Bulletin No. 2023–42

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Bulletin No. 2023–42

October 16, 2023

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, EXCISE TAX

INCOME TAX

REG-115559-23, page 1082.

Notice 2023-65, page 1067.

This document contains proposed regulations that would provide guidance on how taxpayers will report liability for the

excise tax imposed on manufacturers, producers, or importers of certain designated drugs. The proposed regulations

affect manufacturers, producers, and importers of designated drugs that sell such drugs during certain statutory

periods. The proposed regulations also would except such

tax from semimonthly deposit requirements.

ADMINISTRATIVE, INCOME TAX

Notice 2023-69, page 1079.

Notice 2023-69 provides guidance on certain charitable

relief to aid victims of the Hawaii wildfires that began on

August 8, 2023. Under employer sponsored leave-based

donation programs, employees may elect to forgo vacation,

sick, or personal leave in exchange for cash payments made

by the employer to tax-exempt entities described in § 170(c)

of the code that provide aid to victims of the Hawaii wildfires.

This notice provides that an employee making the election

to forgo such leave will not be treated as having constructively received gross income or wages and cannot claim a

charitable contribution deduction under § 170. The employer

may deduct the cash payments as business expenses or

charitable contributions if the employer otherwise meets

the respective requirements of either § 162 or § 170 of the

Internal Revenue Code.

Finding Lists begin on page ii.

This notice provides guidance on the new energy efficient

home credit under § 45L of the Internal Revenue Code, as

amended by § 13304 of Public Law 117-169, 136 Stat.

1818, 1952 (August 16, 2022), commonly known as the

Inflation Reduction Act of 2022 (IRA). The amendments

made by § 13304 of the IRA apply to qualified new energy

efficient homes (qualified homes) acquired after December

31, 2022. The guidance provided in this notice addresses

the person that is eligible for the credit, determining the

applicable amount of the credit, energy saving requirements,

certification requirements, and substantiation requirements.

This notice also obsoletes Notice 2008-35, 2008-1 C.B.

647, and Notice 2008-36, 2008-1 C.B. 650, for qualified

homes acquired after December 31, 2022.

Notice 2023-67, page 1074.

This notice explains the circumstances under which the fouryear replacement period under section 1033(e)(2) is extended

for livestock sold on account of drought. The Appendix to

this notice contains a list of counties that experienced exceptional, extreme, or severe drought conditions during the

12-month period ending August 31, 2023. Taxpayers may

use this list to determine if any extension is available.

Rev. Proc. 2023-35, page 1079.

This revenue procedure provides that a redemption of money

market fund shares will not be treated as part of a wash sale

under § 1091 of the Internal Revenue Code.

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.

October 16, 2023

Bulletin No. 2023–42

Part III

Section 45L New Energy

Efficient Home Credit

Notice 2023-65

SECTION 1. PURPOSE

This notice provides guidance on the

new energy efficient home credit under

§ 45L of the Internal Revenue Code

(Code), as amended by § 13304 of Public

Law 117-169, 136 Stat. 1818, 1952

(August 16, 2022), commonly known

as the Inflation Reduction Act of 2022

(IRA).1 The amendments made by § 13304

of the IRA apply to qualified new energy

efficient homes acquired after December

31, 2022. The guidance provided in this

notice addresses: (i) the person that is

eligible for the credit, (ii) determining

the applicable amount of the credit, (iii)

energy saving requirements, (iv) certification requirements, and (v) substantiation

requirements. This notice also obsoletes

Notice 2008-35, 2008-1 C.B. 647, and

Notice 2008-36, 2008-1 C.B. 650, which

remain applicable for purposes of former

§ 45L.2

SECTION 2. BACKGROUND

.01 Former § 45L

(1) For purposes of the general business credit under § 38, the new energy

efficient home credit under § 45L (§ 45L

credit) has been a current year business

credit since former § 45L and § 38(b)(23)

were enacted by § 1332(a) and (b) of the

Energy Policy Act of 2005, Public Law

109-58, 119 Stat. 594, 1024 (August 8,

2005).

(2) Former § 45L(a)(1) provided that,

for purposes of § 38, in the case of an

“eligible contractor” (defined in former

§ 45L(b)(1)), the new energy efficient

home credit under former § 45L for the

taxable year is the “applicable amount”

(determined under former § 45L(a)(2))

for each “qualified new energy efficient

home” (defined in former § 45L(b)(2))

that is constructed by an eligible contractor and “acquired” (as defined in

former § 45L(b)(4)) by a person from

such eligible contractor for use as a residence during the taxable year. Former

§ 45L(c) provided the energy saving

requirements that a dwelling unit must

have met to be a qualified new energy

efficient home, as certified using the

method and in the form provided under

former § 45L(d). If a credit was allowed

under former § 45L in connection with

any expenditure for any property, former § 45L(e) provided for certain

adjustments to the basis of such property for purposes of subtitle A of the

Code. In addition, former § 45L(f) provided that no expenditures taken into

account under § 47 or § 48(a) could be

taken into account under former § 45L.

(3) As originally enacted, former

§ 45L(g) provided that the new energy

efficient home credit under former § 45L

terminated with respect to any qualified

new energy efficient home acquired after

December 31, 2007. Prior to the IRA,

former § 45L(g) was amended 10 times

between 2006 and 2020 to extend the termination of the new energy efficient home

credit, with the most recent extension

terminating for any qualified new energy

efficient home acquired after December

31, 2021.

.02 Section 45L as Amended by the IRA

(1) Section 13304 of the IRA amended

former § 45L in two ways. First, § 13304(a)

and (f) of the IRA retroactively extend the

new energy efficient home credit under

former § 45L for qualified new energy

efficient homes acquired after December

31, 2021, and on or before December 31,

2022.

(2) Second, for qualified new energy

efficient homes acquired after December

31, 2022, § 13304 of the IRA amends former § 45L in various respects. Specifically,

§ 13304 of the IRA:

(a) Changes the applicable amount

of the § 45L credit determined under

§ 45L(a)(2),

(b) Sets new energy saving requirements under § 45L(c),

basis adjustment under § 45L(e),

(d) Redesignates § 45L(g) as § 45L(h)

and adds a new § 45L(g) to provide certain prevailing wage requirements, and

(e) Amends newly redesignated

§ 45L(h) to allow the § 45L credit for qualified new energy efficient homes acquired

on or before December 31, 2032.

(3) The IRA did not amend § 45L(a)

(1), which continues to provide that, for

purposes of § 38, in the case of an eligible

contractor, the § 45L credit for the taxable

year is the applicable amount for each

qualified new energy efficient home that is

constructed by an eligible contractor and

acquired by a person from such eligible

contractor for use as a residence during

the taxable year.

(4) Section 45L(a)(2) provides that, for

purposes of § 45L(a)(1), the “applicable

amount” is:

(a) $2,500, in the case of a dwelling

unit that is eligible to participate in the

Energy Star Residential New Construction

Program or the Energy Star Manufactured

New Homes Program and meets the

requirements of § 45L(c)(1)(A) (and does

not meet the requirements of § 45L(c)(1)

(B)),

(b) $5,000, in the case of a dwelling

unit that is eligible to participate in the

Energy Star Residential New Construction

Program or the Energy Star Manufactured

New Homes Program and meets the

requirements of § 45L(c)(1)(B),

that is part of a building eligible to participate in the Energy Star Multifamily

New Construction Program and meets the

requirements of § 45L(c)(1)(A) (and does

not meet the requirements of § 45L(c)(1)

(B)), and

(d) $1,000, in the case of a dwelling

unit that is part of a building eligible to

participate in the Energy Star Multifamily

New Construction Program and meets the

requirements of § 45L(c)(1)(B).

(5) Section 45L(b) provides certain

definitions for purposes of § 45L. Section

45L(b)(1) defines the term “eligible contractor” as:

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

All references to “former § 45L” in this notice refer to § 45L as applicable to qualified new energy efficient homes acquired on or before December 31, 2022.

Bulletin No. 2023–42

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October 16, 2023

(a) The person that constructed the

qualified new energy efficient home, or

(b) In the case of a qualified new

energy efficient home that is a manufactured home, the manufactured home producer of such home.

(6) Section 45L(b)(2) defines the term

“qualified new energy efficient home”

(qualified home) as a dwelling unit:

(a) Located in the United States,

(b) The construction of which is substantially completed after August 8, 2005,

and

requirements of § 45L(c).

(7) Section 45L(b)(3) provides that

the term “construction” includes substantial reconstruction and rehabilitation

and § 45L(b)(4) provides that the term

“acquire” includes purchase.

(8) Section 45L(c) provides the energy

saving requirements that a dwelling unit

must meet to be a qualified home. Section

45L(c)(1)(A) generally provides that a

dwelling unit meets the requirements

of § 45L(c)(1)(A) if such dwelling unit

meets the requirements of § 45L(c)(2) or

(3) (whichever is applicable). A dwelling

unit meets the requirements of § 45L(c)(1)

(B) if such dwelling unit is certified as a

“zero energy ready home” under the “zero

energy ready home program” (ZERH program) of the U.S. Department of Energy

(DOE) as in effect on January 1, 2023 (or

any successor program determined by the

Secretary of the Treasury or her delegate

(Secretary)).

(9) A dwelling unit meets the requirements of § 45L(c)(2) if:

(a) In the case of a dwelling unit

acquired before January 1, 2025, the

dwelling unit meets the Energy Star

Single-Family New Homes National

Program Requirements 3.1, and the most

recent Energy Star Single-Family New

Homes Program Requirements applicable

to the location of such dwelling unit (as in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date such dwelling unit was acquired),

(b) In the case of a dwelling unit

acquired after December 31, 2024, the

dwelling unit meets the Energy Star

Single-Family New Homes National

Program Requirements 3.2, and the most

recent Energy Star Single-Family New

Homes Program Requirements applicable

October 16, 2023

to the location of such dwelling unit (as in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date such dwelling unit was acquired),

recent Energy Star Manufactured Home

National Program Requirements as in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date such dwelling unit is acquired.

