Internal Revenue Bulletin 2009-17 (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. 200
9-17
April 27, 2009
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.
INCOME TAX
Notice 2009–32, page 865.
2008 section 45K inflation adjustment factor.This no-
tice announces the inflation adjustment factor, the reference
price, and the credit amount for the nonconventional source
fuel credit for coke or coke gas (other than from petroleum
based products) for the 2008 calendar year.
Notice 2009–33, page 865.
This notice solicits applications for allocations of the present
total national bond volume limitation authority of $2.4 billion to
issue new clean renewable energy bonds (New CREBs) under
section 54C(a) of the Code to finance certain qualified projects
described in section 45(d). This notice also provides related
guidance on the following: (1) eligibility requirements that a
project must meet to be considered for a volume cap alloca-
tion; (2) application requirements and the application form for
requests for volume cap allocations; (3) the method that the
IRS will use to allocate the volume cap; and (4) certain aspects
of the applicable law and interim guidance in this area.
Notice 2009–35, page 876.
This notice provides the face amount of qualified school con-
struction bonds (QSCBs) allocated by the Department of the
Treasury to each state and large local education agency for
2009 under section 54F(d) of the Code. This notice also pro-
vides other limited interim guidance with respect to QSCBs.
Notice 2009–36, page 883.
This notice states that pursuant to the administration’s Home
Affordable Modification Program (HAMP), the United States
Government may make certain payments to a real estate
mortgage investment conduit (REMIC). It also states that if
those payments are “ contributions” subject to the 100 percent
contribution tax set forth in section 860G(d)(1) of the Code and
if none of the exceptions set forth in section 860G(d)(2) apply,
then regulations will be issued that will provide an exception
for such payments pursuant to section 860G(d)(2)(E).
Rev. Proc. 2009–23, page 884.
This procedure describes the conditions under which modifica-
tions to residential mortgage loans pursuant to the administra-
tion’s Home Affordable Modification Program (HAMP) will not
cause the IRS to challenge the tax status of real estate mort-
gage investment conducts (REMICs) or fixed investment trusts
or to assert that those modifications to mortgages held by a
REMIC give rise to a prohibited transaction.
Rev. Proc. 2009–24, page 885.
Automobile owners and lessees.This procedure provides
owners and lessees of passenger automobiles (including trucks
and vans) with tables detailing the limitations on depreciation
deductions for passenger automobiles first placed in service
during calendar year 2009 and the amounts to be included in
income for passenger automobiles first leased during calendar
year 2009.
EXCISE TAX
Notice 2009–34, page 876.
This notice extends the time for making claims pertaining to
biodiesel and biodiesel mixtures that was certified under the
old ASTM D6751 standard from April 1, 2009, set forth in
Notice 2008–110, 2008–51 I.R.B. 1298, to September 30,
2009. Notice 2008–110 modified.
Announcements of Disbarments and Suspensions begin on page 892.
Fi
nding Lists begin on page ii.
Index for January through April begins on page v.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d meet their tax responsibilities and by applying
the tax law with
integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
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, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement 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 rulings 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.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al 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, Leg-
islation 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 Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d 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 c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
April 27, 20092009–17 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 54C.—
New Clean
Renewable Ene
rgy Bonds
A notice that s
olicits applications for allocations of
the present to
tal national bond volume limitation au-
thority of $2.
4 billion to issue new clean renewable
energy bonds
(New CREBs) under section 54C(a) of
the Internal
Revenue Code (the “Code”) to finance
certain qual
ified projects described in section 45(d) of
the Code and p
rovides related guidance on the follow-
ing: (1) eli
gibility requirements that a project must
meet to be co
nsidered for a volume cap allocation; (2)
applicatio
n requirements and the application form for
requests fo
r volume cap allocations; (3) the method
that the IRS
will use to allocate the volume cap; and
(4) certain as
pects of the applicable law and interim
guidance in th
is area. See Notice 2009-33, page 865.
Section 1001.—Deter-
mination of Amount and
RecognitionofGainorLoss
26 CFR 1.100
1–3: Modifications of debt instruments.
This revenu
e procedure describes the conditions
under which
changes to certain mortgage loans will
not cause th
e Internal Revenue Service to challenge
the tax sta
tus of certain securitization vehicles that
hold the lo
ansortoassertthatthosemodifications
give rise to pr
ohibited transactions. See Rev. Proc.
2009-23, page
884.
Section 7701.—Definitions
26 CFR 301.7
701–4: Trusts.
This revenu
e procedure describes the conditions
under which
changes to certain mortgage loans will
not cause th
e Internal Revenue Service to challenge
the tax stat
us of certain securitization vehicles that
hold the loa
ns or to assert that those modifications
give rise t
o prohibited transactions. See Rev. Proc.
2009-23, p
age 884.
2009–17 I.R.B.864April 27, 2009

Part III. Administrative, Procedural, and Miscellaneous
Nonconventional Source Fuel
Credit, Section 45K Inflation
Adjustment Factor, and
Section 45K Reference Price
Notice 2009–32
SECTION 1. PURPOSE
This notice publishes the nonconven-
tional source fuel credit, inflation adjust-
ment factor, and reference price under
§ 45K of the Internal Revenue Code for
coke or coke gas (other than from petro-
leum based products) for calendar year
2008. The inflation adjustment factor and
the reference price are used to determine
the credit allowable under § 45K for coke
or coke gas. The calendar year 2008 in-
flation-adjusted credit applies to the sales
of barrel-of-oil equivalent of coke or coke
gas sold by a taxpayer to an unrelated
person during the 2008 calendar year, the
domestic production of which is attribut-
able to the taxpayer.
SECTION 2. BACKGROUND
Section 45K(a) provides for a credit
for producing fuel from a nonconventional
source, measured in barrel-of-oil equiva-
lent of qualified fuel, the production of
which is attributable to the taxpayer and is
sold by the taxpayer to an unrelated per-
son during the taxable year. For calendar
year 2008, the credit is available only for
coke or coke gas. The credit amount for
coke or coke gas is equal to the product of
$3.00 and the appropriate inflation adjust-
ment factor.
Section 45K(d)(1) provides that the
credit applies only to sales of qualified
fuels the production of which is within
the United States (within the meaning of
§ 638(1)) or a possession of the United
States (within the meaning of § 638(2)).
Section 45K(d)(2)(A) requires that the
Secretary, not later than April 1 of each cal-
endar year, determine and publish in the
Federal Register the inflation adjustment
factor and the reference price for the pre-
ceding calendar year.
Section 45K(d)(2)(B) defines “inflation
adjustment factor” for a calendar year as
a fraction the numerator of which is the
GNP implicit price deflator for the calen-
dar year and the denominator of which is
the GNP implicit price deflator for calen-
dar year 1979. The term “GNP implicit
price deflator” means the first revision of
the implicit price deflator for the gross na-
tional product as computed and published
by the Department of Commerce.
Section 45K(d)(2)(C) defines “refer-
ence price” to mean with respect to a
calendar year the Secretary’s estimate of
the annual average wellhead price per bar-
rel for all domestic crude oil the price of
which is not subject to regulation by the
United States.
Section 45K(d)(5) provides that the
term “barrel-of-oil equivalent” with re-
spect to any fuel generally means that
amount of the fuel that has a Btu content
of 5.8 million.
Section 45K(g)(1) provides that in the
case of a facility for producing coke or
coke gas (other than from petroleum based
products), which was placed in service
before January 1, 1993, or after June
30, 1998, and before January 1, 2010,
§ 45K(g) shall apply with respect to coke
or coke gas produced in such facility and
sold during the period beginning on the
later of January 1, 2006, or the date that
such facility is placed in service, and end-
ingonthedatewhichis4yearsafterthe
date such period began.
Section 45K(g)(2)(A) provides that the
amount of coke or coke gas sold during any
taxable year that may be taken into account
to compute the credit under § 45K with
respect to any facility shall not exceed an
average barrel-of-oilequivalent of 4,000
barrels per day.
Section 45K(g)(2)(B) provides that in
determining the amount of credit allow-
able to coke or coke gas sold after 2005,
the credit shall be computed by substitut-
ing “2004” for “1979.” Accordingly, for
purposes of § 45K(g), the inflation adjust-
ment factor for a calendar year is a fraction
the numerator of which is the GNP implicit
price deflator for the calendar year and the
denominator of which is the GNP implicit
price deflator for calendar year 2004.
Section 45K(g)(2)(D) provides that the
phase-out of the credit under § 45K(b)(1)
does not apply in the case of facilities pro-
ducing coke or coke gas.
SECTION 3. REFERENCE PRICE
The reference price for calendar year
2008 is $94.03.
SECTION 4. INFLATION
ADJUSTMENT AND CREDIT
AMOUNT
The inflation adjustment factor for cal-
endar year 2008 is 1.1183. The noncon-
ventional source fuel credit is $3.36 per
barrel-of-oil equivalent ($3.00 x 1.1183).
SECTION 5. DRAFTING
INFORMATION CONTACT
The principal author of this notice is
Jennifer C. Bernardini of the Office of
Associate Chief Counsel (Passthroughs
& Special Industries). For further in-
formation regarding this notice, contact
Jennifer C. Bernardini at (202) 622–3110
(not a toll-free call).
New Clean Renewable Energy
Bonds Application Solicitation
and Requirements
Notice 2009–33
SECTION 1. PURPOSE
This notice solicits applications for al-
locations of the present total national bond
volume limitation authority (“volume
cap”) of $2.4 billion to issue new clean
renewable energy bonds (“New CREBs”)
under § 54C(a) of the Internal Revenue
Code (the “Code”) to finance certain qual-
ified renewable energy facilities described
in § 45(d) of the Code (also referred to
in this notice as a qualified “project” or
“projects”). This notice also provides
related guidance on the following: (1)
eligibility requirements that a project must
meet to be considered for a volume cap
allocation; (2) application requirements
and the application form for requests for
volume cap allocations; (3) the method
that the Internal Revenue Service (“IRS”)
and the Treasury Department will use to
allocate the volume cap; and (4) certain
aspects of the applicable law and interim
guidance in this area.
April 27, 20098652009–17 I.R.B.

Applications for New CREB volume
cap allocations pursuant to this notice must
be filed in accordance with this notice by
the following application deadline: Au-
gust 4, 2009.
This notice will use the term “CREBs”
for clean renewable energy bonds issued
under § 54 and the term “New CREBs” for
new clean renewable energy bonds issued
under § 54C. To the extent that this notice
refers generally to the clean renewable en-
ergy bond program, the term “CREB pro-
gram” will be used.
SECTION 2. BACKGROUND
.01 Introduction
Section 1303 of the Energy Tax Incen-
tives Act of 2005, Pub. L. No. 109–58,
119 Stat. 594 (2005), added § 54 to the
Code. Section 54 originally provided for
a total national volume cap of $800 mil-
lion for CREBs to finance eligible clean
renewable energy projects and delegated
to the Secretary the authority to allocate
that volume cap, subject to the constraint
that the Secretary could allocate no more
than $500 million of that volume cap to
qualified borrowers that were governmen-
tal bodies (with the balance to be allocated
to qualified borrowers which were cooper-
ative electric companies). Section 54 orig-
inallyrequiredthatCREBshadtobeis-
sued by an expiration date of December 31,
2007.
Section 202 of the Tax Relief and
Health Care Act of 2006, Pub. L. No.
109–432, 120 Stat. 2922 (2006) (the
“2006 Act”), amended § 54 in three re-
spects. First, the 2006 Act increased the
total national bond volume cap for CREBs
from $800 million to $1.2 billion. Sec-
ond, the 2006 Act extended the expiration
date for the issuance of CREBs under the
total authorized national volume cap of
$1.2 billion from December 31, 2007, to
December 31, 2008. Third, the 2006 Act
increased the maximum allocations or re-
allocations to qualified borrowers which
are governmental bodies from $500 mil-
lion to $750 million (with the balance to
be allocated to cooperative electric com-
panies). In 2007, the IRS completed the
allocation with respect to the volume cap
under § 54 of the Code, as amended.
Section 15316 of the Food, Conserva-
tion, and Energy Act of 2008, Pub. L. No.
110–246, 122 Stat. 1651 (2008) (the “2008
Food Act”), added new § 54A to the Code.
Section 54A provides certain general pro-
gram requirements and operating rules for
qualified tax credit bonds. Section 54A(a)
provides that a taxpayer that holds a qual-
ified tax credit bond on one or more credit
allowance dates of the bond occurring dur-
ing any taxable year is allowed as a credit
against Federal income tax for the taxable
year an amount equal to the sum of the
credits determined under § 54A(b) with re-
spect to such dates.
Section 107 of the Energy Improve-
ment and Extension Act of 2008, Division
B of Pub. L. No. 110–343, 122 Stat.
3765 (2008) (the “2008 Energy Act”) (the
2008 Food Act and the 2008 Energy Act
are referred to collectively as the “2008
Acts”), added new § 54C to the Code to
provide for a new national volume cap
of $800 million for New CREBs to fi-
nance qualified renewable energy facili-
ties. Section 107(b) of the 2008 Energy
Act amended § 54A(d)(1) of the Code to
provide that the term qualified tax credit
bond, in part, means a New CREB that
is part of an issue that meets the require-
ments of § 54A(d)(2), (3), (4), (5), and (6)
regarding expenditures of bond proceeds,
information reporting,arbitrage, maturity
limitations, and prohibitions on financial
conflicts of interest, respectively. Sec-
tion 107(d) of the 2008 Energy Act pro-
vides that amendments to the Code made
by § 107 of the 2008 Energy Act apply to
obligations issued after October 3, 2008.
Section 1111 of Title I of Division B of
the American Recovery and Reinvestment
Act of 2009, Pub. L. No. 111–5, 123 Stat.
115 (2009) (the “2009 Act”), increased the
national bond volume cap for New CREBs
by $1.6 billion.
Section 107(c) of the 2008 Energy
Act extends the expiration date for the
issuance of CREBs under authority pre-
viously allocated by the IRS pursuant
to § 54 of the Code from December 31,
2008, to December 31,2009. In addition
to providing for authority to issue New
CREBs, the 2008 Acts amended certain
provisions and requirements applicable
to CREBs with respect to New CREBs
authorized under §§ 54A and 54C of the
Code. These amended requirements in-
clude: (1) requiring that 100 percent of the
“available project proceeds” (as defined
in § 54A(e)(4)) be used for capital expen-
ditures incurred for one or more qualified
renewable energy facilities; (2) reducing
the amount of annual CREB credit under
§ 54C to 70 percent of the amount deter-
mined under the general rules of § 54A(b);
(3) providing that not more than one-third
of the national volume cap of $800 mil-
lion may be allocated to qualified projects
owned by each of three types of qualified
owners, including public power providers,
governmental bodies, and cooperative
electric companies, respectively; (4) al-
lowing unrestricted investments of avail-
able project proceeds during a prescribed
three-year spending period and, subject to
certain restrictions, allowing investments
of certain sinking funds expected to be
used to repay the CREBs within certain
limitations; (5) permitting credit “strip-
ping” or separation of the ownership of a
qualified tax credit bond, including a New
CREB, and the entitlement to the credit
under § 54A with respect to a qualified
tax credit bond under regulations to be
promulgated by the Secretary; and (6)
omitting the requirement that the New
CREBs be repaid in equal annual install-
ments.
.02 New clean renewable energy bonds
under § 54C
Section 54C(a) provides that a “new
clean renewable energy bond” or New
CREB means any bond issued as part of
an issue if: (1) 100 percent of the available
project proceeds of such issue are to be
used for capital expenditures incurred by
qualified owners, including governmental
bodies, public power providers, or cooper-
ative electric companies, for one or more
qualified renewable energy facilities; (2)
the bond is issued by a qualified issuer;
and (3) the issuer designates such bond for
purposes of this section.
Section 54C(b) provides that the annual
credit amount under §54A(b) with respect
to any New CREB issued under § 54C
shall be 70 percent of the amount so de-
termined without regard to § 54C(b).
Section 54C(d)(6) defines a “qualified
issuer” as: (1) a public power provider;
(2) a cooperative electric company; (3) a
governmental body; (4) a clean renewable
energy bond lender; or (5) a not-for-profit
electric utility that has received a loan or
loan guarantee under the Rural Electrifica-
tion Act. Section 54C(d)(2) provides that
2009–17 I.R.B.866April 27, 2009

