us-irs-revenue-rulings-irb-2023-10-pdf•Internal Revenue Bulletin 2023-10 (PDF rendition): IRS Revenue Rulings
Internal Revenue Bulletin 2023-10 (PDF rendition): IRS Revenue Rulings
us-irs-revenue-rulings-irb-2023-10-pdfInternal Revenue Bulletin 2023-10 (PDF rendition): IRS Revenue RulingsGuidance
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Bulletin No. 2023–10 March 6, 2023 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. EXCISE TAX AOD 2023-1, page 502. Acquiescence to the holding that § 4611(b)(1)(A) imposes a tax on exports in violation of the Export Clause of the United States Constitution, U.S. Const. art. I, § 9, cl. 5. Although the Service disagrees with the decision, in the interest of sound tax administration, it will follow the decision in all circuits. INCOME TAX Notice 2023-17, page 505. This notice establishes the program to allocate environmen- tal justice solar and wind capacity limitation, as required under § 48(e) of the Internal Revenue Code. This notice also provides initial program guidance for potential applicants for allocations of calendar year 2023 capacity limitation. This initial guidance provides the general eligibility require- ments, a description of the four statutory facility catego- ries for which an eligible facility may request an allocation, amounts of capacity limitation reserved for each facility category, a general description of the program design and goals, the application review process, and the proposed timeline for opening two 60-day application periods in 2023 based on project categories. Notice 2023-18, page 508. The notice establishes the section 48C(e) program to allo- cate $10 billion of section 48C credits ($4 billion of which may only be allocated to projects located in certain energy communities census tracts) and provides initial program guidance. The Department of Treasury (Treasury Depart- ment) and the Internal Revenue Service (IRS) anticipate allo- cating $4 billion of section 48C credits in the first allocation round, with approximately $1.6 billion of these credits to be allocated to projects located in certain energy communities census tracts. The Treasury Department and the IRS will al- locate the remaining credits in future allocation rounds. This notice also provides the general rules for determining the section 48C credit, definitions of qualifying advanced ener- gy projects, and the procedures for allocating the credits. Notice 2023-20, page 523. This notice provides interim guidance to insurance compa- nies and certain other taxpayers related to their determina- tion of adjusted financial statement income (AFSI) for pur- poses of the corporate alternative minimum tax, as added to the Code by the Inflation Reduction Act of 2022. This no- tice provides interim guidance for the determination of AFSI as it relates to (1) variable contracts and similar contracts, (2) funds withheld reinsurance and modified coinsurance agreements, and (3) the basis of certain assets held by certain previously tax-exempt entities that received a “fresh start” basis adjustment. Rev. Rul. 2023-5, page 503. Federal rates; adjusted federal rates; adjusted federal long- term rate, and the long-term tax exempt rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for March 2023. Finding Lists begin on page ii. The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en- force the law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing of- ficial rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly. It is the policy of the Service to publish in the Bulletin all sub- stantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of inter- nal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rul- ings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbar- ment and suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. March 6, 2023 Bulletin No. 2023–10 Actions Relating to Court Decisions It is the policy of the Internal Reve nue Service to announce at an early date whether it will follow the holdings in cer tain cases. An Action on Decision is the document making such an announcement. An Action on Decision will be issued at the discretion of the Service only on un appealed issues decided adverse to the government. Generally, an Action on De cision is issued where its guidance would be helpful to Service personnel working with the same or similar issues. Unlike a Treasury Regulation or a Revenue Ruling, an Action on Decision is not an affirma tive statement of Service position. It is not intended to serve as public guidance and may not be cited as precedent. Actions on Decisions shall be relied upon within the Service only as conclu sions applying the law to the facts in the particular case at the time the Action on Decision was issued. Caution should be exercised in extending the recommenda tion of the Action on Decision to similar cases where the facts are different. More over, the recommendation in the Action on Decision may be superseded by new legislation, regulations, rulings, cases, or Actions on Decisions. Prior to 1991, the Service published acquiescence or nonacquiescence only in certain regular Tax Court opinions. The Service has expanded its acquiescence program to include other civil tax cases where guidance is determined to be help ful. Accordingly, the Service now may acquiesce or nonacquiesce in the holdings of memorandum Tax Court opinions, as well as those of the United States District Courts, Claims Court, and Circuit Courts of Appeal. Regardless of the court decid ing the case, the recommendation of any Action on Decision will be published in the Internal Revenue Bulletin. The recommendation in every Action on Decision will be summarized as ac quiescence, acquiescence in result only, or nonacquiescence. Both “acquiescence” and “acquiescence in result only” mean that the Service accepts the holding of the court in a case and that the Service will follow it in disposing of cases with the same controlling facts. However, “acqui escence” indicates neither approval nor disapproval of the reasons assigned by the court for its conclusions; whereas, “acqui escence in result only” indicates disagree ment or concern with some or all of those reasons. “Nonacquiescence” signifies that, although no further review was sought, the Service does not agree with the hold ing of the court and, generally, will not follow the decision in disposing of cases involving other taxpayers. In reference to an opinion of a circuit court of appeals, a “nonacquiescence” indicates that the Ser vice will not follow the holding on a na tionwide basis. However, the Service will recognize the precedential impact of the opinion on cases arising within the venue of the deciding circuit. The Commissioner DOES AC QUIESCE in the following decision: Trafigura Trading LLC v. United States, 29 F.4th 286 (5th Cir. 2022) 1 1 Acquiescence to the holding that § 4611(b)(1)(A) imposes a tax on exports in violation of the Export Clause of the United States Constitution, U.S. Const. art. I, § 9, cl. 5. Although the Service disagrees with the decision, in the interest of sound tax administration, it will follow the decision in all circuits. March 6, 2023 502 Bulletin No. 2023–10 Part I Section 1274.— Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872.) Rev. Rul. 2023-5 This revenue ruling provides various prescribed rates for federal income tax purposes for March 2023 (the current month). Table 1 contains the short term, midterm, and longterm applica ble federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the shortterm, midterm, and longterm adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted feder al longterm rate and the longterm taxexempt rate described in section 382(f). Table 4 contains the appropri ate percentages for determining the lowincome housing credit described in section 42(b)(1) for buildings placed in service during the current month. How ever, under section 42(b)(2), the appli cable percentage for nonfederally sub sidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. REV. RUL. 2023-5 TABLE 1 Applicable Federal Rates (AFR) for March 2023 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term AFR4.50%4.45%4.43%4.41% 110% AFR4.96%4.90%4.87%4.85% 120% AFR5.41%5.34%5.30%5.28% 130% AFR5.87%5.79%5.75%5.72% Mid-term AFR3.70%3.67%3.65%3.64% 110% AFR4.08%4.04%4.02%4.01% 120% AFR4.45%4.40%4.38%4.36% 130% AFR4.83%4.77%4.74%4.72% 150% AFR5.59%5.51%5.47%5.45% 175% AFR6.52%6.42%6.37%6.34% Long-term AFR3.74%3.71%3.69%3.68% 110% AFR4.12%4.08%4.06%4.05% 120% AFR4.50%4.45%4.43%4.41% 130% AFR4.88%4.82%4.79%4.77% REV. RUL. 2023-5 TABLE 2 Adjusted AFR for March 2023 Period for Compounding AnnualSemiannualQuarterlyMonthly Shortterm adjusted AFR3.41%3.38%3.37%3.36% Midterm adjusted AFR2.81%2.79%2.78%2.77% Longterm adjusted AFR2.84%2.82%2.81%2.80% Bulletin No. 2023–10 503 March 6, 2023 March 6, 2023 504 Bulletin No. 2023–10 REV. RUL. 2023-5 TABLE 3 Rates Under Section 382 for March 2023 Adjusted federal longterm rate for the current month2.84% Longterm taxexempt rate for ownership changes during the current month (the highest of the adjusted federal longterm rates for the current month and the prior two months.) 2.92% REV. RUL. 2023-5 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for March 2023 Note: Under section 42(b)(2), the applicable percentage for nonfederally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value lowincome housing credit7.86% Appropriate percentage for the 30% present value lowincome housing credit 3.37% REV. RUL. 2023-5 TABLE 5 Rate Under Section 7520 for March 2023 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 4.40% Section 42.—Low-Income Housing Credit The applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 280G.—Golden Parachute Payments The applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change The adjusted applicable federal longterm rate is set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 467.—Certain Payments for the Use of Property or Services The applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs The applicable federal shortterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 482.—Allocation of Income and Deductions Among Taxpayers The applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 483.—Interest on Certain Deferred Payments The applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations The adjusted applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 7520.—Valuation Tables The applicable federal midterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Section 7872.—Treatment of Loans With Below- Market Interest Rates The applicable federal shortterm, midterm, and longterm rates are set forth for the month of March 2023. See Rev. Rul. 20235, page 503. Bulletin No. 2023–10 505 March 6, 2023 Part III Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e) Notice 2023-17 SECTION 1. PURPOSE This notice establishes the program un der § 48(e) of the Internal Revenue Code (Code) 1 to allocate amounts of environ mental justice solar and wind capacity limitation (Capacity Limitation) to quali fied solar and wind facilities eligible for the energy investment credit determined under § 48 (LowIncome Communities Bonus Credit Program). In addition, this notice provides initial guidance regarding the overall program design, the applica tion process, and additional criteria that will be considered in determining which applicants will receive an allocation of Capacity Limitation in calendar year 2023 under the LowIncome Communities Bo nus Credit Program. The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) will issue further guidance (forthcoming guid ance) outlining the specific application procedures, additional criteria, applicable definitions, and other information neces sary to submit an application to request an allocation of Capacity Limitation for cal endar year 2023 under the LowIncome Communities Bonus Credit Program. After the 2023 allocation process be gins, the Treasury Department and IRS will monitor and assess whether to im plement any modifications to the LowIn come Communities Bonus Credit Pro gram for calendar year 2024 allocations of Capacity Limitation. SECTION 2. BACKGROUND .01 Overview. The amount of the en ergy investment credit determined under § 48(a) (§ 48 credit) for a taxable year is generally calculated by multiplying the basis of each energy property placed in service during that taxable year by the energy percentage (as defined in § 48(a)). Section 13103 of Public Law 117169, 136 Stat. 1818 (August 16, 2022), com monly known as the Inflation Reduction Act of 2022 (IRA), amended § 48, in part, to add new § 48(e) to potentially increase the amount of the § 48 credit with respect to eligible property that is part of a quali fied solar and wind facility. .02 Eligible Property. The term eligible property is defined in § 48(e)(3) to mean energy property (including energy storage technology described in § 48(a)(3)(A)(ix) installed in connection with such energy property) that (i) is part of a wind facility described in § 45(d)(1) for which an elec tion to treat the facility as energy property was made under § 48(a)(5) (wind facility), or (ii) is solar energy property described in § 48(a)(3)(A)(i) (solar energy property) or qualified small wind energy property described in § 48(a)(3)(A)(vi) (small wind energy property). .03 Qualified Solar and Wind Facility. The term qualified solar and wind facility is defined in § 48(e)(2) to mean any facili ty (i) that generates electricity solely from a wind facility, solar energy property, or small wind energy property; (ii) that has a maximum net output of less than 5 mega watts (as measured in alternating current); and (iii) that is described in at least one of the following four categories described in § 48(e)(2)(A)(iii): (1) Category 1: The facility is located in a lowincome community described in section 3.01 of this notice. (2) Category 2: The facility is located on Indian land described in section 3.02 of this notice. (3) Category 3: The facility is part of a qualified lowincome residential building project described in section 3.03 of this notice. (4) Category 4: The facility is part of a qualified lowincome economic benefit project described in section 3.04 of this notice. .04 Increase in Section 48 Credit. Sec tion 48(e) provides for an increase in the energy percentage used to calculate the amount of the § 48 credit (§ 48(e) In crease) in the case of qualified solar and wind facilities that receive an allocation of Capacity Limitation. Depending on the category of the facility, the § 48(e) Increase is either 10 percentage points or 20 percentage points. Section 48(e)(1) (A)(i) provides for a § 48(e) Increase of 10 percentage points for eligible property that is part of a Category 1 facility or a Category 2 facility that is not also a Cate gory 3 facility or Category 4 facility. See the rules in section 3.01 and section 3.02 in this notice concerning facilities that are described in multiple categories. Sec tion 48(e)(1)(A)(ii) provides for a § 48(e) Increase of 20 percentage points for eli gible property that is part of a Category 3 facility or a Category 4 facility. Section 3 of this notice provides additional infor mation regarding the four categories for qualified solar and wind facilities. Sec tion 48(e)(1)(B) provides that the § 48(e) Increase for any taxable year for all prop erty that is part of a qualified solar and wind facility cannot exceed the amount that bears the same ratio to the amount of the § 48 Increase as the Capacity Lim itation allocated to such facility bears to the total megawatt nameplate capacity of such facility, as measured in direct cur rent. .05 Placed in Service Deadline. To be eligible for the § 48(e) Increase, § 48(e) (4)(E) requires that the property must be placed in service within four years after the date the applicant was notified of the allocation of Capacity Limitation to the facility of which such property is a part. Any Capacity Limitation that is allocated but expires because property is not placed in service within four years is taken into account as an excess, or increase in ex cess, under the carryover rules in § 48(e) (4)(D). See section 2.07(2) of this notice. .06 Placed in Service. (1) In general. Eligible property is con sidered placed in service in the earlier of the following taxable years: 1 Unless otherwise specified, all “section” or “§” references are to sections of the Code. March 6, 2023 506 Bulletin No. 2023–10 (A) The taxable year in which, under the taxpayer’s depreciation practice, the period for depreciation with respect to such eligible property begins; or (B) The taxable year in which the eli gible property is placed in a condition or state of readiness and availability for a specifically assigned function, whether in a trade or business or in the production of income. (2) Eligible property subject to § 1.48- 4 election to treat lessee as purchaser. Eligible property with respect to which an election is made under § 1.484 of the Income Tax Regulations (26 C.F.R. part 1) to treat the lessee as having purchased such energy property is considered placed in service by the lessor in the taxable year in which possession is transferred to such lessee. .07 Establishment of Allocation Pro- gram. (1) In general. Section 48(e)(4) directs the Secretary of the Treasury or her del egate (Secretary) to establish a program, within 180 days of enactment of the IRA, to allocate amounts of Capacity Limita tion to qualified solar and wind facilities. (2) Annual Capacity Limitation. Under § 48(e)(4)(C), the total annual Capaci ty Limitation is 1.8 gigawatts of direct current capacity for each of the calendar years 2023 and 2024. Under § 48(e)(4) (D), if the annual Capacity Limitation for any calendar year exceeds the aggregate amount allocated for such year, the excess is carried forward to the next year, but not beyond calendar year 2024. Any excess from calendar year 2024 may be carried forward and applied to the Capacity Lim itation for calendar year 2025 under new § 48E(h)(4)(D)(ii). 