Bulletin No. 2024–16

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Bulletin No. 2024–16

April 15, 2024

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

Announcement 2024-16, page 909.

This Announcement is issued pursuant to § 521(b) of Pub. L.

106-170, the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the Secretary of the Treasury to report annually to the public concerning advance pricing agreements (APAs) and the Advance Pricing and Mutual

Agreement Program (APMA Program), formerly known as the

Advance Pricing Agreement Program (APA Program). This

twenty-fifth report describes the experience, structure, and

activities of the APMA Program during calendar year 2023.

REG-117542-22, page 942.

This Notice of Proposed Rulemaking revises the regulations

pertaining to the advance notice to be provided to taxpayers prior to IRS contact with third parties to conform to the

new statutory language of section 7602(c) enacted as part

of the Taxpayer First Act of 2019 (TFA), Public Law 116-25

(133 Stat. 981). The proposed regulations also provide, pursuant to the Secretary’s authority in section 7602(c)(1)(B),

exceptions to the 45-day advance notice requirement where

delaying contact with third parties for 45 days after providing

notice to the taxpayer would impair tax administration.

INCOME TAX

Announcement 2024-17, page 932.

REG-101552-24, 2024-13 I.R.B. 741 (March 25, 2024)

contains errors in the second sentence of the second

column on page 743 and in the first sentence of the

third column on page 746. These sentences incorrectly

describe the requirement that members in an unincorporated organization reserve the right separately to take

in kind or dispose of their pro rata shares of electricity

produced, extracted or used, or any associated renewable energy credits or similar credits. This requirement

was intended to be conjunctive, applying to both elec-

Finding Lists begin on page ii.

tricity and associated credits. The sentence on page

743 is corrected to read, “Second, the unincorporated

organization’s members must enter into a joint operating

agreement with respect to the applicable credit property

in which the members reserve the right separately to take

in kind or dispose of their pro rata shares of the electricity

produced, extracted, or used, and any associated renewable energy credits or similar credits.” The sentence on

page 746 is corrected to read, “(B) The members of which

enter into a joint operating agreement in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced,

extracted, or used, and any associated renewable energy

credits or similar credits”.

Notice 2024-30, page 878.

This notice modifies Notice 2023-29, 2023-29 I.R.B. 1

(July 17, 2023), clarified by Notice 2023-45, 2023-29

I.R.B. 317 (July 17, 2023), by expanding the Nameplate

Capacity Attribution Rule under section 4.02(1)(b) of

Notice 2023-29 to include additional attribution property

and by adding two 2017 North American Industry Classification System (NAICS) industry codes to the table in section 3.03(2) of Notice 2023-29 for purposes of determining the Fossil Fuel Employment rate (as defined in section

3.03(2) of Notice 2023-29).

Notice 2024-32, page 897.

This notice provides guidance for qualified student loan

bonds to clarify certain requirements for tax-exempt

bond financing for loan programs of general application

approved by a State under § 144(b)(1)(B) (State Supplemental Loan programs). Specifically, this notice addresses

eligibility of borrowers of loans through State Supplemental Loan programs and the loan size limitation for State

Supplemental Loans. This notice also provides guidance

on whether an issue of State or local bonds the proceeds

of which are used to finance or refinance qualified student

loans or to finance qualified mortgage loans is a refunding

issue.

REG-108761-22, page 933.

This Notice of Proposed Rulemaking (NPRM) would add a

new regulation section promulgated under section 6011

of the Code to establish that Charitable Remainder Annuity Trust (CRAT) transactions described in the NPRM are

listed transactions for purposes of Treasury Regulation §

1.6011-4 and sections 6111 and 6112. The transaction

at issue is one in which taxpayers purport to eliminate recognition of ordinary income and/or capital gain on appreciated property contributed to a CRAT when the CRAT sells

that property and purchases a single premium immediate

annuity (SPIA). Taxpayers misapply the rules governing

CRAT’s upon the sale of the appreciated property by the

CRAT and also misapply the rules concerning the SPIA by

treating the beneficiaries as the owners of the SPIA, rather

than it being an asset of the CRAT funding the annuity payments from the trust.

Rev. Proc. 2024-19, page 899.

The Department of the Treasury (Treasury Department) and

the Internal Revenue Service (IRS) are issuing this revenue

procedure to provide the process under § 48(e) of the Inter-

nal Revenue Code to apply for an allocation of environmental

justice solar and wind capacity limitation (Capacity Limitation)

as part of the low-income communities bonus credit program

(Program) for the 2024 Program year. Additionally, this revenue procedure describes how the Capacity Limitation for

the 2024 Program year will be divided across the facility

categories described in §§ 48(e)(2)(A)(iii) and 1.48(e)-1(b)(2),

the Category 1 sub-reservation described in § 1.48(e)-1(i)

(1), and the additional selection criteria application options

described in § 1.48(e)-1(h). Receipt of an allocation of Capacity Limitation increases the amount of an energy investment

credit determined under § 48(a) for the taxable year in which

certain solar and wind-powered electricity generation facilities are placed in service.

Rev. Rul. 2024-8, page 877.

Fringe benefits aircraft valuation formula. For purposes of

section 1.61-21(g) of the Income Tax Regulations, relating

to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level

(SIFL) cents-per-mile rates and terminal charge in effect

for the first half of 2024 are set forth.

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and

enforce the law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform 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 otherwise indicated. Procedures relating solely to matters of internal 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 rulings to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature are

deleted to prevent unwarranted invasions of privacy and to

comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the

force and effect of Treasury Department Regulations, but they

may be used as precedents. Unpublished rulings will not be

relied on, used, or cited as precedents by Service personnel in

the disposition of other cases. In applying published rulings and

procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,

and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless

the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—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, disbarment 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.

April 15, 2024

Bulletin No. 2024–16

Part I

Section 61.—Gross Income

Defined

26 CFR 1.61-21: Taxation of Fringe Benefit

Rev. Rul. 2024-08

For purposes of the taxation of fringe

benefits under section 61 of the Internal Revenue Code, section 1.61-21(g)

of the Income Tax Regulations provides a rule for valuing noncommercial

flights on employer-provided aircraft.

Section 1.61-21(g)(5) provides an aircraft valuation formula to determine

the value of such flights. The value of a

flight is determined under the base aircraft valuation formula (also known as

the Standard Industry Fare Level formula or SIFL) by multiplying the SIFL

cents-per-mile rates applicable for the

Period During Which

Terminal Charge

the Flight Is Taken

1/1/24 - 6/30/24

$55.05

DRAFTING INFORMATION

The principal author of this revenue ruling is Kathleen Edmondson of the Office

Bulletin No. 2024–16

of Associate Chief Counsel (Employee

Benefits, Exempt Organizations and

Employment Taxes). For further information regarding this revenue ruling, contact

877

period during which the flight was

taken by the appropriate aircraft multiple provided in section 1.61-21(g)(7)

and then adding the applicable terminal

charge. The SIFL cents-per-mile rates

in the formula and the terminal charge

are calculated by the Department of

Transportation (DOT) and are reviewed

semi-annually.

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

SIFL Mileage Rates

Up to 500 miles

= $.3012 per mile

501-1500 miles

= $.2296 per mile

Over 1500 miles

= $.2208 per mile

Ms. Edmondson at (202) 317-6798 (not a

toll-free number).

April 15, 2024

Part III

Energy Community Bonus

Credit Amounts Under the

Inflation Reduction Act of

2022

Notice 2024-30

SECTION 1. PURPOSE

This notice modifies Notice 202329, 2023-29 I.R.B. 1 (July 17, 2023),

clarified by Notice 2023-45, 2023-29

I.R.B. 317 (July 17, 2023), by expanding the Nameplate Capacity Attribution

Rule under section 4.02(1)(b) of Notice

2023-29 to include additional attribution

property and by adding two 2017 North

American Industry Classification System (NAICS) industry codes to the table

in section 3.03(2) of Notice 2023-29 for

purposes of determining the Fossil Fuel

Employment rate (as defined in section

3.03(2) of Notice 2023-29). These modifications are set forth in section 3 of this

notice.

SECTION 2. BACKGROUND

.01 In General. Public Law 117-169,

136 Stat. 1818 (August 16, 2022), commonly known as the Inflation Reduction

Act of 2022 (IRA), amended §§ 45 and

48 of the Internal Revenue Code (Code)1

to provide increased credit amounts or

rates if certain requirements pertaining

to energy communities are satisfied, and

added new §§ 45Y and 48E, which provide increased credit amounts or rates

for certain qualified facilities, energy

projects, or energy storage technologies

that satisfy similar requirements and that

are placed in service after December 31,

2024.2

Notice 2023-29 describes certain

rules that the Department of the Treasury

(Treasury Department) and the Internal

Revenue Service (IRS) intend to include

in forthcoming proposed regulations for

determining what constitutes an energy

community, as defined in § 45(b)(11)(B)

and as adopted by §§ 45Y(g)(7), 48(a)

(14), and 48E(a)(3)(A), and for determining whether a qualified facility, an energy

project, or energy storage technology is

located in an energy community. Notice

2023-29 also provides that the Treasury

Department and the IRS intend to propose

that the forthcoming proposed regulations

will apply to taxable years ending after

April 4, 2023. Taxpayers may rely on the

rules described in sections 3 through 6 of

Notice 2023-29 until the proposed regulations are published.

Sections 45(b)(11), 48(a)(14), 45Y(g)

(7), and 48E(a)(3)(A) provide the

requirements that taxpayers must satisfy

to qualify EC Projects (defined in section 2 of Notice 2023-29) for increased

energy community bonus credit amounts

or rates under those provisions of the

Code. Section 2 of Notice 2023-29 provides that the term “EC Project” refers

to: (1) a qualified facility eligible for a

credit determined under § 45 or determined under § 45Y that is located in an

energy community; (2) an energy project

eligible for a credit determined under

§ 48, which may include qualified property for which a taxpayer has made a

valid irrevocable election under § 48(a)

(5) to treat such qualified property as

energy property under § 48, that is placed

in service within an energy community;

or (3) a qualified investment with respect

to a qualified facility or energy storage

technology eligible for a credit determined under § 48E that is placed in service within an energy community.

Section 45(b)(11)(B) identifies three

location-based categories of energy communities for purposes of §§ 45, 45Y, 48,

and 48E, described in Notice 2023-29

as the Brownfield Category, the Statistical Area Category, and the Coal Closure

Category. The Statistical Area Category

includes a metropolitan statistical area

(MSA) or non-metropolitan statistical

area (non-MSA) that (1) has (or had at any

time after December 31, 2009) 0.17 percent or greater direct employment (Fossil

Fuel Employment) or 25 percent or greater

local tax revenues (Fossil Fuel Tax Revenue) related to the extraction, processing,

transport, or storage of coal, oil, or natural

gas (as determined by the Secretary of the

Treasury or her delegate (Secretary)); and

(2) has an unemployment rate at or above

the national average unemployment rate

for the previous year (as determined by

the Secretary).

Section 4 of Notice 2023-29 provides

generally applicable rules for determining whether a qualified facility is located

in an energy community under §§ 45 or

45Y, and under §§ 48 and 48E, whether

an energy project, qualified facility, or

energy storage technology, as applicable, is placed in service within an energy

community. Section 4.02 of Notice

2023-29 provides that an EC Project is

treated as located in or placed in service

within an energy community if it satisfies either the Nameplate Capacity Test

under section 4.02(1) of that notice or

the Footprint Test under section 4.02(2)

of that notice.

.02 The Nameplate Capacity Attribution Rule. Under the Nameplate Capacity

Test, an EC Project that has nameplate

capacity is considered located in or placed

in service within an energy community

if 50 percent or more of the EC Project’s

nameplate capacity is in an area that qualifies as an energy community. The Nameplate Capacity Test includes a Nameplate

Capacity Attribution Rule (described in

section 4.02(1)(b) of Notice 2023-29).

The Nameplate Capacity Attribution Rule

provides that if an EC Project with offshore energy generation units has nameplate capacity but none of the EC Project’s

energy-generating units are in a census

tract, MSA, or non-MSA, then the Nameplate Capacity Test for such EC Project is

applied by attributing all the nameplate

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

See § 13101(g) of the IRA for the energy community provisions under § 45(b)(11), § 13102(o) of the IRA for the energy community provisions under § 48(a)(14), § 13701(a) of the IRA for

the energy community provisions under § 45Y(g)(7), and § 13702(a) of the IRA for the energy community provisions under § 48E(a)(3)(A).

April 15, 2024

878

Bulletin No. 2024–16

capacity of such EC Project to the landbased power conditioning equipment that

conditions energy generated by the EC

Project for transmission, distribution, or

use and that is closest to the point of interconnection. Section 3.01 of this notice

expands the Nameplate Capacity Attribution Rule to include additional attribution

property.

.03 NAICS codes used for determining

the Fossil Fuel Employment rate. Section 3.03(2) of Notice 2023-29 provides

that for purposes of determining whether

an MSA or non-MSA is in the Statistical Area Category based on Fossil Fuel

Employment, the relevant direct employment is determined by the number of people employed in the industries identified

by the 2017 NAICS industry codes listed

in the table in section 3.03(2) of Notice

2023-29. The Fossil Fuel Employment

rate is determined as the number of people employed in the industries identified by the 2017 NAICS codes specified

in the table and as listed in the annual

County Files of the County Business

Patterns (CBP) published by the Census

Bureau, divided by the total number of

people employed in that area. The Fossil

Fuel Employment and total employment

for each county in an MSA or non-MSA

is aggregated for each year to determine

whether the MSA or non-MSA meets the

Fossil Fuel Employment threshold of

0.17 percent. Section 3.02 of this notice

modifies the Fossil Fuel Employment

rate determination by adding two NAICS

codes to the table provided in section

3.03(2) of Notice 2023-29.

2017 NAICS code

211

2121

213111

213112

213113

2212

23712

32411

4861

4862

Bulletin No. 2024–16

SECTION 3. MODIFICATION OF

NOTICE 2023-29

.01 Modification of the Nameplate

Capacity Attribution Rule. Section 4.02(1)

(b) of Notice 2023-29 is modified to read

as follows:

(b) Nameplate Capacity Attribution Rule. If an EC Project with offshore energy generation units has

nameplate capacity but none of the

EC Project’s energy-generating units

are in a census tract, MSA, or nonMSA, then the Nameplate Capacity

Test for such EC Project is applied by

attributing all the nameplate capacity

of such EC Project to: (i) any landbased power conditioning equipment

that conditions energy generated by

the EC Project for transmission, distribution, or use before the energy

is transmitted to the point of interconnection (or in the case of an EC

Project with multiple points of interconnection, any land-based power

conditioning equipment that conditions energy generated by the EC

Project for transmission, distribution,

or use before the energy is transmitted

to one of the multiple points of interconnection); or (ii) any EC Project

supervisory control and data acquisition (SCADA) equipment located

in an EC Project Port. EC Project

SCADA equipment is property owned

by the taxpayer that owns the EC

Project and is used to remotely monitor and control the EC Project’s operations. An EC Project Port is defined

as a port used either full or part-time

to facilitate maritime operations necessary for the installation or operation and maintenance of the EC Project, and with a significant long-term

relationship with the EC Project at

which staff employed by, or working

as independent contractors for, the

taxpayer that owns the EC Project are

based and perform functions essential

to the EC Project’s operations. A port

will be considered to have a significant long-term relationship with the

EC Project only if the taxpayer that

owns the EC Project owns (in whole

or in part) or leases (in whole or in

part) under a lease agreement with a

term of at least 10 years, the port in

which the EC Project SCADA equipment is located. Staff employed by, or

working as independent contractors

for, the taxpayer that owns the EC

Project will be considered based in

an EC Project Port to perform functions essential to the EC Project’s

operations only if the staff perform

(collectively, if not individually) all

of the following functions: management of marine operations, inventory

and handling of spare parts and consumables, and berthing and dispatch

of operation and maintenance vessels

and associated crews and technicians.