the term “public power provider” means
a State utility with a service obligation,
as such terms are defined in § 217 of the
Federal Power Act (as in effect on the
date of the enactment of this paragraph).
Section 54C(d)(3) provides that the term
“governmental body” means any State (in-
cluding the District of Columbia and any
possession of the United States) or Indian
tribal government, or any political subdivi-
sion thereof. Section 54C(d)(4) provides
that the term “cooperative electric com-
pany” means a mutual or cooperative elec-
tric company described in § 501(c)(12) or
§ 1381(a)(2)(C). Section 54C(d)(5) pro-
vides that the term “clean renewable en-
ergy bond lender” means a lender that is
a cooperative that is owned by, or has out-
standing loans to, 100 or more cooperative
electric companies and is in existence on
February 1, 2002, and shall include any af-
filiated entity controlled by such lender.
Section 54C(d)(1) defines the term
“qualified renewable energy facility” to
mean any of the following qualified facil-
ities (as determined under § 45(d) without
regard to paragraphs (8) and (10) thereof
and to any placed in service date) owned
by a public power provider, a governmen-
tal body, or a cooperative electric com-
pany: (1) a wind facility under § 45(d)(1);
(2) a closed-loop biomass facility under
§ 45(d)(2); (3) an open-loop biomass fa-
cility under § 45(d)(3); (4) a geothermal
or solar energy facility under § 45(d)(4);
(5) a small irrigation power facility un-
der § 45(d)(5); (6) a landfill gas facility
under § 45(d)(6); (7) a trash combustion
facility under § 45(d)(7); (8) a qualified
hydropower facility under § 45(d)(9); and
(9) a marine and hydrokinetic renewable
energy facility under § 45(d)(11).
Section 54C(c) provides that the na-
tional bond volume cap for New CREBs
is $2.4 billion. Section 54C(c)(2) pro-
vides that the Secretary shall allocate no
more than one third of the volume cap to
qualified projects owned by public power
providers, governmental bodies, and co-
operative electric companies, respectively.
Section 54C(c)(3)(A) provides that with
respect to public power providers, after the
Secretary identifies the qualified projects
of public power providers that are appro-
priate for receivingan allocation of the
CREB volume cap, the Secretary shall,
to the maximum extent practicable, make
allocations among such projects in such
manner that the amount allocated to each
such project bears the same ratio to the
cost of such project as the portion of the
CREB volume cap that may be allocated
to public power providers bears to the cost
of all such projects. Section 54C(c)(3)(B)
provides that with respect to governmen-
tal bodies and cooperative electric com-
panies, the Secretary shall make alloca-
tions of the respective CREB volume caps
among qualified projects of governmental
bodies and cooperative electric companies
in such manner as the Secretary determines
appropriate.
SECTION 3. APPLICATION
REQUIREMENTS IN GENERAL
Each application for an allocation of
the New CREBs volume cap under
§ 54C (“Application”) must be prepared
and submitted in accordance with this
section. In order for an Application to
comply with this section, among other
things, the Application must be prepared
in substantially the form attached to
this notice as Appendix A, subject to
such minor changes or variations as
the IRS and the Treasury Department
may approve in their discretion. This
notice, including Appendix A, may
be found on the IRS web site at
http://www.irs.gov/taxexemptbond/index.html
orhttp://www.irs.gov/pub/irs-drop/.By
submitting an Application, the applicant
agrees to comply withthe requirements of
this notice.
a.Qualified issuer. An Application
must be submitted by a qualified issuer
within the meaning of § 54C(d)(6). A
“qualified issuer” is: (1) a public power
provider (as defined in § 54C(d)(2)); (2) a
cooperative electric company (as defined
in § 54C(d)(4)); (3) a governmental body
(as defined in § 54C(d)(3)); (4) a New
CREB lender (as defined in § 54C(d)(5));
or (5) a not-for-profit electric utility that
has received a loan or loan guarantee under
the Rural Electrification Act. An Applica-
tion must identify the qualified issuer (in-
cluding the qualified issuer’s Federal tax
identification number) and must demon-
strate that the entity constitutes a qualified
issuer within the meaning of § 54C(d)(6).
b.Signatures. An Application must be
signed and dated by, and must include the
printed name and title of, an authorized of-
ficial of the qualified issuer. For purposes
of this notice, the term “authorized official
of the qualified issuer” means an officer,
board member, employee, or other official
of the qualified issuer who is duly autho-
rized to execute legal documents on behalf
of the qualified issuer in connection with
incurring debt of the qualified issuer (e.g.,
a mayor, chairperson of a city council,
chairperson of a board of directors, county
or city administrator or manager, chief ex-
ecutive officer or chief financial officer),
similar to the kind of duly authorized offi-
cial of an issuer who would be authorized
to execute documents in connection with
an issuer’s declaration of official intent to
reimburse expenditures from the proceeds
of a borrowing under § 1.150–2(e), Income
Tax Regs.
c.Contact person. An Application
must designate one or more persons with
knowledge regarding the project that the
qualified issuer duly authorizes to discuss
with the IRS any information relating to
the Application. The designation must in-
clude the designee’s name, title, telephone
number, fax number, and mailing address.
If a designee is not an official or officer of
the issuer, the Application must include an
executed Form 8821 (Taxpayer Informa-
tion Authorization), authorizing the disclo-
sure of taxpayer information specifically
relating to the Application to the designee.
d.Addresses. An Application must be
submitted by hard copy in duplicate ac-
companied by a copy of the Application in
electronic format on compact disc (“CD”)
by mail to the IRS, TEB CREBs Alloca-
tions, 1122 Town & Country Commons,
St. Louis, Missouri 63017.
e.Due date. An Application must be
filed with the IRS on or before the Appli-
cation deadline of August 4, 2009.
f.Project description. Each Applica-
tion must contain the information required
by this subsection f.
(i)Qualified owner. Each Application
must identify the public power provider,
governmental body, or cooperative elec-
tric company expected to own the quali-
fied renewable energy facility. A “public
power provider” is a State utility with a
service obligation, as such terms are de-
fined in § 217 of the Federal Power Act
(as in effect on October 3, 2008). A “gov-
ernmental body” is any State or Indian
Tribal government, or any political sub-
division thereof (within the meaning of
§ 103 of the Code). A “cooperative electric
April 27, 20098672009–17 I.R.B.

company” is a mutual or cooperative elec-
tric company described in §§ 501(c)(12)
or 1381(a)(2)(C) of the Code. The Ap-
plication must demonstrate that the entity
is a public power provider, governmen-
tal body, or cooperative electric company
within the meaning of § 54C(d)(2), (3), and
(4), respectively.
(ii)Qualified project. Each Applica-
tion must describe in reasonable detail
the qualified renewable energy facility
or facilities constituting the project to be
financed with the proceeds of the New
CREBs. The Application must demon-
strate that each projectwill constitute a
“qualified renewable energy facility” un-
der § 54C(d)(1). The Application must
indicate the expected date that the acquisi-
tion and construction of each project will
commence and the expected date that each
project will be placed in service.
The Application must contain a certi-
fication by an independent, licensed en-
gineer that each project will meet the re-
quirements for a “qualified facility” under
§ 45(d) (but without regard to § 45(d)(8)
and (10) and to any placed in service date),
and that the project will be technically vi-
able and will produce electricity.
If the project is a qualified hydropower
facility under § 45(d)(9) producing incre-
mental hydropower production (as defined
under § 45(c)(8)(B)), then the certification
also must state that the project consists
only of efficiency improvements or addi-
tions to capacity that produce additional
production as described in § 45(c)(8)(B)
based on a methodology that would meet
Federal Energy Regulatory Commission
(FERC) standards. If the project is a qual-
ified hydropower facility under § 45(d)(9)
for qualified hydropower production at a
nonhydroelectric dam under § 45(c)(8)(C),
then the certification also must state that:
(i) the facility, when constructed, will
meet FERC licensing requirements and
other applicable environmental, licensing
and regulatory requirements; and (ii) the
facility will be operated so that the water
surface elevation at any given location
and time that would have occurred in the
absence of the hydroelectric project is
maintained, subject toany license require-
ments imposed under applicable law that
change the water surface elevation for
the purpose of improving environmental
quality of the affected waterway.
(iii)Prior allocations and related
projects. Each Application must describe
the amount of CREB volume cap previ-
ously allocated to each project under § 54
of the Code described in the Application
and to any “related projects.” For purposes
of this notice and the Application, the term
“related projects” means projects that are
owned by the same entity, or a “related
party” as defined in § 1.150–1(b), that are
of the same type under § 45(d), located
on the same site, and integrated, intercon-
nected, or directly or indirectly dependent
on each other, based on all the facts and
circumstances (“Related Projects”). For
purposes of the allocation methodology
described in section 6 of this notice, a
facility the construction of which causes
an increase in capacity (measured in units
of power) of a project for which an Ap-
plicant previously received an allocation
under § 54 will not be treated as a Related
Project with respect to such project.
(iv)Location of project. The Appli-
cation must indicate the location of the
project.
(v)Regulatory approvals. The Applica-
tion must describe a plan to obtain all nec-
essary Federal, state and local regulatory
approvals for the project.
g.Plan of financing. The Applica-
tion must contain a reasonably detailed de-
scription of the plan of financing for the
project, including all reasonably expected
sources and uses of financing and other
funds, the status of such financing, the an-
ticipated date of bond issuance, the sources
of security and repayment for the bonds,
the aggregate face amount of bonds ex-
pected to be issued for the project, and the
issuer’s reasonably expected schedule for
spending proceeds of New CREBs. If the
owner intends to use the proceeds of New
CREBs to reimburse amounts paid with
respect to a qualified project, the Appli-
cation must demonstrate that the require-
ments under § 54A(d)(2)(D) will be met.
h.Dollar amount of allocation re-
quested. The Application must specify the
dollar amount of the volume cap requested
for the project.
SECTION 4. REQUIRED
DECLARATIONS IN APPLICATIONS
Each application submitted under this
notice must include the following declara-
tion signed and dated by an authorized of-
ficial of the qualified issuer who has per-
sonal knowledge of the relevant facts and
circumstances: “Under penalties of per-
jury, I declare that Ihave examined this
document and, to the best of my knowl-
edge and belief, all of the facts contained
herein are true, correct, and complete.”
SECTION 5. CONSENT TO
DISCLOSURE OF ALLOCATION
In order to provide the public with in-
formation on how the volume cap autho-
rized by Congress has been allocated and
to facilitate oversight of the CREB pro-
gram, the IRS intends to publish the re-
sults of the allocation process. The infor-
mation will be the most useful to the pub-
lic if it identifies the specific allocations
awarded. Pursuant to § 6103, consent is
required in order for the IRS to disclose
identifying information with respect to ap-
plicants awarded an allocation. Therefore,
the IRS requests that each applicant submit
with the Application a declaration consent-
ing to the disclosure by the IRS of the name
of the applicant (issuer), the name of the
qualified renewable energy facility owner
(if other than the issuer), the type and loca-
tion of the qualified renewable energy fa-
cility that is the subject of the Application,
and the amount of the New CREBs volume
cap allocation for such facility in the event
the facility receives an allocation. To pro-
vide valid consent, the declaration must be
in the form set forth in Appendix B. An ap-
plicant is not requiredto provide a declara-
tion consenting to disclosure in order to re-
ceive an allocation. The IRS will not pub-
lish identifying information with respect to
applications that are not awarded an allo-
cation of volume cap or while applications
are pending.
SECTION 6. VOLUME
CAP ALLOCATIONS AND
METHODOLOGY
a.In general. New CREB volume
cap under § 54C will be allocated in ac-
cordance with this section for qualified
projects for which Applications meeting
the requirements of this notice have been
filedwiththeIRSonorbeforetheAp-
plication deadline set forth in this notice.
For purposes of this section 6, all Related
Projects, as defined in section 3(f)(iii), will
be treated as a single project.
2009–17 I.R.B.868April 27, 2009

b.Allocation methodology for govern-
mental bodies and cooperative electric
companies. Up to one-third of the total
national volume cap will be allocated to
qualified projects owned by governmental
bodies and up to an additional one-third
of the total national volume cap will be
allocated to qualified projects owned by
cooperative electric companies. With re-
spect to each such category of qualified
owners, the full amount of volume cap
requested will be allocated beginning with
the project for which the smallest dollar
amount of volume cap has been requested
and continuing with the project for which
the next-smallest dollar amount of vol-
ume cap has been requested until the total
amount of volume cap set aside for that
category of qualified owners has been ex-
hausted or until all applications from that
category of qualified owners have been
granted, whichever occurs first. For this
purpose, except for projects consisting
of increases in capacity as described in
section 3(f)(iii) of this notice, any amount
of the CREB volume cap previously allo-
cated to a project under § 54 (for CREBs)
of the Code will be taken into account
by increasing the amount requested for
that project in the Application submitted
pursuant to this notice by the amount pre-
viously allocated tothe project. A project
that causes an increase in capacity of an
existing project or of a project that was
previously allocated CREB volume cap
under § 54 will be treated as a separate,
new project for purposes of the allocation
of New CREBs volume cap under this
section.
c.Allocation methodology for public
power providers.Uptoone-thirdoftheto-
tal national volume cap will be allocated to
qualified projects owned by public power
providers using thepro rataallocation
method described below. The amount of
volume cap allocated to a project for a
public power provider will bear the same
proportion to the national volume cap al-
located to public power providers as the
amount of volume cap requested for that
project bears to the total amount of volume
cap requested for all projects by public
power providers.
SECTION 7. INSUBSTANTIAL
DEVIATIONS FROM APPLICATION
PROVISIONS
Generally, any allocation of CREBs or
New CREBs volume cap is valid for pur-
poses of § 54 or § 54C, respectively, with
respect to bonds issued pursuant to such
allocation that are used to finance quali-
fied renewable energy facilities described
in the application. An allocation of CREBs
or New CREBs under §§ 54 and 54C, re-
spectively, is also valid notwithstanding
insubstantial deviations with respect to the
information submitted in the Application.
Whether a deviation with respect to the in-
formation submitted in the Application is
insubstantial is determined based on all the
facts and circumstances using criteria sim-
ilar to those used under § 5f.103–2(f)(2)
and Prop. Reg. § 1.147(f)–1(b)(6), as
amended from time to time, relating to the
insubstantial deviation in the information
required for public approval of an issue of
governmental bonds under § 147(f) of the
Code. Applications for approval of spe-
cific insubstantial deviations must be sub-
mitted by hard copy and in electronic for-
mat on compact disk (“CD”) by mail to
IRS, TEB CREBs Determinations, 1122
Town & Country Commons, St. Louis,
Missouri 63017. An application for ap-
proval of a specific insubstantial deviation
must include (a) a detailed description of
the proposed deviation, (b) facts establish-
ing the continued technical viability of the
project and that no other taxpayer or the
Government will be prejudiced, (c) a copy
of the allocation letter issued by the IRS,
and (d) a declaration pursuant to section 4
of this notice signed by an authorized per-
son in accordance with section 3.b. of this
notice.
SECTION 8. INFORMATION
REPORTING
Section 54A(d)(3) requires issuers of
New CREBs to submit information re-
porting returns to the IRS similar to those
requiredtobesubmittedunder§149(e)
for tax-exempt State or local governmen-
tal bonds. These information reporting
returns are required to be submitted at
thesametimeandinthesamemanner
as those under § 149(e) on such forms as
shall be prescribed by the IRS for such
purpose. Pending further guidance from
the IRS regarding the applicable forms to
be used for such information reporting for
New CREBs, in the case of an issue of
New CREBs, the issuer must submit to the
IRS an information return on Form 8038,
Information Return for Tax-Exempt Pri-
vate Activity Bond Issues, at the same time
and in the same manner as required under
§ 149(e), with modifications as described
below. Issuers of New CREBs should
complete Part II of Form 8038 by check-
ing the box on Line 20c (Other), writing
“New Clean Renewable Energy Bonds”
or “New CREBs” in the space provided
for the bond description, and entering the
issue price of the New CREBs in the Issue
Price column. For purposes of this notice,
the term “issue” has the meaning used for
tax-exempt bond purposes in § 1.150–1(c).
SECTION 9. RELIANCE ON NOTICE
AND INTERIM GUIDANCE
(a)Generally
Pending the promulgation and effec-
tive date of applicable future regulations or
other published administrative guidance,
taxpayers may rely on the interim guidance
provided in this notice and, to the extent
not inconsistent with §§ 54A and 54C and
this notice, taxpayers may also rely on No-
tice 2006–7, 2006–1 C.B. 559 (March 6,
2006), and Notice 2007–26, 2007–1 C.B.
870 (April 2, 2007).
(b)Credit Rate
For New CREBs issued under § 54C,
the credit rate is determined as of the
date that the issue of New CREBs is sold.
The New CREB credit rate is published
for that date by the Bureau of Public
Debt on its Internet site for State and
Local Government Series securities at:
https://www.treasurydirect.gov. The credit
rates will be determined by the Treasury
Department in accordance with Notice
2009–15, 2009–6 I.R.B. 449 (February 9,
2009).
(c)Maximum term
The maximum term for a New CREB
is determined under § 54A(d)(5) by using
a discount rate equal to 110 percent of
the long-term adjusted AFR, compounded
semi-annually, for the month in which
the bond is sold. For purposes of this
notice, a bond is “sold” on the first day
on which there is a binding written con-
tract for the sale or exchange of the bond.
The maximum term for a New CREB is
April 27, 20098692009–17 I.R.B.

published daily by the Bureau of Pub-
lic Debt on its Internet site for State and
Local Government Series securities at:
https://www.treasurydirect.gov.
(d)Permitted sinking fund yield
Section 54A(d)(4)(C) provides that an
issue shall not be treated as failing to meet
thearbitragerequirementsof§148by
reason of any fund which is expected to
be used to repay the issue if: (i) the fund
is funded at a rate not more rapid than
equal annual installments; (ii) the fund is
funded in a manner reasonably expected
to result in an amount not greater than an
amount necessary to repay the issue; and
(iii)theyieldonsuchfundisnotgreater
than the discount rate determined under
§ 54A(d)(5)(B) (the “permitted sinking
fund yield”).
The permitted sinking fund yield is
determined under § 54A(d)(5)(B) by us-
ing a rate equal to 110 percent of the
long-term adjusted AFR, compounded
semi-annually, for the month in which
the bond is sold. The IRS publishes the
long-term adjusted AFR, compounded
semi-annually, each month in a revenue
ruling published in the Internal Revenue
Bulletin. The Bureau of Public Debt pub-
lishes the permitted sinking fund yield for
each month on its Internet site for State
and Local Government Series securities
at:https://www.treasurydirect.gov.
(e)Joint ownership of qualified renew-
able energy facilities
Joint ownership of qualified renew-
able energy facilities financed with New
CREBs will be recognized in a manner
similar to the recognition of joint owner-
ship of output projects under the private
activity bond restrictions on tax-exempt
bonds under § 141.
(f)Allocation and accounting
In determining whether all or a part of
a facility will be eligible to be a qualified
renewable energy facility for New CREBs
purposes, allocation and accounting rules
similar to those employed for mixed-use
projects will be applied.
(g)Qualified expenditures
For purposes of the requirement un-
der § 54C(a)(1) to use 100 percent of
the available project proceeds of an is-
sue of New CREBs for qualified costs
to finance capital expenditures for quali-
fied renewable energy facilities, available
project proceeds used to finance a re-
serve, sinking, or replacement fund (e.g.,
a debt service reserve fund to secure the
New CREBs), including a Qualified Tax
Credit Bond sinking fund, will be treated
as nonqualified costs. Except in limited
circumstances involving reimbursements
to which § 54A(d)(2)(D) applies, costs
of acquiring existing facilities, including
refinancing costs (as contrasted with costs
of enhancements, repair, or rehabilitation
of existing facilities), generally will be
treated as nonqualified costs for purposes
of the 100 percent use of proceeds test
under § 54C(a)(1).
(h)Coordination with tax credit under
§45K
A qualified renewable energy facility
under § 54C(d)(1) shall include a quali-
fied facility under § 45(d)(6) without re-
gard to the limitation under § 45(e)(9)(A)
(which limitation disallows the renewable
electricity production credit under § 45 for
certain facilities which receive the non-
conventional source production credit un-
der § 45K), provided that the owner of the
qualified renewable energy facility has not
been allowed a credit under § 45K during
any taxable year with respect to landfill gas
to be used by the qualified renewable en-
ergy facility.
(i)Cooperative electric companies
treated like state or local governmental
entities
Cooperative electric companies under
§ 54C(d)(4) will be treated as “govern-
mental persons” under § 1.141–1(b) for
purposes of (1) applying the arbitrage
investment restrictions under § 148, in-
cluding the program investment definition
under § 1.148–1(b), and (2) determining
whether New CREBs are private activ-
itybondsunder§141inapplyingany
particular arbitrage investment restriction
that depends on whether bonds are private
activity bonds.
(j)Expiration of allocation
An allocation of New CREBs volume
cap is valid for 3 years after the date of
the letter issuing the allocation (the “allo-
cation date”). An allocation of unused vol-
ume cap will expire and revert back to the
IRS on the first day following 3 years after
the allocation date. Any bonds issued pur-
suant to such expired allocation will not be
New CREBs for purposes of §§ 54A and
54C. Under a program to be announced,
the IRS plans to reallocate any unallocated
volume cap, and any allocated volume cap
that has been relinquished or that has re-
verted to the IRS. For purposes of realloca-
tion, relinquished volume cap means vol-
ume cap previously allocated to a quali-
fied issuer to finance a qualified project for
which the IRS has received written notice
from a duly authorized official of the qual-
ified issuer stating that the issuer will not
issue CREBs pursuant to the allocation.
To facilitate reallocation of the unused
New CREBs volume cap, a qualified is-
suer that determines it will not issue bonds
within 3 years from the allocation date
must notify the IRS of such determination
in writing within 90 days after the deter-
mination is made. If no determination is
made, a qualified issuer that fails to issue
bonds pursuant to its allocation within the
3-year period must notify the IRS of such
failure within 90 days after the end of the
3-year period. The notification must in-
clude a copy of the original allocation let-
ter and must be submitted by hard copy
and in electronic format on compact disk
(“CD”) by mail to the IRS, TEB CREBs
Forfeiture, 1122 Town & Country Com-
mons, St. Louis, Missouri 63017.
Consistent with allocation require-
ments under § 54C(c)(2), any relinquished
or reverted New CREB volume cap under
§ 54C will be reallocated only for a quali-
fied project owned or to be owned by the
same category of qualified owner as the
owner that originally received the relin-
quished or reverted allocation. The IRS
does not plan to reallocate any unused,
relinquished, or unallocated portion of the
CREB volume cap authorized under § 54
of the Code.
SECTION 10. EFFECT ON OTHER
DOCUMENTS
To the extent not amended by the 2008
Acts and 2009 Act, references to § 54 of
the Code under Notice 2006–7 and Notice
2007–26 apply as if the references were to
corresponding provisions of §§ 54A and
54C.
SECTION 11. DRAFTING
INFORMATION
The principal authors of this notice are
Zoran Stojanovic and Timothy L. Jones of
the Office of Associate Chief Counsel (Fi-
nancial Institutions and Products). How-
ever, other personnel from the IRS and
the Treasury Department participated in its
2009–17 I.R.B.870April 27, 2009