2 SECTION 3. FACILITY CATEGORIES .01 Category 1: Located in a Low-In- come Community. Under § 48(e)(2)(A) (iii)(I), the term low-income communi- ty is generally defined under § 45D(e) (1), with certain modifications described elsewhere in § 45D(e), as any population census tract if the poverty rate for such tract is at least 20 percent, or, in the case of a tract not located within a metropol itan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or in the case of a tract located within a met ropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area medi an family income. A qualified solar and wind facility that is described in this sec tion 3.01 and also in section 3.03 or 3.04 of this notice is considered a Category 3 facility or Category 4 facility (as appli cable). .02 Category 2: Located on Indi- an Land. Section 48(e)(2)(A)(iii)(I) provides that Indian land is defined in § 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2)). A qualified solar and wind facility that is described in this section 3.02 and also in section 3.03 or 3.04 of this notice is considered a Category 3 facility or Category 4 facility (as applicable). .03 Category 3: Qualified Low-Income Residential Building Project. (1) Section 48(e)(2)(B) provides that a facility will be treated as part of a quali- fied low-income residential building proj- ect if such facility is installed on a resi dential rental building which participates in an affordable housing program, and the financial benefits of the electricity pro duced by such facility are allocated equi tably among the occupants of the dwelling units of such building. (2) An affordable housing program in cludes any of the following: (A) A covered housing program (as defined in § 41411(a) of the Violence Against Women Act of 1994 (34 U.S.C. 12491(a)(3)). (B) A housing assistance program ad ministered by the Department of Agricul ture under title V of the Housing Act of 1949. (C) A housing program administered by a tribally designated housing entity (as defined in § 4(22) of the Native American Housing Assistance and SelfDetermina tion Act of 1996 (25 U.S.C. 4103(22)). (D) Such other affordable housing pro grams as the Secretary may provide. (3) For a qualified lowincome resi dential building project, § 48(e)(2)(D) provides that electricity acquired at a belowmarket rate will be considered a financial benefit. The forthcoming guid ance will further clarify the parameters of financial benefit. .04 Category 4: Qualified Low-Income Economic Benefit Project. (1) Section 48(e)(2)(C) provides that a facility will be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of less than 200 percent of the poverty line (as defined in § 36B(d)(3)(A)) appli cable to a family of the size involved, or less than 80 percent of area median gross income (as determined under § 142(d)(2) (B)). (2) For a qualified lowincome eco nomic benefit project, § 48(e)(2)(D) provides that electricity acquired at a belowmarket rate will be considered a financial benefit. The forthcoming guid ance will further clarify the parameters of financial benefit. SECTION 4. DESIGN AND IMPLEMENTATION OF LOW-INCOME COMMUNITIES BONUS CREDIT PROGRAM .01 In general. Consistent with the stat utory references in § 48(e) to lowincome communities and environmental justice as well as the statute’s four categories, the allocation program’s broad goals are to in crease adoption of and access to renewable energy facilities in lowincome and other communities with environmental justice concerns; encourage new market partic ipants; and provide social and economic benefits to individuals and communities that have been historically overburdened with pollution, adverse human health or environmental effects, and marginalized from economic opportunities. .02 Facility Category Allocations. For calendar year 2023, the total annu 2 Section 13702(a) of the IRA also enacted § 48E(h), which generally provides for a program similar to the LowIncome Communities Bonus Credit Program for calendar years after 2024. Section 48E(i) directs the Secretary to issue guidance regarding the implementation of § 48E not later than January 1, 2025. Bulletin No. 2023–10 507 March 6, 2023 al Capacity Limitation of 1.8 gigawatts of direct current capacity will be divid ed among the four categories described in section 3. The allocation of Capacity Limitation reserved for each facility cate gory for calendar year 2023 is as follows: Category 1: Located in a LowIncome Community700 megawatts Category 2: Located on Indian Land200 megawatts Category 3: Qualified LowIncome Residential Building Project200 megawatts Category 4: Qualified LowIncome Economic Benefit Project700 megawatts See section 4.04 of this notice (relating to allocations of excess Capacity Limitation reserved for categories). As described in section 2.07(2) of this notice, if the annu al Capacity Limitation for calendar year 2023 exceeds the aggregate amount allo cated for calendar year 2023, the excess will be carried forward to calendar year 2024 pursuant to § 48(e)(4)(D). .03 Additional Criteria. To further the overall program goals, the program will incorporate additional criteria in determining how to allocate the Capac ity Limitation reserved for each facili ty category among eligible applicants. These criteria may include a focus on facilities that are (i) owned or developed by communitybased organizations and missiondriven entities, (ii) have an im pact on encouraging new market partici pants, (iii) provide substantial benefits to lowincome communities and individuals marginalized from economic opportu nities, and (iv) have a higher degree of commercial readiness. The forthcoming guidance will fully describe these addi tional criteria. .04 Allocation Process. If selected ap plications for facilities with a collective total megawatt nameplate capacity exceed the Capacity Limitation reserved for each category, then a lottery or other processes may be used to allocate the Capacity Lim itation to applicants. In the event a facility category has excess Capacity Limitation, such excess may be reallocated between the categories to maximize 2023 calendar year allocations. .05 Placed in Service Prior to Alloca- tion Award. Facilities placed in service prior to being awarded an allocation of Capacity Limitation are not eligible to re ceive an allocation. .06 Eligible Applicant. Only the owner of a facility may apply for an allocation of Capacity Limitation. For each facility owned by an applicant, the applicant may apply for an allocation of Capacity Lim itation in only one category for calendar year 2023. Applicants that do not receive an allocation of Capacity Limitation will be permitted to apply for future alloca tions after calendar year 2023. There will be no waitlist created from calendar year 2023 applications that did not receive an allocation of Capacity Limitation. .07 Phased Approach. Applications will be accepted in a phased approach for calendar year 2023, during 60day application windows. First, the Treasury Department and IRS anticipate that ap plications will be accepted for Category 3 facilities, as defined in section 3.03 of this notice, and Category 4 facilities, as defined in section 3.04 of this notice, in the third calendar quarter of 2023. Next, the Treasury Department and IRS antici pate that applications will be accepted for Category 1 facilities, as defined in section 3.01 of this notice, and Category 2 facili ties, as defined in section 3.02 of this no tice, thereafter. Forthcoming guidance on the application process and facility eligi bility for all categories will be provided. .08 Program Administration. The De partment of Energy (DOE) will provide administration services for the LowIn come Communities Bonus Credit Pro gram. DOE will review the applications for statutory eligibility and additional criteria as will be set out in forthcoming guidance and will provide recommenda tions to the IRS regarding the selection of applications for an allocation of Capaci ty Limitation. DOE will also perform the lottery or other process for allocation, de scribed in section 4.04 of this notice, as needed. Based on DOE’s recommendation and the process for allocation, described in section 4.04 of this notice, the IRS will accept or reject the applicant’s request for an allocation of Capacity Limitation and notify the applicant of its decision. An ac ceptance notification will state the amount of Capacity Limitation allocated to the applicant. The amount of Capacity Lim itation allocated will not exceed the name plate capacity of the facility (as measured in direct current) and will not be prorated. As required by § 48(e)(4)(E), applicants have four years from the date of the ac ceptance notification to place the property in service. .09 Effect of an Allocation. The alloca tion of an amount of Capacity Limitation by the IRS under the LowIncome Com munities Bonus Credit Program is not a determination that the facility will qualify for the § 48(e) Increase or the § 48 cred it generally. This notice does not alter the rules regarding the determination and el igibility to claim a § 48 credit, including any § 48(e) Increase in energy percentage attributable to the LowIncome Commu nities Bonus Credit Program. SECTION 5. DRAFTING INFORMATION The principal author of this notice is the Office of Associate Chief Coun sel (Passthroughs & Special Industries). However, other personnel from the Trea sury Department and the IRS participated in its development. For further informa tion regarding this notice, call the energy security guidance contact number at (202) 3175254 (not a tollfree number). March 6, 2023 508 Bulletin No. 2023–10 Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation Program Under Section 48C(e) Notice 2023-18 SECTION 1. PURPOSE .01 This notice establishes the program under § 48C(e)(1) of the Internal Reve nue Code (Code) 1 to allocate $10 billion of credits ($4 billion of which may be allocated only to projects located in cer tain energy communities) for qualified in vestments in eligible qualifying advanced energy projects (§ 48C(e) program). The goal of the § 48C(e) program is to ex pand U.S. manufacturing capacity and quality jobs for clean energy technologies (including production and recycling), to reduce greenhouse gas emissions in the U.S. industrial sector, and to secure do mestic supply chains for critical materials (including specified critical minerals) that serve as inputs for clean energy technolo gy production. .02 This notice and its appendices pro vide the initial program guidance for the § 48C(e) program. The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue a supplemental notice and appendi ces (additional § 48C(e) program guid ance) by May 31, 2023. .03 The Treasury Department and the IRS anticipate providing at least two allocation rounds under the § 48C(e) program. For the first allocation round (Round 1) of the § 48C(e) program, which will begin on May 31, 2023, the Treasury Department and the IRS antic ipate allocating $4 billion of qualifying advanced energy project credits (§ 48C credits) with approximately $1.6 billion in § 48C credits to be allocated to proj ects located in certain energy communi ties. Although the Treasury Department and the IRS intend to allocate a total of $10 billion of § 48C credits with not less than $4 billion of § 48C credits to proj ects located in certain energy commu nities over the duration of the § 48C(e) program, depending upon applications received, the Treasury Department and the IRS may not allocate exactly 40 per cent of the total § 48C credits allocated in Round 1 to projects located in certain energy communities. To be considered for an allocation of § 48C credits in the § 48C(e) program for Round 1, taxpayers must submit concept papers to the De partment of Energy (DOE) by July 31, 2023. Following submission of a concept paper, DOE will encourage or discourage taxpayers from submitting a joint appli cation for DOE recommendation and for IRS § 48C(e) certification (§ 48C(e) ap plication). SECTION 2. BACKGROUND .01 For purposes of the § 38 gener al business credit, § 46 provides that the amount of the investment credit for any taxable year is the sum of the credits list ed in § 46. That list includes the § 48C credit, which was originally enacted by § 1302(b) of the American Recovery and Reinvestment Act of 2009 (2009 Act), Public Law 1115, Division B, Title I, Subtitle D, 123 Stat. 115, 345 (February 17, 2009), to provide an allocated credit for qualified investments in qualifying ad vanced energy projects. .02 In addition to certain amendments made by the Tax Increase Prevention Act of 2014, Public Law 113295, 128 Stat. 4010 (December 19, 2014), § 48C was most recently amended by § 13501 of Pub lic Law 117169, 136 Stat. 1818 (August 16, 2022), commonly known as the Infla tion Reduction Act of 2022 (IRA). Sec tion 13501(a) of the IRA added § 48C(e) to the Code to extend the § 48C credit and to provide an additional credit allocation of $10 billion. Section 13501(b) of the IRA modified the definition of a “quali fying advanced energy project” contained in § 48C(c)(1)(A). Section 13501(c) and (d) of the IRA made conforming amend ments to § 48C(c)(2)(A) and (f). The amendments made by § 13501 of the IRA became effective on January 1, 2023. See § 13501(e) of the IRA. .03 Section 48C(a) provides that the § 48C credit for any taxable year is an amount equal to a certain percentage of the qualified investment (as defined in § 48C(b)) for such taxable year with re spect to any qualifying advanced energy project (as defined in § 48C(c)(1) and section 3.01 of this notice) of the taxpay er. The § 48C credit generally is allowed in the taxable year in which the eligible property (as defined in § 48C(c)(2) and section 3.03 of this notice) is placed in service (as defined in section 3.04 of this notice). For purposes of § 48C credit al locations under the § 48C(e) program, § 48C(e)(4)(A) provides a base credit rate of 6 percent of the qualified investment. In the case of any project which satisfies the requirements of § 48C(e)(5)(A) and (6) (prevailing wage and apprenticeship requirements), § 48C(e)(4)(B) provides an alternative rate of 30 percent of the qualified investment. See section 4 of this notice. .04 Section 48C(b)(1) provides that the qualified investment for any taxable year is the basis of eligible property that is placed in service by the taxpayer during such taxable year and is part of a qualify ing advanced energy project. .05 Section 48C(b)(3) provides that the amount which is treated as the quali fied investment for all taxable years with respect to any qualified advanced energy project must not exceed the amount des ignated by the Secretary as eligible for the § 48C credit. .06 Section 48C(e)(1) directs the Secre tary of the Treasury or her delegate (Sec retary) to establish the § 48C(e) program to consider and award certifications for qualified investments eligible for § 48C credits to qualifying advanced energy project sponsors. .07 Section 48C(e)(2) provides that the total amount of § 48C credits which may be allocated under the § 48C(e) program may not exceed $10 billion, of which not greater than $6 billion may be allocated to qualified investments which are not locat ed within census tracts that (1) Prior to August 16, 2022 (the date of enactment of § 48C(e)), had no project that received a certification and allocation 1 Unless otherwise specified, all “section” or “§” references are to sections of the Code. Bulletin No. 2023–10 509 March 6, 2023 of credits under the § 48C(d) allocation program established under the 2009 Act, and (2) Are described in § 45(b)(11)(B)(iii) as one of the following: (a) a census tract in which a coal mine has closed after December 31, 1999; (b) a census tract in which a coalfired electric generating unit has been retired after December 31, 2009; or (c) a census tract directly adjoining a census tract described in section 2.07(2) (a) or (b) of this notice. .08 Section 48(C)(e)(3)(A) provides that each applicant for certification must submit an application at such time and containing such information as the Secre tary may require. .09 Section 48C(e)(3)(B) provides that each applicant for certification has 2 years from the date of acceptance by the Sec retary of the § 48C(e) application during which to provide to the Secretary evidence that the requirements of the certification have been met. .10 Section 48C(e)(3)(C) provides that an applicant who receives a certification has 2 years from the date of issuance of the certification to place the project in ser vice and to notify the Secretary that such project has been so placed in service. If the project is not placed in service within the 2year period, then the certification is no longer valid. If any certification is re voked under § 48C(e)(3), the total amount of the credits that may be allocated under § 48C(e)(2) is increased by the amount of § 48C credits with respect to such revoked certification. .11 Section 48C(e)(3)(D) provides