Internal Revenue Bulletin 2023-22 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2023–22
May 30, 2023
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
Notice 2023-39, page 877.
This notice describes proposed amendments to the Income
Tax Regulations (26 CFR part 1) under § 148 of the Internal
Revenue Code (Code) that the Department of the Treasury
and the Internal Revenue Service intend to issue (forthcom-
ing proposed regulations) regarding an exception to the
arbitrage investment restrictions under § 148 applicable to
bonds the interest on which is excludable from gross income
under § 103(a) (tax-exempt bonds). Specifically, the forth-
coming proposed regulations will amend § 1.148-11(d)(1)
(i)(F) regarding whether certain perpetual trust funds cre-
ated and controlled by States that are pledged as credit
enhancement to guarantee tax-exempt bonds will be treated
as replacement proceeds of the guaranteed bonds for pur-
poses of the arbitrage investment restrictions on tax-exempt
bonds under § 148.
Rev. Proc. 2023-23, page 883.
This revenue procedure provides the 2024 inflation adjusted
amounts for Health Savings Accounts (HSAs) as determined
under § 223 of the Internal Revenue Code and the maximum
amount that may be made newly available for excepted bene-
fit health reimbursement arrangements (HRAs) provided under
§ 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.
EMPLOYEE PLANS
Notice 2023-40, page 879.
This notice sets forth updates on the corporate bond monthly
yield curve, the corresponding spot segment rates for May
2023 used under § 417(e)(3)(D), the 24-month average
segment rates applicable for May 2023, and the 30-year
Treasury rates, as reflected by the application of § 430(h)
(2)(C)(iv).
INCOME TAX
Notice 2023-38, page 872.
The notice provides the general rules taxpayers must satisfy
to qualify for the domestic content bonus credit amounts. In
addition to providing the general rules, it describes the man-
ufactured product adjusted percentage rule under which all
manufactured products of an applicable project are deemed
to meet the domestic content requirement applicable to man-
ufactured products. The notice also provides a safe harbor
for the classification of certain components in representa-
tive types of qualified facilities, energy projects, or energy
storage. Finally, the notice provides that certain retrofitted
projects are eligible for the domestic content bonus credit
amounts.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
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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
substantive rulings necessary to promote a uniform appli-
cation 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
otherwise indicated. Procedures relating solely to matters
of internal management are not published; however, state-
ments 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.
May 30, 2023 Bulletin No. 2023–22

Part III
Domestic Content Bonus
Credit Guidance under
Sections 45, 45Y, 48, and
48E
Notice 2023-38
SECTION 1. PURPOSE
The Department of the Treasury
(Treasury Department) and the Internal
Revenue Service (IRS) intend to propose
regulations (forthcoming proposed regu-
lations) addressing the application of the
rules that taxpayers must satisfy to qual-
ify for the domestic content bonus credit
amounts under §§ 45, 45Y, 48, and 48E of
the Internal Revenue Code (Code).
1
Pub-
lic Law 117-169, 136 Stat. 1818 (August
16, 2022), commonly known as the Infla-
tion Reduction Act of 2022 (IRA), amends
§§ 45 and 48 to provide a domestic content
bonus credit amount for certain qualified
facilities or energy projects placed in ser-
vice after December 31, 2022, and adds
new §§ 45Y and 48E, which include a
domestic content bonus credit amount for
certain investments in qualified facilities
or energy storage technologies placed in
service after December 31, 2024.
2
This
notice describes certain rules that the
Treasury Department and the IRS intend
to include in the forthcoming proposed
regulations regarding the domestic con-
tent bonus credit requirements and related
recordkeeping and certification require-
ments. This notice also describes a safe
harbor regarding the classification of cer-
tain components in representative types
of qualified facilities, energy projects, or
energy storage technologies. The Treasury
Department and the IRS intend to propose
that the forthcoming proposed regulations
will apply to taxable years ending after
May 12, 2023. Taxpayers may rely on the
rules described in sections 3 through 6 of
this notice for the domestic content bonus
credit requirements for any qualified
facility, energy project, or energy stor-
age technology the construction of which
begins before the date that is 90 days after
the date of publication of the forthcom-
ing proposed regulations in the Federal
Register.
SECTION 2. BACKGROUND
.01 Domestic Content Bonus Credit
Amounts. For purposes of this notice, an
“Applicable Project” refers to: (i) a qual-
ified facility under §§ 45 or 45Y; (ii) an
energy project under § 48, which may
include qualified property for which a
valid irrevocable election under § 48(a)
(5) has been made to treat such qualified
property as energy property under § 48; or
(iii) a qualified investment with respect to
a qualified facility or energy storage tech-
nology under § 48E.
Domestic content bonus credit
amounts are available under §§ 45(b)(9),
45Y(g)(11), 48(a)(12), and 48E(a)(3)(B)
to increase the amount of a credit deter-
mined under § 45 (§ 45 credit), § 45Y
(§ 45Y credit), § 48 (§ 48 credit), and
§ 48E (§ 48E credit), respectively, for a
taxpayer whose Applicable Project sat-
isfies the domestic content requirement
set forth in § 45(b)(9)(B)(i) (incorpo-
rated by cross-reference in § 48(a)(12),
which is incorporated by cross-reference
in § 48E(a)(3)(B)) and in § 45Y(g)(11)
(B)(i) (Domestic Content Requirement).
A taxpayer establishes that the Domes-
tic Content Requirement is satisfied with
respect to an Applicable Project by cer-
tifying to the Secretary of the Treasury
or her delegate (Secretary) (at such time,
and in such form and manner, as the Sec-
retary may prescribe) that “any steel,
iron, or manufactured product which is
a component of [the Applicable Project]
(upon completion of construction) was
produced in the United States (as deter-
mined under section [sic] 661 of title
49, Code of Federal Regulations).” See
§§ 45(b)(9)(B)(i) and 45Y(g)(11)(B)(i).
Sections 661.1 through 661.21 of title
49 of the Code of Federal Regulations,
which are known as the Buy America
Requirements, that are administered
by the Federal Transit Administration
(FTA), Department of Transportation.
Section 45(b)(9)(A) provides that in
the case of any § 45 qualified facility, the
amount of the § 45 credit (determined
after application of § 45(b)(1) through
(8)) is increased by 10 percent (not 10 per-
centage points) if the Domestic Content
Requirement is satisfied. Similarly, for any
§ 45Y qualified facility placed in service
after December 31, 2024, § 45Y(g)(11)
(A) provides that the amount of the § 45Y
credit (determined without application of
§ 45(g)(7)) is increased by 10 percent
(not 10 percentage points) if the Domestic
Content Requirement is satisfied.
Section 48(a)(12)(C) provides a domestic
content bonus credit amount for a § 48
energy project by increasing the “energy
percentage” provided in § 48(a)(2),
which is used to determine the amount of
the § 48 credit, by 10 percentage points if
(1) the Domestic Content Requirement is
satisfied and (2) any one of the following
requirements is satisfied (and by 2 per-
centage points if the Domestic Content
Requirement is satisfied and none of the
following requirements are satisfied): (i)
the energy project has a maximum net
output of less than 1 megawatt of electri-
cal (as measured in alternating current)
or thermal energy; (ii) construction of
the energy project began before Janu-
ary 29, 2023;
3
or (iii) the energy project
satisfies the prevailing wage and appren-
ticeship requirements in §§ 48(a)(10)(A)
and (11).
If the Domestic Content Requirement
is satisfied for any § 48E qualified invest-
ment with respect to a qualified facility or
energy storage technology placed in ser-
1
Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).
2
See § 13101(g) of the IRA for the domestic content bonus credit under § 45(b)(9), § 13701(a) of the IRA for the domestic content bonus credit under § 45Y(g)(11), § 13102(l) of the IRA for
the domestic content bonus credit under § 48(a)(12), and § 13702(a) of the IRA for the domestic content bonus credit under § 48E(a)(3)(B).
3
January 29, 2023 is the date 60 days after the November 30, 2022, publication date of Notice 2022-61, 2022-52 I.R.B. 560 (87 F.R. 73580 as corrected in 87 F.R. 75141), which provides
initial guidance regarding the prevailing wage and apprenticeship requirements in § 48(a)(10)(A) and (11) and other sections of the Code.
May 30, 2023 872 Bulletin No. 2023–22