(10) A dwelling unit meets the requirements of § 45L(c)(3) if:

(a) The dwelling unit meets the

most recent Energy Star Multifamily

New Construction National Program

Requirements (as in effect on either

January 1, 2023, or January 1 of three calendar years prior to the date the dwelling

unit was acquired, whichever is later), and

(b) The dwelling unit meets the

most recent Energy Star Multifamily

New Construction Regional Program

Requirements applicable to the location of

such dwelling unit (as in effect on either

January 1, 2023, or January 1 of three calendar years prior to the date the dwelling

unit was acquired, whichever is later).

(11) Section 45L(d)(1) provides that

the certification described in § 45L(c)

must be made in accordance with guidance prescribed by the Secretary, after

consultation with the Secretary of Energy,

and that such guidance is to specify procedures and methods for calculating energy

and cost savings. Section 45L(d)(2) provides that any certification described in

§ 45L(c) must be made in writing in a

manner that specifies in readily verifiable fashion the energy efficient building

envelope components and energy efficient

heating or cooling equipment installed

and their respective rated energy efficiency performance.

(12) Section 45L(e) provides that for

purposes of subtitle A of the Code (except

for purposes of determining the adjusted

basis of any building under § 42, relating to the low-income housing credit), if

a § 45L credit is allowed in connection

with any expenditure for any property,

the increase in the basis of such property

that would (but for § 45L(e)) result from

such expenditure must be reduced by the

amount of the § 45L credit so determined.

In addition, § 45L(f) provides that for purposes of § 45L, no expenditures taken into

1068

account under § 47 or § 48(a) can be taken

into account under § 45L.

(13) Section 45L(g) adds a prevailing wage requirement that increases

the amount of the § 45L credit allowed.

Section 45L(g)(1) provides that in the

case of a “qualifying residence” described

in § 45L(a)(2)(B) meeting the prevailing

wage requirements in § 45L(g)(2)(A), the

§ 45L credit amount allowed with respect

to such residence is:

(a) $2,500, in the case of a residence

that meets the requirements of § 45L(c)(1)

(A) (and does not meet the requirements

of § 45L(c)(1)(B)), and

(b) $5,000, in the case of a residence

that meets the requirements of § 45L(c)(1)

(B).

(14) The requirements set forth in

§ 45L(g)(2)(A) are that the taxpayer must

ensure that any laborers and mechanics

employed by the taxpayer, any contractor, or subcontractor in the construction

of any qualified residence are paid wages

at rates not less than the prevailing rates

for construction, alteration, or repair of a

similar character in the locality in which

the qualified residence is located as most

recently determined by the Secretary of

Labor, in accordance with subchapter IV

of chapter 31 of title 40, United States

Code, commonly known as the DavisBacon Act. Section 45L(g)(2)(B) provides

that rules similar to the rules of § 45(b)(7)

(B), which pertains to the correction and

penalty related to the failure to satisfy

prevailing wage requirements, apply for

purposes of the prevailing wage requirements under § 45L(g). Section 45L(g)(3)

authorizes the Secretary to issue such regulations or other guidance as the Secretary

determines necessary to carry out the

purposes of § 45L(g), including regulations or other guidance that provides for

requirements for recordkeeping or information reporting for purposes of administering the requirements of § 45L(g).

(15) As amended and redesignated by

§ 13304 of the IRA, § 45L(h) provides

that § 45L is not applicable to any qualified home acquired after December 31,

2032.

.03 Guidance under Former § 45L

(1) On March 13, 2006, the

Department of the Treasury (Treasury

Department) and the Internal Revenue

Service

(IRS)

published

Notice

Bulletin No. 2023–42

2006-27, 2006-1 C.B. 626, and Notice

2006-28, 2006-1 C.B. 628. Notice 200627 and Notice 2006-28 were updated by

Announcement 2006-88, 2006-2 C.B.

910, published on November 13, 2006.

Notice 2006-27 and Notice 2006-28, as

updated, provided guidance on the calculation of a dwelling unit’s heating and

cooling energy consumption, and on the

public list of software programs used to

calculate energy consumption. Notice

2006-28 is specific to manufactured

homes.

(2) On March 24, 2008, the Treasury

Department and the IRS published Notice

2008-35, 2008-1 C.B. 647, and Notice

2008-36, 2008-1 C.B. 650. Notice 200835 and Notice 2008-36 superseded Notice

2006-27 and Notice 2006-28, respectively,

by substantially republishing the guidance

contained in those publications while

clarifying the meaning of certain terms

used in Notice 2006-27 and Notice 200628 and the process for removing software from the list of approved software.

Notice 2008-36 is specific to manufactured homes. Because Notice 2008-35 and

Notice 2008-36 provide guidance relating to former § 45L, this notice obsoletes

Notice 2008-35 and Notice 2008-36 for

qualified homes acquired after December

31, 2022. Notice 2008-35 and Notice

2008-36 remain applicable for qualified

homes acquired on or before December

31, 2022.

.04 Post-IRA § 45L Guidance

(1) On October 24, 2022, the Treasury

Department and the IRS published Notice

2022-48, 2022-43 I.R.B. 316, which

included a request for comments on the

amendments to § 45L by § 13304 of the

IRA. Comments received in response to

Notice 2022-48 were considered in the

drafting of this notice.

(2) On November 30, 2022, the

Treasury Department and the IRS published Notice 2022-61 in the Federal

87 F.R. 75141 (Dec. 7, 2022); 2022-52

I.R.B. 560), which contains initial guidance with respect to the prevailing wage

requirements under § 45L(g). On August

30, 2023, the Treasury Department and

the IRS published a notice of proposed

rulemaking (REG-100908-23) in the

Federal Register (88 F.R. 60018) providing proposed regulations that would

add proposed rules to the Income Tax

Regulations in 26 CFR part 1 related to

the prevailing wage requirements, including under § 45L(g) as provided in proposed § 1.45L-3.

SECTION 3. DETERMINING THE

APPLICABLE AMOUNT OF THE

§ 45L CREDIT

.01 In General. The § 45L credit for the

taxable year is the applicable amount for

each qualified home that is constructed by

an eligible contractor and acquired by a

person from such eligible contractor after

December 31, 2022, and before January

1, 2033, for use as a residence during the

taxable year for which the taxpayer is

claiming the credit under § 45L. The eligible contractor is the taxpayer for purposes

of the § 45L credit. See section 5.02 of

this notice for the definition of an eligible

contractor.

.02 Applicable Amount for a Dwelling

Unit Meeting the Single-Family Home

Requirements under § 45L(c)(2)

(1) In General. The applicable amount

for a dwelling unit that is eligible to participate in the Energy Star Residential New

Construction Program or the Energy Star

Manufactured New Homes Program is:

(a) $2,500, for a dwelling unit that

meets the requirements of § 45L(c)(2)

and does not meet the requirements of

§ 45L(c)(1)(B), or

(b) $5,000, for a dwelling unit that

meets the requirements of § 45L(c)(1)(B).

(2) Eligible to Participate

(a) A dwelling unit is eligible to participate in the Energy Star Residential

New Construction Program if it meets

the eligibility requirements provided for

this program on the “About ENERGY

STAR – Tax Credits for Home Builders”

webpage (Energy Star Webpage)3 of the

Environmental Protection Agency (EPA).

(b) A dwelling unit is eligible to participate in the Energy Star Manufactured

New Homes Program if it meets the eligibility requirements provided for this program on the Energy Star Webpage.

.03 Applicable Amount for a Dwelling

Unit Meeting the Multifamily Home

Requirements under § 45L(c)(3)

(1) In General. Except as described

in section 3.04 of this notice, the applicable amount for a dwelling unit that is

part of a building eligible to participate

in the Energy Star Multifamily New

Construction Program is:

(a) $500, for a dwelling unit that meets

the requirements of § 45L(c)(3) and does

not meet the requirements of § 45L(c)(1)

(B), or

(b) $1,000, for a dwelling unit that

meets the requirements of § 45L(c)(1)(B).

(2) Eligible to Participate. A dwelling

unit is part of a building eligible to participate in the Energy Star Multifamily

New Construction Program if the building

meets the eligibility requirements provided for this program on the Energy Star

Webpage.

.04 Increase in Applicable Amount for

Multifamily Homes Meeting Prevailing

Wage Requirements. In the case of a dwelling unit that is part of a building eligible to

participate in the Energy Star Multifamily

New Construction Program and that meets

the requirements of § 45L(c)(3) (and does

not meet the requirements of § 45L(c)

(1)(B)) and the prevailing wage requirements of § 45L(g)(2)(A) (Prevailing Wage

Requirements), the applicable amount

is $2,500. In the case of a dwelling unit

that is part of a building eligible to participate in the Energy Star Multifamily New

Construction Program and that meets the

requirements of § 45L(c)(1)(B) and the

Prevailing Wage Requirements, the applicable amount is $5,000. Guidance on the

Prevailing Wage Requirements is provided in Notice 2022-61 and in the notice

of proposed rulemaking (REG-10090823) published in the Federal Register on

August 30, 2023.

SECTION 4. ENERGY SAVING

REQUIREMENTS

.01 In General. To meet the energy saving requirements of § 45L(c), a dwelling

unit must meet the single-family home

requirements of § 45L(c)(2) or the multifamily home requirements of § 45L(c)

Available at https://www.energystar.gov/about/federal_tax_credits/federal_tax_credit_archives/tax_credits_home_builders. Should this link become inactive, visit the current https://www.

energystar.gov webpage for the requirements at issue.

Bulletin No. 2023–42

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October 16, 2023

(3) (whichever is applicable), or meet the

zero energy ready home requirements of

§ 45L(c)(1)(B).

.02 Single-Family Home Requirements

under § 45L(c)(2)

(1) In General. A dwelling unit

meets the energy saving requirements of

§ 45L(c)(2) if:

(a) In the case of a dwelling unit

acquired before January 1, 2025, the

dwelling unit meets the Energy Star

Single-Family New Homes National

Program Requirements 3.1, and the most

recent Energy Star Single-Family New

Homes Program Requirements applicable

to the location of such dwelling unit (as in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date the dwelling unit was acquired),

(b) In the case of a dwelling unit

acquired after December 31, 2024, the

dwelling unit meets the Energy Star

Single-Family New Homes National

Program Requirements 3.2, and the most

recent Energy Star Single-Family New

Homes Program Requirements applicable

to the location of such dwelling unit (as in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date the dwelling unit was acquired),

recent Energy Star Manufactured Home

National Program Requirements as in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date such dwelling unit is acquired.

