component
sold after December 31, 2029, the credit
amount with respect to such component
equals the product of the amount deter-
mined under § 45X(b)(1) with respect to
such component multiplied by the phase
out percentages under § 45X(b)(3)(B)
(i) through (iv). In the case of an eligi-
ble component sold during calendar year
2030, 2031, and 2032, the phase out per-
centages are 75 percent, 50 percent, and
25 percent, respectively. In the case of an
eligible component sold after December
31, 2032, the phase out percentage is 0
percent.
Section 45X(b)(4) prescribes capac-
ity limitations used to compute the credit
amount for eligible battery cells and bat-
tery modules under § 45X(b)(1)(K) and
(L), respectively. For purposes of com-
puting the credit for these eligible com-
ponents, § 45X(b)(4)(A) provides that
the capacity determined with respect to
a battery cell or battery module must not
exceed a capacity-to-power ratio of 100:1.
Section 45X(b)(4)(B) defines the term
“capacity-to-power-ratio” for this purpose
as the ratio of the capacity of a battery cell
or battery module to the maximum dis-
charge amount of such cell or module.
(3) Eligible components
Section 45X(c) sets forth the differ-
ent types of eligible components. Section
45X(c)(1)(A) provides that the term “eli-
gible component” means any solar energy
component, wind energy component,

Bulletin No. 2022–43 313 October 24, 2022
inverter described in § 45X(c)(2)(B)
through (G), qualifying battery compo-
nent, and applicable critical mineral. Sec-
tion 45X(c)(1)(B) clarifies that the term
“eligible component” does not include
any property that is produced at a facility
if the basis of any property that is part of
such facility is taken into account for pur-
poses of the qualifying advanced energy
project credit allowed under § 48C after
August 16, 2022 (that is, the date of enact-
ment of the IRA).
Section 45X(c)(2)(A) generally defines
“inverter” as an end product that is suit-
able to convert direct current electricity
from 1 or more solar modules or certi-
fied distributed wind energy systems into
alternating current electricity. Section
45X(c)(2)(B) through (G) define the fol-
lowing different types of eligible invert-
ers: central inverter, commercial inverter,
distributed wind inverter, microinverter,
residential inverter, and utility inverter.
Section 45X(c)(3)(A) defines a “solar
energy component” as photovoltaic cells,
photovoltaic wafers, polymeric backsheets,
solar grade polysilicon, solar modules, and
torque tubes or structural fasteners. Section
45X(c)(3)(B) defines these different types
of eligible solar energy components as well
as the term “solar tracker.”
Section 45X(c)(4)(A) defines “wind
energy component” as blades, nacelles,
towers, offshore wind foundations, and
related offshore wind vessels. Section
45X(c)(4)(B) defines these different types
of eligible wind energy components.
Section 45X(c)(5)(A) defines a “qualify-
ing battery component” as electrode active
materials, battery cells, and battery modules.
Section 45X(c)(5)(B) defines these different
types of qualifying battery components.
Section 45X(c)(6) provides the follow-
ing list of 50 minerals that when converted
or purified to specified purities are consid-
ered an “applicable critical mineral” for
purposes of the § 45X credit: aluminum,
antimony, arsenic, barite, beryllium, bis-
muth, cerium, cesium, chromium, cobalt,
dysprosium, erbium, europium, fluorspar,
gadolinium, gallium, germanium, graph-
ite, hafnium, holmium, indium, iridium,
lanthanum, lithium, lutetium, magnesium,
manganese, neodymium, nickel, niobium,
palladium, platinum, praseodymium, rho-
dium, rubidium, ruthenium, samarium,
scandium, tantalum, tellurium, terbium,
thulium, tin, titanium, tungsten, vanadium,
ytterbium, yttrium, zinc, and zirconium.
(4) Special rules
Section 45X(d) prescribes special
rules applicable for the § 45X credit. Sec-
tion 45X(d)(1) provides that persons are
treated as related to each other if such per-
sons would be treated as a single employer
under the regulations prescribed under the
common control rules of § 52(b) of the
Code. Section 45X(d)(2) provides that
sales of eligible components are taken into
account under § 45X only with respect to
eligible components the production of
which is within the United States (includ-
ing continental shelf areas described in
§ 638(1) of the Code), or a U.S. terri-
tory (including continental shelf areas
described in § 638(2)). Section 45X(d)(3)
directs the Secretary to promulgate regu-
lations adopting rules similar to the rules
of § 52(d) to apportion credit amounts
between estates or trusts and their bene-
ficiaries on the basis of the income of the
estates or trusts allocable to each and pass-
thru any apportioned credit amounts to the
beneficiaries. Section 45X(d)(4) provides
that for purposes of the § 45X credit, a
person is treated as having sold an eligible
component to an unrelated person if such
component is integrated, incorporated, or
assembled into another eligible compo-
nent which is sold to an unrelated person.
.02 Qualifying Advanced Energy Proj-
ect Credit (§ 48C)
(1) Overview
Section 48C was originally enacted by
§ 1302(b) of the American Recovery and
Reinvestment Act of 2009, Public Law
111-5, Division B, Title I, Subtitle D, 123
Stat. 115, 345 (February 17, 2009), to
provide an allocated credit for qualified
investments in qualifying advanced energy
projects. For purposes of the investment
tax credit determined for any taxable year
under § 46 of the Code, § 48C generally
allows a qualifying advanced energy
project credit equal to 30 percent of a
taxpayer’s qualified investment for such
taxable year with respect to any qualifying
advanced energy project of the taxpayer.
1

The amount treated as the qualified invest-
ment for all taxable years with respect to
a qualifying advanced energy project can-
not exceed the amount allocated to the
project by the Secretary.
Section 48C has been amended sev-
eral times, most recently by § 13501 of
the IRA. Section 13501(a) of the IRA
adds new § 48C(e) to the Code to extend
the § 48C credit to provide an additional
credit allocation of $10 billion. Section
13501(b) of the IRA modifies the defi-
nition of a “qualifying advanced energy
project” contained in § 48C(c)(1)(A).
Section 13501(c) and (d) of the IRA make
conforming amendments to § 48C(c)(2)
(A) and (f). The amendments made by
§ 13501 of the IRA are effective on Jan-
uary 1, 2023. See § 13501(e) of the IRA.
(2) New § 48C(e)
Section 48C(e)(1) directs the Secretary
to establish a program to consider and
award certifications for qualified invest-
ments eligible for § 48C credits to qual-
ifying advanced energy project sponsors.
Section 48C(e)(2) provides that the total
amount of § 48C credits that may be allo-
cated under such program cannot exceed
$10 billion, of which no greater than
$6 billion may be allocated to qualified
investments which (1) prior to August 16,
2022 (the date of enactment of § 48C(e)),
have not received a certification and allo-
cation of credits under § 48C(d), and (2)
are not located within one of the following
census tracts described in § 45(b)(11)(B)
(iii):
a) A census tract in which a coal mine
has closed after December 31, 1999.
b) A census tract in which a coal-fired
electric generating unit has been retired
after December 31, 2009.
c) A census tract directly adjoining
such a census tract described in a) or b).
Section 48C(e)(3)(A) provides that
each applicant for certification must sub-
mit an application at such time and con-
taining such information as the Secretary
may require. Section 48C(e)(3)(B) pro-
vides that each applicant for certification
has 2 years from the date of acceptance by
1
Section 48C(e)(4)(A) provides a base credit rate of 6 precent for allocations under § 48C(e).

The base credit rate is increased to 30 precent for any project that satisfies the prevailing
wage requirements of § 48C(e)(5)(A) and the apprenticeship requirements of § 48C(e)(6).

See Notice 2022-51 requesting comments on prevailing wage and apprenticeship requirements.

October 24, 2022 314 Bulletin No. 2022–43
the Secretary of the application to provide
to the Secretary evidence that the require-
ments of the certification have been met.
Section 48C(e)(3)(C) provides that an
applicant who receives a certification has
2 years from the date of issuance of the
certification to place the project in service
and to notify the Secretary that such proj-
ect has been so placed in service. If the
project is not placed in service within the
two year period, then the certification is no
longer valid. If any certification is revoked
under § 48C(e)(3), the total amount of
the credits that may be allocated under
§ 48C(e)(2) is increased by the amount of
§ 48C credit with respect to such revoked
certification.
Section 48C(e)(3)(D) provides that in
the case of an applicant which receives a
certification, if the Secretary determines
that the project has been placed in service
at a location that is materially different
than the location specified in the applica-
tion for such project, the certification is no
longer valid.
Section 48C(e)(7) provides that the Sec-
retary must, upon making a certification
under § 48C(e), publicly disclose the iden-
tity of the applicant and the amount of the
§ 48C credit with respect to such applicant.
(3) Amendments to § 48C(c)(1)(A)
As amended by the IRA, § 48C(c)(1)
(A) defines the term “qualifying advanced
energy project” as one of the three follow-
ing project types, any portion of the quali-
fied investment of which is certified by the
Secretary under § 48C(e) as eligible for a
§ 48C credit:
(i) A project that re-equips, expands, or
establishes an industrial or manufacturing
facility for the production or recycling of
one of the following nine property types:
(I) Property designed to be used to pro-
duce energy from the sun, water, wind,
geothermal deposits or other renewable
resources.
(II) Fuel cells, microturbines, or energy
storage systems and components.
(III) Electric grid modernization equip-
ment or components.
(IV) Property designed to capture,
remove, use, or sequester carbon oxide
emissions.
(V) Equipment designed to refine, elec-
trolyze, or blend any fuel, chemical, or
product which is renewable or low-carbon
and low-emission.
(VI) Property designed to produce
energy conservation technologies (includ-
ing residential, commercial, and industrial
applications).
(VII) Light, medium, or heavy-duty
electric or fuel cell vehicles, as well as
technologies, components, or materials
for such vehicles, and associated charging
or refueling infrastructure.
(VIII) Hybrid vehicles with a gross
vehicle weight rating of not less than
14,000 pounds, as well as technolo-
gies, components, or materials for such
vehicles.
(IX) Other advanced energy prop-
erty designed to reduce greenhouse gas
emissions as may be determined by the
Secretary.
(ii) A project that re-equips an indus-
trial or manufacturing facility with equip-
ment designed to reduce greenhouse gas
emissions by at least 20 percent through
the installation of (I) low- or zero-carbon
process heat systems, (II) carbon capture,
transport, utilization, and storage systems,
(III) energy efficiency and reduction in
waste from industrial processes, or (IV)
any other industrial technology designed
to reduce greenhouse gas emissions, as
determined by the Secretary.
(iii) A project that re-equips, expands,
or establishes an industrial facility for the
processing, refining, or recycling of criti-
cal materials (as defined in § 7002(a) of the
Energy Act of 2020 (30 USC § 1606(a)).
Section 48C(c)(2)(A) defines “eligible
property” as any property that is necessary
for the production or recycling of property
described in § 48C(c)(1)(A)(i), re-equip-
ping an industrial or manufacturing facil-
ity described in § 48C(c)(1)(A)(ii), or
re-equipping, expanding, or establishing
an industrial facility described in § 48C(c)
(1)(A)(iii).
(4) Denial of Double Benefit
As amended by § 13501(c) of the IRA,
§ 48C(f) provides that a § 48C credit is
not allowed for a qualified investment for
which a credit is allowed under §§ 48,
48A, 48B, 48E, 45Q or 45V.
SECTION 3. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments on issues arising from
new § 45X and the amendments made by
the IRA to § 48C that should be addressed
in guidance. Commenters are encouraged
to specify the issues on which guidance is
needed most quickly as well as the most
important issues on which guidance is
needed. In addition to general comments,
the Treasury Department and the IRS
request comments that address the follow-
ing specific issues:
.01 Section 45X Advanced Manufactur-
ing Production Credit.
(1) Section 45X(a)(3)(B)(i) allows
a taxpayer to make an election to treat a
sale of components by such taxpayer to
a related person as made to an unrelated
person. Is guidance needed to clarify the
meaning of the terms “unrelated person”
and “related person”? If so, how should
these terms be clarified?
(2) Section 45X(d)(4) provides that
for purposes of § 45X, a person is treated
as having sold an eligible component to
an unrelated person if such component
is integrated, incorporated, or assembled
into another eligible component which is
sold to an unrelated person. How should
“integrated, incorporated, or assembled”
be determined?
(3) What factors should the Treasury
Department and the IRS consider in deter-
mining what information or registration
is necessary for purposes of preventing
duplication, fraud, or any improper or
excessive credit amount, as referenced in
§ 45X(a)(3)(B)?
(4) Is guidance needed regarding the
capacity-to-power ratio in § 45X(b)(4)? If
so, what guidance?
(5) Is additional clarification needed
regarding the definitions of an “eligible
component” in § 45X(c)?
(a) How should the amount of the
§ 45X credit be calculated for components
that could be used in systems of varying
capacities?
(b) In such cases, how should verifi-
cation of the applicable credit amount be
demonstrated?
(6) Section 45X(c)(4) identifies
“related offshore wind vessels” as one of
the qualifying “wind energy components.”
(a) What should the requirements be
for establishing that a vessel is for off-
shore wind development?
(b) Where it is uncertain how much a
vessel will be used for offshore wind, how
should such situations be addressed?

Bulletin No. 2022–43 315 October 24, 2022
(7) Section 45X(c)(6) identifies “appli-
cable critical minerals,” and includes min-
imum purity percentages by mass.
(a) How should purity percentages be
determined?
(b) Should an independent third party
be required to verify the results?
(c) If so, what qualifications should
be required of an independent third-party
providing such verification?
(8) Is guidance needed regarding the
definitions of “converted” and “purified”?
(9) Is guidance needed regarding the
apportionment and pass-thru of credit
amounts to beneficiaries of estates or
trusts as provided in § 45X(d)(3)?
(10) Please provide comments on any
other topics under § 45X that may require
guidance.
.02 Qualifying Advanced Energy Proj-
ect Credit (§ 48C)
(1) Section 48C(c)(1)(A)(i), as
amended by the IRA, includes additional
types of equipment and property that
may be produced or recycled at a project
that re-equips, expands, or establishes an
industrial or manufacturing facility.
(a) Is guidance needed to define
“equipment designed to refine electrolyze,
or blend any fuel, chemical, or product
which is renewable, or low-carbon and
low-emission”? If so, how should this be
defined?
(b) Is guidance needed to define “prop-
erty designed to produce energy conserva-
tion technologies (including residential,
commercial, and industrial applications)”?
If so, how should this be defined?
(c) What should the Treasury Depart-
ment and the IRS consider in determining
“other advanced energy property designed
to reduce greenhouse gas emissions”?
(2) Section 48C(c)(1)(A)(ii) adds to the
list of eligible projects any project which
re-equips an industrial or manufacturing
facility with equipment designed to reduce
greenhouse gas emissions by at least 20
percent through the installation of certain
systems, including through the installa-
tion of energy efficiency and reduction in
waste from industrial processes.
(a) Is guidance needed to define
“energy efficiency”? If so, how should
this be defined?
(b) Is guidance needed to define “reduc-
tion in waste from industrial processes”?
If so, how should this be defined?
(c) Is guidance needed to define base-
line criteria, boundary conditions and/or
timeframe to determine achievement of
the 20 percent threshold?
(3) What should the Treasury Depart-
ment and the IRS consider in determining
“any other industrial technology designed
to reduce greenhouse gas emissions”? Is
guidance needed to include eligibility of
facilities currently producing industrial
materials for use in the construction or
alteration of buildings and infrastructure
projects (such as concrete, steel, asphalt,
and flat glass) that can be retrofitted to
produce materials that have substantially
lower levels of embodied greenhouse gas
emissions?
(4) How should a qualifying advanced
energy project substantiate its eligibil-
ity based on any of the available criteria,
but particularly the criteria provided by
§ 13501 of the IRA?
(a) Are there industry guidelines cur-
rently in place that a taxpayer may use to
demonstrate that a project reduces green-
house gas or other pollutant emissions? If
so, what guidelines?
(b) Are there existing industry guide-
lines or regulatory practices employed by
local governments or states that a taxpayer
may use to demonstrate that a project
reduces greenhouse gas or other pollutant
emissions, including submittal of environ-
mental product declarations (EPDs) that
include measurements of the embodied
greenhouse gas emissions of the relevant
material or product and conform with
international standards?
(5) Section 48C(e) directs the Secre-
tary to establish a program to consider and
award certifications of qualified invest-
ments eligible for the § 48C credit.
(a) What should the Treasury Depart-
ment and the IRS consider in determin-
ing the selection criteria for awarding the
§ 48C credit and to what extent should
the Treasury Department and the IRS rely
on precedent from previous experience
administering the § 48C credit during
previous allocation rounds provided in
Notice 2009-72, 2009-37 I.R.B. 325 and
Notice 2013-12, 2013-10 I.R.B. 543?
(b) What aspects of the previous allo-
cation rounds of the § 48C credit should
the Treasury Department and IRS con-
sider revising in establishing a new § 48C
program and administering it?
(6) Section 48C(e)(3)(C) provides, in
part, that if any certification is revoked, the
amount of the limitation under § 48C(e)
(2) must be increased by the amount of
the credit with respect to such revocation.
(a) Is guidance needed on revocation of
certifications? If so, what guidance?
(7) Please provide comments on any
other topics that may require guidance.
SECTION 4. SUBMISSION OF
COMMENTS
.01 Written comments should be submit-
ted by Friday, November 4, 2022. Consider-
ation will be given, however, to any written
comment submitted after Friday, November
4, 2022, if such consideration will not delay
the issuance of guidance. The subject line
for the comments should include a reference
to Notice 2022-47 Comments may be sub-
mitted in one of two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2022-0047 in the search
field on the regulations.gov homepage to
find this notice and submit comments).
(2) Alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2022-47), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
.02 All commenters are strongly
encouraged to submit comments electron-
ically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically,
and to the extent practicable on paper, to
its public docket.
SECTION 5. 60-DAY RULE
NOT EFFECTUATED FOR
THE PREVAILING WAGE
AND APPRENTICESHIP
REQUIREMENTS
For purposes of §§ 30C, 45, 45L, 45Q,
45U, 45V, 45Y, 45Z, 48, 48C, 48E, and
179D, the publication of this notice request-
ing comments is not the publication of guid-
ance with respect to the prevailing wage and
apprenticeship requirements, and it is not
relevant in determining whether the prevail-
ing wage and apprenticeship requirements
are satisfied under such sections. The Trea-
sury Department and the IRS will explicitly
identify when it has published guidance

October 24, 2022 316 Bulletin No. 2022–43
with respect to the prevailing wage and
apprenticeship requirements that is relevant
for determining whether such requirements
have been satisfied for purposes of §§ 30C,
45, 45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C,
48E, and 179D.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further informa-
tion regarding this notice, call the energy
security guidance contact number at (202)
317-5254 (not a toll-free number).
Request for Comments
on Incentive Provisions
for Improving the Energy
Efficiency of Residential
and Commercial Buildings
Notice 2022-48
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Reve-
nue Service (IRS) plan to issue guidance
regarding the provisions of §§ 25C, 25D,
45L, and 179D of the Internal Revenue
Code (Code), as amended by §§ 13301,
13302, 13304, and 13303, respectively,
of Public Law 117-169, 136 Stat. 1818
(August 16, 2022), commonly known as
the Inflation Reduction Act of 2022 (IRA).
This notice requests general comments on
questions arising because of these amend-
ments, as well as specific comments
involving questions listed in section 3
of this notice. Comments received in
response to this notice will help to inform
the development of guidance implement-
ing §§ 25C, 25D, 45L, and 179D.
SECTION 2. BACKGROUND
.01 Energy Efficient Home Improve-
ment Credit (§ 25C)
Section 25C was originally enacted
by § 1333(a) of the Energy Policy Act of
2005, Pub. L. 109-58, 119 Stat. 594, 1026
(August 8, 2005), to provide the nonbusi-
ness energy property credit for the pur-
chase and installation of certain energy
efficient improvements in taxpayers’ prin-
cipal residences. Section 25C has been
amended several times, most recently
by § 13301 of the IRA, which renamed
this provision the “energy efficient home
improvement credit” (§ 25C credit).
Before the enactment of the IRA, § 25C
had expired after December 31, 2021. Sec-
tion 13301(a) of the IRA amends § 25C(g)
to make the § 25C credit available through
December 31, 2032.
Section 13301(b) of the IRA amends
§ 25C(a) to allow a credit for 30 percent
of amounts paid or incurred by individual
taxpayers during the taxable year for qual-
ified energy efficiency improvements and
residential energy property expenditures.
As amended by § 13301(c) of the IRA,
the § 25C credit is generally limited to
an annual cap of $1,200, with exceptions
for certain categories of improvements.
The caps and categories of improvements
under these exceptions are as follows:
$600 for qualified energy property; $600
for exterior windows and skylights; $250
for any single exterior door; and $500 in
the aggregate for all exterior doors. Heat
pumps, heat pump water heaters, biomass
stoves, and biomass boilers are allowed an
aggregate annual credit for such improve-
ments of up to $2,000.
Section 13301(d) of the IRA amends
the definition of “energy efficient build-
ing envelope components” and “building
envelope component,” terms that help
define the types of improvements that are
qualified energy efficiency improvements.
As amended by the IRA, § 25C(c)(2)
defines “energy efficient building enve-
lope component” as a building envelope
component that meets, (A) in the case of
an exterior window or skylight, Energy
Star most efficient certification require-
ments, (B) in the case of an exterior door,
applicable Energy Star requirements, and
(C) in the case of any other component,
the criteria for such component estab-
lished by the most recent International
Energy Conservation Code standard in
effect as of the start of the calendar year
2 years prior to the calendar year in which
such component is placed in service. As
amended by the IRA, § 25C(c)(3) defines
“building envelope component” as (A)
any insulation material or system, includ-
ing air sealing material or system, which
is specifically and primarily designed to
reduce the heat loss or gain of a dwelling
unit when installed in or on the dwelling
unit, (B) exterior windows (including sky-
lights), and (C) exterior doors.
Section 13301(e) of the IRA amends the
definitions of “residential energy property
expenditures” and “qualified energy prop-
erty.” As amended by the IRA, § 25C(d)
(1) defines “residential energy property
expenditures” as expenditures made by the
taxpayer for qualified energy property that
is (A) installed on or in connection with a
dwelling unit located in the United States
and used as a residence by the taxpayer,
and (B) originally placed in service by the
taxpayer, including labor costs properly
allocable to onsite preparation, assembly,
or original installation of the property. As
amended by the IRA, § 25C(d)(2) defines
“qualified energy property” as:
(A) Any of the following that meet
or exceed the highest efficiency tier (not
including any advanced tier) established
by the Consortium for Energy Efficiency
that is in effect as of the beginning of the
calendar year in which the property is
placed in service: (i) an electric or natural
gas heat pump water heater, (ii) an electric
or natural gas heat pump, (iii) a central air
conditioner, (iv) a natural gas, propane, or
oil water heater, or (v) a natural gas, pro-
pane, or oil furnace or hot water boiler.
(B) A biomass stove or boiler that (i)
uses the burning of biomass fuel to heat a
dwelling unit located in the United States
and used as a residence by the taxpayer,
or to heat water for use in such a dwelling
unit, and (ii) has a thermal efficiency rat-
ing of at least 75 percent (measured by the
higher heating value of the fuel).
(C) Any oil furnace or hot water boiler
that (i) is placed in service after Decem-
ber 31, 2022 and before January 1, 2027,
and (I) meets or exceeds 2021 Energy
Star efficiency criteria, and (II) is rated
by the manufacturer for use with fuel
blends at least 20 percent of the volume
of which consists of an eligible fuel, or
(ii) is placed in service after December
31, 2026, and (I) achieves an annual fuel
utilization efficiency rate of not less than

Bulletin No. 2022–43 317 October 24, 2022
90, and (II) is rated by the manufacturer
for use with fuel blends at least 50 per-
cent of the volume of which consists of
an eligible fuel.
(D) Any improvement to, or replace-
ment of, a panelboard, sub-panelboard,
branch circuits, or feeders that (i) is
installed in a manner consistent with the
National Electric Code, (ii) has a load
capacity of not less than 200 amps, (iii)
is installed in conjunction with (I) any
qualified energy efficiency improvements,
or (II) any qualified energy property
described in § 25C(d)(2)(A) through (C)
for which a credit is allowed under this
section, and (iv) enables the installation
and use of any property described in sub-
clause (I) or (II) of § 25C(d)(2)(D)(iii).
As amended by the IRA, § 25C(d)(3)
defines “eligible fuel” as (A) biodiesel
and renewable diesel (within the meaning
of § 40A), (B) second generation biofuel
(within the meaning of § 40), and (C)
transportation fuel (as defined in § 45Z(d)
(5)).
Section 13301(f) of the IRA expands
the types of expenditures eligible for
the § 25C credit to include expenditures
for home energy audits. Section 25C(e)
defines “home energy audit” as an inspec-
tion and written report with respect to a
dwelling unit located in the United States
and owned or used by the taxpayer as the
taxpayer’s principal residence that (1)
identifies the most significant and cost-ef-
fective energy efficiency improvements
with respect to such dwelling unit, includ-
ing an estimate of the energy and cost sav-
ings with respect to each such improve-
ment, and (2) is conducted and prepared
by a home energy auditor that meets the
certification or other requirements spec-
ified by the Secretary of the Treasury or
her delegate (Secretary) in regulations or
other guidance. As amended by the IRA,
§ 25C(b)(6) limits the credit for such
expenditures to $150 and imposes a sub-
stantiation requirement.
Section 13301(g) of the IRA adds new
§ 25C(h), which imposes a product iden-
tification number requirement. Section
25C(h)(1) provides that no § 25C credit
is allowed for any item of specified prop-
erty placed in service after December 31,
2024, unless (A) such item is produced
by a qualified manufacturer, and (B) the
taxpayer includes the qualified product
identification number of such item on the
return of tax for the taxable year. Section
25C(h)(2) defines “qualified product iden-
tification number” as, with respect to any
item of specified property, the product
identification number assigned to such
item by the qualified manufacturer pur-
suant to the methodology referred to in
§ 25C(h)(3). Section 25C(h)(3) defines
“qualified manufacturer” as any manu-
facturer of specified property that enters
into an agreement with the Secretary that
provides that such manufacturer will (A)
assign a product identification number to
each item of specified property produced
by such manufacturer utilizing a method-
ology that will ensure that such number
is unique to each such item (by utilizing
numbers or letters that are unique to such
manufacturer or by such other method as
the Secretary may provide), (B) label such
item with such number in such manner as
the Secretary may provide, and (C) make
periodic written reports to the Secretary
(at such times and in such manner as the
Secretary may provide) of the product
identification numbers so assigned and
including such information as the Sec-
retary may require with respect to the
item of specified property to which such
number was so assigned. Section 25C(h)
(4) defines “specified property” as any
qualified energy property and any prop-
erty described in § 25C(c)(3)(B) or (C),
referencing exterior windows (including
skylights) and exterior doors.
Section 13301(i) of the IRA provides
the effective dates for the amendments to
§ 25C. In general, except as provided in
§ 13301(i)(2) and (3), the amendments
apply to property placed in service after
December 31, 2022. Section 13301(i)
(2) of the IRA provides that amendments
made by § 13301(a) of the IRA relating
to the extension of the credit apply to
property placed in service after Decem-
ber 31, 2021. Section 13301(i)(3) of the
IRA provides that amendments made
by § 13301(g) of the IRA relating to the
requirements for product identification
numbers apply to property placed in ser-
vice after December 31, 2024.
.02 Residential Clean Energy Credit
(§ 25D)
Section 25D was originally enacted
by § 1335(a) of the Energy Policy Act of
2005, Pub. L. 109–58, 119 Stat. 594, 1033
(August 8, 2005) to provide a tax credit
for expenditures made to improve the
energy efficiency of taxpayers’ residential
property. Section 25D has been amended
several times, most recently by § 13302
of the IRA. Section 25D(a) allows a credit
for individual taxpayers for an amount
equal to the sum of the applicable per-
centages of certain qualified expenditures,
such as solar electric property and geo-
thermal heat pump property, made during
the taxable year (§ 25D credit).
Section 13302(a)(1) of the IRA amends
§ 25D(h), extending § 25D through
December 31, 2034. Section 13302(a)(2)
of the IRA amends the phaseout of the tax
credit provided in § 25D(g). As amended
by the IRA, § 25D(g)(1) through (5) pro-
vides that for purposes of calculating the
§ 25D credit, the applicable percentage of
the phaseout is:
(1) in the case of property placed in ser-
vice after December 31, 2016, and before
January 1, 2020, 30 percent;
(2) in the case of property placed in ser-
vice after December 31, 2019, and before
January 1, 2022, 26 percent;
(3) in the case of property placed in ser-
vice after December 31, 2021, and before
January 1, 2033, 30 percent;
(4) in the case of property placed in ser-
vice after December 31, 2032, and before
January 1, 2034, 26 percent, and
(5) in the case of property placed in ser-
vice after December 31, 2033, and before
January 1, 2035, 22 percent.
Section 13302(b) of the IRA amends
§ 25D(a)(6) to include “qualified battery
storage technology expenditures” as eli-
gible for the § 25D credit and amends
§ 25D(d)(6). As amended by the IRA,
§ 25D(d)(6) defines the term “qualified
battery storage technology expenditure”
as an expenditure for battery storage
technology that is installed in connection
with a dwelling unit located in the United
States that is used as a residence by the
taxpayer, and has a capacity of not less
than 3 kilowatt hours.
Section 13302(d)(1) of the IRA
provides that except as provided in
§ 13302(d)(2) of the IRA, the amend-
ments made to § 25D by § 13302 of the
IRA apply to expenditures made after
December 31, 2021. Section 13302(d)(2)
of the IRA provides that the amendments
to § 25D pertaining to qualified battery