.02 Modification of the Fossil Fuel

Employment rate determination by the

addition of two NAICS codes.

(1) The table in section 3.03(2) of

Notice 2023-29 is modified to read as follows (new codes in bold):

Description

Oil and Gas Extraction

Coal Mining

Drilling Oil and Gas Wells

Support Activities for Oil and Gas Operations

Support Activities for Coal Mining

Natural Gas Distribution

Oil and Gas Pipeline and Related Structures Construction

Petroleum Refineries

Pipeline Transportation of Crude Oil

Pipeline Transportation of Natural Gas

879

April 15, 2024

(2) Appendix B to Notice 2023-29

provided the list of MSAs and nonMSAs that meet the Fossil Fuel Employment threshold described in § 45(b)(11)

(B)(ii)(I) and section 3.03(2) of Notice

2023-29. Appendix 1 to this notice is a

list of additional MSAs and non-MSAs

that meet the Fossil Fuel Employment

threshold described in Notice 2023-29

after including the two additional NAICS

codes. Appendix 1 to this notice, Appendix B to Notice 2023-29, and Appendix

1 to Notice 2023-47 together provide

the full list of MSAs and non-MSAs that

meet the Fossil Fuel Employment threshold applicable to the period beginning on

January 1, 2023.

(3) Appendix 2 to Notice 2023-47 is

a list of MSAs and non-MSAs that qualify as energy communities because they

meet the Fossil Fuel Employment threshold and have an unemployment rate at

or above the national average unemployment rate for calendar year 2022

as described in § 45(b)(11)(B)(ii)(II)

April 15, 2024

and section 3.03(3) of Notice 2023-29.

Appendix 2 to this notice is a list of additional MSAs and non-MSAs that qualify

as energy communities after including

the two additional NAICS codes. Appendix 2 to this notice and Appendix 2 of

Notice 2023-47 together provide the full

list of energy communities in the Statistical Area Category for the period beginning on January 1, 2023. As provided in

section 3.03(3) of Notice 2023-29, the

energy community status for the MSAs

and non-MSAs listed in Appendix 2 of

Notice 2023-47 and Appendix 2 of this

notice is effective as of January 1, 2023,

and that status will continue until the list

is updated based on unemployment rates

for calendar year 2023.

SECTION 4. APPLICABILITY DATE

Until the proposed regulations are

published, taxpayers may rely on the

rules described in sections 3 through 6 of

Notice 2023-29, as previously clarified by

880

Notice 2023-45 and modified by section 3

this notice, for taxable years ending after

April 4, 2023.

SECTION 5. EFFECT ON OTHER

DOCUMENTS

Notice 2023-29 is modified as provided in section 3 of this notice. Except

as provided in section 3 of this notice, this

notice does not otherwise affect the guidance provided in Notice 2023-29.

SECTION 6. DRAFTING

INFORMATION

The principal author of this notice

is the Office of Associate Chief Counsel (Passthroughs & Special Industries).

However, other personnel from the Treasury Department and the IRS participated

in its development. For further information regarding this notice, call the energy

security guidance contact number at (202)

317-5254 (not a toll-free number).

Bulletin No. 2024–16

Appendix 1: Additional MSAs and non-MSAs that meet the Fossil Fuel Employment threshold that were not included in

Appendix B to Notice 2023-29

State FIPS

Code

County FIPS

Code

State Name

MSA or

non-MSA

Code

11500

100002

43420

22380

46060

39140

22220

38220

26300

38220

MSA or non-MSA Name

Alabama

Arizona

Arkansas

County or

County-Equivalent

Entity Name

Calhoun County

Chambers County

Cherokee County

Clay County

Cleburne County

Coosa County

DeKalb County

Jackson County

Marshall County

Randolph County

Talladega County

Tallapoosa County

Cochise County

Coconino County

Pima County

Yavapai County

Benton County

Cleveland County

Garland County

Jefferson County

015

017

019

027

029

037

049

071

095

111

121

123

003

005

019

025

007

025

051

069

079

081

087

091

143

003

Arkansas

California

Lincoln County

Little River County

Madison County

Miller County

Washington County

Alpine County

38220

45500

22220

45500

22220

600006

005

California

Amador County

600006

009

California

Calaveras County

600006

011

California

Colusa County

600007

021

California

Glenn County

600007

027

California

Inyo County

600006

035

California

Lassen County

600007

043

California

Mariposa County

600006

Pine Bluff, AR

Texarkana, TX-AR

Fayetteville-Springdale-Rogers, AR-MO

Texarkana, TX-AR

Fayetteville-Springdale-Rogers, AR-MO

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

North Valley-Northern Mountains Region of

California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

North Valley-Northern Mountains Region of

California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Bulletin No. 2024–16

881

Anniston-Oxford-Jacksonville, AL

Northeast Alabama nonmetropolitan area

Sierra Vista-Douglas, AZ

Flagstaff, AZ

Tucson, AZ

Prescott, AZ

Fayetteville-Springdale-Rogers, AR-MO

Pine Bluff, AR

Hot Springs, AR

Pine Bluff, AR

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

049

California

051

California

055

057

California

063

California

065

071

073

091

California

093

California

103

California

105

California

107

109

California

013

009

015

003

Colorado

Connecticut

Delaware

001

027

033

039

041

043

049

051

065

073

087

093

113

129

013

015

035

Florida

Georgia

April 15, 2024

County or

County-Equivalent

Entity Name

Modoc County

MSA or

MSA or non-MSA Name

non-MSA

Code

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Mono County

600006

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Napa County

34900

Napa, CA

Nevada County

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Plumas County

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Riverside County

40140

Riverside-San Bernardino-Ontario, CA

San Bernardino County 40140

Riverside-San Bernardino-Ontario, CA

San Diego County

41740

San Diego-Carlsbad, CA

Sierra County

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Siskiyou County

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Tehama County

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Trinity County

600007

North Valley-Northern Mountains Region of

California nonmetropolitan area

Tulare County

47300

Visalia-Porterville, CA

Tuolumne County

600006

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Boulder County

14500

Boulder, CO

New Haven County

35300

New Haven-Milford, CT

Windham County

49340

Worcester, MA-CT

New Castle County

37980

Philadelphia-Camden-Wilmington, PA-NJDE-MD

Alachua County

23540

Gainesville, FL

DeSoto County

1200003

South Florida nonmetropolitan area

Escambia County

37860

Pensacola-Ferry Pass-Brent, FL

Gadsden County

45220

Tallahassee, FL

Gilchrist County

23540

Gainesville, FL

Glades County

1200003

South Florida nonmetropolitan area

Hardee County

1200003

South Florida nonmetropolitan area

Hendry County

1200003

South Florida nonmetropolitan area

Jefferson County

45220

Tallahassee, FL

Leon County

45220

Tallahassee, FL

Monroe County

1200003

South Florida nonmetropolitan area

Okeechobee County

1200003

South Florida nonmetropolitan area

Santa Rosa County

37860

Pensacola-Ferry Pass-Brent, FL

Wakulla County

45220

Tallahassee, FL

Barrow County

12060

Atlanta-Sandy Springs-Roswell, GA

Bartow County

12060

Atlanta-Sandy Springs-Roswell, GA

Butts County

12060

Atlanta-Sandy Springs-Roswell, GA

882

Bulletin No. 2024–16

State FIPS

Code

County FIPS

Code

State Name

045

057

059

063

067

077

085

089

097

113

115

117

121

135

143

149

151

159

171

195

Georgia

199

211

217

219

221

223

227

231

247

255

297

001

015

027

045

073

005

011

013

015

027

031

037

Georgia

Idaho

Illinois

Bulletin No. 2024–16

County or

County-Equivalent

Entity Name

Carroll County

Cherokee County

Clarke County

Clayton County

Cobb County

Coweta County

Dawson County

DeKalb County

Douglas County

Fayette County

Floyd County

Forsyth County

Fulton County

Gwinnett County

Haralson County

Heard County

Henry County

Jasper County

Lamar County

Madison County

MSA or

non-MSA

Code

12060

12020

12060

40660

12060

12020

MSA or non-MSA Name

Meriwether County

Morgan County

Newton County

Oconee County

Oglethorpe County

Paulding County

Pickens County

Pike County

Rockdale County

Spalding County

Walton County

Ada County

Boise County

Canyon County

Gem County

Owyhee County

Bond County

Bureau County

Calhoun County

Carroll County

Clinton County

Cook County

12060

12020

12060

14260

41180

1700001

41180

1700001

41180

16980

Atlanta-Sandy Springs-Roswell, GA

Athens-Clarke County, GA

Atlanta-Sandy Springs-Roswell, GA

Boise City, ID

St. Louis, MO-IL

Northwest Illinois nonmetropolitan area

St. Louis, MO-IL

Northwest Illinois nonmetropolitan area

St. Louis, MO-IL

Chicago-Naperville-Elgin, IL-IN-WI

DeKalb County

16980

Chicago-Naperville-Elgin, IL-IN-WI

883

Atlanta-Sandy Springs-Roswell, GA

Athens-Clarke County, GA

Atlanta-Sandy Springs-Roswell, GA

Rome, GA

Atlanta-Sandy Springs-Roswell, GA

Athens-Clarke County, GA

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

043

063

083

085

089

091

093

097

099

103

111

115

117

119

133

141

155

163

177

195

Illinois

197

009

023

031

041

045

047

053

065

073

075

089

107

111

121

127

135

139

159

171

177

061

045

Illinois

Indiana

Iowa

Kansas

April 15, 2024

County or

County-Equivalent

Entity Name

DuPage County

Grundy County

Jersey County

Jo Daviess County

Kane County

Kankakee County

Kendall County

Lake County

LaSalle County

Lee County

McHenry County

Macon County

Macoupin County

Madison County

Monroe County

Ogle County

Putnam County

St. Clair County

Stephenson County

Whiteside County

MSA or

non-MSA

Code

16980

41180

1700001

16980

28100

16980

1700001

16980

19500

41180

1700001

41180

1700001

MSA or non-MSA Name

Will County

Blackford County

Clinton County

Decatur County

Fayette County

Fountain County

Franklin County

Grant County

Henry County

Jasper County

Jay County

Lake County

Montgomery County

Newton County

Parke County

Porter County

Randolph County

Rush County

Tipton County

Warren County

Wayne County

Dubuque County

16980

1800002

16980

1800002

16980

1800002

16980

1800002

16980

1800002

20220

Chicago-Naperville-Elgin, IL-IN-WI

Central Indiana nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Central Indiana nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Central Indiana nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Central Indiana nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Central Indiana nonmetropolitan area

Dubuque, IA

Douglas County

29940

Lawrence, KS

884

Chicago-Naperville-Elgin, IL-IN-WI

St. Louis, MO-IL

Northwest Illinois nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Kankakee, IL

Chicago-Naperville-Elgin, IL-IN-WI

Northwest Illinois nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Decatur, IL

St. Louis, MO-IL

Northwest Illinois nonmetropolitan area

St. Louis, MO-IL

Northwest Illinois nonmetropolitan area

Bulletin No. 2024–16

State FIPS

Code

County FIPS

Code

State Name

Kansas

Kentucky

Maine

Maryland

County or

County-Equivalent

Entity Name

Johnson County

Leavenworth County

Linn County

Miami County

Wyandotte County

Hardin County

Larue County

Meade County

Androscoggin County

Cecil County

MSA or

non-MSA

Code

28140

21060

30340

37980

091

103

107

121

209

093

123

163

001

015

001

003

007

011

019

027

087

093

099

115

Massachusetts

Michigan

Barnstable County

Berkshire County

Dukes County

Franklin County

Nantucket County

Worcester County

Lapeer County

Livingston County

Macomb County

Monroe County

12700

38340

2500006

49340

19820

33780

Kansas City, MO-KS

Elizabethtown-Fort Knox, KY

Lewiston-Auburn, ME

Philadelphia-Camden-Wilmington, PA-NJDE-MD

Barnstable Town, MA

Pittsfield, MA

Massachusetts nonmetropolitan area

Worcester, MA-CT

Detroit-Warren-Dearborn, MI

Monroe, MI

125

147

161

163

003

005

007

011

019

021

023

025

029

033

035

037

041

051

053

057

059

063

Michigan

Minnesota

Oakland County

St. Clair County

Washtenaw County

Wayne County

Anoka County

Becker County

Beltrami County

Big Stone County

Carver County

Cass County

Chippewa County

Chisago County

Clearwater County

Cottonwood County

Crow Wing County

Dakota County

Douglas County

Grant County

Hennepin County

Hubbard County

Isanti County

Jackson County

19820

11460

19820

33460

2700001

2700003

33460

2700001

2700003

33460

2700001

2700003

2700001

33460

2700001

33460

2700001

33460

2700003

Detroit-Warren-Dearborn, MI

Ann Arbor, MI

Detroit-Warren-Dearborn, MI

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Southwest Minnesota nonmetropolitan area

Bulletin No. 2024–16

885

MSA or non-MSA Name

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

067

069

073

077

Minnesota

079

081

083

085

087

089

093

095

097

101

105

107

111

113

117

121

Minnesota

123

125

127

129

133

135

139

141

143

149

151

153

155

159

163

167

171

173

Minnesota

001

005

007

Missouri

April 15, 2024

County or

County-Equivalent

Entity Name

Kandiyohi County

Kittson County

Lac qui Parle County

Lake of the Woods

County

Le Sueur County

Lincoln County

Lyon County

McLeod County

Mahnomen County

Marshall County

Meeker County

Mille Lacs County

Morrison County

Murray County

Nobles County

Norman County

Otter Tail County

Pennington County

Pipestone County

Pope County

MSA or

non-MSA

Code

2700003

2700001

2700003

2700001

MSA or non-MSA Name

33460

2700003

2700001

2700003

33460

2700001

2700003

2700001

2700003

2700001

Minneapolis-St. Paul-Bloomington, MN-WI

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Ramsey County

Red Lake County

Redwood County

Renville County

Rock County

Roseau County

Scott County

Sherburne County

Sibley County

Stevens County

Swift County

Todd County

Traverse County

Wadena County

Washington County

Wilkin County

Wright County

Yellow Medicine

County

Adair County

Atchison County

Audrain County

33460

2700001

2700003

2700001

33460

2700001

2700003

2700001

33460

2700001

33460

2700003

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Northwest Minnesota nonmetropolitan area

Minneapolis-St. Paul-Bloomington, MN-WI

Southwest Minnesota nonmetropolitan area

2900002

North Missouri nonmetropolitan area

886

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Southwest Minnesota nonmetropolitan area