vice after December 31, 2024, § 48E(a)
(3)(B) provides that rules similar to the
rules of § 48(a)(12) apply for determin-
ing whether the domestic content bonus
credit amount increases the “applicable
percentage” provided in § 48E(a)(2) by
10 percentage points or 2 percentage
points.
Sections 45(b)(12) and 48(a)(16)
authorize the Secretary to issue such regu-
lations or other guidance as the Secretary
determines necessary to carry out the pur-
poses of §§ 45(b) and 48(a) (and therefore
the domestic content bonus credit rules
in §§ 45(b)(9), 48(a)(12), and 48E(a)(3)
(B) (by cross-reference to § 48(a)(12)),
including regulations or other guidance
that provide requirements for recordkeep-
ing or information reporting for purposes
of administering the requirements of
§§ 45(b) and 48(a). Similarly, § 45Y(f)
authorizes the Secretary to issue guidance
regarding the implementation of § 45Y
(and therefore § 45Y(g)(11)), including
the determination of the amount of § 45Y
credits.
.02 Steel, Iron, or Manufactured Prod-
ucts. In general, the Domestic Content
Requirement applies to any steel, iron,
or Manufactured Product (as defined in
section 3.01(2)(c) of this notice) that is
a component of an Applicable Project.
Sections 45(b)(9)(B)(ii) and 45Y(g)(11)
(B)(ii) provide that the Domestic Content
Requirement for steel or iron applies in a
manner consistent with section 661.5 of
title 49, Code of Federal Regulations.
Sections 45(b)(9)(B)(iii) and 45Y(g)(11)
(B)(iii) provide that “manufactured prod-
ucts which are components of a qualified
facility upon completion of construction
shall be deemed to have been produced
in the United States if not less than the
adjusted percentage . . . of the total costs
of all such manufactured products of such
facility are attributable to manufactured
products (including components) which are
mined, produced, or manufactured in the
United States” (Adjusted Percentage Rule).
Section 45(b)(9)(C) provides that, for
purposes of § 45(b)(9)(B)(iii), the adjusted
percentage is 40 percent, or 20 percent in
the case of a qualified facility that is an
offshore wind facility. Under § 45Y(g)
(11)(C) the adjusted percentage increases
from 40 percent for qualified facilities the
construction of which begins before 2025
to 55 percent for qualified facilities the
construction of which begins after 2026,
and from 20 percent for a qualified facility
that is an offshore wind facility the con-
struction of which begins before 2025 to
55 percent in the case of a qualified facil-
ity that is an offshore wind facility the
construction of which begins after 2027.
As provided in section 2.01 of this notice,
§ 48(a)(12)(B) provides that rules similar
to the rules of § 45(b)(9)(B) apply for pur-
poses of determining the domestic content
bonus credit amount under § 48. Simi-
larly, § 48E(a)(3)(B) provides that rules
similar to the rules of § 48(a)(12) apply
for purposes of determining the domestic
content bonus credit amount under § 48E.
SECTION 3. GUIDANCE WITH
RESPECT TO THE DOMESTIC
CONTENT REQUIREMENT
.01 Domestic Content Requirement.
(1) In general. An Applicable Project
is eligible for a domestic content bonus
credit amount if the Applicable Project
satisfies the Domestic Content Require-
ment and the taxpayer timely submits
to the IRS the certification described in
section 5 of this notice. An Applicable
Project satisfies the Domestic Content
Requirement if the Steel or Iron Require-
ment described in section 3.02 of this
notice and the Manufactured Products
Requirement described in section 3.03 of
this notice are satisfied.
(2) Definitions. The following defini-
tions apply for purposes of the Domestic
Content Requirement.
(a) Applicable Project Component.
“Applicable Project Component” means
any article, material, or supply, whether
manufactured or unmanufactured, that is
directly incorporated into an Applicable
Project. An Applicable Project Com-
ponent may qualify as steel, iron, or a
Manufactured Product.
(b) Manufactured. “Manufactured”
means produced as a result of the manu-
facturing process.
(c) Manufactured Product. “Manufac-
tured Product” means an item produced as
a result of the manufacturing process.
(d) Manufactured Product Component.
“Manufactured Product Component”
means any article, material, or supply,
whether manufactured or unmanufac-
tured, that is directly incorporated into an
Applicable Project Component that is a
Manufactured Product.
(e) Manufacturing Process. “Manu-
facturing process” means the application
of processes to alter the form or function
of materials or of elements of a product
in a manner adding value and transform-
ing those materials or elements so that
they represent a new item functionally
different from that which would result
from mere assembly of the elements or
materials.
(f) Mined. “Mined” means derived
from the extraction of ores or minerals
from the ground or from the waste or resi-
due of prior mining.
(g) Produced. “Produced,” with res-
pect to a Manufactured Product Com ponent,
has the same meaning as the term “manu-
factured” as defined in section 3.01(2)(b)
of this notice.
(h) United States. “United States”
means the several States, the District of
Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, the U.S.
Virgin Islands, and the Commonwealth of
the Northern Mariana Islands.
.02 Steel or Iron Requirement.
The Domestic Content Requirement
with respect to steel or iron (Steel or Iron
Requirement) applies in a manner con-
sistent with 49 CFR § 661.5(b) and (c).
See §§ 45(b)(9)(B)(ii) and 45Y(g)(11)
(B)(ii). The Steel or Iron Requirement is
met if, consistent with 49 CFR § 661.5(b)
and (c), all manufacturing processes with
respect to any steel or iron items that are
Applicable Project Components take place
in the United States, except metallurgical
processes involving refinement of steel
additives. The Steel or Iron Requirement
applies to Applicable Project Components
that are construction materials made pri-
marily of steel or iron and are structural
in function. The Steel or Iron Require-
ment does not apply to steel or iron used
in Manufactured Product Components or
subcomponents of Manufactured Product
Components. For example, items such
as nuts, bolts, screws, washers, cabinets,
covers, shelves, clamps, fittings, sleeves,
adapters, tie wire, spacers, door hinges,
and similar items that are made primar-
Bulletin No. 2023–22 873 May 30, 2023