(2) Certification

(a) In General. As provided on the

Energy Star Webpage, the Energy Star

Single-Family New Homes National

Program Requirements 3.1 and 3.2, the

Energy Star Single-Family New Homes

Program Requirements applicable to the

location of such dwelling unit, and the

Energy Star Manufactured Home National

Program Requirements (together, the

Energy Star Single-Family Home Program

Requirements) each require a dwelling

unit to be certified as part of meeting such

requirements. A dwelling unit will be considered to meet these respective program

requirements for purposes of § 45L(c)

(2) if it is certified under the rules of such

respective program requirements. See section 6 of this notice for more information

on certification requirements.

October 16, 2023

(b) Certification of Prior Versions

through Later Versions. As provided on

the Energy Star Webpage, a dwelling

unit certified under a currently effective

version of one of the Energy Star SingleFamily Home Program Requirements by

definition also is certified under any prior

version of the same program requirements.

For example, a dwelling unit certified

under the Energy Star Single-Family New

Homes National Program Requirements

3.2 also is considered certified under the

Energy Star Single-Family New Homes

National Program Requirements 3.1. All

effective versions of Energy Star SingleFamily Home Program Requirements are

provided on the Energy Star Webpage.

and Regional Program Requirements. As

provided on the Energy Star Webpage,

the EPA will deem a dwelling unit certified under certain Energy Star SingleFamily New Homes National Program

Requirements also to be certified under

certain Energy Star Single-Family New

Homes Regional Program Requirements,

and vice versa. To determine which

deemed certifications correspond to which

Energy Star Program Requirements, see

the Energy Star Webpage.

(3) Energy Star Single-Family New

Homes National Program Requirements.

Energy Star Single-Family New Homes

National Program Requirements are provided on the Energy Star Webpage. As

provided on the Energy Star Webpage,

for purposes of § 45L(c)(2)(A)(ii), if a

dwelling unit is not located in one of the

States specified by the effective Energy

Star Single-Family New Homes Regional

Program Requirements, then the most

recent Energy Star Single-Family New

Homes Program Requirements applicable to the location of the dwelling unit

will be the effective Energy Star SingleFamily New Homes National Program

Requirements.

(4) Energy Star Single-Family New

Homes Regional Program Requirements.

Energy Star Single-Family New Homes

Regional Program Requirements are provided on the Energy Star Webpage. As

provided on the Energy Star Webpage,

for purposes of § 45L(c)(2)(A)(ii), if

a dwelling unit is located in one of the

States specified by the effective Energy

Star Single-Family New Homes Regional

1070

Program Requirements, then the most

recent Energy Star Single-Family New

Homes Program Requirements applicable

to the location of a dwelling unit will be the

Energy Star Single-Family New Homes

Regional Program Requirements that

apply to the dwelling unit. To determine

which Energy Star Single-Family New

Homes Regional Program Requirements

are in effect on the later of January 1,

2023, or January 1 of two calendar years

prior to the date the dwelling unit was

acquired, see the Energy Star Webpage.

(5) Energy Star Manufactured Home

National Program Requirements. Energy

Star Manufactured Home National

Program Requirements are provided on

the Energy Star Webpage. To determine

which Energy Star Manufactured Home

National Program Requirements are in

effect on the later of January 1, 2023, or

January 1 of two calendar years prior to

the date the dwelling unit is acquired, see

the Energy Star Webpage.

(6) Examples

(a) Example 1. A dwelling unit meets the eligibility requirements provided for the Energy Star

Residential New Construction Program on the

Energy Star Webpage. The dwelling unit is not

located in one of the States specified by the effective

Energy Star Single-Family New Homes Regional

Program Requirements, as provided on the Energy

Star Webpage. The dwelling unit is certified in accordance with section 6 of this notice under the Energy

Star Single-Family New Homes National Program

Requirements 3.1. The eligible contractor sells the

dwelling unit to a person for use as a residence on

January 1, 2024. Under these facts, the dwelling unit

meets the energy saving requirements of § 45L(c)(2).

(b) Example 2. The facts are the same as in

Example 1, except that the dwelling unit is certified

in accordance with section 6 of this notice under the

Energy Star Single-Family New Homes National

Program Requirements 3.2. Under these facts, the

dwelling unit meets the energy saving requirements

of § 45L(c)(2).

Example 1, except that: (i) the dwelling unit is

located in one of the States specified by the effective

Energy Star Single-Family New Homes Regional

Program Requirements, and is certified in accordance with section 6 of this notice under the most

recent of such program requirements (as in effect

on January 1, 2023), as provided on the Energy Star

Webpage, and (ii) the dwelling unit is deemed also

to be certified under the Energy Star Single-Family

New Homes National Program Requirements 3.1, as

provided on the Energy Star Webpage. Under these

facts, the dwelling unit meets the energy saving

requirements of § 45L(c)(2).

.03 Multifamily Home Requirements

under § 45L(c)(3)

Bulletin No. 2023–42

(1) In General. A dwelling unit

meets the energy saving requirements of

§ 45L(c)(3) if such dwelling unit meets:

(a) The most recent Energy Star

Multifamily New Construction National

Program Requirements (as in effect on

either January 1, 2023, or January 1 of

three calendar years prior to the date the

dwelling unit was acquired, whichever is

later), and

(b) The most recent Energy Star

Multifamily New Construction Regional

Program Requirements applicable to the

location of such dwelling unit (as in effect

on either January 1, 2023, or January 1 of

three calendar years prior to the date the

dwelling unit was acquired, whichever is

later).

(2) Certification

(a) In General. As provided on the

Energy Star Webpage, the Energy Star

Multifamily New Construction National

Program Requirements and the Energy

Star Multifamily New Construction

Regional Program Requirements applicable to the location of such dwelling unit

(together, the Energy Star Multifamily

Home Program Requirements) each

require a dwelling unit to be certified as

part of meeting such requirements. A

dwelling unit will be considered to meet

these respective program requirements for

purposes of § 45L(c)(3) if it is certified

under the rules of such respective program requirements. See section 6 of this

notice for more information on certification requirements.

(b) Certification of Prior Versions

through Later Versions. As provided on

the Energy Star Webpage, a dwelling unit

certified under a currently effective version of one of the Energy Star Multifamily

Home Program Requirements by definition also is certified under any prior

version of the same program requirements. For example, a dwelling unit certified under the Energy Star Multifamily

New Construction National Program

Requirements Version 1.2 also is considered certified under the Energy Star

Multifamily New Construction National

Program Requirements Version 1.1.

and Regional Program Requirements. As

provided on the Energy Star Webpage, the

EPA will deem a dwelling unit certified

under certain Energy Star Multifamily

New Construction National Program

Requirements also to be certified

under certain Energy Star Multifamily

New Construction Regional Program

Requirements, and vice versa. To determine which deemed certifications correspond to which Energy Star Program

Requirements, see the Energy Star

Webpage.

(3) Energy Star Multifamily New

Construction

National

Program

Requirements. Energy Star Multifamily

New Construction National Program

Requirements are provided on the Energy

Star Webpage. To determine which Energy

Star Multifamily New Construction

National Program Requirements are in

effect on either January 1, 2023, or January

1 of three calendar years prior to the date

the dwelling unit was acquired, whichever

is later, see the Energy Star Webpage.

(4) Energy Star Multifamily New

Construction

Regional

Program

Requirements. Effective Energy Star

Multifamily New Construction Regional

Program Requirements are provided on

the Energy Star Webpage. As provided

on the Energy Star Webpage, for purposes of § 45L(c)(3)(B), the Energy Star

Multifamily New Construction Regional

Program Requirements apply to a dwelling unit located in one of the States

specified by the effective Energy Star

Multifamily New Construction Regional

Program Requirements. If a dwelling unit

is not located in one of the States specified

by the effective Energy Star Multifamily

New Construction Regional Program

Requirements, § 45L(c)(3)(B) does not

apply. To determine which Energy Star

Multifamily New Construction Regional

Program Requirements are in effect on

either January 1, 2023, or January 1 of

three calendar years prior to the date the

dwelling unit was acquired, whichever is

later, see the Energy Star Webpage.

(5) Examples

(a) Example 1. A dwelling unit is part of a building that meets the eligibility requirements provided

for the Energy Star Multifamily New Construction

Program on the Energy Star Webpage. The dwelling

unit is not located in one of the States specified by the

effective Energy Star Multifamily New Construction

Regional Program Requirements, as provided on

the Energy Star Webpage. The dwelling unit is certified in accordance with section 6 of this notice

under the most recent Energy Star Multifamily New

Construction National Program Requirements (as in

effect on January 1, 2023). The eligible contractor

sells the dwelling unit to a person for use as a residence on January 1, 2024. Under these facts, the

dwelling unit meets the energy saving requirements

of § 45L(c)(3).

(b) Example 2. The facts are the same as in

Example 1, except that: (i) the dwelling unit is

located in one of the States specified by the effective

Energy Star Multifamily New Construction Regional

Program Requirements, and is certified in accordance

with section 6 of this notice under the most recent of

such program requirements (as in effect on January

1, 2023), as provided on the Energy Star Webpage,

and (ii) the dwelling unit is deemed also to be certified under the most recent Energy Star Multifamily

New Construction National Program Requirements

(as in effect on January 1, 2023), as provided on the

Energy Star Webpage. Under these facts, the dwelling unit meets the energy saving requirements of

§ 45L(c)(3).

.04 Zero Energy Ready Home Program

Requirements under § 45L(c)(1)(B)

(1) In General. A dwelling unit meets

the energy saving requirements under

§ 45L(c)(1)(B) if such dwelling unit is certified as a zero energy ready home under

the ZERH program established by the

DOE as in effect on January 1, 2023 (or

any successor program determined by the

Secretary). ZERH program requirements,

including effective dates and certification

requirements by building type, are provided on the DOE webpage, “DOE Zero

Energy Ready Home (ZERH) Program

Requirements” (ZERH Webpage).4 See

section 6 of this notice for more information on certification requirements.