October 24, 2022 318 Bulletin No. 2022–43
energy technology apply to expenditures
made after December 31, 2022.
.03 New Energy Efficient Home Credit
(§ 45L)
Section 45L was originally enacted
by § 1332(a) of the Energy Policy Act of
2005, Public Law 109-58, 119 Stat 594,
1024 (on August 8, 2005), to provide a
credit for the construction of new energy
efficient homes (§ 45L credit). Section
45L has been amended several times, most
recently by § 13304 of the IRA.
Section 13304 of the IRA retroactively
extends the § 45L credit for dwelling units
acquired after December 31, 2021, by
retaining the credit requirements in place
prior to the enactment of the IRA. For
dwelling units acquired after December
31, 2022, the IRA adds new energy effi-
ciency standards, and new credit amounts,
some of which are increased based on
meeting a prevailing wage requirement.
1

As amended by the IRA, the § 45L credit
is available for dwelling units acquired
before January 1, 2033.
Section 45L(a)(1) provides that for
purposes of the general business credit
under § 38 of the Code, in the case of an
eligible contractor, the § 45L credit for the
taxable year is the applicable amount for
each qualified new energy efficient home
that is constructed by the eligible contrac-
tor and acquired by a person from such
eligible contractor for use as a residence
during the taxable year.
Section 45L(a)(2) provides that the
“applicable amount” ranges from between
$500 and $5,000 and is based on a com-
bination of (A) whether the dwelling unit
is eligible to participate in the Energy
Star Residential New Construction Pro-
gram, the Energy Star Manufactured
New Homes program, or the Energy Star
Multifamily New Construction Program;
and (B) whether the dwelling unit is cer-
tified as a zero energy ready home under
the zero energy ready home program of
the Department of Energy as in effect on
January 1, 2023 (or any successor pro-
gram determined by the Secretary). In all
cases, the dwelling unit must satisfy either
the amended energy saving requirements
provided in § 45L(c)(2) for single family
homes or in § 45L(c)(3) for multifamily
homes (whichever applies).
.04 Energy Efficient Commercial Build-
ings Deduction (§ 179D)
Section 179D was originally enacted
by § 1331(a) of the Energy Policy Act
of 2005, Public Law 109-58, 119 Stat.
594, 1020 (August 8, 2005), to provide a
deduction for the cost of energy efficient
commercial building property. Section
179D has been amended several times,
most recently by § 13303 of the IRA.
Section 13303 of the IRA amends
§ 179D by changing the deduction
amount (subject to prevailing wage and
apprenticeship requirements), revising the
energy efficiency requirements, remov-
ing the partial deduction and the interim
rule for lighting systems, broadening
the type of entities that may allocate the
deduction to a designer, and providing a
new alternative deduction for energy effi-
cient building retrofit property (alternative
deduction). The amendments are gener-
ally effective for taxable years beginning
after December 31, 2022. However, the
alternative deduction applies to property
placed in service after December 31, 2022
(in taxable years ending after such date) if
such property is placed in service pursuant
to a qualified retrofit plan established after
December 31, 2022.
Section 179D(a) allows as a deduc-
tion an amount equal to the cost of energy
efficient commercial building property
(EECBP) placed in service during the tax-
able year. As amended by § 13303(a) of
the IRA, § 179D(b)(1) provides that the
deduction with respect to any building for
any taxable year cannot exceed the excess
(if any) of the product of the applicable
dollar value and the square footage of the
building, over the aggregate amount of
§ 179D deductions (including under the
alternative deduction) with respect to the
building for the 3 taxable years immedi-
ately preceding such taxable year (or, in
the case of any such deduction allowable
to a person other than the taxpayer, for
any taxable year ending during the 4-tax-
able-year period ending with such taxable
year). Section 179D(b)(2) provides that
the applicable dollar value is an amount
equal to $0.50 increased (but not above
$1.00) by $0.02 for each percentage point
by which the total annual energy and
power costs for the building are certified
to be reduced by a percentage greater than
25 percent.
Section 179D(b)(3) provides an
increased deduction amount for property
that satisfies prevailing wage and appren-
ticeship requirements.
2
Section 179D(b)(3)(B) provides that in
the case of any EECBP, energy efficient
building retrofit property, or property
installed pursuant to a qualified retrofit
plan, such property meets the require-
ments for an increased deduction amount
if installation of such property begins
prior to the date that is 60 days after the
Secretary publishes guidance with respect
to the prevailing wage and apprenticeship
requirements of § 179D(b)(4)(A) or (5),
or installation of such property satisfies
the prevailing wage and apprenticeship
requirements.
Section 179D(b)(6) directs the Secre-
tary to issue regulations or other guidance
as the Secretary determines necessary
to carry out the purposes of § 179D(b),
including regulations or other guidance
that provides for requirements for record-
keeping or information reporting for pur-
poses of administering the requirements
of § 179D(b).
Section 13303(a)(2) of the IRA
decreased the minimum energy efficiency
savings required for the § 179D deduction
by amending the definition of EECBP. As
amended by the IRA, § 179D(c)(1) now
defines EECBP, in part, as property that
is certified as being installed as part of a
plan designed to reduce the total annual
energy and power costs with respect to the
interior lighting systems, heating, cooling,
ventilation, and hot water systems of the
building by 25 percent or more in com-
parison to a reference building that meets
the minimum requirements of Reference
Standard 90.1.
As amended by the IRA, § 179D(c)(2)
provides that for purposes of § 179D, the
1
Similar prevailing wage requirements were added by the IRA to several other tax credit provisions of the Code.

These provisions will be addressed in a separate notice requesting comments.
2
Similar prevailing wage and apprenticeship requirements were added by the IRA to several other tax credit provisions of the Code.

These provisions will be addressed in a separate notice
requesting comments.

Bulletin No. 2022–43 319 October 24, 2022
term “Reference Standard 90.1” means,
with respect to any property, the more
recent of (A) Standard 90.1-2007 pub-
lished by the American Society of Heat-
ing, Refrigerating, and Air Conditioning
Engineers and the Illuminating Engineer-
ing Society of North America; or (B) the
most recent Standard 90.1 published by
the American Society of Heating, Refrig-
erating, and Air Conditioning Engineers
and the Illuminating Engineering Society
of North America for which the Depart-
ment of Energy has issued a final deter-
mination and that has been affirmed by
the Secretary, after consultation with
the Secretary of Energy, for purposes
of § 179D not later than the date that is
4 years before the date such property is
placed in service.
As redesignated and then amended
by § 13303(c) of the IRA, § 179D(d)(1)
directs the Secretary, after consultation
with the Secretary of Energy, to promul-
gate regulations that describe in detail
methods for calculating and verifying
energy and power consumption and cost
with respect to any property, based on the
provisions of the most recent California
Nonresidential Alternative Calculation
Method Approval Manual affirmed by the
Secretary, after consultation with the Sec-
retary of Energy, for purposes of § 179D
not later than the date that is 4 years before
the date such property is placed in service.
As redesignated and then amended by
§ 13303(a)(6) of the IRA, § 179D(d)(3)
(A) provides that in the case of EECBP
installed on or in property owned by
a specified tax-exempt entity, the Sec-
retary is to promulgate regulations or
guidance to allow the allocation of the
deduction to the person primarily respon-
sible for designing the property in lieu of
the tax-exempt owner of such property,
which person is treated as the taxpayer for
purposes of § 179D. As amended by the
IRA, § 179D(d)(3)(B) defines “specified
tax-exempt entity” as –
(i) the United States, any State or polit-
ical subdivision thereof, any U.S. terri-
tory, or any agency or instrumentality of
any of the foregoing;
(ii) an Indian tribal government (as
defined in § 30D(g)(9) of the Code) or
Alaska Native Corporation (as defined in
§ 3 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1602(m)); and
(iii) any organization exempt from tax
imposed by chapter 1 of the Code.
Section 13303(a)(7) of the IRA adds
new § 179D(f) to provide an alternative
deduction for energy efficient building
retrofit property. Section 179D(f)(1) pro-
vides that in the case of a taxpayer that
elects (at such time and in such manner
as the Secretary may provide) the alterna-
tive deduction with respect to any quali-
fied building, the taxpayer is allowed
as a deduction for the taxable year that
includes the date of the qualifying final
certification with respect to the qualified
retrofit plan of such building, an amount
equal to the lesser of (A) the excess
described in § 179D(b) (determined by
substituting “energy use intensity” for
“total annual energy and power costs”
in § 179D(b)(2)); or (B) the aggregate
adjusted basis (determined after taking
into account all adjustments with respect
to such taxable year other than the reduc-
tion under § 179D(e)) of energy efficient
building retrofit property placed in ser-
vice by the taxpayer pursuant to such
qualified retrofit plan.
Section 179D(f)(2) provides that for
purposes of the alternative deduction
the term “qualified retrofit plan” means
a written plan prepared by a qualified
professional that specifies modifications
to a building that, in the aggregate, are
expected to reduce such building’s energy
use intensity by 25 percent or more in
comparison to the baseline energy use
intensity of such building. A qualified ret-
rofit plan must require a qualified profes-
sional to –
(A) certify the energy use intensity of
such building as of any date during the
1-year period ending on the date on which
the property installed pursuant to such a
plan is placed in service;
(B) certify the status of property
installed pursuant to such plan as meeting
the requirements of § 179D(f)(3)(B) and
(C); and
(C) certify the energy use intensity of
such building as of any date that is more
than 1 year after the date on which the
property installed pursuant to such plan is
placed in service.
Section 179D(f)(3) provides that for
purposes of the alternative deduction, the
term “energy efficient building retrofit
property” means property (A) with respect
to which depreciation (or amortization in
lieu of depreciation) is allowable; (B) that
is installed on or in any qualified building;
(C) that is installed as part of (i) the interior
lighting systems, (ii) the heating, cooling,
ventilation, and hot water systems, or (iii)
the building envelope; and (D) that is cer-
tified in accordance with § 179D(f)(2)(B)
as meeting the requirements of § 179D(f)
(3)(B) and (C).
Section 179D(f)(4) provides that for
purposes of the alternative deduction, the
term “qualified building” means any build-
ing that is located in the United States and
was originally placed in service not less
than 5 years before the establishment of
the qualified retrofit plan with respect to
such building.
Section 179D(f)(5) provides that for
purposes of the alternative deduction,
the term “qualifying final certification”
means, with respect to any qualified ret-
rofit plan, the certification described in
§ 179D(f)(2)(C) if the energy use intensity
certified in such certification is not more
than 75 percent of the baseline energy use
intensity of the building.
Section 179D(f)(6)(A) provides that
for purposes of the alternative deduction,
the term “baseline energy use intensity”
means the energy use intensity certified
under § 179D(f)(2)(A), as adjusted to take
into account weather. Section 179D(f)(6)
(B) provides that for purposes of § 179D(f)
(6)(A), the adjustments described in
§ 179D(f)(6)(A) must be determined in
such manner as the Secretary provides.
Section 179D(f)(7)(A) provides that
for purposes of the alternative deduction,
the term “energy use intensity” means
the annualized, measured site energy use
intensity determined in accordance with
such regulations or other guidance as
the Secretary provides and measured in
British thermal units. Section 179D(f)(7)
(B) provides that the term “qualified pro-
fessional” means an individual who is a
licensed architect or a licensed engineer
and meets such other requirements as the
Secretary may provide.
Section 179D(f)(8)(A) provides that
in the case of any building with respect
to which an election is made for an
alternative deduction, the term EECBP
does not include any energy efficient
building retrofit property with respect
to which a deduction is allowable

October 24, 2022 320 Bulletin No. 2022–43
under § 179D(f). Section 179D(f)(8)
(B)(i) provides that except as provided
in § 179D(f)(8)(B)(ii), the special rules
provided by § 179D(d) do not apply for
purposes of the alternative deduction.
Section 179D(f)(8)(B)(ii) provides that
rules similar to the rules of § 179D(d)(3)
related to the allocation of the deduction
for public property apply for purposes of
the alternative deduction.
SECTION 3. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments on questions arising
from the amendments made by the IRA to
§§ 25C, 25D, 45L, and 179D. Comment-
ers are encouraged to specify the issues on
which guidance is needed most quickly as
well as the most important issues on which
guidance is needed. In addition to general
comments, the Treasury Department and
the IRS request comments that address the
following specific questions:
.01 Energy Efficient Home Improve-
ment Credit (§ 25C):
(1) Section 25C(e)(2) directs the Sec-
retary to prescribe “certification or other
requirements” for home energy auditors
for credit eligibility. What criteria should
the Treasury Department and the IRS con-
sider requiring for certification or other
requirements for home energy auditors?
(2) Is guidance needed regarding the
definition of “qualified energy property” in
§ 25C(d)(2) as amended by the IRA, such
as definitions for the terms “panelboard”
or “feeders”? Specifically, § 25C(d)(2)
(B) defines “qualified energy property”
to include biomass stoves or boilers, but
only those that have “a thermal efficiency
rating of at least 75 percent (measured by
the higher heating value of the fuel).” Is
guidance needed to define the term “ther-
mal efficiency rating”? If so, what testing
procedures should the Treasury Depart-
ment and the IRS consider requiring or
permitting to be used by manufacturers to
measure thermal efficiency and demon-
strate ratings that are valid for purposes of
the § 25C credit?
(3) Section 25C(h) requires qualified
manufacturers to provide unique product
identification numbers to each item of
specified property and make periodic writ-
ten reports to the Secretary of the product
identification numbers assigned. What
should the Treasury Department and the
IRS consider (1) in determining the man-
ner of agreements between the IRS and
the qualified manufacturer; (2) in devel-
oping a methodology to ensure that each
product identification number is unique to
each item of specified property; (3) in pre-
scribing the manner by which such speci-
fied property must be labeled with unique
product identification numbers; and (4)
in developing the requirements for the
qualified manufacturers’ periodic written
reports?
(4) Please provide comments on any
other topics relating to the § 25C credit
that may require guidance.
.02 Residential Clean Energy Credit
(§ 25D):
(1) Is guidance needed regarding the
definition of “qualified battery storage
technology expenditure” in § 25D(d)(6)?
(2) Section 25D(b)(2) provides that
no credit is allowed under § 25D for an
item of property described in § 25D(d)(1)
unless such property is certified for per-
formance by the non-profit Solar Rating
Certification Corporation, or a comparable
entity endorsed by the government of the
State in which such property is installed.
What information should the Treasury
Department and the IRS consider in deter-
mining what constitutes a “comparable
entity”?
(3) Please provide comments on any
other topics relating to the § 25D credit
that may require guidance.
.03 New Energy Efficient Home Credit
(§ 45L):
(1) Section 45L(b)(3) provides that for
purposes of § 45L, the term “construc-
tion” includes “substantial reconstruction
and rehabilitation.” Is guidance defining
the term “substantial reconstruction and
rehabilitation” needed? If so, how should
the term be defined? If needed, should
the definition align with requirements or
standards used in the qualified Energy Star
and Zero Energy Ready Home Programs?
(2) Please provide comments on any
other topics relating to the § 45L credit
that may require guidance.
.04 Energy Efficient Commercial Build-
ings Deduction (§ 179D):
(1) Section 179D(d)(3)(A) provides
that in the case of EECBP installed on or in
property owned by a specified tax-exempt
entity, the Secretary is to promulgate regu-
lations or guidance to allow the allocation
of the deduction “to the person primarily
responsible for designing the property in
lieu of the owner of such property.” What
criteria should the Treasury Department
and the IRS consider in providing rules
to determine the person that is “primarily
responsible for designing the property”
under § 179D(3)(A)?
(2) Section 179D(f)(7)(A) provides
that for purposes of § 179D(f), the term
“energy use intensity” means the annual-
ized, measured site energy use intensity
determined in accordance with such regu-
lations or other guidance as the Secretary
provides and measured in British thermal
units.
(a) What criteria should the Trea-
sury Department and the IRS consider in
developing regulations or other guidance
addressing this determination?
(b) How should the instruction in
§ 179D(h)(1) requiring that new technolo-
gies regarding renewable energy be taken
into account in determining energy effi-
ciency and savings be taken into account
in determining energy use intensity?
(3) Section 179D(f)(2) provides detail
on a “qualified retrofit plan.” Is guidance
providing additional definitions or other
guidance regarding qualified retrofit plans
needed?
(4) Section 179D(f)(7)(B) provides that
the term “qualified professional” means
an individual who is a licensed architect or
a licensed engineer and meets such other
requirements as the Secretary provides.
Is any guidance providing other require-
ments that licensed architects or licensed
engineers must satisfy needed?
(5) Please provide comments on any
other topics relating to the § 179D deduc-
tion that may require guidance.
SECTION 4. SUBMISSION OF
COMMENTS
.01 Written comments should be submit-
ted by Friday, November 4, 2022. Consider-
ation will be given, however, to any written
comment submitted after Friday, November
4, 2022, if such consideration will not delay
the issuance of guidance. The subject line
for the comments should include a refer-
ence to Notice 2022-48. Comments may be
submitted in one of two ways:

Bulletin No. 2022–43 321 October 24, 2022
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2022-0048 in the search
field on the regulations.gov homepage to
find this notice and submit comments).
(2) Alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2022-48), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
.02 All commenters are strongly
encouraged to submit comments electron-
ically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically, or
on paper, to its public docket on regula-
tions.gov.
SECTION 5. 60-DAY RULE
NOT EFFECTUATED FOR
THE PREVAILING WAGE AND
APPRENTICESHIP REQUIREMENT
For purposes of §§ 30C, 45, 45L,
45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E,
and 179D, the publication of this notice
requesting comments is not the publica-
tion of guidance with respect to the pre-
vailing wage and apprenticeship require-
ments, and it is not relevant in determining
whether the prevailing wage and appren-
ticeship requirements are satisfied under
such sections. The Treasury Department
and the IRS will explicitly identify when
it has published guidance with respect to
the prevailing wage and apprenticeship
requirements that is relevant for determin-
ing whether such requirements have been
satisfied for purposes of §§ 30C, 45, 45L,
45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E,
and 179D.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further information
regarding this notice, call the energy secu-
rity guidance contact number at (202)
317-5254 (not a toll-free number).
Request for Comments on
Certain Energy Generation
Incentives
Notice 2022-49
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Reve-
nue Service (IRS) plan to issue guidance
regarding the provisions of §§ 45, 45U,
45Y, 48, and 48E of the Internal Reve-
nue Code (Code), as amended or added
by §§ 13101, 13105, 13701, 13102, and
13702, respectively, of Public Law 117-
169, 136 Stat. 1818 (August 16, 2022),
commonly known as the Inflation Reduc-
tion Act of 2022 (IRA). This notice
requests general as well as specific com-
ments on issues arising under §§ 45, 45U,
45Y, 48, and 48E. Comments received in
response to this notice will help to inform
development of guidance implementing
§§ 45, 45U, 45Y, 48, and 48E.
SECTION 2. BACKGROUND
.01 Renewable Electricity Production
Credit (§ 45).
For purposes of computing the general
business credit under § 38 of the Code,
§ 45(a) allows a credit for any taxable
year for electricity produced by the tax-
payer from qualified energy resources at
a qualified facility and sold to an unre-
lated person during the taxable year. The
§ 45 credit has been amended many times
since its enactment on October 24, 1992.
Most recently, §§ 13101(a) to (c), (e)(1)
and (2)(A), (f) through (j), 13102(f)(4),
and 13204(b)(1) of the IRA made amend-
ments to § 45. These amendments include,
but are not limited to: changing the credit
rate (and associated rounding convention)
for electricity produced by certain facili-
ties; extending the beginning of construc-
tion and placed in service deadlines for
certain facilities; adding a special rule for
electricity used at a clean hydrogen facil-
ity; amending the definition of marine and
hydrokinetic renewable energy; and pro-
viding the Secretary of the Treasury or her
delegate (Secretary) with the authority to
issue regulations or other guidance as nec-
essary to carry out the purposes of § 45(b),
including regulations or other guidance
which provides requirements for record-
keeping or information reporting for pur-
poses of administering the requirements
of § 45(b).
1

.02 Energy Investment Credit (§ 48).
For purposes of the investment credit
under § 46, § 48(a)(1) provides, in part,
that the energy credit for any taxable
year is the energy percentage of the basis
of each energy property placed in ser-
vice during such taxable year. Congress
has repeatedly amended § 48, includ-
ing repealing and suspending the credit,
changing the amount of the credit and
rules for eligibility.
Most recently, §§ 13101(d), (e)(2)
(B) and (3), 13102(a) through (f)(3), (g),
(h), (j) through (m), (o), (p), 13103(a),
and 13204(c)(1) and (2) of the IRA made
amendments to § 48. These amendments
include, but are not limited to: changing
the energy percentage used to calculate
the credit; amending the definitions of cer-
tain types of energy property; extending
the beginning of construction and placed
in service deadlines for certain types of
energy property; adding a new rule for
interconnection property; adding an elec-
tion to treat clean hydrogen production
facilities as energy property; expand-
ing the definition of “energy property”
to include certain electrochromic glass,
energy storage technology, qualified bio-
gas property, and microgrid controllers;
modifying eligibility dates regarding the
election to treat as energy property certain
types of qualified facilities referred to as
1
Other amendments made by the IRA to § 45 increase the credit amount if certain prevailing wage, apprenticeship, domestic content, and energy communities requirements are satisfied.

The IRA also provides an election for a taxpayer to receive a direct payment or to transfer the credit.

Another amendment made by the IRA addresses the credit phaseout for a taxpayer that
makes an election for direct payment.

Similar provisions were added by the IRA to several other provisions of the Code discussed in this notice.

See Notice 2022-51 requesting comments
on prevailing wage, energy communities, and apprenticeship requirements related to several Code sections and Notice 2022-50 requesting comments on direct payment and transferability
issues related to several Code sections.

October 24, 2022 322 Bulletin No. 2022–43
a “qualified investment credit facility”;
establishing a special program to encour-
age the placement of certain facilities in
connection with low-income commu-
nities (discussed in section 2.06 of this
notice); and providing the Secretary with
the authority to issue regulations or other
guidance as necessary to carry out the
purposes of § 48, including regulations
or other guidance providing for recapture
of the credit in certain situations and the
recordkeeping or information reporting
for purposes of administering the require-
ments of § 48(a).
.03 Zero-Emission Nuclear Power Pro-
duction Credit (§ 45U).
Section 13105 of the IRA added new
§ 45U, the zero-emission nuclear power
production credit, to provide an income
tax credit for electricity produced at a
qualified nuclear power facility and sold
by the taxpayer to an unrelated person in
taxable years beginning after December
31, 2023, and before January 1, 2033. A
qualified nuclear power facility is a facility
owned by the taxpayer that was placed in
service before the enactment of § 45U and
uses nuclear energy to produce electric-
ity. A facility that is an advanced nuclear
power facility as defined in § 45J(d)(1)
is not a qualified nuclear power facility
under § 45U.
The credit under § 45U(a) is calculated
by multiplying the kilowatt hours of elec-
tricity produced and sold during the tax-
able year by 0.3 cents (adjusted for infla-
tion), and then subtracting the “reduction
amount” for such taxable year. Section
45U(b)(2)(A) defines the term “reduc-
tion amount” as the lesser of (1) the credit
amount determined before application of
the reduction amount or (2) the amount
equal to 16 percent of the excess of (a)
the gross receipts from any electricity pro-
duced by the facility and sold to an unre-
lated person during the taxable year, over
(b) the amount equal to the product of 2.5
cents (adjusted for inflation) multiplied by
the kilowatt hours of electricity produced
by the facility and sold to an unrelated
person during the taxable year. Section
45U(b)(2)(B) provides rules regarding
the treatment of gross receipts. The credit
amount determined under § 45U(a) is
multiplied by 5 if certain prevailing wage
requirements are met. Section 45U(d)(3)
grants the Secretary authority to issue
regulations or other guidance to adminis-
ter the wage requirements of § 45U.
.04 Clean Electricity Production Credit
(§ 45Y).
Section 13701 of the IRA added new
§ 45Y, the clean electricity production
credit, to provide a tax credit for electric-
ity produced by the taxpayer at a qualified
facility and either (1) sold by the taxpayer
to an unrelated person during the tax-
able year, or (2) in the case of a qualified
facility which is equipped with a meter-
ing device which is owned and operated
by an unrelated person, sold, consumed,
or stored by the taxpayer during the tax-
able year. Section 45Y(b)(1)(A) defines a
“qualified facility” as a facility owned by
the taxpayer that is used for the production
of electricity, placed in service after 2024,
and has a greenhouse gas emissions rate
of not greater than zero. A facility will be
considered a qualified facility for a period
of ten years beginning on the date it is
placed in service. A facility placed in ser-
vice before January 1, 2025, also can be
considered a qualified facility to the extent
of the increased amount of electricity pro-
duced at the facility by reason of a new
unit placed in service after December 31,
2024, or additions of capacity placed in
service after December 31, 2024.
Section 45Y(a)(1) provides that the
amount of the credit is equal to the prod-
uct of (A) the kilowatt hours of electricity
produced and sold to an unrelated person
(or sold, consumed, or stored if the facil-
ity is equipped with a metering device) by
the taxpayer during the taxable year, mul-
tiplied by (B) the applicable amount with
respect to such qualified facility. Section
45Y(a)(2) provides that the applicable
amount is generally 0.3 cents (adjusted
for inflation), which can be increased to
1.5 cents (adjusted for inflation) if require-
ments for prevailing wage and apprentice-
ship are met.
Section 45Y(b)(2) provides that the
greenhouse gas emissions rate is the
amount of greenhouse gases emitted into
the atmosphere by a facility that pro-
duces electricity, expressed as grams of
CO
2
e per KWh. The emissions rate for
different types or categories of facili-
ties will be published annually by the
Secretary, and to the extent not estab-
lished by the Secretary, a taxpayer that
owns the facility may file a petition for
determination of the rate. Section 45Y(b)
(2) also provides special greenhouse gas
accounting rules allowing calculation of
a net greenhouse gas emissions rate for
facilities producing electricity through
combustion or gasification.
Section 45Y(d) provides a credit phase-
out for projects the construction of which
begins during the first, second, or third
calendar year following the “applicable
year,” which is the later of (i) the calendar
year in which the Secretary determines
that the annual greenhouse gas emissions
from the production of electricity in the
United States are equal to or less than 25
percent of such emissions for calendar
year 2022, or (ii) 2032.
Section 45Y(f) directs the Secretary to
issue guidance regarding implementation
of § 45Y not later than January 1, 2025,
including calculation of greenhouse gas
emission rates for qualified facilities and
determination of clean electricity produc-
tion credits under § 45Y.
.05 Clean Electricity Investment Credit
(§ 48E).
Section 13702 of the IRA added § 48E,
the clean electricity investment credit,
to provide an investment tax credit for
qualified property. The credit amount for
any taxable year is equal to the applica-
ble percentage of the qualified investment
for such taxable year with respect to any
qualified facility and any energy storage
technology. The applicable percentage for
both qualified facilities and energy stor-
age technology is generally 6 percent. The
applicable percentage can be increased to
30 percent if prevailing wage and appren-
ticeship requirements are met.
A qualified facility is a facility used for
the generation of electricity and placed
in service after December 31, 2024, for
which the anticipated greenhouse gas
emissions rate is not greater than zero.
Section 48E(b)(3) incorporates the special
greenhouse gas accounting rules provided
in § 45Y(b)(2) that allow the calculation
of a net greenhouse gas emissions rate for
facilities producing electricity through
combustion or gasification and for facil-
ities that include carbon capture and
sequestration equipment.
A taxpayer’s qualified investment with
respect to any qualified facility for any
taxable year is the sum of: the basis of any
qualified property placed in service by