Northwest Minnesota nonmetropolitan area

Bulletin No. 2024–16

State FIPS

Code

County FIPS

Code

State Name

009

011

013

025

033

037

039

041

045

047

049

057

061

071

075

079

081

087

095

097

Missouri

099

103

107

109

111

113

115

117

119

121

127

129

137

139

145

147

163

165

171

173

175

177

183

Missouri

Bulletin No. 2024–16

County or

County-Equivalent

Entity Name

Barry County

Barton County

Bates County

Caldwell County

Carroll County

Cass County

Cedar County

Chariton County

Clark County

Clay County

Clinton County

Dade County

Daviess County

Franklin County

Gentry County

Grundy County

Harrison County

Holt County

Jackson County

Jasper County

MSA or

non-MSA

Code

2900004

28140

2900002

28140

2900004

2900002

28140

2900004

2900002

41180

2900002

28140

27900

MSA or non-MSA Name

Jefferson County

Knox County

Lafayette County

Lawrence County

Lewis County

Lincoln County

Linn County

Livingston County

McDonald County

Macon County

Marion County

Mercer County

Monroe County

Montgomery County

Newton County

Nodaway County

Pike County

Platte County

Putnam County

Ralls County

Randolph County

Ray County

41180

2900002

28140

2900004

2900002

41180

2900002

22220

2900002

27900

2900002

28140

2900002

28140

St. Louis, MO-IL

North Missouri nonmetropolitan area

Kansas City, MO-KS

Southwest Missouri nonmetropolitan area

North Missouri nonmetropolitan area

St. Louis, MO-IL

North Missouri nonmetropolitan area

Fayetteville-Springdale-Rogers, AR-MO

North Missouri nonmetropolitan area

Joplin, MO

North Missouri nonmetropolitan area

Kansas City, MO-KS

North Missouri nonmetropolitan area

Kansas City, MO-KS

St. Charles County

41180

St. Louis, MO-IL

887

Southwest Missouri nonmetropolitan area

Kansas City, MO-KS

North Missouri nonmetropolitan area

Kansas City, MO-KS

Southwest Missouri nonmetropolitan area

North Missouri nonmetropolitan area

Kansas City, MO-KS

Southwest Missouri nonmetropolitan area

North Missouri nonmetropolitan area

St. Louis, MO-IL

North Missouri nonmetropolitan area

Kansas City, MO-KS

Joplin, MO

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

MSA or

non-MSA

Code

41180

2900002

2900004

2900002

2900004

41180

2900002

41180

3000003

MSA or non-MSA Name

Montana

County or

County-Equivalent

Entity Name

St. Louis County

Schuyler County

Scotland County

Shelby County

Stone County

Sullivan County

Taney County

Vernon County

Warren County

Worth County

St. Louis city

Beaverhead County

Broadwater County

Deer Lodge County

Gallatin County

Granite County

Jefferson County

Lewis and Clark

County

Madison County

Meagher County

189

197

199

205

209

211

213

217

219

227

510

001

007

023

031

039

043

049

Missouri

Montana

057

059

3000003

Southwest Montana nonmetropolitan area

067

077

093

097

079

081

093

121

003

510

001

005

Montana

Nebraska

Nevada

New Jersey

Park County

Powell County

Silver Bow County

Sweet Grass County

Hall County

Hamilton County

Howard County

Merrick County

Clark County

Carson City

Atlantic County

Burlington County

3000003

24260

29820

16180

12100

37980

007

New Jersey

Camden County

37980

015

New Jersey

Gloucester County

37980

033

New Jersey

Salem County

37980

001

043

057

061

New Mexico

Bernalillo County

Sandoval County

Torrance County

Valencia County

10740

Southwest Montana nonmetropolitan area

Grand Island, NE

Las Vegas-Henderson-Paradise, NV

Carson City, NV

Atlantic City-Hammonton, NJ

Philadelphia-Camden-Wilmington, PA-NJDE-MD

Albuquerque, NM

April 15, 2024

888

St. Louis, MO-IL

North Missouri nonmetropolitan area

Southwest Missouri nonmetropolitan area

North Missouri nonmetropolitan area

Southwest Missouri nonmetropolitan area

St. Louis, MO-IL

North Missouri nonmetropolitan area

St. Louis, MO-IL

Southwest Montana nonmetropolitan area

Bulletin No. 2024–16

State FIPS

Code

County FIPS

Code

State Name

007

029

063

107

049

065

081

103

127

137

151

157

003

005

019

021

027

031

039

045

New York

North Carolina

North Dakota

047

051

063

067

071

073

077

079

081

091

093

095

097

099

103

041

045

049

073

089

097

117

127

North Dakota

Ohio

Bulletin No. 2024–16

County or

County-Equivalent

Entity Name

Broome County

Erie County

Niagara County

Tioga County

Craven County

Edgecombe County

Guilford County

Jones County

Nash County

Pamlico County

Randolph County

Rockingham County

Barnes County

Benson County

Cavalier County

Dickey County

Eddy County

Foster County

Griggs County

LaMoure County

MSA or

non-MSA

Code

13780

15380

13780

35100

40580

24660

35100

40580

35100

24660

3800007

MSA or non-MSA Name

Logan County

McIntosh County

Nelson County

Pembina County

Ramsey County

Ransom County

Richland County

Rolette County

Sargent County

Steele County

Stutsman County

Towner County

Traill County

Walsh County

Wells County

Delaware County

Fairfield County

Franklin County

Hocking County

Licking County

Madison County

Morrow County

3800007

18140

East North Dakota nonmetropolitan area

Columbus, OH

Perry County

18140

Columbus, OH

889

Binghamton, NY

Buffalo-Cheektowaga-Niagara Falls, NY

Binghamton, NY

New Bern, NC

Rocky Mount, NC

Greensboro-High Point, NC

New Bern, NC

Rocky Mount, NC

New Bern, NC

Greensboro-High Point, NC

East North Dakota nonmetropolitan area

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

Ohio

Oklahoma

Oregon

Pennsylvania

County or

County-Equivalent

Entity Name

Pickaway County

Portage County

Summit County

Union County

Comanche County

Cotton County

Clackamas County

Columbia County

Jackson County

Multnomah County

Washington County

Yamhill County

Berks County

Bucks County

MSA or

non-MSA

Code

18140

10420

18140

30020

38900

32780

38900

39740

37980

129

133

153

159

031

033

005

009

029

051

067

071

011

017

029

Pennsylvania

Chester County

37980

037

041

043

045

Pennsylvania

Columbia County

Cumberland County

Dauphin County

Delaware County

14100

25420

37980

049

Pennsylvania

Erie County

091

Pennsylvania

Montgomery County

21500

37980

093

099

101

Pennsylvania

Montour County

Perry County

Philadelphia County

14100

25420

37980

133

017

039

055

063

079

081

037

145

309

007

015

033

036

041

Pennsylvania

South Carolina

Texas

Virginia

York County

Calhoun County

Fairfield County

Kershaw County

Lexington County

Richland County

Saluda County

Bowie County

Falls County

McLennan County

Amelia County

Augusta County

Caroline County

Charles City County

Chesterfield County

49620

17900

45500

47380

40060

44420

40060

April 15, 2024

890

MSA or non-MSA Name

Columbus, OH

Akron, OH

Columbus, OH

Lawton, OK

Portland-Vancouver-Hillsboro, OR-WA

Medford, OR

Portland-Vancouver-Hillsboro, OR-WA

Reading, PA

Philadelphia-Camden-Wilmington, PA-NJDE-MD

Bloomsburg-Berwick, PA

Harrisburg-Carlisle, PA

Philadelphia-Camden-Wilmington, PA-NJDE-MD

Erie, PA

Philadelphia-Camden-Wilmington, PA-NJDE-MD

Bloomsburg-Berwick, PA

Harrisburg-Carlisle, PA

Philadelphia-Camden-Wilmington, PA-NJDE-MD

York-Hanover, PA

Columbia, SC

Texarkana, TX-AR

Waco, TX

Richmond, VA

Staunton-Waynesboro, VA

Richmond, VA

Bulletin No. 2024–16

State FIPS

Code

County FIPS

Code

State Name

MSA or

non-MSA

Code

40060

44420

28420

38900

31020

28420

38900

MSA or non-MSA Name

Virginia

Washington

County or

County-Equivalent

Entity Name

Dinwiddie County

Goochland County

Hanover County

Henrico County

King William County

New Kent County

Powhatan County

Prince George County

Sussex County

Colonial Heights city

Hopewell city

Petersburg city

Richmond city

Staunton city

Waynesboro city

Benton County

Clark County

Cowlitz County

Franklin County

Skamania County

053

075

085

087

101

127

145

149

183

570

670

730

760

790

820

005

011

015

021

059

009

017

027

Wisconsin

Brown County

Chippewa County

Dodge County

24580

20740

5500003

035

043

Wisconsin

Eau Claire County

Grant County

20740

5500003

047

Wisconsin

Green Lake County

5500003

055

Wisconsin

Jefferson County

5500003

059

061

065

Wisconsin

Kenosha County

Kewaunee County

Lafayette County

16980

24580

5500003

077

Wisconsin

Marquette County

5500003

079

083

089

093

103

Wisconsin

Milwaukee County

Oconto County

Ozaukee County

Pierce County

Richland County

33340

24580

33340

33460

5500003

109

Wisconsin

St. Croix County

33460

Green Bay, WI

Eau Claire, WI

South Central Wisconsin nonmetropolitan

area

Eau Claire, WI

South Central Wisconsin nonmetropolitan

area

South Central Wisconsin nonmetropolitan

area

South Central Wisconsin nonmetropolitan

area

Chicago-Naperville-Elgin, IL-IN-WI

Green Bay, WI

South Central Wisconsin nonmetropolitan

area

South Central Wisconsin nonmetropolitan

area

Milwaukee-Waukesha-West Allis, WI

Green Bay, WI

Milwaukee-Waukesha-West Allis, WI

Minneapolis-St. Paul-Bloomington, MN-WI

South Central Wisconsin nonmetropolitan

area

Minneapolis-St. Paul-Bloomington, MN-WI

Bulletin No. 2024–16

891

Richmond, VA

Staunton-Waynesboro, VA

Kennewick-Richland, WA

Portland-Vancouver-Hillsboro, OR-WA

Longview, WA

Kennewick-Richland, WA

Portland-Vancouver-Hillsboro, OR-WA

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

111

Wisconsin

County or

County-Equivalent

Entity Name

Sauk County

127

Wisconsin

Walworth County

131

133

135

Wisconsin

Washington County

Waukesha County

Waupaca County

137

Wisconsin

Waushara County

April 15, 2024

892

MSA or

MSA or non-MSA Name

non-MSA

Code

5500003

South Central Wisconsin nonmetropolitan

area

5500003

South Central Wisconsin nonmetropolitan

area

33340

Milwaukee-Waukesha-West Allis, WI

33340

Milwaukee-Waukesha-West Allis, WI

5500003

South Central Wisconsin nonmetropolitan

area

5500003

South Central Wisconsin nonmetropolitan

area

Bulletin No. 2024–16

Appendix 2: Additional MSAs and non-MSAs that qualify as energy communities in 2023 by meeting the Fossil Fuel

Employment threshold and the unemployment rate requirement for calendar year 2022 that were not included in Appendix

2 to Notice 2023-47

State FIPS

Code

County FIPS

Code

State Name

Arizona

Arkansas

California

County or

County-Equivalent

Entity Name

Cochise County

Coconino County

Pima County

Cleveland County

Garland County

Jefferson County

Lincoln County

Little River County

Miller County

Alpine County

MSA or

non- MSA

Code

43420

22380

46060

38220

26300

38220

45500

600006

003

005

019

025

051

069

079

081

091

003

005

California

Amador County

600006

009

California

Calaveras County

600006

011

California

Colusa County

600007

021

California

Glenn County

600007

027

California

Inyo County

600006

035

California

Lassen County

600007

043

California

Mariposa County

600006

049

California

Modoc County

600007

051

California

Mono County

600006

057

California

Nevada County

600007

063

California

Plumas County

600007

065

071

California

40140

091

California

Riverside County

San Bernardino

County

Sierra County

600007

093

California

Siskiyou County

600007

103

California

Tehama County

600007

Bulletin No. 2024–16

893

MSA or non-MSA Name

Sierra Vista-Douglas, AZ

Flagstaff, AZ

Tucson, AZ

Pine Bluff, AR

Hot Springs, AR

Pine Bluff, AR

Texarkana, TX-AR

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

Riverside-San Bernardino-Ontario, CA

North Valley-Northern Mountains Region

of California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

North Valley-Northern Mountains Region

of California nonmetropolitan area

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

105

California

County or

County-Equivalent

Entity Name

Trinity County

107

109

California

Tulare County

Tuolumne County

009

015

003

Connecticut

Delaware

New Haven County

Windham County

New Castle County

011

015

031

037

043

063

085

089

091

093

097

099

103

111

Illinois

Bureau County

Carroll County

Cook County

DeKalb County

DuPage County

Grundy County

Jo Daviess County

Kane County

Kankakee County

Kendall County

Lake County

LaSalle County

Lee County

MSA or

MSA or non-MSA Name

non- MSA

Code

600007

North Valley-Northern Mountains Region

of California nonmetropolitan area

47300

Visalia-Porterville, CA

600006

Eastern Sierra-Mother Lode Region of

California nonmetropolitan area

35300

New Haven-Milford, CT

49340

Worcester, MA-CT

37980

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

1700001

Northwest Illinois nonmetropolitan area

1700001

Northwest Illinois nonmetropolitan area

16980

Chicago-Naperville-Elgin, IL-IN-WI

16980

Chicago-Naperville-Elgin, IL-IN-WI

16980

Chicago-Naperville-Elgin, IL-IN-WI

16980

Chicago-Naperville-Elgin, IL-IN-WI

1700001

Northwest Illinois nonmetropolitan area

16980

Chicago-Naperville-Elgin, IL-IN-WI

28100

Kankakee, IL

16980

Chicago-Naperville-Elgin, IL-IN-WI

16980

Chicago-Naperville-Elgin, IL-IN-WI

1700001

Northwest Illinois nonmetropolitan area

1700001

Northwest Illinois nonmetropolitan area

115

141

155

177

195

197

073

089

111

127

093

123

163

015

Illinois

Indiana

Kentucky

Maryland

McHenry County

Macon County

Ogle County

Putnam County

Stephenson County

Whiteside County

Will County

Jasper County

Lake County

Newton County

Porter County

Hardin County

Larue County

Meade County

Cecil County

16980

19500

1700001

16980

21060

37980

001

003

007

011

019

Massachusetts

Barnstable County

Berkshire County

Dukes County

Franklin County

Nantucket County

12700

38340

2500006

April 15, 2024

894

Chicago-Naperville-Elgin, IL-IN-WI

Decatur, IL

Northwest Illinois nonmetropolitan area

Chicago-Naperville-Elgin, IL-IN-WI

Elizabethtown-Fort Knox, KY

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

Barnstable Town, MA

Pittsfield, MA

Massachusetts nonmetropolitan area

Bulletin No. 2024–16

State FIPS

Code

County FIPS

Code

State Name

Massachusetts

Michigan

Nevada

New Jersey

County or

County-Equivalent

Entity Name

Worcester County

Lapeer County

Livingston County

Macomb County

Monroe County

Oakland County

St. Clair County

Wayne County

Clark County

Carson City

Atlantic County

Burlington County

MSA or

non- MSA

Code

49340

19820

33780

19820

29820

16180

12100

37980

027

087

093

099

115

125

147

163

003

510

001

005

007

New Jersey

Camden County

37980

015

New Jersey

Gloucester County

37980

033

New Jersey

Salem County

37980

001

043

057

061

007

New Mexico

Bernalillo County

Sandoval County

Torrance County

Valencia County

10740

107

049

065

081

103

127

137

151

157

133

153

005

009

029

051

067

071

011

017

New York

North Carolina

Ohio

Oregon

Pennsylvania

Broome County

Tioga County

Craven County

Edgecombe County

Guilford County

Jones County

Nash County

Pamlico County

Randolph County

Rockingham County

Portage County

Summit County

Clackamas County

Columbia County

Jackson County

Multnomah County

Washington County

Yamhill County

Berks County

Bucks County

13780

35100

40580

24660

35100

40580

35100

24660

10420

38900

32780

38900

39740

37980

Bulletin No. 2024–16

895

MSA or non-MSA Name

Worcester, MA-CT

Detroit-Warren-Dearborn, MI

Monroe, MI

Detroit-Warren-Dearborn, MI

Las Vegas-Henderson-Paradise, NV

Carson City, NV

Atlantic City-Hammonton, NJ

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

Albuquerque, NM

Binghamton, NY

New Bern, NC

Rocky Mount, NC

Greensboro-High Point, NC

New Bern, NC

Rocky Mount, NC

New Bern, NC

Greensboro-High Point, NC

Akron, OH

Portland-Vancouver-Hillsboro, OR-WA

Medford, OR

Portland-Vancouver-Hillsboro, OR-WA

Reading, PA

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

April 15, 2024

State FIPS

Code

County FIPS

Code

State Name

029

Pennsylvania

County or

County-Equivalent

Entity Name

Chester County

037

041

043

045

Pennsylvania

Columbia County

Cumberland County

Dauphin County

Delaware County

049

091

Pennsylvania

Erie County

Montgomery County

093

099

101

Pennsylvania

Montour County

Perry County

Philadelphia County

133

037

005

011

015

021

059

Pennsylvania

Texas

Washington

Wisconsin

York County

Bowie County

Benton County

Clark County

Cowlitz County

Franklin County

Skamania County

Kenosha County

April 15, 2024

896

MSA or

MSA or non-MSA Name

non- MSA

Code

37980

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

14100

Bloomsburg-Berwick, PA

25420

Harrisburg-Carlisle, PA

25420

Harrisburg-Carlisle, PA

37980

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

21500

Erie, PA

37980

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

14100

Bloomsburg-Berwick, PA

25420

Harrisburg-Carlisle, PA

37980

Philadelphia-Camden-Wilmington,

PA-NJ-DE-MD

49620

York-Hanover, PA

45500

Texarkana, TX-AR

28420

Kennewick-Richland, WA

38900

Portland-Vancouver-Hillsboro, OR-WA

31020

Longview, WA

28420

Kennewick-Richland, WA

38900

Portland-Vancouver-Hillsboro, OR-WA

16980

Chicago-Naperville-Elgin, IL-IN-WI

Bulletin No. 2024–16

Qualified Student Loan and

Qualified Mortgage Bonds

Notice 2024-32

SECTION 1. PURPOSE

This notice provides guidance regarding qualified student loan bonds under

§ 144(b) of the Internal Revenue Code

(Code)1 to clarify certain requirements for

tax-exempt bond financing for loan programs of general application approved by

a State under § 144(b)(1)(B) (State Supplemental Loan programs). Specifically,

this notice addresses eligibility of borrowers of loans through State Supplemental

Loan programs and the loan size limitation for State Supplemental Loans. This

notice also provides guidance regarding

whether an issue of State or local bonds

the proceeds of which are used to finance

or refinance qualified student loans (as

defined in § 1.150-1(b)) or to finance

qualified mortgage loans (as defined in

§ 1.150-1(b)) is a refunding issue.