that in the case of an applicant which receives a certification, if the Secretary determines that the project has been placed in service at a location that is materially different than the location specified in the § 48C(e) application for such project, the certifica tion is no longer valid. .12 The atrisk rules provided by § 49, the credit recapture and other special rules provided in § 50, and pursuant to § 48C(b) (2), rules regarding qualified progress ex penditures (similar to the rules of § 46(c) (4) and (d) (as in effect on the day before the enactment of the Revenue Reconcili ation Act of 1990)) apply for purposes of the § 48C credit. SECTION 3. DEFINITIONS The following definitions apply solely for purposes of the § 48C(e) program: .01 Qualifying Advanced Energy Proj- ect. The term qualifying advanced energy project means a project that meets the fol lowing requirements: (1) the project: (a) reequips, expands or establishes an industrial or a manufacturing facility (as defined in sections 3.05 and 3.06 of this notice) for the production or recycling of specified advanced energy property (as defined in section 3.02 of this notice) (see Appendix A for more information regard ing these definitions); (b) reequips any industrial or manufac turing facility, with equipment designed to reduce greenhouse gas emissions by at least 20 percent through the installation of— (i) low or zerocarbon process heat systems; (ii) carbon capture, transport, utiliza tion and storage systems; (iii) energy efficiency and reduction in waste from industrial processes; or (iv) any other industrial technology designed to reduce greenhouse gas emis sions, as determined by the Secretary (see Appendix A for more information regard ing these definitions); or (c) reequips, expands or establishes an industrial facility for the processing, refin ing or recycling of critical materials (as defined in § 7002(a) of the Energy Act of 2020) (see Appendix A for more informa tion regarding these definitions); (2) the Secretary has certified pursuant to § 48C(e)(3) that part or all of the quali fied investment in the qualifying advanced energy project is eligible for a § 48C cred it; and (3) the project does not include any portion of a project for the production of any property that is used in the refining or blending of any transportation fuels (other than renewable fuels). .02 Specified Advanced Energy Prop- erty. The term specified advanced energy property means any of the following: (1) property designed for use in the production of energy from the sun, wa ter, wind, geothermal deposits (within the meaning of § 613(e)(2)), or other renew able resources; (2) fuel cells, microturbines, or energy storage systems and components; (3) electric grid modernization equip ment or components; (4) property designed to capture, re move, use, or sequester carbon oxide emissions; (5) equipment designed to refine, elec trolyze, or blend any fuel, chemical, or product which is renewable, or lowcar bon and lowemission; (6) property designed to produce ener gy conservation technologies (including residential, commercial, and industrial ap plications); (7) light, medium, or heavyduty electric or fuel cell vehicles, as well as technologies, components, or materials for such vehicles, and associated charging or refueling infrastructure; (8) hybrid vehicles with a gross vehi cle weight rating of not less than 14,000 pounds as well as technologies, compo nents, or materials for such vehicles; or (9) other advanced energy property designed to reduce greenhouse gas emis sions as may be determined by the Sec retary. See Appendix A for more information regarding these definitions. .03 Eligible Property. The term eligible property means any property that meets the following requirements: (1) the property is necessary for the pro duction or recycling of specified advanced energy property described in § 48C(c)(1) (A)(i) (and section 3.02 of this notice), reequipping an industrial or manufactur ing facility described in § 48C(c)(1)(A)(ii) (and section 3.01(1)(b) of this notice), or reequipping, expanding, or establishing an industrial facility described in § 48C(c) (1)(A)(iii) (and section 3.01(1)(c) of this notice). (2) the property is: (a) tangible personal property; or (b) other tangible property (not includ ing a building or its structural compo nents) that is used as an integral part of the qualifying advanced energy project. (3) depreciation (or amortization in lieu of depreciation) is allowable with respect to the property. .04 Placed In Service. (1) In general. Eligible property (as defined in § 48C(c) (2) and section 3.03 of this notice) is March 6, 2023 510 Bulletin No. 2023–10 placed in service in the earlier of the fol lowing taxable years: (A) The taxable year in which, under the taxpayer’s depreciation practice, the period for depreciation with respect to such eligible property begins; or (B) The taxable year in which the eli gible property is placed in a condition or state of readiness and availability for a specifically assigned function, whether in a trade or business or in the production of income. .05 Industrial Facility. The term indus- trial facility means a facility that produc es, processes, or refines materials or prod ucts from raw or manufactured inputs. .06 Manufacturing Facilities. The term manufacturing facility means a facility that makes or processes raw materials into finished products (or accomplishes any in termediate stage in that process). .07 Recycling Facility. The term recy- cling facility means a facility that: (1) reclaims, recovers, or otherwise processes waste materials (including, but not limited to, property and components of property at endofservice), the result of which is a useful product or material for use in the manufacture of a useful prod uct; or (2) performs an activity or series of ac tivities in the processes described in sec tion 3.07(1) of this notice. SECTION 4. PREVAILING WAGE AND APPRENTICESHIP REQUIREMENTS .01 Prevailing Wage Requirement (1) Pursuant to § 48C(e)(5)(A), to meet the prevailing wage requirements, a taxpayer must ensure that any laborers and mechanics employed by the taxpay er or any contractor or subcontractor in the reequipping, expansion, or estab lishment of a manufacturing facility that is part of a qualifying advanced energy project are paid wages at rates not less than the prevailing rates for construc tion, alteration, or repair of a similar character in the locality in which such project is located as most recently de termined by the Secretary of Labor. See section 3 of Notice 202261, 87 F.R. 73580 (Nov. 30, 2022), for additional information regarding the prevailing wage requirements. (2) In accordance with § 48C(e)(5)(B), a taxpayer that fails to satisfy the prevail ing wage requirements for any laborer or mechanic employed by the taxpayer or any contractor or subcontractor in the reequipping, expansion, or establishment of a manufacturing facility that is part of a qualifying advanced energy project will be deemed to have satisfied the prevailing wage requirement if the taxpayer: (a) makes a payment to any such labor er or mechanic employed by the taxpayer or any contractor or subcontractor in the reequipping, expansion, or establishment of a manufacturing facility in an amount equal to the sum of the difference between the amount of wages paid to such labor er or mechanic and the amount of wages required to be paid to such laborer or me chanic (three times the sum of back wages due in the case of intentional disregard), plus interest on such difference at the un derpayment rate established under § 6621 (substituting “6 percentage points” for “3 percentage points” in § 6621(a)(2)) and (b) makes a payment to the Secretary of $5,000 ($10,000 in the case of inten tional disregard) multiplied by the number of laborers and mechanics who were paid wages below the prevailing wage for any period during such year. .02 Apprenticeship Requirements (1) In accordance with § 48C(e)(6) and rules similar to § 45(b)(8), to meet the apprenticeship requirements, taxpayers must ensure that not less than 10 percent, 12.5 percent, or 15 percent (depending on the beginning of construction date) of the total labor hours for the construc tion, alteration or repair work must be performed by qualified apprentices. The labor hours requirement is subject to the apprenticetojourney worker ratios of the Department of Labor or applicable State apprenticeship agency. In addition, each taxpayer, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration or repair work related to reequipping, expanding, or es tablishing an industrial or manufacturing facility must employ 1 or more qualified apprentices to perform the work. See sec tion 4 of Notice 202261 for additional information about the apprenticeship re quirements. (2) A taxpayer will not be treated as failing to satisfy the apprenticeship re quirements if the taxpayer satisfies either of the following: (a) The taxpayer pays a penalty to the Secretary in the amount of $50 ($500 if the failure is due to intentional disregard) multiplied by the total labor hours for which the taxpayer failed to meet the ap prenticeship requirements, or (b) The taxpayer made a good faith effort in accordance with section 4.01 of Notice 202261. .03 Credit Rate Conditioned Upon Pre- vailing Wage and Apprenticeship Require- ments. (1) A taxpayer that satisfies the prevail ing wage and apprenticeship requirements may claim a credit that is equal to 30 per cent of the taxpayer’s qualified investment for such taxable year with respect to any qualified energy project. (2) A taxpayer that fails to satisfy the prevailing wage and apprenticeship re quirements generally may only claim a credit equal to 6 percent of the taxpayer’s qualified investment for such taxable with respect to any qualified advanced energy project. However, such a taxpayer may claim a credit equal to 30 percent of the taxpayer’s qualified investment for such taxable year with respect to any qualified advanced energy project if: (a) In the event the taxpayer failed to meet the prevailing wage requirements, it pays the correction and penalty amounts related to such failure to satisfy the pre vailing wage requirements as described in section 4.01(2) of this notice; or (b) In the event the taxpayer failed to meet the apprenticeship requirements, it pays the penalty amount related to such failure to satisfy the apprenticeship re quirements or meets the good faith effort exception described in section 4.02(2) of this notice. (3) See section 5.07 of this notice for information regarding when an applicant must declare whether it will meet the pre vailing wage and apprenticeship require ments for § 48C. SECTION 5. SECTION 48C(e) PROGRAM .01 In General. The IRS will consider a project under the § 48C(e) program only if DOE provides a recommendation and ranking for the project (DOE recommen Bulletin No. 2023–10 511 March 6, 2023 dation) to the IRS. DOE will provide a recommendation and ranking only if it de termines that the project has a reasonable expectation of commercial viability and merits a recommendation based on the cri teria provided in the additional § 48C(e) program guidance. See section 5.03(3) of this notice for additional information re garding DOE recommendations. .02 Program Timeline. Generally, the § 48C(e) program will proceed as follows: (1) A taxpayer submits a concept paper to DOE through the eXCHANGE por tal, an online application portal used by DOE available at https://infrastructureex change.energy.gov/ (or any successor interface) (eXCHANGE portal). See Ap pendix B for additional information. (2) DOE reviews the concept paper and sends the taxpayer a letter encour aging or discouraging the submission of a § 48C(e) application. After receiving a letter of encouragement or discourage ment from DOE, the taxpayer determines whether to submit a § 48C(e) application. All taxpayers who submit concept papers are eligible to submit a § 48C(e) applica tion, regardless of DOE’s response to its concept paper. (3) Taxpayers submit § 48C(e) applica tions through the eXCHANGE portal. See Appendix B for additional information. (4) DOE reviews the § 48C(e) applica tions for compliance with eligibility and other threshold requirements. (5) If the § 48C(e) application complies with all eligibility and threshold require ments, DOE conducts a technical review of the application to form a DOE recom mendation. (6) DOE provides a recommendation to the IRS regarding the acceptance or re jection of each § 48C(e) application and a ranking of the applications. (7) The IRS makes a decision regard ing the acceptance or rejection of each § 48C(e) application based on DOE’s recommendation and ranking and notifies each taxpayer that submitted a § 48C(e) application of the outcome by sending a letter allocating § 48C credits in the case of an acceptance (Allocation Letter) or letter denying the requested allocation in the case of a rejection (Denial Letter). In the case of an acceptance, the amount of § 48C credits allocated to a project will also be based on the taxpayer’s qualified investment in the qualifying advanced energy project and whether the taxpayer intends to apply for and receive an allo cation of § 48C credits calculated at the 30 percent credit rate (see section 5.07 of this notice). A taxpayer that receives a Denial Letter may be eligible to request a debriefing in accordance with the criteria set forth in section 5.03(9) of this notice. (8) Within 2 years of receiving an Allo cation Letter, a taxpayer must notify DOE that the certification requirements have been met by submitting this information through the eXCHANGE portal. See Ap pendix B for additional information. (9) DOE notifies the taxpayer and the IRS that it has received the taxpayer’s notification that the certification require ments have been met. (10) The IRS certifies the project by sending a letter (Certification Letter). (11) Within 2 years of receiving the Certification Letter, the taxpayer notifies DOE that the project has been placed in service by submitting such information through the eXCHANGE portal. See Ap pendix B for additional information. A taxpayer that does not notify DOE that it has placed the project in service within the required 2year period will forfeit § 48C credits allocated to the taxpayer for such project. (12) DOE notifies the taxpayer and the IRS that it has received the taxpayer’s no tification that the project has been placed in service or notification that the taxpayer will not place the project in service within the required 2year period. (13) If the taxpayer has placed the proj ect in service within the required 2year period and has notified DOE, the taxpay er claims the § 48C credit on its income tax return for the taxable year in which the project was placed in service. If the taxpayer has not placed the project in ser vice within the required 2year period or has not notified DOE that the project has been placed in service within the required 2year period, then the § 48C credit allo cated to the taxpayer’s project is forfeited. .03 Program Specifications. (1) For each project that a taxpayer sponsors, the taxpayer must submit the following to request a credit allocation: (a) A concept paper for DOE consider ation; (b) A § 48C(e) application. (2) A taxpayer must submit a concept paper as specified in section 6 of this no tice through the eXCHANGE portal. See Appendix B for additional information. This portal will allow applicants to se curely input their data and information for review by DOE and the IRS. A taxpayer that receives a letter of dis couragement in response to a submitted concept paper may still submit a § 48C(e) application in accordance with the addi tional § 48C(e) program guidance. Re ceiving such a letter does not disqualify a taxpayer from submitting a § 48C(e) ap plication but represents DOE’s feedback that the project is unlikely to receive a recommendation based on the information provided in the concept paper. (3) DOE’s recommendation provid ed to the IRS will include a ranking of projects in descending order (that is, first, second, third, etc.). See section 5.06 of this notice for additional information regarding DOE recommendations with respect to projects located in § 48C(e) Energy Communities Census Tracts (as defined in section 5.06 of this notice). The amount of credit allocated to a proj ect reduces the amount of credit available to the remaining pool of recommended projects. The IRS will make allocations to successive projects according to DOE recommendations and ranking until the amount available for allocation is ex hausted. The amount of § 48C credits allocated to a project will be based on the taxpayer’s qualified investment in the qualifying advanced energy project and whether the taxpayer intends to apply for and receive an allocation of § 48C cred its calculated at the 30 percent credit rate (see section 5.07 of this notice). DOE will recommend and rank projects only to the extent necessary to exhaust the amount available for allocation in each § 48C(e) program allocation round. (4) For Round 1 of the § 48C(e) pro gram, the application period begins on May 31, 2023, and ends on the date by which § 48C(e) applications must be sub mitted as specified in additional § 48C(e) program guidance (end of the application period). Any § 48C(e) application submit ted through the eXCHANGE portal after May 31, 2023, and on or before the date that ends the application period will be deemed to be submitted by the taxpayer