(2) ZERH Program in Effect;

Determination of Successor Program. For

purposes of establishing the ZERH program in effect under § 45L(c)(1)(B), the

Secretary has determined:

(a) That the program identified on the

ZERH Webpage (or any successor DOE

webpage) is in effect and that successor

ZERH programs will be in effect as of the

date indicated on the ZERH Webpage (or

any successor DOE webpage), and

(b) That should the DOE cease identifying ZERH programs on the DOE webpage and instead provide successor ZERH

programs in an alternative, publicly

Available at https://www.energy.gov/eere/buildings/doe-zero-energy-ready-home-zerh-program-requirements. Should this link become inactive, visit the current https://www.energy.gov

webpage provided for the requirements at issue.

Bulletin No. 2023–42

1071

October 16, 2023

available DOE source, that successor

ZERH programs will be in effect as of the

date indicated in the alternative, publicly

available DOE source.

(3) Example. A dwelling unit is certified on

December 23, 2023, in accordance with section 6 of

this notice as a zero energy ready home under the

ZERH program in effect on January 1, 2023 (as provided on the ZERH Webpage, and as determined by

the effective dates provided under section 4.04 of

this notice). The eligible contractor sells the dwelling unit to a person for use as a residence on July 30,

2024. Under these facts, the dwelling unit meets the

energy saving requirements of § 45L(c)(1)(B).

SECTION 5. DEFINITIONS

.01 Acquired. The term “acquired”

includes purchased. The IRS also will

consider a qualified home that is leased

by a person from an eligible contractor

for use as a residence during the taxable year as “acquired” for purposes

of § 45L(a)(1)(B). A qualified home is

not acquired by a person from an eligible contractor if the eligible contractor

retains the home for use as a residence.

A qualified home that is a manufactured

home may be acquired directly or indirectly from an eligible contractor. A qualified home that is a manufactured home is

acquired indirectly from an eligible contractor for use as a residence if the person

that produced the manufactured home

sells it to an intermediary (for example,

a dealer of manufactured homes) and

the intermediary (or the last of multiple

intermediaries) sells or leases the manufactured home to another person for use

as a residence. See section 7.03 of this

notice for a safe harbor permitting an

eligible contractor to rely on a dealer’s

statement concerning a sale by the dealer

of manufactured homes.

.02 Eligible Contractor. An eligible

contractor is the person that constructed

the qualified home and owned and had

a basis in the qualified home during its

construction, or, in the case of a qualified

home that is a manufactured home, the person that produced such home and owned

and had a basis in such home during its

production. For example, if a person that

owns and has a basis in a qualified home

during its construction hires a third-party

contractor to construct the home, the person that hires the third-party contractor is

the eligible contractor and the third-party

contractor is not an eligible contractor.

October 16, 2023

.03 Qualified New Energy Efficient

Home; Qualified Home. The terms “qualified new energy efficient home” and “qualified home” mean a dwelling unit located

in the United States, the construction of

which is substantially completed after

August 8, 2005, that meets the energy saving requirements of § 45L(c) (see section

4 of this notice).

.04 Qualifying Residence; Qualified

Residence. The terms “qualifying residence” and “qualified residence” used in

§ 45L(g)(1) and § 45L(g)(2)(A), respectively, each refer to a dwelling unit

described in § 45L(a)(2)(B).

.05 United States. The term “United

States” used in § 45L(b)(2)(A) means

United States as defined in § 7701(a)(9),

which includes only the States and the

District of Columbia.

SECTION 6. CERTIFICATION

.01 In General. An eligible contractor

must obtain any certification described

in § 45L(c)(1) and sections 4.02(2),

4.03(2), and 4.04(1) of this notice with

respect to a dwelling unit before claiming the § 45L credit. An eligible contractor is not required to file the certification

with the return on which the credit is

claimed, but should keep the certification

as required under § 6001 (see section 7

of this notice for additional information

on substantiation requirements). An eligible contractor must follow any procedures outlined in guidance and applicable

forms and instructions provided by the

IRS Commissioner with respect to § 45L.

The guidance pertaining to certification in

this notice was prepared after consultation

with the Secretary of Energy in accordance with § 45L(d).

.02

Energy

Star

Certification

Requirements. Certification requirements

for the effective Energy Star program are

provided on the Energy Star Webpage.

.03 ZERH Certification Requirements.

Certification requirements for the effective ZERH program are provided on the

ZERH Webpage.

.04 Eligible Certifier. For purposes of

the credit requirements in place prior to

the enactment of the IRA, Notice 2008-35

and Notice 2008-36 provide that a certification must be prepared by an “eligible

certifier.” Those notices do not apply for

1072

purposes of any qualified homes acquired

after December 31, 2022. For purposes of

preparing the certification required under

Energy Star and ZERH program requirements for qualified homes acquired after

December 31, 2022, rules for the person

eligible to issue a certification are under

the respective Energy Star and ZERH program requirements.

.05 Software Programs. For purposes

of the credit requirements in place prior

to the enactment of the IRA, Notice 200835 and Notice 2008-36 include rules for

approved software that may be used to

calculate energy consumption for purposes of providing a certification. Those

notices do not apply for purposes of any

qualified homes acquired after December

31, 2022. For purposes of preparing the

certification required under Energy Star

and ZERH program requirements for

qualified homes acquired after December

31, 2022, rules for the software to be used

for purposes of providing a certification

are under the respective Energy Star and

ZERH program requirements.

.06 Safe Harbor for Certification of

Energy Star and ZERH under § 45L(d).

The IRS will deem a dwelling unit to

meet any certification requirements under

§ 45L(d) if:

(1) In the case of a dwelling unit that

meets the requirements of § 45L(c)(1)(A),

it is certified under the rules of the Energy

Star program requirements as provided in

section 6.02 of this notice, or

(2) In the case of a dwelling unit that

meets the requirements of § 45L(c)(1)(B),

it is certified as a zero energy ready home

under the ZERH program as provided in

section 6.03 of this notice.

SECTION 7. SUBSTANTIATION

.01 In General. An eligible contractor claiming a credit under § 45L must

meet the general recordkeeping requirements under § 6001 to substantiate that

the requirements of § 45L have been met.

Section 6001 provides that every person

liable for any tax imposed by the Code,

or for the collection thereof, must keep

such records as the Secretary may from

time to time prescribe. Section 1.60011(a) provides that any person subject to

income tax under the Code, or any person

required to file a return of information

Bulletin No. 2023–42

with respect to income, must keep such

permanent books of account or records

as are sufficient to establish the amount

of gross income, deductions, credits, or

other matters required to be shown by

such person in any return of such tax or

information. Section 1.6001-1(e) provides

that the books and records required by

§ 1.6001-1 must be retained so long as the

contents thereof may become material in

the administration of any internal revenue

law.

.02 Minimum Requirements. To meet

the substantiation requirements described

in section 7.01 of this notice, an eligible

contractor must retain, at a minimum:

(1) Any Energy Star or ZERH certification described in § 45L(c)(1) and section

6 of this notice including the date of such

certification,

(2) If applicable, a dealer’s statement

described in section 7.03 of this notice,

and

(3) Books or records sufficient to establish the following:

(a) The address of the qualified home,

and that such home is located in the United

States (see definition in section 5.05 of

this notice),

(b) That the taxpayer is an eligible contractor as defined in section 5.02 of this

notice,

acquired by a person from the eligible

contractor for use as a residence during

the taxable year for which the taxpayer is

claiming the § 45L credit, and the name

of the person that acquired it (except with

respect to a manufactured home for which

the eligible contractor retains a dealer’s

statement described in section 7.03 of this

notice), and

(d) If applicable, that the prevailing

wage requirements as described in section

3.04 of this notice with respect to a qualified home are met.

.03 Safe Harbor for Sales to Dealers

(1) In General. In the case of a manufactured home sold by an eligible contractor to a dealer of manufactured homes, the

eligible contractor may rely on a statement

by the dealer to establish the date on which

a manufactured home was acquired, that it

is located in the United States, and that it

was acquired for use as a residence, if the

eligible contractor retains the statement

in accordance with the recordkeeping

Bulletin No. 2023–42

requirements of § 6001 and section 7.01

of this notice.

(2) Content of Statement. The eligible

contractor may not rely on the statement

by the dealer unless the statement specifies the date of the retail sale of the manufactured home, that the dealer delivered

the manufactured home to the purchaser

at an address in the United States, and that

the dealer has no knowledge of any information suggesting that the purchaser will

use the manufactured home other than as

a residence. The statement also must contain the following information:

(a) The name, address, and telephone

number of the dealer.

(b) If the manufactured home was

passed through any intermediaries

between the initial purchase from the

eligible contractor to the ultimate acquisition by the person that acquired the

home for use as a residence, the name,

address, and telephone number of each

such intermediary.

statement made by the dealer and any

accompanying documents, signed by a

person currently authorized to bind the

dealer in such matters, in the following

form:

“Under penalties of perjury, I declare

that, to the best of my knowledge and

belief, the facts presented with respect to

this sale transaction are true, correct, and

complete.”

SECTION 8. PAPERWORK

REDUCTION ACT

The Paperwork Reduction Act of 1995

(44 U.S.C. §§ 3501-3520) (PRA) requires

a Federal Agency to obtain the approval

of the Office of Management and Budget

(OMB) before collecting information

from the public, whether such collection

of information is mandatory, voluntary, or

required to obtain or retain a benefit.

This notice contains recordkeeping

requirements and third-party disclosures

that are required to claim the § 45L credit.

These collections of information generally

would be used by the IRS for tax compliance purposes and by taxpayers to facilitate proper reporting and compliance. A

Federal agency may not conduct or sponsor, and a person is not required to respond

to, a collection of information unless the

1073

collection of information displays a valid

OMB control number.

The recordkeeping requirements provided in sections 6 and 7 of this notice

are considered general tax records under

§ 1.6001-1. These records are required for

the IRS to validate that eligible contractors have met the requirements of § 45L,

including that a qualified home meets the

energy saving requirements of § 45L(c).

For PRA purposes, general tax records are

already approved by OMB under control

number 1545–0123 for business filers,

control number 1545–0074 for individual

filers, and control number 1545-1994 for

trust/estate filers.

Sections 6 and 7 of this notice contain

third-party disclosures to dealers of manufactured homes, and to the DOE and EPA

for purposes of obtaining the certifications

required to demonstrate that a dwelling

unit meets the applicable Energy Star or

ZERH program requirements. These certifications are included within the instructions for Form 8908, Energy Efficient

Home Credit, which is approved by the

OMB under control number 1545-1979.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and

tax return information are confidential, as

required by § 6103.