SECTION 2. BACKGROUND

Section 144(b)(1) defines a “qualified

student loan bond” for which tax-exempt

private activity bonds may be issued to

mean any bond issued as part of an issue

the applicable percentage or more of

the net proceeds of which are to be used

directly or indirectly to make or finance

student loans (that is, loans to pay the

costs of postsecondary education) under

two types of loan programs.

The first type of loan program,

described in § 144(b)(1)(A), is the Federal

Family Education Loan Program (FFELP)

under the Higher Education Act of 1965,

Pub. L. No. 89-329, 79 Stat. 1219 (Higher

Education Act), under which education

loans are indirectly Federally guaranteed. The FFELP loans that are eligible

for tax-exempt bond financing under

§ 144(b)(1)(A) include, among other

types of loans, loans made to parents of

undergraduate students under the program

known as the “PLUS” loan program. H.R.

Conf. Rep. No. 99-841, at II-712 (1986);

Sen. Rep. No. 99-313, at 842 (1986). The

FFELP guarantee authority extends only

to loans originated before July 1, 2010,

and was discontinued for loans originated

on or after that date. Health Care and Education Reconciliation Act of 2010, Pub. L.

No. 111-152, § 2201, 124 Stat. 1029, 1074

(2010).

The second type of loan program,

described in § 144(b)(1)(B), is for State

Supplemental Loans. Section 144(b)(1)

(B) describes a State Supplemental Loan

program as a program of general application approved by the State if no loan

under such program exceeds the difference between (1) the total cost of attendance and (2) subject to certain stated

exceptions, the other forms of student

assistance for which the student borrower

may be eligible. A program is not treated

as described in § 144(b)(1)(B) if such program is described in § 144(b)(1)(A).

.01 Eligible borrower.

Notice 2015-78, 2015-48 I.R.B. 690,

provides guidance regarding qualified

student loan bonds, including the use

of the proceeds of these bonds to make

loans that refinance qualified student

loans (refinancing loans). Section 3.1

of Notice 2015-78 provides that an eligible borrower of an original loan under

a State Supplemental Loan program is a

student (with or without a co-obligor or

guarantor) or a parent (with or without

a co-obligor or guarantor) borrowing on

behalf of a child who is a student. Section

3.1 of Notice 2015-78 further provides

that an eligible borrower of a refinancing

loan under a State Supplemental Loan

program is the student or parent borrower

of the original loan.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) are aware of questions

that have arisen as to whether, if the student was the original borrower, the parent

of that student is an eligible borrower of a

refinancing loan, and similarly, if the parent was the original borrower, whether the

student on whose behalf the original loan

was made is an eligible borrower of a refinancing loan. Section 4.01 of this notice

clarifies that an eligible borrower of a refinancing loan includes either of these parties, regardless of which was the original

borrower.

.02 Loan size limitation.

Notice 2015-78 also addresses the

loan size limitation for a State Supplemental Loan. The amount of an original

State Supplemental Loan must not exceed

the difference between the total cost of

attendance and other forms of student

assistance for which the student may be

eligible. Section 3.3 of Notice 2015-78

provides, for an original loan, that an

issuer may rely on a certification of these

amounts by the higher education institution at which the student is enrolled. For

a refinancing loan, section 3.3 of Notice

2015-78 provides that (1) the original loan

must have met the loan size limitation

under § 144(b)(1)(B) and (2) the stated

principal amount of the refinancing loan

may not exceed the sum of the refinanced

loan’s outstanding stated principal amount

and any accrued but unpaid stated interest

as of the date of the refinancing.

The Treasury Department and IRS are

aware of issuers’ questions about how to

establish, for purposes of a refinancing

loan, that the original loan met the loan

size limitation under § 144(b)(1)(B) and

issuers’ concerns regarding the attendant

administrative burden. Refinancing loans

generally are sought after the students

have finished their educations, and several

years may have passed since the higher

education institutions provided the information needed to determine the original

loan amounts. Often, however, the original loans were made under the FFELP,

another loan program under Title IV of

the Higher Education Act, a State Supplemental Loan program, or other student

loan program subject to the same loan size

limitation as in § 144(b)(1)(B) or a stricter

one. Section 4.02 of this notice provides

that original loans made under these programs will be treated as meeting the loan

size limitation under § 144(b)(1)(B). Section 4.02 of this notice also provides issuers with sources that can be used to ascertain the amounts of (1) the original loan,

(2) the student’s total cost of attendance,

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

Bulletin No. 2024–16

897

April 15, 2024

and (3) other forms of student assistance

for this purpose.

.03 Refunding bonds.

Section 1.150-1 provides definitions for all purposes of §§ 103 and 141

through 150, which are applicable to

tax-exempt bonds. Section 1.150-1(d)

(1) defines a “refunding issue” generally

to mean an issue of obligations the proceeds of which are used to pay principal,

interest, or redemption price on another

issue, provided the obligor on both issues

is the same person or a related party (as

defined in § 1.150-1(b)). For this purpose,

if proceeds are used to finance a purpose

investment (as defined in § 1.148-1(b)),

the obligor means the conduit borrower

of the purpose investment rather than the

actual issuer of the bonds, except that, for

qualified mortgage loans, qualified student

loans, and similar program investments (as

defined in § 1.148-1(b)), the obligor does

not include the ultimate recipients of the

loans (for example, the homeowner or the

student). Section 1.150-1(d)(2)(iii) provides, with one exception, that the actual

issuer’s use of the proceeds of an issue

that refunds a purpose investment determines whether that issue is also a refunding of the issue that originally financed the

purpose investment. Section 1.150-1 does

not provide a definition of “proceeds” for

this purpose.

Questions have arisen regarding the

determination of whether an issue that is

used to refinance qualified student loans

is a refunding issue. Issuers are concerned

that if the borrowers of the refinancing

loans repay their original loans and the

issuer then uses the funds to redeem the

bonds that financed the original loans, the

bonds might be treated as refunding bonds

and, given that this redemption would

frequently occur more than 90 days after

the issuance of the bonds financing the

refinancing loans, potentially treated as

taxable advance refunding bonds. If this

were the case, issuers would be prevented

from issuing tax-exempt bonds to refinance the qualified student loans of their

existing borrowers. Another question

concerns whether the use of investment

proceeds from the repayments of qualified

student loans or qualified mortgage loans

allocated to one issue to redeem bonds

of another issue, a practice sometimes

referred to as “cross-calling,” results in

April 15, 2024

bonds of the former issue being treated

as taxable advance refunding bonds. An

issuer engaged in cross-calling first uses

proceeds of the issue to make qualified student loans or qualified mortgage

loans and then uses the repayments of the

loans to redeem bonds, generally selecting bonds with the highest interest rates.

Section 4.03 of this notice addresses these

questions.

SECTION 3. SCOPE

Sections 4.01 and 4.02 of this notice

apply for purposes of the requirements

applicable to State Supplemental Loan

programs financed with qualified student

loan bonds under § 144(b). Section 4.03

of this notice applies to qualified student

loan bonds under § 144(b) and qualified

mortgage bonds under § 143.

SECTION 4. APPLICATION

.01 Eligible borrower. An eligible

borrower of a refinancing loan under

a State Supplemental Loan program

includes the student or parent borrower

of the original loan. An eligible borrower

of a refinancing loan under a State Supplemental Loan program also includes

a parent of the student borrower of an

original loan (or a refinancing loan) and

a child of a parent who borrowed an

original loan (or a refinancing loan) on

the child’s behalf.

.02 Loan size limitation.

(1) For purposes of establishing that

the original loan to be refinanced met the

loan size limitation under § 144(b)(1)(B),

the original loan will be treated as having

met the loan size limitation under § 144(b)

(1)(B) if–

(a) The original loan was made under

a student loan program that applied the

same loan size limitation as in § 144(b)

(1)(B) or a stricter one during the period

when the original loan was made; for

example, the FFELP and other loan

programs under Title IV of the Higher

Education Act and State Supplemental

Loan programs (as described in § 144(b)

(1)(B)), whether or not financed with

tax-exempt bonds; or

(b) The previous lender, other holder,

or loan servicer of the original loan certifies that the original loan amount did not

898

exceed the difference between the total

cost of attendance and other forms of student assistance as reported on the original

loan application.

(2) In addition, to establish that the

original loan to be refinanced met the loan

size limitation under § 144(b)(1)(B), an

issuer may rely on—

(a) The amount of the original loan as

stated on the promissory note for the original loan or as otherwise provided by the

previous lender, other holder, or loan servicer of the original loan; and

(b) The amounts of the student’s total

cost of attendance and other forms of student assistance for the academic period

for which the original loan was made—

(i) As reported on the original loan

application and provided by either (A) the

previous lender, other holder, or loan servicer of the original loan; or (B) the educational institution the student attended

for the academic period of the original

loan, or

(ii) As stated in the student’s financial

aid award letter that is from the educational institution the student attended

for the academic period and includes the

amount of the original loan.

.03 Refunding bonds. An issue is not

a refunding issue to the extent that the

actual issuer reasonably expects as of the

issue date of the issue to use net proceeds

of the issue within two years of the issue

date to refinance one or more obligations

that are qualified student loans. For purposes of determining whether an issue is

a refunding issue, proceeds means any

sales proceeds, investments proceeds,

or transferred proceeds (all as defined in

§ 1.148-1(b)), except that proceeds does

not include investment proceeds (or transferred proceeds allocable to investment

proceeds) received from investing in a

qualified student loan or a qualified mortgage loan.

SECTION 5. EFFECT ON OTHER

DOCUMENTS

Sections 4.01 and 4.02 of this notice

amplify Notice 2015-78.

SECTION 6. EFFECTIVE DATE

This notice applies to bonds sold on or

after April 15, 2024. An issuer may apply

Bulletin No. 2024–16

this notice to bonds sold before April 15,

2024.

SECTION 7. DRAFTING

INFORMATION

The principal author of this notice

is Johanna Som de Cerff of the Office

of Associate Chief Counsel (Financial

Institutions & Products). For further

information regarding this notice contact Jason Deirmenjian or Johanna Som

de Cerff at (202) 317-6980 (not a tollfree number).

26 CFR 601.201: Rulings and determination

letters.

Rev. Proc. 2024-19

SECTION 1. PURPOSE

This revenue procedure provides

the process under § 48(e) of the Internal Revenue Code (Code)1 to apply

for an allocation of environmental justice solar and wind capacity limitation

(Capacity Limitation) as part of the

low-income communities bonus credit

program (Program) for 2024 (2024

Program year). Solely with respect to

the 2024 Program year, this revenue

procedure supersedes Rev. Proc. 202327, 2023-35 I.R.B. 655, and provides

important clarifying changes to the

application, documentation, and lottery procedures that apply to the 2024

Program year. In addition, this revenue

procedure describes how the Capacity Limitation for the 2024 Program

year will be divided across the facility categories described in §§ 48(e)(2)

(A)(iii) and 1.48(e)-1(b)(2), the Category 1 sub-reservations described in

§ 1.48(e)-1(i)(1), and the additional

selection criteria application options

described in § 1.48(e)-1(h). Receipt of

an allocation increases the amount of

an energy investment credit determined

under § 48(a) (§ 48 credit) for the taxable year in which certain solar and

wind-powered electricity generation

facilities are placed in service.

SECTION 2. BACKGROUND

.01 Section 13103 of Public Law

117–169, 136 Stat. 1818, 1921 (August

16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), added

new § 48(e) to the Code. Section 48(e)

increases the amount of the § 48 credit

with respect to eligible property that is

part of a qualified solar or wind facility

that is awarded an allocation of Capacity

Limitation as part of the Program. The

§ 48 credit for a taxable year is generally calculated by multiplying the basis

of each energy property placed in service

during that taxable year by the energy percentage (as defined in § 48(a)(2)). Section

48(e) increases the § 48 credit by increasing the energy percentage used to calculate the amount of the § 48 credit (§ 48(e)

Increase) in the case of qualified solar and

wind facilities that receive an allocation of

Capacity Limitation.

.02 Section 48(e)(4) directs the Secretary of the Treasury or her delegate to

establish a program, within 180 days of

enactment of the IRA, to allocate amounts

of Capacity Limitation to qualified solar

and wind facilities. Notice 2023–17,

2023–10 I.R.B. 505, established the Program and provided definitions and other

guidance related to the Program. On June

1, 2023, the Department of the Treasury

(Treasury Department) and the Internal

Revenue Service (IRS) published in the

Federal Register (88 FR 35791) a notice

of proposed rulemaking (REG-11041223, 2023-26 I.R.B. 1098) under § 48(e)

(Proposed Rules) relating to the Program.

On August 15, 2023, Treasury Decision

9979 was published in the Federal Register (88 FR 55506) to adopt the Proposed

Rules with modifications as final regulations codified at § 1.48(e)-1 (Final Regulations).

.03 On August 28, 2023, the Treasury

Department and the IRS published Rev.

Proc. 2023-27, which provided guidance

necessary to implement the Program for

2023 (2023 Program year), including

the information an applicant must submit to apply for a Capacity Limitation

allocation, the application review process, the manner of obtaining a Capacity Limitation allocation from the IRS,

and the procedures and documentation

requirements for reporting that a facility was placed in service. This revenue

procedure supersedes Rev. Proc. 2023-27

solely with respect to the 2024 Program

year and provides guidance necessary to

implement the Program for the 2024 Program year. The procedures for the 2024

Program year provided in this revenue

procedure generally follow those provided in Rev. Proc. 2023-27 with certain

clarifying changes to the application and

documentation requirements described in

more detail in sections 3 through 13 of

this revenue procedure.