March 6, 2023 512 Bulletin No. 2023–10 on the date that ends the application pe riod. (5) For Round 1 of the § 48C(e) pro gram, a concept paper for DOE consider ation must be submitted by July 31, 2023. The § 48C(e) application (as defined in section 5.02(3) of this notice) must be sub mitted by the date specified in additional § 48C(e) program guidance. If a project meets the preliminary compliance review criteria (as specified in section 6.01 of this notice), DOE will determine the merits of the project and (for projects determined to be meritorious) provide DOE recommen dation to the IRS (6) Each applicant will receive an electronically generated confirmation of receipt upon submission of (a) the con cept paper and (b) the § 48C(e) applica tion. The timeliness of submission of the § 48C(e) application will be determined by the submittal date and time shown on the confirmation of receipt. (7) For Round 1 of the § 48C(e) pro gram, the IRS will send each applicant an Allocation Letter in the case of an accep tance or a Denial Letter in the case of a rejection and will also notify DOE. (8) If the taxpayer’s § 48C(e) applica tion is accepted, the IRS will determine the amount of the § 48C credit allocated to the project and the Allocation Letter will state the amount of the credit allocated to the project. The date of the Allocation Letter will be treated as the date of acceptance by the Secretary of the taxpayer’s § 48C(e) application for purposes of establishing the time to meet criteria for certification as required by § 48C(e)(3)(B). (9) Upon request, DOE will offer a de briefing to an applicant that submitted a § 48C(e) application (after submitting a concept paper and being encouraged to submit such § 48C(e) application) and subsequently, was not allocated a cred it in Round 1 of the § 48C(e) program. Debriefings will not be available to ap plicants that receive a letter of discour agement. Debriefings will be held by DOE after the application period ends. Requests for a debriefing must be re ceived by DOE no later than 30 business days from the date of the Denial Letter issued to the applicant. The sole purpose of the debriefing is to provide DOE’s im pression of the strengths and weaknesses of the rejected § 48C(e) application to enable applicants to improve § 48C(e) applications for future rounds of the § 48C(e) program or § 48C credit alloca tion programs. (10) The Allocation Letter applies only to the taxpayer who requested it. Any suc cessor in interest may request that the IRS, by letter, transfer the credit allocation for the project to the successor in interest. The due date for making this request with the IRS is no later than 30 days prior to the due date (including extensions) of the successor in interest’s Federal income tax return for the taxable year in which the transfer occurs. The successor’s letter must be signed by a person who meets the requirements of section 7.02(2) of this notice. The suc cessor’s letter should provide: (a) the name of the transferor and its TIN; (b)the name and TIN of the successor’s parent (if any) if the successor files a re turn as a member of a consolidated group; (c) DOE control number, and project name and location; (d) the successor’s tax name and its TIN; (e) the successor’s contact telephone number; and (f) copy of binding contract of the transfer; (g) a statement that there is no signifi cant change from the application informa tion provided by the transferor, including that the project has not been placed in service at a location which is materially different than the location specified in the application for such project. The successor’s letter must include a signed attestation using the language from section 7.02(1) of this notice (replacing “submission” with “letter”), be signed by a person who meets the requirements of section 7.02(2) of this notice, and should include the name, title, and contact infor mation (address, phone number, fax num ber (if available), and email address) of the signer. The successor in interest must submit the letter through the eXCHANGE portal. The IRS will review the taxpayer’s re quest and determine whether to transfer the project’s allocation to the successor in interest and will notify the successor in interest by letter of its decision. If the proj ect’s credit allocation is not transferred to the successor in interest, the following rules apply: (a) In the case of an interest acquired at or before the time the qualifying advanced energy project is placed in service, any credit allocated to the project will be fully forfeited (and rules similar to the recap ture rules of § 50(a) apply with respect to qualified progress expenditures); and (b) In the case of an interest acquired after the qualifying advanced energy proj ect is placed in service, the project ceases to be investment credit property and the recapture rules of § 50(a) (and similar rules with respect to qualified progress ex penditures) apply. (11) The additional § 48C(e) program guidance will provide further details of the information required to be submitted to DOE in an application for DOE rec ommendation. The additional § 48C(e) program guidance will also provide addi tional details regarding the process for ap plying for DOE recommendation and the instructions for filing concept papers and applications for DOE recommendation. .04 Limitation on Qualified Invest- ment. A taxpayer’s qualified investment in a qualified advanced energy property is limited to the basis of eligible property (as defined in § 48C(c)(2) and section 3.03 of this notice). .05 Denial of Double Benefit. (1) In general. Section 48C(f) provides that a credit is not allowed under § 48C for any qualified investment for which a cred it is allowed under §§ 48, 48A, 48B, 48E, 45Q, or 45V. If the IRS determines a credit has been claimed for that same investment under §§ 48, 48A, 48B, 48E, 45Q, or 45V, the IRS will not allocate the § 48C credit and any previously sent Allocation Letter is void.” (2) Coordination with § 45X credit. Additionally, property is not an “eligible component” for purposes of the credit un der § 45X (§ 45X credit) if it is produced at a facility and the basis of any proper ty included in such facility is taken into account for purposes of § 48C after Au gust 16, 2022. See § 45X(c)(1)(B). For purposes of § 48C, a facility includes all eligible property included in a qualify ing advanced energy project for which a taxpayer receives an allocation of § 48C credits and claims such credits after Au gust 16, 2022. Guidance regarding wheth Bulletin No. 2023–10 513 March 6, 2023 er property has been produced at a facility the basis of which has been taken into ac count for purposes of § 48C will be pro vided in additional guidance regarding the § 45X credit. (3) Required taxpayer certification. A taxpayer must certify under penalties of perjury that the taxpayer did not claim a credit for that same investment under any of §§ 45X, 48, 48A, 48B, 48E, 45Q, or 45V. “Under penalties of perjury, I declare that I have examined the information con tained in this affirmative statement and the documents that substantiate this affir mative statement, and to the best of my knowledge and belief, it is true, correct, and complete.” Additionally, the person signing the penalty of perjury statement must also certify the following: “I further declare that I have authori ty to sign this document on behalf of the taxpayer.” A taxpayer must provide this certifica tion statement with (1) its § 48C(e) appli cation and (2) at the time it notifies DOE that the project has been placed in service. .06 Section 48C(e) Energy Commu- nities Census Tracts. Section 48C(e)(2) limits the total amount of § 48C credits that the Secretary may allocate under the § 48C(e) program to $10 billion. Of that amount, the Secretary must allocate at least $4 billion of § 48C credits to projects located in certain energy communities (as described in § 45(b)(11)(B)(iii)) that did not have a project that received a certifi cation and allocation of credits under the § 48C(e) allocation program (§ 48C(e) Energy Communities Census Tracts). Ac cordingly, as part of DOE’s recommenda tions, DOE will determine which projects are in § 48C(e) Energy Communities Cen sus Tracts and are therefore eligible for an allocation of the $4 billion of § 48C credits that are available only for projects located in those census tracts. Because of the limitation in § 48C(e)(2) on alloca tions with respect to projects that are not in § 48C(e) Energy Communities Census Tracts, whether a project is in a § 48C(e) Energy Communities Census Tract may impact DOE’s recommendation with re spect to a project. An applicant will be able to determine whether its project is located in a § 48C(e) Energy Communi ties Census Tract using the mapping tool that will be referenced in the additional § 48C(e) program guidance. The determi nation of whether a project is located in a § 48C(e) Energy Communities Census Tract will be made at the time that DOE provides recommendations to the IRS and will not be redetermined. .07 Certification for Prevailing Wage and Apprenticeship Requirements. As part of a § 48C(e) application (as described in section 6 of this notice), an applicant who intends to apply for and receive an allo cation of § 48C credits calculated at the 30 percent credit rate must confirm that it intends to satisfy the prevailing wage and apprenticeship requirements described in section 4 of this notice (Initial PWA Confirmation). When the taxpayer noti fies DOE that it has placed the project in service (pursuant to section 5.09 of this notice), such taxpayer must also confirm that it satisfied the requirements in section 4 of this notice (Final PWA Confirmation). If a taxpayer does not provide an Initial and Final PWA Confirmation at the times described in this paragraph, such taxpayer will be required to claim the § 48C cred it at the 6 percent credit rate and the re mainder of § 48C credits allocated to such project, if any, will be forfeited and avail able for reallocation in a future § 48C(e) program allocation round. Nothing in this paragraph prevents the IRS from deter mining during an examination that a tax payer did not satisfy the requirements in section 4 of this notice. .08 IRS Issuance of Certification. A taxpayer whose application is accepted and who received an Allocation Letter from the IRS pursuant to section 5.02(8) of this notice must obtain a Certification Letter pursuant to section 7 of this notice to be eligible to claim the § 48C credit specified in its Allocation Letter. .09 Notification that Project is Placed In Service. (1) A taxpayer has 2 years from the date of the Certification Letter (as described in section 5.08 and section 7 of this notice) to place the project in service. See section 3.04 of this notice for the definition of placed in service. A taxpayer must notify DOE when the project is placed in service by submitting such notification through the eXCHANGE portal. DOE will accept a taxpayer’s notification that the project was placed in service and send an ac knowledgement letter. (2) If a taxpayer fails to place a project in service within 2 years from the date of the Certification Letter, a taxpayer must promptly notify DOE and the IRS within 60 days of the date that is 2 years from the date of the Certification Letter by sub mitting such notification through the eX CHANGE portal. Under § 48C(e)(3)(C), any certification is void if the project is not placed in service within 2 years from the date of the Certification Letter. SECTION 6. CONCEPT PAPERS AND § 48C(e) APPLICATIONS .01 In General. A taxpayer must sub mit for each project for which it seeks a § 48C allocation for Round 1 (1) by July 31, 2023, a concept paper for DOE con sideration and (2) by the date specified in the additional § 48C(e) program guidance, the § 48C(e) application. If an application for DOE recommendation does not (1) propose an eligible project or (2) include all of the information required in this no tice and the additional § 48C(e) program guidance (referred to herein as compli- ance review criteria), DOE may decline to consider the application, or DOE may request an applicant resubmit its applica tion with the missing information. If DOE does not provide a recommendation for the application, the IRS will not consider § 48C(e) application. .02 Information Required in the § 48C Application. By submitting an application through the eXCHANGE portal, an ap plicant is submitting a joint application for DOE recommendation and an appli cation for § 48C(e) certification. The eX CHANGE portal will prompt an applicant to enter necessary information and will provide corresponding instructions re garding the requirements for the § 48C(e) application. This information will include: (1) The name, address, federal employ er identification number, and unique enti ty identifier number of the taxpayer (more information on unique entity identifier numbers at https://www.gsa.gov/about us/organization/federalacquisitionser vice/technologytransformationservices/ officeofsystemsmanagement/integrat edawardenvironmentiae/iaesystemsin formationkit/uniqueentityidishere?_ March 6, 2023 514 Bulletin No. 2023–10 ga=2.5445299.1413902251.1675976444 2019528746.1671035291). If the taxpayer is a member of an affiliated group filing consolidated returns, the taxpayer must also provide the name, address, and TIN of the common parent of the group. (2) The name, telephone number, and email address of a contact person. (3) The census tract where the taxpayer will locate the project. (4) Whether the taxpayer will satisfy the prevailing wage and apprenticeship requirements and seeks a credit allocation in an amount that is 30 percent of the qual ified investment. If the taxpayer intends to comply with the prevailing wage and ap prenticeship requirement, the application should include the Initial PWA Confirma tion. See section 5.07 of this notice. (5) The information requested in Ap pendix B of this notice and additional information specified in the additional § 48C(e) program guidance. SECTION 7. ISSUANCE OF CERTIFICATION .01 In General. Section 48C(e)(3)(B) provides that a taxpayer has 2 years from the date of acceptance by the Secretary of the § 48C(e) application during which to provide evidence that the requirements of the certification have been met in accor dance with section 7.02 of this notice. If such evidence is not timely received, the allocated § 48C credits will be forfeited. Section 48C(e)(3)(C) provides that a tax payer that receives a certification has an additional 2year period beginning from the date of issuance of the certification to place the project in service and to notify the Secretary that such project has been placed in service. If such project is not placed in service by that time period, then the certification is no longer valid. .02 Satisfaction of Requirements for Certification. A project is eligible for cer tification only if the taxpayer has received all permits from federal, state, tribal, and local governmental bodies for construc tion of the project at the planned location, including environmental authorization or reviews necessary to commence construc tion of the project. The Secretary may conduct additional allocation rounds for applications for certification if the Secre tary determines that: (1) there is an insuf ficient quantity of qualifying applications for certification pending at the time of the review, or (2) any certification made pursuant to § 48C(e)(2) has been revoked pursuant to § 48C(e)(2)(B) because the project subject to the certification has been delayed as a result of thirdparty op position or litigation. The taxpayer must submit to DOE through the eXCHANGE portal evidence establishing that it has met all require ments necessary to commence construc tion of the project. (1) The documentation establishing that the certification requirements of sec tion 7.01 of this notice are satisfied must be accompanied by a letter that includes the following written declaration: “I de clare that I am authorized to legally bind [name of taxpayer]. Under penalties of perjury, I declare that I have examined this submission, including any accompanying documents, and, to the best of my knowl edge and belief, all of the facts contained herein are true, correct, and complete.” (2) The taxpayer’s submission (the let ter including the perjury declaration and documentation) must be signed and dated by the taxpayer. The person signing for the taxpayer must have personal knowl edge of the facts. Further, the submission must be signed by a person authorized under state law to bind the taxpayer, such as an officer on behalf of a corporation, a general partner of a state law partnership, a membermanager on behalf of a limited liability company, a trustee on behalf of a trust, or the proprietor in the case of a sole proprietorship. If the taxpayer is a mem ber of an affiliated group filing consoli dated returns, the submission also must be signed by a duly authorized officer of the common parent of the group. .03 DOE Notification. Upon receipt of the evidence described in section 7.02 of this notice that the taxpayer has satisfied the requirements for certification, DOE will notify the IRS and will send an ac knowledgment to the taxpayer. .04 IRS Action on Certification. After receiving the notification from DOE de scribed in section 7.03 of this notice, the IRS will notify the taxpayer, by letter, of the IRS’s decision regarding certification. The date of the Certification