May 30, 2023 874 Bulletin No. 2023–22
ily of steel or iron but are not structural
in function are not subject to the Steel or
Iron Requirement.
.03 Manufactured Products Require-
ment.
(1) In General. The Domestic Con-
tent Requirement with respect to
Manufactured Products (Manufactured
Products Requirement) applies in a man-
ner consistent with 49 CFR § 661.5(d).
See §§ 45(b)(9)(B)(i) and 45Y(g)(11)(B)
(i). The Manufactured Products Require-
ment is met if all Applicable Project
Components that are Manufactured
Products are produced in the United
States or are deemed to be produced in
the United States. All Applicable Proj-
ect Components that are Manufactured
Products are deemed to be produced in
the United States if the Adjusted Percent-
age Rule described in section 3.03(2) of
this notice is satisfied.
A Manufactured Product is considered
to be produced in the United States (U.S.
Manufactured Product) if: (1) all of the
manufacturing processes for the Manu-
factured Product take place in the United
States; and (2) all of the Manufactured
Product Components of the Manufactured
Product are of U.S. origin. A Manufac-
tured Product Component is considered
to be of U.S. origin if it is manufac-
tured in the United States, regardless of
the origin of its subcomponents. See 49
CFR § 661.5(d). This notice refers to a
Manufactured Product that is not a U.S.
Manufactured Product as a “Non-U.S.
Manufactured Product.”
(2) Adjusted Percentage Rule.
(a) In general. For purposes of the
Adjusted Percentage Rule, the percentage
produced by dividing the Domestic Man-
ufactured Products and Components Cost
(as described in section 3.03(2)(b) of this
notice) by the Total Manufactured Prod-
ucts Cost (as described in section 3.03(2)
(c) of this notice) is the “Domestic Cost
Percentage” calculated for an Applicable
Project. If the Domestic Cost Percent-
age for an Applicable Project equals or
exceeds the adjusted percentage that
applies to the Applicable Project, then the
Applicable Project satisfies the Adjusted
Percentage Rule.
(b) Domestic Manufactured Products
and Components Cost. The Domestic
Manufactured Products and Components
Cost is the sum of the costs of an Appli-
cable Project’s (1) U.S. Manufactured
Products that are Applicable Project Com-
ponents and (2) Manufactured Product
Components of Non-U.S. Manufactured
Products that are Applicable Project
Components if the Manufactured Prod-
uct Components are mined, produced,
or manufactured in the United States
(U.S. Component). Consistent with 49
CFR § 661.5(d), a Manufactured Product
Component that is manufactured is a U.S.
Component if it is manufactured or pro-
duced in the United States, regardless of
the origin of its subcomponents. A Man-
ufactured Product Component that is not
manufactured is a U.S. Component if it is
mined in the United States.
For purposes of determining the
Domestic Manufactured Products and
Components Cost for an Applicable
Project, the cost of a U.S. Manufactured
Product or U.S. Component includes only
direct costs as defined in § 1.263A-1(e)(2)
(i), that is, direct materials and direct labor
costs, that are paid or incurred within the
meaning of § 461 by the U.S. Manufac-
tured Product’s manufacturer to produce
the U.S. Manufactured Product or by the
Non-U.S. Manufactured Product’s man-
ufacturer to produce or acquire the U.S.
Component. The Domestic Manufactured
Products and Components Cost does not
include the direct materials or direct labor
costs that are paid or incurred within
the meaning of § 461 by the Non-U.S.
Manufactured Product’s manufacturer to
produce the Non-U.S. Manufactured Prod-
uct. Direct costs, including direct labor
costs, of incorporating the Applicable
Project Components into the Applicable
Project are not counted in the Domestic
Manufactured Products and Components
Cost.
For purposes of this notice, the manu-
facturer of a U.S. Manufactured Product
or a Non-U.S. Manufactured Product is
the person that performed the manufac-
turing process that produced the U.S.
Manufactured Product or the Non-U.S.
Manufactured Product. The rules under
§ 263A that are used to determine whether
a taxpayer is engaged in production or
resale activities for purposes of § 263A do
not apply for purposes of this notice.
(c) Total Manufactured Products Cost.
The Total Manufactured Products Cost for
an Applicable Project is the sum of the
costs of each Applicable Project Compo-
nent that is a Manufactured Product. For
purposes of determining the Total Manu-
factured Products Cost for an Applicable
Project, the cost of an Applicable Project
Component that is a Manufactured Prod-
uct includes only direct costs as defined
in § 1.263A-1(e)(2)(i) that are paid or
incurred within the meaning of § 461 by
the manufacturer of the Manufactured
Product to produce the Manufactured
Product. For purposes of this notice, the
manufacturer of a U.S. Manufactured
Product or a Non-U.S. Manufactured
Product is the person that performed the
manufacturing process that produced the
U.S. Manufactured Product or the Non-
U.S. Manufactured Product. The rules
under § 263A that are used to determine
whether a taxpayer is engaged in produc-
tion or resale activities for purposes of
§ 263A do not apply for purposes of this
notice.
(d) Adjusted Percentage Rule Example.
Taxpayer purchases Applicable Project
A from Contractor under an engineering,
procurement, and construction contract
and places Applicable Project A in service.
Applicable Project A has two Applicable
Project Components that are Manufac-
tured Products.
Contractor performed the manufac-
turing process that produced Applicable
Project A’s first manufactured product
(Manufactured Product 1). Manufactured
Product 1 is manufactured in the United
States and has two Manufactured Prod-
uct Components (Components 1A and
1B) that are manufactured in the United
States. Manufactured Product 1 is a U.S.
Manufactured Product because it and both
of its Manufactured Product Components
are produced in the United States.
Supplier performed the manufactur-
ing process that produced Applicable
Project A’s second manufactured product
(Manufactured Product 2). Contractor
purchased Manufactured Product 2 from
Supplier. Manufactured Product 2 is
manufactured in the United States and
has three Manufactured Product Com-
ponents. Manufactured Product 2’s
first Manufactured Product Component