development. For further information re-
garding this notice and the Application,
contact Janae Lemley at (636) 255–1202
(not a toll-free call).
APPENDIX A
APPLICATION FOR ALLOCATION OF
NEW CLEAN RENEWABLE ENERGY BOND VOLUME CAP
Internal Revenue Service
TEB CREBs Allocations
1122 Town & Country Commons
St. Louis, Missouri 63017
The following constitutes the application (“Application”) of (Name) (the “Applicant”) for allocation of new clean renewable
energy bond (“New CREB”) volume cap under section 54C(c) of the Internal Revenue Code (the “Code”) (unless otherwise
noted, section references herein are to the Code) to finance the project described below. (If a single Application is used to
request New CREB volume cap for more than one project, then all of the required information in the Application must be
provided separately for each project.)
1. Name of Applicant/Issuer
Street Address
CityStateZip
Telephone NumberFax Number
Taxpayer Identification Number
2. Status of Issuer—(Select as appropriate)
The Applicant/Issuer is a “qualified issuer” under section 54C(d)(6) because it is —
(i) a “clean renewable energy lender” that is a cooperative owned by, or has outstanding loans to, 100 or more
cooperative electrical companies and was in existence on February 1, 2002, or is an affiliate that is owned by
such a lender, as demonstrated by the attached documents included as Exhibit D.
(ii) a “cooperative electric company” that is a mutual or cooperative electric company described in section
501(c)(12) or section 1381(a)(2)(C), as demonstrated by the attached documents included as Exhibit D, including
a copy of the determination letter previously obtained from the IRS, if any (or other relevant documents).
(iii) a “governmental body” that is a State, a possession of the United States, the District of Columbia, an Indian
tribal government, or any political subdivision of the foregoing, as demonstrated by the attached documents
included as Exhibit D.(Supporting documents are not required to be attached for governmental bodies that
are general purpose governmental entities with substantial taxing, eminent domain,andpolice powers such as
generally a county, city, municipality, township, or borough.)
(iv) a “public power provider” that is a State utility with a service obligation, as such terms are defined in section
217 of the Federal Power Act (as in effect on October 3, 2008), as demonstrated by the attached documents
included as Exhibit D.
(v) a “not-for-profit electric utilitywhich has received a loan or loan guarantee under the Rural Electrification Act,”
as demonstrated by the attached documents included as Exhibit D. For this purpose, supporting documents
should include copies of the articles of incorporation and bylaws of the not-for-profit electric utility, and of
the loan or loan guarantee documents.
3. Name of Qualified Renewable Energy Facility Owner
Street Address
CityStateZip
Telephone NumberFax Number
4. Status of Owner—(Select as appropriate)
The Owner is a qualified entity undersection 54C(d)(1) because it is —
April 27, 20098712009–17 I.R.B.

(i)
a qualified owner under section 54C(d)(4) that is a mutual or cooperative electric company under section
501(c)(12) or section 1381(a)(2)(C), as demonstrated by the attached documents included as Exhibit D, including
a copy of the determination letter previously obtained from the IRS, if any (or other relevant documents).
(ii)
a qualified owner under section 54C(d)(3) that is a “governmental body” and is a State, a possession of
the United States, the District of Columbia, an Indian tribal government, or any political subdivision of the
foregoing, as demonstrated by the attached documents included as Exhibit D.(Supporting documents are not
required to be attached for governmental bodies that are general purpose governmental entities with substantial
taxing, eminent domain,andpolice powers such as generally a county, city, municipality, township, or borough.)
(iii)
a qualified owner under section 54C(d)(2) that is a “public power provider” and is a State utility with a service
obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on October 3, 2008), as
demonstrated by the attached documents included as Exhibit D. For this purpose, supporting documents should
include copies of the articles of incorporation and bylaws of the electric utility.
5.
Name of Qualified Renewable Energy Facility.
6. Detailed Description of the Qualified Renewable Energy Facility.A reasonably detailed description of the
qualified renewable energy facility (the “Project”) is set forth below or in attached Exhibit A, including reasonably
expected costs of components, such as land, site prep, equipment, installation, other dedicated facilities such as
transmission, Project capacity and projected or expected use of the power produced at the Project:
7.
Qualified Renewable Energy Facility.The Project is a “qualified renewableenergy facility” within the meaning
of section 54C(d)(1) of the Code becauseit is a “qualified facility” (as determined under section 45(d) of the Code
without regard to section 45(d)(8) and (10) and to any placed in service date) that is(select as appropriate)—
(1) a wind facility — a facility using wind to produce electricity;
(2) a closed-loop biomass facility — a facility using closed-loop biomass (asdefinedinsection45(c))toproduce
electricity or, if owned by the taxpayer prior to January 1, 2008, a facility using closed-loop biomass to produce
electricity which is modified to use closed-loop biomass to co-fire with coal, with other biomass, or with both,
but only if the modification is approved under the Biomass Power for Rural Development Programs or is part of
a pilot project of the Commodity Credit Corporation;
(3) an open-loop biomass facility — a facility using open-loop biomass (as defined in section 45(c)) to produce
electricity and in the case of a facility using agricultural livestock waste nutrients, the nameplate capacity rating of
which is not less than 150 kilowatts;
(4) a geothermal or solar energy facility — a facility using geothermal energy (as defined in section 45(c)) or solar
energy to produce electricity (not including a facility described in section 48(a)(3) the basis of which is taken into
account by the taxpayer for purposes of determining the energy credit under section 48 of the Code);
(5) a small irrigation power facility— a facility using small irrigation power (as defined in section 45(c)) to
produce electricity;
(6) a landfill gas facility — a facility producing electricity from gas derived from the biodegradation of municipal
solid waste (as defined in section 45(c));
(7) a trash combustion facility — a facility that burns municipal solid waste (as defined in section 45(c)) to produce
electricity;
(8) a qualified hydropower facility — a facility engaged in qualified hydropower production (as defined in section
45(c)); or
(9) a marine and hydrokinetic renewable energy facility — a facility producing electricity from marine and
hydrokinetic renewable energy (as defined in section 45(c)) with a nameplate capacity of at least 150 kilowatts.
8. Construction Commencement Date and Placed in Service Date. The Borrower begun or expects to begin the
construction, installation and equipping of the Project on
. The Borrower expects that the
Project will be placed into service on or before
.
2009–17 I.R.B.872April 27, 2009

9. Independent Engineer’s Certificate:(If the Application is for more than one Project, a separate certificate must be
included for each Project.)Attached as Exhibit B hereto is a certificationbyanindependent,licensed engineer to the
effect that the Project will be a “qualified renewable energy facility” within the meaning of section 54C(d)(1) and a
“qualified facility” within the meaning of section 45(d) ofthe Code (without regard to section 45(d)(8) and (10) of the
Code and to any placed in service date), and that the project is technically viable and will produce electricity.
If the project is aqualified hydropower facilityunder section 45(d)(9)—
a.producing incremental hydropower production, then the engineering certificate also must state that the project
consists only of efficiency improvements or additions tocapacity that produce additional production as described
in section 45(c)(8)(B) based on a methodology that would meet Federal Energy Regulatory Commission (FERC)
standards; or
b.
that is a nonhydroelectric dam under section 45(c)(8)(C), then the engineering certificate also must state that
the facility, when constructed, (a) will meet FERC licensing requirements and other applicable environmental,
licensing and regulatory requirements, and (b) will be operated so thatthe water surface elevation at any given
location and time that would have occurred in the absenceof the hydroelectric projectis maintained, subject to
any license requirements imposed under applicable law that change the water surface elevation for the purpose
of improving environmental quality of the affected waterway.
10. Location of the Project:
Project address or physical location (do not include postal box numbers or mailing address)
CityStateZip
County where Project is located
11. Individual to contactfor more information about the Project:
Individual Name and Title
Company Name
Street Address
CityStateZip
Telephone Number
Fax Number
Email Address
(Include as appropriate)The contact person is not an authorized official or officer of the Issuer and a properly
executed Form 8821 is included with this Application that authorizes the disclosure by the IRS of information that
relates to this Application and the Project(s) described above to the contact person.
12. Regulatory Approvals. Identify each regulatory body, the action that must be taken, status of any pending action and
the remaining timeframe required to obtain each required approval such as a FERC approval, or siting permits. The
plan of the Applicant for obtaining such approvals is as follows:(orattachanExhibit)
13. Plan of Financing. Include a reasonably detailed description of the plan of financing for the Project, including all
reasonably expected sources and uses of financing and other funds, the status of such financing, the anticipated date of
bond issuance, the sources of securityand repayment for the bonds, the aggregate face amountof bonds expected
to be issued for the Project, and the issuer’s reasonablyexpected schedule for spending proceeds of New CREBs.
Attached as Exhibit C is a plan of financing for the Project.
14. Reimbursements.(For reimbursements, include the following statement.)The Issuer intends to use the proceeds of
New CREBs to reimburse costs of the Projectin accordance with section 54A(d)(2)(D).(In addition, the Issuer must
demonstrate that the requirements of § 54A(d)(2)(D) will be met.)
15. Dollar Amount of Allocation Requested for the Project.To finance the Project, the Applicant hereby requests a
New CREB allocation in the amount of $
.
16. Prior Allocations for the Project or Related Project.(If the Project or any Related Project (as defined in section
3.f.(iii) of this notice) previously received an allocation of CREBs volume cap under section 54 of the Code, then
this paragraph must include a statement to that effect.)
April 27, 20098732009–17 I.R.B.

[If applicable, include the following statement:On (Insert date), the Project previously received a CREBs volume
cap allocation in the amount of $
. A copy of the IRS allocation letter for that allocation
is attached.]
[If applicable, include the following statement:On(Insert date), a Related Project previously received a CREBs
volume cap allocation in the amount of $
. A copy of the IRS allocation letter for that
allocation is attached.]
17. Other Allocation Requests for Related Projects to the Project.Included below are descriptions of other projects
that are Related Projects (as defined in paragraph 16 above) to the Project for which the applicant or other entities
are applying for a CREB volume cap allocation. With respect to an applicant on a Related Project other than the
Applicant, set forth below are the names, addresses, contact persons, and telephone numbers for any such applicant.
I hereby certify that I am an authorized officer or official ofthe Applicant and am duly authorized to execute legal docu-
ments on behalf of the Applicant in connection with incurringdebt and that I am duly authorized to execute legal documents
on behalf of the Application in making this Application. Under penalties of perjury, I declare that (i) I have knowledge of
the relevant facts and circumstances relating to this Application and the Project(s), (ii) I have examined this Application, and
(iii) to the best of my knowledge and belief, all of the facts contained in this Application are true, correct and complete.
By:
Name and Title:
Date:
EXHIBIT A
DESCRIPTION OF THE PROJECT
(RESPONSE TO QUESTION 6 OF THE APPLICATION)
(Attached hereto)
EXHIBIT B
ENGINEER’S CERTIFICATE
(RESPONSE TO QUESTION 9 OF THE APPLICATION)
(Attached hereto in substantially the form below)
Dated:
, 2009
This certificate is being provided to the Internal Revenue Service (“IRS”) in connection with an application (the “Application”)
by [Name of Applicant Issuer:
] (the “Issuer”) to the IRS requesting an allocation of volume cap author-
ity to issue new clean renewable energy bonds (“New CREBs”) under section 54C of the Internal Revenue Code, as amended
(the “Code”). The New CREBs are being issued to make a loan to [Name of the qualified renewable energy facility owner]:
(the “Owner”), to finance the costs of certain qualified renewable energy facility or facilities described
more particularly in the Application (the “Project”). The undersigned hereby certifies as follows:
1. I am an independent, licensed engineer, duly qualified topractice the profession of engineering under the laws of the
State of
and I am not an officer or employee of the Issuer or the Borrower.
2. I have reviewed the Application for a New CREBs volume cap allocation (including the exhibits thereto) of the Issuer
of even date herewith describing the Project. To the best ofmy knowledge, information, and belief, the Project will meet
the requirements to be a “qualified renewable energy facility” under section 54C(d)(1) of the Code and correspondingly a
“qualified facility” under section 45(d) of the Code (determined without regard to section 45(d)(8) and (10) of the Code and
without regard to any placed in service date).
[(Include as applicable)To the best of my knowledge, information, and belief, the Project is a qualified hydropower
facility under section 45(d)(9)—
2009–17 I.R.B.874April 27, 2009

a.producing incremental hydropower production consisting only of efficiency improvements or additions to
capacity that produce additional production as described in section 45(c)(8)(B) based on a methodology that
would meet Federal Energy Regulatory Commission (FERC) standards.or
b.
that is a nonhydroelectric dam under section 45(c)(8)(C) and the facility,when constructed, (a) will meet FERC
licensing requirements and other applicable environmental, licensing and regulatory requirements, and (b)
will be operated so that the water surface elevation at any given location and time that would have occurred
in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under
applicable law that change the water surface elevation for the purpose of improving environmental quality of
the affected waterway.]
3. To the best of my knowledge, information and belief, theProject is technically viable and, when constructed, will
produce electricity.
IN WITNESS WHEREOF, I have hereunto affixed my official signature on the date of this Engineer’s Certificate.
By:
Seal and/or License number:Name and Title:
Company:
EXHIBIT C
PLAN OF FINANCING
(RESPONSE TO QUESTION 13 OF THE APPLICATION)
(Attached hereto)
EXHIBIT D
DOCUMENTS REGARDING ISSUER OR BORROWER ORGANIZATIONAL STATUS
(RESPONSE TO QUESTION 2 OR 4 OF THE APPLICATION, AS APPLICABLE)
(Attached hereto)
APPENDIX B
CONSENT TO PUBLIC DISCLOSURE
OF CERTAIN NEW CLEAN RENEWABLE ENERGY BOND
APPLICATION INFORMATION
In the event that the Application of [(Insert name of applicant here):
] (the “Applicant”) for an
allocation of authority to issue new clean renewable energy bonds (“New CREBs”) under section 54C of the Internal Revenue
Code is approved, the undersigned authorizedrepresentative of the Applicant hereby consents to the disclosure by the Internal
Revenue Service through publication of a notice in the InternalRevenue Bulletin or a press release of the name of applicant
(issuer), the name of the qualified renewable energy facility owner (if other than the issuer), the type and location of the facility
that is the subject of the Application, and the amount of the allocation, if any, of volume cap authority to issue New CREBs
for such facility. The undersigned understands that this information might be published, broadcast, discussed or otherwise
disseminated in the public record.
This authorization shall becomeeffective upon the execution thereof. Except to the extent disclosure is authorized herein,
the returns and return information of the undersigned taxpayer are confidential and are protected by law under the Internal
Revenue Code.
April 27, 20098752009–17 I.R.B.

I certify that I have the authority toexecute this consent to disclose on behalf of the taxpayer named below.
Date:
Signature:
Print name:
Title:
Name of Applicant-Taxpayer:
Taxpayer Identification Number:
Taxpayer’s Address:
Note: Treasury Regulations require that the Internal Revenue Service must receive this consent within 60 days after it is signed
and dated.
Modification of Notice
2008–110; ASTM Standards
for Biodiesel
No
tice 2009–34
SECTION 1. PURPOSE
This notice extends the transitional
rule set forth in Section 2(c) of No-
tice 2008–110, 2008–51 I.R.B. 1298, to
September 30, 2009.
SE
CTION 2. BACKGROUND
(1) Sections 40A, 6426, and 6427(e)
of the Internal Revenue Code (Code) pro-
vide tax incentives for the production, sale,
and use of biodiesel and biodiesel mix-
tures. Section 40A(d)(1) of the Code de-
fines biodiesel as monoalkyl esters of long
chain fatty acids derived from plant or an-
imal matter which meet (i) the registration
requirements for fuels and fuel additives
established by the Environmental Protec-
tion Agency under section 211 of the Clean
Air Act (42 U.S.C. 7545), and (ii) the re-
quirements of ASTM D6751.
(2) Effective on October 13, 2008, the
American Society of Testing and Materials
revised the requirements of ASTM D6751
by adding a cold soak filtration test for
biodiesel (the October 13, 2008 revision).
(3) Section 2(c) of Notice 2008–110
provides a transitional rule to address this
new ASTM D6751 requirement. Under
the transitional rule, if a taxpayer’s claim
for biodiesel incentives is related to the
production, sale, or use of biodiesel or a
biodiesel mixture before April 1, 2009, a
certification that the biodiesel covered by
the claim meets the requirements of ASTM
6751 is valid if the biodiesel meets the re-
quirements of ASTM 6751 as in effect ei-
ther before or after the October 13, 2008,
revision. However, if the claim is related
to the production, sale, or use on or af-
ter April 1, 2009, the certification of the
biodiesel covered by the claim is valid only
if the biodiesel meets the requirements of
ASTM 6751 as in effect after the October
13, 2008 revision.
SECTION 3. EXTENSION OF
TRANSITIONAL RULE
This guidance extends the transitional
rule set forth in Section 2(c) of No-
tice 2008–110 through September 30,
2009. Therefore, if a taxpayer’s claim for
biodiesel incentives relates to the produc-
tion, sale, or use of biodiesel or a biodiesel
mixture and the production, sale, or use
occurs before October 1, 2009, a certifi-
cation that the biodiesel covered by the
claim meets the requirements of ASTM
D6751 is valid if the biodiesel meets the
requirements of ASTM D6751 as in effect
either before or after the October 13, 2008
revision that added the cold soak filtration
test for biodiesel. If a claim relates to the
production, sale, or use of biodiesel or
a biodiesel mixture and the production,
sale, or use occurs on or after October
1, 2009, a certification that the biodiesel
covered by the claim meets the require-
ments of ASTM D6751 is valid only if
the biodiesel satisfies the requirements of
ASTM D6751 as in effect after the Octo-
ber 13, 2008, revision that added the cold
soak filtration test for biodiesel.
SECTION 4. EFFECT ON OTHER
DOCUMENTS
Notice 2008–110 is modified.
SECTION 5. DRAFTING
INFORMATION
The principal author of this notice is
Charles J. Langley, Jr. of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further in-
formation regarding this notice, contact
Charles J. Langley, Jr. at (202) 622–3130
(not a toll-free call).
Qualified School Construction
Bond Allocations for 2009
Notice 2009–35
SECTION 1. PURPOSE
This notice sets forth the maximum
face amount of qualified school construc-
tion bonds (“QSCBs”) allocated by the
Department of the Treasury (Treasury)
to each State and large local educational
agency for 2009 under § 54F(d) of the
Internal Revenue Code (Code). For this
purpose, § 54A(e)(3) provides that the
term “State” includes the District of Co-
lumbia and any possession of the United
States. This notice also provides interim
guidance for QSCBs.
SECTION 2. BACKGROUND
.01 INTRODUCTION
Section 1521(a) of Title I of Division
B of the American Recovery and Rein-
vestment Act of 2009, Pub. L. No. 111–5,
2009–17 I.R.B.876April 27, 2009