Letter is the date of issuance of the certification for purposes of § 48C(e)(3)(C). SECTION 8. OTHER REQUIREMENTS .01 Significant Change in Plans. The taxpayer must inform DOE and the IRS if the plans for the project change in any sig nificant respect from the plans set forth in the concept paper and the § 48C(e) appli cation. The additional § 48C(e) program guidance will provide the procedures for notifying DOE and the IRS. A significant change is any change that a reasonable person would conclude might have in fluenced DOE in recommending or rank ing the project or the IRS in issuing the Allocation Letter had the person known about the change when considering the § 48C(e) application. Moving the project to a census tract different than the tract stated in the concept paper and § 48C(e) application is a significant change. Failure to satisfy the prevailing wage and appren ticeship requirements is not a significant change. See section 4.03 of this notice. Any significant change to the plans set forth in the § 48C(e) application will have the following effects: (1) If the IRS is informed of the change after the date on which the final appli cations for DOE recommendation were due for Round 1 of the § 48C(e) program under section 5.02(3) of this notice and before the IRS sends the Allocation or Denial Letter, see section 5.02(7) of this notice, the IRS and DOE will not consider the project during Round 1 of the § 48C(e) program; and (2) If the IRS is informed of the change after the Allocation Letter is sent to the taxpayer, any allocation or certification based on that acceptance is void. .02 Effect of an Acceptance, Alloca- tion, or Certification. An acceptance, allo cation, or certification under this notice is not a determination that a project is eligi ble for the § 48C credit or that any prop erty that is part of the project is eligible property under § 48C(c)(2). The IRS may, upon examination (and after any appro priate consultation with DOE), determine that the project does not qualify for the § 48C credit or that the property is not el igible property for purposes of this credit. .03 Reduction or Forfeiture of Allocat- ed Credits. The § 48C credits allocated un der section 5 of this notice may be reduced or forfeited in certain situations. A taxpay Bulletin No. 2023–10 515 March 6, 2023 er must notify the IRS of the amount of any reduction or forfeiture as required by this notice through the eXCHANGE portal. The amount of any reduction or forfeiture of the allocated credits will be returned and included in the aggregate credit remaining in the § 48C(e) program and under the procedures prescribed pur suant to section 9.02 of this notice SECTION 9. FUTURE ALLOCATION ROUNDS .01 Future Allocation Rounds. After Round 1 of the § 48C(e) program, the IRS will conduct one or more additional allocation rounds for the § 48C(e) pro gram. Guidance issued subsequent to the additional § 48C(e) program guidance (subsequent § 48C(e) program guidance) will prescribe the procedures applicable to future allocation rounds of the § 48C(e) program. .02 Review and Redistribution of Cred- its. Under § 48C(e), credits available un der § 48C(e)(2) may be reallocated if any certification made pursuant to § 48C(e)(3) has been revoked pursuant to § 48C(e)(3) (C). If credits under § 48C(e) are available for reallocation, the IRS may conduct an additional allocation program. Subsequent § 48C(e) program guidance will prescribe the procedures applicable to any addition al program. SECTION 10. QUALIFIED PROGRESS EXPENDITURES .01 Section 48C(b)(2) provides that rules similar to the rules of § 46(c)(4) and (d) (as in effect on the day before the enactment of the Revenue Reconcili ation Act of 1990) apply for purposes of § 48C. Former § 46(c)(4) and (d) provided the rules for claiming the investment tax credit on qualified progress expenditures (as defined in former § 46(d)(3)) made by a taxpayer during the taxable year for the construction of progress expenditure property (as defined in former § 46(d)(2)). .02 In the case of selfconstructed property (as defined in former § 46(d) (5)(A)), former § 46(d)(3)(A) defined qualified progress expenditures to mean the amount that is properly chargeable (during the taxable year) to the capital ac count with respect to that property. With respect to a qualifying advanced energy project that is selfconstructed property, amounts paid or incurred are chargeable to the capital account at the time and to the extent they are properly includible in computing basis under the taxpayer’s method of accounting (for example, af ter applying the requirements of § 461, including the economic performance re quirement of § 461(h)). .03 To claim the § 48C credit with respect to the qualified progress expen ditures paid or incurred by a taxpayer during the taxable year for construction of a qualifying advanced energy project, the taxpayer must make an election (Qualified Progress Expenditures Election) under the rules set forth in § 1.465(o) of the In come Tax Regulations (26 C.F.R. part 1). A taxpayer may not make the Qualified Progress Expenditures Election for a qual ifying advanced energy project until the taxpayer has received a Certification Let ter for the project under section 5.02(10) of this notice. .04 If a taxpayer makes a Qualified Progress Expenditures Election pursuant to section 10.03 of this notice, rules sim ilar to the recapture rules in § 50(a)(2) (A) through (D) apply. In addition to the cessation events listed in § 50(a)(2)(A), examples of other events that will cause the project to cease being a qualifying ad vanced energy project are: (1) Failure to place the project in ser vice within 2 years from the date of the Certification Letter; or (2) A significant change to the plans for the project as set forth in the § 48C(e) application if, under section 8.01 of this notice, the allocation is void as a result of the change. SECTION 11. DISCLOSURE OF INFORMATION Section 48C(e)(7) provides that upon making a certification under § 48C(e), the Secretary is required to disclose pub licly the identity of the applicant and the amount of the credit certified with respect to such applicant. Accordingly, the IRS will publish the results of Round 1 of the § 48C(e) program and will disclose the identity of the taxpayer and the amount of the § 48C credits allocated to the taxpayer with respect to projects that have been al located a § 48C credit and have received a certification. SECTION 12. EFFECTIVE DATE This notice is effective on February 13, 2023. SECTION 13 PAPERWORK REDUCTION ACT The collection of information con tained in this notice has been submitted to the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control number 15452151 and approval is pending. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information un less the collection of information displays a valid OMB control number. The collections of information in this notice are in sections 5, 6, 7, 8 and Appen dix B of this notice. This information is required to obtain an allocation of § 48C credits. The IRS will use this information to verify that the taxpayer is eligible for the § 48C credits. The collection of infor mation is required to obtain a benefit. The likely respondents are business or other forprofit institutions. The estimated total annual reporting burden is 275,000 hours. The estimated annual burden per re spondent varies from 70 to 150 hours, de pending on individual circumstances, with an estimated average of 110 hours. The es timated number of respondents is between 2000 to 3000. The estimated annual frequency of re sponses is on occasion. Books or records relating to a collec tion of information must be retained as long as their contents may become mate rial in the administration of any internal revenue law. Generally, tax returns and return information are confidential, as re quired by 26 U.S.C. § 6103. SECTION 14. DRAFTING INFORMATION The principal author of this notice is John M. Deininger of the Office of As sociate Chief Counsel (Passthroughs & Special Industries). For further infor March 6, 2023 516 Bulletin No. 2023–10 mation regarding this notice contact Mr. Deininger on (202) 3176853 (not a toll free call). Any questions or comments regarding the nontax aspects of this no tice can be submitted to the Department of Energy at 48CQuestions@hq.doe.gov. DOE may post questions and answers related to this notice on Infrastructure eXCHANGE at https://infrastructureex change.energy.gov (select 48C from the list of options to view questions and an swers specific to notice). Any questions or comments received under this notice are subject to public release pursuant to the Freedom of Information Act. DOE is under no obligation to respond to, or acknowledge receipt of, any questions or comments submitted under this no tice and any responses provided do not constitute legal advice provided by either DOE or the IRS. Bulletin No. 2023–10 517 March 6, 2023 APPENDIX A Qualifying Advanced Energy Projects For the purposes of determining eligibility for the § 48C tax credit, a qualifying advanced energy project means: 1. Clean Energy Manufacturing and Recycling Projects A qualifying advanced energy project in this category reequips, expands, or establishes an industrial or manufacturing facility for the production or recycling of: a. Property designed to be used to produce energy from the sun, water, wind, geothermal deposits (within the meaning of 26 U.S.C. § 613(e)(2)), or other renewable resources. (i) Examples of eligible property include solar panels and their specialized support structures; wind turbines, towers, floating offshore platforms, and related equipment; power electronics designed for use with eligible solar or wind property; equipment to concentrate sunlight to generate heat for industrial processes or to convert it to electricity; geothermal turbines and heat pumps; hydropower turbines; and other products directly used to generate electrical and/or thermal energy from renewable resources, as well as the specialized components, subcomponents, and materials incorporated into any such eligible property, including equipment for sensing communication, and control. (ii) Examples of ineligible property include equipment for applications other than the conversion of energy from renewable resources for delivering electricity, building heat, or industrial process heat such as a gas turbine generator set which burns natural gas, or building that houses a boiler to heat water from fossil fuel. b. Fuel cells, microturbines, or energy storage systems and components. (i) Examples of eligible property include stationary batteries; stationary hydrogen fuel cells; hydrogen storage vessels; microturbines for combined heat and pow er systems; pumps and turbines for pumped hydropower storage systems; and the specialized components of any such equipment, including equipment for sensing communication, and control. (ii) Examples of ineligible property include heavy gas turbines. For electric vehicle batteries and fuel cells for vehicles see the “light, medium, or heavyduty electric or fuel cell vehicles” project class. c. Electric grid modernization equipment or components. (i) Examples of eligible property include grid equipment for electricity delivery; power flow, control, and conversion, such as transformers, power electronics, advanced cables and conductors, advanced meters, breakers, switchgears, composite poles, converters, MVDC and HVDC lines, grid enhancing technologies, and electrical steel or alloys used in transformer cores. Examples of eligible property also include the specialized components of any such grid modernization equipment, including components for sensing communication, and control. (ii) Electric vehicle supply equipment qualifies under the “light, medium, or heavyduty electric or fuel cell vehicles” project class. Storage technologies for grid applications qualify under the “fuel cells, microturbines, or energy storage systems and components” project class. d. Property designed to capture, transport, remove, use, or sequester carbon oxide emissions. (i) Examples of eligible property include carbon capture equipment necessary to compress, treat, process, liquefy, pump or perform some other physical action to capture carbon oxides, including solvents; membranes; sorbents; chemical processing equipment; compressors; monitoring equipment; and injection equipment; and well components such as packers, casing strings, steel tubulars, well head, valves, and sensors suitable for use in Underground Injection Control (UIC) Class VI wells. Eligible property also includes transportation equipment, as in a system of gathering and distribution pipelines, including pipelines that collect carbon oxide captured from an industrial facility or multiple facilities for the purpose of transporting that carbon oxide. (ii) Examples of ineligible property include scrubbers for conventional air pollutants (except those that are required to remove pollutants upstream of carbon capture equipment for technical performance reasons); energy generation equipment, (except as related to energy recovery at carbon capture systems); and refining equipment. e. Equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is renewable, or low-carbon and low- emission. For the purposes of Round 1 of the § 48C(e) program, such renewable, and lowcarbon, lowemission fuels, chemicals, and products include: (i) Renewable transportation fuel which: (A) is suitable for use as a fuel in a vehicle, marine vessel, or aircraft, (B) is derived from or coprocessed with: (I) a biomass feedstock, or (II) hydrogen produced from renewable energy and inputs, and March 6, 2023 518 Bulletin No. 2023–10 (C) is not derived from palm fatty acid distillates or fossil fuels, including coal, natural gas, and petroleum. A qualifying advanced energy project does not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels, as described herein). (ii) Clean hydrogen produced with a welltogate carbon intensity of less than 4kgCO2e/kgH2, in accordance with the definition of qualified clean hydrogen under the § 45V tax credit program. (iii) Other fuel which: (A) is derived from or coprocessed with a renewable feedstock or achieves at least a 50 percent lifecycle greenhouse gas emis sions reduction in comparison with the conventional alternative, (I) is not a transportation fuel, and (II) is not derived from palm fatty acid distillates or fossil fuels, including coal, natural gas, and petroleum. (iv) Product or chemical which: (A) is derived from or coprocessed with a renewable feedstock or achieves at least a 50 percent lifecycle greenhouse gas emis sions reduction in comparison with the conventional alternative, (B) is suitable for use as an industrial feedstock, and (C) is not derived from palm fatty acid distillates or fossil fuels, including coal, natural gas, and petroleum. (v) Examples of eligible property include electrolyzers; mixing devices; pumps; separation devices; bioprocessing equipment; biomass preprocessing equipment; and reactors, so long as they are intended for use to produce eligible fuels, chemical, and products, as demonstrated through engineering specifications or offtake agreements. (vi) Examples of eligible fuels, chemicals, and products produced by eligible equipment include hydrogen produced through electrolysis powered by low or zeroemissions energy; lowemissions ammonia; renewable biofuels, including sustainable aviation fuel and fuels intended to displace petroleum fuel in onroad and offroad applications; and lowemissions chemicals, basic organic chemicals, and polymer resins. (vii) Examples of ineligible fuels and chemicals would include those derived solely from fossil resources produced through conventional petroleum and natural gas refining. Instructions for calculating welltogate carbon intensity of clean hydrogen and lifecycle emissions rates will be provided in additional § 48C(e) program guidance. f. Property designed to produce energy conservation technologies (including residential, commercial, and industrial applications) (i) Examples of eligible energy conservation property include technologies and gridinteractive devices eligible for residential or commercial efficiency im provements for purposes of the § 25C credit or the § 179D tax deduction, as well as equipment that directly reduces net energy use in industrial applications, such as ultraefficient heat pumps, insulation, ultraefficient hot water systems, sensors, controls, and similar advanced efficiency technologies. (ii) Examples of ineligible energy conservation property include those that reduce electricity usage by increasing direct natural gas or other fossil fuel use and/or lead to increased systemlevel emissions. g. Light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as technologies, components, or materials for such vehicles, and associated charging or refueling infrastructure. (i) Examples of eligible property include battery electric, plugin hybrid electric, or fuel cell cars, trucks, and buses, as well as the specialized components of those vehicles, such as batteries, electric drive systems, fuel cells, and the materials and subcomponents therein. (ii) Examples of eligible charging or refueling infrastructure include electric vehicle supply equipment (EVSE), components from the grid connection to the vehicle, bidirectional charging equipment, and components used in hydrogen refueling stations (e.g., hydrogen compressors, pumps, storage vessels, and dispensing equipment). (iii) Examples of ineligible equipment include internal combustion engine vehicles of all sizes, nonplugin hybrid vehicles of less than 14,000 pounds gross vehi cle weight rating, and their components, as well as associated refueling infrastructure, such as petroleum gas, liquefied or compressed natural gas, or ethanol refueling stations. Examples of ineligible equipment also include components of charging or refueling stations, such as signage, that are not directly involved in the transfer of fuel or power to the vehicle. h. Hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or materials for such vehicles. (i) Examples of eligible property include traction batteries, converters, power electronics, and assembled hybrid vehicles themselves, but components and materials must be designed for large hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as demonstrated through engineering specifications and/ or offtake agreements. Bulletin No. 2023–10 519 March 6, 2023 i. Other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary. (i) Examples of eligible advanced energy property include specialized components and equipment for nuclear power reactors or their fuels, and equipment used to reduce the emissions of industrial processes. Property may be determined to be designed to reduce greenhouse gas emissions either through published guidance or in the letter notifying a taxpayer that the IRS has accepted the taxpayer’s application for §48C certification with respect to the property. 