SECTION 9. EFFECT ON OTHER

DOCUMENTS

Notice 2008-35 and Notice 2008-36 are

obsoleted for any qualified home acquired

after December 31, 2022.

SECTION 10. EFFECTIVE DATE

This notice applies to any qualified

home acquired after December 31, 2022

and before January 1, 2033.

SECTION 11. DRAFTING

INFORMATION

The principal author of this notice is

the Office of Associate Chief Counsel

(Passthroughs & Special Industries).

For further information regarding this

notice, contact the Office of Associate

Chief Counsel (Passthroughs & Special

October 16, 2023

Industries) at (202) 317-6853 (not a tollfree number).

Extension of Replacement

Period for Livestock Sold

on Account of Drought

Notice 2023-67

SECTION 1. PURPOSE

This notice provides guidance regarding an extension of the replacement period

under § 1033(e) of the Internal Revenue

Code for livestock sold on account of

drought in specified counties.

SECTION 2. BACKGROUND

.01 Nonrecognition of Gain on

Involuntary Conversion of Livestock.

Section 1033(a) generally provides for

nonrecognition of gain when property is

involuntarily converted and replaced with

property that is similar or related in service or use. Section 1033(e)(1) provides

that a sale or exchange of livestock (other

than poultry) held by a taxpayer for draft,

breeding, or dairy purposes in excess of

the number that would be sold following

the taxpayer’s usual business practices is

treated as an involuntary conversion if the

livestock is sold or exchanged solely on

account of drought, flood, or other weather-related conditions.

.02 Replacement Period.

Section

1033(a)(2)(A) generally provides that

gain from an involuntary conversion is

recognized only to the extent the amount

realized on the conversion exceeds the

cost of replacement property purchased

during the replacement period. If a sale

or exchange of livestock is treated as an

involuntary conversion under § 1033(e)

(1) and is solely on account of drought,

flood, or other weather-related conditions that result in the area being designated as eligible for assistance by the

federal government, § 1033(e)(2)(A) provides that the replacement period ends

four years after the close of the first taxable year in which any part of the gain

from the conversion is realized. Section

1033(e)(2)(B) provides that the Secretary

may extend this replacement period on a

regional basis for such additional time as

the Secretary determines appropriate if the

weather-related conditions that resulted in

the area being designated as eligible for

assistance by the federal government continue for more than three years. Section

1033(e)(2) is effective for any taxable

year with respect to which the due date

(without regard to extensions) for a taxpayer’s return is after December 31, 2002.

SECTION 3. EXTENSION OF

REPLACEMENT PERIOD UNDER

§ 1033(e)(2)(B)

Notice 2006-82, 2006-2 C.B. 529,

provides for extensions of the replacement period under § 1033(e)(2)(B). If a

sale or exchange of livestock is treated as

an involuntary conversion on account of

drought and the taxpayer’s replacement

period is determined under § 1033(e)

(2)(A), the replacement period will be

extended under § 1033(e)(2)(B) and

Notice 2006-82 until the end of the taxpayer’s first taxable year ending after

the first drought-free year for the applicable region. For this purpose, the first

drought-free year for the applicable

region is the first 12-month period that

(1) ends August 31; (2) ends in or after

the last year of the taxpayer’s four-year

replacement period determined under

§ 1033(e)(2)(A); and (3) does not include

any weekly period for which exceptional,

extreme, or severe drought is reported

for any location in the applicable region.

The applicable region is the county that

experienced the drought conditions on

account of which the livestock was sold

or exchanged and all counties that are

contiguous to that county.

A taxpayer may determine whether

exceptional, extreme, or severe drought

is reported for any location in the

applicable region by reference to U.S.

Drought Monitor maps that are produced

on a weekly basis by the National Drought

Mitigation Center. U.S. Drought Monitor

maps are archived at http://droughtmonitor.unl.edu/Maps/MapArchive.aspx.

In addition, Notice 2006-82 provides

that the Internal Revenue Service will

publish in September of each year a list of

counties1 for which exceptional, extreme,

or severe drought was reported during the

preceding 12 months. Taxpayers may use

this list instead of U.S. Drought Monitor

maps to determine whether exceptional,

extreme, or severe drought has been

reported for any location in the applicable

region.

The Appendix to this notice contains

the list of counties for which exceptional,

extreme, or severe drought was reported

during the 12-month period ending

August 31, 2023. Under Notice 200682, the 12-month period ended on August

31, 2023, is not a drought-free year for

an applicable region that includes any

county on this list. Accordingly, for a

taxpayer who qualified for a four-year

replacement period for livestock sold or

exchanged on account of drought and

whose replacement period is scheduled

to expire at the end of 2023 (or, in the

case of a fiscal year taxpayer, at the end

of the taxable year that includes August

31, 2023), the replacement period will be

extended under § 1033(e)(2) and Notice

2006-82 if the applicable region includes

any county on this list. This extension

will continue until the end of the taxpayer’s first taxable year ending after

a drought-free year for the applicable

region.

SECTION 4. DRAFTING

INFORMATION

The principal author of this notice

is Lewis Saideman of the Office of

Associate Chief Counsel (Income Tax

& Accounting). For further information

regarding this notice, please contact Mr.

Saideman at (202) 317-7009 (not a tollfree call).

While Notice 2006-82 uses the term “counties,” this notice lists other applicable regions as well (e.g., boroughs, parishes, etc.).

October 16, 2023

1074

Bulletin No. 2023–42

APPENDIX

Colorado

Alabama

Counties of Adams, Alamosa, Arapahoe,

Baca, Bent, Cheyenne, Conejos, Costilla,

Crowley, Custer, Delta, Denver, Dolores,

Elbert, El Paso, Fremont, Garfield,

Huerfano, Jackson, Kiowa, Kit Carson,

La Plata, Larimer, Las Animas, Lincoln,

Logan, Mesa, Moffat, Montezuma,

Montrose, Morgan, Otero, Phillips,

Prowers, Pueblo, Rio Blanco, Rio Grande,

Routt, San Miguel, Sedgwick, Teller,

Washington, Weld, and Yuma.

Counties of Baldwin, Coffee, Colbert,

Conecuh, Covington, Dale, Escambia,

Geneva, Henry, Houston, Jackson,

Lauderdale,

Lawrence,

Limestone,

Madison, Marshall, Mobile, Monroe,

Morgan, and Washington.

Arizona

Counties of Apache, Cochise, Coconino,

Graham, Greenlee, La Paz, Mohave,

Navajo, Pima, Santa Cruz, Yavapai, and

Yuma.

Arkansas

Counties of Arkansas, Ashley, Baxter,

Benton, Boone, Bradley, Calhoun,

Carroll, Chicot, Clark, Clay, Cleburne,

Cleveland,

Columbia,

Conway,

Craighead, Crawford, Crittenden, Cross,

Dallas, Desha, Drew, Faulkner, Franklin,

Fulton, Garland, Grant, Greene,

Hempstead, Hot Spring, Howard,

Independence, Izard, Jackson, Jefferson,

Johnson, Lafayette, Lawrence, Lee,

Lincoln, Little River, Logan, Lonoke,

Madison, Marion, Mississippi, Monroe,

Montgomery,

Nevada,

Newton,

Ouachita, Perry, Phillips, Pike, Poinsett,

Polk, Pope, Prairie, Pulaski, Randolph,

Saint Francis, Saline, Scott, Searcy,

Sebastian, Sevier, Sharp, Stone,

Union, Van Buren, Washington, White,

Woodruff, and Yell.

California

Counties of Alameda, Alpine, Amador,

Butte, Calaveras, Colusa, Contra Costa,

Del Norte, El Dorado, Fresno, Glenn,

Humboldt, Imperial, Inyo, Kern, Kings,

Lake, Lassen, Los Angeles, Madera,

Marin, Mariposa, Mendocino, Merced,

Modoc, Mono, Monterey, Napa, Nevada,

Orange, Placer, Plumas, Riverside,

Sacramento, San Benito, San Bernardino,

San Diego, San Francisco, San Joaquin,

San Luis Obispo, San Mateo, Santa

Barbara, Santa Clara, Santa Cruz, Shasta,

Sierra, Siskiyou, Solano, Sonoma,

Stanislaus, Sutter, Tehama, Trinity, Tulare,

Tuolumne, Ventura, Yolo, and Yuba.

Bulletin No. 2023–42

Connecticut

Counties of Fairfield, Hartford, Litchfield,

Middlesex, New Haven, New London,

Tolland, and Windham.

Delaware

County of Sussex.

District of Columbia

District of Columbia.

Florida

Counties of Alachua, Baker, Bay,

Bradford, Brevard, Broward, Calhoun,

Charlotte, Citrus, Collier, Columbia,

DeSoto, Dixie, Escambia, Flagler,

Franklin, Gadsden, Gilchrist, Glades, Gulf,

Hamilton, Hardee, Hendry, Hernando,

Highlands, Hillsborough, Holmes, Indian

River, Jackson, Jefferson, Lafayette,

Lake, Lee, Leon, Levy, Liberty, Madison,

Manatee, Marion, Martin, Miami-Dade,

Monroe, Okaloosa, Okeechobee, Orange,

Osceola, Palm Beach, Pasco, Pinellas,

Polk, Putnam, Saint Lucie, Santa Rosa,

Sarasota, Seminole, Sumter, Suwannee,

Taylor, Union, Volusia, Wakulla, Walton,

and Washington.

Georgia

Counties of Baker, Baldwin, Banks,

Barrow, Berrien, Bibb, Bleckley, Brooks,

Butts, Cherokee, Clarke, Clayton, Clinch,

Cobb, Colquitt, Cook, Crawford, Dawson,

Decatur, DeKalb, Douglas, Early, Echols,

Elbert, Fannin, Forsyth, Franklin, Fulton,

Gilmer, Grady, Greene, Gwinnett,

Habersham, Hall, Hancock, Hart, Henry,

1075

Houston, Jackson, Jasper, Jones, Lamar,

Lanier, Laurens, Lincoln, Lowndes,

Lumpkin, McDuffie, Madison, Miller,

Mitchell, Monroe, Morgan, Murray,

Newton, Oconee, Oglethorpe, Peach,

Pickens, Pike, Pulaski, Putnam, Rabun,

Rockdale, Seminole, Stephens, Taliaferro,

Taylor, Thomas, Towns, Twiggs, Union,

Upson, Walton, Warren, Washington,

White, Wilkes, and Wilkinson.