Bulletin No. 2023–22 875 May 30, 2023
(Component 2A) is manufactured in the
United States, its second Manufactured
Product Component (Component 2B) is
manufactured in the United States, and its
third Manufactured Product Component
(Component 2C) is manufactured out-
side of the United States. Manufactured
Product 2 is a Non-U.S. Manufactured
Product because Component 2C is man-
ufactured outside of the United States.
Components 2A and 2B are U.S. Compo-
nents because they are manufactured in
the United States.
All costs shown in the table below are
the direct costs (as defined in § 1.263A-
1(e)(2)(i)) of producing the Manufactured
Product or producing or acquiring the
Manufactured Product Component that
were paid or incurred within the mean-
ing of § 461 by the manufacturer of the
Manufactured Product. Contractor is the
manufacturer of Manufactured Product 1,
and Supplier is the manufacturer of Man-
ufactured Product 2.
Table 1 – Direct Costs of Manufactured
Products 1 and 2
AssetCost
Manufactured Product 1$100
Component 1A30
Component 1B45
Manufactured Product 2$200
Component 2A30
Component 2B50
Component 2C100
Applicable Project A’s Domestic Manu-
factured Products and Components Cost
consists of the cost of Manufactured
Product 1 ($100), Component 2A ($30),
and Component 2B ($50) for a total of
$180. Applicable Project A’s Total Man-
ufactured Products Cost consists of the
cost of Manufactured Product 1 ($100)
and Manufactured Product 2 ($200) for
a total of $300. Applicable Project A’s
Domestic Cost Percentage is 60% ($180
divided by $300). Applicable Project A
satisfies the Adjusted Percentage Rule
because its Domestic Cost Percentage
of 60% exceeds the adjusted percentage.
Thus, Manufactured Products 1 and 2
are both deemed to have been produced
in the United States under the Adjusted
Percentage Rule.
.04 Safe Harbor for Classifications of
Certain Applicable Project Components.
The Treasury Department and the IRS
identified certain Applicable Project Com-
ponents that may be found in utility-scale
photovoltaic systems, land-based wind
facilities, offshore wind facilities, and
battery energy storage technologies. The
FTA provided assistance in evaluating the
classification of the identified Applicable
Project Components. The categorization
of each item described in Table 2 of this
notice as subject to either the Steel or Iron
Requirement or Manufactured Product
Requirement is based on the FTA’s anal-
ysis and will be accepted by the IRS for
those Applicable Project Components and
Manufactured Product Components. In
conducting this analysis, which involves
energy technologies that the FTA would
not ordinarily analyze under its regula-
tions with respect to public transportation
projects, the FTA has relied on the expert
technical assistance of the Department of
Energy (DOE), particularly with respect
to the function of Applicable Project
Components identified by the Treasury
Department and the IRS, the manufactur-
ing processes involved in producing them,
and the identification of certain Manufac-
tured Product Components of specified
Manufactured Products. The technolo-
gies analyzed are different from public
transportation, and the IRA includes spe-
cific rules on domestic content (such as a
minimum required percentage for manu-
factured products) that are different from
those in the FTA’s Buy America statute
and regulations. Thus, conclusions about
how the items described in Table 2 are
classified under the IRA do not constitute
precedent for future the FTA implemen-
tation of its Buy America requirements
to federally funded public transportation
projects.
The Applicable Project Components
described in Table 2 of this notice may
not be an exhaustive set of all Applicable
Project Components for those types of
Applicable Projects. The Applicable Proj-
ects and Applicable Project Components
described in Table 2 must meet the stat-
utory requirements for the relevant credit
under §§ 45, 45Y, 48, or 48E to be eligi-
ble for such credit and a domestic content
bonus credit amount.

May 30, 2023 876 Bulletin No. 2023–22
Table 2 – Categorization of Applicable Project Components
Applicable ProjectApplicable Project ComponentCategorization
Utility-scale
photovoltaic system
Steel photovoltaic module racking Steel/Iron
Pile or ground screwSteel/Iron
Steel or iron rebar in foundation (e.g., concrete pad)Steel/Iron
Photovoltaic trackerManufactured Product
Photovoltaic module (which includes the following Manufactured Product
Components, if applicable: photovoltaic cells, mounting frame or backrail, glass,
encapsulant, backsheet, junction box (including pigtails and connectors), edge
seals, pottants, adhesives, bus ribbons, and bypass diodes)
Manufactured Product
InverterManufactured Product
Land-based wind
facility
TowerSteel/Iron
Steel or iron rebar in foundation (e.g., spread footing)Steel/Iron
Wind turbine (which includes the following Manufactured Product Components,
if applicable: the nacelle, blades, rotor hub, and power converter)
Manufactured Product
Wind tower flangesManufactured Product
Offshore wind
facility
TowerSteel/Iron
Jacket foundationSteel/Iron
Wind tower flangesManufactured Product
Wind turbine (which includes the following Manufactured Product Components,
if applicable: the nacelle, blades, rotor hub, and power converter)
Manufactured Product
Transition pieceManufactured Product
MonopileManufactured Product
Inter-array cableManufactured Product
Offshore substationManufactured Product
Export cableManufactured Product
Battery energy
storage technology
Steel or iron rebar in foundation (e.g., concrete pad)Steel/Iron
Battery pack (which includes the following Manufactured Product Components,
if applicable: cells, packaging, thermal management system, and battery
management system)
Manufactured Product
Battery container/housingManufactured Product
InverterManufactured Product
SECTION 4. RETROFITTED
PROJECTS
.01 In General. An Applicable Project
may qualify as originally placed in service
even though it contains some used prop-
erty, provided the fair market value of the
used property is not more than 20 percent
of the Applicable Project’s total value
calculated by adding the cost of the new
property to the value of the used property
(80/20 Rule). See Rev. Rul. 94-31, 1994-1
C.B. 16; Notice 2008-60, 2008-2 C.B.
178. The cost of new property includes all
costs properly included in the deprecia-
ble basis of the new property. See Notice
2017-4, 2017-3 I.R.B. 541.
.02 Application to the Domestic Content
Requirement. An Applicable Project that is
placed in service after December 31, 2022,
and meets the 80/20 Rule is eligible for a
domestic content bonus credit amount if
the new property in the Applicable Project
meets the Domestic Content Requirement
and the taxpayer complies with the require-
ments described in this notice.
SECTION 5. CERTIFICATION
REQUIREMENTS
.01 Certification Statement.
(1) In General. Sections 45(b)(9)(B)
(i), 45Y(g)(11)(B)(i), 48(a)(12)(B), and
48E(a)(3)(B) authorize the Secretary to
prescribe the time, form, and manner for
certifying compliance with the Domestic
Content Requirement.
(2) Certification Procedures.
(a) A taxpayer must submit to the IRS
a statement certifying for each Applicable