Bulletin No. 2022–43 323 October 24, 2022
the taxpayer during a taxable year that is
part of a qualified facility plus, for quali-
fied facilities with a maximum net output
of not greater than 5 megawatts, certain
expenditures paid or incurred by the tax-
payer for qualified interconnection prop-
erty. A taxpayer’s qualified investment
with respect to energy storage technology
for any taxable year is the basis of the
energy storage technology placed in ser-
vice by the taxpayer during such taxable
year.
Section 48E(h) provides a special
program for certain facilities placed in
service in connection with low-income
communities. These rules are discussed
in section 2.06 of this notice with the dis-
cussion of § 48(e). Section 48E(i) directs
the Secretary to issue guidance regarding
the implementation of § 48E not later than
January 1, 2025.
.06 Special programs for certain facil-
ities placed in service in connection with
low-income communities (§§ 48(e) and
48E(h)).
Section 13103 of the IRA amended
§ 48 to add new § 48(e), which estab-
lishes a special program for certain solar
and wind facilities placed in service in
connection with low-income commu-
nities, effective January 1, 2023. Sec-
tion 13702(a) of the IRA also enacted
§ 48E(h), which provides a similar spe-
cial program for certain facilities placed
in service in connection with low-income
communities in calendar years after 2024.
These provisions increase the amount of
the § 48 credit and § 48E credit for facil-
ities with a maximum net output of less
than 5 megawatts (as measured in alter-
nating current) by providing a 10 percent
increase in the energy percentage (in the
case of § 48(e)) or the applicable percent-
age (in the case of § 48E(h)), used to cal-
culate the credit amount, for certain facil-
ities located in low-income communities
(as defined in § 45D(e) of the Code) or
on Indian land (as defined in § 2601(2) of
the Energy Policy Act of 1992 (25 U.S.C.
3501(2))), or a 20 percent increase in the
energy percentage or applicable percent-
age for certain facilities that are part of
certain low-income residential building
projects or low-income economic benefit
projects. These increased credit amounts
are limited by the facility’s environmental
justice solar and wind capacity limitation
allocation (§ 48(e)) or its environmen-
tal justice capacity limitation allocation
(§ 48E(h)).
Section 48(e)(4) directs the Secre-
tary to establish a program to allocate
amounts of environmental justice solar
and wind capacity limitation to qualified
solar and wind facilities within 180 days
of enactment of the IRA. The total amount
of environmental justice solar and wind
capacity allocation available during any
calendar year is limited to 1.8 gigawatts
of direct current capacity for each of the
years 2023 and 2024. If the 1.8-gigawatt
capacity limitation for any calendar year
exceeds the aggregate amount allocated
for such year, the excess is carried forward
to the next year, but not beyond a calendar
year after 2024. After that, the excess from
2024 may be carried forward and applied
to the capacity limitation for 2025 under
§ 48E(h).
Section 48E(h)(4)(A) directs the Sec-
retary to establish a program to allocate
amounts of environmental justice capac-
ity limitation to applicable facilities not
later than January 1, 2025. The total
amount of environmental justice capacity
limitation available during any calendar
year is limited to 1.8 gigawatts of direct
current capacity for each calendar year
during the period beginning on January 1,
2025, and ending on December 31 of the
Applicable Year (as defined in § 45Y(d)
(3)), and zero thereafter. If the 1.8-giga-
watt capacity limitation for any calendar
year exceeds the aggregate amount allo-
cated for such year, the excess increases
the limitation for the next year. However,
no amount may be carried forward to any
calendar year after the third calendar year
following the Applicable Year. To be eli-
gible for the credit increase, the facility
must be placed in service within 4 years
after the date of the allocation of envi-
ronmental justice capacity limitation to
the facility.
SECTION 3. REQUEST FOR
COMMENTS
The Treasury Department and the
IRS request comments on any questions
arising from the IRA amendments to
§§ 45 and 48 and the IRA’s enactment of
§§ 45U, 45Y, and 48E. Commenters are
encouraged to specify the issues on which
guidance is needed most quickly as well
as the most important issues on which
guidance is needed. In addition to general
comments, the Treasury Department and
the IRS request comments that address the
following specific issues:
.01 IRA Changes to the Renewable
Electricity Production Credit (§ 45)
(1) Section 45(e)(13) provides that
electricity produced by a taxpayer will
be treated as sold by such taxpayer to an
unrelated person during the taxable year
if (A) such electricity is used during such
taxable year by the taxpayer or a person
related to the taxpayer at a qualified clean
hydrogen production facility (as defined
in § 45V(c)(3)) to produce qualified clean
hydrogen (as defined in § 45V(c)(2)), and
(B) such use and production is verified (in
such form or manner as the Secretary may
prescribe) by an unrelated third party.
(a) What existing industry standards, if
any, should the Treasury Department and
the IRS consider in establishing guide-
lines for how an unrelated third party will
verify that electricity produced by a facil-
ity for which the taxpayer is claiming the
§ 45 credit has been used to produce qual-
ified clean hydrogen?
(b) The term “unrelated person” is used
in § 45 (as well as other provisions dis-
cussed in this notice that were added or
amended by the IRA). Is guidance needed
to clarify the meaning of the term “unre-
lated person”? If so, how should that term
be clarified?
(2) Sections 45(b)(3), 48(a)(4), 45Y(g)
(8), 48E(d)(2) and several other sections in
the IRA include a reduction in the respec-
tive credit for tax-exempt bond financing.
The reduction is calculated in accordance
with § 45(b)(3) (or rules similar to the rule
under § 45(b)(3)). What additional guid-
ance would be helpful in determining how
to calculate the reduction?
(3) Section 45(c)(10)(A)(v), as
amended by the IRA, provides a modi-
fied definition of marine and hydrokinetic
energy by adding pressurized water used
in a pipeline (or similar man-made con-
veyance) that is operated for the distribu-
tion of water for agricultural, municipal,
or industrial consumption and not pri-
marily for the generation of electricity. Is
guidance needed to define these qualified
facilities? If so, how should these quali-
fied facilities be defined?

October 24, 2022 324 Bulletin No. 2022–43
(4) Please provide comments on any
other topics relating to the § 45 credit that
may require guidance.
.02 The Energy Investment Credit
(§ 48)
(1) IRA Changes to the Energy Invest-
ment Credit (§ 48)
(a) The IRA expanded the definition of
energy property to include electrochro-
mic glass, energy storage technology,
qualified biogas property, and microgrid
controllers.
(i) What should the Treasury Depart-
ment and the IRS consider in determining
what types of technologies are included
in the definitions of these new types of
energy property?
(ii) What should the Treasury Depart-
ment and the IRS consider in determining
what components of those technologies
are included in energy property?
(b) Section 48(a)(8) provides that for
certain energy property amounts paid or
incurred for qualified interconnection
property may be included in basis.
(i) For interconnection property, what
types of additions, modifications, or
upgrades to the transmission or distribu-
tion system are required for the purpose of
accommodating interconnection?
(ii) For interconnection property, what
type of documentation, in addition to
interconnection agreements and cost cer-
tification reports, is readily available for
a taxpayer to demonstrate that they have
paid or incurred interconnection costs?
(iii) For interconnection property, is
guidance needed to define energy prop-
erty that has a maximum net output of not
greater than 5 megawatts (as measured in
alternating current)?
(c) Please provide comments on any
other topics relating to the § 48 credit that
may require guidance.
(2) Additional Issues Regarding the
Energy Investment Credit (§ 48)
(a) Is guidance needed to determine
whether an investment credit facility that
elects to claim the § 48 investment tax
credit in lieu of the § 45 production tax
credit is subject to all of the requirements
of § 45, including the requirement that
electricity generated by the investment
credit facility be sold to an unrelated per-
son? If so, what factors should the Trea-
sury Department and the IRS consider
regarding such guidance?
(b) Is clarification needed on the appli-
cability of the 80/20 rule used to determine
whether retrofitted or repowered projects
may qualify as new energy property? If so,
how should this be clarified?
(c) Section 48(a)(3)(A)(i) provides
that energy property includes “equip-
ment which uses solar energy to generate
electricity, to heat or cool (or provide hot
water for use in) a structure.” Is guidance
needed to clarify the meaning of the term
“structure”? If so, how should this term be
clarified?
(d) Please provide comments on any
other topics relating to the § 48 credit that
may require guidance.
.03 IRA Addition of the Zero-Emission
Nuclear Power Production Credit (§ 45U)
(1) Section 45U(a)(2) reduces the
amount of the § 45U credit by a “reduc-
tion amount” that is calculated, in part,
based on the gross receipts from any elec-
tricity produced by the facility. Section
45U(b)(2)(B) provides that gross receipts
generally include any amount received
by a qualified facility that are from a
zero-emission credit program, unless an
exclusion applies. Is guidance needed to
clarify the meaning of the term “gross
receipts,” especially as it applies to tax-
payers receiving revenue through cost-
of-service regulation or regulated con-
tracts and who do not sell electricity in a
manner attributable to individual nuclear
reactors such as through sales into orga-
nized electricity markets or via power pur-
chase agreements to third parties? If so,
how should “gross receipts” be clarified?
Should it be defined by cross reference to
§ 448(c) of the Code?
(2) Section 45U(b)(2)(B)(ii) defines
the term “zero-emission credit program.”
What should the Treasury Department
and the IRS consider in determining
whether a payment is as a result of a gov-
ernment program for the zero-emission,
zero-carbon, or air quality attributes of
any portion of the electricity produced by
the facility?
(3) Section 45U(b)(2)(B)(iii) excludes
from gross receipts, for purposes of the
reduction amount calculation, any amount
received by the taxpayer from a zero-emis-
sion credit program if the full amount
of the § 45U credit (determined with-
out regard to § 45U(b)(2)(B)) is used to
reduce payments from such zero-emission
credit program. What should the Treasury
Department and the IRS consider when
determining whether the full amount of
the § 45U credit (calculated pursuant
to § 45U(a)) is used to reduce payments
from a zero-emission credit program?
(4) Please provide comments on any
other topics relating to the § 45U credit
that may require guidance.
.04 IRA Addition of the Clean Electric-
ity Production Credit (§ 45Y)
(1) What existing industry standards, if
any, should the Treasury Department and
the IRS consider in determining a taxpay-
er’s eligibility for the § 45Y credit?
(2) Section 45Y(b)(2)(C)(i) requires
the Secretary to annually publish a table
that sets forth the greenhouse gas emis-
sions rates for types or categories of facil-
ities. What should the Treasury Depart-
ment and the IRS consider in publishing
this table, including considerations around
scope and the factors?
(3) Section 45Y(a)(1) generally pro-
vides a credit for electricity produced
by the taxpayer at a qualified facility
and either (1) sold by the taxpayer to an
unrelated person during the taxable year,
or (2) in the case of a qualified facil-
ity which is “equipped with a metering
device which is owned and operated by
an unrelated person, sold, consumed, or
stored by the taxpayer during the taxable
year.” Is guidance needed to clarify when
a facility is “equipped with a metering
device which is owned and operated by
an unrelated person” or when electricity
produced at such a facility is “sold, con-
sumed, or stored by the taxpayer during
the taxable year”?
(4) Section 45Y(b)(2)(C)(ii) provides
that, in the case of any facility for which
an emissions rate has not been established
by the Secretary, a taxpayer that owns
such facility may file a petition with the
Secretary for a determination of the emis-
sions rate with respect to such facility.
What procedures should be provided by
the Treasury Department and the IRS for
taxpayers to file such a petition? What
should the Secretary consider when mak-
ing such determinations?
(5) Please provide comments on any
other topics relating to the § 45Y credit
that may require guidance.
.05 IRA Addition of the Clean Electric-
ity Investment Credit (§ 48E)

Bulletin No. 2022–43 325 October 24, 2022
(1) What industry mechanisms cur-
rently exist for a taxpayer to demonstrate
eligibility for the credit?
(2) Please provide comments on any
other topics relating to the § 45E credit
that may require guidance.
.06 IRA Addition of Special Programs
for Certain Facilities Placed in Service in
Connection with Low-income Communi-
ties (§§ 48(e) and 48E(h))
(1) Sections 48(e)(4)(A) and 48E(h)
(4)(A) require the Secretary to establish
a program to allocate amounts of envi-
ronmental justice capacity limitation to
applicable facilities. In establishing such
program, the Secretary must provide pro-
cedures to allow for an efficient allocation
process.
(a) What should the Treasury Depart-
ment and the IRS consider in providing
guidance regarding the application pro-
cess for taxpayers seeking an allocation
of the environmental justice capacity
limitation?
(b) How can the application procedures
and application process be made accessi-
ble to taxpayers?
(c) How can the process incorporate
community input, engagement, and bene-
fit for projects seeking an allocation of the
environmental justice capacity limitation?
(2) What stage of completion, if any,
should be required of the taxpayer at the
time of application for or allocation of
amounts of environmental justice capac-
ity limitation (since the taxpayer will have
four years to place the facility in service)?
(3) What methods currently exist or
need to be designed for a taxpayer to cer-
tify that a project is being built in a low-in-
come community, on Indian land, or as
part of a low-income residential building
project or a qualified low-income eco-
nomic benefit project?
(4) What mechanisms exist for a tax-
payer to demonstrate that the financial
benefits of the electricity produced by an
applicable facility are allocated equitably
among the occupants of a low-income
residential building project and do not
impact the occupants’ eligibility for their
housing? Similarly, what mechanisms
exist for a taxpayer to demonstrate that at
least 50 percent of the financial benefits
of electricity produced by an applicable
facility which is part of a low-income
economic benefit project are provided
to households within certain income
thresholds?
(5) Is guidance needed to clarify the
meaning of the term “financial benefit”?
(6) What is a financial benefit of the
electricity produced by an applicable
facility other than electricity acquired
at a below-market rate for occupants of
low-income residential building proj-
ects and low-income economic benefit
projects?
(7) What should the Treasury Depart-
ment and the IRS consider in providing
guidance regarding the recapture of the
benefits of the credit increase allowed
under §§ 48(e) and 48E(h) when property
ceases to be property eligible for such
credit increase? How should the one-time
restoration of eligibility be documented
before recapture?
(8) Please provide comments on any
other topics relating to the environmental
justice capacity limitation under §§ 48(e)
and 48E(h) that may require guidance.
SECTION 4: SUBMISSION OF
COMMENTS
.01 Written comments should be sub-
mitted by Friday, November 4, 2022. Con-
sideration will be given, however, to any
written comment submitted after Friday,
November 4, 2022, if such consideration
will not delay the issuance of guidance.
The subject line for the comments should
include a reference to Notice 2022-49.
Comments may be submitted in one of
two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2022-0049 in the search
field on the regulations.gov homepage to
find this notice and submit comments).
(2) Alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2022-49), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
.02 All commenters are strongly
encouraged to submit comments electron-
ically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically, or
on paper, to its public docket on www.reg-
ulations.gov.
SECTION 5. 60-DAY RULE
NOT EFFECTUATED FOR
THE PREVAILING WAGE AND
APPRENTICESHIP REQUIREMENT
For purposes of §§ 30C, 45, 45L,
45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E,
and 179D, the publication of this notice
requesting comments is not the publica-
tion of guidance with respect to the pre-
vailing wage and apprenticeship require-
ments, and it is not relevant in determining
whether the prevailing wage and appren-
ticeship requirements are satisfied under
such sections. The Treasury Department
and the IRS will explicitly identify when
they have published guidance with respect
to the prevailing wage and apprenticeship
requirements that is relevant for determin-
ing whether such requirements have been
satisfied for purposes of §§ 30C, 45, 45L,
45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E,
and 179D.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further informa-
tion regarding this notice, call the energy
security guidance contact number at (202)
317-5254 (not a toll-free number).
Request for Comments
on Elective Payment of
Applicable Credits and
Transfer of Certain Credits
Notice 2022-50
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Revenue
Service (IRS) anticipate issuing guidance
to implement the elective payment provi-
sions under § 6417 and the elective credit
transfer provisions under § 6418 of the

October 24, 2022 326 Bulletin No. 2022–43
Internal Revenue Code (Code), as added
by § 13801 of Public Law 117-169, 136
Stat. 1818 (August 16, 2022), commonly
known as the Inflation Reduction Act of
2022 (IRA). This notice requests general
comments on questions arising under
new §§ 6417 and 6418, as well as specific
comments on questions listed in section
3 of this notice. Comments received in
response to this notice will help to inform
development of future guidance imple-
menting §§ 6417 and 6418.
SECTION 2. BACKGROUND
.01 Elective Payment of Applicable
Credits (§ 6417).
Section 6417 of the Code was enacted
by § 13801(a) of the IRA, to allow certain
taxpayers to elect to treat certain credits
as a direct payment rather than a credit
against their federal income tax liabilities.
Section 6417(a) provides that, in the
case of an applicable entity making an
election with respect to any applicable
credit determined with respect to such
entity, such entity is treated as making a
payment against the tax imposed by subti-
tle A (that is, federal income taxes) for the
taxable year with respect to which such
credit was determined equal to the amount
of such credit. Any election under § 6417
can only be made at such time and in such
manner as the Secretary of the Treasury or
her delegate (Secretary) may provide.
Section 6417(b) defines the term
“applicable credit” to mean each of the
following:
(1) so much of the credit for alterna-
tive fuel vehicle refueling property
allowed under § 30C that, pursuant
to § 30(d)(1), is treated as a credit
listed in § 38(b);
(2) so much of the renewable electricity
production credit determined under
§ 45(a) as is attributable to qualified
facilities that are originally placed
in service after December 31, 2022;
(3) so much of the credit for carbon
oxide sequestration determined
under § 45Q(a) as is attributable
to carbon capture equipment that
is originally placed in service after
December 31, 2022;
(4) the zero-emission nuclear power
production credit determined under
§ 45U(a);
(5) so much of the credit for produc-
tion of clean hydrogen determined
under § 45V(a) as is attributable to
qualified clean hydrogen production
facilities that are originally placed
in service after December 31, 2012;
(6) in the case of a tax-exempt entity
described in § 168(h)(2)(A)(i), (ii),
or (iv), the credit for qualified com-
mercial vehicles determined under
§ 45W by reason of § 45W(d)(3);
(7) the credit for advanced manufactur-
ing production under § 45X(a);
(8) the clean electricity production
credit determined under § 45Y(a);
(9) the clean fuel production credit
determined under § 45Z(a);
(10) the energy credit determined under
§ 48;
(11) the qualifying advanced energy
project credit determined under
§ 48C; and
(12) the clean electricity investment
credit determined under § 48E.
Section 6417(c)(1) provides that, in the
case of any applicable credit determined
with respect to any facility or property
held directly by a partnership or S corpora-
tion, any election under § 6417(a) is to be
made by such partnership or S corporation
and must be made in such manner as the
Secretary may provide. If such partnership
or S corporation makes an election under
§ 6417(a) with respect to any applicable
credit, (A) the Secretary must make a pay-
ment to such partnership or S corporation
equal to the amount of such credit, (B)
§ 6417(e) is applied with respect to such
credit before determining any partner’s
distributive share, or shareholder’s pro rata
share, of such credit, (C) any amount with
respect to which the election in § 6417(a)
is made is treated as tax exempt income
for purposes of §§ 705 and 1366, and (D)
a partner’s distributive share of such tax
exempt income is based on such partner’s
distributive share of the otherwise applica-
ble credit for each taxable year.
Section 6417(c)(2) provides that, in
the case of any facility or property held
directly by a partnership or S corporation,
no election by any partner or shareholder
is allowed under § 6417(a) with respect
to any applicable credit determined with
respect to such facility or property.
Section 6417(d)(1)(A) defines the
term “applicable entity” to mean (i) any
organization exempt from tax imposed
by subtitle A; (ii) any State or political
subdivision thereof; (iii) the Tennessee
Valley Authority; (iv) an Indian tribal
government (as defined in § 30D(g)
(9)); (v) any Alaska Native Corporation
(as defined in § 3 of the Alaska Native
Claims Settlement Act (43 U.S.C.
1602(m)); or (vi) any corporation oper-
ating on a cooperative basis that is
engaged in furnishing electric energy to
persons in rural areas.
Pursuant to § 6417(d)(1)(B), if a
taxpayer, other than an entity listed in
§ 6417(d)(1)(A), makes an election
under § 6417(d)(1)(B) with respect to
any taxable year in which such taxpayer
has placed in service a qualified clean
hydrogen production facility (as defined
in § 45V(c)(3)), such taxpayer is treated
as an applicable entity for purposes of
§ 6417 for the taxable year, but only with
respect to the credit under § 45V to the
extent described in § 6417(b)(5).
Pursuant to § 6417(d)(1)(C), if a
taxpayer, other than an entity listed in
§ 6417(d)(1)(A), makes an election under
§ 6417(d)(1)(C) with respect to any tax-
able year in which such taxpayer has, after
December 31, 2022, placed in service
carbon capture equipment at a qualified
facility (as defined in § 45Q(d)), such tax-
payer is treated as an applicable entity for
purposes of § 6417 for such taxable year,
but only with respect to the credit under
§ 45Q to the extent described in § 6417(b)
(3).
Section 6417(d)(1)(D)(i) provides that,
if a taxpayer other than an entity described
in § 6417(d)(1)(A) makes an election
under § 6417(d)(1)(D) with respect to any
taxable year in which such taxpayer has,
after December 31, 2022, produced eligi-
ble components (as defined in § 45X(c)
(1)), such taxpayer is treated as an applica-
ble entity for purposes of § 6417 for such
taxable year, but only with respect to the
credit under § 45X to the extent described
in § 6417(b)(7).
Pursuant to § 6417(d)(1)(D)(ii)(I),
except as provided in § 6417(d)(1)(D)(ii)
(II), if a taxpayer makes an election under
§ 6417(d)(1)(D) with respect to any tax-
able year, such taxpayer is treated as hav-
ing made such election for each of the 4
succeeding taxable years ending before
January 1, 2033.

Bulletin No. 2022–43 327 October 24, 2022
Pursuant to § 6417(d)(1)(D)(ii)(II), a
taxpayer may elect to revoke the applica-
tion of the election made under § 6417(d)
(1)(D) to any taxable year described in
§ 6417(d)(1)(D)(ii)(I). Any such elec-
tion, if made, applies to the applicable
year specified in such election and each
subsequent taxable year within the period
described in § 6417(d)(1)(D)(ii)(I). Any
election under § 6417(d)(1)(D) cannot be
revoked once made.
Section 6417(d)(1)(D)(iii) provides
that, for any taxable year described in
§ 6417(d)(1)(D)(ii)(I), no election may
be made by the taxpayer under § 6418(a)
for such taxable year with respect to eligi-
ble components for purposes of the credit
described in § 6417(b)(7) (that is, the
credit for advanced manufacturing pro-
duction under § 45X(a)).
Pursuant to § 6417(d)(1)(E)(i), an elec-
tion made under § 6417(d)(1)(B), (C), or
(D) must be made at such time and in such
manner as the Secretary may provide.
Pursuant to § 6417(d)(1)(E)(ii), no
election may be made under § 6417(d)(1)
(B), (C), or (D) with respect to any tax-
able year beginning after December 31,
2032.
Section 6417(d)(2) provides that, in the
case of any applicable entity that makes
the election described in § 6417(a), any
applicable credit is determined (A) with-
out regard to § 50(b)(3) and (4)(A)(i), and
(B) by treating any property with respect
to which such credit is determined as used
in a trade or business of the applicable
entity.
Section 6417(d)(3)(A)(i) provides
that, any election under § 6417(a) can-
not be made later than (I) in the case of
any government, or political subdivi-
sion, described in § 6417(d)(1) and for
which no return is required under § 6011
or § 6033(a), such date as is determined
appropriate by the Secretary, or (II) in any
other case, the due date (including exten-
sions of time) for the tax return for the tax-
able year for which the election is made,
but in no event earlier than 180 days
after the date of the enactment of § 6417
by § 13801(a) of the IRA (that is, in no
event earlier than 180 days after August
16, 2022).
Section 6417(d)(3)(A)(ii) provides
that, any election under § 6417(a) applies
(except as otherwise provided in § 6417(d)
(3)(A)) with respect to any credit for the
taxable year for which the election is
made and, once made, is irrevocable.
Section 6417(d)(3)(B) provides that,
in the case of the credit described in
§ 6417(b)(2) (that is, the renewable
electricity production credit under
§ 45(a)), any election under § 6417(a):
(i) applies separately with respect to
each qualified facility, (ii) must be
made for the taxable year in which such
qualified facility is originally placed in
service, and (iii) applies to such taxable
year and to any subsequent taxable year
that is within the period described in
§ 45(a)(2)(A)(ii) with respect to such
qualified facility.
Section 6417(d)(3)(C)(i) provides
that, in the case of the credit described in
§ 6417(b)(3) (that is, the credit for carbon
oxide sequestration under § 45Q(a)), any
election under § 6417(a): (i) applies sep-
arately with respect to the carbon capture
equipment originally placed in service by
the applicable entity during a taxable year,
and (ii)(I) in the case of a taxpayer who
makes an election described in § 6417(d)
(1)(C), applies to the taxable year in
which such equipment is placed in service
and the 4 subsequent taxable years with
respect to such equipment that end before
January 1, 2033, and (II) in any other case,
applies to such taxable year and to any
subsequent taxable year that is within the
period described in § 45Q(a)(3)(A) or (4)
(A) with respect to such equipment.
Section 6417(d)(3)(C)(ii) provides
that, for any taxable year described in
§ 6417(d)(3)(C)(i)(II)(aa) with respect
to carbon capture equipment, no elec-
tion may be made by the taxpayer under
§ 6418(a) for such taxable year with
respect to such equipment for purposes of
the credit described in § 6417(b)(3).
Section 6417(d)(3)(C)(iii) provides
that, in the case of a taxpayer who makes
an election described in § 6417(1)(C)
with respect to carbon capture equipment,
such taxpayer may, at any time during the
5-year period described in § 6417(d)(3)
(C)(i)(II)(aa), revoke the application of
such election with respect to such equip-
ment for any subsequent taxable years
during such period. Any such election, if
made, applies to the applicable year spec-
ified in such election and each subsequent
taxable year within the 5-year period
described in § 6417(d)(3)(C)(i)(II)(aa).
Any election under § 6417(d)(3)(C)(iii)
may not be subsequently revoked.
Section 6417(d)(3)(D)(i) provides
that, in the case of the credit described in
§ 6417(b)(5) (that is, the credit for produc-
tion of clean hydrogen under § 45V(a)),
any election under § 6417(a): (i) applies
separately with respect to each quali-
fied clean hydrogen production facility;
(ii) must be made for the taxable year in
which such facility is placed in service (or
within the 1-year period subsequent to the
date of enactment of § 6417 in the case of
facilities placed in service before Decem-
ber 31, 2022), and (iii)(I) in the case of a
taxpayer who makes an election described
in § 6417(d)(1)(B), applies to such tax-
able year and the 4 subsequent taxable
years with respect to such facility that end
before January 1, 2033, and (II) in any
other case, applies to the taxable year and
all subsequent taxable years with respect
to such facility.
Section 6417(d)(3)(D)(ii) provides
that, for any taxable year described in
§ 6417(d)(3)(C)(i)(III)(aa) with respect
to a qualified clean hydrogen production
facility, no election may be made by the
taxpayer under § 6418(a) for such taxable
year with respect to such facility for pur-
poses of the credit described in § 6417(b)
(5).
Section 6417(d)(3)(D)(iii) provides
that, in the case of a taxpayer who makes
an election described in § 6417(1)(B)
with respect to a qualified clean hydrogen
production facility, such taxpayer may,
at any time during the period described
in § 6417(d)(3)(D)(i)(III)(aa), revoke the
application of such election with respect
to such facility for any subsequent tax-
able years during such period. Any such
election, if made, applies to the applicable
year specified in such election and each
subsequent taxable year within the period
described in § 6417(d)(3)(D)(i)(II)(aa).
Any election under § 6417(d)(3)(D)(iii)
may not be revoked once made.
Section 6417(d)(3)(E) provides that,
in the case of the credit described in
§ 6417(b)(8) (that is, the clean electricity
production credit under § 45Y(a)), any
election under § 6417(a): (i) applies sepa-
rately with respect to each qualified facil-
ity, (ii) must be made for the taxable year
in which such facility is placed in service,