Hawaii

Counties of Hawaii, Honolulu, Kalawao,

Kauai, and Maui.

Idaho

Counties of Adams, Bannock, Bear Lake,

Benewah, Blaine, Bonner, Bonneville,

Boundary, Butte, Camas, Caribou, Cassia,

Clearwater, Custer, Franklin, Fremont,

Gooding, Idaho, Kootenai, Latah, Lemhi,

Lewis, Lincoln, Minidoka, Nez Perce,

Oneida, Owyhee, Power, Shoshone, Teton,

Twin Falls, Valley, and Washington.

Illinois

Counties of Adams, Alexander, Bond,

Boone, Brown, Bureau, Carroll, Cass,

Champaign, Christian, Clark, Clay,

Clinton,

Coles,

Cook,

Crawford,

Cumberland, DeKalb, De Witt, Douglas,

DuPage, Edgar, Effingham, Fayette,

Ford, Franklin, Fulton, Gallatin, Grundy,

Hamilton, Hancock, Hardin, Henderson,

Henry, Iroquois, Jackson, Jasper,

Jefferson, Jo Daviess, Johnson, Kane,

Kankakee, Kendall, Knox, Lake, La Salle,

Lee, Livingston, Logan, McDonough,

McHenry, McLean, Macon, Madison,

Marion, Marshall, Mason, Massac,

Menard, Mercer, Monroe, Morgan,

Moultrie, Ogle, Peoria, Perry, Piatt, Pike,

Pope, Pulaski, Putnam, Randolph, Rock

Island, Saint Clair, Saline, Sangamon,

Schuyler, Scott, Shelby, Stark, Stephenson,

Tazewell, Union, Vermilion, Warren,

Washington, Whiteside, Will, Williamson,

Winnebago, and Woodford.

Indiana

Counties of Benton, Boone, Carroll, Cass,

Clay, Clinton, DeKalb, Elkhart, Fayette,

Fountain, Fulton, Hamilton, Hancock,

October 16, 2023

Harrison, Hendricks, Henry, Howard,

Jasper, Johnson, LaGrange, Lake, LaPorte,

Madison, Marion, Miami, Montgomery,

Morgan, Newton, Noble, Owen, Parke,

Perry, Porter, Pulaski, Putnam, Randolph,

Shelby, Starke, Steuben, Sullivan,

Tippecanoe, Tipton, Union, Vermillion,

Vigo, Warren, Wayne, and White.

Russell, Saline, Scott, Sedgwick, Seward,

Shawnee, Sheridan, Sherman, Smith,

Stafford, Stanton, Stevens, Sumner,

Thomas, Trego, Wabaunsee, Wallace,

Washington, Wichita, Wilson, Woodson,

and Wyandotte.

Iowa

Counties of Adair, Allen, Anderson,

Ballard, Barren, Bath, Boone, Bourbon,

Boyd, Boyle, Bracken, Breckinridge,

Bullitt, Butler, Caldwell, Calloway,

Carlisle, Carroll, Carter, Casey, Christian,

Clark, Crittenden, Daviess, Edmonson,

Elliott, Estill, Fayette, Fleming, Franklin,

Fulton, Gallatin, Garrard, Grant, Graves,

Grayson, Green, Greenup, Hancock,

Hardin, Harrison, Hart, Henry, Hickman,

Hopkins, Jefferson, Jessamine, Kenton,

Larue, Lawrence, Lee, Lewis, Lincoln,

Livingston, Logan, Lyon, McCracken,

McLean, Madison, Marion, Marshall,

Mason, Meade, Menifee, Mercer, Metcalfe,

Montgomery, Morgan, Muhlenberg,

Nelson, Nicholas, Ohio, Oldham, Owen,

Pendleton, Powell, Robertson, Rockcastle,

Rowan, Scott, Shelby, Simpson, Spencer,

Taylor, Todd, Trigg, Trimble, Union,

Warren, Washington, Webster, Wolfe, and

Woodford.

Counties of Adair, Adams, Allamakee,

Appanoose, Audubon, Benton, Black

Hawk, Bremer, Buchanan, Buena Vista,

Butler, Calhoun, Carroll, Cass, Cedar, Cerro

Gordo, Cherokee, Chickasaw, Clarke,

Clay, Clayton, Clinton, Crawford, Dallas,

Davis, Decatur, Delaware, Des Moines,

Dickinson, Dubuque, Emmet, Fayette,

Floyd, Franklin, Fremont, Greene, Grundy,

Guthrie, Hamilton, Hancock, Hardin,

Harrison, Henry, Howard, Humboldt, Ida,

Iowa, Jackson, Jasper, Jefferson, Johnson,

Jones, Keokuk, Kossuth, Lee, Linn, Louisa,

Lucas, Lyon, Madison, Mahaska, Marion,

Marshall, Mills, Mitchell, Monona, Monroe,

Montgomery, Muscatine, O’Brien, Osceola,

Page, Palo Alto, Plymouth, Pocahontas,

Polk, Pottawattamie, Poweshiek, Ringgold,

Sac, Scott, Shelby, Sioux, Story, Tama,

Taylor, Union, Van Buren, Wapello, Warren,

Washington, Wayne, Webster, Winnebago,

Winneshiek, Woodbury, Worth, and Wright.

Kansas

Counties of Allen, Anderson, Atchison,

Barber, Barton, Bourbon, Brown, Butler,

Chase, Chautauqua, Cherokee, Cheyenne,

Clark, Cloud, Coffey, Comanche,

Cowley, Crawford, Decatur, Dickinson,

Doniphan, Douglas, Edwards, Elk, Ellis,

Ellsworth, Finney, Ford, Franklin, Geary,

Gove, Graham, Grant, Gray, Greeley,

Greenwood, Hamilton, Harper, Harvey,

Haskell, Hodgeman, Jackson, Jefferson,

Jewell, Johnson, Kearny, Kingman, Kiowa,

Labette, Lane, Leavenworth, Lincoln,

Linn, Logan, Lyon, McPherson, Marion,

Marshall, Meade, Miami, Mitchell,

Montgomery, Morris, Morton, Nemaha,

Neosho, Ness, Norton, Osage, Osborne,

Ottawa, Pawnee, Phillips, Pratt, Rawlins,

Reno, Republic, Rice, Riley, Rooks, Rush,

October 16, 2023

Kentucky

Maine

Counties of Androscoggin, Cumberland,

Knox, Lincoln, Sagadahoc, Waldo, and

York.

Maryland

City of Baltimore. Counties of Anne

Arundel, Baltimore, Carroll, Frederick,

Harford, Howard, Montgomery, and

Prince George’s.

Massachusetts

Counties of Barnstable, Berkshire, Bristol,

Dukes, Essex, Franklin, Hampden,

Hampshire,

Middlesex,

Norfolk,

Plymouth, Suffolk, and Worcester.

Michigan

County of Allegan, Barry, Branch, Cass,

Clinton, Eaton, Genesee, Gogebic,

Gratiot, Hillsdale, Ingham, Ionia, Jackson,

Kent, Lake, Lapeer, Lenawee, Livingston,

Macomb, Manistee, Mason, Missaukee,

Monroe, Montcalm, Oakland, Ontonagon,

Osceola, Saint Clair, Saint Joseph,

Sanilac, Shiawassee, Washtenaw, Wayne,

and Wexford.

Louisiana

Minnesota

Parishes of Acadia, Allen, Ascension,

Assumption, Avoyelles, Beauregard,

Bienville, Bossier, Caddo, Calcasieu,

Caldwell,

Cameron,

Catahoula,

Concordia, De Soto, East Baton Rouge,

East Carroll, East Feliciana, Evangeline,

Franklin, Grant, Iberia, Iberville, Jackson,

Jefferson, Jefferson Davis, Lafayette,

Lafourche,

Salle,

Livingston,

Madison, Morehouse, Natchitoches,

Orleans, Ouachita, Plaquemines, Pointe

Coupee, Rapides, Red River, Richland,

Sabine, Saint Bernard, Saint Charles,

Saint Helena, Saint James, Saint John

the Baptist, Saint Landry, Saint Martin,

Saint Mary, Saint Tammany, Tangipahoa,

Tensas, Terrebonne, Vermilion, Vernon,

Washington, Webster, West Baton Rouge,

West Carroll, West Feliciana, and Winn.

Counties of Aitkin, Anoka, Becker,

Beltrami, Benton, Big Stone, Blue Earth,

Brown, Carlton, Carver, Cass, Chippewa,

Chisago, Clay, Clearwater, Cottonwood,

Crow Wing, Dakota, Dodge, Faribault,

Fillmore, Freeborn, Goodhue, Grant,

Hennepin, Houston, Hubbard, Isanti,

Itasca, Jackson, Kanabec, Kandiyohi,

Kittson, Koochiching, Lac qui Parle, Lake,

Lake of the Woods, Le Sueur, Lincoln,

Lyon, McLeod, Marshall, Martin, Meeker,

Mille Lacs, Morrison, Mower, Murray,

Nicollet, Nobles, Norman, Olmsted, Otter

Tail, Pine, Pipestone, Pope, Ramsey,

Redwood, Renville, Rice, Rock, Roseau,

Saint Louis, Scott, Sherburne, Sibley,

Stearns, Steele, Stevens, Swift, Todd,

Traverse, Wabasha, Wadena, Waseca,

Washington, Watonwan, Wilkin, Winona,

Wright, and Yellow Medicine.

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Bulletin No. 2023–42

Mississippi

Counties of Adams, Amite, Bolivar,

Claiborne, Coahoma, Copiah, Covington,

DeSoto, Forrest, Franklin, George,

Greene, Hancock, Harrison, Hinds,

Holmes, Humphreys, Issaquena, Jackson,

Jefferson, Jefferson Davis, Lafayette,

Lamar, Lawrence, Leflore, Lincoln,

Madison, Marion, Marshall, Panola, Pearl

River, Perry, Pike, Pontotoc, Quitman,

Rankin, Sharkey, Simpson, Smith, Stone,

Sunflower, Tate, Tunica, Union, Walthall,

Warren, Washington, Wilkinson, and

Yazoo.