Bulletin No. 2023–22 877 May 30, 2023
Project for which the taxpayer is reporting
a domestic content bonus credit amount
under §§ 45, 45Y, 48, or 48E that any
steel or iron items subject to the Steel or
Iron Requirement or Manufactured Prod-
uct that is a component of the Applicable
Project upon completion of construction
was produced in the United States (Domes-
tic Con tent Certification Statement).
(b) The Domestic Content Certification
Statement must be attached to Form 8835,
Renewable Electricity Product Credit;
Form 3468, Investment Credit; or other
applicable form for reporting domestic
content bonus credit amounts under §§ 45,
45Y, 48, or 48E filed with the taxpayer’s
annual return submitted to the IRS for the
first taxable year in which the taxpayer
reports a domestic content bonus credit
amount for such Applicable Project. For
each taxable year after the first taxable
year in which a taxpayer initially reports
a domestic content bonus credit amount
under §§ 45 or 45Y for an Applicable Proj-
ect, a taxpayer must attach a copy of the
Domestic Content Certification Statement
that was initially submitted to the IRS
with the annual return for the first taxable
year.
(c) The Domestic Content Certification
Statement must also include the following
information for each Applicable Project:
(i) Whether the Applicable Project is a
qualified facility, energy project, or energy
storage technology;
(ii) The specific type of Applicable
Project (for example, Utility-Scale Photo-
voltaic System or Battery Energy Storage
Technology);
(iii) The geographic coordinates of an
Applicable Project and the address of the
Applicable Project, if applicable;
(iv) The date the Applicable Project
was placed in service;
(v) The total domestic content bonus
credit amount determined under §§ 45(b)
(9), 45Y(g)(11), 48(a)(12), or 48E(a)(3)
(B) with respect to the Applicable Proj-
ect in the first taxable year in which the
taxpayer reports a domestic content bonus
credit amount for such Applicable Project;
and
(vi) Any additional information with
respect to the Applicable Project that
is required by the applicable forms and
instructions for reporting domestic con-
tent bonus credit amounts determined
under §§ 45, 45Y, 48, or 48E.
(vii) The Domestic Content Certifica-
tion Statement must be signed by a person
with legal authority to bind the taxpayer
and contain the following statement:
“Under penalties of perjury I declare that I
have examined the information contained
in this Domestic Content Certification
Statement and to the best of my knowl-
edge and belief, it is true, correct, and
complete.”
.02 Timing of Certification. A taxpayer
must certify that an Applicable Project
meets the Domestic Content Requirement
as of the date the Applicable Project is
placed in service. The date an Applicable
Project is considered placed in service for
purposes of this notice is the date on which
such property is placed in a condition or
state of readiness and availability for a
specifically assigned function, whether in
a trade or business or in the production of
income.
SECTION 6. SUBSTANTIATION
A taxpayer reporting a domestic con-
tent bonus credit amount for meeting the
Domestic Content Requirement must meet
the general recordkeeping requirements
under § 6001 in order to substantiate that
the Domestic Content Requirement has
been met. Section 6001 provides that
every person liable for any tax imposed
by the Code, or for the collection thereof,
must keep such records as the Secretary
may from time to time prescribe. Sec-
tion 1.6001-1(a) provides that any person
subject to income tax must keep such per-
manent books of account or records as are
sufficient to establish the amount of gross
income, deductions, credits, or other mat-
ters required to be shown by such person
in any return of such tax. Section 1.6001-
1(e) provides that the books and records
required by § 1.6001-1 must be retained so
long as the contents thereof may become
material in the administration of any inter-
nal revenue law. See also §§ 45(b)(12),
48(a)(16), 48E(a)(3)(B) (by cross-refer-
ence to § 48(a)(12)), and 45Y(f).
SECTION 7. PAPERWORK
REDUCTION ACT
Any collection burden associated with
this notice is accounted for in Office of
Management and Budget (OMB) control
numbers 1545-0123 and 1545-0047. The
collections of information associated with
the IRA-related changes to Form 3468
and Form 8835 were approved, and will
continue to be approved, under OMB con-
trol numbers 1545-0123 and 1545-0047.
This notice does not alter any previously
approved information collection require-
ments and does not create new collection
requirements not already approved by
OMB.
SECTION 8. 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 call).
Arbitrage Treatment of
Certain Guarantee Funds
Notice 2023-39
SECTION 1. PURPOSE
This notice describes proposed amend-
ments to the Income Tax Regulations (26
CFR part 1) under § 148 of the Internal
Revenue Code (Code)
1
that the Department
of the Treasury (Treasury Department)
and the Internal Revenue Service (IRS)
intend to issue (forthcoming proposed
regulations) regarding an exception to the
arbitrage investment restrictions under
§ 148 applicable to bonds the interest on
which is excludable from gross income
under § 103(a) (tax-exempt bonds).
Specifically, the forthcoming proposed
1
Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).

May 30, 2023 878 Bulletin No. 2023–22
regulations will amend § 1.148-11(d)(1)
(i)(F) regarding whether certain perpet-
ual trust funds created and controlled by
States that are pledged as credit enhance-
ment to guarantee tax-exempt bonds
will be treated as replacement proceeds
of the guaranteed bonds for purposes of
the arbitrage investment restrictions on
tax-exempt bonds under § 148.
SECTION 2. BACKGROUND
.01 Arbitrage restrictions generally
In general, the interest on bonds issued
by State and local governments is exclud-
able from gross income under § 103(a) if
certain requirements are met. Section 148
imposes arbitrage investment restrictions
on tax-exempt bonds that limit the invest-
ment of proceeds of tax-exempt bonds
in higher-yielding investments and that
require issuers to rebate certain excess
earnings above the yield on tax-exempt
bonds to the United States Government.
2