123 Stat. 115 (2009) (“Act”) added new
§ 54F to the Code, setting forth program
provisions for QSCBs. The Act amended
§ 54A(d)(1) to provide that the term “qual-
ified tax credit bond” means, in part, a
qualified school construction bond that is
part of an issue that meets the requirements
of §§ 54A(d)(2), (3), (4), (5), and (6) re-
garding expenditures of bond proceeds,
information reporting,arbitrage, maturity
limitations, and prohibitions against fi-
nancial conflicts of interest, respectively.
The Act also amended § 54A(d)(2) to pro-
vide that, for purposes of § 54A(d)(2)(C),
the term “qualified purpose” for a QSCB
means a purpose specified in § 54F(a)(1)
described below.
The Act added § 54F(c) to provide a
national bond limitation authorization for
QSCBs of $11 billion for 2009 and $11
billion for 2010 (each, a “calendar year
volume cap” and together “volume cap”).
Section 54F(c)(3) provides that except for
carryforwards provided for in § 54F(e),
there is no calendar year volume cap for
calendar years after 2010.
.02 QUALIFIED SCHOOL
CONSTRUCTION BONDS UNDER
§54F
Section 54F(a) defines a “qualified
school construction bond” to mean any
bond issued as part of an issue if —
(1) 100 percent of the available project
proceeds of such issue are to be used for
the construction, rehabilitation, or repair of
a public school facility or for the acquisi-
tion of land on which such a facility is to
be constructed with part of the proceeds of
such issue,
(2) the bond is issued by a State or lo-
cal government within the jurisdiction of
which such school is located, and
(3) the issuer designates such bond for
purposes of this section.
Section 54F(b) provides that the maxi-
mum aggregate face amount of bonds is-
sued during any calendar year that may be
designated under § 54F(a) by any issuer
shall not exceed the portion of the calen-
dar year volume cap allocated to such is-
suer for the calendar year under § 54F(d).
Section 54F(d)1) provides that, except
as provided in § 54F(d)(2)(C), the calendar
year volume cap shall be allocated by the
Treasury among the States in proportion to
the respective amounts each State is eligi-
ble to receive under § 1124 of the Elemen-
tary and Secondary Education Act of 1965
(20 U.S.C. 6333) (the “Education Act”) for
the most recent fiscal year ending before
the calendar year. Section 54F(d)(1) fur-
ther provides that the calendar year volume
cap amount allocated to each State is to be
further allocated by the State to the issuers
within the State.
Section 54F(d)(2)(A) provides that 40
percent of the calendar year volume cap for
any calendar year is to be allocated under
§ 54F(d)(2)(B) by the Treasury among lo-
cal educational agencies that are large lo-
cal agencies for the calendar year. Sec-
tion 54F(d)(2)(B) provides that 40 percent
of the calendar year volume cap is to be
allocated among large local educational
agencies in proportion to the respective
amounts each such agency received under
§ 1124 of the Education Act for the most
recent fiscal year ending before the calen-
dar year.
Section 54F(d)(2)(C) provides that the
allocation of calendar year volume cap to
any State under § 54F(d)(1) is reduced by
the aggregate amount of allocations un-
der § 54F(d)(2) to large local educational
agencies within the State.
Section 54F(d)(2)(D) provides the
amount of calendar year volume cap allo-
cated to a large local educational agency
for any calendar year may be reallocated
by such agency to the State in which such
agency is located for the calendar year.
Section 54F(d)(2)(D) further provides that
any amount reallocated to a State by a
large local educational agency may be
further allocated by the State to issuers
within the State.
Section 54F(d)(2)(E) defines a large lo-
cal educational agency as any local educa-
tional agency if such agency is: (1) among
the one hundred local educational agencies
with the largest number of children aged 5
through 17 from families living below the
poverty level, as determined by the Trea-
sury using the most recent data available
from the Department of Commerce that are
satisfactory to the Treasury; or (2) one of
not more than twenty-five additional lo-
cal educational agencies that the Secre-
tary of Education determines (based on the
most recent data available satisfactory to
the Treasury) are in particular need of as-
sistance, based on a low level of resources
for school construction, a high level of en-
rollment growth, or such other factors as
the Treasury deems appropriate.
Section 54F(d)(3)provides that the
amount allocated under § 54F(d)(1) to any
United States possession other than Puerto
Rico is an amount that would have been
allocated to such possession if all alloca-
tions under § 54F(d)(1) were made on the
basis of respective populations of individ-
uals below the poverty line (as defined by
the Office of Management and Budget).
Section 54F(d)(3) further provides that in
making the other allocations, the amount
to be allocated under§ 54F(d)(1) to the
States is reduced by the aggregate amount
allocated under § 54F(d)(3) to the United
States possessions.
Section 54F(d)(4) provides for addi-
tional calendar year volume cap amounts
of $200 million for calendar year 2009
and $200 million for calendar year 2010
(each an “Indian tribal government cal-
endar year volume cap” and together the
“Indian tribal government volume cap”)
to be allocated by the Secretary of Interior
for purposes of the construction, rehabil-
itation, and repair of schools funded by
the Bureau of Indian Affairs. This $ 200
million Indian tribal government calendar
year volume cap allocated to the Indian
tribal governments does not reduce the $11
billion calendar year volume cap allocated
to the States and the large local educa-
tional agencies. Section 54F(d)(4) further
provides that, for amounts of Indian tribal
government volume cap allocated, In-
dian tribal governments (as defined in
§ 7701(a)(40)) are tobe treated as quali-
fied issuers.
Section 54F(e) provides that if for any
calendar year, the amount of calendar year
volume cap allocated under § 54(d) to any
State or the amount of Indian tribal gov-
ernment calendar year volume cap allo-
cated to an Indian tribal government ex-
ceeds the amount of QSCBs issued during
the calendar year pursuant to such alloca-
tion, the amount of such excess shall to be
carried over to the following calendar year
and shall increase the calendar year vol-
ume cap or the Indian tribal government
calendar year volume cap allocation for the
following calendar year for the State or In-
dian tribal government.
April 27, 20098772009–17 I.R.B.

SECTION 3. INTERIM GUIDANCE
AND RELIANCE
.01 GENERALLY
Pending the promulgation and effective
date of future administrative or regulatory
guidance, taxpayers may rely on the in-
terim guidance provided in this notice.
.02 CREDIT RATE
For QSCBs issued under §§ 54A and
54F, the maximum maturity and the credit
rate are determined as of the date that there
is a binding, written contract for the sale
or exchange of the bond. The applicable
maximum maturity, the discount rate for
determining the maturity, and QSCB credit
rate are published for that date by the Bu-
reau of Public Debt on its Internet site for
State and Local Government Series secu-
rities at:https://www.treasurydirect.gov.
For further information regarding the
methodology and procedures that the
Treasury uses to determine these credit
rates, see Notice 2009–15, 2009–6 I.R.B.
449 (February 9, 2009).
.03 SINKING FUND YIELD
Section 54A(d)(4)(C) provides that an
issue shall not be treated as failing to meet
the requirements of § 148 by reason of any
fund that is expected to be used to repay the
issue if: (i) the fund is funded at a rate not
more rapid than equal annual installments;
(ii) the fund is funded in a manner reason-
ably expected to result in an amount not
greater than an amount necessary to repay
the issue; and (iii) the yield on such fund
is not greater than the discount rate deter-
mined under § 54A(d)(5)(B) (the “permit-
ted sinking fund yield”).
The permitted sinking fund yield is de-
termined under § 54A(d)(5)(B) by using
a rate equal to 110 percent of the long-
term adjusted federal rate (“AFR”), com-
pounded semiannually, for the month in
which the bond is sold. The IRS publishes
the long-term adjusted AFR, compounded
semiannually, each month in a revenue rul-
ing published in the Internal Revenue Bul-
letin. The Bureau of Public Debt pub-
lishes the permitted sinking fund yield for
each month on its Internet site for State
and Local Government Series securities at:
https://www.treasurydirect.gov.
.04 INFORMATION REPORTING
Section 54A(d)(3) requires issuers of
QSCBs to submit information reporting re-
turns to the IRS similar to those required
to be submitted under § 149(e) for tax-ex-
empt State or local governmental bonds.
These information reporting returns are re-
quired to be submitted at the same time and
inthesamemannerasthoseunder§149(e)
on such forms as shall be prescribed by
the IRS for such purpose. Pending further
guidance from the IRS regarding the appli-
cable forms to be used for such informa-
tion reporting for QSCBs, in the case of
an issue of QSCBs, the issuer must sub-
mit to the IRS an information return on
Form 8038, at the same time and in the
same manner as required under § 149(e),
with modifications as described below. Is-
suers of QSCBs should complete Part II of
Form8038bycheckingLine20c(Other),
writing “QSCBs” in the space provided for
the bond description, and entering the is-
suepriceoftheQSCBsintheIssuePrice
column on Line 20c. For purposes of
this notice, the term “issue” has the mean-
ing used for tax-exempt bond purposes in
§ 1.150–1(c) of the Income Tax Regula-
tions.
.05 CERTAIN ELIGIBLE
EXPENDITURES FOR EQUIPMENT
For purposes of the § 54F(a)(1) require-
ment that all available proceeds of QSCBs
be spent on construction, rehabilitation, or
repair of a public school facility or for the
acquisition of land on which such a facility
is to be constructed with part of the pro-
ceeds of such issue, eligible expenditures
include, among other things, expenditures
for costs of acquisition of equipment to be
used in such portion or portions of the pub-
lic school facility that is being constructed,
rehabilitated, or repaired with the proceeds
of QSCBs.
.06 ELIGIBLE ISSUERS
Eligible issuers of QSCBs include
States, political subdivisions as defined for
purposes of § 103, large local educational
agencies that are State or local govern-
mental entities, and entities empowered to
issue bonds on behalf of any such entity
under rules similar to those for determin-
ing whether a bond issued on behalf of a
State or political subdivision constitutes
an obligation of that State or political
subdivision for purposes of § 103 and
§ 1.103–1(b), Income Tax Regs. Further,
eligible issuers include otherwise-eligible
issuers in conduit financing issues (as de-
fined in § 1.150–1(b), Income Tax Regs.)
An eligible issuer may issue QSCBs based
on a volume cap allocation received by
the eligible issuer itself or by a conduit
borrower or other ultimate beneficiary of
the issue of QSCBs. In all events, the
eligible costs of public school facilities
financed with the proceeds of an issue of
QSCBs under § 54F(a)(1) must relate to
public school facilities that are located
within both the jurisdiction of the issuer
of the QSCBs and the jurisdiction of the
authorized entity that allocates volume cap
totheissueofQSCBsforthefinancingof
those public school facilities. Authorized
entities that may allocate volume cap con-
sist of those entities that receive volume
cap allocations under § 54F(d). Thus, for
example, a large local educational agency
that has received a volume cap allocation
under § 54F(d)(2) either may issue QSCBs
with respect to that volume cap itself or
it may be a beneficiary of proceeds of an
issue issued by another eligible issuer with
respect to that volume cap, provided that,
in either event, the public school facilities
to be financed with the proceeds of the
issue of QSCBs are located within both
the jurisdiction of the issuer of the QSCBs
and the jurisdiction of the large local edu-
cational agency that allocated volume cap
totheissueofQSCBsforthefinancingof
those public school facilities.
SECTION 4. 2009 ALLOCATIONS
OF NATIONAL BOND VOLUME
CAP FOR QSCBs
The 2009 national bond volume cap for
QSCBs is $11 billion. This amount is allo-
cated among the States and large local edu-
cational agencies as set forth in this notice.
The 2009 allocations to 100 large local ed-
ucational agencies reflects the determina-
tion by the Secretary of Education to de-
cline to select 25 additional large local edu-
cational agencies under § 54F(d)(2)(E)(ii)
for such year. The first chart below allo-
cates $6.6 billion of the $11 billion 2009
calendar year volume cap for QSCBs to
States to be further allocated to the issuers
within such State. The second chart be-
low allocates $4.4 billion of the $11 billion
2009–17 I.R.B.878April 27, 2009

2009 calendar year volume cap for QSCBs
to large local educational agencies.
2009 Allocations to States of Volume Cap for
Qualified School Construction Bonds
(Net of Allocations to Large Local Educational Agencies)
State/Territory
Total Allocation
by State/
Territory
Alabama118,776,000
Alaska29,784,000
Arizona186,292,000
Arkansas113,443,000
California
773,525,000
Colorado87,147,000
Connecticut
105,092,000
Delaware29,784,000
District of Columbia0
Florida106,806,000
Georgia201,062,000
Hawaii0
Idaho
37,665,000
Illinois
244,435,000
Indiana177,861,000
Iowa
64,252,000
Kansas
79,589,000
Kentucky
135,132,000
Louisiana131,622,000
Maine42,074,000
Maryland
50,354,000
Massachusetts144,783,000
Michigan296,860,000
Minnesota
75,850,000
Mississippi132,443,000
Missouri141,441,000
Montana31,623,000
Nebraska32,343,000
Nevada6,767,000
New Hampshire29,784,000
New Jersey223,279,000
New Mexico64,602,000
New York192,049,000
April 27, 20098792009–17 I.R.B.

North Carolina187,167,000
North Dakota
25,740,000
Ohio267,112,000
Oklahoma87,018,000
Oregon112,886,000
Pennsylvania
315,737,000
Rhode Island22,062,000
South Carolina131,364,000
South Dakota29,784,000
Tennessee121,738,000
Texas
538,585,000
Utah
50,962,000
Vermont
24,845,000
Virginia191,077,000
Washington164,111,000
West Virginia78,219,000
Wisconsin
98,589,000
Wyoming24,080,000
American Samoa10,748,000
Guam10,980,000
Northern Marianas10,703,000
Puerto Rico0
Virgin Islands9,974,000
Total6,600,000,000
2009 Alloca
tions to Large Local Educational Agencies of Volume Cap for
Qualified S
chool Construction Bonds
StateLarge Local Educational AgencyAllocation
AlabamaBirmingham City School District
15,683,000
AlabamaMobile County School District
23,135,000
AlabamaMontgomery
County School District
11,421,000
ArizonaMesa Unifie
d District
16,111,000
ArizonaTucson Unif
ied District
21,375,000
CaliforniaBakersfield City Elementary
15,720,000
CaliforniaCompton Unified
18,559,000
CaliforniaFresno Unif
ied
41,398,000
CaliforniaLong Beach U
nified
37,905,000
CaliforniaLos Angeles Unified318,816,000
2009–17 I.R.B.880April 27, 2009

CaliforniaOakland Unified26,326,000
CaliforniaSacramento City Unified
21,251,000
CaliforniaSan Bernardino City Unified27,790,000
CaliforniaSan Diego City Unified38,877,000
CaliforniaSanta Ana Unified19,269,000
CaliforniaStockton City Unified
16,055,000
ColoradoDenver County 124,022,000
District of ColumbiaDistrict of Columbia Public Schools33,936,000
FloridaBroward County School District49,913,000
FloridaDade County School District
104,855,000
FloridaDuval County School District27,220,000
FloridaHillsborough CountySchool District40,633,000
FloridaLee County School District12,701,000
FloridaOrange County School District
35,824,000
FloridaPalm Beach County School District33,643,000
FloridaPasco County School District11,028,000
FloridaPinellas County School District
24,352,000
FloridaPolk County School District
20,543,000
FloridaVolusia County School District11,941,000
GeorgiaAtlanta City School District37,934,000
GeorgiaClayton County School District13,793,000
GeorgiaCobb County School District12,732,000
GeorgiaDe Kalb County School District27,832,000
GeorgiaFulton County School District17,720,000
GeorgiaGwinnett County School District
18,985,000
GeorgiaRichmond County School District16,163,000
HawaiiHawaii
32,058,000
IllinoisCity of Chicago School District 299
254,250,000
IndianaIndianapolis Public Schools31,181,000
KentuckyJefferson County School District27,483,000
LouisianaCaddo Parish School Board
17,359,000
LouisianaEast Baton Rouge Parish School Board21,433,000
LouisianaJefferson Parish School Board21,646,000
LouisianaOrleans Parish School Board39,607,000
MarylandBaltimore City Public School System
58,096,000
MarylandBaltimore County Public Schools19,424,000
MarylandPrince George’s County Public Schools
25,102,000
MassachusettsBoston
37,567,000
MassachusettsSpringfield17,864,000
MichiganDetroit City School District123,272,000
MinnesotaMinneapolis21,739,000
April 27, 20098812009–17 I.R.B.