2. Greenhouse Gas Emission Reduction Projects A qualifying advanced energy project in this category reequips an industrial or manufacturing facility, including energyintensive manufacturing sectors, such as cement, iron and steel, aluminum, and chemicals, with equipment designed to reduce greenhouse gas emissions by at least 20 percent through the installation of one of more of the following: a. Low- or zero-carbon process heating systems. (i) Examples of eligible equipment include electric heat pumps, combined heat and power (CHP) systems, and heating systems based on electricity, clean hydro gen, biomass, or waste heat recovery. b. Carbon capture, transport, utilization, and storage systems. (i) Examples of eligible equipment include carbon capture equipment necessary to compress, treat, process, liquify, pump, or perform some other physical action to capture carbon oxides, and specialized equipment and materials needed for the storage of carbon oxide including carbon dioxide pipelines; monitoring equipment; and injection equipment and well components such as packers; casing strings; steel tubulars; well head; valves; and sensors suitable for use in UIC Class VI wells. (ii) Examples of ineligible property include scrubbers for conventional air pollutants, except those that are required to remove pollutants upstream of carbon capture equipment for technical performance reasons; energy generation equipment, except as related to energy recovery at carbon capture systems; and refining equipment. c. Energy efficiency and reduction in waste from industrial processes. (i) Examples of eligible equipment include technologies that reduce direct fuel use, electricity use, or waste in industrial applications, such as industrial heat pumps, combined heat and power (CHP) systems, insulation, sensors, controls, advanced recycling approaches, smart energy management, and similar advanced efficiency technologies. d. Any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary. (i) Examples of other eligible industrial technologies include electrification of direct fuel use processes, adoption of renewable or lowemissions fuels and feedstocks, and other equipment replacement or process redesigns that reduce fuel or processrelated emissions or otherwise contribute to reducing greenhouse gas emissions by at least 20 percent. Instructions for calculating and demonstrating an emissions reduction of 20 percent will be provided in the additional § 48C(e) program guidance. 3. Critical Material Projects A qualifying advanced energy project in this category reequips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in § 7002(a) of the Energy Act of 2020 (30 U.S.C. § 1606(a)). For purposes of this Phase I, critical materials will consist of: a. The currently effective final list of critical minerals as determined by the U.S. Geological Survey (see 2022 Final List of Crit ical Minerals for the list published in 2022 available at: https://www.federalregister.gov/documents/2022/02/24/202204027/2022 finallistofcriticalminerals); and b. Any additional critical materials as determined by the Secretary of Energy and posted on the http://www.energy.gov/criticalm aterials by July 31, 2023. Examples of eligible projects in this project category include industrial facilities that process raw ore, brines, mine tailings, endoflife products, waste streams, and other source materials into critical materials. Examples of ineligible projects under this project category include facilities that process critical materials into derivative products, such as metals processing. However, facilities of this latter type may be eligible under the Clean Energy Manufacturing and Recycling Projects category. March 6, 2023 520 Bulletin No. 2023–10 APPENDIX B DOE APPLICATION PROCESS I. DOE Review Process A twostage technical evaluation process will be used for submissions: • Stage 1 – Concept Paper • Stage 2 – § 48C(e) Application A. Concept Paper The first stage requires taxpayers to submit concept papers describing the proposed project. Concept papers will be evaluated against criteria that may include eligibility requirements, definitions for qualifying advanced energy projects, reasonable expectation of commercial viability, and other factors described in the additional § 48C(e) program guidance. Following this preliminary review, taxpayers will receive a letter either encouraging them to submit a § 48C(e) application or discouraging them from submitting a § 48C(e) application. DOE will begin accepting concept papers when the additional § 48C(e) program guidance is issued on May 31, 2023, and concept papers must be submitted to DOE no later than July 31, 2023. A taxpayer that receives a discouragement letter may still submit a § 48C(e) application in accordance with the § 48C(e) program guidance. Receiving a discouragement letter in response to a submitted concept paper does not disqualify a taxpayer from submitting a § 48C(e) application but represents DOE’s feedback that the project, as proposed, is unlikely to receive a recommendation based on the information provided in the concept paper. B. § 48C(e) Application The second evaluation stage will consist of a review of § 48C(e) applications submitted after the concept paper stage. Taxpayers may not submit § 48C(e) applications unless they submitted concept papers by the specified deadline. DOE will review applications for DOE recommendation for compliance to determine that (1) the application meets the eligibility requirements, (2) the information required by the additional § 48C(e) program guidance has been submitted, (3) the taxpayer filed a timely concept paper, and (4) all mandatory requirements of the additional § 48C(e) program guidance are satisfied. The review will also include a thorough, consistent, and objective examination of applications for DOE recommendation based on technical review criteria and program policy factors outlined in the additional § 48C(e) program guidance. II. Application Evaluation Information A. Technical Review Criteria Applications for DOE recommendation will be evaluated based on technical review criteria to be described in the additional § 48C(e) program guidance. These criteria will include selection criteria described in § 48C(d)(3) and additional criteria that further the goals of the program. As part of the technical review criteria to be described in the additional § 48C(e) program guidance, DOE anticipates evaluating applications for DOE recommendation based on the net impact of the qualifying project in avoiding or reducing greenhouse gases emissions, as described in the additional § 48C(e) program guidance. DOE also anticipates evaluating applications for DOE recom mendation based on the community benefits of the proposed qualifying advanced energy projects, which may include community and labor engagement and commitment to high quality and accessible jobs and workforce pathways. B. Program Policy Factors In addition to technical review criteria, DOE may consider one or more policy factors in determining which applications for DOE recommendation submitted during Round 1 of the § 48C(e) program to recommend to the IRS for certification. To achieve maximum benefits to strengthen U.S. industrial competitiveness and clean energy supply chains as well as to promote high quality jobs and community benefits, DOE may consider giving priority to qualifying advanced energy projects not eligible for support from other DOE financial assistance programs funded by the Infrastructure Investment and Jobs Act (Public Law 11758) or the Inflation Reduction Act of 2022 (Public Law 117169). Bulletin No. 2023–10 521 March 6, 2023 In some cases, benefits towards the program’s goals may be enhanced if a project receiving a credit under § 48C also receives com plementary assistance from other programs. For taxpayers seeking assistance from other programs for the same proposed qualifying advanced energy project, DOE may consider whether the application for DOE recommendation sufficiently justifies the need for and benefits of receiving assistance from multiple programs. Complementary assistance may also affect the tax treatment of property for which a taxpayer receives an allocation under the § 48C(e) program. C. Strengthening Secure, Domestic, Clean Energy Supply Chains To help build more resilient, diverse, and secure U.S. clean energy supply chains, DOE may consider whether proposed projects address specific gaps, vulnerabilities, or risks in the domestic production of clean energy products. The additional § 48C(e) program guidance will indicate specific priority technologies that would address these gaps, vulnerabilities, and risks to relevant domestic supply chains. To further ensure the § 48C(e) program supports these goals to the greatest extent possible, DOE may conduct a review to determine if an applicant has a connection with a foreign country of risk that could frustrate the achievement of these goals. To ensure trans parency of foreign connections, DOE anticipates requiring applicants to provide certain information regarding, for example, board membership, ownership structure, and foreign relationships, as well as sources of, and any plans to export, critical minerals. III. Submission and Registration Requirements for DOE Recommendation Process This section describes DOE’s submission and registration requirements for applicants. An application for DOE recommendation will not be considered in Round 1 of the § 48C(e) program unless the concept paper is received by the concept paper deadline, and the § 48C(e) application is received by the end of the application period. A. Submission of Application All § 48C(e) application materials must be submitted through the eXCHANGE portal at https://infrastructureexchange.energy.gov to be considered. Taxpayers will not be able to submit a § 48C(e) application through the eXCHANGE portal unless registered. Please read the registration requirements below carefully and start the registration process immediately. If you have problems completing the registration process, send an email to the eXCHANGE portal helpdesk at https://infrastructureexchange.energy.gov. Section 48C(e) applications submitted by any other means will not be accepted. B. Registration Process Requirements Taxpayers that wish to participate in the § 48C(e) program must register and create an account on the eXCHANGE portal at: https:// infrastructureexchange.energy.gov. This account will allow the user to apply to any open Funding Opportunity Announcements (FOA) that are currently the eXCHANGE portal. It is recommended that each business unit use only one account as the appropriate contact point for each submission. Potential applicants will be required to have a Login.gov account to access the eXCHANGE portal. As part of the eXCHANGE portal registration process, new users will be directed to create an account in Login.gov. Please note that the email address associated with Login.gov must match the email address associated with the eXCHANGE portal account. For more information, refer to the Infra structure eXCHANGE Login Guide in the Manuals section of the eXCHANGE portal at https://infrastructureexchange.energy.gov/ Manuals.aspx. C. Electronic Authorization of Applications Submission of § 48C(e) application materials through electronic systems used by DOE, including the eXCHANGE portal, will con stitute the authorized representative’s approval and electronic signature. D. Markings of Confidential Information If elements of a § 48C(e) application contain information the taxpayer considers to be trade secrets, confidential, privileged or oth erwise exempt from disclosure under the Freedom of Information Act (FOIA, 5 U.S.C. § 552), the taxpayer may assert a claim of exemption at the time of application by placing the following text on the first page of the § 48C(e) application, and specifying the page or pages of the § 48C(e) application to be restricted: March 6, 2023 522 Bulletin No. 2023–10 “Pages [list applicable pages] of this document may contain trade secrets, confidential, proprietary, or privileged information that is exempt from public disclosure. Such information shall be used or disclosed only for evaluation purposes or in accordance with a financial assistance or loan agreement between the submitter and the Government. The Government may use or disclose any information that is not appropriately marked or otherwise restricted, regardless of source. [End of Notice]” The header and footer of every page that contains confidential, proprietary, or privileged information must be marked as follows: “Contains Trade Secrets, Confidential, Proprietary, or Privileged Information Exempt from Public Disclosure.” In addition, each line or paragraph containing proprietary, privileged, or trade secret information must be clearly marked with double brackets or highlighting. Bulletin No. 2023–10 523 March 6, 2023 Interim Guidance Regarding Certain Insurance Related Issues for the Determination of Adjusted Financial Statement Income under Section 56A of the Internal Revenue Code Notice 2023-20 SECTION 1. OVERVIEW This notice provides the additional in terim guidance described in section 1 of Notice 20237, 20233 I.R.B. 390, that is intended to help avoid substantial un intended adverse consequences to the in surance industry from the application of the new corporate alternative minimum tax (CAMT), as added to the Internal Revenue Code (Code) 1 by the enactment of § 10101 of Public Law 117169, 136 Stat. 1818, 18181828 (August 16, 2022), commonly referred to as the Inflation Re duction Act of 2022 (IRA). In addition to announcing that the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue proposed regulations (forthcoming proposed regulations) addressing the ap plication of the CAMT, sections 3 through 7 of Notice 20237 provided interim guidance regarding certain timesensitive CAMT issues that taxpayers may rely on until the issuance of the forthcoming proposed regulations. Notice 20237 also stated that the Treasury Department and the IRS intended to issue additional inter im guidance expected to address, among other issues, certain issues related to the treatment under the CAMT of life insur ance company separate account assets that are marked to market for financial state ment purposes, the treatment of certain items reported in other comprehensive income (OCI), and the treatment of em bedded derivatives arising from certain reinsurance contracts. Sections 3 through 5 of this notice provide additional interim guidance regarding these and other issues intended to be addressed by the forthcom ing proposed regulations. Taxpayers may rely on the guidance provided in sections 3 through 5 of this notice until the issuance of the forthcoming proposed regulations. Section 2 of this notice provides a summary of relevant law and other infor mation underlying the rules described in sections 3 through 5 of this notice. Sec tion 3 of this notice describes rules that address certain CAMT issues regarding variable contracts and similar contracts. Section 4 of this notice describes rules that address certain CAMT issues regarding funds withheld reinsurance and modified coinsurance agreements. Section 5 of this notice describes rules that address certain issues that arise under the CAMT for cer tain formerly taxexempt entities whose exemption from Federal income taxation was repealed by statute and as to which Congress provided special rules for de termining the Federal income tax basis in their assets held when the repeal of their exemption became effective. Section 6 of this notice describes the anticipated appli cability dates of the forthcoming proposed regulations. Section 7 of this notice re quests comments on the issues addressed in this notice. Section 8 of this notice pro vides drafting and contact information. SECTION 2. BACKGROUND .01 CAMT under the Inflation Reduc- tion Act. (1) Overview. Section 10101 of the IRA amended § 55 to impose the new CAMT based on the “adjusted financial statement income” (AFSI) of an applicable corpora tion for