October 24, 2022 328 Bulletin No. 2022–43
and (iii) applies to such taxable year and
to any subsequent taxable year that is
within the period described in § 45Y(b)
(1)(B) with respect to such facility.
Section 6417(d)(4)(A) provides that,
in the case of any government, or politi-
cal subdivision described in § 6417(d)(1),
and for which no return is required under
§ 6011 or § 6033(a), the payment described
in § 6417(a) is treated as made on the later
of the date that a return would be due under
§ 6033(a) if such government or subdivi-
sion were described in § 6033 or the date
on which such government or subdivision
submits a claim for credit or refund. Any
claim for credit or refund must be made at
such time and in such manner as the Sec-
retary provides. Section 6417(d)(4)(B) pro-
vides that, in any other case, the payment
described in § 6417(a) is treated as made
on the later of the due date (determined
without regard to extensions) of the return
of tax for the taxable year or the date on
which such return is filed.
Section 6417(d)(5) provides that, as
a condition of, and prior to, any amount
being treated as a payment that is made by
an applicable entity under § 6417(a), the
Secretary may require such information or
registration as the Secretary deems neces-
sary for purposes of preventing duplica-
tion, fraud, improper payments, or exces-
sive payments under § 6417.
Section 6417(d)(6)(A) provides that, in
the case of any amount treated as a pay-
ment that is made by the applicable entity
under § 6417(a), or the amount of the pay-
ment made pursuant to § 6417(c), that the
Secretary determines constitutes an exces-
sive payment, the tax imposed on such
entity by chapter 1 (regardless of whether
such entity would otherwise be subject
to tax under such chapter) for the taxable
year in which such determination is made
must be increased by an amount equal to
the sum of (i) the amount of such exces-
sive payment, plus (ii) an amount equal to
20 percent of such excessive payment.
Pursuant to § 6417(d)(6)(B), § 6417(d)
(6)(A)(ii) (that is, the 20 percent of exces-
sive payment increase) does not apply
if the applicable entity demonstrates to
the satisfaction of the Secretary that the
excessive payment resulted from reason-
able cause.
Section 6417(d)(6)(C) defines the
term “excessive payment” to mean,
with respect to a facility or property for
which an election is made under § 6417
for any taxable year, an amount equal to
the excess of (i) the amount treated as a
payment that is made by the applicable
entity under § 6417(a), or the amount of
the payment made pursuant to § 6417(c),
with respect to such facility or property
for such taxable year, over (ii) the amount
of the credit that, without application of
§ 6417, would be otherwise allowable (as
determined pursuant to § 6417(d)(2) and
without regard to § 38(c)) with respect to
such facility or property for such taxable
year.
Section 6417(e) provides that, in the
case of an applicable entity making an
election under § 6417 with respect to an
applicable credit, such credit must be
reduced to zero and, for any other pur-
poses under this title, must be deemed to
have been allowed to such entity for such
taxable year.
Section 6417(g) states that, “[e]xcept
as otherwise provided in [§ 6417(c)(2)
(A)], rules similar to the rules of section
50 shall apply for purposes of [§ 6417].”
Section 13801(g) of the IRA provides
that § 6417 applies to taxable years begin-
ning after December 31, 2022.
.02 Transfer of Certain Credits
(§ 6418).
Section 6418 of the Code was enacted
by § 13801(b) of the IRA to permit eligi-
ble credits to be transferred from eligible
taxpayers to an unrelated taxpayer.
Section 6418(a) provides that, in the
case of an eligible taxpayer that elects
to transfer all (or any portion specified
in the election) of an eligible credit
determined with respect to such tax-
payer for any taxable year to another
taxpayer (transferee taxpayer) that is not
related (within the meaning of § 267(b)
or § 707(b)(1)) to the eligible taxpayer,
the transferee taxpayer specified in such
election (and not the eligible taxpayer)
is treated as the taxpayer for purposes
of the Code with respect to such credit
(or such portion thereof). Any election
under § 6418 must be made at such time
and in such manner as the Secretary may
provide.
Pursuant to § 6418(b), with respect to
any amount paid by a transferee taxpayer
to an eligible taxpayer as consideration
for a transfer described in § 6418(a), such
consideration (1) must be required to be
paid in cash, (2) is not includible in the
gross income of the eligible taxpayer, and
(3) with respect to the transferee taxpayer,
is not deductible under the Code.
Section 6418(c)(1) provides that, in
the case of any eligible credit determined
with respect to any facility or property
held directly by a partnership or S corpo-
ration, such partnership or S corporation
may make an election under § 6418(a)
with respect to such credit in such man-
ner as the Secretary may provide. If such
partnership or S corporation makes an
election under § 6418(a) with respect to
such credit, (A) any amount received as
consideration for a transfer described in
§ 6418(a) is treated as tax exempt income
for purposes of §§ 705 and 1366, and (B)
a partner’s distributive share of such tax
exempt income is based on such partner’s
distributive share of the otherwise eligible
credit for each taxable year.
Section 6418(c)(2) provides that, in
the case of any facility or property held
directly by a partnership or S corporation,
no election by any partner or shareholder
is allowed under § 6418(a) with respect to
any eligible credit determined with respect
to such facility or property.
Under § 6418(d), in the case of any
credit (or portion thereof) with respect to
which an election is made under § 6418(a),
such credit is taken into account in the first
taxable year of the transferee taxpayer
ending with, or after, the taxable year of
the eligible taxpayer with respect to which
the credit was determined.
Under § 6418(e)(1), any election under
§ 6418(a) must be made not later than the
due date (including extensions of time)
for the tax return for the taxable year for
which the credit is determined, but can-
not be made earlier than 180 days after
the date of the enactment of § 6418 by
§ 13801(a) of the IRA. Any election, once
made, is irrevocable.
Section 6418(e)(2) provides that no
election may be made under § 6418(a) by
a transferee taxpayer with respect to any
portion of an eligible credit that has been
previously transferred to such taxpayer
pursuant to § 6418.
Section 6418(f)(1)(A) defines the
term “eligible credit” to mean each of
the following: (i) so much of the credit
for alternative fuel vehicle refueling

Bulletin No. 2022–43 329 October 24, 2022
property allowed under § 30C that,
pursuant to § 30(d)(1), is treated as a
credit listed in § 38(b); (ii) the renew-
able electricity production credit deter-
mined under § 45(a); (iii) the carbon
oxide sequestration credit determined
under § 45Q(a); (iv) the zero-emis-
sion nuclear power production credit
determined under § 45U(a); (v) the
clean hydrogen production credit
determined under § 45V(a); (vi) the
advanced manufacturing production
credit determined under § 45X(a); (vii)
the clean electricity production credit
determined under § 45Y(a); (viii) the
clean fuel production credit determined
under § 45Z(a); (ix) the energy credit
determined under § 48; (x) the quali-
fying advanced energy project credit
determined under § 48C; and (xi) the
clean electricity investment credit
determined under § 48E.
Under § 6418(f)(1)(B), in the case of
any eligible credit described in § 6418(f)
(1)(A)(ii), (iii), (v), or (vii), an election
under § 6418(a) must be made (i) sep-
arately with respect to each facility for
which such credit is determined, and (ii)
for each taxable year during the 10-year
period beginning on the date such facility
was originally placed in service (or, in the
case of the credit described in § 6418(f)(1)
(A)(iii), for each year during the 12-year
period beginning on the date the carbon
capture equipment was originally placed
in service at such facility).
Pursuant to § 6418(f)(1)(C), the term
“eligible credit” does not include any
business credit carryforward or carryback
determined under § 39.
Section 6418(f)(2) defines the term
“eligible taxpayer” to mean any taxpayer
that is not described in § 6417(d)(1)(A).
Section 6418(g)(1) provides that, as a
condition of, and prior to, any transfer of
any portion of an eligible credit pursuant
to § 6418(a), the Secretary may require
such information (including, in such form
or manner as is determined appropriate by
the Secretary, such information returns) or
registration as the Secretary deems neces-
sary for purposes of preventing duplica-
tion, fraud, improper payments, or exces-
sive payments under § 6418.
Section 6418(g)(2)(A) provides that, in
the case of any portion of an eligible credit
that is transferred to a transferee taxpayer
pursuant to § 6418(a) that the Secretary
determines constitutes an excessive credit
transfer, the tax imposed on the trans-
feree taxpayer by chapter 1 (regardless of
whether such entity would otherwise be
subject to tax under such chapter) for the
taxable year in which such determination
is made is increased by an amount equal
to the sum of (i) the amount of such exces-
sive credit transfer, plus (ii) an amount
equal to 20 percent of the excessive credit
transfer.
Pursuant to § 6418(g)(2)(B), § 6418(g)
(2)(A)(ii) (that is, the 20 percent of exces-
sive credit transfer increase) does not
apply if the transferee taxpayer demon-
strates to the satisfaction of the Secretary
that the excessive credit transfer resulted
from reasonable cause.
Section 6418(g)(2)(C) defines the
term “excessive credit transfer” to mean,
with respect to a facility or property
for which an election is made under
§ 6418(a) for any taxable year, an amount
equal to the excess of (i) the amount of
the eligible credit claimed by the trans-
feree taxpayer with respect to such facil-
ity or property for such taxable year,
over (ii) the amount of such credit that,
without application of § 6418, would be
otherwise allowable under this title with
respect to such facility or property for
such taxable year.
Section 6418(g)(3) provides that, in
the case of any election under § 6418(a)
with respect to any portion of an eligible
credit described in § 6418(f)(1)(A)(ix)
through (xi), (A) § 50(c) will apply to the
applicable investment credit property (as
defined in § 50(a)(5)) as if such eligible
credit was allowed to the eligible tax-
payer, and (B) if, during any taxable year,
the applicable investment credit property
(as defined in § 50(a)(5)) is disposed of,
or otherwise ceases to be investment
credit property with respect to the eli-
gible taxpayer, before the close of the
recapture period described in § 50(a)(1),
(i) such eligible taxpayer must provide
notice of such occurrence to the trans-
feree taxpayer (in such form and manner
as the Secretary prescribes), and (ii) the
transferee taxpayer must provide notice
of the recapture amount (as defined in
§ 50(c)(2)), if any, to the eligible tax-
payer (in such form and manner as the
Secretary prescribes).
Pursuant to § 6418(g)(4), § 6418 does
not apply with respect to any amount of an
eligible credit that is allowed pursuant to
rules similar to the rules of § 46(c)(4) and
(d) (as in effect on the day before the date
of the enactment of the Revenue Recon-
ciliation Act of 1990).
Section 13801(g) of the IRA provides
that § 6418 applies to taxable years begin-
ning after December 31, 2022.
SECTION 3. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments on any questions aris-
ing from §§ 6417 and 6418, as added
by the IRA, that should be addressed in
guidance. Commenters are encouraged to
specify the issues on which guidance is
needed most quickly as well as the most
important issues on which guidance is
needed. In addition to general comments,
the Treasury Department and the IRS
request comments that address the follow-
ing specific questions:
.01 Elective Payment of Applicable
Credits (§ 6417).
(1) What, if any, guidance is needed
to clarify the meaning of certain terms
in § 6417, such as applicable credit and
excessive payment? Is there any term not
defined in § 6417 that should be defined
in future guidance? If so, what is the term
and how should it be defined?
(2) With respect to the Secretary’s dis-
cretion to determine the time and manner
for making an election under § 6417(a):
(a) What, if any, issues could arise when
an applicable entity described in
§ 6417(d)(1)(A) makes an election
under § 6417(a) and what, if any,
guidance is needed with respect to
such issues?
(b) What factors should the Treasury
Department and the IRS consider in
determining the time and manner for
making the election?
(3) In determining the amount treated
as making a payment against tax under
§ 6417(a), is guidance needed to clarify
the application of any other Code provi-
sion? If so, what is the Code provision and
what clarification is needed?
(4) With respect to an election under
§ 6417(a) made by a partnership or S cor-
poration pursuant to § 6417(c)(1) for any

October 24, 2022 330 Bulletin No. 2022–43
applicable credit determined with respect
to any facility or property held directly by
a partnership or S corporation:
(a) What, if any, issues could arise when
a partnership or S corporation makes
an election under § 6417(a) and
what, if any, guidance is needed with
respect to such issues?
(b) Is guidance needed to clarify the
treatment of a payment made pursu-
ant to § 6417(c)(1)(A) to the electing
partnership or S corporation? If so,
what clarification is needed?
(5) With respect to the definition of the
term “applicable entity” in § 6417(d)(1):
(a) What, if any, guidance is needed to
clarify which entities are applicable
entities for purposes of § 6417(d)(1)
(A), and which taxpayers may elect to
be treated as applicable entities under
§ 6417(d)(1)(B), (C), or (D) for pur-
poses of § 6417?
(b) What types of structures are antici-
pated to be used by applicable enti-
ties, and taxpayers who have elected
to be treated as applicable entities
under § 6417(d)(1)(B), (C), or (D),
when seeking to apply § 6417(a)?
(c) Is guidance needed to clarify the
application of any Code provision
other than § 6417 to an applicable
entity, or a taxpayer electing to be
treated as an applicable entity, that
makes an election under § 6417(a)?
If so, what is the Code provision and
what clarification is needed?
(d) Are there specific issues that the Trea-
sury Department and the IRS should
address for applicable entities that are
subject to non-tax legal requirements
or other rules that may affect such
entities’ ability to make an election
under § 6417(a)?
(6) With respect to the elections under
§ 6417(d)(1)(B), (C), or (D):
(a) What, if any, issues could arise when
an entity makes an election under
§ 6417(d)(1)(B), (C), or (D) and
what, if any, guidance is needed with
respect to such issues?
(b) What factors should the Treasury
Department and the IRS consider in
determining the time and manner for
making the election?
(c) What, if any, issues could arise when
an entity revokes an election made
under § 6417(d)(1)(B), (C), or (D)
and what, if any, guidance is needed
with respect to such issues?
(d) Is guidance needed to clarify the
prohibition of a transfer described
in § 6418(a) by a taxpayer who has
made an election under § 6417(d)(1)
(B), (C), or (D)? If so, what clarifica-
tion is needed?
(7) Section 6417(d)(3)(A)(i)(I) pro-
vides that, in the case of any govern-
ment, or political subdivision, described
in § 6417(d)(1), and for which no return
is required under § 6011 or 6033(a), any
election made by these applicable entities
under § 6417(a) must be made no later
than such date as is determined appropri-
ate by the Secretary. What factors should
the Treasury Department and the IRS con-
sider when providing guidance on the due
date of the election for these applicable
entities?
(8) Section 6417(d)(4)(A) provides
that, in the case of any government,
or political subdivision described in
§ 6417(d)(1), and for which no return is
required under § 6011 or 6033(a), the pay-
ment described in § 6417(a) is treated as
made on the later of the date that a return
would be due under § 6033(a) if such gov-
ernment or subdivision were described in
§ 6033 or the date on which such govern-
ment or subdivision submits a claim for
credit or refund at such time and in such
manner as the Secretary provides. What
factors should the Treasury Department
and the IRS consider when providing
guidance to clarify the timing and manner
of a payment made by these governments
or political subdivisions?
(9) For purposes of preventing duplica-
tion, fraud, improper payments, or exces-
sive payments under § 6417, what informa-
tion, including any documentation created
in or out of the ordinary course of business,
or registration, should the IRS require as
a condition of, and prior to, any amount
being treated as a payment made by an
applicable entity under § 6417(a)? What
factors should the Treasury Department
and the IRS consider as to when documen-
tation or registration should be required?
Should the IRS require the same docu-
mentation or registration as a condition of,
and prior to, any amount being treated as a
payment made by both an applicable entity
as well as a taxpayer who is treated as an
applicable entity after making an election
under § 6417(d)(1)(B), (C), or (D)? Should
the IRS require the same documentation or
registration for all applicable credits? If not,
how should the information or registration
differ between applicable credits? What
other processes could be implemented
by the IRS to prevent duplication, fraud,
improper payments, or excessive payments
under § 6417?
(10) What, if any, guidance is needed
to clarify the application of the exces-
sive payment provisions of § 6417? What
factors should be taken into account in
determining whether reasonable cause
exists for purposes of § 6417(d)(6)(B)?
What, if any, guidance is needed to calcu-
late the excessive payment amount under
§ 6417(d)(6)(C)?
(11) For purposes of § 6417(g), what,
if any, guidance is needed to clarify the
application of § 50 for credit recapture
and basis adjustments to investment credit
property?
(12) The advanced manufacturing
investment credit under § 48D also con-
tains an elective payment provision under
§ 48D(d). The Treasury Department and
the IRS seek comments on whether the
elective payment provisions of § 6417
should operate similarly or differently
than the elective payment provision under
§ 48D.
(13) Please provide comments on any
other topics that may require guidance.
.02 Transfer of Certain Credits
(§ 6418).
(1) What, if any, guidance is needed
to clarify the meaning of certain terms in
§ 6418, such as eligible credit, eligible
taxpayer, and excessive credit transfer?
Is there any term not defined in § 6418
that should be defined in guidance? If
so, what is the term and how should it
be defined?
(2) Section 6418(c)(1) provides that, in
the case of any eligible credit determined
with respect to any facility or property
held directly by a partnership or S corpo-
ration, the Secretary determines the man-
ner in which such partnership or S corpo-
ration makes an election under § 6418(a)
with respect to such credit.
(a) What, if any, issues could arise when
a partnership or S corporation makes
an election under § 6418(a) and
what, if any, guidance is needed with
respect to such issues?

Bulletin No. 2022–43 331 October 24, 2022
(b) What factors should the Treasury
Department and the IRS consider in
determining the time and manner for
making the election?
(3) Section 6418(c)(2) provides that,
in the case of any facility or property held
directly by a partnership or S corporation,
no election by any partner or shareholder
is allowed under § 6418(a) with respect to
any eligible credit determined with respect
to such facility or property. If the election
is made, what issues should be considered
regarding the transfer of any portion of an
eligible credit and what, if any, guidance
is needed with respect to such issues? Fur-
ther, what, if any, guidance is needed on
allocating any amount received as consid-
eration for transferring any portion of an
eligible credit?
(4) What, if any, guidance is needed
with respect to parameters or limitations
on a transferee taxpayer’s eligibility to
claim the credit?
(5) For purposes of § 6418(d), what, if
any, guidance is required to determine the
proper taxable year in which to claim any
credit that was transferred pursuant to an
election made under § 6418(a)?
(6) In determining the amount of eligi-
ble credit transferred under § 6418(a), is
guidance needed to clarify the application
of any other Code provision? If so, what is
the Code provision and what clarification
is needed?
(7) Is guidance needed to clarify how
any other Code provision applies to an
eligible taxpayer or a transferee taxpayer
when an election is made under § 6418?
If so, what is the Code provision and what
clarification is needed?
(8) For purposes of preventing dupli-
cation, fraud, improper payments, or
excessive credit transfers under § 6418,
what information, including any docu-
mentation created in or out of the ordi-
nary course of business, or registration,
should be required by the IRS as a con-
dition of, prior to, or after any transfer of
any portion of an eligible credit pursuant
to § 6418(a)? What factors should the
Treasury Department and the IRS con-
sider as to when documentation or reg-
istration should be required? Should the
IRS require the same documentation or
registration for all eligible credits? If not,
how should the information or registra-
tion differ between eligible credits? What
other processes could be implemented by
the IRS to prevent duplication, fraud,
improper payments, or excessive credit
transfers under § 6418?
(9) What, if any, guidance is needed
to clarify the application of the exces-
sive credit transfer provisions of § 6418?
What factors should be taken into account
in determining whether reasonable cause
exists for purposes of § 6418(g)(2)(B)?
What guidance is needed to calculate the
excessive credit transfer amount?
(10) For purposes of § 6418(g)(3),
what, if any, guidance is needed to clar-
ify the application of § 50 for purposes of
credit recapture, basis adjustments, and
eligibility related to § 50(b)(3)? Pursu-
ant to § 6418(g)(3)(B)(i), an eligible tax-
payer must notify the transferee taxpayer
if, during any taxable year, the applicable
investment credit property is disposed
of, or otherwise ceases to be investment
credit property with respect to the eli-
gible taxpayer, before the close of the
recapture period. What factors should be
considered in determining the form and
manner of this notice? Likewise, pursuant
to § 6418(g)(3)(B)(ii), the transferee tax-
payer must notify the eligible taxpayer of
the recapture amount. What factors should
be considered in determining the form and
manner of this notice?
(11) Is guidance needed to clarify the
application of § 6418(g)(4) regarding
progress expenditures? If so, what clarifi-
cation is needed?
(12) Please provide comments on any
other topics that may require guidance.
SECTION 4. SUBMISSION OF
COMMENTS
.01 Written comments should be sub-
mitted by Friday, November 4, 2022. Con-
sideration will be given, however, to any
written comment submitted after Friday,
November 4, 2022, if such consideration
will not delay the issuance of guidance.
The subject line for the comments should
include a reference to Notice 2022-50.
Comments may be submitted in one of
two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2022-0050 in the search
field on the regulations.gov homepage to
find this notice and submit comments).
(2) Alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2022-50), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
.02 All commenters are strongly
encouraged to submit comments electron-
ically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically, or
on paper, to its public docket on regula-
tions.gov.
SECTION 5. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further informa-
tion regarding this notice, call the energy
security guidance contact number at (202)
317-5254 (not a toll-free number).
Request for Comments
on Prevailing Wage,
Apprenticeship, Domestic
Content, and Energy
Communities Requirements
Under the Act Commonly
Known as the Inflation
Reduction Act of 2022
Notice 2022-51
SECTION 1. PURPOSE
The Department of the Treasury (Trea-
sury Department) and the Internal Reve-
nue Service (IRS) plan to issue guidance
regarding the provisions of §§ 30C, 45,
45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C,
48E, and 179D of the Internal Reve-
nue Code (Code), as amended or added
by Public Law 117-169, 136 Stat. 1818
(August 16, 2022), commonly known as
the Inflation Reduction Act of 2022 (IRA).
This notice requests comments on general
as well as specific questions pertaining
to the prevailing wage, apprenticeship,

October 24, 2022 332 Bulletin No. 2022–43
domestic content, and energy commu-
nity requirements for increased or bonus
credit (or deduction) amounts under those
respective provisions of the Code. Com-
ments received in response to this notice
will help to inform development of guid-
ance implementing the provisions of the
IRA relating to §§ 30C, 45, 45L, 45Q,
45U, 45V, 45Y, 45Z, 48, 48C, 48E, and
179D.
SECTION 2. BACKGROUND
.01 Overview.
Taxpayers may qualify for increased
credit amounts under §§ 30C, 45, 45Q,
45V, 45Y, 45Z, 48, 48C, and 48E, or
an increased deduction amount under
§ 179D, if certain prevailing wage and
apprenticeship requirements are satis-
fied.
1
In addition, taxpayers may claim
an increased credit amount under §§ 45L
and 45U for satisfying prevailing wage
requirements.
2
Further, taxpayers may
qualify for bonus credit amounts under
§§ 45, 48, 45Y, and 48E if certain
domestic content requirements are satis-
fied.
3
Finally, taxpayers may qualify for
increased credit amounts under §§ 45, 48,
45Y, and 48E for investment in energy
communities.
4
.02 Prevailing Wage Requirement.
Sections 45(b)(7), 30C(g)(2), 45L(g),
45Q(h)(3), 45U(d)(2), 45V(e)(3), 45Y(g)
(9), 45Z(f)(6), 48(a)(10), 48C(e)(5),
and 48E(d)(3) include prevailing wage
requirements that taxpayers must satisfy
to qualify for increased credit amounts
under those sections of the Code. Sec-
tion 179D(b)(4) includes prevailing wage
requirements that taxpayers must satisfy
to qualify for an increased deduction
amount under that section. The prevailing
wage requirements under these various
provisions are described below.
Section 45(b)(7)(A) provides, in gen-
eral, that a taxpayer satisfies the prevailing
wage requirements with respect to a qual-
ified facility if the taxpayer ensures that
any laborers and mechanics employed by
the taxpayer or any contractor or subcon-
tractor in the construction of such facil-
ity, and with respect to any taxable year
for any portion of such taxable year that
is within the period described in § 45(a)
(2)(A)(ii), the alteration or repair of such
facility, are paid wages at rates not less
than the prevailing rates for construction,
alteration, or repair of a similar charac-
ter in the locality in which such facility
is located as most recently determined
by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title
40, United States Code. To determine an
increased credit amount for a taxable year,
the requirement under § 45(b)(7)(A)(ii) is
applied to the taxable year in which the
alteration or repair of the qualified facility
occurs.
Section 45(b)(7)(B)(i) generally pro-
vides a correction and penalty mechanism
for a taxpayer that claims the increased
credit amount but fails to satisfy the pre-
vailing wage requirement under § 45(b)
(7)(A). Section 45(b)(7)(B)(ii) provides
that the deficiency procedures under sub-
chapter B of chapter 63 of the Code do not
apply with respect to the assessment or col-
lection of any penalty imposed by § 45(b)
(7). Section 45(b)(7)(B)(iii) increases the
penalty if the Secretary of the Treasury or
her delegate (Secretary) determines that
any failure to satisfy the prevailing wage
requirement under § 45(b)(7)(A) is due to
intentional disregard of the requirements
under § 45(b)(7)(A).
Section 48(a)(10) provides, in gen-
eral, that a taxpayer satisfies the prevail-
ing wage requirements with respect to an
energy project if the taxpayer ensures that
any laborers and mechanics employed by
the taxpayer or any contractor or sub-
contractor in the construction of such
energy project, and for the 5-year period
beginning on the date such project is
originally placed in service the alteration
or repair of such project, are paid wages
at rates not less than the prevailing rates
for construction, alteration, or repair of a
similar character in the locality in which
such project is located as most recently
determined by the Secretary of Labor, in
accordance with subchapter IV of chapter
31 of title 40 of the United States Code.
Subject to § 48(a)(10)(C), for purposes of
any determination under § 48(a)(9)(A)(i)
for the taxable year in which the energy
project is placed in service, the taxpayer
will be deemed to satisfy the requirement
under § 48(a)(10)(A)(ii) at the time such
project is placed in service. Section 48(a)
(10)(B) provides that rules similar to the
rules of § 45(b)(7)(B) (that is, the correc-
tion and penalty mechanism for failure to
satisfy the prevailing wage requirement)
apply. Section 48(a)(10)(C) provides that
the Secretary is to, by regulations or other
guidance, provide for recapturing the ben-
efit of any increase in the credit allowed
under § 48(a) by reason of § 48(a)(10)
with respect to any project that does not
satisfy the requirements under § 48(a)
(10)(A) (after application of § 48(a)(10)
(B)) for the period described in § 48(a)
(10)(A)(ii) (but which does not cease to
be investment credit property within the
meaning of § 50(a)). The period and per-
centage of such recapture are determined
under rules similar to the rules of § 50(a).
The prevailing wage requirements
under §§ 30C(g)(2), 45L(g),
5
45Q(h)(3),
6

45U(d)(2),45V(e)(3),45Y(g)(9), 45Z(f)
(6)(A), 48C(e)(5), 48E(d)(3), and 179D(b)
(4) are similar to the requirements under
§ 45(b)(7) and § 48(a)(10).
.03 Apprenticeship Requirements.
Sections 45(b)(8), 30C(g)(3), 45Q(h)
(4), 45V(e)(4), 45Y(g)(10), 45Z(f)
(7), 48(a)(11), 48C(e)(6), and 48E(d)
(4) include apprenticeship requirements
that taxpayers must satisfy to qualify for
1
See § 13404(d) of the IRA for the prevailing wage and apprenticeship requirements under § 30C(g); § 13101(f) of the IRA for the prevailing wage and apprenticeship requirements under
§ 45(b)(7); § 13104(d) of the IRA for the prevailing wage and apprenticeship requirements under § 45Q(h)(3) and (h)(4); § 13204(a)(1) of the IRA for the prevailing wage and apprenticeship
requirements under § 45V(e)(3) and (e)(4); § 13701(a) of the IRA for the prevailing wage and apprenticeship requirements under § 45Y(g)(10); § 13704(a) of the IRA for the prevailing wage
and apprenticeship requirements under § 45Z(f)(7); § 13102(k) of the IRA for the prevailing wage and apprenticeship requirements under § 48(a)(10) and (a)(11); § 13501(a) of the IRA for
the prevailing wage and apprenticeship requirements under § 48C(e)(5) and (e)(6); § 13702(a) of the IRA for the prevailing wage and apprenticeship requirements under § 48E(c)(3) and (c)
(4); and § 13303(a)(1) of the IRA for the prevailing wage and apprenticeship requirements under § 179D(b)(4) and (b)(5).
2
See § 13304(d) of the IRA for the prevailing wage requirement under § 45L(g) and § 13105(a) for the prevailing wage requirements under § 45U(d)(2).
3
See § 13101(g) of the IRA for the domestic content requirements under § 45(b)(9), § 13102(l) of the IRA for the domestic content requirements under § 48(a)(12), § 13701(a) of the IRA for
the domestic content requirements under § 45Y(g)(11), and § 13702(a) of the IRA for the domestic content requirements under § 48E(a)(3)(B).
4
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).