The arbitrage restrictions apply to ordi-
nary proceeds derived from the sale of
tax-exempt bonds and investment earnings
thereon. In addition, the arbitrage restric-
tions apply to a special type of tax-exempt
bond proceeds, known as “replacement
proceeds,” as a result of their use as
security for tax-exempt bonds or other
nexus to tax-exempt bonds. These spe-
cial replacement proceeds include, among
other things, certain “pledged funds” that
are pledged to secure repayment of tax-ex-
empt bonds with a reasonable assurance
of availability for such purpose. One spe-
cial exception to the treatment of pledged
funds as replacement proceeds covers
certain perpetual trust funds under certain
parameters and under a specified size lim-
itation, as described further in section 2.03
of this notice.
.02 Statutory and regulatory arbitrage
restriction rules
Section 148(a) defines an “arbitrage
bond” as any bond issued as part of an
issue any portion of the proceeds of which
are reasonably expected (at the time of
issuance of the bond) to be used directly
or indirectly (1) to acquire higher yield-
ing investments or (2) to replace funds
which were used directly or indirectly to
acquire higher yielding investments. Sec-
tion 148(a) further provides that a bond is
an arbitrage bond if an issuer intention-
ally uses any portion of the proceeds of
the issue of which such bond is a part to
acquire higher yielding investments or to
replace funds which were used directly
or indirectly to acquire higher yielding
investments. In addition, § 148(f) requires
that issuers rebate certain excess earn-
ings on proceeds of tax-exempt bonds
to the United States Government. Under
§§ 1.148-2(a) and 1.148-3(a), “proceeds”
for these purposes means “gross proceeds”
of an issue. Section 1.148-1(b) defines
“gross proceeds” to include proceeds and
replacement proceeds of an issue.
Section 1.148-1(c)(1) defines “replace-
ment proceeds” as amounts that have a
sufficiently direct nexus to a tax-exempt
bond issue or to the governmental purpose
of a tax-exempt bond issue to conclude
that the amounts would have been used
for that governmental purpose if the pro-
ceeds of the bond issue were not used or
to be used for that governmental purpose.
Section 1.148-1(c)(1) further provides
that replacement proceeds include, but
are not limited to, sinking funds, pledged
funds, and other replacement proceeds
described in § 1.148-1(c)(4) to the extent
that those funds or amounts are held by
or derived from a substantial benefi-
ciary of the issue. Section 1.148-1(c)(1)
defines a “substantial beneficiary” of an
issue to include the issuer of such issue,
any related party to the issuer and, if the
issuer is not a State, the State in which
the issuer is located. Section 1.148-1(c)
(1) further provides, however, that a per-
son is not a substantial beneficiary of
an issue solely because it is a guarantor
under a qualified guarantee.
Section 1.148-1(c)(3)(i) defines a
“pledged fund” as any amount that is
directly or indirectly pledged to pay prin-
cipal or interest on the issue. Although a
pledge need not be cast in any particular
form, it must, in substance, provide rea-
sonable assurance that the amount will be
available to pay principal or interest on the
issue even if the issuer encounters finan-
cial difficulties.
.03 Exception for certain perpetual
trust funds
Section § 1.148-11(d)(1)(i) provides
a special exception to the treatment of
funds as pledged funds for arbitrage
purposes for certain perpetual trust
funds if the requirements and limitations
enumerated in §§ 1.148-11(d)(1)(i)(A)
through (F) are satisfied. Specifically,
§ 1.148-11(d)(1)(i) provides that a guar-
antee by a fund created and controlled
by a State and established pursuant to its
constitution does not cause the amounts
in the fund to be pledged funds treated
as replacement proceeds if: (A) substan-
tially all of the corpus of the fund consists
of nonfinancial assets, revenues derived
from these assets, gifts, and bequests;
(B) the corpus of the guarantee fund may
be invaded only to support specifically
designated essential governmental func-
tions (designated functions) carried on
by political subdivisions with general
taxing powers or public elementary and
public secondary schools; (C) substan-
tially all of the available income of the
fund is required to be applied annually
to support designated functions; (D) the
issue guaranteed consists of obligations
that are not private activity bonds (other
than qualified 501(c)(3) bonds) substan-
tially all of the proceeds of which are to
be used for designated functions; (E) the
fund satisfied each of the requirements
in §§ 1.148-11(d)(1)(i) through (iii) on
August 16, 1986; and (F) as of the sale
date of the bonds to be guaranteed, the
amount of the bonds to be guaranteed
by the fund plus the then-outstanding
amount of bonds previously guaran-
teed by the fund does not exceed a total
amount equal to 500 percent of the total
costs of the assets held by the fund as of
December 16, 2009. (The references in
(E) to §§ 1.148-11(d)(1)(i) through (iii)
should be to §§ 1.148-11(d)(1)(i)(A)
through (C).)
Bond guarantees enable issuers to
obtain lower bond interest rates. The
2
Under § 1.148-3(g), rebate payments (1) must be paid no later than 60 days after the computation date to which the payment relates, (2) are considered paid when the payment is filed with
the IRS as designated by the Commissioner of Internal Revenue (Commissioner), and (3) must be accompanied by the form provided by the Commissioner for this purpose (currently, Form
8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate).

Bulletin No. 2023–22 879 May 30, 2023
demand for public school bond guarantees
continues to grow as student populations
expand and existing school buildings
age. As a result, certain perpetual trust
funds that otherwise could provide credit
enhancement under the special exception
to the arbitrage restrictions for eligible
pledged funds under § 1.148-11(d)(1)(i)
will soon be limited in their capacity to
provide guarantees for tax-exempt bonds
at a time when there is a significant need
for such guarantees.
SECTION 3. SCOPE AND
APPLICATION
The Treasury Department and the IRS
intend to issue the forthcoming proposed
regulations to amend § 1.148-11(d)(1)(i)
(F) to provide that, as of the sale date of
the bonds to be guaranteed, the amount
of the bonds to be guaranteed by the
fund plus the then-outstanding amount of
bonds previously guaranteed by the fund
does not exceed a total amount equal to
500 percent of the total costs of the assets
held by the fund.
SECTION 4. RELIANCE ON THIS
NOTICE
This notice may be relied upon for
bonds sold on or after May 10, 2023, and
before the applicability date of future reg-
ulations or other published guidance under
§ 148 addressing or otherwise affecting
funds described in § 1.148-11(d)(1)(i) and
this notice.
SECTION 5. REQUEST FOR
COMMENTS
.01 Comments Regarding Guidance in
this Notice. The Treasury Department and
the IRS request comments on any ques-
tions arising from the interim guidance set
forth in this notice.
.02 Procedures for Submitting
Comments.
(1) Deadline. Written comments
should be submitted by July 31, 2023.
Consideration will be given, however, to
any written comment submitted after July
31, 2023, if such consideration will not
delay the issuance of the forthcoming pro-
posed regulations.
(2) Form and manner. The subject line
for the comments should include a refer-
ence to Notice 2023-39. All commenters
are strongly encouraged to submit com-
ments electronically. However, comments
may be submitted in one of two ways:
(a) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2023-0020 in the search
field on the regulations.gov homepage to
find this notice and submit comments); or
(b) By mail to: Internal Revenue Ser-
vice, CC:PA:LPD:PR (Notice 2023-39),
Room 5203, P.O. Box 7604, Ben Franklin
Station, Washington, D.C., 20044.
(3) Publication of comments. The Trea-
sury Department and the IRS will publish
for public availability any comment sub-
mitted electronically or on paper to its
public docket on www.regulations.gov.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice is
Johanna Som de Cerff, Office of the Chief
Counsel (Financial Institutions and Prod-
ucts). However, other personnel from the
IRS and the Treasury Department par-
ticipated in its development. For further
information regarding this notice, contact
Johanna Som de Cerff at (202) 317-6980
(not a toll-free number).
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2023-40
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month aver-
age segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the inter-
est rate on 30-year Treasury securities
under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008 and the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
gle-employer plans (except for CSEC plans
under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under
this provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during speci-
fied periods. To the extent provided under
§ 430(h)(2)(C)(iv), these segment rates
are adjusted by the applicable percentage
of the 25-year average segment rates for
the period ending September 30 of the
year preceding the calendar year in which
the plan year begins.
1
However, an elec-
tion may be made under § 430(h)(2)(D)
(ii) to use the monthly yield curve in place
of the segment rates.
Notice 2007-81, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Con-
sistent with the methodology specified in
Notice 2007-81, the monthly corporate
bond yield curve derived from April 2023
data is in Table 2023-4 at the end of this
notice. The spot first, second, and third
segment rates for the month of April 2023
are, respectively, 4.77, 4.97, and 5.13.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant
to § 430(h)(2)(C)(iv) to be within the
applicable minimum and maximum per-
centages of the corresponding 25-year
average segment rates. For this purpose,
any 25-year average segment rate that is
less than 5% is deemed to be 5%. The
25-year average segment rates for plan
years beginning in 2022 and 2023 were
1
Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).