Missouri

Counties of Adair, Andrew, Atchison,

Audrain, Barry, Barton, Bates, Benton,

Bollinger, Boone, Buchanan, Butler,

Caldwell, Callaway, Camden, Cape

Girardeau, Carroll, Carter, Cass, Cedar,

Chariton, Christian, Clark, Clay, Clinton,

Cole, Cooper, Crawford, Dade, Dallas,

Daviess, DeKalb, Dent, Douglas,

Dunklin, Franklin, Gasconade, Greene,

Grundy, Harrison, Henry, Hickory, Holt,

Howard, Howell, Iron, Jackson, Jasper,

Jefferson, Johnson, Knox, Laclede,

Lafayette, Lawrence, Lewis, Lincoln,

Linn, Livingston, McDonald, Macon,

Madison, Maries, Marion, Mercer,

Miller, Mississippi, Moniteau, Monroe,

Montgomery, Morgan, New Madrid,

Newton, Oregon, Osage, Ozark, Pemiscot,

Perry, Pettis, Phelps, Pike, Platte, Polk,

Pulaski, Putnam, Ralls, Randolph, Ray,

Reynolds, Ripley, Saint Charles, Saint

Clair, Sainte Genevieve, Saint Francois,

Saint Louis, Saline, Schuyler, Scotland,

Scott, Shannon, Shelby, Stoddard,

Stone, Sullivan, Taney, Vernon, Warren,

Washington, Wayne, Webster, and Wright.

Montana

Counties

Beaverhead,

Blaine,

Broadwater, Cascade, Chouteau, Custer,

Daniels, Dawson, Deer Lodge, Fallon,

Fergus, Flathead, Gallatin, Garfield,

Glacier, Granite, Hill, Jefferson, Judith

Basin, Lake, Lewis and Clark, Liberty,

Lincoln, McCone, Madison, Meagher,

Mineral, Missoula, Petroleum, Phillips,

Pondera, Powell, Prairie, Ravalli,

Bulletin No. 2023–42

Richland, Roosevelt, Sanders, Sheridan,

Silver Bow, Teton, Toole, Valley,

Wheatland, and Wibaux.

Nebraska

Counties of Adams, Antelope, Arthur,

Banner, Blaine, Boone, Box Butte, Boyd,

Brown, Buffalo, Burt, Butler, Cass, Cedar,

Chase, Cherry, Cheyenne, Clay, Colfax,

Cuming, Custer, Dakota, Dawes, Dawson,

Deuel, Dixon, Dodge, Douglas, Dundy,

Fillmore, Franklin, Frontier, Furnas, Gage,

Garden, Garfield, Gosper, Grant, Greeley,

Hall, Hamilton, Harlan, Hayes, Hitchcock,

Holt, Hooker, Howard, Jefferson, Johnson,

Kearney, Keith, Keya Paha, Kimball,

Knox, Lancaster, Lincoln, Logan, Loup,

McPherson, Madison, Merrick, Morrill,

Nance, Nemaha, Nuckolls, Otoe, Pawnee,

Perkins, Phelps, Pierce, Platte, Polk, Red

Willow, Richardson, Rock, Saline, Sarpy,

Saunders, Scotts Bluff, Seward, Sheridan,

Sherman, Sioux, Stanton, Thayer,

Thomas, Thurston, Valley, Washington,

Wayne, Webster, Wheeler, and York.

Nevada

City of Carson City. Counties of Churchill,

Clark, Douglas, Elko, Esmeralda, Eureka,

Humboldt, Lander, Lincoln, Lyon,

Mineral, Nye, Pershing, Storey, Washoe,

and White Pine.

Miguel, Santa Fe, Sierra, Socorro, Taos,

Torrance, Union, and Valencia.

New York

Counties of Bronx, Columbia, Dutchess,

Kings, Nassau, New York, Orange,

Putnam, Queens, Richmond, Rockland,

Suffolk, Ulster, and Westchester.

North Carolina

Counties of Cherokee, Clay, Graham,

Jackson, Macon, Swain, and Transylvania.

North Dakota

Counties of Barnes, Benson, Billings,

Bottineau, Bowman, Burke, Burleigh,

Cass, Cavalier, Dickey, Divide, Dunn,

Eddy, Emmons, Foster, Golden Valley,

Griggs, Hettinger, Kidder, LaMoure,

Logan, McHenry, McIntosh, McKenzie,

McLean, Mountrail, Nelson, Pembina,

Pierce, Ramsey, Ransom, Renville,

Richland, Rolette, Sargent, Sheridan,

Sioux, Slope, Stark, Steele, Stutsman,

Towner, Traill, Walsh, Ward, Wells, and

Williams.

Ohio

Counties of Adams, Brown, Clermont,

Darke, Preble, Scioto, and Williams.

New Hampshire

Oklahoma

Counties of Cheshire, Hillsborough,

Merrimack, Rockingham, and Strafford.

Counties of Adair, Alfalfa, Atoka,

Beaver, Beckham, Blaine, Bryan, Caddo,

Canadian, Carter, Cherokee, Choctaw,

Cimarron, Cleveland, Coal, Comanche,

Cotton, Craig, Creek, Custer, Delaware,

Dewey, Ellis, Garfield, Garvin, Grady,

Grant, Greer, Harmon, Harper, Haskell,

Hughes, Jackson, Jefferson, Johnston,

Kay, Kingfisher, Kiowa, Latimer, Le

Flore, Lincoln, Logan, Love, McClain,

McCurtain, McIntosh, Major, Marshall,

Mayes, Murray, Muskogee, Noble,

Nowata, Okfuskee, Oklahoma, Okmulgee,

Osage, Ottawa, Pawnee, Payne, Pittsburg,

Pontotoc, Pottawatomie, Pushmataha,

Roger Mills, Rogers, Seminole, Sequoyah,

Stephens, Texas, Tillman, Tulsa, Wagoner,

Washington, Washita, Woods, and

Woodward.

New Jersey

Counties of Atlantic, Bergen, Cape May,

Cumberland, Essex, Hudson, Hunterdon,

Mercer, Middlesex, Monmouth, Morris,

Passaic, Salem, Somerset, Sussex, and

Union.

New Mexico

Counties of Bernalillo, Catron, Chaves,

Cibola, Colfax, Curry, DeBaca, Dona

Ana, Eddy, Grant, Guadalupe, Harding,

Hidalgo, Lea, Lincoln, Los Alamos, Luna,

McKinley, Mora, Otero, Quay, Rio Arriba,

Roosevelt, Sandoval, San Juan, San

1077

October 16, 2023

Oregon

Counties of Baker, Benton, Clackamas,

Clatsop, Crook, Deschutes, Douglas,

Gilliam, Grant, Harney, Hood River,

Jackson, Jefferson, Josephine, Klamath,

Lake, Lane, Lincoln, Linn, Malheur,

Marion, Morrow, Multnomah, Polk,

Sherman, Tillamook, Umatilla, Union,

Wallowa, Wasco, Wheeler, and Yamhill.

Pennsylvania

Counties of Lancaster and York.

Rhode Island

Counties of Bristol, Kent, Newport,

Providence, and Washington.

South Carolina

Counties of Abbeville, Anderson,

Greenville,

Laurens,

McCormick,

Oconee, Pickens, and Spartanburg.

South Dakota

Counties of Aurora, Beadle, Bennett,

Bon Homme, Brookings, Brown, Brule,

Buffalo, Campbell, Charles Mix, Clark,

Clay, Codington, Corson, Custer, Davison,

Day, Deuel, Dewey, Douglas, Edmunds,

Fall River, Faulk, Grant, Gregory, Haakon,

Hand, Hanson, Hutchinson, Jackson,

Jerauld, Kingsbury, Lake, Lawrence,

Lincoln, Lyman, McCook, McPherson,

Marshall, Meade, Mellette, Miner,

Minnehaha, Moody, Oglala Lakota,

Pennington, Roberts, Sanborn, Spink,

Stanley, Todd, Tripp, Turner, Union,

Walworth, Yankton, and Ziebach.

Tennessee

Counties of Bedford, Benton, Bledsoe,

Blount, Bradley, Cannon, Carroll, Chester,

Coffee, Davidson, Decatur, DeKalb,

Dyer, Franklin, Gibson, Giles, Grundy,

Hamilton, Hardin, Henderson, Henry,

Hickman, Houston, Humphreys, Lake,

Lauderdale, Lawrence, Lewis, Lincoln,

Loudon, McMinn, McNairy, Madison,

Marion, Marshall, Meigs, Monroe,

Montgomery, Moore, Obion, Perry, Polk,

Rhea, Roane, Rutherford, Sequatchie,

Shelby, Stewart, Sumner, Tipton, Van

October 16, 2023

Buren, Warren, Wayne, Weakley, White,

Williamson, and Wilson.