Bulletin No. 2022–43 333 October 24, 2022
increased credit amounts under those sec-
tions of the Code. Section 179D(b)(5)
includes apprenticeship requirements that
taxpayers must satisfy to qualify for an
increased deduction amount. The appren-
ticeship requirements under these various
provisions are described below.
Section 45(b)(8)(A)(i) provides that
a taxpayer satisfies the apprenticeship
requirements with respect to the construc-
tion of any qualified facility if the tax-
payer ensures that not less than the appli-
cable percentage of the total labor hours of
the construction, alteration, or repair work
(including such work performed by any
contractor or subcontractor) with respect
to such facility is, subject to § 45(b)(8)
(B), performed by qualified apprentices.
Section 45(b)(8)(E)(ii) defines “quali-
fied apprentice” as “an individual who is
employed by the taxpayer or by any con-
tractor or subcontractor and who is par-
ticipating in a registered apprenticeship
program, as defined in section 3131(e)(3)
(B).” Section 3131(e)(3)(B) of the Code
defines a “registered apprenticeship pro-
gram” as an “apprenticeship registered
under the Act of August 16, 1937 (com-
monly known as the “National Appren-
ticeship Act”; 50 Stat. 664, chapter 663; 29
U.S.C. 50 et seq.) that meets the standards
of subpart A of part 29 and part 30 of title
29, Code of Federal Regulations.”
Under § 45(b)(8)(A)(ii), the applica-
ble percentage of total labor hours to be
performed by a qualified apprentice is
(1) in the case of a qualified facility the
construction of which begins before Jan-
uary 1, 2023, 10 percent, (2) in the case
of a qualified facility the construction of
which begins after December 31, 2022,
and before January 1, 2024, 12.5 percent,
and (3) in the case of a qualified facility
the construction of which begins after
December 31, 2023, 15 percent.
Section 45(b)(8)(B) provides that the
requirement under § 45(b)(A)(i) is sub-
ject to any applicable requirements for
apprentice-to-journeyworker ratios of the
Department of Labor or the applicable
State apprenticeship agency.
Section 45(b)(8)(C) provides that each
taxpayer, contractor, or subcontractor who
employs four or more individuals to per-
form construction, alteration, or repair
work with respect to the construction of
a qualified facility must employ one or
more qualified apprentices to perform
such work.
Section 45(b)(8)(D)(i) provides that a
taxpayer will not be treated as failing to
satisfy the apprenticeship requirements
if the taxpayer (1) satisfies the good faith
effort requirements described in § 45(b)
(8)(D)(ii), or (2) subject to § 45(b)(8)(D)
(iii), in the case of any failure by the tax-
payer to satisfy the requirements under
§ 45(b)(8)(A) and (C) with respect to the
construction, alteration, or repair work on
any qualified facility to which § 45(b)(8)
(D)(i)(I) does not apply, makes payment
to the Secretary of a penalty in an amount
equal to the product of $50, multiplied by
the total labor hours for which the require-
ment was not satisfied with respect to the
construction, alteration, or repair work on
such qualified facility.
Section 45(b)(8)(D)(ii) provides that a
taxpayer will be deemed to have satisfied
the requirements under § 45(b)(8)(A) with
respect to a qualified facility if such tax-
payer has requested qualified apprentices
from a registered apprenticeship program
and (1) such request has been denied,
provided that such denial is not the result
of a refusal by the taxpayer or any con-
tractors or subcontractors engaged in the
performance of construction, alteration,
or repair work with respect to such quali-
fied facility to comply with the established
standards and requirements of the regis-
tered apprenticeship program, or (2) the
registered apprenticeship program fails to
respond to such request within 5 business
days after the date on which such regis-
tered apprenticeship program received
such request.
Section 45(b)(8)(D)(iii) provides that if
the Secretary determines that any failure
described in § 45(b)(8)(D)(i)(II) is due to
intentional disregard of the apprenticeship
requirements, § 45(b)(8)(D)(i)(II) must be
applied by substituting $500 for $50 for
purposes of computing the penalty.
Section 45(b)(8)(E)(i) defines the term
“labor hours.”
Sections 30C(g)(3), 45Q(h)(4), 45V(e)
(4), 45Y(g)(10), 45Z(f)(7), 48(a)(11),
48C(e)(6) (effective for taxable years
beginning after January 1, 2023), 48E(d)
(4), and 179D(b)(5) apply rules similar to
those under § 45(b)(8).
.04 Domestic Content Requirement.
Sections 45(b)(9), 48(a)(12), 45Y(g)
(11) and 48E(a)(3)(B) provide domestic
content requirements that taxpayers must
satisfy to qualify for bonus credit amounts
under those sections of the Code. Sections
45(b)(9)(A) and 45Y(g)(11)(A) provide
for a 10 percent domestic content bonus
credit amount if the domestic content
requirements are satisfied. Under §§ 48(a)
(12)(C) and 48E(a)(3)(B), the domestic
content bonus credit amount is reduced
from 10 percent to 2 percent if certain
other requirements are not satisfied.
Section 45(b)(9)(B)(i) provides that
with respect to any qualified facility, the
domestic content requirement is satisfied
if the taxpayer certifies to the Secretary (at
such time, and in such form and manner,
as the Secretary may prescribe) that any
steel, iron, or manufactured product that is
a component of such facility (upon com-
pletion of construction) was produced in
the United States (as determined under
49 C.F.R. § 661).
Section 45(b)(9)(B)(ii) provides that
in the case of steel or iron, § 45(b)(9)(B)
(i) is applied in a manner consistent with
49 C.F.R. § 661.5. For purposes of § 45(b)
(9)(B)(i), § 45(b)(9)(B)(iii) provides that
the manufactured products that are com-
ponents of a qualified facility upon com-
pletion of construction are deemed to have
been produced in the United States if not
less than the adjusted percentage (as deter-
mined under § 45(b)(9)(C)) of the total
costs of all such manufactured products
of such facility are attributable to manu-
factured products (including components)
that are mined, produced, or manufactured
in the United States.
Section 45(b)(9)(C)(i) provides that the
adjusted percentage is 40 percent. Section
45(b)(9)(C)(ii) provides an exception for
a qualified facility that is an offshore wind
facility, for which the adjusted percentage
is 20 percent.
7
5
Section 45L (New energy efficient home credit) includes a modified prevailing wage requirement under § 45L(g).

Section 45L(g)(3) provides that the Secretary is to issue such regulations
or other guidance necessary to carry out the purposes of § 45L(g).
6
Section 45Q(h)(3)(A) applies with respect to any qualified facility and any carbon capture equipment.

October 24, 2022 334 Bulletin No. 2022–43
Section 45(b)(10) provides for the
phaseout of elective payments. Section
45(b)(10)(A) provides that in the case of
a taxpayer making an election under §
6417 with respect to a credit under § 45,
the amount of such credit will be replaced
with the value of such credit (determined
without regard to § 45(b)(10)), multiplied
by the applicable percentage. Section
45(b)(10)(B) provides that in the case
of any qualified facility (1) that satisfies
the requirements under § 45(b)(9)(B), or
(2) with a maximum net output of less than
1 megawatt (as measured in alternating
current), the applicable percentage is 100
percent. Section 45(b)(10)(C) provides for
a phased domestic content requirement,
and states that subject to the exceptions in
§ 45(b)(10)(D), for any qualified facility
that is not described in § 45(b)(10)(B), the
applicable percentage is (1) 100 percent if
construction of such facility begins before
January 1, 2024, and (2) 90 percent if con-
struction of such facility begins in calen-
dar year 2024.
8
Section 45(b)(10)(D)(i) provides that
the Secretary is to provide exceptions to
the requirements under § 45(b)(10)(D) if
(1) the inclusion of steel, iron, or manu-
factured products that are produced in the
United States increases the overall costs
of construction of qualified facilities by
more than 25 percent, or (2) relevant steel,
iron, or manufactured products are not
produced in the United States in sufficient
and reasonably available quantities or of a
satisfactory quality. Section 45(b)(10)(D)
(ii) provides that in any case in which the
Secretary provides an exception pursuant
to § 45(b)(10)(D)(i), the applicable per-
centage is 100 percent.
Sections 48(a)(12), 45Y(g)(11), and
48E(a)(3)(B) apply similar rules to those
under § 45(b)(9). Sections 48(a)(13),
45Y(g)(12), and 48E(d)(5) apply similar
elective payments rules to those under
§ 45(b)(10).
.05 Energy Community Requirement.
Sections 45(b)(11), 48(a)(14), 45Y(g)(7),
and 48E(a)(3)(A) provide energy com-
munity requirements that taxpayers must
satisfy to qualify for increased credit
amounts under those provisions of the
Code. Section 45(b)(11)(A) provides that
in the case of a qualified facility located
in an energy community, the credit deter-
mined under § 45(a) (determined after
the application of § 45(b)(1) through
(10), without the application of § 45(b)
(9)) is increased by an amount equal to
10 percent of the amount so determined.
Section 45Y(g)(7) provides a similar
rule. Under §§ 48(a)(14) and 48E(a)(3)
(A), the increase in the credit amount for
satisfying the energy community require-
ments is reduced from 10 percent to 2
percent if certain other requirements are
not satisfied.
Section 45(b)(11)(B) provides that for
purposes of § 45(b)(11), the term energy
community means: (1) A brownfield site
(as defined in 42 U.S.C. 9601(39)(A),
(B), and (D)(ii)(III)), (2) A metropolitan
statistical area or non-metropolitan sta-
tistical area that has (or had, at any time
after December 31, 2009) 0.17 percent or
greater direct employment or 25 percent
or greater local tax revenues related to the
extraction, processing, transport, or stor-
age of coal, oil, or natural gas (as deter-
mined by the Secretary), and has an unem-
ployment rate at or above the national
average unemployment rate for the previ-
ous year (as determined by the Secretary),
or (3) A census tract (i) in which a coal
mine has closed after December 31, 1999;
or (ii) in which a coal-fired electric gener-
ating unit has been retired after December
31, 2009; or (iii) that is directly adjoining
to any census tract described in § 45(b)
(11)(B)(iii)(I).
The definition of an energy community
in § 45(b)(11)(B) is adopted by §§ 45Y(g)
(7), 48(a)(14) (subject to certain modifica-
tions), and 48E(a)(3)(A).
SECTION 3. REQUEST FOR
COMMENTS
The Treasury Department and the IRS
request comments on questions arising
from the amendments in the IRA regard-
ing prevailing wage, apprenticeship,
domestic content, and energy community
requirements that should be addressed in
guidance. Commenters are encouraged to
specify the issues on which guidance is
needed most quickly as well as the most
important issues on which guidance is
needed. In addition to general comments,
the Treasury Department and the IRS
request comments that address the follow-
ing specific questions:
.01 Prevailing Wage Requirement
(1) Section 45(b)(7)(A) provides that
a taxpayer must ensure that any laborers
and mechanics employed by the taxpayer,
or any contractor or subcontractor, are
paid wages at rates not less than the pre-
vailing wage rates for construction, alter-
ation, or repair of a similar character in the
locality in which such facility is located
as most recently determined by the Sec-
retary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, which
is commonly known as the Davis-Bacon
Act. Is guidance necessary to clarify how
the Davis-Bacon prevailing wage require-
ments apply for purposes of § 45(b)(7)
(A)?
(2) Section 45(b)(7)(B)(i) generally
provides a correction and penalty mech-
anism for failure to satisfy prevailing
wage requirements. What should the Trea-
sury Department and the IRS consider in
developing rules for taxpayers to correct a
deficiency for failure to satisfy prevailing
wage requirements?
(3) What documentation or sub-
stantiation should be required to show
compliance with the prevailing wage
requirements?
(4) Is guidance for purposes of § 45(b)
(7)(A) needed to clarify the treatment of
a qualified facility that has been placed in
service but does not undergo alteration or
repair during a year in which the prevail-
ing wage requirements apply?
(5) Please provide comments on any
other topics relating to the prevailing
wage requirements for purposes of § 45(b)
(7)(A) that may require guidance.
.02 Apprenticeship Requirement
(1) Section 45(b)(8)(C) provides that
each taxpayer, contractor, or subcontrac-
tor who employs four or more individ-
uals to perform construction, alteration,
or repair work with respect to a quali-
fied facility must employ one or more
7
For purposes of §§ 45, 48, and 48E, the adjusted percentage is 40 percent (20 percent in the case of offshore wind facilities).

For purposes of § 45Y, § 45Y(g)(11)(C) provides the adjusted
percentages, ranging from 40 precent (20 percent in the case of offshore wind facilities) to 55 percent depending on when construction of a facility begins.
8
For purposes of §§ 45Y(g)(12) and 48E(d)(5), the applicable percentages are the same as for §§ 45 and 48 for facilities that begin construction in 2024 or earlier, but the applicable per-
centages decrease from 85 percent for facilities that begin construction in 2025 to 0 percent for facilities that begin construction after 2025.

Bulletin No. 2022–43 335 October 24, 2022
qualified apprentices from a registered
apprenticeship program to perform that
work. What factors should the Treasury
Department and the IRS consider regard-
ing the appropriate duration of employ-
ment of individuals for construction,
alteration, or repair work for purposes of
this requirement?
(2) Section 45(b)(8)(D)(ii) provides
for a good faith effort exception to the
apprenticeship requirement.
(a) What, if any, clarification is needed
regarding the good faith effort exception?
(b) What factors should be considered
in administering and promoting compli-
ance with this good faith effort exception?
(c) Are there existing methods to facil-
itate reporting requirements, for example,
through current Davis-Bacon reporting
forms, current performance reporting
requirements for contracts or grants, and/
or through DOL’s Registered Apprentice-
ship Partners Information Management
Data System (RAPIDS) database or a
State Apprenticeship Agency’s database?
(3) What documentation or substantia-
tion do taxpayers maintain or could they
create to demonstrate compliance with the
apprenticeship requirements in § 45(b)(8)
(A), (B), and (C), or the good faith effort
exception?
(4) Please provide comments on any
other topics relating to the apprenticeship
requirements in § 45(b)(8)(B) that may
require guidance.
.03 Domestic Content Requirement
(1) Sections 45(b)(9)(B) and 45Y(g)
(11)(B) provide that a taxpayer must cer-
tify that any steel, iron, or manufactured
product that is a component of a qualified
facility (upon completion of construction)
was produced in the United States (as
determined under 49 C.F.R. 661).
(a) What regulations, if any, under 49
C.F.R. 661 (such as 49 C.F.R. 661.5 or
661.6) should apply in determining whether
the requirements of section §§ 45(b)(9)(B)
and 45Y(g)(11)(B) are satisfied? Why?
(b) What should the Treasury Depart-
ment and the IRS consider when deter-
mining “completion of construction” for
purposes of the domestic content require-
ment? Should the “completion of con-
struction date” be the same as the placed
in service date? If not, why?
(c) Should the definitions of “steel” and
“iron” under 49 C.F.R. 661.3, 661.5(b)
and (c) be used for purposes of defining
those terms under §§ 45(b)(9)(B) and
45Y(g)(11)(B)? If not, what alternative
definitions should be used?
(d) What records or documentation do
taxpayers maintain or could they create to
substantiate a taxpayer’s certification that
they have satisfied the domestic content
requirements?
(2) Sections 45(b)(9)(B)(iii) and
45Y(g)(11)(B)(iii) provide that manu-
factured products that are components of
a qualified facility upon completion of
construction will be deemed to have been
produced in the United States if not less
than the adjusted percentage of the total
costs of all of such manufactured products
of such facility are attributable to manu-
factured products (including components)
that are mined, produced, or manufactured
in the United States.
(a) Does the term “component of a
qualified facility” need further clarifica-
tion? If so, what should be clarified and is
any clarification needed for specific types
of property, such as qualified interconnec-
tion property?
(b) Does the determination of “total
costs” with regard to all manufactured
products of a qualified facility that are
attributable to manufactured products
(including components) that are mined,
produced, or manufactured in the United
States need further clarification? If so,
what should be clarified? Is guidance
needed to clarify the term “mined, pro-
duced, or manufactured”?
(c) Does the term “manufactured prod-
uct” with regard to the various technol-
ogies eligible for the domestic content
bonus credit need further clarification? If
so, what should be clarified? Is guidance
needed to clarify what constitutes an “end
product” (as defined in 49 C.F.R. 661.3)
for purposes of satisfying the domestic
content requirements?
(d) Does the adjusted percentage
threshold rule that applies to manufac-
tured products need further clarification?
If so, what should be clarified?
(e) Does the treatment of subcompo-
nents with regard to manufactured prod-
ucts need further clarification? If so, what
should be clarified?
(3) Solely for purposes of determining
whether a reduction in an elective pay-
ment amount is required under § 6417,
§§ 45(b)(10)(D) and 45Y(g)(12)(D) pro-
vide an exception for the requirements
contained in §§ 45(b)(9)(B) and 45Y(g)
(10)(B) (respectively) if the inclusion of
steel, iron, or manufactured productions
that are produced in the United States
increases the overall costs of construc-
tion of qualified facilities by more than
25 percent or relevant steel, iron, or man-
ufactured products are not produced in the
United States in sufficient and reasonably
available quantities or of a satisfactory
quality.
(a) Does the determination of “overall
costs” and increases in the overall costs
with regard to construction of a qualified
facility need further clarification? If so,
what should be clarified?
(b) What factors should the Secre-
tary include in guidance to clarify when
an exception to the requirements under
section §§ 45(b)(10)(D) and 45Y(g)(12)
(D) applies? What existing regulatory or
guidance frameworks, such as the Federal
Acquisition Regulation (FAR) and Build
America Buy America (BABA) guidance,
may be useful for developing guidance to
grant exceptions under §§ 45(b)(10)(D)
and 45Y(g)(12)(D)?
(c) Do the “sufficient and reasonably
available quantities” and “satisfactory
quality” standards need further clarifica-
tion? If so, what should be clarified?
(4) Sections 48 and 48E have domes-
tic content bonus amount rules similar
to other provisions of the Code. Section
48(a)(12) has domestic content require-
ment rules similar to § 45(b)(9)(B) and
§ 48E(a)(3)(B) has domestic content
rules similar to the rules of § 48(a)(12).
What should the Treasury Department
and the IRS consider in providing guid-
ance regarding the similar domestic con-
tent requirements under § 48(a)(12) and
§ 48E(a)(3)(B)?
(5) Please provide comments on any
other topics relating to the domestic content
requirements that may require guidance.
.04 Energy Community Requirement
(1) Section 45(b)(11)(A) provides an
increased credit amount for a qualified
facility located in an energy community.
What further clarifications are needed
regarding the term “located in” for this
purpose, including any relevant timing
considerations for determining whether a
qualified facility is located in an energy

October 24, 2022 336 Bulletin No. 2022–43
community? Should a rule similar to
the rule in § 1397C(f) (Enterprise Zones
rule regarding the treatment of busi-
nesses straddling census tract lines), the
rules in 26 C.F.R. §§ 1.1400Z2(d)-1 and
1.1400Z2(d)-2, or other frameworks apply
in making this determination?
(2) Does the determination of a brown-
field site (as defined in subparagraphs (A),
(B), and (D)(ii)(III) of § 101(39) of the
Comprehensive Environmental Response,
Compensation, and Liability Act of 1980
(42 U.S.C. 9601(39))) need further clar-
ification? If so, what should be clarified?
(3) Which source or sources of infor-
mation should the Treasury Department
and the IRS consider in determining a
“metropolitan statistical area” (MSA) and
“non-metropolitan statistical area” (non-
MSA) under § 45(b)(11)(B)(ii)? Which
source or sources of information should
be used in determining whether an MSA
or non-MSA meets the threshold of 0.17
percent or greater direct employment
related to the extraction, processing, trans-
port, or storage of coal, oil, or natural gas,
and an unemployment rate at or above
the national average unemployment rate
for the previous year? What industries or
occupations should be considered under
the definition of “direct employment” for
purposes of this section?
(4) Which source or sources of infor-
mation should the Treasury Department
and the IRS consider in determining
census tracts that had a coal mine closed
after December 31, 1999, or had a coal-
fired electric generating unit retired after
December 31, 2009, under § 45(b)(11)
(B)(iii)? How should the closure of a
coal mine or the retirement of a coal-fired
electric generating unit be defined under
§ 45(b)(11)(B)(iii)?
(5) For each of the three categories
of energy communities allowed under
§ 45(b)(11)(B), what past or possible
future changes in the definition, scope,
boundary, or status of a “brownfield site”
under § 45(b)(11)(B)(i), a “metropolitan
statistical area or non-metropolitan sta-
tistical area” under § 45(b)(11)(B)(ii), or
a “census tract” under § 45(b)(11)(B)(iii)
should be considered, and why?
(6) Under § 45(b)(11)(B)(ii)(I), what
should the Treasury Department and the
IRS consider in determining whether a
metropolitan statistical area or non-metro-
politan statistical area has or had 25 percent
or greater local tax revenues related to the
extraction, processing, transport, or storage
of coal, oil, or natural gas? What sources
of information should be used in making
this determination? What tax revenues (for
example, municipal, county, special district)
should be considered under this section?
What, if any, consideration should be given
to the unavailability of consistent public data
for some of these types of taxes?
(7) Please provide comments on any
other topics relating to the energy com-
munity requirement that may require
guidance.
.05 Increased Credit Amount for Quali-
fied Facility With Maximum Net Output of
Less than 1 Megawatt
Section 45(b)(6)(A) provides for an
increased credit amount in the case of any
qualified facility that satisfies the require-
ments of § 45(b)(6)(B). One way that a
qualified facility can satisfy the require-
ments of § 45(b)(6)(B) is if it is a facility
with a maximum net output of less than
1 megawatt (as measured in alternating
current). Similarly, § 48(a)(9)(A) pro-
vides for an increased credit amount in
the case of any energy project that satis-
fies the requirements of § 48(a)(9)(B), and
one way that an energy project can satisfy
the requirements of § 48(a)(9)(B) is if it
is a project with a maximum net output of
less than 1 megawatt of electrical (as mea-
sured in alternating current) or thermal
energy. Sections 45Y(a)(2)(B) and 48E(a)
(2)(A) also provide similar rules. Does the
determination of when a facility or proj-
ect will be considered to have a maximum
net output of less than 1 megawatt need
further clarification? If so, what should be
clarified?
SECTION 4. SUBMISSION OF
COMMENTS
.01 Written comments should be submit-
ted by Friday, November 4, 2022. Consider-
ation will be given, however, to any written
comment submitted after Friday, November
4, 2022, if such consideration will not delay
the issuance of guidance. The subject line
for the comments should include a refer-
ence to Notice 2022-51. Comments may be
submitted in one of two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2022-51 in the search field
on the regulations.gov homepage to find
this notice and submit comments).
(2) Alternatively, by mail to: Inter-
nal Revenue Service, CC:PA:LPD:PR
(Notice 2022-51), Room 5203, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
.02 All commenters are strongly
encouraged to submit comments electron-
ically. The Treasury Department and the
IRS will publish for public availability
any comment submitted electronically, or
on paper, to its public docket on regula-
tions.gov.
SECTION 5. 60-DAY RULE
NOT EFFECTUATED FOR
THE PREVAILING WAGE
AND APPRENTICESHIP
REQUIREMENTS
For purposes of §§ 30C, 45, 45L, 45Q,
45U, 45V, 45Y, 48, 48C, 48E, and 179D,
the publication of this notice requesting
comments is not the publication of guid-
ance with respect to the prevailing wage
and apprenticeship requirements, and it is
not relevant in determining whether the pre-
vailing wage and apprenticeship require-
ments are satisfied under such sections.
The Treasury Department and the IRS will
explicitly identify when it has published
guidance with respect to the prevailing
wage and apprenticeship requirements that
is relevant for determining whether such
requirements have been satisfied for pur-
poses of §§ 30C, 45, 45L, 45Q, 45U, 45V,
45Y, 48, 48C, 48E, and 179D.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further informa-
tion regarding this notice, call the energy
security guidance contact number at (202)
317-5254 (not a toll-free number).

Bulletin No. 2022–43 337 October 24, 2022
Extension of Section 42
Relief
Notice 2022-52
SECTION I. PURPOSE
This notice modifies and amplifies
sections IV.C, IV.D, IV.F, and V.B of
Notice 2022-05, 2022–5 I.R.B. 457, by
providing additional temporary relief
from certain requirements under § 42
of the Internal Revenue Code (Code)
for qualified low-income housing proj-
ects. The Internal Revenue Service and
the Department of the Treasury have
received numerous inquiries related to
unavoidable labor and supply-chain dis-
ruptions delaying the construction, reha-
bilitation, and restoration of properties
throughout the United States. In view of
the unique circumstances resulting from
the labor and supply-chain disruptions
and their effect on the existing relief pro-
vided in Notice 2022-05, it is appropriate
to provide the additional temporary relief
in this notice.
SECTION II. EXTENSION OF
CERTAIN TEMPORARY RELIEF IN
NOTICE 2022-05
.01 Extension of certain placed-in-ser-
vice deadlines. This notice modifies and
amplifies section IV.C of Notice 2022-
05 by designating the four bullets under
section IV.C of Notice 2022-05 as sec-
tion IV.C.(1) through (4), revising section
IV.C.(2) and (4), and adding new section
IV.C.(5) to extend placed-in-service dead-
lines for projects receiving allocations in
2019, 2020, and 2021. As so modified and
amplified, section IV.C of Notice 2022-05
now reads:
C. PLACED-IN-SERVICE DEADLINE
(1) For purposes of § 42(h)(1)(E)
(i), if the original deadline for a low-in-
come building to be placed in service is
the close of calendar year 2020, the new
deadline is the close of calendar year 2022
(that is, December 31, 2022).
(2) If the original placed-in-service
deadline is the close of calendar year 2021
and the original deadline for the 10-per-
cent test in § 42(h)(1)(E)(ii) was before
April 1, 2020, the new placed-in-service
deadline is the close of calendar year 2023
(that is, December 31, 2023).
(3) If the original placed-in-service
deadline is the close of calendar year
2021 and the original deadline for the
10-percent test in § 42(h)(1)(E)(ii) was
on or after April 1, 2020, and on or before
December 31, 2020, then the new placed-
in-service deadline is the close of calendar
year 2023 (that is, December 31, 2023).
(4) If the original placed-in-service
deadline is the close of calendar year 2022
(and thus the original deadline for the
10-percent test in § 42(h)(1)(E)(ii) was
in 2021), then the new placed-in-service
deadline is the close of calendar year 2024
(that is, December 31, 2024).
(5) If the original placed-in-service
deadline is the close of calendar year 2023
(and thus the original deadline for the
10-percent test in § 42(h)(1)(E)(ii) was
in 2022), then the new placed-in-service
deadline is the close of calendar year 2024
(that is, December 31, 2024).
.02 Extension of Agency-set reasonable
restoration periods. This notice modi-
fies and amplifies section IV.D of Notice
2022-05 by permitting a twenty-four-
month extension of reasonable restoration
periods set by an Agency. As so modified
and amplified, section IV.D of Notice
2022-05 now reads:
D. REASONABLE PERIOD FOR
RESTORATION OR REPLACEMENT
IN THE EVENT OF CASUALTY LOSS
For purposes of § 42(j)(4)(E) both in
the case of a casualty loss not due to a pre-
COVID-19-pandemic Major Disaster and
in situations governed by section 8.02 of
Rev. Proc. 2014-49 in the case of a casualty
loss due to a pre-COVID-19-pandemic
Major Disaster, if a low-income building’s
qualified basis is reduced by reason of the
casualty loss and the reasonable period
to restore the loss by reconstruction or
replacement that was originally set by the
Agency (original Reasonable Restoration
Period) ends on or after April 1, 2020,
then the last day of the Reasonable Resto-
ration Period is postponed by twenty-four
months but not beyond December 31,
2023. Notwithstanding the preceding sen-
tence, the Agency may require a shorter
extension, or no extension at all.
For purposes of determining the credit
amount allowable under § 42(a) in the
case of a credit year that ends on or after
April 1, 2020, and not later than the end
of the Reasonable Restoration Period
(taking into account any extension under
the preceding paragraph), if the Owner
restores the building by the end of that
extended Reasonable Restoration Period,
then for taxable years ending after the
first day of the casualty and before the
completion of the restoration, the Owner
must use the building’s qualified basis at
the end of the taxable year immediately
preceding the first day of the casualty
as the building’s qualified basis for that
credit year.
.03 Extension of Agency-set correction
periods. This notice modifies and ampli-
fies section IV.F of Notice 2022-05 by
extending the correction period set by an
Agency by twelve months. As so modi-
fied and amplified, section IV.F of Notice
2022-05 now reads:
F. CORRECTION PERIOD
For purposes of § 1.42-5, if a correc-
tion period that was set by the Agency
ends on or after April 1, 2020, and
before December 31, 2022, then the
end of the correction period (includ-
ing as already extended, if applicable)
is extended by a year, but not beyond
December 31, 2023. If the correction
period originally set by the Agency
ends during 2023, the end of the period
is extended to December 31, 2023. Not-
withstanding the preceding sentences,
the Agency may require a shorter exten-
sion, or no extension at all.
.04 Extension of waivers of compliance
monitoring physical inspections. This
notice modifies and amplifies section V.B
of Notice 2022-05 by extending the tem-
porary waiver for compliance monitoring
physical inspections. As so modified and
amplified, section V.B of Notice 2022-05
now reads:

October 24, 2022 338 Bulletin No. 2022–43
B. COMPLIANCE-MONITORING—
PHYSICAL INSPECTIONS
For purposes of § 1.42-5, an Agency is
not required to conduct compliance-mon-
itoring physical inspections in the period
beginning on April 1, 2020, and end-
ing on June 30, 2022. Because of high
State-to-State and intra-State variability
of COVID-19 transmission, an Agency,
consistent with a general or specific health
and safety recommendation of a State or
local public health authority, may extend
the waiver in the preceding sentence if the
level of transmission makes such an exten-
sion appropriate. Depending on varying
rates of transmission, the extension may
be State-wide, may be limited to specific
locales, or may be on a project-by-project
basis. No such extension may go beyond
December 31, 2023. The Agency must
resume compliance-monitoring reviews
as due under § 1.42-5 once the waiver
expires.
For purposes of § 1.42-5(c)(2)(iii)(C)
(3), between April 1, 2020, and the end
of 2022 only, when the Agency gives an
Owner reasonable notice that it will phys-
ically inspect not-yet-identified low-in-
come units, it may treat reasonable notice
as being up to 30 days. Beginning on Jan-
uary 1, 2023, for this purpose reasonable
notice again is generally no more than 15
days
SECTION III. EFFECT ON OTHER
DOCUMENTS
Notice 2022-05 is modified and
amplified.
SECTION IV. DRAFTING
INFORMATION
The principal author of this notice is
Dillon Taylor, Office of Associate Chief
Counsel (Passthroughs & Special Indus-
tries). For further information regarding
this notice, please contact Dillon Taylor at
(202) 317-4137 (not a toll-free number).