MinnesotaSt. Paul16,119,000
MississippiJackson Public School District
15,255,000
MissouriKansas City School District17,880,000
MissouriSt Louis City28,163,000
NebraskaOmaha Public Schools17,378,000
NevadaClark County School District
51,414,000
New JerseyNewark City
27,258,000
New MexicoAlbuquerque Public Schools21,968,000
New YorkBuffalo City School District34,374,000
New YorkNew York City699,872,000
New YorkRochester City School District
29,535,000
North CarolinaCharlotte-Mecklenburg Schools
25,962,000
North CarolinaCumberland County Schools
15,948,000
North CarolinaForsyth County Schools12,244,000
North CarolinaGuilford County Schools17,147,000
North CarolinaWake County Schools17,304,000
OhioAkronCitySchoolDistrict
15,062,000
OhioCincinnati City School District
25,632,000
OhioCleveland Municipal School District
53,145,000
OhioColumbus City School District36,372,000
OhioToledo City School District21,460,000
OklahomaOklahoma City17,844,000
OklahomaTulsa14,327,000
PennsylvaniaPhiladelphia City School District146,897,000
Puerto RicoPuerto Rico
376,055,000
Rhode IslandProvidence School District22,338,000
South CarolinaCharleston County School District
13,517,000
South CarolinaGreenville County School District
15,060,000
TennesseeMemphis City School District41,736,000
TennesseeNashville-Davidson County School District21,132,000
TexasAldine Independent School District18,810,000
TexasAlief Independent School District16,297,000
TexasArlington Independent School District
12,805,000
TexasAustin Independent School District24,440,000
TexasBrownsville Independent School District
25,612,000
TexasDallas Independent School District73,741,000
TexasEdinburg Consolidated Independent School District13,810,000
TexasEl Paso Independent School District29,067,000
TexasFort Worth Independent School District31,602,000
TexasGarland Independent School District10,186,000
TexasHouston Independent School District94,303,000
2009–17 I.R.B.882April 27, 2009

TexasLa Joya Independent School District13,392,000
TexasLaredo Independent School District13,639,000
TexasNorthside Independent School District13,299,000
TexasPasadena Independent School District
14,445,000
TexasPharr-San Juan-Alamo Independent School District13,302,000
TexasSan Antonio Independent School District
30,385,000
TexasYsleta Independent School District16,807,000
WisconsinMilwaukee72,118,000
Total4,400,000,000
SECTION 5. EFFECTIVE DATE OF
2009 ALLOCATIONS OF NATIONAL
BOND VOLUME CAP
The allocations of the national bond
volume cap for QSCBs in Section 4 are ef-
fective for QSCBs issued, pursuant to an
allocation of 2009 calendar year volume
cap, after February 17, 2009, and before
January 1, 2010.
SECTION 6. ALLOCATION OF THE
INDIAN TRIBAL GOVERNMENT
VOLUME CAP
The Department of the Interior is exclu-
sively responsible for making the alloca-
tions of the Indian tribal government vol-
ume cap and inquiries about the process
and timing for those allocations of Indian
tribal government volume cap should be
directed to John Rever, Director, Office
of Management Support Services, Bureau
of Indian Affairs, at (703) 390–6314 or
John.rever@bia.gov.
SECTION 7. DRAFTING
INFORMATION
The principal author of this notice is
Aviva M. Roth of the Office of Associate
Chief Counsel (Financial Institutions &
Products). For further information regard-
ing this notice, contact Aviva M. Roth at
(202) 622–3980 (not a toll-free call.)
Payments made to a REMIC
Pursuant to the Home
Affordable Modification
Program
Notice 2009–36
The Internal Revenue Service (Service)
and the Department of the Treasury (Trea-
sury) intend to issue regulations regarding
the application of section 860G(d) of the
Internal Revenue Code to certain amounts
that may be paid to real estate mortgage
investment conduits (REMICs) as part
of the Home Affordable Modification
Program (HAMP). The HAMP was an-
nounced on February 18, 2009, and many
details of its operation were provided on
March 4, 2009.Seedocuments entitled
“Home Affordable Modification Program
Guidelines” and “Making Home Afford-
able, Summary of Guidelines.”
BACKGROUND
.01 Section 860G(d)(1) states that, ex-
cept as provided in section 860G(d)(2), “if
anyamountiscontributedtoaREMICaf-
ter the startup day, there is hereby imposed
a tax for the taxable year of the REMIC in
which the contribution is received equal to
100 percent of the amount of such contri-
bution.”
.02 Section 860G(d)(2) provides that
this tax does not apply to any cash contri-
butions that are—
(A) Contributions made to facilitate a
clean-up call or a qualified liquidation;
(B) Payments in the nature of a guaran-
tee;
(C) Contributions made during the
3-month period beginning on the startup
day;
(D) Contributions made to a qualified
reserve fund by any holder of a residual
interest in the REMIC; or
(E) Other contributions permitted in
regulations.
.03 The question has arisen whether
some of the payments that may be made
to REMICs under the HAMP are “con-
tributions” that are described in section
860G(d)(1) and, if so, whether they are
covered by the exceptions in section
860G(d)(2).
DISCUSSION
If a payment is made to a REMIC under
the HAMP, if the payment is described in
section 860G(d)(1), and if the payment is
not covered by any of the exceptions in
section 860G(d)(2), then regulations to be
issued by the Service and Treasury will
provide an exception for that payment.
The regulations are expected to be effec-
tive for payments made on or after March
4, 2009. Pending the issuance of further
guidance, taxpayers may rely on this no-
tice and, accordingly, any payment made
to a REMIC under the HAMP will not be
subject to the 100 percent tax set forth in
section 860G(d)(1).
DRAFTING INFORMATION
The principal author of this notice is
Diana Imholtz of the Office of Associate
Chief Counsel (Financial Institutions and
Products). For furtherinformation regard-
ing this notice, contact Ms. Imholtz at
202–622–3930 (not a toll-free call).
April 27, 20098832009–17 I.R.B.

26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also Part I, §§ 860D, 860F, 860G, 1001; 1.860G–2,
1.1001–3, 301.7701–2, 301.7701–3, 301.7701–4.)
Rev. Proc. 2009–23
SECTION 1. PURPOSE
This revenue procedure describes the
conditions under which modifications to
certain mortgage loans will not cause the
Internal Revenue Service (Service) to
challenge the tax status of certain securi-
tization vehicles that hold the loans or to
assert that those modifications give rise to
prohibited transactions.
This revenue procedure provides cer-
tainty in the current economic environ-
ment with respect to certain potential
tax issues that may be implicated by
loan modifications made pursuant to the
Home Affordable Modification Program
(“HAMP”), described below. No in-
ference should be drawn about whether
similar consequences would obtain if a
transaction falls outside the limited scope
of this revenue procedure. Furthermore,
there should be no inference that, in the
absence of this revenueprocedure, transac-
tions within its scope would have impaired
the tax status of securitization vehicles or
would have given rise to prohibited trans-
actions.
SECTION 2. BACKGROUND-THE
HAMP
.01 The deep contraction in the econ-
omy and in the housing market has created
distress for homeowners and communities
throughout the country. Large numbers
of homeowners are unable to afford their
current monthly mortgage payments and
are at risk of losing their homes. In re-
sponse, on February 18, 2009, the United
States Government announced the Home-
owner Affordability and Stability Plan
(the “Plan”). The Plan is intended to help
at-risk homeowners to modify their mort-
gages to avoid foreclosure. On March 4,
2009, as a key component of the Plan, the
United States Government released further
details about the HAMP.Seedocuments
entitled “Home Affordable Modification
Program Guidelines” and “Making Home
Affordable, Summary of Guidelines.”
.02 The HAMP includes detailed proto-
cols for identifying borrowers at risk of de-
fault. As is more fully set forth in the pro-
gram documents, the HAMP is intended to
reach borrowers with high mortgage debt
service compared to income and other in-
dications of being at risk of default. Delin-
quency is not a requirement for eligibil-
ity. Rather, because loan modifications are
more likely to succeed if they are made
before a borrower misses a payment, the
HAMP is also intended to reach borrow-
ers for whom default is imminent despite
the fact that those borrowers are current on
their mortgage payments. In determining
whether default is imminent for a particu-
lar borrower, the HAMP takes into account
a broad range of information, including
whether the borrower has had a change in
circumstances that causes financial hard-
ship, or is facing a recent or imminent in-
crease in the monthly mortgage payment
that would likely create a financial hard-
ship.
.03 The HAMP applies both to loans
that investors hold directly and to those
that are held through securitization ve-
hicles such as investment trusts and real
estate mortgage investment conduits
(REMICs).
SECTION 3.
BACKGROUND—REMICS
.01 REMICs are widely used securitiza-
tion vehicles for mortgages. REMICs are
governed by sections 860A through 860G
of the Internal Revenue Code.
.02 For an entity to qualify as a REMIC,
all of the interests in the entity must consist
of one or more classes of regular interests
and a single class of residual interests,see
section 860D(a), and those interests must
be issued on the startup day, within the
meaning of § 1.860G–2(k) of the Income
Tax Regulations.
.03 A regular interest is one that is des-
ignated as a regular interest and whose
termsarefixedonthestartupday.Section
860G(a)(1). In addition, a regular interest
must (1) unconditionally entitle the holder
to receive a specifiedprincipal amount (or
other similar amount), and (2) provide that
interest payments, if any, at or before ma-
turity are based on a fixed rate (or to the
extent provided in regulations, at a variable
rate).
.04 An interest issued after the startup
day does not qualify as a REMIC regular
interest.
.05 Under section 860D(a)(4), an entity
qualifies as a REMIC only if, among other
things, as of the close of the third month
beginning after the startup day and at all
times thereafter, substantially all of its as-
sets consist of qualified mortgages and per-
mitted investments. This asset test is sat-
isfied if the entity owns no more than a
de minimisamount of other assets.See
§ 1.860D–1(b)(3)(i). As a safe harbor, the
amount of assets other than qualified mort-
gages and permitted investments isde min-
imisif the aggregate of the adjusted bases
of those assets is less than one percent of
the aggregate of the adjusted bases of all of
the entity’s assets. § 1.860D–1(b)(3)(ii).
.06 With limited exceptions, a mort-
gage loan is not a qualified mortgage
unless it is transferred to the REMIC on
the startup day in exchange for regular
or residual interests in the REMIC.See
section 860G(a)(3)(A)(i).
.07 The legislative history of the
REMIC provisions indicates that Congress
intended the provisions to apply only to
an entity that holds a substantially fixed
pool of real estate mortgages and related
assets and that “has no powers to vary
the composition of its mortgage assets.”
S. Rep. No. 99–313, 99
th
Cong., 2
nd
Sess.
791–92, 1986–3 (Vol. 3) C.B. 791–92.
.08 Section 1.1001–3(c)(1)(i) defines a
“modification” of a debt instrument as any
alteration, including any deletion or addi-
tion, in whole or in part, of a legal right or
obligation of the issuer or holder of a debt
instrument, whether the alteration is evi-
denced by an express agreement (oral or
written), conduct of the parties, or other-
wise. Section 1.1001–3(e) governs which
modifications of debt instruments are “sig-
nificant.” Under § 1.1001–3(b), for most
federal income tax purposes, a significant
modification produces a deemed exchange
of the original debt instrument for a new
debt instrument.
.09 Under § 1.860G–2(b), related rules
apply to determine REMIC qualifica-
tion. Except as specifically provided in
§ 1.860G–2(b)(3), if there is a significant
modification of an obligation that is held
by a REMIC, then the modified obligation
is treated as one that was newly issued in
exchange for the unmodified obligation
that it replaced.See§ 1.860G–2(b)(1).
2009–17 I.R.B.884April 27, 2009

For this purpose, the rules in § 1.1001–3(e)
determine whether a modification is “sig-
nificant.”See§ 1.860G–2(b)(2). Thus,
even if an entity initially qualifies as a
REMIC, one or more significant modifi-
cations of loans held by the entity may
terminate the qualification if the modifica-
tions cause less than substantially all of the
entity’s assets to be qualified mortgages.
.10 Certain loan modifications, how-
ever, are not significant for purposes of
§ 1.860G–2(b)(1), even if the modifi-
cations are significant under the rules
in § 1.1001–3. In particular, under
§ 1.860G–2(b)(3)(i), if a change in the
terms of an obligation is “occasioned by
default or a reasonably foreseeable de-
fault,” the change is not a significant mod-
ification for purposes of § 1.860G–2(b)(1),
regardless of the modification’s status un-
der § 1.1001–3.
.11 Section 860F(a)(1) imposes a tax on
REMICs equal to 100 percent of the net
income derived from “prohibited transac-
tions.” The disposition of a qualified mort-
gage is a prohibited transaction unless the
“disposition [is] pursuant to—(i) the sub-
stitution of a qualified replacement mort-
gage for a qualified mortgage . . . , (ii) a
disposition incident to the foreclosure, de-
fault, or imminent default of the mortgage,
(iii) the bankruptcy or insolvency of the
REMIC, or (iv) a qualified liquidation.”
Section 860F(a)(2)(A).
.12 Under section 860C(b)(1), “The
taxable income of a REMIC shall be
determined under an accrual method of
accounting...exceptthat—...(C)
there shall not be taken into account any
item of income, gain,loss, or deduction
allocable to a prohibited transaction, . . .”
SECTION 4. BACKGROUND-TRUSTS
.01 Section 301.7701–2(a) of the Pro-
cedure and Administration Regulations
defines a “business entity” as any entity
recognized for federal tax purposes (in-
cluding an entity with a single owner that
may be disregarded as an entity separate
from its owner under § 301.7701–3) that
is not properly classified as a trust under
§ 301.7701–4 or otherwise subject to spe-
cial treatment under the Code.
.02 Section 301.7701–4(a) provides
that an arrangement is treated as a trust if
the purpose of the arrangement is to vest
in trustees responsibility for the protection
and conservation of property for benefi-
ciaries who cannot share in the discharge
of this responsibility and, therefore, are
not associates in a joint enterprise for the
conduct of business for profit.
.03 Section 301.7701–4(c) provides
that an “investment” trust is not classified
as a trust if there is a power under the trust
agreement to vary the investment of the
certificate holders.
SECTION 5. SCOPE
This revenue procedure applies to a
modification made pursuant to the HAMP
of a mortgage loan that is held by a REMIC
or by an investment trust.
SECTION 6. APPLICATION
If one or more modifications of mort-
gage loans are described in Section 5 of
this revenue procedure—
.01 The Service will not challenge a
securitization vehicle’s qualification as a
REMIC on the grounds that the modifica-
tions are not among the exceptions listed
in § 1.860G–2(b)(3);
.02 The Service will not contend that
the modifications are prohibited trans-
actions under section 860F(a)(2) on the
grounds that the modifications result in
one or more dispositions of qualified mort-
gages and that the dispositions are not
among the exceptions listed in section
860F(a)(2)(A)(i)–(iv);
.03 The Service will not challenge a
securitization vehicle’s classification as a
trust under § 301.7701–4(c) on the grounds
that the modifications manifest a power to
vary the investment of the certificate hold-
ers; and
.04 The Service will not challenge a
securitization vehicle’s qualification as a
REMIC on the grounds that the modifica-
tions result in a deemed reissuance of the
REMIC regular interests.
SECTION 7. OTHER GUIDANCE
For the treatment of mortgage loans
modified pursuant to certain foreclosure
prevention programs, see Rev. Proc.
2008–47, 2008–31 I.R.B. 272, and Rev.
Proc. 2008–28, 2008–23 I.R.B. 1054.
SECTION 8. EFFECTIVE DATE
This revenue procedure is effective for
loan modifications on or after March 4,
2009.
SECTION 9. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Diana Imholtz of the Office
of Associate Chief Counsel (Financial
Institutions and Products). For further
information, contactMs. Imholtz at (202)
622–3930 (not a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also: Part I, §§ 280F; 1.280F–7.)
Rev. Proc. 2009–24
SECTION 1. PURPOSE
.01 This revenue procedure provides:
(1) limitations on depreciation deductions
for owners of passenger automobiles first
placed in service by the taxpayer during
calendar year 2009, including a sepa-
rate table of limitations on depreciation
deductions for trucks and vans; and (2)
the amounts to be included in income
by lessees of passenger automobiles first
leased by the taxpayer during calendar
year 2009, including a separate table of
inclusion amounts for lessees of trucks
and vans.
.02 The tables detailing these depre-
ciation limitations and lessee inclusion
amounts reflect the automobile price infla-
tion adjustments required by § 280F(d)(7)
of the Internal Revenue Code.
SECTION 2. BACKGROUND
.01 For owners of passenger automo-
biles, § 280F(a) imposes dollar limitations
on the depreciation deduction for the year
that the passenger automobile is placed in
service by the taxpayer and each succeed-
ing year. Section 280F(d)(7) requires the
amounts allowable as depreciation deduc-
tions to be increased by a price inflation
adjustment amount for passenger automo-
biles placed in service after 1988. The
method of calculating this price inflation
April 27, 20098852009–17 I.R.B.

amount for trucks and vans placed in ser-
vice in or after calendar year 2003 uses
a different CPI “automobile component”
(the “new trucks” component) than that
used in the price inflation amount calcu-
lation for other passenger automobiles (the
“new cars” component), resulting in some-
what higher depreciation deductions for
trucks and vans. This change reflects the
higher rate of price inflation that trucks and
vans have been subject to since 1988.
.02 Section 168(k)(1)(A) provides a
50 percent additional first year depreci-
ation deduction for certain new property
acquired by a taxpayer after December 31,
2007, and before January 1, 2010, if no
written binding contract for the acquisition
of the property existed before January 1,
2008. Section 168(k)(2)(F)(i) increases
the first year depreciation allowed under
§ 280F(a)(1)(A) by $8,000 for passenger
automobiles to which the 50 percent ad-
ditional first year depreciation deduction
applies.
.03 Section 168(k)(2)(D)(i) provides
that the 50 percent additional first year
depreciation deduction does not apply to
any property required to be depreciated
under the alternative depreciation system
of § 168(g), including property described
in § 280F(b)(1). Section 168(k)(2)(D)(iii)
permits a taxpayer to elect to not claim the
50 percent additional first year deprecia-
tion deduction for any class of property.
Section 168(k)(4) permits a corporation to
elect to not claim the 50 percent additional
first year depreciation deduction for all el-
igible qualified property (that is extension
property or that is not extension property,
as applicable) and instead to increase the
business credit limitation under § 38(c) or
the alternative minimum tax credit lim-
itation under § 53(c). Accordingly, this
revenue procedure provides tables for
passenger automobiles for which the 50
percent additional depreciation deduction
applies and tables for passenger automo-
biles for which the 50 percent additional
first year depreciation deduction does
not apply, including passenger automo-
bilesinaclassofpropertyforwhichthe
taxpayer “elects out” of the 50 percent ad-
ditional first year depreciation deduction
or passenger automobiles that are eligible
qualified property to which the § 168(k)(4)
election applies.
.04 For leased passenger automobiles,
§ 280F(c) requires a reduction in the de-
duction allowed to the lessee of the pas-
senger automobile. The reduction must be
substantially equivalent to the limitations
on the depreciation deductions imposed on
owners of passenger automobiles. Under
§ 1.280F–7(a) of the Income Tax Regula-
tions, this reduction requires a lessee to in-
clude in gross income an inclusion amount
determined by applying a formula to the
amount obtained from a table. One table
applies to lessees of trucks and vans and
another table applies to all other passenger
automobiles. Each table shows inclusion
amounts for a range of fair market values
for each taxable year after the passenger
automobile is first leased.
SECTION 3. SCOPE
.01 The limitations on depreciation de-
ductions in section 4.02(2) of this revenue
procedure apply to passenger automobiles
(other than leased passenger automobiles)
that are placed in service by the taxpayer
in calendar year 2009, and continue to ap-
ply for each taxable year that the passenger
automobile remains in service.
.02 The tables in section 4.03 of this
revenue procedure apply to leased passen-
ger automobiles for which the lease term
begins during calendar year 2009. Lessees
of these passenger automobiles must use
these tables to determine the inclusion
amount for each taxable year during which
the passenger automobile is leased. See
Rev. Proc. 2002–14, 2002–1 C.B. 450, for
passenger automobiles first leased before
January 1, 2003, Rev. Proc. 2003–75,
2003–2 C.B. 1018, for passenger auto-
mobiles first leased during calendar year
2003, Rev. Proc. 2004–20, 2004–1 C.B.
642, for passenger automobiles first leased
during calendar year 2004, Rev. Proc.
2005–13, 2005–1 C.B. 759, for passenger
automobiles first leased during calendar
year 2005, Rev. Proc. 2006–18, 2006–1
C.B. 645, for passenger automobiles first
leased during calendar year 2006, Rev.
Proc. 2007–30, 2007–1 C.B. 1104, for
passenger automobiles first leased dur-
ing calendar year 2007, and Rev. Proc.
2008–22, 2008–12 I.R.B. 658, for pas-
senger automobiles first leased during
calendar year 2008.
SECTION 4. APPLICATION
.01In General.
(1)Limitations on depreciation deduc-
tions for certain automobiles. The limita-
tions on depreciation deductions for pas-
senger automobiles placed in service by
the taxpayer for the first time during calen-
dar year 2009 are in Tables 1 through 4 in
section 4.02(2) of this revenue procedure.
(2)Inclusions in income of lessees of
passenger automobiles. A taxpayer first
leasing a passenger automobile during cal-
endar year 2009 must determine the in-
clusion amount that is added to gross in-
come using Tables 5 and 6 in section 4.03
of this revenue procedure. In addition,
the taxpayer must follow the procedures of
§ 1.280F–7(a).
.02Limitations on Depreciation
Deductions for Certain Automobiles.
(1)Amount of the inflation adjustment.
(a)Passenger automobiles (other than
trucks or vans). Under § 280F(d)(7)(B)(i),
the automobile price inflation adjustment
for any calendar year is the percentage (if
any) by which the CPI automobile com-
ponent for October ofthe preceding cal-
endar year exceeds the CPI automobile
component for October 1987. The term
“CPI automobile component” is defined
in § 280F(d)(7)(B)(ii) as the “automobile
component” of the Consumer Price Index
for all Urban Consumers published by the
Department of Labor. The new car com-
ponent of the CPI was 115.2 for October
1987 and 134.837 for October 2008. The
October 2008 index exceeded the October
1987 index by 19.637. The Internal Rev-
enue Service has, therefore, determined
that the automobile price inflation adjust-
ment for 2009 for passenger automobiles
(other than trucks and vans) is 17.05 per-
cent (19.637/115.2 x 100%). This adjust-
ment is applicable to all passenger auto-
mobiles (other than trucks and vans) that
are first placed in service in calendar year
2009. The dollar limitations in § 280F(a)
therefore must be multiplied by a factor of
0.1705, and the resulting increases, after
rounding to the nearest $100, are added to
the 1988 limitations to give the deprecia-
tion limitations applicable to passenger au-
tomobiles (other than trucks and vans) for
calendar year 2009.
(b)Trucks and vans. To determine the
dollar limitations applicable to trucks and
vans first placed in service during calendar
2009–17 I.R.B.886April 27, 2009