taxable years beginning after De cember 31, 2022. In general, a corporation is an applicable corporation subject to the CAMT for a taxable year if it meets an average annual AFSI test for one or more taxable years that (i) are before that tax able year and (ii) end after December 31, 2021. See section 2.01 of Notice 20237 for a general description of the CAMT. (2) AFSI under § 56A. (a) General definition of AFSI. For pur poses of §§ 55 through 59, the term AFSI means, with respect to any corporation for any taxable year, the net income or loss of the taxpayer set forth on the taxpayer’s applicable financial statement (AFS) for that taxable year, adjusted as provided in § 56A. See § 56A(a). (b) General definition of AFS. For pur poses of § 56A, the term AFS means, with respect to any taxable year, an AFS, as de fined in § 451(b)(3) or as specified by the Secretary of the Treasury or her delegate (Secretary) in regulations or other guid ance, that covers that taxable year. See § 56A(b). (c) General adjustments to AFSI. Sec tion 56A(c) provides general adjustments to be made to AFSI, several of which are described in section 2.01(3)(c) of Notice 20237. Section 56A(c)(2) provides spe cial rules that take into account the rela tionship between entities. (d) Treatment of dividends and other amounts. Section 56A(c)(2)(C) provides that in the case of a corporation that is not included on a consolidated return with a taxpayer, the taxpayer’s AFSI with respect to such other corporation is determined by taking into account only the dividends received from such other corporation (re duced to the extent provided by the Secre tary) and other amounts that are includible in gross income or deductible as a loss under chapter 1 of the Code (other than amounts required to be included under §§ 951 and 951A or such other amounts as provided by the Secretary) with respect to such other corporation. (e) AFSI of partners and partnerships. Section 56A(c)(2)(D)(i) provides that, ex cept as provided by the Secretary, if the taxpayer is a partner in a partnership, the taxpayer’s AFSI with respect to such part nership is adjusted to take into account only the taxpayer’s distributive share of such partnership’s AFSI. Section 56A(c) (2)(D)(ii) provides that, for purposes of §§ 55 through 59, a partnership’s AFSI is the partnership’s net income or loss set forth on that partnership’s AFS (adjusted under rules similar to the rules set forth in § 56A). (f) Authority of the Secretary to provide necessary adjustments. Section 56A(c) 1 Unless otherwise specified, all “section” or “§” references are to sections of the Code. March 6, 2023 524 Bulletin No. 2023–10 (15) authorizes the Secretary to issue reg ulations or other guidance to provide for such adjustments to AFSI as the Secretary determines necessary to carry out the pur poses of § 56A, including adjustments to AFSI to prevent the omission or duplica tion of any item. (g) General authority of the Secretary. Section 56A(e) authorizes the Secretary to provide such regulations and other guidance as necessary to carry out the purposes of § 56A, including regulations and other guidance relating to the effect of the rules of § 56A on partnerships with in come taken into account by an applicable corporation. .02 Variable Contracts under § 817 and Similar Contracts. (1) Variable contracts accounted for under § 817. Some insurance companies issue variable contracts (as defined in § 817(d)). In general, variable contracts are life insurance and annuity contracts under which the amount of the insur ance company’s obligation depends, at least in part, on the value of the assets held in a separate account that is segre gated from the general asset accounts of the insurance company. Provided certain requirements are met, under § 817(c), an insurance company that issues variable contracts (as defined in § 817(d)) must separately account for the various income, exclusion, deduction, asset, reserve, and other liability items properly attributable to such variable contracts. As a general matter, § 807 provides that increases in the life insurance reserves of a life insurance company are deductible and decreases in the life insurance reserves are includible in income. However, § 817(a) provides that for purposes of determining the net decrease or increase in reserves under § 807(a) or (b), amounts subtracted from or added to separate account reserves by reason of the depreciation or appreciation of separate account assets (whether or not realized) are disregarded. Under § 817(a), deductions for items described in § 805(a) (1) and (6), which include claims and ben efits accrued and losses incurred during the taxable year on insurance and annui ty contracts, are similarly adjusted for the depreciation or appreciation of separate account assets. Additionally, § 817(b) pro vides that the basis of each separate ac count asset is decreased by the amount of depreciation, or increased by the amount of appreciation, of separate account assets (whether or not realized), to the extent separate account reserves are adjusted for such depreciation or appreciation under § 817(a). Generally, the result is a perma nent elimination of any effects on compa nylevel taxable income that would other wise result from the change in the value of the separate account assets. (2) Contracts similar to variable con- tracts. Like variable contracts accounted for under § 817, the value of certain oth er contracts similarly depends directly, at least in part, on the value of the assets supporting those contracts. (a) Closed block contracts. When a mutual insurance company engages in a “demutualization” process to convert to a stock insurance company, the company may create a “closed block” for the benefit of holders of certain insurance contracts issued by the mutual insurance company. Generally, when a closed block is creat ed, the company allocates assets to the closed block in an amount such that the assets, together with future revenue from the closed block, are expected to provide sufficient cash flow for future policy ben efits, certain expenses, and policyholder dividends determined in a manner consis tent with the manner in which they were determined prior to the demutualization. The closed block assets and the revenue from the closed block benefit only holders of the policies in the closed block. (b) Other similar contracts. A for eign insurance company may issue con tracts that are regulated as life insurance or annuity contracts in the jurisdiction in which they are issued and for which the insurance company’s obligations to the contract holders (and the company’s corresponding reserves) must reflect (in whole or in part) the change in the value of a designated pool of investments sup porting the contract. (3) U.S. GAAP and IFRS accounting for variable contracts and similar con- tracts. The contracts described in sections 2.02(1), 2.02(2)(a), and 2.02(2)(b) of this notice generally have the same accounting treatment under U.S. generally accepted accounting principles (U.S. GAAP) and international financial reporting standards (IFRS). For example, under an AFS pre pared according to either U.S. GAAP or IFRS, unrealized gain or loss on the sup porting assets is included in the net income or loss set forth on the AFS, and there is an offsetting adjustment to certain liabil ities to reflect the resulting change in the company’s contractual obligations to con tract holders, which is also included in the net income or loss set forth on the AFS. However, unrealized gain or loss on some categories of the supporting assets, but not the offsetting adjustment to liabilities, is required to be disregarded under § 56A(c) (2)(C) or (D)(i) for purposes of determin ing AFSI, resulting in a mismatch that could significantly overstate or understate AFSI relative to taxable income. .03 Funds Withheld Reinsurance and Modified Coinsurance Agreements. (1) Overview. Insurance companies regularly engage in reinsurance transac tions in which one insurance company transfers all or part of its risk under an insurance contract to another insurance company. The insurance company that issues the underlying insurance contract and transfers the risk is called the ceding company, and the insurance company to which the risk is transferred is called the reinsurer. If the reinsurer in turn transfers all or part of the reinsured risk to another reinsurer, the transaction is called a retro cession. (2) Funds withheld reinsurance and modified coinsurance agreements. In a conventional reinsurance transaction, the ceding company transfers to the reinsur er both the risk of the reinsured business (represented by the reserves) and the assets supporting the reserves. In funds withheld reinsurance and modified co insurance agreements, from a legal title and financial accounting perspective, the ceding company retains the supporting assets (Withheld Assets) as security for the reinsurer’s obligations under the re insurance agreement. See Credit for Re insurance Model Law (MO785), NAIC Model Laws, Regulations, Guidelines, & Other Resources, § 3 (2019). The ceding company records a liability (Withheld As sets Payable) to the reinsurer to reflect the assets it has retained. Under U.S. GAAP and IFRS, the unrealized gains and losses from certain of the Withheld Assets are generally accounted for as part of the ced ing company’s OCI. However, any relat ed change in the Withheld Assets Payable, Bulletin No. 2023–10 525 March 6, 2023 which is generally equal to the unrealized gains and losses included in OCI, is ac counted for as part of the net income or loss of the ceding company, as set forth in the ceding company’s AFS, and is not off set by the unrealized gains and losses that are included in OCI. The reinsurer has a corresponding asset (Withheld Assets Receivable) and the unrealized gains and losses on the Withheld Assets are general ly accounted for as part of the net income or loss of the reinsurer that is set forth on the reinsurer’s AFS. Financial accounting guidance states that the ceding company’s Withheld Assets Payable and the reinsur er’s Withheld Assets Receivable include an embedded derivative. See, for example, FASB ASC paragraphs 8151555107 to 109. The Treasury Department and the IRS understand that, in some circumstances, each of the ceding company and the rein surer may be able to make certain types of “fair value” elections for AFS purpos es to change the accounting treatment of one or more items relevant to its funds withheld reinsurance or modified coinsur ance agreement such that both offsetting items related to the unrealized change in Withheld Assets value run through OCI or both run through the net income or loss set forth on the AFS. For example, under U.S. GAAP, the ceding company may be able to make a “fair value option” election that would move the unrealized gains or losses on certain of the Withheld Assets into the net income or loss set forth on its AFS, which would offset the changes in its Withheld Assets Payable to the rein surer that are reflected in the net income or loss set forth on the ceding company’s AFS. However, such fair value elections may be made only at the time a relevant asset is acquired or when the reinsurance agreement is entered into and also may be undesirable for business reasons. .04 Respecting Congressional “Fresh Start” Basis Rules. (1) Section 177 of the Deficit Re duction Act of 1984 (1984 Act), Public Law 98369, 98 Stat. 494, 709 (1984), amended § 303(d) of the Federal Home Loan Mortgage Corporation Act (then 12 U.S.C. 1452(d)) to repeal the exemp tion “from all taxation now or hereafter imposed by the United States” (includ ing taxation under subtitle A of the Code (subtitle A)) for the Federal Home Loan Mortgage Corporation, effective January 1, 1985. Section 177(d)(2)(A) of the 1984 Act provides special rules for determining the adjusted basis of any asset of the Fed eral Home Loan Mortgage Corporation held on January 1, 1985, for purposes of determining any gain or loss under sub title A. Section 177(d)(2)(B) of the 1984 Act provides special rules for determining the adjusted basis of certain tangible de preciable property held by Federal Home Loan Mortgage Corporation on January 1, 1985. (2) Section 1012(a) of the Tax Reform Act of 1986 (1986 Act), Public Law 99 514, 100 Stat. 2085, 239094 (1986), add ed § 501(m) to the Code, which generally provides that an organization described in § 501(c)(3) or (4) is exempt under § 501(a) from taxation under subtitle A only if no substantial part of its activities consists of providing “commercialtype insurance” (as defined in § 501(m)(3)). As a result of § 1012(a), “existing Blue Cross or Blue Shield organizations” (as defined in § 833(c)(2)) lost their Federal income tax exemption (subtitle A exemp tion). Section 1012(c)(1) provides that the amendments made by § 1012 of the 1986 Act were effective for taxable years begin ning after December 31, 1986. In the case of any existing Blue Cross or Blue Shield organization, § 1012(c)(3) of the 1986 Act provided that for purposes of determining gain or loss under subtitle A, the adjusted basis of any asset held on the first day of its first taxable year beginning after De cember 31, 1986, was treated as equal to the asset’s fair market value on such day. In addition, § 1012(c)(4)(A) and (B) of the 1986 Act provided that the amend ments made by § 1012 of the 1986 Act did not apply to repeal the subtitle A exemp tion with respect to the pension businesses of Mutual of America and the Teachers Insurance Annuity AssociationCollege Retirement Equities Fund (pension busi ness entities). For this purpose, “pension business” was defined as the administra tion of any plan described in § 401(a) that includes a trust exempt from tax under § 501(a), any plan under which amounts are contributed by an individual’s em ployer for an annuity contract described in § 403(b), any individual retirement plan described in § 408, and any eligi ble deferred compensation plan to which § 457(a) applies. (3) Section 1042(a) of the Taxpayer Relief Act of 1997 (1997 Act), Public Law 10534, 111 Stat. 788, 939 (1997), termi nated the subtitle A exemption provided under § 1012(c)(4)(A) and (B) of the 1986 Act for the pension business of each pen sion business entity for any taxable year beginning after December 31, 1997. In the case of a pension business entity that, under § 501(m), became subject to taxa tion under subtitle A solely by reason of § 1042(a) of the 1997 Act, § 1042(b)(2) of the 1997 Act provided that for purposes of determining gain or loss under subtitle A, the adjusted basis of any asset held on the first day of its first taxable year beginning after December 31, 1997, was treated as equal to its fair market value on such day. .05 Additional Defined Terms. For pur poses of this notice: (1) Covered Insurance Company. The term Covered Insurance Company means (i) a company subject to tax under sub chapter L of the Code or (ii) a foreign company that is subject to regulation as an insurance (or reinsurance) company by its home country and is licensed, authorized, or regulated by the applicable insurance regulatory body for its home country to sell insurance, reinsurance or annuity con tracts. (2) Covered Variable Contract. The term Covered Variable Contract means a contract described in section 2.02(1), sec tion 2.02(2)(a), or section 2.02(2)(b) of this notice. (3) Covered Investment Pool. The term Covered Investment Pool means a pool of investment assets designated to support one or more Covered Variable Contracts. (4) Covered Obligations. The term Covered Obligations means the financial accounting liabilities, including contract reserves and claims or benefits payable, that reflect a Covered Insurance Compa ny’s obligations under one or more Cov ered Variable Contracts and are taken into account in determining Net Income. (5) Covered Reinsurance Agreement. The term Covered Reinsurance Agree- ment means a funds withheld reinsurance or modified coinsurance agreement de scribed in section 2.03(2) of this notice and any retrocession of all or part of the risk under such agreement. March 6, 2023 526 Bulletin No. 2023–10 (6) Fresh Start Entity. The term Fresh Start Entity means any formerly taxex empt entity the repeal of whose subtitle A exemption is described in section 2.04(1) through (3) of this notice. (7) Net Income. The term Net Income means the net income or loss as set forth on the AFS. SECTION 3. AFSI ADJUSTMENTS FOR COVERED VARIABLE CONTRACTS .01 Purpose. The Treasury Department and the IRS anticipate that the forthcom ing proposed regulations will be consistent with the guidance provided in this section 3. The Treasury Department and the IRS are providing this interim guidance to as sist taxpayers in determining AFSI with respect to Covered Variable Contracts pri or to the issuance of the forthcoming pro posed regulations. .02 Covered Variable Contracts. (1) AFSI adjustments for Covered Vari- able Contracts. For purposes of determin ing AFSI of a Covered Insurance Compa ny issuing Covered Variable Contracts, to the extent (i) a change in the value of the Covered Investment Pool for such Covered Variable Contract(s) results in a change to the amount of the Covered Insurance Company’s obligations to the holders of such Covered Variable Contract(s) by rea son of law, regulation, or the terms of one or more such Covered Variable Contracts, and (ii) such change in the amount of the obligation is reflected in the Covered Obli gations, then such change in the