Bulletin No. 2022–43 339 October 24, 2022
NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1167, General Rules and Specifications for Substitute Forms and Schedules.
Rev. Proc. 2022-31
TABLE OF CONTENTS
Part 1 – INTRODUCTION TO SUBSTITUTE FORMS
Section 1.1 – Overview of Revenue Procedure 2022-31 .....................................................340
Section 1.2 – IRS Contacts ............................................................................341
Section 1.3 – What’s New .............................................................................342
Section 1.4 – Definitions ..............................................................................342
Section 1.5 – Agreement ..............................................................................344
Part 2 – GENERAL GUIDELINES FOR SUBMISSIONS AND APPROVALS
Section 2.1 – General Specifications for Approval ..........................................................345
Section 2.2 – Highlights of Permitted Changes and Requirements .............................................347
Section 2.3 – Vouchers ...............................................................................347
Section 2.4 – Restrictions on Changes ...................................................................350
Section 2.5 – Guidelines for Obtaining IRS Approval .......................................................350
Section 2.6 – Office of Management and Budget (OMB) Requirements for All Substitute Forms .....................353
Part 3 – PHYSICAL ASPECTS AND REQUIREMENTS
Section 3.1 – General Guidelines for Substitute Forms ......................................................354
Section 3.2 – Paper ..................................................................................356
Section 3.3 – Printing ................................................................................357
Section 3.4 – Margins ................................................................................358
Section 3.5 – Miscellaneous Information for Substitute Forms ................................................359
Part 4 – ADDITIONAL RESOURCES
Section 4.1 – Guidance From Other Revenue Procedures ....................................................360
Section 4.2 – Electronic Tax Products ....................................................................360
Part 5 – REQUIREMENTS FOR SPECIFIC TAX RETURNS
Section 5.1 – Tax Returns (Forms 1040, 1040-SR, 1120, etc.) .................................................360
Section 5.2 – Changes Permitted to Graphics (Form 1040 or 1040-SR) .........................................361
Part 6 – FORMAT AND CONTENT OF SUBSTITUTE RETURNS
Section 6.1 – Acceptable Formats for Substitute Forms and Schedules ..........................................363
Section 6.2 – Additional Instructions for All Forms .........................................................364
Part 7 – MISCELLANEOUS FORMS AND PROGRAMS
Section 7.1 – Specifications for Substitute Schedules K-1 ....................................................366
Section 7.2 – Guidelines for Substitute Forms 8655 .........................................................372
Part 8 – ADDITIONAL INFORMATION
Section 8.1 – Forms for Electronically Filed Returns ........................................................373
Section 8.2 – Effect on Other Documents .................................................................374
Section 8.3 – Exhibits ................................................................................374

October 24, 2022 340 Bulletin No. 2022–43
Part 1
Introduction to Substitute Forms
Section 1.1 – Overview of Revenue Procedure 2022-31
1.1.1
Purpose
The purpose of this revenue procedure is to provide guidelines and general requirements for the
development, printing, and approval of the 2022 substitute tax forms. Approval will be based on
these guidelines. After review and approval, submitted forms will be accepted as substitutes for
official IRS forms.
1.1.2
Unique Forms
Certain unique specialized forms require the use of other publications that supplement this
publication. See Part 4.
1.1.3
Scope
The IRS accepts quality substitute tax forms that are consistent with the official forms and have no
adverse impact on processing. The IRS Substitute Forms Program (the Program) administers the
formal acceptance and processing of these forms nationwide. While this Program deals with paper
documents, it also reviews for approval other processing and filing forms used in electronic filing.
Only those substitute forms that fully comply with these requirements are acceptable. This revenue
procedure is updated as required to reflect pertinent tax year form changes and to meet processing
and/or legislative requirements.
1.1.4
Forms Covered by
This
Revenue Procedure
The following types of forms are covered by this revenue procedure.
• IRS tax forms and their related schedules.
• Worksheets as they appear in the instructions.
• Applications for permission to file returns electronically and forms used as required
documentation for electronically filed returns.
• Powers of Attorney.
• Over-the-counter estimated tax payment vouchers.
• Forms and schedules relating to partnerships, exempt organizations, and employee plans.
1.1.5
Forms Not Covered by
This
Revenue Procedure
The following types of forms are not covered by this revenue procedure. Refer to the publication
for questions.
• W-2 and W-3. See Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.
• W-2c and W-3c. See Pub. 1223, General Rules and Specifications for Substitute Forms W-2c
and W-3c.

Bulletin No. 2022–43 341 October 24, 2022
• 941 and attached schedules. See Pub. 4436, General Rules and Specifications for Substitute Form
941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and Form 8974.
• 1096, 1097-BTC, 1098 series, 1099 series, 3921, 3922, 5498 series, W-2G, and 1042-S. See
Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498,
and Certain Other Information Returns.
• 1095-A, 1094-B, 1095-B, 1094-C, and 1095-C. See Pub. 5223, General Rules and Specifications
for Affordable Care Act Substitute Forms 1095-A, 1094-B, 1095-B, 1094-C, and 1095-C.
• 8027. See Pub. 1239, Specifications for Electronic Filing of Form 8027, Employer’s Annual
Information Return of Tip Income and Allocated Tips.
• Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced.
• Form 5500 series (for more information on these forms, see the Department of Labor website
at www.efast.dol.gov).
• Forms 5300, 5307, 8717, and 8905, bar-coded forms requiring separate approval.
• Forms used internally by the IRS.
• State tax forms.
• Forms developed outside the IRS.
1.1.6
Other
Information Not
Covered by This Revenue
Procedure
The following information is not covered by this revenue procedure.
• Requests for information or documentation initiated by the IRS.
• General Instructions and Specific Instructions (these are not reviewed by the Program).
Section 1.2 – IRS Contacts
1.2.1
Wher
e To Send Substitute
Forms
Send your substitute forms for approval to the following offices. Do not send forms with taxpayer
data.
FormOffice and Address
5500Check EFAST2 information at the Department
of Labor website at www.efast.dol.gov.
5300, 5307, 8717, and 8905Sandra.K.Barnes@irs.gov
Software developer vouchers (see
Sections 2.3.7–2.3.9)
Internal Revenue Service
Attn: Doris Bethea
5000 Ellin Road, C5-226
Lanham, MD 20706
Doris.E.Bethea@irs.gov
ACA Forms 1094-B, 1095-B, 1094-C, and
1095-C (for more information, see Pub.
5223), and Schedule K-1 forms must be
emailed for scannability testing
scrips@irs.gov

October 24, 2022 342 Bulletin No. 2022–43
FormOffice and Address
Schedule K-1 2-D bar-coded formsFor mailing addresses for sending Schedule K-1
2-D bar-coded forms for testing, see
Section 7.1.6.
All others covered by this publication
(see
Section 1.1.4 )
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP:TP
5000 Ellin Road, Mail Stop C-110
Lanham, MD 20706
substituteforms@irs.gov
Section 1.3 – What’s New
1.3.1
What’s New
The following changes have been made to this year
’s revenue procedure.
• .01 Editorial changes. We made editorial changes as needed and eliminated repetitive information.
• .02 Required 3-letter FFF code. The IRS requires tax preparation software firms that
participate in the IRS Free File Program include the 3-letter FFF code on all paper Form 1040
returns created by their individual tax preparation software.
Section 1.4 – Definitions
1.4.1
Substitute Form
A tax form (or related schedule) that differs in any way from the official version and is intended to
replace the form that is printed and distributed by the IRS. This term also covers those approved
substitute forms exhibited in this revenue procedure.
1.4.2
Printed/ Preprinted Form
A
form produced using conventional printing processes or a printed form which has been
reproduced by photocopying or a similar process.
1.4.3
Preprinted Pin- Fed Form
A printed form that has marginal perforations for use with automated and high-speed printing equipment.
1.4.4
Computer- Prepared
Substitute Form
A preprinted form in which the taxpayer’s tax entry information has been inserted by a computer,
computer printer, or other computer-type equipment.
1.4.5
Computer- Generated
Substitute Tax Return or
Form
A tax return or form that is entirely designed and printed using a computer printer on plain white
paper. This return or form must conform to the physical layout of the corresponding IRS form,
although the typeface may differ. The text should match the text on the officially printed form as
closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.
Exception. All jurats (perjury statements) must be reproduced verbatim.

Bulletin No. 2022–43 343 October 24, 2022
1.4.6
Manually Prepared Form
A preprinted reproduced form in which the taxpayer’s tax entry information is entered by an
individual using a pen, a pencil, or other nonautomated equipment.
1.4.7
Graphics
Parts of a printed tax form that are not tax amount entries or required text. Examples of graphics
are line numbers, captions, shadings, special indicators, borders, rules, and strokes created by
typesetting, photographics, photocomposition, etc.
1.4.8
Acceptable Reproduced
Form
A legible photocopy or an exact replica of an original form.
1.4.9
Supporting Statement
(Supplemental Schedule)
A document providing detailed information to support a line entry on an official or approved
substitute form and filed with (attached to) a tax return.
Note. A supporting statement is not a tax form and does not take the place of an official form.
1.4.10
Specific Form Terms
The following specific terms are used throughout this revenue procedure in reference to all
substitute forms: format, sequence, line reference, item caption, and data entry field.
1.4.11
Format
The overall physical arrangement and general layout of a substitute form.
1.4.12
Sequence
Sequence is an integral part of the total format requirement. The substitute form should show the
same numeric and logical placement order of data as shown on the official form.
1.4.13
Line Reference
The line numbers, letters, or alphanumerics used to identify each captioned line on an official form.
These line references are printed to the immediate left of each caption and/or data entry field.
1.4.14
Item Caption
The text on each line of a form, which identifies the data required.
1.4.15
Data Entry Field
Designated areas for the entry of data such as dollar amounts, quantities, responses, and checkboxes.
1.4.16
Advance Draft
A draft version of a new or revised form may be posted to the IRS website (IRS.gov/DraftForms)
for information purposes. Substitute forms may be submitted based on these advance drafts, but
any submitter that receives forms approval based on these early drafts is responsible for monitoring
and revising forms to reflect any revisions in the final forms provided by the IRS.

October 24, 2022 344 Bulletin No. 2022–43
1.4.17
Approval
Generally, approval could be in writing or assumed after 20 business days from our receipt for
forms that have not been substantially changed by the IRS. This does not apply to newly created
or substantially revised IRS forms. However, the Program reserves the right to notify vendors of
any inaccuracies even after 20 business days have lapsed.
1.4.18
National Association
of Computerized Tax
Processors (NACTP)
The National Association of Computerized Tax Processors (NACTP) is a nonprofit association
that represents tax processing software and hardware developers, electronic filing processors, tax
form publishers, tax processing service bureaus, and payroll processors. The association promotes
standards in tax processing to advance efficient and effective tax filing. For more information, see
NACTP.org.
Section 1.5 – Agreement
1.5.1
Important Stipulation of
This Revenue Procedure
Any person or company who uses substitute forms and makes all or part of the changes specified
in this revenue procedure agrees to the following stipulations.
• The IRS presumes that any required changes are made in accordance with these procedures
and will not be disruptive to the processing of the tax return.
• Should any of the changes be disruptive to the IRS’s processing of the tax return, the person or
company agrees to accept the determination of the IRS as to whether the form may continue
to be filed.
• The person or company agrees to work with the IRS in correcting noted deficiencies.
Notification of deficiencies may be made by any combination of letter, email, or phone contact
and may include the request for the resubmission of unacceptable forms.
1.5.2
Response Policy and
Stipulations
The Program will email confirmation of receipt of your forms submission, if possible. Even if
you do not receive emailed confirmation of receipt, you will receive an emailed “submission
receipt,” which will provide feedback on your submission. If the Program anticipates problems
in completing the review of your submission within the 20-business-day period, the Program will
send an interim email notifying you of the extended period for review.
Once the substitute forms have been approved by the Program, you can release them after the final
versions of the forms have been issued by the IRS. Before releasing the forms, you are responsible
for updating forms approved as draft and for making form changes requested.
The policy has the following stipulations.
• This 20-business-day policy applies to electronic submissions only. It does not apply to
substitute submissions mailed to the Program.
• The policy applies to submissions of 15 (optimal) or fewer items and submissions containing
75 pages or less. Submissions of more than 15 items may require additional review time.
• If you send a large number of submissions within a short period of time, processing may be
delayed.

Bulletin No. 2022–43 345 October 24, 2022
• Delays in processing could occur if the Program finds significant errors in your submission
or has experienced an increase in submissions. The Program will send you an interim email
in this case.
• Any anticipated problems in processing your submission within the 20-business-day period
will generate an interim email on or about the 15th business day.
• If any significant inaccuracies are discovered after the 20-business-day period, the Program
reserves the right to inform you and will require that changes be made to correct the
inaccuracies.
• The policy does not apply to substantially revised forms or to new forms created by the IRS
for which you have already made an initial submission.
Part 2
General Guidelines for Submissions and Approvals
Section 2.1 – General Specifications for Approval
2.1.1
Overview
If you produce any substitute tax forms that fully comply or follow the changes specifically outlined
by the Program, then you can generate your own substitute forms without further approval. Also,
if your substitutes have received approval in the past, and there are no substantial formatting
or text changes for the tax year, then changes can be made without additional approval. If your
changes are more extensive, you must get IRS approval before using substitute forms. More
extensive changes include different font style, decreasing or increasing the font size of caption
titles, adjusting or omitting format/layout elements, changing page orientation, and repositioning
line items, tables, and legends.
2.1.2
Email Submissions
The Program accepts submissions of substitute forms for review and approval via email. The
email address is substituteforms@irs.gov. Please include the term “PDF Submissions” on the
subject line.
Follow these guidelines.
• Email submission should include all the forms you wish to submit in one Portable Document
Format (PDF) file. Do not email or attach each form individually.
• The emailed submission should include a maximum of 3 PDFs to include a checksheet, a
cover letter or accompanying statement, and a single PDF that includes all of the forms listed
on your checksheet, cover letter, or accompanying statement.
• A submission should contain a maximum of 15 forms.
• An approval checksheet listing the forms you are submitting should always be included in
the PDF file along with the forms. Excluding the checksheet can slow the reviewing process
down, which can result in a delayed response to your submission. See a sample checksheet
in Exhibit B.
• Optimize PDF files before submitting.

October 24, 2022 346 Bulletin No. 2022–43
• The maximum allowable email attachment is 2.5 megabytes.
• The Program accepts zip files.
• To alleviate delays during the peak time of September through December, submit advance
draft forms as early as possible.
If the guidelines are not followed, you may need to resubmit.
Emailing PDF submissions will not expedite review and approval. Submitting your substitute
forms package via email is the preferred and suggested method for submitting forms for review. If,
for some reason, you are not able to email your submission(s), you can mail your submission(s) to:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP:TP
5000 Ellin Road, Mail Stop C-110
Lanham, MD 20706
2.1.3
Expediting the Pr
ocess
Follow these basic guidelines for expediting the process.
• Always include a checksheet for the Program’s response.
• Include an accompanying statement identifying most, if not all, of the deviations your
substitute forms may have from the official IRS versions.
• Follow the guidance in this publication for general substitute form guidelines. Follow the
guidance in specialized publications produced by the Program for other specific forms.
• To spread out the workload, send in draft versions of substitute forms when they are posted.
Note. Be sure to make any changes to approved drafts before releasing final versions.
2.1.4
Schedules
Some schedules are considered to be an integral part of a complete tax return and must be submitted
as part of the form. Other schedules may be submitted separately and do not need to be included
with the tax form.
2.1.5
Examples of Schedules
That
Must Be Submitted With
the Return
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is an example
of this situation. Its Schedules A through U have pages numbered as part of the basic return. For
Form 706 to be considered for approval, the entire form, including Schedules A through U, as well
as Schedule PC, must be submitted.
2.1.6
Examples of Schedules
That Can Be Submitted
Separately
Schedules C, D, and E for Form 1040 or 1040-SR are examples of schedules that can be submitted
separately. Although printed by the IRS as a supplement to Form 1040 or 1040-SR, these schedules
are not required to be submitted for approval with Form 1040 or 1040-SR. These schedules may
be separated from Form 1040 or 1040-SR and submitted as substitute forms.

Bulletin No. 2022–43 347 October 24, 2022
2.1.7
Use and Distribution of
Unapproved Forms
The IRS is continuing a program to identify and contact tax return preparers, forms developers,
and software publishers who use or distribute unapproved forms that do not conform to this
revenue procedure. The use of unapproved forms hinders the processing of the returns.
Section 2.2 – Highlights of Permitted Changes and Requirements
2.2.1
Methods of Reproducing
IRS Forms
There are methods of reproducing IRS printed tax forms suitable for use as substitutes without
prior approval.
• You can photocopy most tax forms and use them instead of the official ones. The entire
substitute form, including entries, must be legible.
• You can reproduce any current tax form as cut sheets, snap sets, and marginally punched, pin-
fed forms as long as you use an official IRS version as the master copy.
• You can reproduce a form that requires a signature as a valid substitute form. Many tax forms
(including returns) have a taxpayer signature requirement as part of the form layout. The jurat/
perjury statement/ signature line areas must be retained and worded exactly as on the official
form. The requirement for a signature, by itself, does not prohibit a tax form from being
properly computer generated.
Section 2.3 – Vouchers
2.3.1
Overview
All payment vouchers (Forms 940-V, 941-V, 943-V, 944-V, 945-V, 1040-ES, 1040-V, 1041-V,
and 2290-V) must be reproduced in conjunction with their forms. Substitute vouchers must be
the same size as the officially printed vouchers. Vouchers that are prepared for printing on a laser
printer may include a scan line.
2.3.2
Scan Line Specifications
NNNNNNNNNAAXXXXNNNNNNNNNNNN
Item:ABCDEF
G
A.Social Security Number/Employer Identification Number/Individual Taxpayer
Identification Number (SSN/EIN/ITIN) has 9 numeric (N) spaces.
B.Check Digits have 2 alpha (A) spaces.
C.Name Control has 4 alphanumeric (X) spaces.
D.
Master File Tax (MFT) Code has 2 numeric (N) spaces (see Section 2.3.3).
E.
Taxpayer Identification Number (TIN) Type has 1 numeric (N) space (see Section 2.3.4).
F.Tax Period has 6 numeric (N) spaces in year/month format (YYYYMM).
G.Transaction Code has 3 numeric (N) spaces.
2.3.3
MFT
Code
Code Number for Forms:
• 1040 (family) – 30,
• 940 – 10,
• 941 – 01,
• 943 – 11,

October 24, 2022 348 Bulletin No. 2022–43
• 944 – 14,
• 945 – 16,
• 1041-V – 05,
• 2290 – 60, and
• 4868 – 30.
Type Number for:
• Form 1040 (family) and Form 4868 – 0; and
• Forms 940, 941, 943, 944, 945, 1041-V, and 2290 – 2.
The voucher size must be exactly 8.0′′ x 3.25′′ (Forms 1040-ES and 1041-ES must be 7.625′′ x
3.0′′). The document scan line must be vertically positioned 0.25 inch from the bottom of the scan
line to the bottom of the voucher. The last character on the right of the scan line must be placed
3.5 inches from the right leading edge of the document. The minimum required horizontal clear
space between characters is 0.014 inch. The line to be scanned must have a clear band 0.25 inch
in height from top to bottom of the scan line, and from border to border of the document. “Clear
band” means no printing except for dropout ink.
Vouchers must be imaged in black ink using OCR A, OCR B, or Courier 10. These fonts may not
be mixed in the scan line. The horizontal character pitch is 10 CPI. The preferred paper weight is
20 to 24 pound OCR bond.
Certain vouchers may be reproduced for use in the IRS lockbox system. These include the 1040-
V, 1040-ES, 1041-V, the 94X family, and 2290 vouchers. Software developers must follow these
specific guidelines to produce scannable vouchers strictly for lockbox purposes. Also see Exhibit A.
• The total depth must be 3.25 inches.
• The scan line must be 0.5 inch from the bottom edge and 1.75 inches from the left edge of the
voucher and left justified.
• Software developers’ vouchers must be 8.5 inches wide (instead of 8 inches with a cut line).
Therefore, no vertical cut line is required.
• Scan line positioning must be exact.
• Do not use the over-the-counter format voucher and add the scan line to it.
• All scanned data must be in 12-point OCR A font.
• The 4-digit NACTP ID code or IRS source code should be placed under the payment indicator
arrow.
• Windowed envelopes must not display the scan line in order to avoid disclosure and privacy
issues.
2.3.4
TIN Type
2.3.5
Voucher Size
2.3.6
Print and Paper Weight
2.3.7
Specifications for Software
Developers

Bulletin No. 2022–43 349 October 24, 2022
Note. All software developers must ensure that their software uses OCR A font so taxpayers will
be able to print the vouchers in the correct font.
2.3.8
Specific Line Positions
Follow these line specifications for entering taxpayer data in the lockbox vouchers.
Start RowStart ColumnWidthEnd Column
Line Specifications for Taxpayer Data:
Taxpayer Name5663641
Taxpayer Address, Apt.5763641
Taxpayer City, State, ZIP5863641
Foreign Country Name5963641
Foreign Province/County6061722
Foreign Postal Code60261641
Line Specifications for Mail To Data:
Mail Name56433880
Mail Address57433880
Mail City, State, ZIP58433880
Line Specifications for:
Scan Line6326n/an/a
2.3.9
How
To Get Approval
To receive approval, the following procedures are in effect due to COVID-19.
Please send an approval sheet with each form type for IRS signature to Doris Bethea at
Doris.E.Bethea@irs.gov. You should include in the email an example of each type of voucher the
site will be testing. Note. Do not mail any test vouchers to Doris Bethea.
You are required to send 25 voucher samples of each form in PDF format. You should email the
test vouchers to raul.t.mariduena@jpmorgan.com. You can also print the vouchers and send them
to his mailing address at:
JP Morgan Chase
Attn: Raul Mariduena
830 Tyvola Road, Suite 114
Charlotte, NC 28217
To receive approval under regular circumstances, please send in 25 voucher samples yearly for
each form type or scenario, by December 8, 2022, for testing to the following address.
Internal Revenue Service
Attn: Doris Bethea, C5-226
5000 Ellin Road
Lanham, MD 20706
For further information, contact Doris Bethea at Doris.E.Bethea@irs.gov, or at 240-613-5922 (not
toll free); or Kathryn Wheelock at Kathryn.F.Wheelock@irs.gov, or at 816-499-4443 (not toll
free); or Dorothy Bazemore at Dorothy.B.Bazemore@irs.gov, or at 240-613-3351 (not toll free).

October 24, 2022 350 Bulletin No. 2022–43
Section 2.4 – Restrictions on Changes
2.4.1
What
You Cannot Do
to Forms Suitable for
Substitute Tax Forms
You cannot, without prior IRS approval, change any IRS tax form or use your own (nonapproved)
versions including graphics, unless specifically permitted by this revenue procedure. See Sections
2.5.7 through 2.5.11.
You cannot adjust any of the graphics on Form 1040 or 1040-SR (except in those areas specified
in Part 5 of this revenue procedure) without prior approval from the Program.
You cannot rearrange or redistribute data entry fields, and/or allow data entry fields to flow from
one page onto the next (that is, each page of a substitute form must contain the exact number of
data entry fields as there are on the official IRS form). The order of information on the substitute
form must be identical to the IRS version of the form. Publications for specific substitute forms
will state allowances for those respective forms.
Note. The 20-business-day turnaround policy may not apply to extensive changes.
Section 2.5 – Guidelines for Obtaining IRS Approval
2.5.1
Basic Requirements
Preparers who submit substitute privately designed, privately printed, computer-generated, or
computer-prepared tax forms must develop these substitutes using the guidelines established in
this part. These forms, unless there is an exception outlined by the revenue procedure, must be
approved by the IRS before being filed.
2.5.2
Conditional Approval
Based on Advance Drafts
The IRS cannot grant final approval of your substitute form until the official form has been
published. However, the IRS posts advance draft forms on its website at IRS.gov/DraftForms.
Submission of proposed substitutes of these advance draft forms is encouraged, and conditional
approval will be granted based solely on these early drafts. These advance drafts are subject to
significant change before forms are finalized. If these advance drafts are used as the basis for your
substitute forms, you will be responsible for subsequently updating your final forms to agree with
the final official version. These revisions need not be resubmitted for further approval.
Note. Approval of forms based on advance drafts will not be granted after the final version of an
official form is published.
2.5.3
Submission Procedures
Follow these general guidelines when submitting substitute forms for approval.
• Any alteration of forms must be within the limits acceptable to the IRS. It is possible that,
from one filing period to another, a change in law or a change in internal need (processing,
audit, compliance, etc.) may change the allowable limits for the alteration of the official form.
• When approval of any substitute form (other than those exceptions specified in Part 1, Section
1.2 – IRS Contacts) is requested, a sample of the proposed substitute form should be emailed
for consideration to the Program at the address shown in Section 1.2.1.