SECTION 3. CAPACITY

LIMITATION AVAILABLE FOR

ALLOCATION

.01 The amount of Capacity Limitation for the 2024 Program year available

for allocation through the application

process provided in this revenue procedure is limited to the annual Capacity Limitation of 1.8 gigawatts of direct

current capacity plus any unallocated

Capacity Limitation carried over from

the 2023 Program year. If any such

Capacity Limitation from the 2023 Program year is carried over to the 2024

Program year, the Treasury Department

and the IRS will announce the distribution of that Capacity Limitation.

.02 As provided in § 1.48(e)-1(g), the

annual Capacity Limitation available

for allocation is divided across the four

facility categories described in §§ 48(e)

(2)(A)(iii) and 1.48(e)-1(b)(2). For the

2024 Program year, the Treasury Department and the IRS plan to distribute the

annual Capacity Limitation of 1.8 gigawatts of direct current capacity as shown

in Table 1. As described in § 1.48(e)-1(g),

the Treasury Department and the IRS

may later reallocate Capacity Limitation

across facility categories in the event any

category is oversubscribed or has excess

capacity.

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

Bulletin No. 2024–16

899

April 15, 2024

Table 1

Category 1: Located in a Low-Income Community

Category 2: Located on Indian Land

Category 3: Qualified Low-Income Residential Building Project

Category 4: Qualified Low-Income Economic Benefit Project

SECTION 4. CATEGORY 1

SUB-RESERVATIONS

As provided in § 1.48(e)-1(i)(1), Category 1 Capacity Limitation is subdivided

for each Program year, with a specific

sub-reservation for eligible residential behind the meter (BTM) facilities.

Accordingly, the 600 megawatts of Capacity Limitation for Category 1 facilities

will be subdivided for facilities seeking

a Category 1 allocation with 400 megawatts of Capacity Limitation reserved

specifically for eligible residential BTM

facilities described in § 1.48(e)-1(i)(2)

(ii), including rooftop solar. The remaining 200 megawatts of Capacity Limitation

distributed to Category 1 is available for

applicants with front of the meter (FTM)

facilities described in § 1.48(e)-1(i)(2)

(iii) as well as non-residential BTM

facilities that meet the requirements of

§ 1.48(e)-1(i)(2)(i).

SECTION 5. APPLICATION

.01 In general. An applicant (described

in section 6 of this revenue procedure)

must apply for an allocation of Capacity

Limitation through Department of Energy’s (DOE) online Program portal system

(Portal), available at https://eco.energy.

gov/ejbonus/s/. The application must

contain all information, documentation,

and attestations specified in section 7 of

this revenue procedure and any additional

information required by DOE’s publicly

available written procedures.

.02 Selection of the appropriate category or sub-reservation. Applicants must

submit applications for a particular facility category described in § 1.48(e)-1(b)(2)

(that is, Category 1 Facility, Category 2

Facility, Category 3 Facility, or Category

4 Facility). If the applicant is applying in

Category 1, the applicant must also select

the appropriate Category 1 sub-reservation described in § 1.48(e)-1(i) (that is,

eligible residential BTM or other facilities

April 15, 2024

located in low-income communities). In

addition, applicants must select the appropriate application option (for example,

additional selection criteria, if applicable)

within the facility category or Category 1

sub-reservation to which they are applying. DOE will not move applications to a

different facility category or Category 1

sub-reservation.

.03 One application for the 2024 Program year. Applicants may only submit

one application per facility for the 2024

Program year. If, after submitting an

application for a facility, the applicant

decides that it would rather have the facility considered for an allocation under a

different facility category or Category 1

sub-reservation, the applicant must withdraw the first application and submit a

second application under the other facility category or Category 1 sub-reservation. If DOE identifies that an applicant

has submitted more than one application

for a facility (and the applicant has not

withdrawn a previously submitted application(s)), any application submitted after

the first submitted application will be considered a duplicate application and will be

treated as withdrawn.

.04 Opening and closing dates of 2024

Program year application period. The Treasury Department and the IRS will publicly

announce the opening and closing dates for

the 2024 Program year application period

on DOE’s landing page for the Program

(Program Homepage), available at https://

www.energy.gov/justice/low-incomecommunities-bonus-credit-program. DOE

will not accept new application submissions for the 2024 Program year after 11:59

PM ET on the date the application period

closes.

SECTION 6. APPLICANT

.01 In general. The owner of the solar

or wind facility is the person who must

apply for an allocation of Capacity Limitation. If the facility is determined to

900

600 megawatts

200 megawatts

800 megawatts

be eligible for an allocation, and there is

Capacity Limitation available to allocate,

the owner of the facility is the recipient of

the allocation of Capacity Limitation.

.02 Disregarded entities. If a qualified solar or wind facility is owned by an

entity that is disregarded as separate from

its owner for federal income tax purposes,

the owner of the disregarded entity is the

owner of the facility and is the applicant.

.03 Partnerships and S corporations. If

a qualified solar or wind facility is owned

by a partnership or S corporation, then the

partnership or S corporation, and not its

partners or shareholders, is the owner of

the facility and is the applicant. For unincorporated organizations that have made

or will make an election under § 761(a) to

be excluded from the application of subchapter K of chapter 1 of the Code (subchapter K), the organization, and not its

members, is the applicant.

SECTION 7. APPLICATION

PROCESS

.01 Registration in general. Applicants

must register in the Portal before they can

begin the application process. Potential

applicants should follow DOE’s publicly

available procedures to register in the Portal and to submit applications. To register,

applicants must first create a login.gov

account before accessing the Portal. After

a login.gov account has been created, the

user can register as the applicant in the Portal. See the Applicant User Guide, which

can be found on the Program Homepage,

for more information. Applications may

be submitted only through the Portal.

.02 Application Submission. The

applicant must submit their application,

including any required information, documentation, and attestations required by

section 7 of this revenue procedure, under

penalties of perjury. The person completing and submitting the application must

have personal knowledge of the facts

related to the application and be a per-

Bulletin No. 2024–16

son who is legally authorized to (1) bind

the applicant entity for federal income

tax purposes, including providing, under

penalties of perjury, the attestations under

sections 7.06, 7.07, 7.08 and 10.02 of

this revenue procedure; (2) communicate

with DOE about the application prior to

and after submission of the application;

and (3) receive notifications, letters, and

other communications from DOE and the

IRS about the Program. For example, an

application may be authorized by an officer of a corporation, a general partner of a

state law partnership, a member-manager

on behalf of a limited liability company, a

trustee on behalf of a trust, or the proprietor in the case of a sole proprietorship.

The person submitting the application

must attest through the Portal that they

have the requisite authority to legally

bind the applicant with respect to federal

income tax matters.

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

(1) The name of the applicant;

(2) The unique federal taxpayer identification number for the applicant. Unless a

transfer request is reviewed and approved

by the IRS or the unincorporated organization has made a § 761(a) election to be

excluded from the application of subchap-

Bulletin No. 2024–16

ter K (see section 13 of this revenue procedure), the taxpayer identification number

of the applicant must match the taxpayer

identification number of the taxpayer that

will claim the energy percentage increase

under § 48(e), or, in the case of a partnership or S corporation, the partnership or S

corporation that owns the facility when it

is placed in service;

(3) The applicant’s address;

(4) If the applicant is a subsidiary corporation of a consolidated group filing a

consolidated federal income tax return,

the legal name and federal taxpayer identification number of the parent corporation

of the consolidated group; and

(5) Any other information required by

DOE’s publicly available written procedures.

.04 Facility Information.

(1) In general. The application requires

the applicant to provide the information

about the facility described in section

7.04(2) and 7.04(3) of this revenue procedure.

(2) Facility maximum net output and

nameplate capacity.

(a) Wind facility. Applicants seeking an

allocation for a wind facility must report

the expected maximum net output of the

facility defined as the nameplate capacity

of the facility in alternating current. Wind

901

facilities selected for an allocation will be

awarded an amount of Capacity Limitation in direct current that is equal to the

facility’s reported nameplate capacity in

alternating current.

(b) Solar facility. Applicants seeking an allocation for a solar facility must

report the expected maximum net output

of the facility as measured in alternating

current and the nameplate capacity of the

facility in direct current. Solar facilities

selected for an allocation will be awarded

an amount of Capacity Limitation in

direct current that is equal to the facility’s

reported nameplate capacity in direct current.

(3) Facility location. Applicants are

required to report the location of the facility, including street address (if applicable)

and coordinates (latitude and longitude).

.05 Documentation.

(1) In general. Applicants must submit

the documentation specified in sections

7.05(2) and 7.05(3) of this revenue procedure with an application for an allocation

of Capacity Limitation. An application is

not complete and may be rejected if any

required documentation is not included.

(2) Facility documentation. As specified in Table 2, the following documents

are required for each facility for which an

application is submitted:

April 15, 2024

Table 2

Document Requirement

FTM2

One of the following documents, in its entirety, inclusive of any amendments,

appendices, consumer disclosures, and schedules thereto, executed by each party4

on or before the date of application submission:

1) If the applicant will not execute a lease or a power purchase agreement (PPA)

with respect to the facility, an executed contract for the installation of the facility

owned by the applicant (for example, an engineering, procurement, and construction contract). For purposes of meeting this requirement, if the applicant will

self-install the facility, the applicant must submit a contract to purchase the solar

generation or wind generation equipment;

2) If the applicant will execute a lease with respect to the facility, an executed contract to lease the facility between the applicant (as the lessor) and the lessee; or

3) If the applicant will execute a PPA with respect to the facility, an executed power

purchase agreement for the generation by the facility between the applicant and the

offtaker of the electricity generated.

A copy of the final, executed interconnection agreement, if applicable (see below).

If the facility is located in a market where the interconnection agreement cannot be

countersigned by the interconnecting utility prior to completion of construction or

interconnection of the facility, the applicant must provide: 1) a copy of the interconnection agreement or offer signed by the applicant (or its agent), 2) a copy of the

final completed interconnection screen/study, and 3) either a conditional approval

letter from the interconnecting utility or an affidavit5 stating that, based on the

interconnecting utility’s guidance, the facility’s interconnection agreement cannot

be countersigned by the interconnecting utility and executed until after construction

of the facility. If an interconnection agreement is not applicable to the facility (for

example, due to utility ownership), the interconnection agreement requirement is

satisfied by a final written decision from a Public Utility Commission, cooperative

board, or other governing body with sufficient authority that financially authorizes

the facility.

(3) Facility category specific document. The application must include the

BTM3

<= 1 MW AC

Yes

BTM

> 1 MW AC

Yes

following documents for the applicable

facility category:

Table 3

Document Requirement

Documentation demonstrating property will be installed on an

eligible residential building.

Draft Benefits Sharing Statement.

Category 1

Category 2

Category 3

Category 4

Yes

As defined in § 1.48(e)-1(i)(2)(iii), for the purposes of the Program, a qualified solar or wind facility is front of the meter (FTM) if it is directly connected to a grid and its primary purpose

is to provide electricity to one or more offsite locations via such grid or utility meters with which it does not have an electrical connection; alternatively, FTM is defined as a facility that is

not BTM. For the purposes of Category 4, a qualified solar or wind facility is also FTM if 50 percent or more of its electricity generation on an annual basis is physically exported to the

broader electricity grid.

As defined in § 1.48(e)-1(i)(2)(i), a qualified wind or solar facility is behind the meter (BTM) if (1) it is connected with an electrical connection between the facility and the panelboard or

sub-panelboard of the site where the facility is located, (2) it is to be connected on the customer side of a utility service meter before it connects to a distribution or transmission system (that is,

before it connects to the electricity grid), and its primary purpose is to provide electricity to the utility customer of the site where the facility is located. This also includes systems not connected

to a grid and that may not have a utility service meter, and whose primary purpose is to serve the electricity demand of the owner of the site where the system is located.

If the applicant is not a party named in the contract, the applicant must provide with the applicable contract a statement explaining why the applicant is not named in the contract and the

relationship between the appropriate entity named in the contract and the applicant—the latter of which must be the owner of the facility to be eligible to apply for an allocation of Capacity

Limitation.

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

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.06 Attestations.

(1) In general. Each applicant must

make the required attestations as specified in sections 7.06(2) and 7.06(3) of

this revenue procedure. The attestations in

sections 7.06(2) and 7.06(3) are included

as part of the application in the Portal. An

applicant will be unable to submit their

application if any required attestations are

not completed.

(2) For all facilities. As specified below

in Table 4, the following attestations are

required for each facility for which an

application is submitted:

Table 4

Attestation Requirement

FTM

Yes

BTM

<= 1 MW AC

BTM

> 1 MW AC

I attest that the qualifying facility has site control of the real property on which the

facility will be installed and placed in service through ownership of the real property,

an executed lease for the real property, or a site access agreement or similar agreement

between the real property owner and the applicant.

For a facility on lands under 25 U.S.C. 3501(2)(A)-(C) (Indian Land), I attest that I

have obtained the applicable approval of the Tribal government or Alaska Native Corporation landowner. For a facility not on Indian Land, complete this attestation to attest

that the facility is not on Indian Land.

I attest that the qualifying facility has obtained all applicable federal, state, tribal, and

local non-ministerial permits for the facility, or that the facility is not required to obtain

such permits.5

I attest that when performing the activities that support this application, I was, or will

be, in compliance with all relevant federal, state, and local laws, including consumer

protection provisions, and safety obligations, and that the applicant did not and will not

engage in any unfair or deceptive acts or practices.

I attest that the qualified facility is sized, or that customer/offtaker subscriptions will be

sized, to meet the customer’s energy needs, considering historical customer load and/or

reasonable future load projections, and is in accordance with applicable state and local

requirements.

I attest that the proposed location of the facility has been determined suitable for installation.

I attest that I reasonably believe the qualifying facility meets the statutory definition of

a single “qualified solar and wind facility” (§ 48(e)(2)(A) and, if applicable, multiple

solar or wind energy properties or facilities that are operated as part of a single project

(consistent with the single-project factors provided in section 7.01(2)(a) of Notice

2018–59, 2018–28 I.R.B. 196 or section 4.04(2) of Notice 2013–29, 2013–20 I.R.B.

1085) are aggregated and treated as a single facility.

I attest that the qualifying facility has not been placed in service at the time of this

submission and will not be placed in service prior to being awarded an allocation of

Capacity Limitation.

Yes

Non-ministerial permits are permits in which one or more officials or agencies consider various factors and exercise some discretion in deciding whether to issue or deny permits. This does

not include ministerial permits based upon a determination that the request complies with established standards such as electrical or building permits. Non-ministerial permits typically

come with conditions and usually require public notice or hearings. Examples of non-ministerial permits include local planning board authorization, conditional use permits, variances, and

special orders.

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April 15, 2024

(3) Facility and category specific attestations. The application must include the

following attestations for the applicable

facility category:

Table 5

Attestation Requirement

Facility location is eligible.6

I attest that any end-use customer(s)/offtaker(s) of the qualifying facility

have and/or will receive consumer disclosures informing them of their

legal rights and protections prior to executing a contract to subscribe or

purchase power from the facility or lease a facility.

I attest that at least 50% of the qualifying facility’s total kW output will

be assigned to qualified low-income households (defined under § 48(e)(2)

(C)(i) or (ii)) at a minimum 20% bill credit discount rate, defined as the

difference between the financial benefit provided to a Qualifying Household (including utility bill credits, reductions in a Qualifying Household’s

electricity rate, or other monetary benefits accrued by the Qualifying

Household on their utility bill) and the cost of participating in the program

(including subscription payments for renewable energy and any other fees

or charges), expressed as a percentage of the financial benefit provided to

the low-income household.

.07 Ownership Criteria documentation

and attestation. In addition to the information, documentation, and attestations

required above, any applicant purporting

to meet the Additional Selection Criteria

for Ownership Criteria, as described under

§ 1.48(e)-1(h)(2), must submit with their

application the documentation specified

below to demonstrate that they meet the

Ownership Criteria.