amount of the Covered Obligations for a taxable year is disregarded to the extent of the § 56A(c) (2) exclusion amount for that taxable year. For purposes of the preceding sentence, the § 56A(c)(2) exclusion amount for Covered Obligations for a taxable year is equal to the amount of financial accounting gains and losses in the Covered Investment Pool for the Covered Variable Contract(s) to which the Covered Obligations relate that is (i) taken into account in Net Income of the Covered Insurance Company for the taxable year and (ii) disregarded under § 56A(c)(2)(C) or (D)(i) for purposes of determining AFSI of the Covered Insur ance Company for that taxable year. (2) Example. The following example illustrates the rule set forth in section 3.02(1) of this notice. (a) Facts. A is a life insurance company subject to tax under subchapter L of the Code and has a tax able year and accounting period that is based on the calendar year. A uses U.S. GAAP to prepare its AFS. On January 1 of Year 1, A issues a variable life insur ance contract (as described in § 817) to an individual, X. A owns assets that support A’s contractual obliga tion to X and holds those assets in a separate account that is segregated from the general asset accounts of A. A accounts for its contractual obligations to X in its Net Income. The separate account assets are stock in unrelated corporations. At the end of Year 1, no assets that support X’s variable contract have been sold, and the fair market value of such assets has increased by $10x. Pursuant to the terms of the variable life insurance contract, the increase in the value of the assets supporting X’s variable contract caused A’s contractual obligation to X to increase by $10x. On A’s AFS, the $10x increase in the value of the assets supporting the variable contract is includ ed in Net Income and offsets the $10x increase in A’s contractual obligation to X (which reduces A’s Net Income). (b) Analysis. A is a Covered Insurance Compa ny as defined in section 2.05(1) of this notice, and the variable life insurance contract that A issued to X is a Covered Variable Contract described in sec tion 2.05(2) of this notice. The assets in the sepa rate account that A holds to support its contractual obligations to X constitute a Covered Investment Pool as described in section 2.05(3) of this notice, and A’s contractual obligation to X is reflected in A’s Covered Obligations as defined in section 2.05(4) of this notice. Pursuant to § 56A(c)(2)(C), although the $10x unrealized gain in the Covered Invest ment Pool is taken into account in Net Income on A’s AFS, it is not included in A’s AFSI because it is not a dividend from another corporation and is not includible in the gross income of A under chapter 1 of the Code. The $10x increase in the Covered Ob ligations is taken into account in Net Income on A’s AFS. Pursuant to section 3.02(1) of this notice, for purposes of determining A’s AFSI, the change in the amount of the Covered Obligations for the taxable year is disregarded to the extent of the § 56A(c)(2) exclusion amount for the taxable year. The relevant § 56A(c)(2) exclusion amount for the taxable year is equal to the $10x unrealized gain in the Covered Investment Pool because such $10x unrealized gain is taken into account in A’s Net Income for the tax able year and is disregarded under § 56A(c)(2)(C) for purposes of determining A’s AFSI for that taxable year. Accordingly, the $10x increase in the Covered Obligations is also disregarded in determining A’s AFSI for the taxable year. Thus, both the unrealized gain and offsetting change in the Covered Obliga tions are disregarded for purposes of determining A’s AFSI, which eliminates what would otherwise be a difference between A’s AFSI and A’s life insurance company taxable income. SECTION 4. AFSI ADJUSTMENTS FOR COVERED REINSURANCE AGREEMENTS .01 Purpose. The Treasury Department and the IRS anticipate that the forthcom ing proposed regulations will be consis tent with the guidance provided in this section 4. The Treasury Department and the IRS are providing this interim guid ance to assist taxpayers in determining AFSI with respect to Covered Reinsur ance Agreements prior to the issuance of the forthcoming proposed regulations. .02 Covered Reinsurance Agreements. (1) Generally. For a Covered Insur ance Company that is a party to a Covered Reinsurance Agreement, the following changes accounted for separately in the AFS with respect to each such agreement are excluded from AFSI: (a) For the ceding company holding the Withheld Assets, changes in Net Income as a result of changes in the amount of the Withheld Assets Payable to the reinsurer that correspond to the unrealized gains and losses in the Withheld Assets to the extent such unrealized gains and losses are not included in AFSI. (b) For the reinsurer, changes in Net In come as a result of changes in the amount of the Withheld Assets Receivable from the ceding company that correspond to the unrealized gains and losses in the With held Assets; provided, however, that such exclusion will be reduced to the extent the reinsurer’s Withheld Assets Receivable is offset and the changes in its Net Income are reduced as a result of accounting for a retrocession of the reinsured risk. (2) Fair value election. The exclusion provided in section 4.02(1) of this notice will not apply to the extent that: (a) the Covered Insurance Company elects to account for one or more items relevant to the Covered Reinsurance Agreement (off setting item) at fair value on its AFS and (b) the election results in changes in the fair value of the Withheld Assets Payable (for the ceding company) or the Withheld Assets Receivable (for the reinsuring company) and changes in the fair value of the offsetting item both being accounted for either through Net Income or through OCI on the AFS of the Covered Insurance Company. (3) Example. The following example illustrates the rules set forth in section 4.02(1) of this notice. (a) Example – Funds Withheld Reinsurance(i) Facts. Each of A and B is a life insurance company subject to tax under subchapter L of the Code and has a taxable and accounting year that is based on the calendar year. Each of A and B uses U.S. GAAP Bulletin No. 2023–10 527 March 6, 2023 for purposes of preparing its AFS. On January 1 of Year 1, A, the ceding company, enters into a funds withheld reinsurance agreement with B, the rein surer. B does not retrocede any risk covered by the funds withheld reinsurance agreement. Pursuant to the terms of the agreement, from a legal title and financial accounting perspective, A retains the as sets supporting the reinsured contracts (the With held Assets). A has a liability to B with respect to the Withheld Assets (the Withheld Assets Payable). A reflects all the unrealized gains and losses in the Withheld Assets in OCI on its AFS, and A accounts for the corresponding changes in the Withheld Assets Payable as part of its Net Income. B records an as set that corresponds to A’s Withheld Assets Payable (the Withheld Assets Receivable), and B accounts for changes in the Withheld Assets Receivable as part of its Net Income. At the end of Year 1, no Withheld Assets have been sold, and the fair market value of the Withheld Assets has increased by $10x. On A’s AFS, it in cludes the $10x unrealized gain in OCI and records the effect of the $10x increase in its Withheld Assets Payable in its Net Income. B records the effect of a corresponding $10x increase in its Withheld Assets Receivable in its Net Income. (ii) Analysis. Each of A and B is a Covered Insur ance Company as defined in section 2.05(1) of this notice. The funds withheld reinsurance contract is a Covered Reinsurance Agreement as defined in sec tion 2.05(5) of this notice. The $10x of unrealized gain in the Withheld Assets is included in OCI on A’s AFS. Pursuant to section 4.02(1)(a) of this notice, to the extent the $10x of unrealized gain is not included in A’s AFSI, the amount included in A’s Net Income as a result of the $10x increase in A’s Withheld As sets Payable is excluded from A’s AFSI. The amount included in B’s Net Income as a result of the $10x increase in B’s Withheld Assets Receivable corresponds to the unrealized gain in the Withheld Assets. Pursuant to section 4.02(1)(b) of this notice, this $10x increase is excluded from B’s AFSI. SECTION 5. AFSI DETERMINATION RESPECTS CONGRESSIONAL “FRESH START” .01 Purpose. The Treasury Department and the IRS anticipate that the forthcom ing proposed regulations will be consistent with the guidance provided in this section 5. The Treasury Department and the IRS are providing this interim guidance to as sist the Fresh Start Entities in applying the CAMT to certain transactions occurring prior to the issuance of the forthcoming proposed regulations. .02 Respecting Congressional “Fresh Start” for Determining AFSI. (1) For purposes of determining AFSI of a Fresh Start Entity described in sec tion 2.04(1) of this notice (and any suc cessor(s) under § 381), the adjusted basis rules provided in § 177(d)(2) of the 1984 Act apply with respect to any asset held by the Fresh Start Entity since January 1, 1985. (2) For purposes of determining AFSI of a Fresh Start Entity described in sec tion 2.04(2) or (3) of this notice (and any successor(s) under § 381), the gain or loss (but not depreciation, amortization, or other amounts) for any asset held by the Fresh Start Entity since the first day of its first taxable year beginning after the test ing date is determined using its adjusted tax basis for such asset. For purposes of the previous sentence, the term testing date means December 31, 1986, in the case of a Fresh Start Entity described in section 2.04(2) of this notice, and Decem ber 31, 1997, in the case of a Fresh Start Entity described in section 2.04(3) of this notice. SECTION 6. APPLICABILITY DATES It is anticipated that the forthcoming proposed regulations will provide that rules consistent with the rules described in sections 3 through 5 of this notice apply for taxable years beginning after Decem ber 31, 2022. Prior to the issuance of the forthcoming proposed regulations, tax payers may rely on the rules in sections 3 through 5 of this notice. SECTION 7. REQUEST FOR COMMENTS .01 Comments Regarding Guidance Provided in this Notice. The Treasury Department and the IRS request com ments on any questions arising from the interim guidance set forth in this notice. Commenters are encouraged to specify the issues on which additional guidance (including additional interim guidance) is needed most quickly, as well as the most important issues on which guidance is needed. In addition to general comments regarding the provisions of this notice, the Treasury Department and the IRS request comments to address the following specif ic questions: (1) AFSI adjustments for variable con- tracts and similar contracts (section 3 of the notice). (a) Should a rule similar to that in sec tion 3.02 of this notice apply to any con tracts other than those described in sec tions 2.02(1), 2.02(2)(a), and 2.02(2)(b) of this notice? (b) Can the result of the rule in section 3.02(1) of this notice be achieved in a more easily administered manner? (c) In what situations and for what rea sons would assets be transferred between a Covered Investment Pool and a Covered Insurance Company’s general account? Should there be additional adjustments beyond those described in this notice with respect to such assets? (2) AFSI adjustments for covered rein- surance agreements (section 4 of the no- tice). (a) Does the notice accurately describe the financial accounting for funds with held reinsurance and modified coinsur ance agreements? Does the rule described in section 4.02(1) of this notice adequately address the issue? (b) Should the definition of Covered Reinsurance Agreement in section 2.05(5) of this notice be revised or expanded? (c) Would it be useful to more specif ically describe the fair value elections available under U.S. GAAP and IFRS? If so, how should the elections be de scribed? (d) Does the rule in section 4.02(2) of this notice appropriately adjust the rule in section 4.02(1) of this notice when fair value elections are made? (e) Should the rule in section 4.02(1) of this notice reference the “embedded derivative”? If so, how should such rule reference the embedded derivative, and how should “embedded derivative” be defined? (3) Respecting “fresh start” for deter- mining AFSI (section 5 of the notice). (a) Are there other formerly taxex empt entities the repeal of whose subtitle A exemption was associated with special statutory “fresh start” basis rules similar to those applicable to any Fresh Start En tity? (b) Should a rule similar to that in sec tion 5.02 of this notice apply to any other entities? .02 Procedures for Submitting Com- ments. (1) Deadline. Written comments should be submitted by April 3, 2023. Consid eration will be given, however, to any written comment submitted after April 3, March 6, 2023 528 Bulletin No. 2023–10 2023, if such consideration will not delay the issuance of the forthcoming proposed regulations. (2) Form and manner. The subject line for the comments should include a refer ence to Notice 202320. All commenters are strongly encouraged to submit com ments electronically. However, comments may be submitted in one of two ways: (a) Electronically via the Federal eRulemaking Portal at www.regulations. gov (type IRS20230005 in the search field on the regulations.gov homepage to find this notice and submit comments); or (b) By mail to: Internal Revenue Ser vice, CC:PA:LPD:PR (Notice 202320), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, D.C., 20044. (3) Publication of comments. The Trea sury Department and the IRS will publish for public availability any comment sub mitted electronically and on paper to its public docket on regulations.gov. SECTION 8. DRAFTING AND CONTACT INFORMATION The principal author of this notice is Ian Follansbee of the Office of the Asso ciate Chief Counsel (Financial Institutions and Products). Other personnel from the Treasury Department and the IRS par ticipated in its development. For further information regarding this notice, please contact Mr. Follansbee at 3123688238 (not a tollfree number). Bulletin No. 2023–10 i March 6, 2023 Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplified describes a situation where no change is being made in a prior pub lished position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle ap plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarified is used in those instances where the language in a prior ruling is be ing made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior rul ing is being changed. Distinguished describes a situation where a ruling mentions a previously pub lished ruling and points out an essential difference between them. Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above). Obsoleted describes a previously pub lished ruling that is not considered deter minative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the sub stance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previous ly published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded. Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rul ings in the series. Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cas es in litigation, or the outcome of a Ser vice study. Abbreviations The following abbreviations in current use and formerly used will appear in material published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI —City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. DC—Dummy Corporation. DE—Donee. Del. Order—Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE—Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. March 6, 2023 ii Bulletin No. 2023–10 Numerical Finding List 1 Bulletin 2023–10 Announcements: 20232, 20232 I.R.B. 344 20231, 20233 I.R.B. 422 20233, 20235 I.R.B. 447 20234, 20237 I.R.B. 470 20235, 20239 I.R.B. 499 20236, 20239 I.R.B. 501 AOD: 20231, 202310 I.R.B. 502 Notices: 20234, 20232 I.R.B. 321 20235, 20232 I.R.B. 324 20236, 20232 I.R.B. 328 20238, 20232 I.R.B. 341 20231, 20233 I.R.B. 373 20232, 20233 I.R.B. 374 20233, 20233 I.R.B. 388 20237, 20233 I.R.B. 390 20239, 20233 I.R.B. 402 202310, 20233 I.R.B. 403 202311, 20233 I.R.B. 404 202312, 20236 I.R.B. 450 202313, 20236 I.R.B. 454 202316, 20238 I.R.B. 479 202317, 202310 I.R.B. 505 202318, 202310 I.R.B. 508 202320, 202310 I.R.B. 523 Proposed Regulations: REG10044222, 20233 I.R.B. 423 REG14653706, 20233 I.R.B. 436 REG11466622, 20234 I.R.B. 437 Revenue Procedures: 20231, 20231 I.R.B. 1 20232, 20231 I.R.B. 120 20233, 20231 I.R.B. 144 20234, 20231 I.R.B. 162 20235, 20231 I.R.B. 265 20237, 20231 I.R.B. 305 20238, 20233 I.R.B. 407 202310, 20233 I.R.B. 411 202311, 20233 I.R.B. 417 202314, 20236 I.R.B. 466 20239, 20237 I.R.B. 471 Revenue Rulings: 20231, 20232 I.R.B. 309 20233, 20236 I.R.B. 448 20234, 20239 I.R.B. 480 20235, 202310 I.R.B. 503 Treasury Decisions: 9970, 20232 I.R.B. 311 9771, 20233 I.R.B. 346 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin 2022–52, dated December 27, 2022. Bulletin No. 2023–10 iii March 6, 2023 Finding List of Current Actions on Previously Published Items 1 Bulletin 2023–10 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin 2022–52, dated December 27, 2022. Internal Revenue Service Washington, DC 20224 Official Business Penalty for Private Use, $300 INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR6230 Washington, DC 20224.
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