May 30, 2023 880 Bulletin No. 2023–22
published in Notice 2021-54, 2021-41
I.R.B. 457, and Notice 2022-40, 2022-40
I.R.B. 266, respectively. The applicable
minimum and maximum percentages are
95% and 105% for a plan year beginning
in 2022 or 2023.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for May
2023 without adjustment for the 25-year
average segment rate limits are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
May 2023 2.85 4.02 4.19
The adjusted 24-month average seg-
ment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code. The
24-month averages applicable for May
2023, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates in accordance with § 430(h)(2)
(C)(iv) of the Code, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2022May 20234.755.185.92
2023May 20234.755.005.74
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the mini-
mum funding requirements that apply
to multiemployer plans pursuant to
§ 412. Section 431(c)(6)(B) specifies
a minimum amount for the full-fund-
ing limitation described in § 431(c)(6)
(A), based on the plan’s current liabil-
ity. Section 431(c)(6)(E)(ii)(I) provides
that the interest rate used to calculate
current liability for this purpose must
be no more than 5 percent above and
no more than 10 percent below the
weighted average of the rates of interest
on 30-year Treasury securities during
the four-year period ending on the last
day before the beginning of the plan
year. Notice 88-73, 1988-2 C.B. 383,
provides guidelines for determining the
weighted average interest rate. The rate
of interest on 30-year Treasury securi-
ties for April 2023 is 3.68 percent. The
Service determined this rate as the aver-
age of the daily determinations of yield
on the 30-year Treasury bond maturing
in February 2053. For plan years begin-
ning in May 2023, the weighted average
of the rates of interest on 30-year Trea-
sury securities and the permissible range
of rates used to calculate current liabil-
ity are as follows:
Treasury Weighted Average Rates
For Plan Years Beginning In30-Year Treasury Weighted AveragePermissible Range 90% to 105%
May 20232.622.36 to 2.75
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Notice 2007-81 provides guide-
lines for determining the minimum
present value segment rates. Pursuant to
that notice, the minimum present value
segment rates determined for April 2023
are as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
April 2023 4.77 4.97 5.13

Bulletin No. 2023–22 881 May 30, 2023
DRAFTING INFORMATION
The principal author of this notice
is Tom Morgan of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development
of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free numbers).

May 30, 2023 882 Bulletin No. 2023–22
Table 2023-4
Monthly Yield Curve for April 2023
Derived from April 2023 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.55.2920.55.1240.55.1360.55.1480.55.14
1.05.0921.05.1241.05.1361.05.1481.05.14
1.54.9121.55.1241.55.1361.55.1481.55.14
2.04.7722.05.1242.05.1362.05.1482.05.14
2.54.6822.55.1242.55.1362.55.1482.55.14
3.04.6223.05.1243.05.1363.05.1483.05.14
3.54.5823.55.1243.55.1363.55.1483.55.14
4.04.5724.05.1244.05.1364.05.1484.05.14
4.54.5724.55.1244.55.1364.55.1484.55.14
5.04.5925.05.1245.05.1365.05.1485.05.14
5.54.6125.55.1245.55.1365.55.1485.55.14
6.04.6426.05.1246.05.1366.05.1486.05.14
6.54.6726.55.1246.55.1366.55.1486.55.14
7.04.7127.05.1247.05.1367.05.1487.05.14
7.54.7527.55.1247.55.1367.55.1487.55.14
8.04.7828.05.1248.05.1368.05.1488.05.14
8.54.8228.55.1248.55.1368.55.1488.55.14
9.04.8629.05.1249.05.1369.05.1489.05.14
9.54.8929.55.1249.55.1369.55.1489.55.14
10.04.9230.05.1250.05.1370.05.1490.05.14
10.54.9530.55.1250.55.1370.55.1490.55.14
11.04.9831.05.1251.05.1471.05.1491.05.14
11.55.0031.55.1251.55.1471.55.1491.55.14
12.05.0232.05.1252.05.1472.05.1492.05.14
12.55.0432.55.1352.55.1472.55.1492.55.14
13.05.0533.05.1353.05.1473.05.1493.05.14
13.55.0733.55.1353.55.1473.55.1493.55.14
14.05.0834.05.1354.05.1474.05.1494.05.14
14.55.0934.55.1354.55.1474.55.1494.55.14
15.05.0935.05.1355.05.1475.05.1495.05.14
15.55.1035.55.1355.55.1475.55.1495.55.14
16.05.1136.05.1356.05.1476.05.1496.05.14
16.55.1136.55.1356.55.1476.55.1496.55.14
17.05.1137.05.1357.05.1477.05.1497.05.14
17.55.1137.55.1357.55.1477.55.1497.55.14
18.05.1238.05.1358.05.1478.05.1498.05.14
18.55.1238.55.1358.55.1478.55.1498.55.14
19.05.1239.05.1359.05.1479.05.1499.05.14
19.55.1239.55.1359.55.1479.55.1499.55.14
20.05.1240.05.1360.05.1480.05.14100.05.14