year 2009, the new truck component of the
CPI is used instead of the new car compo-
nent. The new truck component of the CPI
was 112.4 for October 1987 and 133.640
for October 2008. The October 2008 in-
dex exceeded the October 1987 index by
21.24. The Service has, therefore, deter-
mined that the automobile price inflation
adjustment for 2009 for trucks and vans is
18.90 percent (21.24/112.4 x 100%). This
adjustment is applicable to all trucks and
vans that are first placed in service in cal-
endar year 2009. The dollar limitations
in § 280F(a) therefore must be multiplied
by a factor of 0.1890, and the resulting in-
creases, after rounding to the nearest $100,
are added to the 1988 limitations to give
the depreciation limitations applicable to
trucks and vans.
(2)Amount of the limitation.Forpas-
senger automobiles placed in service by
the taxpayer in calendar year 2009, Tables
1 through 4 contain the dollar amount of
the depreciation limitation for each taxable
year. Use Table 1 for a passenger auto-
mobile (other than a truck or van) placed
in service by the taxpayer in calendar year
2009, for which the 50 percent additional
first year depreciation deduction does not
apply, including a passenger automobile
(other than a truck or van) in a class of
property for which the taxpayer elects out
of the 50 percent additional first year de-
preciation deduction or a passenger auto-
mobile that is eligible qualified property
to which the § 168(k)(4) election applies.
Use Table 2 for a passenger automobile
(other than a truck or van) placed in service
by the taxpayer in calendar year 2009, for
which the 50 percent additional first year
depreciation deduction applies. Use Table
3 for a truck or van placed in service by the
taxpayer in calendar year 2009, for which
the 50 percent additional first year depre-
ciation deduction does not apply, includ-
ing a truck or van in a class of property for
which the taxpayer elects out of the 50 per-
cent additional first year depreciation de-
duction or a truck or van that is eligible
qualified property to which the § 168(k)(4)
election applies. Use Table 4 for a truck
or van placed in service by the taxpayer in
calendar year 2009, for which the 50 per-
cent additional first year depreciation de-
duction applies.
REV. PROC. 2009–24 TABLE 1
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)
PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT
ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY
Tax YearAmount
1st Tax Year
$2,960
2nd Tax Year
$4,800
3rd Tax Year
$2,850
Each Succeeding Year
$1,775
REV. PROC. 2009–24 TABLE 2
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS)
PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT
ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year
$10,960
2nd Tax Year
$4,800
3rd Tax Year
$2,850
Each Succeeding Year
$1,775
April 27, 20098872009–17 I.R.B.

REV. PROC. 2009–24 TABLE 3
DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAX-
PAYER IN CALENDAR YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR
DEPRECIATION DEDUCTION DOES NOT APPLY
Tax YearAmount
1st Tax Year
$3,060
2nd Tax Year
$4,900
3rd Tax Year
$2,950
Each Succeeding Year
$1,775
REV. PROC. 2009–24 TABLE 4
DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE BY THE TAXPAYER IN CALENDAR
YEAR 2009, FOR WHICH THE 50 PERCENT ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year
$11,060
2nd Tax Year
$4,900
3rd Tax Year
$2,950
Each Succeeding Year
$1,775
.03Inclusions in Income of Lessees of
Passenger Automobiles.
The inclusion amounts for passenger
automobiles first leased in calendar year
2009 are calculated under the procedures
described in § 1.280F–7(a). Lessees of
passenger automobiles other than trucks
and vans should use Table 5 of this revenue
procedure in applying these procedures,
while lessees of trucks and vans should use
Table 6 of this revenue procedure.
REV. PROC. 2009–24 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THATARENOTTRUCKSORVANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009
Fair Market Value of Passenger
AutomobileTax Year During Lease
OverNot Over1st2nd3rd4th5th & Later
$18,500$19,000
919283438
19,
000
19,500
1021323843
19,500
20,0001124364248
20,000
20
,500
12273946
54
20,500
21
,000
132943
5158
21,000
21,50015
3147
55
64
2
1,500
22,0001634
5
0
6068
2
2,000
2
3,000
1
7
3
8
56
6
6
7
6
23,00024,000204264
75
86
24,000
2
5,000
2247718496
25,000
2
6,000
2
4
52
7
8
9
3
1
07
26,00027,00026
5885
101117
27,00028,000296293110127
28,00029,0003167100119138
29,00030,0003372108128147
30,00031,000
35
77
115
137
157
31,00032,0003882122146167
32,00033,0004087129
155
178
33,00034,0004292137163188
2009–17 I.R.B.888April 27, 2009

REV. PROC. 2009–24 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THATARENOTTRUCKSORVANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009
Fair Market Value of Passenger
AutomobileTax Year During Lease
OverNot Over1st2nd3rd4th5th & Later
34,000
35,000
4497144172199
35,000
36,00047102
151
181208
36,00037,00049107
159
189219
37,00038,000
51
112166199228
38,00039,000
53
117173208239
39,00040,000
56
122180216
250
40,00041,000
58
127188
225259
41,00042,00060132
195
234269
42,00043,00062137203242280
43,00044,000
65
141210
252
290
44,000
45,000
67146218260300
45,000
46,00069
151225
269311
46,00047,00071
157
232278320
47,00048,00074161240286331
48,00049,00076166247296340
49,000
50,000
78171
255
304
351
50,00051,000
80176262313361
51,00052,000
83181269322371
52,00053,00085
186276331381
53,00054,000
87191284339392
54,00055,000
89196291349401
55,00056,000
92201298
357
412
56,00057,000
94206306
365
423
57,00058,000
96211313
375
432
58,00059,000
98216320384442
59,000
60,000101221327393
452
60,00062,000104228339406467
62,00064,000109238
353
424488
64,00066,000113248368441
509
66,00068,000118
258
382
459529
68,00070,000122268397476
550
70,00072,000127277413493
570
72,00074,000131288427
511590
74,00076,000136297442
529
610
76,00078,000140307
457546
631
78,00080,000
145
317471
564651
80,000
85,000152335
497
595
686
85,000
90,000164
359534
639737
90,000
95,000175
384
570
683789
95,000
100,000186409607727839
100,000110,000203446662793916
110,000120,000226
495
7368811,018
120,000130,000248
545
8099701,119
130,000140,000271
594
883
1,058
1,220
140,000
150,000
293644
956
1,1461,322
150,000
160,0003166931,0301,2341,424
160,000170,0003387431,1031,322
1,526
170,000180,0003617921,1771,4101,628
180,000190,000383842
1,250
1,4981,730
190,000200,0004068911,324
1,586
1,831
200,000210,0004289411,397
1,675
1,932
210,000220,000
451
9901,4711,762
2,035
220,000230,0004731,040
1,5441,851
2,136
April 27, 20098892009–17 I.R.B.

REV. PROC. 2009–24 TABLE 5
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
(THATARENOTTRUCKSORVANS)
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009
Fair Market Value of Passenger
AutomobileTax Year During Lease
OverNot Over1st2nd3rd4th5th & Later
230,000240,0004961,0891,6181,9392,238
240,000And up
518
1,1391,6912,0272,340
REV. PROC. 2009–24 TABLE 6
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009
Fair Market Value of Electric
AutomobileTax Year During Lease
OverNot Over1st2nd3rd4th5th and Later
$18,500$19,000
817
25
30
35
19,000
19,500
91929
35
40
19,500
20,00010223338
45
20,000
20,500
11
25
3643
50
20,500
21,00012274048
55
21,000
21,500
133043
52
60
21,500
22,000
15
3247
56
66
22,00023,0001636
52
6472
23,00024,0001841607283
24,000
25,000
21
45
688193
25,000
26,00023
5075
90103
26,00027,000
2556
8298114
27,00028,000276189107124
28,00029,00030
65
97116134
29,00030,0003270104
125
144
30,00031,00034
75
112134
154
31,00032,0003680119143164
32,00033,00039
85
126
151175
33,00034,0004190134160184
34,000
35,000
43
95
141169
195
35,000
36,000
45
100148178
205
36,00037,00048
105155
187
215
37,00038,000
50
110163
195
226
38,00039,000
52115
170204236
39,00040,000
55
120177213246
40,00041,000
57125185
221
256
41,00042,000
59
130192231266
42,00043,00061
135
199240276
43,00044,00064139207249286
44,000
45,000
66144
215257
296
45,000
46,00068149222266307
46,00047,00070
155
229274317
47,00048,00073
159
237283327
48,00049,000
75
164244292338
49,000
50,000
77169
251
301348
50,00051,000
79174
259
310
357
51,00052,000
82179266318368
52,00053,000
84184273328378
53,00054,000
86189281336388
54,00055,000
88194288
345
399
55,00056,000
91199
295354
408
2009–17 I.R.B.890April 27, 2009

REV. PROC. 2009–24 TABLE 6
DOLLAR AMOUNTS FOR TRUCKS AND VANS
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2009
Fair Market Value of Electric
AutomobileTax Year During Lease
OverNot Over1st2nd3rd4th5th and Later
56,00057,000
93204302363419
57,00058,00095
209310371429
58,00059,000
97214317381439
59,000
60,000100219324389
450
60,00062,000103226336402
465
62,00064,000107236
351
420
485
64,00066,000112246
365
438
505
66,00068,000116
256
380
455526
68,00070,000121266394473
546
70,00072,000
125
276409491
566
72,00074,000130286423
509586
74,00076,000134296438
526
607
76,00078,000139
305454543
627
78,00080,000143316467
561
648
80,000
85,000151
333493
592
684
85,000
90,000163
357531635735
90,000
95,000
174382
567
680
785
95,000
100,000
185
407604724836
100,000110,000202444
659
790912
110,000120,000
225
4937338781,014
120,000130,000247
543
8069661,116
130,000140,000270
592
880
1,054
1,218
140,000
150,000
292642
953
1,1431,319
150,000
160,000
315
6911,0271,2301,421
160,000170,0003377411,1001,319
1,522
170,000180,0003607901,1741,4071,624
180,000190,0003828401,247
1,495
1,726
190,000200,000
405
8891,321
1,583
1,828
200,000210,0004279391,3941,6711,930
210,000220,000
450
9881,468
1,759
2,031
220,000230,0004721,038
1,541
1,8472,134
230,000240,000
495
1,087
1,6151,9352,235
240,000and up
517
1,1371,6882,0242,336
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to pas-
senger automobiles (other than leased pas-
senger automobiles) that are first placed in
service by a taxpayer during calendar year
2009, and to leased passenger automobiles
that are first leased by a taxpayer during
calendar year 2009.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Bernard P. Harvey of the Of-
fice of Associate Chief Counsel (Income
Tax & Accounting). For further infor-
mation regarding this revenue procedure,
contact Mr. Harvey at (202) 622–4930
(not a toll-free call).
April 27, 20098912009–17 I.R.B.

Part IV. Items o
fGeneralInterest
Announcement of Disciplinary Sanctions From the Office
of Professional Responsibility
Announcement 2009-35
TheOfficeofProfessionalResponsi-
bility (OPR) announcesrecent disciplinary
sanctions involving attorneys, certified
public accountants, enrolled agents, en-
rolled actuaries, enrolled retirement plan
agents, and appraisers. These individuals
are subject to the regulations governing
practice before the Internal Revenue Ser-
vice (IRS), which are set out in Title 31,
Code of Federal Regulations, Part 10, and
which are published in pamphlet form as
Treasury Department Circular No. 230.
The regulations prescribe the duties and
restrictions relating to such practice and
prescribe the disciplinary sanctions for
violating the regulations.
The disciplinary sanctions to be im-
posed for violation of the regulations are:
Disbarred from practice before the
IRS—An individual who is disbarred is
not eligible to represent taxpayers before
the IRS.
Suspended from practice before the
IRS—An individual who is suspended is
not eligible to represent taxpayers before
the IRS during the term of the suspension.
Censured in practice before the
IRS—Censure is a public reprimand. Un-
like disbarment or suspension, censure
does not affect an individual’s eligibility
to represent taxpayers before the IRS, but
OPR may subject the individual’s future
representations to conditions designed to
promote high standards of conduct.
Monetary penalty—A monetary
penalty may be imposed on an individual
who engages in conduct subject to sanc-
tion or on an employer, firm, or entity
if the individual was acting on its behalf
and if it knew, or reasonably should have
known, of the individual’s conduct.
Disqualification of appraiser—An
appraiser who is disqualified is barred
from presenting evidence or testimony in
any administrative proceeding before the
Department of the Treasury or the IRS.
Under the regulations, attorneys, cer-
tified public accountants, enrolled agents,
enrolled actuaries, and enrolled retirement
plan agents may not assist, or accept assis-
tance from, individuals who are suspended
or disbarred with respect to matters consti-
tuting practice (i.e., representation) before
the IRS, and they may not aid or abet sus-
pended or disbarred individuals to practice
before the IRS.
Disciplinary sanctions are described in
these terms:
Disbarred by decision after hearing,
Suspended by decision after hearing,
Censured by decision after hearing,
Monetary penalty imposed after hear-
ing, and Disqualified after hearing—An
administrative law judge (ALJ) conducted
an evidentiary hearing upon OPR’s com-
plaint alleging violation of the regulations
and issued a decision imposing one of
these sanctions. After 30 days from the
issuance of the decision, in the absence of
an appeal, the ALJ’s decision became the
final agency decision.
Disbarred by default decision, Sus-
pended by default decision, Censured by
default decision, Monetary penalty im-
posed by default decision, and Disqual-
ified by default decision—An ALJ, after
findingthatnoanswertoOPR’scomplaint
had been filed, granted OPR’s motion for a
default judgment and issued a decision im-
posing one of these sanctions.
Disbarment by decision on appeal,
Suspended by decision on appeal, Cen-
sured by decision on appeal, Monetary
penalty imposed by decision on ap-
peal, and Disqualified by decision on
appeal—The decision of the ALJ was
appealed to the agency appeal authority,
acting as the delegate of the Secretary
of the Treasury, and the appeal authority
issued a decision imposing one of these
sanctions.
Disbarred by consent, Suspended by
consent, Censured by consent, Mone-
tary penalty imposed by consent, and
Disqualified by consent—In lieu of a
disciplinary proceeding being instituted
or continued, an individual offered a con-
sent to one of these sanctions and OPR
accepted the offer. Typically, an offer
of consent will provide for: suspension
for an indefinite term; conditions that the
individual must observe during the sus-
pension; and the individual’s opportunity,
after a stated number of months, to file
with OPR a petition for reinstatement af-
firming compliance with the terms of the
consent and affirming current eligibility
to practice (i.e., an active professional
license or active enrollment status). An
enrolled agent or an enrolled retirement
plan agent may also offer to resign in order
to avoid a disciplinary proceeding.
Suspended by decision in expedited
proceeding, Suspended by default de-
cision in expedited proceeding, Sus-
pended by consent in expedited pro-
ceeding—OPR instituted an expedited
proceeding for suspension (based on cer-
tain limited grounds, including loss of a
professional license and criminal convic-
tions).
OPR has authority to disclose the
grounds for disciplinary sanctions in these
situations: (1) an ALJ or the Secretary’s
delegate on appeal has issued a decision
on or after September 26, 2007, which was
theeffectivedateofamendmentstothe
regulations that permit making such deci-
sions publicly available; (2) the individual
has settled a disciplinary case by signing
OPR’s “consent to sanction” form, which
requires consenting individuals to admit to
one or more violations of the regulations
and to consent to the disclosure of the in-
dividual’s own return information related
to the admitted violations (for example,
failure to file Federal income tax returns);
or (3) OPR has issued a decision in an
expedited proceeding for suspension.
Announcements of disciplinary sanc-
tions appear in the Internal Revenue Bul-
letin at the earliest practicable date. The
sanctions announced below are alphabet-
ized first by the names of states and sec-
ond by the last names of individuals. Un-
less otherwise indicated, section numbers
(e.g., §10.51) refer to the regulations.
2009–17 I.R.B.892April 27, 2009

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Alabama
StocktonAiken, Karen H.CPASuspended by decision
in expedited proceeding
under §10.82 (revocation
of CPA license)
Indefinite from
March 30, 2009
Alaska
AnchorageLabahn, William S.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(attorney disbarment in
New York)
Indefinite from
April 3, 2009
California
DowneyVeen, Steven C.CPASuspended by decision
in expedited proceeding
under §10.82 (revocation
of CPA license)
Indefinite from
March 9, 2009
Florida
CrawfordvilleStrickland, Beverly A. Enrolled AgentSuspended by consent
for violation of § 10.51
(failure to file several tax
returns)
Indefinite from
March 23, 2009
Illinois
BurbankRoupas, Dean J.AttorneySuspended by default
decision in expedited
proceeding under
§10.82 (conviction under
18 U.S.C. § 666, corruptly
offering and giving cash
intending to influence and
reward)
Indefinite from
March 30, 2009
Kentucky
LexingtonSebastian, Ruth A.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(suspension of attorney
license)
Indefinite from
April 3, 2009
Louisiana
Baton RougeSims, Carvel A.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(suspension of attorney
license)
Indefinite from
April 3, 2009
April 27, 20098932009–17 I.R.B.