Bulletin No. 2022–43 351 October 24, 2022
• Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more than
one type of return (for example, Forms 1040, 1040-SR, 1041, 1120, etc.) should be submitted
only once for approval, without regard to the number of different tax returns with which they
may be associated. Also, all pages of multi-page forms or returns should be submitted in the
same package.
2.5.4
Appr
oving Offices
Because only the Program is authorized to approve substitute forms, unnecessary delays may
occur if forms are sent to the wrong office. You may receive an interim letter about the delay.
The Program may then coordinate the response with the originator responsible for revising that
particular form. Such coordination may include allowing the originator to officially approve the
form. No IRS office is authorized to allow deviations from this revenue procedure.
2.5.5
IRS Review of Software
Programs, etc.
The IRS does not review or approve the logic of specific software programs, nor does the IRS
confirm the calculations on the forms produced by these programs. The accuracy of the program
remains the responsibility of the software package developer, distributor, or user.
The Program is primarily concerned with the pre-filing quality review of the final forms that are
expected to be processed by IRS field offices. For this purpose, you should submit forms without
including any taxpayer information such as names, addresses, monetary amounts, etc.
If the software used is programmed to produce copies with populated fields, then you must use
dummy information. This will allow the Program to review and provide feedback or approval.
Vendors should use “0” for all number values and “X” for any information that requires alpha
characters.
2.5.6
When To Send Proposed
Substitutes
Proposed substitutes, which are required to be submitted per this revenue procedure, should be
sent as much in advance of the filing period as possible. This is to allow adequate time for analysis
and response.
2.5.7
Accompanying Statement
When submitting sample substitutes, you should include an accompanying statement that lists
each form number and its changes from the official form (position, arrangement, appearance, line
numbers, additions, deletions, etc.). With each of the items, you should include a detailed reason
for the change.
When requesting approval, please include a checksheet. Checksheets expedite the approval
process. The checksheet may look like the example in Exhibit B displayed in the back of this
procedure or may be one of your own design.
Please include your email address on the checksheet.
2.5.8
Approval/ Nonapproval
Notice
The Program will email the checksheet or an approval letter to the originator, unless:
• The requester has asked for a formal letter, or
• Significant corrections to the submitted forms are required.

October 24, 2022 352 Bulletin No. 2022–43
Notice of approval may impose qualifications before using the substitutes. Notices of unapproved
forms may specify the changes required for approval and require resubmission of the form(s) in
question. When appropriate, you will be contacted by telephone.
2.5.9
Duration
of Approval
Most signature tax returns and many of their schedules and related forms have the tax year printed
in the upper right corner. Approvals for these annual forms are usually good for 1 calendar year
(January through December of the year of filing). Quarterly tax forms in the 94X series and Form
720 require approval for any quarter in which the form has been revised.
Because changes are usually made to an annual form every year, each new filing season generally
requires a new submission of a substitute form. Very rarely is updating the preprinted year the only
change made to an annual form. However, if no significant content, formatting, or layout changes
were made to a tax form, then review and approval received for the prior tax year can be carried
over into the current tax year.
2.5.10
Limited Continued Use of
an Approved Change
Limited changes approved for one tax year may be allowed for the same form in the following
tax year. Examples are the use of abbreviated words, revised form spacing, compressed text lines,
shortened captions, etc., which do not change the integrity of lines or text on the official forms.
If the vendor or filer makes substantial changes to the form, new substitutes must be submitted
for approval. If the vendor or filer makes only minor editorial changes to the form, or makes any
changes that mirror changes the IRS makes to the form’s official version, the new substitute does
not need to be submitted for approval. It is the responsibility of each vendor who has been granted
permission to produce substitute forms to monitor and revise forms to mirror any revisions to the
official forms made by the IRS. If there are any questions, please contact the Program.
2.5.11
When Approval Is Not
Required
If you received approval for a specific change on a form last year, you may make the same change
this year if the item is still present on the official form.
• The new substitute form does not have to be submitted to the IRS and approval based on that
change is not required.
• However, the new substitute form must conform to the official current year IRS form in
other respects, such as date, Office of Management and Budget (OMB) approval number,
attachment sequence number, Paperwork Reduction Act Notice statement, arrangement, item
caption, line number, line reference, data sequence, etc.
• The new substitute form must also comply with changes to the guidelines in this revenue
procedure. The procedure may have eliminated, added to, or otherwise changed the guideline(s)
that affected the change approved in the prior year.
• An approved change is authorized only for the period from a prior tax year substitute form to
a current tax year substitute form.
Exception. Forms with temporary, limited, or interim approvals (or with approvals that state a
change is not allowed in any other tax year) are subject to review in subsequent years.
2.5.12
Requir
ed Copies
Generally, you must send us one copy of each form being submitted for approval. However, if
you are producing forms for different computer platforms (for example, Microsoft vs. Apple),

Bulletin No. 2022–43 353 October 24, 2022
different tax preparation software (for example, TurboTax® vs. TaxSlayer®), or different types
of printers (for example, inkjet vs. impact), and these forms differ significantly in appearance,
submit one copy for each type of platform, tax preparation software, or printer.
2.5.13
Requestor
’s Responsibility
Following receipt of an initial approval for a substitute forms package or a software output
program to print substitute forms, it is the responsibility of the originator (designer or distributor)
to provide client firms or individuals with forms that meet the IRS’s requirements for continuing
acceptability. Examples of this responsibility include:
• Using the prescribed print paper, font size, legibility, state tax data deletion, etc.; and
• Informing all users of substitute forms of the legal requirements of the Paperwork Reduction
Act Notice, which is generally found in the instructions for the official IRS forms.
2.5.14
Sour
ce Code
The Program will assign a unique source code to each firm that submits substitute forms for
approval. This source code will be a permanent identifier that must be used on every submission
by a particular firm.
The source code consists of three alpha characters and should generally be printed under or to the
left of the “Paperwork Reduction Act” statement. Vendors must ensure that the source code is not
printed too close to or within the left or bottom 0.5 inch margin to avoid the source code from
being cut off during printing.
Section 2.6 – Office of Management and Budget (OMB) Requirements for All Substitute Forms
2.6.1
OMB
Requirements for All
Substitute Forms
There are legal requirements of the Paperwork Reduction Act of 1995 (the Act). Public Law 104-
13 requires the following.
• OMB approves all IRS tax forms that are subject to the Act.
• Each IRS form contains (in the upper right corner) the OMB number, if assigned.
• Each IRS form (or its instructions) states why the IRS needs the information, how it will be
used, and whether or not the information is required to be furnished to the IRS.
This information must be provided to every user of official or substitute IRS forms or instructions.
2.6.2
Application of the
Paperwork
Reduction Act
On forms that have been assigned OMB numbers:
• All substitute forms must contain in the upper right corner the OMB number that is on the
official form, and
• The required format is: OMB No. 1545-XXXX (preferred) or OMB # 1545-XXXX
(acceptable).

October 24, 2022 354 Bulletin No. 2022–43
2.6.3
Required Explanation to
Users
You must inform the users of your substitute forms of the IRS use and collection requirements
stated in the instructions for official IRS forms.
• If you provide your users or customers with the official IRS instructions, each form must
retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork
Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the
lower left corner of the forms).
• This notice reads, in part, “We ask for tax return information to carry out the tax laws of the
United States. ”
Note. If no IRS instructions are provided to users of your forms, the exact text of the Paperwork
Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice) must be
furnished separately or on the form.
2.6.4
Finding the OMB Number

and Paperwork Reduction
Act Notice
The OMB number and the Paperwork Reduction Act Notice, or references to it, may be found
printed on an official form (or its instructions). The number and the notice are included on the
official paper format and in other formats produced by the IRS.
Part 3
Physical Aspects and Requirements
Section 3.1 – General Guidelines for Substitute Forms
3.1.1
General Information
The official form is the standard. Because a substitute form is a variation from the official form,
you should know the requirements of the official form for the year of use before you modify it to
meet your needs. To obtain the most frequently used tax forms, visit IRS.gov/Forms.
3.1.2
Design
Each form must follow the design of the official form as to format arrangement, item caption, line
numbers, line references, and sequence.
3.1.3
State Tax Information
Prohibited
Generally, state tax information must not appear on the federal tax return, associated form, or
schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or required by,
the federal return (for example, state and local income taxes on Schedule A (Form 1040)).
IF a form is to be...THEN...
manually prepared and the official
IRS form still has a separate cents
entry field
1.the entry column must have a vertical line or
some type of indicator in the amount field to
separate dollars from cents, and
2.the cents column must be at least 0.3 inch wide.
computer generated1.vertically align the amount entry fields where
possible, and
2.use one of the following amount formats.
a) 0,000,000.
b) 0,000,000.00.
3.1.4
Vertical Alignment of
Amount Fields

Bulletin No. 2022–43 355 October 24, 2022
3.1.4
Vertical Alignment of
Amount Fields
IF a form is to be...THEN...
computer prepared1.you may remove the vertical line in the amount
field that separates dollars from cents, and
2.use one of the following amount formats.
a) 0,000,000.
b) 0,000,000.00.
3.1.5
Attachment Sequence
Number
Many individual income tax forms have a required “attachment sequence number” located just
below the year designation in the upper right corner of the form. The IRS uses this number to
indicate the order in which forms are to be attached to the tax return for processing. Some of the
attachment sequence numbers may change from year to year.
The following apply to computer-prepared forms.
• The sequence number may be printed in no less than 12-point boldface type and centered
below the form’s year designation.
• The sequence number may also be placed following the year designation for the tax form and
separated with an asterisk.
• The actual number may be printed without labeling it the “Attachment Sequence Number.”
3.1.6
Assembly of Forms
When developing software or forms for use by others, please inform your customers/clients that
the order in which the forms are arranged may affect the processing of the package. A return must
be arranged in the order indicated below.
IF the form is...THEN the sequence is...
1040 or 1040-SRForm 1040 or 1040-SR, and schedules and forms in attachment
sequence number order.
any other tax return
(Form 1120, 1120-S,
1065, 1041, etc.)
the tax returns, directly associated schedules (Schedule D, etc.),
directly associated forms, additional schedules in alphabetical
order, and additional forms in numerical order.
Supporting statements should then follow in the same sequence as the forms they support.
Additional information required should be attached last.
In this way, the forms are received in the order in which they must be processed. If you do not send
returns to the IRS in order, processing may be delayed.
3.1.7
Paid Pr
eparer’s
Information and Signature
Area
On Forms 1040, 1040-SR, and 1120, and any other applicable tax forms, the “Paid Preparer Use
Only” area may not be rearranged or relocated. You may, however, add three extra lines to the
paid preparer’s address area, and remove the horizontal rules in that area without prior approval.
3.1.8
Some Common Reasons
for Requiring Changes to
Substitute Forms
Some reasons that substitute form submissions may require changes include the following.
• Shading areas incorrectly.
You must inform the users of your substitute forms of the IRS use and collection requirements
stated in the instructions for official IRS forms.
• If you provide your users or customers with the official IRS instructions, each form must
retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork
Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the
lower left corner of the forms).
• This notice reads, in part, “We ask for tax return information to carry out the tax laws of the
United States. ”
Note. If no IRS instructions are provided to users of your forms, the exact text of the Paperwork
Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice) must be
furnished separately or on the form.
The OMB number and the Paperwork Reduction Act Notice, or references to it, may be found
printed on an official form (or its instructions). The number and the notice are included on the
official paper format and in other formats produced by the IRS.
Part 3
Physical Aspects and Requirements
Section 3.1 – General Guidelines for Substitute Forms
The official form is the standard. Because a substitute form is a variation from the official form,
you should know the requirements of the official form for the year of use before you modify it to
meet your needs. To obtain the most frequently used tax forms, visit IRS.gov/Forms.
Each form must follow the design of the official form as to format arrangement, item caption, line
numbers, line references, and sequence.
Generally, state tax information must not appear on the federal tax return, associated form, or
schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or required by,
the federal return (for example, state and local income taxes on Schedule A (Form 1040)).
IF a form is to be...THEN...
manually prepared and the official
IRS form still has a separate cents
entry field
1.the entry column must have a vertical line or
some type of indicator in the amount field to
separate dollars from cents, and
2.the cents column must be at least 0.3 inch wide.
computer generated1.vertically align the amount entry fields where
possible, and
2.use one of the following amount formats.
a) 0,000,000.
b) 0,000,000.00.
2.6.3
Requir
ed Explanation to
Users
2.6.4
Finding the OMB Number
and Paperwork Reduction
Act Notice
3.1.1
General Information
3.1.2
Design
3.1.3
State T
ax Information
Prohibited

October 24, 2022 356 Bulletin No. 2022–43
• Failing to include a reference to the location of the Paperwork Reduction Act Notice.
• Not including parentheses for losses.
• Not including “Attach Statement” when appropriate.
• Including line references or entry spaces that do not match the official form.
• Printing text that is different from the official form.
• Altering the jurat (perjury statement).
• Having an incorrect OMB number.
• Including the IRS catalog number (Cat. No.) on the form.
• Failing to include preprinted amounts in entry fields.
• Missing IRS source code or NACTP software ID.
• Missing 3-letter FFF code on paper Form 1040 from tax software companies that participate
in the IRS Free File Program.
• Incorrect dimensions.
Section 3.2 – Paper
3.2.1
Paper
Content
The paper must be:
• Chemical wood writing paper that is equal to or better than the quality used for the official
form,
• At least 18 pound (17′′ x 22′′, 500 sheets), or
• At least 50 pound offset book (25′′ x 38′′, 500 sheets).
3.2.2
Paper
With Chemical
Transfer Properties
There are several kinds of paper prohibited for substitute forms. These are:
1. Carbon-bonded paper, and
2. Chemical transfer paper except when the following specifications are met.
a. Each ply within the chemical transfer set of forms must be labeled.
b. Only the top ply (ply one and white in color), the one that contains chemical on the back
only (coated back), may be filed with the IRS.
Example. A set containing three plies would be constructed as follows: ply one (coated back),
“Federal Return, File with IRS”; ply two (coated front and back), “Taxpayer’s copy”; and ply
three (coated front), “Preparer’s copy.”

Bulletin No. 2022–43 357 October 24, 2022
The file designation, “Federal Return, File with IRS” for ply one, must be printed in the bottom
right margin (just below the last line of the form) in 12-point boldface type.
It is not mandatory, but recommended, that the file designation “Federal Return, File with IRS” be
printed in a contrasting ink for visual emphasis.
3.2.3
Paper
and Ink Color
It is preferred that the color and opacity of paper substantially duplicate that of the original form.
This means that your substitute must be printed in black ink and may be on white paper or on the
colored paper the IRS form is printed on. Form 1040 or 1040-SR substitute reproductions may be
in black ink without the colored shading. The only exception to this rule is Form 1041-ES, which
should be printed with a PMS 100 yellow shading in the color screened area. This is necessary to
assist us in expeditiously separating this form from the very similar Form 1040-ES.
3.2.4
Page Size
Substitute or reproduced forms and computer-prepared/-generated substitutes may be the same
size as the official form or they may be the standard commercial size (8.5′′ x 11′′). The thickness
of the stock cannot be less than 0.003 inch.
Section 3.3 – Printing
3.3.1
Printing Medium
The private printing of all substitute tax forms must be by conventional printing processes,
photocopying, computer graphics, or similar reproduction processes.
3.3.2
Legibility
All forms must have a high standard of legibility as to printing, reproduction, and fill-in matter.
Entries of taxpayer data may be no smaller than 8 points. The IRS reserves the right to reject those
with poor legibility. The ink and printing method used must ensure that no part of a form (including
text, graphics, data entries, etc.) develops “smears” or similar quality deterioration. This standard
must be followed for any subsequent copies or reproductions made from an approved master
substitute form, either during preparation or during IRS processing.
3.3.3
Type Font
Many federal tax forms are printed using Helvetica as the basic type font. It is preferred that you
use this type font when composing substitute forms.
3.3.4
Print Spacing
Substitute forms should be printed using a 6 lines/inch vertical print option. They should also be
printed horizontally in 10-pitch pica (that is, 10 print characters per inch) or 12-pitch elite (that is,
12 print positions per inch).
3.3.5
Image Size
The image size of a printed substitute form should be as close as possible to that of the official
form. You may omit any text on both computer-prepared and computer-generated forms that is
solely instructional.

October 24, 2022 358 Bulletin No. 2022–43
3.3.6
Title Area Changes
To allow a large top margin for marginal printing and more lines per page, the title line(s) for all
substitute forms (not including the form’s year designation and sequence number, when present)
may be photographically reduced by 40% or reset as one line of type. When reset as one line, the
type size may be no smaller than 14 points. You may omit “Department of the Treasury—Internal
Revenue Service” and all references to instructions in the form’s title area.
3.3.7
Remove Government
Printing Office Symbol and
IRS Catalog Number
When privately printing substitute tax forms, the Government Printing Office (GPO) symbol
and/or jacket number must be removed. In the same place using the same type size, print the
employer identification number (EIN) of the printer or designer or the IRS-assigned source code.
(Preferably, this last number should be printed in the lower left area of the first page of each form.)
Also, remove the IRS catalog number (Cat. No.) and the recycle symbol if the substitute is not
produced on recycled paper.
3.3.8
Printing Single- Page
Forms
Substitute single-page forms should be reproduced the same as IRS single-page forms. Other
forms or schedules should not be printed on the back or on blank portions of a single-page form.
However, printing instructions on the back or on blank portions of a single-page form is acceptable.
3.3.9
Photocopy Equipment
The IRS does not undertake to approve or disapprove the specific equipment or process used in
reproducing official forms. Photocopies of forms must be entirely legible and satisfy the conditions
stated in this and other revenue procedures.
3.3.10
Reproductions
Reproductions of official forms and substitute forms that do not meet the requirements of this
revenue procedure may not be filed instead of the official forms. Illegible photocopies are subject
to being returned to the filer for resubmission of legible copies.
3.3.11
Removal of Instructions
Generally, you may remove references to instructions. No prior approval is needed. However, in
some instances, you may be requested to include references to instructions.
Exception. The words “For Paperwork Reduction Act Notice, see instructions” must be retained,
or a similar statement indicating the location of the Notice must be provided on each form.
Section 3.4 – Margins
3.4.1
Margin Size
The format of a reproduced tax form when printed on the page must have margins on all sides at
least as large as the margins on the official form. This allows room for IRS employees to make
necessary entries on the form during processing.
• A 0.5 inch to 0.25 inch margin must be maintained across the top, bottom, and both sides of
all substitute forms.
• The marginal, perforated strips containing pin-fed holes must be removed from all forms prior
to filing with the IRS.

Bulletin No. 2022–43 359 October 24, 2022
3.4.2
Marginal Printing
Prior approval is not required for the marginal printing allowed when printed on an official form
or on a photocopy of an official form.
• With the exception of the actual tax return forms (for example, Forms 1040, 1040-SR, 1120,
940, 941, etc.), you may print in the left vertical margin and in the left half of the bottom
margin.
• Printing is never allowed in the top right margin of the tax return form (for example, Forms
1040, 1040-SR, 1120, 940, 941, etc.). The IRS uses this area to imprint a Document Locator
Number for each return. There are no exceptions to this requirement.
Section 3.5 – Miscellaneous Information for Substitute Forms
3.5.1
Filing Substitute Forms
To be acceptable for filing, a substitute form must print out in a format that will allow the filer to
follow the same instructions that accompany official forms.
The form must be legible, must be on the appropriately sized paper, and must include a jurat
(perjury statement) where one appears on the published form.
3.5.2
Caution to Softwar
e
Publishers
The IRS has received returns produced by software packages with approved output where either
the form heading was altered or the lines were spaced irregularly. This produces an illegible or
unrecognizable return or a return with the wrong number of pages. While many of these problems
are caused by individual printer differences, they may delay input of return data and, in some
cases, generate correspondence to the taxpayer. Therefore, in the instructions to the purchasers of
your product, both individual and professional, please stress that their returns will be processed
more efficiently if they are properly formatted. This includes:
• Having the correct form numbers, six-digit form identifying numbers, and titles at the top of
the return; and
• Submitting the same number of pages as if the form were an official IRS form with the line
items on the proper pages.
3.5.3
Caution to Pr
oducers of
Software Packages
If you are producing a software package that generates name and address data onto the tax return,
do not, under any circumstances, program either the IRS preprinted check digits or a practitioner-
derived name control to appear on any return prepared and filed with the IRS.
3.5.4
Programming to Print
Forms
Whenever applicable:
• Use only the following label information format for single filers: JOHN Q. DOE 000 OAK
DRIVE HOMETOWN, STATE 00000
• Use only the following label information format for joint filers: JOHN Q. DOE MARY Q.
DOE 000 OAK DRIVE HOMETOWN, STATE 00000
• Use “0” for number values and “X” for alpha characters entered in data entry fields as dummy
copy.

October 24, 2022 360 Bulletin No. 2022–43
Part 4
Additional Resources
Section 4.1 – Guidance From Other Revenue Procedures
4.1.1
General
The IRS publications listed below provide guidance for substitute tax forms not covered in this
revenue procedure. These publications are available on the IRS website. Use the publication
number listed below to search for the requested document.
• Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.
• Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498,
and Certain Other Information Returns.
• Pub. 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.
• Pub. 4436, General Rules and Specifications for Substitute Form 941, Schedule B (Form 941),
Schedule D (Form 941), Schedule R (Form 941), and Form 8974.
• Pub. 5223, General Rules and Specifications for Affordable Care Act Substitute Forms 1095-
A, 1094-B, 1095-B, 1094-C, and 1095-C.
Section 4.2 – Electronic Tax Products
4.2.1
The
IRS Website
Copies of tax forms, their instructions, publications, fillable forms, and prior year forms and
publications may be found on the IRS website at IRS.gov/Forms.
Draft forms and instructions may be found at IRS.gov/DraftForms.
Other tax-related information may be found at IRS.gov.
4.2.2
System Requirements
and Ordering Forms and
Instructions
For system requirements, contact the National Technical Information Service (NTIS) at NTIS.gov.
Prices are subject to change.
You can order IRS forms and other tax material at IRS.gov/OrderForms.
Part 5
Requirements for Specific Tax Returns
Section 5.1 – Tax Returns (Forms 1040, 1040-SR, 1120, etc.)
5.1.1
Acceptable Forms
Tax return forms (such as Forms 1040, 1040-SR, and 1120) require a signature and establish tax
liability. Computer-generated versions are acceptable under the following conditions.

Bulletin No. 2022–43 361 October 24, 2022
• These substitute forms must be printed on plain white paper.
• Substitute forms must conform to the physical layout of the corresponding IRS form although
the typeface may differ. The text should match the text on the officially published form as
closely as possible. Condensed text and abbreviations will be considered on a case-by-case
basis. Caution. All jurats (perjury statements) must be reproduced verbatim. No text can be
added, deleted, or changed in meaning.
• Various computer graphic print media such as laser printing, inkjet printing, etc., may be used
to produce the substitute forms.
• The substitute form must be the same number of pages and contain the same text on the lines
as the official form.
• All substitute forms must be submitted for approval prior to their original use. You do not need
approval for a substitute form if its only change is the preprinted year and you had received a
prior year approval letter. Exception. If the approval letter specifies a one-time exception for
your form, the next year’s form must be approved.
5.1.2
Pr
ohibited Forms
The following are prohibited.
• Computer-generated tax forms (for example, Form 1040, 1040-SR, etc.) on lined or color-
barred paper.
• Tax forms that differ from the official IRS forms in a manner that makes them nonstandard or
unable to process.
5.1.3
Changes Permitted to Form
1040
Certain changes (listed in Section 5.2) are permitted to the graphics of the form without prior
approval, but these changes apply to only acceptable preprinted forms. Changes not requiring
prior approval are good only for the annual filing period, which is the current tax year. Such
changes are valid in subsequent years only if the official form does not change.
5.1.4
Other
Changes Not Listed
All changes not listed in Section 5.2 require approval from the IRS before the form can be filed.
Section 5.2 – Changes Permitted to Graphics (Form 1040 or 1040-SR)
5.2.1
Adjustments
You may make minor vertical and horizontal spacing adjustments to allow for computer or
word processing printing. This includes widening the amount columns or tax entry areas if the
adjustments comply with other provisions stated in revenue procedures. No prior approval is
needed for these changes.
Schedules 1–3 cannot be combined for filing purposes. For the client copy of the return, the
numbered schedules may be printed two to a page (for example, Schedule 3 below Schedule 2, if
both are completed as part of the return). If numbered schedules are combined on the client copy,
it must include a statement that it is “Not for Filing.”

October 24, 2022 362 Bulletin No. 2022–43
5.2.2
Name and Address Area
The horizontal rules and instructions within the name and address area may be removed and the
entire area left blank. No line or instruction can remain in the area. The heavy-ruled border (when
present) that outlines the name, address area, and SSN must not be removed, relocated, expanded,
or contracted.
5.2.3
Required Format
When the name and address area is left blank, the following format must be used when printing
the taxpayer’s name and address.
• 1st name line (35 characters maximum).
• 2nd name line (35 characters maximum).
• In-care-of name line (35 characters maximum).
• City, state (25 characters maximum), one blank character, and ZIP code.
5.2.4
Conventional Name and
Addr
ess Data
When there is no in-care-of name line, the name and address will consist of only three lines (single
filer) or four lines (joint filer).
Example of joint filer.
Name and address (joint filer) with no in-care-of name line:
JOHN Q. DOE
MARY Q. DOE
000 ANYWHERE ST., APT. 000
ANYTOWN, STATE 00000
Example of in-care-of name line. Name and address (single filer) with in-care-of name
line:
JOHN Q. DOE
C/O JOHN R. DOE
0000 SOMEWHERE AVE.
SAMETOWN, STATE 00000
5.2.5
SSN and EIN
Area
The broken vertical lines separating the format arrangement of the SSN/EIN may be removed.
When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 or
00-0000000, respectively.
5.2.6
Entering Cents
• You may remove the vertical rule that separates the dollars from the cents if it is still included
on the official IRS form.
• All entries in the amount column should have a decimal point following the whole dollar
amounts whether or not the vertical line that separates the dollars from the cents is present.
• You may omit printing the cents, but all amounts entered on the form must follow a consistent
format. You are strongly urged to round off the figures to whole dollar amounts, following the
official form instructions.

Bulletin No. 2022–43 363 October 24, 2022
• When several amounts are added together, the total should be rounded off after addition (that
is, individual amounts should not be rounded off for computation purposes).
• When printing money amounts, you must use one of the following formats: (a) 0,000,000; or
(b) 0,000,000.00.
• When there is no entry for a line, leave the line blank.
5.2.7
Changes to Lines
No prior approval is needed for the following changes (for use with computer-prepared forms
only). Specific line numbers in the following headings may have changed due to tax law changes.
5.2.8
Dependents on Form 1040
The vertical lines separating columns (1) through (4) may be removed. The captions may be
shortened to allow a one-line caption for each column.
5.2.9
Other
Lines
Any other line with text that takes up two or more vertical lines may be compressed to one line by
using contractions, etc., and by removing instructional references.
5.2.10
Form 1040 – Tax
You may change the line caption to read “Tax” and computer print the words “Total includes tax
from” and either “Form(s) 8814” or “Form 4972” or “962 election.” If both forms are used, print
both form numbers. This specific line number may have changed.
5.2.11
Color Screening
It is not necessary to duplicate the color screening used on the official form. A substitute Form
1040 or 1040-SR may be printed in black and white only with no color screening.
5.2.12
Other Changes Prohibited
No other changes to the Form 1040 or 1040-SR graphics are permitted without prior approval
except for the removal of instructions and references to instructions.
Part 6
Format and Content of Substitute Returns
Section 6.1 – Acceptable Formats for Substitute Forms and Schedules
6.1.1
Exhibits and Use of
Acceptable Formats
Exhibit A is an acceptable format for Form 1040-ES.
• If your computer-generated Form 1040-ES appears exactly like Exhibit A, no prior
authorization is needed.
• You may computer-generate forms not shown here, but you must design them by following
the manner and style discussed in Part 3.