Bulletin No. 2023–22 883 May 30, 2023
26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 223; Part III § 54.9831-1)
Rev. Proc. 2023-23
SECTION 1. PURPOSE
This revenue procedure provides the
2024 inflation adjusted amounts for Health
Savings Accounts (HSAs) as determined
under § 223 of the Internal Revenue Code
and the maximum amount that may be
made newly available for excepted ben-
efit health reimbursement arrangements
(HRAs) provided under § 54.9831-
1(c)(3)(viii) of the Pension Excise Tax
Regulations.
SECTION 2. 2023 INFLATION
ADJUSTED ITEMS
.01 HSA Inflation Adjusted Items.
(1) Annual contribution limitation. For
calendar year 2024, the annual limitation
on deductions under § 223(b)(2)(A) for an
individual with self-only coverage under a
high deductible health plan is $4,150. For
calendar year 2024, the annual limitation
on deductions under § 223(b)(2)(B) for an
individual with family coverage under a
high deductible health plan is $8,300.
(2) High deductible health plan. For
calendar year 2024, a “high deductible
health plan” is defined under § 223(c)(2)
(A) as a health plan with an annual deduct-
ible that is not less than $1,600 for self-only
coverage or $3,200 for family coverage,
and for which the annual out-of-pocket
expenses (deductibles, co-payments, and
other amounts, but not premiums) do not
exceed $8,050 for self-only coverage or
$16,100 for family coverage.
.02 HRA Inflation Adjusted Item.
For plan years beginning in 2024,
the maximum amount that may be made
newly available for the plan year for an
excepted benefit HRA under § 54.9831-
1(c)(3)(viii) is $2,100. See § 54.9831-1(c)
(3)(viii)(B)(1) for further explanation of
this calculation.
SECTION 3. EFFECTIVE DATE
This revenue procedure is effective
for HSAs for calendar year 2024 and for
excepted benefit HRAs for plan years
beginning in 2024.
SECTION 4. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kyle Walker of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding § 223, HSAs, and excepted
benefit HRAs, contact Jason Sandoval at
(202) 317-5500 (not a toll-free number).
For further information regarding the cal-
culation of the inflation adjustments in this
revenue procedure, contact Mr. Walker at
(202) 317-4718 (not a toll-free number).

Bulletin No. 2023–22 i May 30, 2023
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 ap-
plied 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 be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing 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 previous-
ly 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 rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice 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.

May 30, 2023 ii Bulletin No. 2023–22
Numerical Finding List
1
Bulletin 2023–22
Announcements:
2023-2, 2023-2 I.R.B. 344
2023-1, 2023-3 I.R.B. 422
2023-3, 2023-5 I.R.B. 447
2023-4, 2023-7 I.R.B. 470
2023-5, 2023-9 I.R.B. 499
2023-6, 2023-9 I.R.B. 501
2023-8, 2023-14 I.R.B. 632
2023-9, 2023-15 I.R.B. 639
2023-10, 2023-16 I.R.B. 663
2023-7, 2023-17 I.R.B. 797
2023-11, 2023-17 I.R.B. 798
2023-12, 2023-17 I.R.B. 799
2023-13, 2023-18 I.R.B. 833
2023-14, 2023-19 I.R.B. 853
2023-16, 2023-20 I.R.B. 854
2023-15, 2023-21 I.R.B. 856
AOD:
2023-1, 2023-10 I.R.B. 502
2023-2, 2023-11 I.R.B. 529
Notices:
2023-4, 2023-2 I.R.B. 321
2023-5, 2023-2 I.R.B. 324
2023-6, 2023-2 I.R.B. 328
2023-8, 2023-2 I.R.B. 341
2023-1, 2023-3 I.R.B. 373
2023-2, 2023-3 I.R.B. 374
2023-3, 2023-3 I.R.B. 388
2023-7, 2023-3 I.R.B. 390
2023-9, 2023-3 I.R.B. 402
2023-10, 2023-3 I.R.B. 403
2023-11, 2023-3 I.R.B. 404
2023-12, 2023-6 I.R.B. 450
2023-13, 2023-6 I.R.B. 454
2023-16, 2023-8 I.R.B. 479
2023-17, 2023-10 I.R.B. 505
2023-18, 2023-10 I.R.B. 508
2023-20, 2023-10 I.R.B. 523
2023-19, 2023-11 I.R.B. 560
2023-21, 2023-11 I.R.B. 563
2023-22, 2023-12 I.R.B. 569
2023-23, 2023-13 I.R.B. 571
2023-24, 2023-13 I.R.B. 571
2023-26, 2023-13 I.R.B. 577
2023-25, 2023-14 I.R.B. 629
2023-27, 2023-15 I.R.B. 634
2023-28, 2023-15 I.R.B. 635
2023-31, 2023-16 I.R.B. 661
2023-30, 2023-17 I.R.B. 766
2023-33, 2023-18 I.R.B. 803
2023-34, 2023-19 I.R.B. 837
2023-36, 2023-21 I.R.B. 855
Notices:—Continued
2023-38, 2023-22 I.R.B. 872
2023-39, 2023-22 I.R.B. 877
2023-40, 2023-22 I.R.B. 879
Proposed Regulations:
REG-100442-22, 2023-3 I.R.B. 423
REG-146537-06, 2023-3 I.R.B. 436
REG-114666-22, 2023-4 I.R.B. 437
REG 122286-18, 2023-11 I.R.B. 565
REG-120653-22, 2023-15 I.R.B. 640
REG-105954-22, 2023-16 I.R.B. 713
REG-120080-22, 2023-16 I.R.B. 746
REG 109309-22, 2023-17 I.R.B. 770
REG 121709-19, 2023-17 I.R.B. 789
REG-124064-19, 2023-17 I.R.B. 789
Revenue Procedures:
2023-1, 2023-1 I.R.B. 1
2023-2, 2023-1 I.R.B. 120
2023-3, 2023-1 I.R.B. 144
2023-4, 2023-1 I.R.B. 162
2023-5, 2023-1 I.R.B. 265
2023-7, 2023-1 I.R.B. 305
2023-8, 2023-3 I.R.B. 407
2023-10, 2023-3 I.R.B. 411
2023-11, 2023-3 I.R.B. 417
2023-14, 2023-6 I.R.B. 466
2023-9, 2023-7 I.R.B. 471
2023-13, 2023-13 I.R.B. 581
2023-17, 2023-13 I.R.B. 604
2023-18, 2023-13 I.R.B. 605
2023-19, 2023-13 I.R.B. 626
2023-20, 2023-15 I.R.B. 636
2023-12, 2023-17 I.R.B. 768
2023-15, 2023-18 I.R.B. 806
2023-21, 2023-19 I.R.B. 837
2023-22, 2023-19 I.R.B. 838
2023-23, 2023-22 I.R.B. 883
Revenue Rulings:
2023-1, 2023-2 I.R.B. 309
2023-3, 2023-6 I.R.B. 448
2023-4, 2023-9 I.R.B. 480
2023-5, 2023-10 I.R.B. 503
2023-6, 2023-14 I.R.B. 627
2023-7, 2023-15 I.R.B. 633
2023-2, 2023-16 I.R.B. 658
2023-8, 2023-18 I.R.B. 801
2023-9, 2023-19 I.R.B. 835
Treasury Decisions:
9970, 2023-2 I.R.B. 311
9771, 2023-3 I.R.B. 346
9772, 2023-11 I.R.B. 530
9773, 2023-11 I.R.B. 557
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

Bulletin No. 2023–22 iii May 30, 2023
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2023–22
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

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