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Massachusetts
SwanseaScallon, Edwin T.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(suspension of attorney
license)
Indefinite from
April 3, 2009
Nebraska
OmahaHubbard, John E.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(suspension of attorney
license)
Indefinite from
April 3, 2009
New Jersey
South OrangeDavis, Jr., EdwinCPADisbarred by decision on
appeal for violation of
§10.51 (willfully failing
to make a Federal tax
return)
Indefinite from
March 10, 2009
MetuchenHronich, Michael A.CPASuspended by consent
for violation of § 10.51
(failure to file several tax
returns)
Indefinite from
March 6, 2009
New York
BrooklynFein, LeonardCPASuspended by decision
on appeal for violation of
§10.51 (willfully failing
to make a Federal tax
return)
Indefinite from
October 17, 2008
SuffernGinsberg, MartinEnrolled AgentSuspended by consent
for violation of § 10.51
(failure to file several tax
returns)
Indefinite from
March 23, 2009
Port WashingtonHolzberg, BryanJ.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(suspension of attorney
license)
Indefinite from
March 31, 2009
Labahn, William S.,
See Alaska
North Carolina
ConcordBlack, PamelaEnrolled AgentSuspended by consent
for violation of § 10.51
(failure to file several tax
returns)
Indefinite from
March 23, 2009
2009–17 I.R.B.894April 27, 2009

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
North Carolina (Continued)
CharlotteCardinal, Roger C.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(attorney disbarment)
Indefinite from
April 3, 2009
RolesvilleRobinson, AmyAttorneySuspended by default
decision in expedited
proceeding under §10.82
(attorney disbarment)
Indefinite from
March 31, 2009
Elm CityWatson, Hilda G.CPASuspended by default
decision in expedited
proceeding under §10.82
(revocation of CPA
license)
Indefinite from
April 3, 2009
Ohio
BeachwoodRubin, Kimball E.CPASuspended by decision
in expedited proceeding
under §10.82 (conviction
under 26 U.S.C. § 7203,
failure to file tax returns)
Indefinite from
December 17,
2008
Pennsylvania
DevonMoose, Richard E.AttorneyDisbarred by decision on
appeal for violation of
§10.51 (willfully failing
to make a Federal tax
return)
Indefinite from
March 16, 2009
NorristownNoonan, GregoryCPADisbarred by default
decision for violation
of §10.51 (failure to
file Federal income tax
returns)
Indefinite from
February 4, 2009
Texas
BrownsvilleAltemeyer, Sandra L.CPASuspended by decision
in expedited proceeding
under §10.82 (suspension
CPA license)
Indefinite from
March 31, 2009
DallasNgoyi, Ngoyi P.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(attorney disbarment)
Indefinite from
March 25, 2009
HoustonSandel, Michael W.AttorneySuspended by default
decision in expedited
proceeding under §10.82
(attorney disbarment)
Indefinite from
March 25, 2009
April 27, 20098952009–17 I.R.B.

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 ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
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 withmodi-
fied,below).
Clarifiedis 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
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis 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
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings 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.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes 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 pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis 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 rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis 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 cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
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—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2009–17 I.R.B.iApril 27, 2009

Numerical Finding List
1
Bulletins 2009–1 through 2009–17
Announcements:
2009-1, 2009-1 I.R.B.242
2009-2, 2009-5 I.R.B.424
2009-3, 2009-6 I.R.B.459
2009-4, 2009-8 I.R.B.597
2009-5, 2009-8 I.R.B.569
2009-6, 2009-9 I.R.B.643
2009-7, 2009-10 I.R.B.663
2009-8, 2009-8 I.R.B.598
2009-9, 2009-9 I.R.B.643
2009-10, 2009-9 I.R.B.644
2009-11, 2009-10 I.R.B.663
2009-12, 2009-11 I.R.B.686
2009-13, 2009-11 I.R.B.686
2009-14, 2009-11 I.R.B.687
2009-15, 2009-11 I.R.B.687
2009-16, 2009-11 I.R.B.691
2009-17, 2009-12 I.R.B.714
2009-18, 2009-12 I.R.B.714
2009-19, 2009-12 I.R.B.715
2009-20, 2009-12 I.R.B.716
2009-21, 2009-13 I.R.B.730
2009-22, 2009-13 I.R.B.731
2009-23, 2009-13 I.R.B.731
2009-24, 2009-13 I.R.B.732
2009-25, 2009-14 I.R.B.755
2009-26, 2009-14 I.R.B.755
2009-27, 2009-14 I.R.B.756
2009-28, 2009-15 I.R.B.760
2009-29, 2009-14 I.R.B.757
2009-30, 2009-15 I.R.B.794
2009-31, 2009-15 I.R.B.798
2009-32, 2009-15 I.R.B.799
2009-33, 2009-15 I.R.B.799
2009-35, 2009-17 I.R.B.892
Notices:
2009-1, 2009-2 I.R.B.250
2009-2, 2009-4 I.R.B.344
2009-3, 2009-2 I.R.B.250
2009-4, 2009-2 I.R.B.251
2009-5, 2009-3 I.R.B.309
2009-6, 2009-3 I.R.B.311
2009-7, 2009-3 I.R.B.312
2009-8, 2009-4 I.R.B.347
2009-9, 2009-5 I.R.B.419
2009-10, 2009-5 I.R.B.419
2009-11, 2009-5 I.R.B.420
2009-12, 2009-6 I.R.B.446
2009-13, 2009-6 I.R.B.447
2009-14, 2009-7 I.R.B.516
2009-15, 2009-6 I.R.B.449
Notices— Continued:
2009-16, 2009-8 I.R.B.572
2009-17, 2009-8 I.R.B.575
2009-18, 2009-10 I.R.B.648
2009-19, 2009-10 I.R.B.660
2009-20, 2009-12 I.R.B.711
2009-21, 2009-13 I.R.B.724
2009-22, 2009-14 I.R.B.741
2009-23, 2009-16 I.R.B.802
2009-24, 2009-16 I.R.B.817
2009-25, 2009-15 I.R.B.758
2009-26, 2009-16 I.R.B.833
2009-27, 2009-16 I.R.B.838
2009-29, 2009-16 I.R.B.849
2009-30, 2009-16 I.R.B.852
2009-31, 2009-16 I.R.B.856
2009-32, 2009-17 I.R.B.865
2009-33, 2009-17 I.R.B.865
2009-34, 2009-17 I.R.B.876
2009-35, 2009-17 I.R.B.876
2009-36, 2009-17 I.R.B.883
Proposed Regulations:
REG-144615-02, 2009-7 I.R.B.561
REG-148568-04, 2009-5 I.R.B.421
REG-160872-04, 2009-4 I.R.B.358
REG-158747-06, 2009-4 I.R.B.362
REG-116699-07, 2009-13 I.R.B.727
REG-138326-07, 2009-9 I.R.B.638
REG-143686-07, 2009-8 I.R.B.579
REG-150670-07, 2009-4 I.R.B.378
REG-113462-08, 2009-4 I.R.B.379
REG-147636-08, 2009-9 I.R.B.641
REG-150066-08, 2009-5 I.R.B.423
Revenue Procedures:
2009-1, 2009-1 I.R.B.1
2009-2, 2009-1 I.R.B.87
2009-3, 2009-1 I.R.B.107
2009-4, 2009-1 I.R.B.118
2009-5, 2009-1 I.R.B.161
2009-6, 2009-1 I.R.B.189
2009-7, 2009-1 I.R.B.226
2009-8, 2009-1 I.R.B.229
2009-9, 2009-2 I.R.B.256
2009-10, 2009-2 I.R.B.267
2009-11, 2009-3 I.R.B.313
2009-12, 2009-3 I.R.B.321
2009-13, 2009-3 I.R.B.323
2009-14, 2009-3 I.R.B.324
2009-15, 2009-4 I.R.B.356
2009-16, 2009-6 I.R.B.449
2009-17, 2009-7 I.R.B.517
2009-18, 2009-11 I.R.B.670
2009-19, 2009-14 I.R.B.747
2009-20, 2009-14 I.R.B.749
Revenue Procedures— Continued:
2009-21, 2009-16 I.R.B.860
2009-22, 2009-16 I.R.B.862
2009-23, 2009-17 I.R.B.884
2009-24, 2009-17 I.R.B.885
Revenue Rulings:
2009-1, 2009-2 I.R.B.248
2009-2, 2009-2 I.R.B.245
2009-3, 2009-5 I.R.B.382
2009-4, 2009-5 I.R.B.408
2009-5, 2009-6 I.R.B.432
2009-6, 2009-12 I.R.B.694
2009-7, 2009-13 I.R.B.717
2009-8, 2009-10 I.R.B.645
2009-9, 2009-14 I.R.B.735
2009-10, 2009-14 I.R.B.738
Tax Conventions:
2009-5, 2009-8 I.R.B.569
Treasury Decisions:
9434, 2009-4 I.R.B.339
9435, 2009-4 I.R.B.333
9436, 2009-3 I.R.B.268
9437, 2009-4 I.R.B.341
9438, 2009-5 I.R.B.387
9439, 2009-5 I.R.B.416
9440, 2009-5 I.R.B.409
9441, 2009-7 I.R.B.460
9442, 2009-6 I.R.B.434
9443, 2009-8 I.R.B.564
9444, 2009-9 I.R.B.603
9445, 2009-9 I.R.B.635
9446, 2009-9 I.R.B.607
9447, 2009-12 I.R.B.694
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin
2008–52, dated December 29, 2008.
April 27, 2009ii2009–17 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2009–1 through 2009–17
Notices:
99-35
Obsoleted by
Notice 2009-15, 2009-6 I.R.B.449
2001-55
Modified by
Notice 2009-1, 2009-2 I.R.B.250
2002-27
Modified by
Notice 2009-9, 2009-5 I.R.B.419
2005-74
Obsoleted by
T.D. 9446, 2009-9 I.R.B.607
2007-26
Modified by
Notice 2009-15, 2009-6 I.R.B.449
2007-52
Clarified, modified, and amplified by
Notice 2009-24, 2009-16 I.R.B.817
2007-53
Clarified, modified, and ampilfied by
Notice 2009-23, 2009-16 I.R.B.802
2007-54
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
2008-11
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
2008-12
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
Rev. Proc. 2009-11, 2009-3 I.R.B.313
2008-13
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
List of forms modified and superseded by
Rev. Proc. 2009-11, 2009-3 I.R.B.313
Modified and clarified by
Notice 2009-5, 2009-3 I.R.B.309
2008-46
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
Rev. Proc. 2009-11, 2009-3 I.R.B.313
2008-100
Amplified and superseded by
Notice 2009-14, 2009-7 I.R.B.516
Notices— Continued:
2008-110
Modified by
Notice 2009-34, 2009-17 I.R.B.876
Proposed Regulations:
REG-144615-02
Corrected by
Ann. 2009-19, 2009-12 I.R.B.715
REG-149519-03
Withdrawn by
Ann. 2009-4, 2009-8 I.R.B.597
REG-148326-05
Corrected by
Ann. 2009-14, 2009-11 I.R.B.687
REG-158747-06
Hearing scheduled by
Ann. 2009-29, 2009-14 I.R.B.757
REG-150066-08
Corrected by
Ann. 2009-31, 2009-15 I.R.B.798
Revenue Procedures:
2007-17
Superseded by
Rev. Proc. 2009-14, 2009-3 I.R.B.324
2007-66
Modified and superseded by
Rev. Proc. 2009-21, 2009-16 I.R.B.860
2007-68
Superseded by
Rev. Proc. 2009-17, 2009-7 I.R.B.517
2007-71
Modified by
Notice 2009-3, 2009-2 I.R.B.250
2008-1
Superseded by
Rev. Proc. 2009-1, 2009-1 I.R.B.1
2008-2
Superseded by
Rev. Proc. 2009-2, 2009-1 I.R.B.87
2008-3
Superseded by
Rev. Proc. 2009-3, 2009-1 I.R.B.107
2008-4
Superseded by
Rev. Proc. 2009-4, 2009-1 I.R.B.118
2008-5
Superseded by
Rev. Proc. 2009-5, 2009-1 I.R.B.161
Revenue Procedures— Continued:
2008-6
Superseded by
Rev. Proc. 2009-6, 2009-1 I.R.B.189
2008-7
Superseded by
Rev. Proc. 2009-7, 2009-1 I.R.B.226
2008-8
Superseded by
Rev. Proc. 2009-8, 2009-1 I.R.B.229
2008-9
Superseded by
Rev. Proc. 2009-9, 2009-2 I.R.B.256
2008-17
Obsoleted in part by
Rev. Proc. 2009-18, 2009-11 I.R.B.670
2008-61
Superseded by
Rev. Proc. 2009-3, 2009-1 I.R.B.107
2008-65
Amplified and supplemented by
Rev. Proc. 2009-16, 2009-6 I.R.B.449
2008-66
Modified and superseded by
Rev. Proc. 2009-21, 2009-16 I.R.B.860
2008-68
Amplified and superseded by
Rev. Proc. 2009-15, 2009-4 I.R.B.356
Revenue Rulings:
65-286
Obsoleted by
T.D. 9435, 2009-4 I.R.B.333
71-381
Obsoleted in part by
Rev. Rul. 2009-9, 2009-14 I.R.B.735
76-54
Obsoleted by
T.D. 9435, 2009-4 I.R.B.333
92-19
Supplemented by
Rev. Rul. 2009-3, 2009-5 I.R.B.382
2008-19
Modified by
Rev. Rul. 2009-3, 2009-5 I.R.B.382
Treasury Decisions:
9436
Corrected by
Ann. 2009-15, 2009-11 I.R.B.687
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin 2008–52, dated December 29,
2008.
2009–17 I.R.B.iiiApril 27, 2009

Treasury Decisions— Continued:
9438
Corrected by
Ann. 2009-30, 2009-15 I.R.B.794
9439
Corrected by
Ann. 2009-12, 2009-11 I.R.B.686
9441
Corrected by
Ann. 2009-18, 2009-12 I.R.B.714
9442
Corrected by
Ann. 2009-13, 2009-11 I.R.B.686
Ann. 2009-20, 2009-12 I.R.B.716
9446
Corrected by
Ann. 2009-23, 2009-13 I.R.B.731
April 27, 2009iv2009–17 I.R.B.

INDEX
Internal Revenue Bulletins 2009–1 through
2009–17
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Asset valuation, funding (Notice 22) 14,741
Calculation of amount includible in income under section 409A,
correction to REG–148326–05 (Ann 14) 11,703
COBRA continuation coverage (Notice 27) 16,838
Contributions, automatic contribution arrangements (TD 9447)
12,694
Determination letters, issuing procedures (RP 6) 1,189
Full funding limitations, weighted average interest rates, seg-
ments rates for:
January 2009 (Notice 2) 4,344
February 2009 (Notice 16) 8,572
March 2009 (Notice 20) 12,711
Interim guidance under section 457A relating to deferred com-
pensation of nonqualified entities (Notice 8) 4,347
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,107
Associate Chief Counsel (International) (RP 7) 1,226
And general information letters, procedures (RP 4) 1,118
User fees, request for letter rulings (RP 8) 1,229
Multiemployer plans, funding (Notice 31) 16,856
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
Tax return preparer (TD 9436) 3,268; correction (Ann. 15)
11,703
Qualified retirement plans:
Covered compensation tables, permitted disparity (RR 2) 2,
245
Required minimum distributions (RMDs) (Notice 9) 5,419
EMPLOYEE PLANS—Cont.
Section 403(b) plans, writtenplan requirement (Notice 3) 2,
250
Regulations:
26 CFR 1.401(k)–0 thru –3, –6, amended; 1.401(m)–0 thru
–3, amended; 1.402(c)–2, amended; 1.411(a)–4, amended;
1.414(w)–1, added; 54.4979–1, revised; automatic contri-
bution arrangements (TD 9447) 12,694
26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2,
amended; 1.6694–0 thru –4, revised; 1.6695–1, –2, revised;
1.6696–1, revised; 54.6060–1, added; 54.6107–1, added;
54.6109–1, added; 54.6694–1 thru –4, added; 54.6695–1,
added; 54.6696–1, added; 54.7701–1, added; tax return pre-
parer penalties under sections 6694 and 6695 (TD 9436) 3,
268; correction (Ann 15) 11,703
Technical advice to IRS employees (RP 5) 1,161
EMPLOYMENT TAX
COBRA continuation coverage (Notice 27) 16,838
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
Tax return preparer (TD 9436) 3,268;correction(Ann15)11,
687
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action (TD
9443) 8,564
Proposed Regulations:
26 CFR 31.3402(t)–0 thru –6, added and reserved;
31.3402(t)–7, added;31.3406(g)–2, amended;
31.6011(a)–4, amended; 31.6051–5, added; 31.6071(a)–1,
amended; 31.6302–1, –4, amended; withholding under
section 3402(t) (REG–158747–06) 4,362; hearing (Ann
29) 14,757
26 CFR 31.6011(a)–1, -4, amended; 31.6302–0, –1, amended;
employer’s annual federal tax return and modifications to
the deposit rules (REG–148568–04) 5,421
Qualification to file Form 944, Employer’s ANNUAL Federal
Tax Return, or request to file Form 941, Employer’s QUAR-
TERLY Federal Tax Return (RP 13) 3,323
Regulations:
26 CFR 31.6011(a)–1, –4, amended; 31.6011(a)–1T, –4T,
revised; 31.6302–0, –1, amended; 31.6302–0T, added;
31.6302–1T, revised; employer’s annual federal tax return
and modifications to the deposit rules (TD 9440) 5,409
26 CFR 31.6060–1, added; 31.6107–1, added; 31.6109–2,
added; 31.6694–1 thru –4, added; 31.6695–1, added;
31.6696–1, added; 31.7701–1, added; tax return preparer
penalties under sections 6694 and 6695 (TD 9436) 3,268;
correction (Ann 15) 11,687
2009–17 I.R.B.vApril 27, 2009