October 24, 2022 364 Bulletin No. 2022–43
• Take care to observe the other requirements and conditions in this revenue procedure. The IRS
encourages the submission of all proposed forms covered by this revenue procedure.
6.1.2
Instructions
The format of each substitute form or schedule must follow the format of the official form or
schedule as to item captions, line references, line numbers, sequence, form arrangement and format,
etc. Basically, try to make the form look like the official one, with readability and consistency
being primary factors. You may use periods and/or other similar special characters to separate the
various parts and sections of the form. Do not use alpha or numeric characters for these purposes.
All line numbers and items must be printed even though an amount is not entered on the line.
6.1.3
Line Numbers
When a line on an official form is designated by a number or a letter, that designation (reference code)
must be used on a substitute form. The reference code must be printed to the left of the text of each
line and immediately preceding the data entry field, even if no reference code precedes the data entry
field on the official form. If an entry field contains multiple lines and shows the line references once
on the left and right side of the form, use the same number of line references on the substitute form.
In addition, the reference code that is immediately before the data field must either be followed
by a period or enclosed in parentheses. There must also be at least two blank spaces between the
period or the right parenthesis and the first digit of the data field. (See Section 6.1.4.)
6.1.4
Decimal Points
A decimal point (a period) should be used for each money amount regardless of whether the amount
is reported in dollars and cents or in whole dollars, or whether or not the vertical line that separates
the dollars from the cents is present. The decimal points must be vertically aligned when possible.
Example.
5 State and local taxes
a State and local income taxes.....................5a.000.00
b State and local real estate taxes................5b.
c State and local personal property taxes....5c.000.00
or
a State and local income taxes.....................(5a)000.00
b State and local real estate taxes................(5b)
c State and local personal property taxes....(5c)000.00
6.1.5
Multi-Page Forms
When submitting a multi-page form, send all its pages in the same package. If you will not be
producing certain pages, please note that in your cover letter.
Section 6.2 – Additional Instructions for All Forms
6.2.1
Use of
Your Own Internal
Control Numbers and
Identifying Symbols
You may show the computer-prepared internal control numbers and identifying symbols on the
substitute if using such numbers or symbols is acceptable to the taxpayer and the taxpayer’s
representative. Such information must not be printed in the top 0.5 inch clear area of any form or
schedule requiring a signature.

Bulletin No. 2022–43 365 October 24, 2022
Except for the actual tax return form (Forms 1040, 1040-SR, 1120, 940, 941, etc.), you may print
in the left vertical and bottom left margins. The bottom left margin you may use extends 3.5 inches
from the left edge of the form. You may print internal control numbers in place of the removed
IRS catalog number.
6.2.2
Requir
ed Software ID
Number (Source Code)
on Computer- Prepared
Substitutes
In the February 2009 Government Accountability Office (GAO) report, “Many Taxpayers Rely on
Tax Software and IRS Needs to Assess Associated Risks” (GAO-09-297), the GAO recommended
that the IRS require a software identification number on all individual returns to specifically
identify the software package used to prepare each tax return. The IRS already has this capability
for all e-filed returns. In addition, many tax preparation software firms already print an IRS-
issued 3-letter source code on paper returns that are generated by their individual tax software.
This source code was assigned when the firms were seeking substitute forms approval under this
current publication.
In order to follow this GAO recommendation, the IRS will require that all tax preparation software
firms include the 3-letter source code on all paper tax returns created by their individual tax
preparation software. The many firms that currently have and display their source code on paper
returns generated from their software should continue to do so, and no change is necessary.
We have reviewed all software companies that passed Assurance Testing System (ATS) testing
last filing season and have determined that some firms do not currently have a source code. To
save you the burden of contacting us and for your convenience, we have assigned source codes
to those firms.
You should program your source code to be placed in the bottom left-hand corner of page one of
each paper form that will be generated by your individual tax return package. You do not need to
apply for a new source code annually.
If you already use a 3-letter source code and we have issued you one in error, you are unsure if
you were ever issued one, or have other questions or concerns, you may contact Tax Forms and
Publications Special Services Section at substituteforms@irs.gov.
The IRS requires tax preparation software firms that participate in the IRS Free File Program
include the 3-letter FFF code on all paper Form 1040 returns created by their individual tax
preparation software.
If you participate in the IRS Free File Program, you should program the 3-letter FFF code to
be placed in the bottom left-hand corner of the first page of each paper Form 1040 that will be
generated by your individual tax return package. The 3-letter FFF code and the 3-letter source
code should be placed next to each other for consistency. If placing the 3-letter FFF code and the
3-letter source code next to each other is not possible, then above or below will be acceptable.
Example. The 3-letter FFF code and the 3-letter source code could be BCA-FFF or BCA FFF. A
dash or a space is needed to separate the 3-letter FFF code and the 3-letter source code.
6.2.3
Descriptions for Captions,
Lines, etc.
Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one print
line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However,
sufficient keywords must be retained to permit ready identification of the caption, line, or item.
6.2.4
Determining Final Totals
Explanatory detail and/or intermediate calculations for determining final line totals may be
included on the substitute. Preferably, such calculations should be submitted in the form of a

October 24, 2022 366 Bulletin No. 2022–43
supporting statement. If intermediate calculations are included on the substitute, the line on which
they appear may not be numbered or lettered. Intermediate calculations may not be printed in the
right column.
This column is reserved only for official numbered and lettered lines that correspond to the ones on
the official form. Generally, you may choose the format for intermediate calculations or subtotals
on supporting statements to be submitted.
6.2.5
Instructional
Text on the
Official Form
Text on the official form, which is solely instructional (for example, “See instructions,” etc.), may
generally be omitted from the substitute form.
6.2.6
Intermingling Is Prohibited
Showing more than one form or schedule on the same printout page is prohibited. Both sides of
the paper may be used for multi-page forms, but it is unacceptable to intermingle forms.
For instance, Schedule E can be printed on both sides of the paper because the official form is
multi-page, with page 2 continued on the back. However, do not print Schedule E on the front
page and Schedule SE on the back page, or Schedule A on the front and Form 8615 on the back,
etc. Both pages of a substitute form must match the official form. The back page may be left blank
if the back page of the official form contains only the instructions.
6.2.7
Identifying Substitutes
Identify all computer-prepared substitutes clearly. Print the form designation 0.5 inch from the top
margin and 1.5 inches from the left margin. Print the title centered on the first line of print. Print
the tax year and, where applicable, the sequence number on the same line 0.5 inch to 1 inch from
the right margin.
Include the taxpayer’s name and SSN on all forms and attachments. Also, print the OMB number
as reflected on the official form.
6.2.8
Negative Amounts
Negative (or loss) amount entries should be enclosed in brackets or parentheses or include a minus
sign. This assists in accurate computation and input of form data. The IRS preprints parentheses
in negative data fields on many official forms. These parentheses should be retained or inserted on
printouts of affected substitute forms.
Part 7
Miscellaneous Forms and Programs
Section 7.1 – Specifications for Substitute Schedules K-1
7.1.1
Requirements for Schedules
K-1 That Accompany
Forms 1041, 1065, and
1120-S
Because of significant changes to improve processing, prior approval is now required for substitute
Schedules K-1 that accompany Form 1041 (for estates and trusts), Form 1065 (for partnerships),
or Form 1120-S (for S corporations). Substitute Schedules K-1 should be as close as possible to
exact replicas of copies of the official IRS schedules and follow the same process for submitting
other substitute forms and schedules. Before releasing their substitute forms, software vendors are
responsible for making any subsequent changes that have been made to the final official IRS forms
after the draft forms have been posted.

Bulletin No. 2022–43 367 October 24, 2022
Submit substitute Schedule K-1 forms, in PDF format, to scrips@irs.gov for scannability
acceptance. Schedule K-1 forms that require testing do not need to be mailed to the Program. You
must include information on the substitute that can be tested. This information should be dummy
information. Use an “X” for alpha characters and “0” for numbers. The IRS will review and
provide feedback of any changes needed so that your forms can be recognized correctly.
Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and
1120-S. Please allow at least 0.25 inch of white space around the 6-digit code.
• 661117 for Form 1041.
• 651121 for Form 1065.
• 671121 for Form 1120-S.
Schedules K-1 that accompany Forms 1041, 1065, or 1120-S must meet all specifications. The
specifications include, but are not limited to, the following requirements.
• You will no longer be able to produce Schedules K-1 that contain only those lines or boxes
that taxpayers are required to use. All lines must be included.
• The words “*See attached statement for additional information.” must be preprinted in the
lower right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120-S.
• All Schedules K-1 that are filed with the IRS should be printed on standard 8.5” x 11” paper
(the international standard (A4) of 8.27” x 11.69” may be substituted).
• 10-point Helvetica Light Standard is preferred for all entries that are typed or made using a
computer.
• Submissions should include the IRS source code or NACTP vendor ID code printed on the
lower left corner of the form or in place of the IRS catalog number.
• Each recipient’s information must be on a separate sheet of paper. Therefore, you must separate
all continuously printed substitutes, by recipient, before filing with the IRS.
• No carbon copies or pressure-sensitive copies will be accepted.
• The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (estate,
trust, partnership, or S corporation) and the recipient (beneficiary, partner, or shareholder).
• The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the
related form number (1041, 1065, or 1120-S), and the official schedule name in substantially
the same position and format as shown on the official IRS schedule.
• The Schedule K-1 must contain all the line items as shown on the official form, except for the
instructions, if any are printed on the back of the official Schedule K-1.
• The line items or boxes must be in the same order and arrangement as those on the official
form.
• The amount of each recipient’s share of each item must be shown. A partial percent should be
reflected as a decimal (for example, 50½% should be 50.5%). Furnishing a total amount of
each item and a percentage (or decimal equivalent) to be applied to such total amount by the
recipient does not satisfy the law and the specifications of this revenue procedure.

October 24, 2022 368 Bulletin No. 2022–43
• State or local tax-related information may not be included on the Schedules K-1 filed with
the IRS.
• The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not conform
to specifications.
• Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications
as not being able to be processed and may return Form 1041, 1065, or 1120-S to the filer to
be filed correctly.
Schedules K-1 that are 2-D bar-coded will continue to require prior approval from the IRS. (See
Sections 7.1.3 through 7.1.5.)
7.1.2
Special Requir
ements
for Recipient Copies of
Schedules K-1
Standardization for reporting information is required for recipient copies of substitute Schedules
K-1 of Forms 1041, 1065, and 1120-S. Uniform visual standards are provided to increase
compliance by allowing recipients and practitioners to more easily recognize a substitute Schedule
K-1. The entity must furnish to each recipient a copy of Schedule K-1 that meets the following
requirements.
• Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and
1120-S. Please allow white space around the 6-digit code.
– 661117 for Form 1041.
– 651121 for Form 1065.
– 671121 for Form 1120-S.
• You will no longer be able to produce Schedules K-1 that contain only those lines or boxes
that taxpayers are required to use. All lines must be included.
• The words “*See attached statement for additional information.” must be preprinted in the
lower right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120-S.
• The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and
recipient.
• The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the
related form number (1041, 1065, or 1120-S), and the official schedule name in substantially
the same position and format as shown on the official IRS schedule.
• All applicable amounts and information required to be reported must be titled and numbered
in the same manner as shown on the official IRS schedule. The line items or boxes must be in
the same order and arrangement and must be numbered like those on the official IRS schedule.
• The Schedule K-1 must contain all items required for use by the recipient. The instructions for
the schedule must identify the line or box number and code, if any, for each item as shown in
the official IRS schedule.
• The amount of each recipient’s share of each item must be shown. A partial percent should be
reflected as a decimal (for example, 50½% should be 50.5%). Furnishing a total amount of
each line item and a percentage (or decimal equivalent) to be applied to such total amount by
the recipient does not satisfy the law and the specifications of this revenue procedure.

Bulletin No. 2022–43 369 October 24, 2022
• Instructions to the recipient that are substantially similar to those on or accompanying the
official IRS schedule must be provided to aid in the proper reporting of the items on the
recipient’s income tax return. Where items are not reported to a recipient because they do not
apply, the related instructions may be omitted.
• The quality of the ink or other material used to generate recipients’ schedules must produce
clearly legible documents. In general, black chemical transfer inks are preferred.
• In order to assure uniformity of substitute Schedules K-1, the paper size should be standard
8.5” x 11” (the international standard (A4) of 8.27” x 11.69” may be substituted).
• The paper weight, paper color, font type, font size, font color, and page layout must be such
that the average recipient can easily decipher the information on each page. The preferred font
is Helvetica and a minimum of 10-point font.
• State or local tax-related information may be included on recipient copies of substitute
Schedules K-1. All non-tax-related information should be separated from the tax information
on the substitute schedule to avoid confusion for the recipient.
• The legend “Important Tax Return Document Enclosed” must appear in a bold and conspicuous
manner on the outside of the envelope that contains the substitute recipient copy of Schedule
K-1.
• The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient
does not conform to the specifications of this revenue procedure and results in impeding
processing.
7.1.3
Requir
ements for Schedules
K-1 With Two- Dimensional
(2- D) Bar Codes
Electronic filing is the preferred method of filing; however, 2-D bar code is the best alternative
method for paper processing.
In an effort to improve efficiency and increase data accuracy, the IRS partnered with the tax
software development community on a two-dimensional bar code project in 2003. Certain tax
software packages have been modified to generate 2-D bar codes on Schedules K-1. As a result,
when Schedules K-1 are printed using these programs, a bar code will print on the page.
Rather than manually transcribe information from the Schedule K-1, the IRS will scan the bar
code and electronically upload the information from the Schedule K-1. This will result in more
efficient operations within the IRS and fewer transcription errors for your clients.
Note. If software vendors do not want to produce bar-coded Schedules K-1, they may produce
the official IRS Schedules K-1 but cannot use the expedited process for approving bar-coded
Schedules K-1 and their parent returns as outlined in Section 7.1.6.
In addition to the requirements in Sections 7.1.1 and 7.1.2, the bar-coded Schedules K-1 must
meet the following specifications.
• The bar code should print in the space labeled “For IRS Use Only” on each Schedule K-1. The
entire bar code must print within the “For IRS Use Only” box surrounded by a white space of
at least 0.25 inch.
• Bar codes must print in PDF 417 format.
• The bar codes must always be in the specified format with every field represented by at least a
field delimiter (carriage return). Leaving out a field in a bar code will cause every subsequent
field to be misread.

October 24, 2022 370 Bulletin No. 2022–43
• Be sure to include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041,
1065, and 1120-S. Please allow white space around the 6-digit code.
– 661117 for Form 1041.
– 651121 for Form 1065.
– 671121 for Form 1120-S.
7.1.4
2-D Bar Code Specifications
for Schedules K-1
Follow these general specifications for preparing all 2-D bar-coded Schedules K-1.
• Numeric fields.
– Do not include leading zeros (except TINs, ZIP codes, and percentages).
– If negative value, the minus sign “–” must be present immediately to the left of the
number and part of the 12-position field.
– Do not use non-numeric characters except that the literal “STMT” can be put in money
fields.
– All money fields should be rounded to the nearest whole dollar amount—if a money
amount ends in 00 to 49 cents, drop the cents; if it ends in 50 to 99 cents, truncate the
cents and increment the dollar amount by one. Use the same rounding technique for the
bar-coded and the printed Schedules K-1.
– All numeric-only fields are right justified (except TINs and ZIP codes).
• All field lengths are expressed as maximum lengths. If the value in the field has fewer positions
or the software program does not support that many positions, put in the bar code only those
positions actually used.
• Alpha fields.
– Do not include leading blanks (left justified).
– Do not include trailing blanks.
– Use uppercase alpha characters only.
• Variable fields.
– Do not include leading blanks (left justified).
– Do not include trailing blanks.
– Use uppercase alpha characters, numerics, and special characters as defined in each field.
• Delimit each field with a carriage return.
• Express percentages as 6-digit numbers without the percent sign. Left justify with a leading
zero(s) (for percentages less than 100%) and no decimal point (decimal point is assumed
between 3rd and 4th positions). Examples: 25.32% expressed as “025320”; 105% expressed
as “105000”; 8.275% expressed as “008275”; 10.24674% expressed as “010247.”

Bulletin No. 2022–43 371 October 24, 2022
• It is vital that the print routine reinitialize the bar code prior to printing each succeeding
Schedule K-1. Failure to do this will result in each Schedule K-1 for a parent return having the
same bar code as the document before it.
7.1.5
Appr
oval Process for Bar-
Coded Schedules K-1
Prior to releasing commercially available tax software that creates bar-coded Schedules K-1, the
printed schedule and the bar code must both be tested. If your company is creating bar-coded
Schedules K-1, you must receive certification for both the printed Schedule K-1, as well as the bar
code, before offering your product for sale. Bar-code testing must be done using the final official
IRS Schedule K-1. Bar-code approval requests must be resubmitted for any subsequent changes
to the official IRS form that would affect the bar code. Below are instructions and a sequence of
events that will comprise the testing process.
• The IRS has released the final Schedule K-1 bar-code specifications by publishing them on the
IRS.gov website (see IRS.gov/E-file-Providers/K-1-Bar-Code-Certification-Process).
• The IRS will publish a set of test documents that will be used to test the ability of tax
preparation software to create bar codes in the correct format.
• Software developers will submit two identical copies of the test documents—one to the IRS
and one to a contracted testing vendor.
• The IRS will use one set to ensure the printed schedules comply with standard substitute
forms specifications.
• If the printed forms fail to meet the substitute forms criteria, the IRS will inform the software
developer of the reason for noncompliance.
• The software developer must resubmit the Schedule(s) K-1 until it passes the substitute forms
criteria.
• The testing vendor will review the bar codes to ensure they meet the published bar-code
specifications.
• If the bar code(s) does not meet published specifications, the testing vendor will contact the
software developer directly, informing them of the reason for noncompliance.
• Software developers must submit new bar-coded schedules until they pass the bar-code test.
• When the bar code passes, the testing vendor will inform the IRS that the developer has passed
the bar-code test and the IRS will issue an overall approval for both the substitute form and
the bar code.
• After receiving this consolidated response, the software vendor is free to release software
for tax preparation as long as any subsequent revisions to the schedules do not change the
fields.
• Find the mailing address for the testing vendor below. Separate and simultaneous mailings to
the IRS and the vendor will reduce testing time.
7.1.6
Pr
ocedures for Reducing
Testing Time
In order to help provide incentives to the software development community to participate in the
Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded Schedules
K-1 and their associated parent returns. To receive this expedited service, follow the instructions
below.

October 24, 2022 372 Bulletin No. 2022–43
• Mail the parent returns (Forms 1065, 1120-S, 1041) and associated bar-coded Schedule(s)
K-1 to the appropriate address below in a separate package from all other approval requests.
Internal Revenue Service
Attn: Bar-Coded K-1
SE:W:CAR:MP:T:M:S, IR-6526
1111 Constitution Ave. NW
Washington, DC 20224
• Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to the
testing vendor at the address below.
Leidos-IRS Paper and Remittance
Processing Support (PRPS II)
Attn: Dane Hawkins
9737 Washington Blvd.
Gaithersburg, MD 20878
• Include multiple email and phone contact points in the packages.
• While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns, it
cannot expedite the approval of nonassociated tax returns.
• Vendors are encouraged to visit NACTP.org for compliance guidelines in regards to file size
and error-correction level.
• Submissions should include the IRS source code or NACTP vendor ID code printed on the
lower left corner of the form or in place of the IRS catalog number.
• If a change is made to the bar code after approval, be sure to increment the version number.
Section 7.2 – Guidelines for Substitute Forms 8655
7.2.1
Incr
eased Standardization
for Forms 8655
Increased standardization for reporting information on substitute Forms 8655 is now required to
aid in processing and for compliance purposes. Please follow the guidelines in Section 7.2.2.
7.2.2
Requirements for
Substitute Forms 8655
Please follow these specific requirements when producing substitute Forms 8655.
• The first line of the title must be “Reporting Agent Authorization.”
• If you want to include a reference to “State Limited Power of Attorney,” it can be in parentheses
under the title. “State” must be the first word within the parentheses.
• You must include “Form 8655” on the form.
• While the line numbers do not have to match the official form, the sequence of the information
must be in the same order.
• The size of any variable data must be printed in a font no smaller than 10 points.
• For adequate disclosure checks, the following must be included for each taxpayer.

Bulletin No. 2022–43 373 October 24, 2022
– Name.
– EIN.
– Address.
• At this time, Form 944 will not be required if Form 941 is checked. Only those forms that the
reporting agent company supports need to be listed.
• The jurat (perjury statement) must be identical with the exception of references to line
numbers.
• A contact name and number for the reporting agent is not required.
• Any state information included should be contained in a separate section of the substitute
form. Preferably, this information will be in the same area as line 19 of the official form.
• All substitute Forms 8655 must be approved by the Program as outlined in the Form 8655
specifications in this current publication.
• If you have not already been assigned a 3-letter source code, you will be given one when your
substitute form is submitted for approval. This source code should be included in the lower
left corner of the form.
• The 20-business-day assumed approval policy does not apply to Form 8655 approvals.
7.2.3
Exception for
Form 8655
Because of how Form 8655 is processed and distributed to recipients, vendors are allowed to affix
their logo onto the substitute version of the form. This exception is for Form 8655 only.
Part 8
Additional Information
Section 8.1 – Forms for Electronically Filed Returns
8.1.1
Electronic Filing Program
Electronic filing is a method by which authorized providers transmit tax return information to
an IRS Service Center in the format of the official IRS forms. The IRS accepts both refund and
balance due forms that are filed electronically.
8.1.2
Applying To Participate in
IRS e-file
Anyone wishing to participate in IRS e-file of tax returns must submit an e-file application. The
application can be completed and submitted electronically on the IRS website at IRS.gov after
first registering for e-services on the website.
8.1.3
Obtaining the Taxpayer
Signature/ Submission of
Required Paper Documents
Taxpayers choosing to electronically prepare and file their return will be required to use the Self-
Select PIN method as their signature.
Electronic return originators (EROs) can e-file individual income tax returns only if the returns are
signed electronically using either the Self-Select or Practitioner PIN method.

October 24, 2022 374 Bulletin No. 2022–43
Taxpayers must use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return,
to send supporting documents that are required to be submitted to the IRS.
For specific information about electronic filing, refer to Pub. 1345, Handbook for Authorized IRS
e-file Providers of Individual Income Tax Returns.
8.1.4
Guidelines for
Preparing
Substitute Forms in the
Electronic Filing Program
A participant in the electronic filing program who wants to develop a substitute form should
follow the guidelines throughout this publication and send a sample form for approval to the
Program at substituteforms@irs.gov. If you do not prepare substitute Form 8453 using a font in
which all IRS wording fits on a single page, the form will not be accepted.
Note. Use of unapproved forms could result in suspension of the participant from the electronic
filing program.
Section 8.2 – Effect on Other Documents
8.2.1
Effect on Other Documents
This revenue procedure supersedes Revenue Procedure 2021-42, 2021-43 I.R.B. 666.
Section 8.3 – Exhibits
Exhibit A — Form 1040-ES Voucher 2022
Exhibit B — Substitute Form Checksheet

Bulletin No. 2022–43 375 October 24, 2022
39

Software Developers Voucher

October 24, 2022 376 Bulletin No. 2022–43
40

IRS Checksheet
Exhibit B Substitute Forms Checksheet

Checksheet of IRS Substitute Forms
Submitted on:
Enter the following information:
Company:
Contact:
Phone:
Fax:
Source Code:

Form
Number
Approved Approved
With
Corrections
Comments

Authorized Name:
Title:

Reviewer’s Name:

Telephone:

Date:

Bulletin No. 2022–43 377 October 24, 2022
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability. (Also: Part I, §§ 6011, 6662,
6662A, 6707A; 1-6011-4.)
Rev. Proc. 2022-37
SECTION 1. PURPOSE
This revenue procedure publishes the
amounts of unused housing credit carry-
overs allocated to qualified states under §
42(h)(3)(D) of the Internal Revenue Code
for calendar year 2022.
SECTION 2. BACKGROUND
Rev. Proc. 2019-45, 2019-48 I.R.B.
524, provides guidance to state housing
credit agencies of qualified states on the
procedure for requesting an allocation of
unused housing credit carryovers under
§ 42(h)(3)(D). The amount of unused
housing credit carryovers allocated to
qualified states for a calendar year from
a national pool of unused credit authority
(the National Pool) is published by the
Internal Revenue Service in the Internal
Revenue Bulletin. This revenue procedure
publishes these amounts for calendar year
2022.
SECTION 3. PROCEDURE
The unused housing credit carryover
amount allocated from the National Pool
by the Secretary to each qualified state for
calendar year 2022 is as follows:
Qualified State Amount Allocated
Alabama 126,203
California 982,548
Connecticut 90,287
Delaware 25,126
Florida 545,418
Georgia 270,430
Illinois 317,304
Indiana 170,428
Maine 34,362
Massachusetts 174,903
Michigan 251,681
Minnesota 142,918
Missouri 154,457
Montana 27,652
Nebraska 49,172
New Mexico 52,983
New York 496,708
North Carolina 264,210
Ohio 294,981
Oregon 106,327
Pennsylvania 324,631
Rhode Island 27,435
South Dakota 22,421
Vermont 16,166
Virginia 216,410
Washington 193,783
West Virginia 44,647
EFFECTIVE DATE
This revenue procedure is effective
for allocations of housing credit dollar
amounts attributable to the National Pool
component of a qualified state’s housing
credit ceiling for calendar year 2022.
DRAFTING INFORMATION
The principal author of this revenue
procedure is YoungNa Lee, formerly
at Office of Associate Chief Counsel
(Passthroughs and Special Industries). For
further information regarding this revenue
procedure, contact James A. Holmes at
(202) 317-4137 (not a toll-free number).

October 24, 2022 378 Bulletin No. 2022–43
Section 42—Low-Income
Housing Credit.
26 CFR 1.42-14. Allocation rules for post-1989
State housing credit ceiling
amounts.
Guidance is provided to state housing credit agen-
cies of qualified states that request an allocation of
unused housing credit carryover under section 42(h)
(3)(D) of the Internal Revenue Code. See Rev. Proc.
2022-37

Bulletin No. 2022–43 i October 24, 2022
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

October 24, 2022 ii Bulletin No. 2022–43
Numerical Finding List
1
Bulletin 2022–43
Announcements:
2022-14, 2022-31 I.R.B. 136
2022-15, 2022-31 I.R.B. 136
2022-16, 2022-33 I.R.B. 144
2022-17, 2022-35 I.R.B. 179
2022-18, 2022-36 I.R.B. 190
2022-19, 2022-36 I.R.B. 191
2022-20, 2022-38 I.R.B. 238
Notices:
2022-29, 2022-28 I.R.B. 66
2022-30, 2022-28 I.R.B. 70
2022-31, 2022-29 I.R.B. 85
2022-32, 2022-32 I.R.B. 137
2022-33, 2022-34 I.R.B. 147
2022-34, 2022-34 I.R.B. 150
2022-35, 2022-36 I.R.B. 184
2022-36, 2022-36 I.R.B. 188
2022-37, 2022-37 I.R.B. 234
2022-38, 2022-39 I.R.B. 239
2022-39, 2022-40 I.R.B. 264
2022-40, 2022-40 I.R.B. 266
2022-42, 2022-41 I.R.B. 276
2022-44, 2022-41 I.R.B. 277
2022-43, 2022-42 I.R.B. 303
2022-45, 2022-42 I.R.B. 307
2022-41, 2022-43 I.R.B. 304
2022-46, 2022-43 I.R.B. 306
2022-47, 2022-43 I.R.B. 312
2022-48, 2022-43 I.R.B. 316
2022-49, 2022-43 I.R.B. 321
2022-50, 2022-43 I.R.B. 325
2022-51, 2022-43 I.R.B. 331
2022-52, 2022-43 I.R.B. 337
Proposed Regulations:
REG-130975-08, 2022-28 I.R.B. 71
REG 130675-17, 2022-30 I.R.B. 104
REG-125693-19, 2022-39 I.R.B. 241
Revenue Procedures:
2022-25, 2022-27 I.R.B. 3
2022-28, 2022-27 I.R.B. 65
2022-26, 2022-29 I.R.B. 90
2022-32, 2022-30 I.R.B. 101
2022-30, 2022-31 I.R.B. 112
2022-29, 2022-33 I.R.B. 141
2022-34, 2022-33 I.R.B. 143
2022-35, 2022-40 I.R.B. 270
2022-36, 2022-40 I.R.B. 274
Revenue Procedures:—(Continued)
2022-19, 2022-41 I.R.B. 282
2022-31, 2022-43 I.R.B. 339
2022-37, 2022-43 I.R.B. 377
Revenue Rulings:
2022-12, 2022-27 I.R.B. 1
2022-13, 2022-30 I.R.B. 99
2022-14, 2022-31 I.R.B. 110
2022-15, 2022-35 I.R.B. 152
2022-17, 2022-36 I.R.B. 182
2022-18, 2022-40 I.R.B. 262
Treasury Decisions:
9963, 2022-34 I.R.B. 145
9964, 2022-35 I.R.B. 172
9965, 2022-37 I.R.B. 192
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.

Bulletin No. 2022–43 iii October 24, 2022
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2022–43
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.
We Welcome Comments About the Internal Revenue Bulletin
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.