(1) Tribal Enterprise. An applicant

claiming to be a Tribal Enterprise must

provide proof of inclusion of its Indian

Tribal government (Tribal government)

owner on the current list of Tribal entities

recognized and eligible for funding and

services by the Bureau of Indian Affairs

(BIA).

(2) Alaska Native Corporation. An

applicant claiming to be an Alaska Native

Corporation (ANC) must provide a copy

of the relevant portions of the ANC’s articles of incorporation and bylaws (and any

relevant amendments), including the first

page with the title of the document and, if

applicable, the signature pages.

(3) Renewable Energy Cooperative.

An applicant that claims to be a Renew-

Category 1

Yes

Category 2

Yes

Category 3

Category 4

Yes

able Energy Cooperative, as described

under § 1.48(e)-1(h)(2)(v), must provide

a copy of its articles of incorporation and

bylaws. The applicant must highlight the

relevant language in these documents

that demonstrates the entity meets either

the consumer/purchasing cooperative

requirements under § 1.48(e)-1(h)(2)(v)

(A) or is a worker cooperative controlled

by its worker-members with each member

having an equal voting right as described

under § 1.48(e)-1(h)(2)(v)(B).

(4) Qualified Renewable Energy Company. Applicants claiming to be a qualified renewable energy company (QREC),

as described in § 1.48(e)-1(h)(2)(vi), must

provide documentation to support each of

the below requirements in a single package upload.

(a) Statement of business purpose

attestation. The applicant must submit

the following attestation: “I declare that

the business purpose of this organization is to serve low-income communities

and provide pathways for the adoption of

clean energy by low-income households,

as required under § 1.48(e)-1(h)(2)(vi).”

This attestation must be signed by the

applicant and uploaded as an Additional

Selection Criteria Ownership Criteria document in the Portal.

(b) At least 51 percent ownership

requirement. The applicant must provide

documentation which demonstrates that

the applicant entity meets the at least 51

percent ownership requirements under

§ 1.48(e)-1(h)(2)(vi)(A)-(F).

(i) For applicants whose equity interests are at least 51 percent owned and

controlled by one or more individuals, the

applicant must provide a list of all individuals with an equity interest in the entity

and specify for each individual the percentage of their ownership interest in the

applicant entity.

(ii) For applicants whose equity interests are at least 51 percent owned and

controlled by a Community Development

Corporation (CDC), the applicant must

submit (1) a copy of the award letter, or

other communication, from the Department of Housing and Urban Development (HUD) demonstrating that the CDC

which owns and controls the applicant has

received financial assistance under HUD’s

Urban and Rural Special Impact Programs

For Category 1, the applicant must attest that the facility will be located in a low-income community, as defined in the Final Regulations for the Program, specifically § 1.48(e)-1. A map

that captures applicable census tracts will be available in DOE’s publicly available written procedures to assist applicants. For Category 2, the applicant must attest that the facility will be

located on Indian Land as defined in § 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2)).

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(42 U.S.C. 9806); and (2) documentation

showing the CDC owns and controls the

applicant entity.

(iii) For applicants whose equity interests are at least 51 percent owned and controlled by an agricultural or horticultural

cooperative, documentation demonstrating that the applicant entity is at last 51

percent owned and controlled by an agricultural or horticultural cooperative,

(iv) For applicants whose equity interests are at least 51 percent owned and

controlled by a Tribal government, the

applicant entity must provide (1) documentation that its Tribal government

owner is on the current list of Tribal entities recognized and eligible for funding

and services by the BIA; and (2) documentation showing the Tribal government

owns and controls the applicant entity.

(v) For applicants whose equity interests are at least 51 percent owned and

controlled by an ANC, the applicant must

provide (1) a copy of the ANC’s Articles

of Incorporation and bylaws (including

any amendments); and (2) documentation

showing the ANC owns and controls the

applicant entity.

(vi) For applicants whose equity interests are at least 51 percent owned and

controlled by a Native Hawaiian organization (NHO), the applicant must provide

(1) documentation which demonstrates

the legal status of the NHO; and (2) documentation showing the NHO owns and

controls the applicant entity.

The applicant entity must provide documentation that demonstrates it meets the

employment and gross receipts requirements under § 1.48(e)-1(h)(2)(vi)(G). To

demonstrate this, the applicant entity must

provide the following documentation:

(i) A list of all current employees of the

applicant, indicating the number of fulltime and full-time equivalent employees,

as provided in § 1.48(e)-1(h)(2)(vi)(G).

(ii) A copy of a federal tax filing for

the previous tax year listing the applicant

entity’s gross receipts.

(iii) Either a statement providing that

the applicant does not have any affiliates

or, if the applicant has affiliates, a summary list of each affiliate entity of the

applicant and a list of all current employees of affiliates, indicating the number of

full-time and full-time equivalent employees, as provided in § 1.48(e)-1(h)(2)(vi)

(G), and a list of affiliate entity gross

receipts from the previous taxable year,

broken down by each affiliate entity.

(d) Installation, operation, or services

requirement. The applicant entity must

provide documentation to demonstrate

the applicant meets the requirements of

§ 1.48(e)-1(h)(2)(vi)(H) or (I).

(i) To demonstrate that the applicant

meets the requirements of § 1.48(e)-1(h)

(2)(vi)(H), the applicant must provide (1)

documentation indicating the QREC has

been in existence and operating for at least

two years; and (2) an executed (by each

party) contract, in its entirety (including

any amendments, appendices, consumer

disclosures, and schedules, and dated at

least two years prior to the date of application to this Program), to install and/or

operate a qualified facility as defined in

§ 48(e)(2)(A).

(ii) To demonstrate that the applicant

meets the requirements of § 1.48(e)-1(h)

(2)(vi)(I), the applicant must provide a

list of all qualified solar or wind facilities,

as defined in § 48(e)(2)(A), to which the

applicant has provided services in eligible low-income communities, the geographic coordinates of each facility, and

the nameplate capacity of each facility.

For any selection of the facilities in the list

which cumulatively amount to at least 100

kW in nameplate capacity, the applicant

must provide executed contracts (in their

entirety, inclusive of any amendments,

appendices, consumer disclosures, and

schedules) to install and/or operate the

facility.

(5) Qualified tax-exempt entity. An

applicant claiming to be a qualified tax-exempt entity described in § 1.48(e)-1(h)(2)

(vii) must provide documentation supporting its claim as described below.

(a) An applicant claiming to be

described in § 501(c)(3), § 501(c)(12), or

§ 501(d) must provide the following:

(i) If its exempt status is currently recognized by the IRS, proof of listing in IRS

Pub. 78, Cumulative List of Organizations Described in § 170(c) (see the “Tax

Exempt Organization Search” page on the

IRS website), or in the Exempt Organizations Business Master File Extract (also

available on the IRS website), such as a

screenshot within the last 30 days, or, if

issued within the last 12 months, a copy of

its IRS determination letter or a letter from

the IRS affirming its exempt status. See

Pub. 4573, Group Exemptions, for information on group exemptions and returns.

(ii) If its exempt status has never been

recognized by the IRS, a copy of its

annual information return or notice under

§ 6033 filed within the last two years (if it

has so filed). Section 501(c)(3) and 501(c)

(12) organizations file a Form 990-series

return or notice such as Form 990, Return

of Organization Exempt from Tax. Section

501(d) organizations file Form 1065, U.S.

Return of Partnership Income.

(iii) If an applicant’s exempt status has

never been recognized by the IRS and it

has not filed an annual information return

or notice within the last two years, the

applicant must provide other documentation demonstrating that it is described in

§ 501(c)(3), § 501(c)(12), or § 501(d) (such

as its governing documents) and demonstrating that it is currently excepted from,

or otherwise in compliance with, its exemption application requirements and information return filing requirements, unless it is

a church or a convention or association of

churches described in § 170(b)(1)(A)(i),

in which case it may submit the following

attestation, uploaded by the applicant in

the Portal, signed by a person authorized

to bind the entity: “Solely for purposes of

the § 48(e) credit, I certify that Entity is a

church or a convention or association of

churches described in § 170(b)(1)(A)(i).

I further certify that I am an officer of the

Entity and that I am duly authorized to sign

this statement on behalf of the Entity.”

(iv) An applicant described in § 501(c)

(12) must also demonstrate that it is a corporation that operates on a cooperative

basis and explain, in a statement uploaded

by the applicant in the Portal, the extent to

which it is engaged in furnishing electric

energy to persons in rural areas.

(b) An applicant claiming to be a State,

the District of Columbia, a Tribal government (as defined in § 30D(g)(9)8), a politi-

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

Bulletin No. 2024–16

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April 15, 2024

cal subdivision of any of the foregoing,9 or

an agency or instrumentality of any of the

foregoing,10 must provide the following:

(i) A private letter ruling issued by the

IRS ruling on its status, if any, or

(ii) An attestation signed under penalties of perjury, by a person authorized to

bind the applicant, certifying that, to the

best of the person’s knowledge and belief,

that the entity is a State, the District of

Columbia, a Tribal government, a political subdivision of any of the foregoing,

or an agency or instrumentality of any of

the foregoing, and acknowledging that

this representation is not for the purpose

of examination or inspection within the

meaning of IRC § 7605(b). The attestation

must be uploaded as part of the application

in the Portal by the applicant. In addition

to the acknowledgment described above,

the attestation must include the following statement: “Solely for purposes of the

§ 48(e) credit, the applicant qualifies as a

[insert the entity type as described above

in this section].”

(iii) In the case of an applicant claiming to be a Tribal government, a subdivision of a Tribal government, or an agency

or instrumentality of any of the foregoing,

proof that the Tribe is on the current list

of Tribal entities recognized and eligible

for funding and services published by the

BIA, available on the BIA website.

(6) Qualifying entity in a partnership. If

an applicant does not itself meet the Ownership Criteria described in § 1.48(e)-1(h)

(2), but the applicant is an entity treated

as a partnership for federal income tax

purposes, and an entity described in

§ 1.48(e)-1(h)(2) and section 7.07 of this

revenue procedure (that is, an entity that

meets the Ownership Criteria) owns at

least a one percent interest (either directly

or indirectly) in each material item of partnership income, gain, loss, deduction, and

credit and is a managing member or general partner (or similar title) under State

law of the partnership (or directly owns

100 percent of the equity interests in the

managing member or general partner) at

all times during the existence of the partnership, the qualified solar or wind facility

owned by the applicant will be deemed to

meet the Ownership Criteria. In addition

to providing the documentation described

in section 7.07 of this revenue procedure

with respect to the relevant partner meeting the requirements of § 1.48(e)-1(h)(2)

(that is, the partner which the applicant is

claiming meets the Ownership Criteria),

the applicant must also submit documentation to demonstrate that the requirements described in § 1.48(e)-1(h)(2)(ii)

(B) are satisfied if the applicant is claiming to meet the Ownership Criteria based

on this provision.

.08 Geographic Criteria attestation. If

the applicant claims that it meets the Additional Selection Criteria for Geographic

Criteria described in § 1.48(e)-1(h)(3)

with respect to Categories 1, 3, or 4, it

must provide an attestation that the qualifying facility will be located in a Persistent

Poverty County (PPC) or in a census tract

that is designated as disadvantaged in the

Climate and Economic Justice Screening

Tool (CEJST) as defined in § 1.48(e)-1(h)

(3).11

SECTION 8. REVIEW AND

SELECTION PROCESS

.01 In general. DOE will review applications for the Program and provide a

recommendation to the IRS regarding

whether to award an applicant an amount

of Capacity Limitation with respect to a

facility. Based on DOE’s recommendation, the IRS will award the applicant a

Capacity Limitation allocation or reject

the application.

.02 Order of application review and

recommendation for allocation.

(1) First 30 days. When the application

period opens for the 2024 Program year,

there will be a 30-day period during which

applications will initially be accepted for

each facility category. All applications

submitted within the first 30-days will

be treated as submitted on the same date

and at the same time. DOE will publicly

announce on the Program Homepage the

opening and closing dates of the 30-day

period. All applications submitted by

11:59 PM ET on the closing date will be

considered submitted during the initial

30-day period. Refer to section 8.02(3)

of this revenue procedure for information

regarding the lottery for applications submitted during the first 30 days in oversubscribed facility categories or Category 1

sub-reservations.

(2) Applications submitted after the

30-day period. Following the 30-day

period, DOE will continue to accept applications until the close of the 2024 Program year application period. Provided

there is remaining Capacity Limitation in

a facility category or Category 1 sub-reservation, DOE will review applications

submitted in those facility categories

or Category 1 sub-reservation after the

30-day period. Within each facility category or Category 1 sub-reservation, DOE

will make recommendations for an allocation of Capacity Limitation with respect

to applications submitted after the close

of the 30-day period in the order in which

applications are received in a particular

facility category or Category 1 sub-reservation. The IRS will award Capacity

Limitation allocations in the order that it

receives recommendations from DOE.

(3) Lottery for applications submitted

during the 30-day period. For oversubscribed facility categories and Category

1 sub-reservations, DOE will conduct

a lottery at the end of the 30-day period

described in section 8.02(1) of this revenue procedure for applications submitted

during that period. The lottery is conducted prior to application review. Lottery

scores will be used to determine which

qualified facilities are eligible for a recommendation for an allocation of Capacity Limitation if a facility category or Category 1 sub-reservation is oversubscribed.

Refer to section 8.03(2) of this revenue

procedure for information regarding how

applications meeting Additional Selection

Criteria are prioritized over other applications. Regardless of an application’s

lottery score, a facility will not receive

a recommendation for an allocation of

Capacity Limitation if the facility and the

application with respect to that facility

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

For a general discussion of agencies and instrumentalities of governments, see Rev. Rul. 57-128, 1957-1 C.B. 311, Rose v. Long Island Railroad Pension Plan, 828 F.2d 910, 918 (2d Cir.

1987), cert. denied, 485 U.S. 936 (1988), and Bernini v. Federal Reserve Bank of St. Louis, Eighth District, 420 F. Supp. 2d 1021 (E.D. Mo. 2005).

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

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do not meet the requirements of the Final

Regulations and this revenue procedure.

(4) Close of program year. After the

IRS awards all the Capacity Limitation

within each facility category or Category

1 sub-reservation, or the 2024 Program

year is closed, DOE will cease review of

any remaining applications. At the end of

the 2024 Program year, no further action

will be taken on applications submitted

but not awarded an allocation. DOE will

publicly announce on the Program Homepage when the 2024 Program year closes.

.03 Processing Additional Selection

Criteria applications.

(1) In general. Fifty percent of the

Capacity Limitation in each facility category will be reserved for qualified solar

or wind facilities meeting the Ownership

Criteria described in § 1.48(e)-1(h)(2)

and the Geographic Criteria described in

§ 1.48(e)-1(h)(3). This reservation will

remain beyond the initial 30-day period

described in section 8.02(1) of this revenue procedure. However, as described in

§ 1.48(e)-1(h)(1), the Treasury Department and the IRS may later decide to reallocate reserved capacity across facility categories and Category 1 sub-reservations

in the event one facility category or Category 1 sub-reservation is oversubscribed

and another has excess capacity. Allocations for facilities meeting one or more

of the Additional Selection Criteria will

be made from the 50-percent reserve for

such facilities before additional amounts

reserved for a facility category are allocated to facilities meeting these criteria.

If the 50-percent reserve is depleted, however, applications meeting the Additional

Selection Criteria submitted during the

initial 30-day period are prioritized with

respect to all available Capacity Limitation in each facility category or Category

1 sub-reservation as provided in section

8.03(2) of this revenue procedure.

(2) Review of Additional Selection

Criteria applications. If a facility category or Category 1 sub-reservation is

oversubscribed at the end of the 30-day

period, applications purporting to meet

one or more Additional Selection Criteria are included in the lottery (described

in section 8.02(3) of this revenue procedure) with non-Additional Selection Criteria applications for that oversubscribed

Category or Category 1 sub-reservation.