EMPLOYMENT TAX—Cont.
26 CFR 301.7508A–1, amended; postponement of certain
tax-related deadlines by reason of a federally declared dis-
aster or terroristic or military action (TD 9443) 8,564
Technical Advice Memoranda (TAMs) (RP 2) 1,87
Time for filing employment tax returns and modifications to de-
posit rules (TD 9440) 5,409; (REG–148568–04) 5,421
Withholding on payments by government entities for property
and services (REG–158747–06) 4,362;hearing(Ann29)14,
757
ESTATE TAX
Actuarial tables under section 7520, update (Notice 18) 10,648
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
Tax return preparer (TD 9436) 3,268; correction (Ann 15) 11,
687
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action (TD
9443) 8,564
Regulations:
26 CFR 20.6060–1, added; 20.6107–1, added; 20.6109–1,
added; 20.6694–1 thru –4, added; 20.6695–1, added;
20.6696–1, added; 20.7701–1, added; 26.6060–1, added;
26.6107–1, added; 26.6109–1, added; 26.6694–1 thru –4,
added; 26.6695–1, added; 26.6696–1, added; 26.7701–1,
added; tax return preparer penalties under sections 6694
and 6695 (TD 9436) 3,268; correction (Ann 15) 11,687
26 CFR 301.7508A–1, amended; postponement of certain
tax-related deadlines by reason of a federally declared dis-
aster or terroristic or military action (TD 9443) 8,564
Technical Advice Memoranda (TAMs) (RP 2) 1,87
EXCISE TAX
Credits:
Biodiesal and renewable diesel fuels credit, extension of the
old ASTM D6751 standard until September 30, 2009 (No-
tice 34) 17,876
Calculation of volume of denaturants in alcohol for fuel cred-
its (Notice 6) 3,311
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Mandatory electronic filing of certain excise tax returns, impo-
sition and computation of tax, credits and refunds for certain
uses and sales of vehicles (REG–116699–07) 13,727
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
EXCISE TAX—Cont.
Tax return preparer (TD 9436) 3,268;correction(Ann15)11,
687
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action (TD
9443) 8,564
Proposed Regulations:
26 CFR 41.4481–1, –2, amended; 41.4483–3, amended;
41.4483–7, removed; 41.6001–1, –2, amended;
41.6011(a)–1, amended; 41.6071(a)–1, amended;
41.6156–1, removed; highway use tax; sold vehicles and
electronic filing (REG–116699–07) 13,727
Regulations:
26 CFR 40.6060–1, added; 40.6107–1, added; 40.6109–1,
added; 40.6694–1 thru –4, added; 40.6695–1, added;
40.6696–1, added; 40.7701–1, added; 41.6060–1,
added; 41.6107–1, added; 41.6109–2, added; 41.6694–1
thru –4, added; 41.6695–1, added; 41.6696–1, added;
41.7701–1, added; 44.6060–1, added; 44.6107–1,
added; 44.6109–1, added; 44.6694–1 thru –4, added;
44.6695–1, added; 44.6696–1, added; 44.7701–1,
added; 55.6060–1, added; 55.6107–1, added; 55.6109–1,
added; 55.6694–1 thru –4, added; 55.6695–1, added;
55.6696–1, added; 55.7701–1, added; 156.6060–1, added;
156.6107–1, added; 156.6109–1, added; 156.6694–1
thru –4, added; 156.6695–1, added; 156.6696–1, added;
156.7701–1, added; 157.6060–1, added; 157.6107–1,
added; 157.6109–1, added; 157.6694–1 thru –4, added;
157.6695–1, added; 157.6696–1, added; 157.7701–1,
added; 301.7701–15, amended; tax return preparer penal-
ties under sections 6694 and 6695 (TD 9436) 3,268;
correction (Ann 15) 11,687
26 CFR 301.7508A–1, amended; postponement of certain
tax-related deadlines by reason of a federally declared dis-
aster or terroristic or military action (TD 9443) 8,564
Technical Advice Memoranda (TAMs) (RP 2) 1,87
EXEMPT ORGANIZATIONS
Academic institution initiative, comments (Ann 26) 14,755
Annual notice to donors regarding pending and settled declara-
tory judgment suits (Ann 1) 1,242
Declaratory judgment suits (Ann 33) 15,799
Division website address, request for comments (Ann 25) 14,755
Letter rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,107
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 2,256
And general information letters, procedures (RP 4) 1,118
User fees, request for letter rulings (RP 8) 1,229
List of organizations classified as private foundations (Ann 9) 9,
643; (Ann 22) 13,731
April 27, 2009vi2009–17 I.R.B.

EXEMPT ORGANIZATIONS—Cont.
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
Tax return preparer (TD 9436) 3,268; correction (Ann 15) 11,
687
Regulations:
26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2,
amended; 1.6694–0 thru –4, revised; 1.6695–1, –2, revised;
1.6696–1, revised; 53.6060–1, added; 53.6107–1, added;
53.6109–1, added; 53.6694–1 thru –4, added; 53.6695–1,
added; 53.6696–1, added; 53.7701–1, added; 56.6060–1,
added; 56.6107–1, added; 56.6109–1, added; 56.6694–1
thru –4, added; 56.6695–1, added; 56.6696–1, added;
56.7701–1, added; tax return preparer penalties under
sections 6694 and 6695 (TD 9436) 3,268; correction (Ann
15) 11,687
Revocations (Ann 3) 6,459;(Ann10)9,644; (Ann 21) 13,730;
(Ann 27) 14,756; (Ann 32) 15,799
Suspension of tax-exempt statusof terrorist organization (Ann
17) 12,714
Technical advice to IRS employees (RP 5) 1,161
Tuition programs, modification to Notice 2001-55 (Notice 1) 2,
250
GIFT TAX
Actuarial tables under section 7520, update (Notice 18) 10,648
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
Tax return preparer (TD 9436) 3,268; correction (Ann 15) 11,
687
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action (TD
9443) 8,564
Regulations:
26 CFR 25.6060–1, added; 25.6107–1, added; 25.6109–1,
added; 25.6694–1 thru –4, added; 25.6695–1, added;
25.6696–1, added; 25.7701–1, added; tax return preparer
penalties under sections 6694 and 6695 (TD 9436) 3,268;
correction (Ann 15) 11,687
26 CFR 301.7508A–1, amended; postponement of certain
tax-related deadlines by reason of a federally declared dis-
aster or terroristic or military action (TD 9443) 8,564
Technical Advice Memoranda (TAMs) (RP 2) 1,87
INCOME TAX
Actuarial tables under section 7520, update (Notice 18) 10,648
Advance Pricing Agreement (APA) Program, annual report to the
public, 2008 (Ann 28) 15,760
INCOME TAX—Cont.
Allocation of consideration and allocation and recovery of
basis in transactions involvingcorporate stock or securities
(REG–143686–07) 8,579
Anonymous tax return information, disclosure by tax return pre-
parer (Notice 13) 6,447
Annual notice to donors regarding pending and settled declara-
tory judgment suits (Ann 1) 1,242
Bonds:
Allocation of qualified school construction bonds (QSCBs)
national limitation for 2009 (Notice 35) 17,876
Build America Bonds, Recovery Zone Economic Develop-
ment Bonds (Notice 26) 16,833
Qualified energy conservation bonds (QECBs), allocations
for 2009 (Notice 29) 16,849
Tax-exempt bonds, national zone academy bond limitation
(Notice 30) 16,852
Calculation of amount includible in income under section 409A,
correction to REG–148326–05 (Ann 14) 11,703
Conduit financing arrangements (REG–113462–08) 4,379
Consolidated returns, intercompany transactions (TD 9442) 6,
434; correction (Ann 13) 11,702; correction (Ann 20) 12,716
Corporations:
Creditor continuity of interest (TD 9434) 4,339
Foreign base company sales income (TD 9438) 5,387;cor-
rections (Ann 30) 15,794; (REG–150066–08) 5,423;cor-
rections (Ann 31) 15,798
Transaction of interest, controlled foreign corporation (CFC),
subpart F income partnership blocker (Notice 7) 3,312
Transfers by U.S. persons of stock or securities to foreign
corporations (TD 9446) 9,607;correction(Ann23)13,731
Transfers of stock or securitiesto foreign corporations under
section 304 (TD 9444) 9,603; (REG–147636–08) 9,641
Treatment of stock of a controlled corporation under section
355(a)(3)(B) (TD 9435) 4,333; (REG–150670–07) 4,378
Cost of living adjustments for inflation, recent statutory changes
(RP 21) 16,860
Credits:
First-time homebuyer credit, allocation between unmarried
co-purchasers (Notice 12) 6,446
Low-income housing credit (Notice 21) 13,724
New clean renewable energy bonds (Notice 33) 17,865
Nonconventional source fuel credit, inflation adjustment fac-
tor and phase-out amount for CY 2008 (Notice 32) 17,865
Qualifying advanced coal project credit (Notice 24) 16,817
Qualifying gasification project credit (Notice 23) 16,802
Rates for tax credit bonds (Notice 15) 6,449
Declaratory judgment suits (Ann 33) 15,799
Depreciation, 2009, limitationon depreciation deductions for
passenger automobiles (RP 24) 17,885
Depreciation, election to forgo additional first year depreciation
deduction (RP 16) 6,
449
Disciplinary actionsinvolving attorneys,certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 2) 5,424;
(Ann 8) 8,598; (Ann 11) 10,663; (Ann 16) 11,708; (Ann 24)
13,732;(Ann35)17,892
2009–17 I.R.B.viiApril 27, 2009

INCOME TAX—Cont.
Disclosure:
Of return information to the Bureau of Economic Analysis
(TD 9439) 5,416; correction (Ann 12) 11,702
Or use of information by preparers of returns (TD 9437) 4,
341
Disguised sales, section 707, REG–149519–03 withdrawn (Ann
4) 8,575
Employer-provided vehicles, cents-per-mile valuation rule, max-
imum vehicle values, 2009 (RP 12) 3,321
Foreign earned income exclusion (RP 22) 16,862
Guidance regarding treatmentof certain obligations under sec-
tion 956(c) (Notice 10) 5,419
Home Affordable Modification Program (HAMP):
Modifications of mortgage loans held by certain securitization
vehicles (RP 23) 17,884
Payments made to a REMIC (Notice 36) 17,883
Information reporting:
Deadline for brokers to furnish payee statements (Notice 11)
5,420
Payments made in settlement of payment card and third party
network transactions under section 6050W, request for
comments (Notice 19) 10,660
Requirements for brokers for sales and transfers of securities
and issuers of securities for corporation actions affecting
basis, request for comments (Notice 17) 8,575
Insurance companies, prevailing state assumed interest rate ta-
bles, 2009 (RR 3) 5,382
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2009 (RR 1) 2,248
February 2009 (RR 5) 6,432
March 2009 (RR 8) 10,645
April 2009 (RR 10) 14,738
Rates, underpayments and overpayments, quarter beginning:
April 1, 2009 (RR 7) 13,717
Interim guidance under section 457A relating to deferred com-
pensation of nonqualified entities (Notice 8) 4,347
Interim standards under section 6694(a) (Notice 5) 3,309
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,107
Associate Chief Counsel (International) (RP 7) 1,226
And information letters issued by Associate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1
Losses:
Net operating losses (RP 19) 14,747
Tax treatment of losses from criminally fraudulent investment
arrangements (RR 9) 14,735
Theft loss deductions from criminally fraudulent investment
arrangements (RP 20) 14,749
Money market fund, certain payments received from its invest-
ment advisor to maintain per share net asset value of $1.00 (RP
10) 2,267
INCOME TAX—Cont.
Net operating losses (RP 19) 14,747
Partnerships, conversion of partnership items with respect to tax
avoidance transactions (REG–138326–07) 9,638
Penalties:
Categories of tax returns and claims for refund, tax return
preparer penalty under section 6694 (RP 11) 3,313
Tax return preparer (TD 9436) 3,268;correction(Ann15)11,
703
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action (TD
9443) 8,564
Pre-Filing Agreement (PFA) program, extended (RP 14) 3,324
Private foundations, organizations now classified as (Ann 9) 9,
643; (Ann 22) 13,731
Procedures for administrative review of a determination that an
authorized recipient has failedto safeguard tax returns or re-
turn information (TD 9445) 9,635
Proposed Regulations:
26 CFR 1.301–2, added; 1.302–2(c), removed; 1.302–5,
added; 1.304–1, revised; 1.304–2, –3, –5, amended;
1.351–2, amended; 1.354–1, amended; 1.355–1, amended;
1.356–1, amended; 1.358–1, –2, revised; 1.358–6,
amended; 1.368–1, amended; 1.861–12, added; 1.1002–1,
redesignated as 1.1001–6, and amended; 1.1016–2,
amended; 1.1374–10, revised; the allocation of consider-
ation and allocation and recovery of basis in transactions
involving corporate stock or securities (REG–143686–07)
8,579
26 CFR 1.355–2, amended; guidance regarding the treat-
ment of stock of a controlledcorporation under section
355(a)(3)(B) (REG–150670–07) 4,378
26 CFR 1.367(a), revised; 1.482–0, –1, –2, –4, –8, amended;
1.482–7, revised; 1.482–9, added; section 482, methods to
determine taxable income in connection with a cost sharing
arrangement (CSA) (REG–144615–02) 7,561; correction
(Ann 19) 12,715
26 CFR 1.367(a)–9, added; 1.367(b)–4, amended; 1.1248–1,
amended; application of section 367 to section 351 ex-
change resulting from a transaction described in section
304(a)(1); treatment of gain recognized under section
301(c)(3) for purposes of section 1248 (REG–147636–08)
9,641
26 CFR 1.707–0, –3, –5, thru –9, amended; 1.752–3,
amended; section 707 regarding disguised sales, generally,
REG–149519–03 withdrawn (Ann 4) 8,597
26 CFR 1.881–3, amended; conduit financing arrangements
(REG–113462–08) 4,379
26 CFR 1.954–3, amended; guidance regarding foreign base
company sales income(REG–150066–08) 5,423; correc-
tions (Ann 31) 15,798
26 CFR 301.6231(c)–3, amended; 301.6231(c)–9, added; tax
avoidance transactions (REG–138326–07) 9,638
26 CFR 301.6707–1, added; section 6707 and the failure
to furnish information regarding reportable transactions
(REG–160872–04) 4,358
April 27, 2009viii2009–17 I.R.B.

INCOME TAX—Cont.
Publications:
1167, General Rules and Specifications for Substitute Forms
and Schedules (RP 17) 7,517
1220, additional changes affecting tax year 2008 filing of in-
formation returns (Ann 7) 10,663
Qualified board or exchange under section 1256(g)(7)(C), Dubai
Mercantile Exchange (RR 4) 5,408
Qualified mortgage bonds (QMBs) and mortgage credit certifi-
cates (MCCs), average area housing purchase prices for 2009
(RP 18) 11,686
Regulations:
26 CFR 1.338–1, amended; 1.367(a)–3, amended;
1.367(a)–3T, –8T, removed; 1.367(a)–8, revised; 602.101,
amended; transfers by U.S. persons of stock or securities
to foreign corporations (TD 9446) 9,607; correction (Ann
23) 13,731
26 CFR 1.355–0 thru –2, amended; 1.355–0T, –2T, added;
guidance regarding the treatment of stock of a controlled
corporation under section 355(a)(3)(B) (TD 9435) 4,333
26 CFR 1.367(a)–1, added; 1.367(a)–1T, amended; 1.482–0,
–0T, –1, –1T, –2T. –4T, –5, amended; 1.482–7, redes-
ignated as 1.482–7A; 1.482–7T, added, 1.482–8, –8T,
–9T, amended; 1.861–17, amended; 1.6662–6, amended;
301.7701–1, amended; 602.101, amended; section 482,
methods to determine taxable income in connection with
a cost sharing arrangement (CSA) (TD 9441) 7,460;
correction (Ann 18) 12,714
26 CFR 1.367(a)–(3), amended; 1.367(a)–9T, added
1.367(b)–4, amended; 1.367(b)–4T, added; 1.1248–1,
amended; 1.248–1T, added; application of section 367
to section 351 exchange resulting from a transaction de-
scribed in section 304(a)(1); treatment of gain recognized
under section 301(c)(3) for purposes of section 1248 (TD
9444) 9,603
26 CFR 1.368–1, amended; creditor continuity of interest (TD
9434) 4,339
26 CFR 1.954–3, amended; 1.954–3T, added; guidance re-
garding foreign base company sales income (TD 9438) 5,
387; corrections (Ann 30) 15,794
26 CFR 1.1502–13, –28, amended; consolidated returns, in-
tercompany obligations (TD 9442) 6,434; correction (Ann
13) 11,702; correction (Ann 20) 12,716
26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2,
amended; 1.6694–0 thru –4, revised; 1.6695–1, –2, re-
vised; 1.6696–1, revised; 301.7701–15, amended; 602.101,
amended; tax return preparer penalties under sections 6694
and 6695 (TD 9436) 3,268; correction (Ann 15) 11,703
26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T, re-
moved; disclosure of return information to the Bureau of
Economic Analysis (TD 9439) 5,416; correction (Ann 12)
11,702
26 CFR 301.6103(j)(1)–1T, added; disclosure of return infor-
mation to the Bureau of Economic Analysis, correction to
TD 9439 (Ann 12) 11,686
INCOME TAX—Cont.
26 CFR 301.6103(p)(4)–1, added; 301.6103(p)(4)–1T, re-
moved; 301.6103(p)(7)–1, added; 301.6103(p)(7)–1T,
removed; procedures for administrative review of a deter-
mination that an authorized recipient has failed to safeguard
tax returns or return information (TD 9445) 9,635
26 CFR 301.7216–3, amended; 301.7216–3T, removed;
amendments to the section 7216 regulations - disclosure or
use of information by preparers of returns (TD 9437) 4,341
26 CFR 301.7508A–1, amended; postponement of certain
tax-related deadlines by reason of a federally declared dis-
aster or terroristic or military action (TD 9443) 8,564
Revocations, exempt organizations (Ann 3) 6,459;(Ann10)9,
644;(Ann21)13,730; (Ann 27) 14,756; (Ann 32) 15,799
Section 382 limitation, ownership changes, pre-change losses
(Notice 14) 7,516
Section 482, methods to determine taxable income in connec-
tion with a cost sharing arrangement (CSA) (TD 9441) 7,460;
correction (Ann 18) 12,714; (REG-144615–02) 7,561;cor-
rection (Ann 19) 12,715
Section 6707 and the failure to furnish information regarding re-
portable transactions (REG–160872–04) 4,358
Standard Industry Fare Level (SIFL) formula (RR 6) 12,694
Stocks:
Section 305 REIT distributions of stock (RP 15) 4,356
Treatment of stock of a controlled corporation under section
355(a)(3)(B) (TD 9435) 4,333; (REG–150670–07) 4,378
Substitute forms and schedules, general rules and specifications
(RP 17) 7,517
Tax conventions:
Publication 515, Withholding of Tax on Nonresident Aliens
and Foreign Entities (For Withholding in 2008), and Publi-
cation 901, U.S. Tax Treaties (Rev. April 2008), changes in
tables 1 and 2 for Bulgaria, Canada, and Iceland (Ann 5) 8,
575
Taxpayer identification number (TIN), matching program and
new section 6050W (Ann 6) 9,643
Technical Advice Memoranda (TAMs) (RP 2) 1,87
Transferred basis, reorganization acquisition (Notice 4) 2,251
Update to Publication 1220, additional changes affecting tax year
2008 filing of information returns (Ann 7) 10,663
Uniform capitalization regulations under section 263A, property
acquired for resale, request for public comments (Notice 25)
15,758
SELF-EMPLOYMENT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Technical Advice Memoranda (TAMs) (RP 2) 1,87
2009–17 I.R.B.ixApril 27, 2009

April 27, 20092009–17 I.R.B.

2009–17 I.R.B.April 27, 2009

April 27, 20092009–17 I.R.B.

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