Bulletin No. 2024–16

However, applications purporting to meet

one or more Additional Selection Criteria

as a group will be prioritized for an allocation over non-Additional Selection Criteria applications within the same facility

category or Category 1 sub-reservation.

DOE will use lottery scores to determine

which qualified facilities are eligible for

a recommendation for an allocation of

Capacity Limitation if a facility category

or Category 1 sub-reservation is oversubscribed. If the eligible applications for

Capacity Limitation for facilities that meet

at least one of the two Additional Selection Criteria exceed the Capacity Limitation for a facility category or Category 1

sub-reservation, applications purporting

to meet both of the Additional Selection

Criteria receive a higher score so that they

are prioritized over other applications

within each facility category or Category

1 sub-reservation. If upon DOE review

it is determined that an application does

not meet one or both Additional Selection

Criteria purported in the application, then

the application’s score may be reduced

resulting in a change to the application’s

priority status.

.04 Cure period for application defects.

(1) In general. If the assigned DOE

reviewer identifies a defect with a submitted application, such as missing or incorrect information or documentation, DOE

will contact the applicant via the Portal.

The reviewer will request that the applicant submit additional information or

documentation to correct or complete the

application via the Portal.

(2) Timing for applicant response.

An applicant that is contacted by a DOE

reviewer to submit additional information

or documentation or provide corrected

information will have 12 business days

(12-business day cure period) to respond

and provide such requested information or

documentation.

(3) Consequences for failure to respond

or provide information. If an applicant

fails to respond and provide the requested

information or documentation within the

12 business-day cure period, DOE will

cease review and mark the application as

withdrawn. The applicant may create and

submit a new application for review, at a

later date, if the facility remains eligible

and the Program is still accepting applications.

907

SECTION 9. NOTIFICATION OF

ALLOCATION DECISION FROM

IRS

.01 In general. The IRS will send

final decision letters through the Portal to

inform applicants of the outcome of the

application process. For any applicant that

receives an award of Capacity Limitation,

the letter will state the amount of the allocated Capacity Limitation.

.02 Allocation amount. The Capacity

Limitation allocated to a facility will be

determined based on the nameplate capacity of the facility as stated in the application. The Capacity Limitation allocation

will be provided in direct current. For

wind facilities, alternating current will

be treated as equivalent to direct current

for purposes of determining the amount

of a Capacity Limitation allocation. The

facility that receives the final allocation of

Capacity Limitation in each facility category or Category 1 sub-reservation may

receive an allocation less than its nameplate capacity.

SECTION 10. PLACED IN SERVICE

.01 In general. To satisfy the requirements of § 1.48(e)-1(k), for any facility

that receives an allocation of Capacity

Limitation, the owner of the facility must

report to DOE through the Portal the date

the facility was placed in service.

.02 Documentation and attestation

requirements. To satisfy the requirements

of § 1.48(e)-1(k), the owner must provide

the following through the Portal:

(1) A Permission to Operate (PTO) letter (or commissioning report for off-grid

facilities) confirming that the facility has

been placed in service and the location of

the facility being placed in service;

(2) A Final, Professional Engineer (PE)

stamped (if required by applicable state or

local law) as-built design plan, PTO letter

with nameplate capacity listed, or other

documentation from an unrelated party

verifying as-built nameplate capacity;

(3) For Category 3 Facilities, a Benefits Sharing Statement as defined in

§ 1.48(e)-1(e)(6) demonstrating that the

financial benefits requirements will be

met based on the expected annual energy

produced by the as-built facility at placed

in service;

April 15, 2024

(4) For Category 4 Facilities, a final

list of low-income households served with

name, address, subscription share, and the

income verification method used. Alternatively, if financial benefits are delivered

through a utility or government body where

the utility or government body cannot provide a final list of low-income households

served with all relevant details, documentation issued from the participating utility

or government body (for example, a Public

Utility Commission, state energy office, or

Tribal government) or the program administrator acting on behalf of the utility or

government body that confirms that the

facility is participating in a low-income

program that ensures that at least fifty percent of the facility’s total output is assigned

to qualifying low-income households under

§ 48(e)(2)(C)(i) or (ii) (Qualifying Household). If documentation is submitted from

the participating utility, government body,

or program administrator, the documentation must also include additional information, such as a copy of the relevant statute

or regulatory order, that confirms that the

low-income program in which the facility

is participating requires the facility to serve

multiple Qualifying Households; and

(5) For Category 4 Facilities, a spreadsheet demonstrating the expected financial benefit to low-income subscribers to

demonstrate the 20 percent bill credit discount rate.

(6) An attestation confirming that a disqualification event under § 1.48(e)-1(m)

(1) through (5) has not occurred.

(7) An attestation stating that the person submitting the information and documentation at placed in service is authorized to legally bind the owner, and that,

under penalties of perjury, they have

examined the submission, including any

accompanying documents, and that, to the

best of their knowledge and belief, all of

the facts contained therein are true, correct, and complete.

SECTION 11. EFFECT OF

ALLOCATION OR OTHER

NOTIFICATION

A Capacity Limitation allocation or a

notification that a facility has met the eli-

April 15, 2024

gibility requirements under the Program

at the time the facility is placed in service

is not a final determination that property

is eligible for an increased credit under

§ 48(e). The IRS may, upon examination,

determine that property does not qualify

for the increased credit.

SECTION 12. CLAIMING THE

ENERGY PERCENTAGE INCREASE

.01 In general. After the facility is

placed in service, and the owner submits

the additional documentation and attestations described in § 1.48(e)-1(k) and

section 10 of this revenue procedure, the

owner is notified that it (or the applicable partners or shareholders in the case

of a partnership or an S corporation) may

claim the energy percentage increase on

Form 3468, Investment Credit (or successor form) or Form 3800, General Business

Credit (or successor form), if eligible,

make an elective payment election under

§ 6417, or, if eligible, make a transfer

election under § 6418.

.02 Reduction in Increased Energy Percentage. In cases where the facility size

is larger than the allocated capacity when

placed in service (but still below 5 MW

AC), the 10 percentage or 20 percentage point increase will be reduced by a

reduction factor which is calculated by the

amount of Capacity Limitation allocated

(kW) divided by the total nameplate capacity installed (kW) at the time the owner of

the facility claims the energy percentage

increase under § 48(e). See § 48(e)(1)(B).

SECTION 13. SUCCESSOR IN

INTEREST

.01 In general. Except as otherwise provided in this section 13, a Capacity Limitation allocation award applies only to the

taxpayer who applied for and received an

allocation award for the facility the taxpayer owns. If a taxpayer wants to request

a transfer of an allocation, it should refer

to DOE’s publicly available written procedures to initiate a transfer request in the

Portal. Transfer requests will be reviewed

and approved by the IRS. The IRS intends

to provide future guidance regarding unin-

908

corporated organizations that elect to be

excluded from the application of subchapter K.

.02 Additional Selection Criteria.

Applicants who received an allocation

based on the Additional Selection Criteria

should refer to § 1.48(e)-1(m)(5) regarding potential disqualification if the original applicant does not retain the requisite

interest described in § 1.48(e)-1(m)(5) in

an entity treated as a partnership for federal income tax purposes that owns the

facility.

SECTION 14. EFFECT ON OTHER

DOCUMENTS

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

SECTION 15. APPLICABILITY

DATES

This revenue procedure applies to the

2024 Program year.

SECTION 16. PAPERWORK

REDUCTION ACT

This revenue procedure is not creating a new collection of information as

described by the Paperwork Reduction

Act (44 U.S.C. 3507(d)). The collections

of information contained within this revenue procedure, and their associated burdens, have been submitted to the Office

of Management and Budget as part of TD

9979 and was approved under OMB Control Number 1545-2308.

SECTION 17. DRAFTING

INFORMATION

The principal author of this revenue

procedure is the Office of Associate Chief

Counsel (Passthroughs & Special Industries). However, other personnel from the

Treasury Department and the IRS participated in its development. For further

information regarding this revenue procedure, call the energy security guidance

contact number at (202) 317-5254 (not a

toll-free number).

Bulletin No. 2024–16

Part IV

Announcement and Report Concerning Advance Pricing Agreements

Announcement 2024-16

This Announcement is issued pursuant to § 521(b) of Pub. L. 106-170, the Ticket to Work and Work Incentives Improvement Act of

1999, which requires the Secretary of the Treasury to report annually to the public concerning advance pricing agreements (APAs)

and the Advance Pricing and Mutual Agreement Program (APMA Program), formerly known as the Advance Pricing Agreement

Program (APA Program). The first report covered calendar years 1991 through 1999. Subsequent reports covered each calendar

year 2000 through 2022 separately. This twenty-fifth report describes the experience, structure, and activities of the APMA Program

during calendar year 2023. It does not provide guidance regarding the application of the arm’s length standard.

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

covered, transfer pricing methods used, and completion time.

John M. Wall

Acting Director, APMA Program

Bulletin No. 2024–16

909

April 15, 2024

Part I. The APMA Program – Structure, Composition, and Operation

[Pub. L. 106-170 § 521(b)(2)(A)]

In February 2012, the former APA Program was moved from the Office of Chief Counsel to the Office of Transfer Pricing Operations1

within the Large Business and International Division of the IRS and combined with the U.S. Competent Authority staff responsible

for transfer pricing cases, thereby forming the APMA Program (APMA).

As of December 31, 2023, APMA’s APA cases were handled by 70 team leaders, 29 economists, 12 managers, and 3 assistant directors.2 Each assistant director oversees four managers who lead teams consisting of both team leaders and economists. APMA’s main

office is in Washington, DC, and it also has offices in northern California, southern California, and the Atlanta, Boston, Chicago,

Denver, Miami, New York, and Seattle metropolitan areas.

On August 31, 2015, the current revenue procedure governing APA applications was published in 2015-35 I.R.B. on page 263. Revenue Procedure (Rev. Proc.) 2015-41 provides guidance, information and instructions on APA requests and the administration of

APAs. Rev. Proc. 2015-41 updates and supersedes Rev. Proc. 2006-9, 2006-1 C.B. 278, as modified by Rev. Proc. 2008-31, 2008-1

C.B. 1133, which is also superseded.

The model for APAs covered by Rev. Proc. 2006-9 was updated to serve as the current model APA for APAs covered by Rev. Proc.

2015-41. The model APA is included as Appendix 1 to this report. A list of primary APMA contacts is available at https://www.irs.

gov/businesses/corporations/apma-contacts.

In 2017, Transfer Pricing Operations became Treaty & Transfer Pricing Operations (“TTPO”).

In late 2020, TTPO’s Treaty Assistance and Interpretation Team (TAIT) joined APMA, bringing the total number of groups in APMA to four. The three legacy APMA groups have primary

responsibility for cases arising under the business profits and associated enterprises articles of U.S. tax treaties. TAIT endeavors to resolve competent authority issues arising under all other

articles of U.S. tax treaties including issues arising under U.S. tax treaties relating to estate and gift taxes. As such, TAIT is separate from APMA’s APA program, and the total numbers of

team leaders and managers handling APA cases do not include TAIT analysts and managers.

April 15, 2024

910

Bulletin No. 2024–16

Part II. APMA Program Statistical Data

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

Table 1: APA Applications Filed

§ 521(b)(2)(C)(i)

Unilateral

Bilateral

Multilateral

675

1,999

144

Filed 1991-19993

Filed 2000-2022

Filed in 2023

Total Filed 1991-2023

Total

401

2,718

167

3,286

Applications Filed

2014-2023

250

200

150

100

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Bilateral APAs

Filed by Country 2023

Japan

30%

All Other Countries

16%

Australia

Mexico

United Kingdom

India

21%

Italy

Canada

14%

The charts above illustrate the number of complete applications filed per year and the percentage

The charts above illustrate the number of complete applications filed per year and the percentage of bilateral requests received in

of bilateral requests received in 2023 per foreign country. As of December 31, 2023, APMA had

2023 per foreign country. As of December 31, 2023, APMA had also received 22 user fee filings that were not yet accompanied by a

also received

user

fee filings

that were

not167

yetcomplete

accompanied

by a substantially complete APA

substantially

complete22

APA

application,

in addition

to the

APA applications.

application, in addition to the 167 complete APA applications.

Table 2: Executed4 and Pending APAs

§ 521(b)(2)(C)(ii-vi)

Total Executed 1991-2022

Total Executed in 2023

Total Executed 1991-2023

Bulletin No. 2024–16

Unilateral

697

721

911

Bilateral Multilateral

1,549

130

1,679

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

Total Pending as of 12/31/2023

480

Total

2,268

156

2,424

April 15, 2024

558

Table 2: Executed4 and Pending APAs

§ 521(b)(2)(C)(ii-vi)

Total Executed 1991-2022

Unilateral

697

Bilateral

1,549

Multilateral

Total

2,268

Total Executed in 2023

Total Executed 1991-2023

721

130

1,679

156

2,424

Total Pending as of 12/31/2023

480

558

Renewals Executed in 20235

199

252

Renewals Pending as of 12/31/2023

199

252

APAs Executed

2014-2023

200

150

100

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

All Other Countries

14%

Bilateral APAs

Executed by Country 2023

Japan

32%

Switzerland

Denmark

United Kingdom

India

17%

Korea

6% Canada

Italy

11%

In 2023, the percentage of renewals executed decreased (47 percent of all APAs executed in

In 2023, the percentage of renewals executed decreased (47 percent of all APAs executed in 2023 versus 55 percent of all APAs exeversus

55 percent

of all APAs

in 2022).

charts

illustrate

trends

in thein the bilateral

cuted2023

in 2022).

The charts

above illustrate

trendsexecuted

in the number

of APAsThe

executed

perabove

year and

the countries

involved

number

APAs

executed

per

year

and

the

countries

involved

the

bilateral

APAs

that

were

APAs that were executed in 2023.

executed in 2023.

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

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

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

April 15, 2024

912

Bulletin No. 2024–16

Pending APAs

2014-2023

600

500

400

300

200

100

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Pending Bilateral APAs

by Country

All Other Countries

15%

Japan

25%

Germany

United Kingdom

Italy

Korea

5% Mexico

India

23%

Canada

13%

As the top chart illustrates, the number of pending requests decreased slightly relative to

As the top chart illustrates, the number of pending requests decreased slightly relative to December 31, 2022. As of December 31,

31,the2022.

Asbilateral

of December

31, 2023,

almost

pending bilateral APA requests

2023,December

almost half of

pending

APA requests

involved

either half

Japanof

orthe

India.

involved either Japan or India.

Table 3: APAs Revoked or Cancelled and Applications Withdrawn

§ 521(b)(2)(C)(vii)

Table 3: APAs Revoked or Cancelled and Applications Withdrawn

§ 521(b)(2)(C)(vii)

Revoked

or Cancelled

1991-2000

Revoked

or Cancelled

1991-2000

Revoked

or Cancelled

2001-2022

Revoked

or Cancelled

2001-2022

Revoked

Cancelled

2023

Revoked or Cancelled in 2023

TotalTotal

Revoked

or Cancelled

1991-20231991-2023

Revoked

or Cancelled

Unilateral

Bilateral

Multilateral TotalTotal

Multilateral

1 1

0 0

10 10

0 0

11 11

Withdrawn

1991-2000

49 49

Withdrawn

1991-2000

Withdrawn

2001-2022

157

235

Withdrawn 2001-2022

157

235

Withdrawn

2023

Withdrawn in 2023

Withdrawn 1991-2023

297

The first APA Statutory Report, which compiled APA data from 1991-1999, and the second APA Statutory Report,

which compiled APA data for 2000, did not report the cumulative number of applications for those years by

submission type, so the cumulative totals cannot be reported in that manner.

See supra note 7.

The first APA Statutory Report, which compiled APA data from 1991-1999, and the second APA Statutory Report, which compiled APA data for 2000, did not report the cumulative number

of applications for those years by submission type, so the cumulative totals cannot be reported in that manner.

See supra note 7.

Bulletin No. 2024–16

913

April 15, 2024

1991-2023

TableWithdrawn

4: APAs Executed

in 2023 by Industry

§ 521(b)(2)(C)(viii)

Table 4: APAs Executed in 2023 by Industry

297

§ 521(b)(2)(C)(viii)

Industry

Manufacturing

Wholesale/Retail

Trade Trade

Wholesale/Retail

Services

Finance,

Insurance

and Real Estate

Finance,

Insurance

and Real Estate

Management

All Industries

Other Industries

All Other

APAs Executed

in 2023 by Industry

Wholesale/Retail

Trade

30%

Manufacturing

31%

Services

17%

All Other Industries

Finance, Insurance

and Real Estate

12%

Management

4a: Manufacturing

APAsin Executed

in 2023

TableTable

4a: Manufacturing

APAs Executed

2023

Type of Manufacturing

Type of

Manufacturing

Transportation

Equipment

Transportation

Equipment

Chemical

Computer and Electronic Product

Chemical

Miscellaneous

Computer

and Electronic Product

Machinery

Miscellaneous

All Other Manufacturing

Machinery

All Other Manufacturing

Transportation

Equipment

31%

Type of Manufacturing APAs

Executed in 2023

Chemical

19%

Computer and

Electronic Product

17%

Miscellaneous

All Other

10% range of products that

Industries in the

Miscellaneous

Manufacturing

subsector

(NAICS

Code

339)

make

a wide

Manufacturing

cannot readily be classified

specific

NAICS

manufacturing

subsectors.

17%

Machinery

Table 4b: Wholesale/Retail Trade APAs Executed in 2023

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

Type of Wholesale/Retail Trade

Merchant Wholesalers, Durable Goods

April Merchant

15, 2024

914

Bulletin No. 2024–16

Wholesalers, Nondurable Goods

Clothing and Clothing Accessories Stores

All Other

Manufacturing

17%

10%

Machinery

Table 4b: Wholesale/Retail Trade APAs Executed in 2023

Type of Wholesale/Retail Trade

Merchant Wholesalers, Durable Goods

Merchant Wholesalers, Nondurable Goods

Clothing and Clothing Accessories Stores

All Other Wholesalers

Type of Wholesale/Retail Trade APAs

Executed in 2023

All Other

Wholesalers

15%

Merchant

Wholesalers, Durable

Goods

53%

Clothing and

Clothing Accessories

Stores

11%

Merchant

Wholesalers,

Nondurable Goods

21%

Bulletin No. 2024–16

915

April 15, 2024

Part III. General Descriptions of APAs Executed in 2023

L. 106-170

§ 521(b)(2)(D)

and (E)] in 2023

Part III.[Pub.

General

Descriptions

of APAs Executed

Part

III.

General

Descriptions

APAs

Executed

[Pub. L. 106-170 § 521(b)(2)(D) and (E)]in 2023

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

§ 521(b)(2)(D)(i)

Nature

of the Relationships

Nature of the Relationships

§ 521(b)(2)(D)(i)

Relationships between Controlled Parties

[CELLRANGE]

Non-U.S.

Parent &

[PERCENTAGE]

U.S. Subsidiary

56%

[CELLRANGE]

U.S. Parent &

[PERCENTAGE]

Non-U.S.

Subsidiary

[CELLRANGE] 37%

[PERCENTAGE]

Sister Companies

[CELLRANGE]

[PERCENTAGE]

All Other

Relationships 1%

As in prior years, more than half of the APAs executed in 2023 involved transactions between

non-U.S.

and

As inAs

prior

than

halfU.S.

ofthan

thesubsidiaries.

APAs

in 2023executed

involved transactions

between non-U.S.

parents

and U.S. subsidiaries.

inyears,

priorparents

years,

half executed

of the APAs

in 2023 involved

transactions

between

non-U.S. parents and U.S. subsidiaries.

Covered

Transactions,

FunctionsFunctions

and Risks, and

Parties

Covered

Transactions,

andTested

Risks,

and Tested Parties

§ 521(b)(2)(D)(ii-iii)

Covered

Transactions, Functions and Risks, and Tested Parties

§ 521(b)(2)(D)(ii-iii)

Types of Covered Transactions

Types of Covered TransactionsSale of Tangible

All Other Types of

All Transactions

Other Types of

Transactions

Property

the U.S.

Sale ofinto

Tangible

23%

Sale of Tangible

Property into the U.S.

Property

from the

23%

Sale of Tangible

U.S.

Property from the

13%

U.S.

Use 13%

of Intangible

Property

byProperty

a U.S.

Use of Intangible

Entity

Use of Intangible by a U.S. Entity

12%

Property by a NonU.S.Use

Entity

of Intangible Property by a

Non-U.S. Entity

Provision of Services

by of

a Non-U.S.

Entity

Provision

Services by

23%

Non-U.S. Entity

23%

Provision of Services

Provision

of Services

by a U.S.

Entity

by a U.S.

21%Entity

21%

of the transactions

covered

in APAs

executed

in sale

2023

the sale

ofprovision

tangibleofgoods

Most Most

of the transactions

covered in APAs

executed

in 2023

involve the

of involve

tangible goods

or the

services. Eighteen

the

provision

services.

Eighteen

percent

the

transactions

involve

the

use

intangible

Most

oftransactions

the transactions

in APAsproperty,

executed

in can

2023

involve

sale

of tangible

goods in APMA’s

percent

of the

involve thecovered

use of intangible

which

be among

thethe

most

challenging

transactions

property,

which can

be among

the most

challenging

APMA’s

inventory.

the provision

of services.

Eighteen

percent

of the transactions

transactions in

involve

the use

of intangible

property, which can be among the most challenging transactions in APMA’s inventory.

In the majority of APAs, the covered transactions involve numerous business functions and risks. For instance, with respect to func10

APAsinvolving

often cover

more than one

type oftypically

transaction.

tions, APAs

manufactured

products

involve a controlled group that conducts research and development (R&D),

the majority of APAs, the covered transactions involve numerous business functions and risks.

engages in product design and engineering, manufactures the product, markets and distributes the product, and performs support

For such

instance,

with

respect

to functions,

involving

manufactured

products

typically

functions

as legal,

finance,

and human

resources.APAs

Regarding

risks, the

controlled group

may assume

a varietyinvolve

of risks, including

market risks, R&D risks, financial risks, credit and collection risks, product liability risks, and general business risks. In the APA

evaluation

process, a significant amount of time and effort is devoted to understanding how functions and risks are allocated among

APAs often cover more than one type of transaction.

the controlled group of companies that are party to the covered transactions. For methods requiring the selection of a tested party, the

tested party chosen generally will be the least complex of the controlled

taxpayers.

APAs often cover more than one type of transaction.

April 15, 2024

916

Bulletin No. 2024–16

risks are allocated among the controlled group of companies that are party to the covered

transactions. For methods requiring the selection of a tested party, the tested party chosen

generally will be the least complex of the controlled taxpayers.

Types of Tested Parties

U.S. Distributor

42%

Non-U.S. Distributor

10%

All Other Types of

Tested Parties

U.S. Service Provider

12%

U.S. Manufacturer

13%

Non-U.S. Service

Provider

22%

in 2023 were

distributors,

U.S.

Consistent

with

prior

years,ofa tested

majority

of11 tested

Consistent

with prior

years,

a majority

parties

in 2023parties

were U.S. distributors,

U.S.U.S.

manufacturers,

or U.S.

service providers.

manufacturers, or U.S. service providers.

Transfer Pricing Methods Used

§ 521(b)(2)(D)(iv)

Transfer Pricing Methods Used

§ 521(b)(2)(D)(iv)

In 2023, the most commonly used transfer pricing method (TPM) for both the sale of tangible property and the use of intangible

property continued to be the comparable profits method/transactional net margin method (CPM/TNMM). The CPM/TNMM was used

2023,ofthe

most

commonly

used transfer pricing method (TPM) for both the sale of tangible

for 80Inpercent

these

types

of transactions.

property and the use of intangible property continued to be the comparable profits

As inmethod/transactional

recent years, for covered transactions

and intangible

property

that used thewas

CPM/TNMM,

the operating marnet margininvolving

methodtangible

(CPM/TNMM).

The

CPM/TNMM

used for 80

gin (OM)

is still

mosttypes

common

profit level indicator (PLI) used to benchmark results. It was used 60 percent of the time. Other

percent

ofthe

these

of transactions.

PLIs, such as the Berry Ratio and return on total cost, made up the other 40 percent. As used here, “OM” is defined as the ratio of

operating profit to sales,12 and “Berry Ratio” is defined as the ratio of gross profit to operating expenses.13 Most services transactions

As in recent years, for covered transactions involving tangible and intangible property that used

(86 percent) also used the CPM/TNMM with the OM and operating profit to operating expense being the most common PLIs (used

the CPM/TNMM,

48 percent

of the time).14 the operating margin (OM) is still the most common profit level indicator

(PLI) used to benchmark results. It was used 60 percent of the time. Other PLIs, such as the

Berry

Ratio and return

on totalSelection

cost, made

up the

other

40 of

percent.

As used

here, “OM”orisTested Party Data

Sources

of Comparables,

Comparables

Criteria,

and

Nature

Adjustments

to Comparables

§ 521(b)(2)(D)(v-vii)

defined as the ratio of operating profit to sales, and “Berry Ratio” is defined as the ratio of

For the

11 APAs executed in 2023 that involved the CPM/TNMM with a North American tested party, the most widely used data source

Not all the executed APAs involve a tested party. Whether an APA involves a tested party would depend on the

for comparables

was Standard

and Poor’s Compustat/Capital IQ database. Different sources were used in other cases (e.g., where the

transfer pricing

method used.

tested12party

was notReg.

a North

American entity or where transaction-based methods were applied). Other commonly used databases are

See Treas.

§ 1.482-5(b)(4)(ii)(A).

listed in the table below.

Table 5: Sources of Comparable Data

Bureau van Dijk (BvD) Orbis

Capitaline TP

Global Vantage

RoyaltySource

ktMINE

RoyaltyStat

Ace TP

In making comparability adjustments, typical balance sheet adjustments, as identified in Treas. Reg. §§ 1.482-1(d)(2) and 1.482-5(c)

(2)(iv), were made in most cases, including, where appropriate, adjustments for payables, receivables, inventory, and fixed assets.

In addition, where appropriate, adjustments for different accounting practices were made to convert from LIFO to FIFO inventory

accounting, and a small number of cases involved the accounting reclassification of expenses, e.g., from COGS to operating expenses.

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

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

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

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

Bulletin No. 2024–16

917

April 15, 2024

Ranges and Adjustment Mechanisms

§ 521(b)(2)(D)(viii-ix)

Most transactions covered in APAs target an interquartile range as described in Treas. Reg. § 1.482-1(e)(2)(iii)(C), a point within the

interquartile range, or another targeted arm’s length range. Where the transaction involves a royalty payment for the use of intangible

property, both specific royalty rates and ranges have been used. Where the covered transaction is the sale or license of intangible

property, and the payment for such transfer would be a royalty based solely on external comparable uncontrolled transactions, a secondary or confirming method, e.g., a test of the post-royalty operating margin or cost-plus mark-up, has sometimes also been used.

The testing periods of the APAs executed in 2023 were either a single year, the term of the APA only, or the term of the APA plus

rollback years.

APAs executed in 2023 included several mechanisms for making adjustments to the tested party’s results when the results fall outside

the agreed range or do not match the point required by the APA. Examples of the mechanisms used include an adjustment bringing

the tested party’s results for a single year to either the closer edge of the range or the median of the range, an adjustment to bring

the results over the APA term to the closer edge of the range, or an adjustment to bring the results to a specified point or royalty rate.

Critical Assumptions

§ 521(b)(2)(D)(v)

The model APA used by the IRS (included as Appendix 1 of this report) includes standard critical assumptions that there will be no

material changes to the taxpayer’s business or to its tax or financial accounting practices during the APA term. Some bilateral cases

have also included critical assumptions tied to the taxpayer’s profitability in a certain year or over the term of the APA. Pursuant to

§ 7.06(3) of Rev. Proc. 2015-41, APMA will cancel an APA in the event of a failure of a critical assumption unless the parties agree

to revise the APA.

Term Lengths of APAs Executed in 2023

§ 521(b)(2)(D)(x)

Table 6: Term Lengths of APAs Executed in 2023

Term Length (years)

Average

Number of APAs

As described in § 3.03(1) of Rev. Proc. 2015-41, taxpayers should request an APA term that will cover at least five prospective taxable

years and may also request that the APA be “rolled back” to cover one or more earlier taxable years, although the appropriate APA

term is decided on a case-by-case basis. Of the APAs executed in 2023, 19 percent included rollback years. A substantial number of

APAs with terms of greater than five years were submitted as a request for a five-year term, and the additional years were agreed to

between the taxpayer and the IRS (or, in the case of a bilateral APA, between the IRS and the foreign government upon the taxpayer’s

request) to ensure a reasonable amount of prospectivity in the APA term.

April 15, 2024

918

Bulletin No. 2024–16

Amount

TimetoTaken

to New

Complete

New APAs

and Renewal APAs

Amount

of TimeofTaken

Complete

and Renewal

§ 521(b)(2)(E)

TableTable

7: Months

to Complete

New and Renewal

APAs

ExecutedAPAs

in 2023Executed in 2023

7: Months

to Complete

New and

Renewal

Unilateral

Bilateral

Unilateral &

Unilateral & Bilateral

Bilateral

Average

Median

Average

MedianMedian

Average

Median

Average

Median

Average

Median

New New

45.2

Renewal

30.2

New & Renewal

35.8

45.234.9

30.225.2

35.831.6

34.950.0

25.236.1

31.643.7

49.9

50.0

33.1

36.1

42.6

43.7

49.4

49.9

34.9

33.1

42.5

42.6

49.449.9

34.931.8

42.542.0

49.9

31.8

42.0

Months to Complete New and Renewal APAs Executed in 2023

Months to Complete

50.0

New

40.0

30.0

Renewal

20.0

New &

Renewal

10.0

0.0

Average

Median

Unilateral

Average

Median

Bilateral

Type of APA

Average

Median

Unilateral &

Bilateral

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

Efforts to Ensure Compliance with APAs

§ 521(b)(2)(F)

As described

in § of

7.02(1)

of Rev.

Proc.

2015-41,

required

to file

annual reports

to with the

As described

in § 7.02(1)

Rev. Proc.

2015-41,

taxpayers

are taxpayers

required to fiare

le annual

reports

to demonstrate

compliance

termsdemonstrate

and conditions compliance

of their APAs. with

The filing

review

these annualof

reports

criticalThe

partsfiling

of the and

APA review

process. Through

annual

the and

terms

andofconditions

theirare

APAs.

reportthese

review,

the APMA

Program

monitorsparts

taxpayer

compliance

with APAs

on a contemporaneous

basis.

Annualthe

report review also

annual

reports

are critical

of the

APA process.

Through

annual report

review,

provides current information on the success or problems associated with the various TPMs adopted in the APA process.

APMA Program monitors taxpayer compliance with APAs on a contemporaneous basis. Annual

report

review also provides

current

on the success or problems associated with the

Nature

of Documentation

Required in

Annualinformation

Report

various TPMs adopted in the APA process.

§ 521(b)(2)(D)(xi)

APAsNature

require taxpayers

to file timely and

completeinannual

reports

describing their operations and demonstrating compliance with

of Documentation

Required

Annual

Report

the APA’s

terms and conditions. Not every annual report will include each of the items listed in Appendix C of the Model APA; items

§ 521(b)(2)(D)(xi)

are re

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