Texas

Counties of Anderson, Andrews, Angelina,

Aransas, Archer, Armstrong, Atascosa,

Austin, Bailey, Bandera, Bastrop, Baylor,

Bee, Bell, Bexar, Blanco, Borden, Bosque,

Bowie, Brazoria, Brazos, Brewster,

Briscoe, Brooks, Brown, Burleson,

Burnet, Caldwell, Calhoun, Callahan,

Cameron, Carson, Castro, Chambers,

Cherokee, Childress, Clay, Cochran,

Coke, Coleman, Collin, Collingsworth,

Colorado, Comal, Comanche, Concho,

Cooke, Coryell, Cottle, Crane, Crockett,

Crosby, Culberson, Dallam, Dallas,

Dawson, Deaf Smith, Delta, Denton,

DeWitt, Dickens, Dimmit, Donley, Duval,

Eastland, Ector, Edwards, Ellis, El Paso,

Erath, Falls, Fannin, Fayette, Fisher,

Floyd, Foard, Fort Bend, Freestone, Frio,

Gaines, Galveston, Garza, Gillespie,

Glasscock, Goliad, Gonzales, Gray,

Grayson, Gregg, Grimes, Guadalupe,

Hale,

Hall,

Hamilton,

Hansford,

Hardeman, Hardin, Harris, Harrison,

Hartley, Haskell, Hays, Hemphill,

Henderson, Hidalgo, Hill, Hockley, Hood,

Hopkins, Houston, Howard, Hudspeth,

Hunt, Hutchinson, Irion, Jack, Jackson,

Jasper, Jeff Davis, Jefferson, Jim Hogg,

Jim Wells, Johnson, Jones, Karnes,

Kaufman, Kendall, Kenedy, Kent, Kerr,

Kimble, King, Kinney, Kleberg, Knox,

Lamar, Lamb, Lampasas, La Salle,

Lavaca, Lee, Leon, Liberty, Limestone,

Lipscomb, Live Oak, Llano, Loving,

Lubbock, Lynn, McCulloch, McLennan,

McMullen, Madison, Marion, Martin,

Mason, Matagorda, Maverick, Medina,

Menard, Midland, Milam, Mills, Mitchell,

Montague, Montgomery, Moore, Motley,

Nacogdoches, Navarro, Newton, Nolan,

Nueces, Ochiltree, Oldham, Orange, Palo

Pinto, Panola, Parker, Parmer, Pecos, Polk,

Potter, Presidio, Randall, Reagan, Real,

Red River, Reeves, Refugio, Roberts,

Robertson, Rockwall, Runnels, Rusk,

Sabine, San Augustine, San Jacinto, San

Patricio, San Saba, Schleicher, Scurry,

Shackelford, Shelby, Sherman, Smith,

Somervell, Starr, Stephens, Sterling,

Stonewall, Sutton, Swisher, Tarrant,

Taylor, Terrell, Terry, Throckmorton,

Tom Green, Travis, Trinity, Tyler, Upton,

1078

Uvalde, Val Verde, Van Zandt, Victoria,

Walker, Waller, Ward, Washington, Webb,

Wharton, Wheeler, Wichita, Wilbarger,

Willacy, Williamson, Wilson, Winkler,

Wise, Yoakum, Young, Zapata, and

Zavala.

Utah

Counties of Beaver, Box Elder, Cache,

Carbon, Daggett, Davis, Duchesne, Emery,

Garfield, Grand, Iron, Juab, Kane, Millard,

Morgan, Piute, Rich, Salt Lake, San Juan,

Sanpete, Sevier, Summit, Tooele, Uintah,

Utah, Wasatch, Washington, Wayne, and

Weber.

Vermont

County of Windham.

Virginia

City of Falls Church.

Counties of

Accomack, Clarke, Fairfax, Fauquier,

Frederick,

Loudoun,

Northampton,

Rappahannock, Shenandoah, and Warren.

Washington

Counties of Asotin, Benton, Chelan,

Clallam, Columbia, Cowlitz, Franklin,

Garfield, Grays Harbor, Jefferson,

King, Kitsap, Kittitas, Lewis, Mason,

Okanogan, Pacific, Pend Oreille, Pierce,

San Juan, Skagit, Skamania, Snohomish,

Stevens, Thurston, Wahkiakum, Walla

Walla, Whatcom, Whitman, and Yakima.

West Virginia

County of Jefferson.

Wisconsin

Counties of Adams, Ashland, Barron,

Bayfield, Brown, Buffalo, Burnett, Calumet,

Chippewa, Clark, Columbia, Crawford,

Dane, Dodge, Douglas, Dunn, Fond du

Lac, Forest, Grant, Green, Green Lake,

Iowa, Iron, Jackson, Jefferson, Juneau,

Kenosha, La Crosse, Lafayette, Langlade,

Lincoln, Manitowoc, Marathon, Marquette,

Milwaukee, Monroe, Oneida, Outagamie,

Ozaukee, Pepin, Pierce, Polk, Portage,

Price, Racine, Richland, Rock, Rusk, Saint

Croix, Sauk, Sawyer, Sheboygan, Taylor,

Bulletin No. 2023–42

Vernon, Vilas, Walworth, Washburn,

Washington,

Waukesha,

Waupaca,

Waushara, Winnebago, and Wood.

Wyoming

Counties of Albany, Campbell, Carbon,

Converse, Fremont, Goshen, Laramie,

Lincoln, Niobrara, Park, Platte, Sublette,

Sweetwater, Teton, Uinta, and Weston.

Federated States of Micronesia

State of Kapingamarangi.

Republic of the Marshall Islands

Atoll of Wotje.

Commonwealth of Puerto Rico

Municipalities of Aibonito, Arecibo,

Barranquitas, Camuy, Cayey, Cidra,

Coamo, Guayama, Hatillo, Isabela, Lares,

Orocovis, Quebradillas, Salinas, San

Sebastian, Utuado, and Villalba.

United States Virgin Islands

Islands of Saint Croix, Saint John, and

Saint Thomas.

Treatment of Amounts

Paid to Section 170(c)

Organizations under

Employer Leave-Based

Donation Programs to

Aid Victims of the Hawaii

Wildfires that Began on

August 8, 2023 (2023

Hawaii Wildfires).

Notice 2023-69

TREATMENT OF LEAVE-BASED

DONATION PAYMENTS

In response to the extreme need for

charitable relief for victims of wildfires

beginning on August 8, 2023, in the

State of Hawaii (2023 Hawaii Wildfires),

employers may have adopted or may be

considering adopting leave-based donation programs. This notice provides guidance under the Internal Revenue Code

(Code)1 on the federal income and employment tax treatment of cash payments made

by employers under leave-based donation

programs for the relief of victims of the

2023 Hawaii Wildfires. This guidance is

similar to the guidance provided in Notice

2001-69, 2001-46 IRB 491, as modified

and superseded by Notice 2003-1, 2003-2

IRB 257, regarding charitable relief following the September 11, 2001, terrorist

attacks.

EMPLOYER LEAVE-BASED

DONATION PROGRAMS

Under employer leave-based donation programs, employees can elect to

forgo vacation, sick, or personal leave

in exchange for their employers making cash payments to charitable organizations described in section 170(c)

(section 170(c) organizations). Cash

payments made by an employer to section 170(c) organizations under an

employer leave-based donation program

are referred to as “employer leave-based

donation payments.”

TREATMENT OF QUALIFIED

EMPLOYER LEAVE-BASED

DONATION PAYMENTS

Employer leave-based donation payments made by an employer before

January 1, 2025, to section 170(c) organizations to aid victims of the 2023 Hawaii

Wildfires (qualified employer leave-based

donation payments) will not be treated

as gross income or wages (or compensation, as applicable) of the employees

of the employer. Similarly, employees

electing or with an opportunity to elect

to forgo leave that funds the qualified

employer leave-based donation payments

will not be treated as having constructively received gross income or wages (or

compensation, as applicable). Employers

should not include the amount of qualified

employer leave-based donation payments

in Box 1, 3 (if applicable), or 5 of the

electing employees’ Forms W-2. Electing

employees are not eligible to claim charitable contribution deductions under section 170 for the value of the forgone leave

that funds qualified employer leave-based

donation payments.

An employer may deduct qualified

employer leave-based donation payments

under the rules of section 170 or the rules

of section 162 if the employer otherwise

meets the respective requirements of

either section of the Code.

DRAFTING INFORMATION

For further information, please contact Clara L. Raymond of the Office of

Associate Chief Counsel (Income Tax and

Accounting) at (202) 317-4718 (not a tollfree number).

26 CFR 601.105: Examination of returns and claims

for refund, credit or abatement; determination of

correct tax liability.

(Also: Part I, §§ 1091; 1.446-7.)

Rev. Proc. 2023-35

SECTION 1. PURPOSE

This revenue procedure amplifies and

supersedes Rev. Proc. 2014-45, 2014-34

I.R.B. 388, which describes circumstances

in which the Internal Revenue Service

(IRS) will not treat a redemption of shares

in a money market fund (MMF) as part of

a wash sale for purposes of section 1091

of the Internal Revenue Code (Code).1

This revenue procedure expands the

scope of Rev. Proc. 2014-45 in response

to final rules adopted by the Securities

and Exchange Commission (SEC) on

July 12, 2023, which amend Rule 2a-7

under the Investment Company Act of

1940 (1940 Act), 17 CFR § 270.2a-7

(2023 Amendments). See Money Market

Fund Reforms; Form PF Reporting

Requirements for Large Liquidity Fund

Advisers; Technical Amendments to

Form N-CSR and Form N-1A, Investment

Company Act Release No. 34959 (July

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

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

Bulletin No. 2023–42

1079

October 16, 2023

12, 2023), 88 F.R. 51404 (Aug. 3, 2023)

(2023 SEC Release).

SECTION 2. BACKGROUND

.01 Money Market Funds

(1) An investment company that is registered under the 1940 Act and that meets

the requirements of Rule 2a-7 under the

1940 Act is permitted to hold itself out

as an MMF. MMFs have historically

sought to keep stable (typically at $1.00)

the prices at which their shares are distributed, redeemed, and repurchased. The

securities that Rule 2a-7 permits an MMF

to hold generally result in no more than

minimal fluctuations in the value of an

MMF’s portfolio as determined on a pershare basis.

(2) Prior to amendments in 2014, Rule

2a-7 generally permitted an MMF to compute its price per share by using either or

both of (a) the amortized cost method of

valuation, and (b) the penny-rounding

method of pricing. Under the amortized

cost method of valuation, an MMF’s net

asset value per share (NAV) was determined by valuing the fund’s portfolio

securities at their acquisition cost, adjusted

for amortization of premium or accretion

of discount. Under the penny-rounding

method of pricing, an MMF’s NAV was

rounded to the nearest one percent in

computing the MMF’s share price. These

methods were intended to enable MMFs

to maintain stable share prices under most

circumstances.

(3) Final rules adopted by the SEC in

2014 generally bar the use of the amortized

cost method of valuation and the use of the

penny-rounding method of pricing, except

by government MMFs and retail MMFs2

(2014 Amendments). See Money Market

Fund Reform; Amendments to Form PF,

Investment Company Act Release No.

31166 (July 23, 2014), 79 F.R. 47735

(Aug. 14, 2014). An MMF that is neither a

government MMF nor a retail MMF must

value its portfolio securities using market-based factors and compute its price

per share by rounding the fund’s NAV to a

minimum of the fourth decimal place (or,

for an MMF with a share price other than

$1.0000, an equivalent or greater level of

precision). 17 CFR § 270.2a–7(c)(1)(ii).

An MMF that uses market factors to value

its securities and uses basis point rounding

to price its shares for purposes of distribution, redemption, and repurchase (floating-NAV MMF) has a share price that is

likely to change frequently, but usually

within a narrow range because of the limited types of investments that an MMF

may hold. A government MMF or retail

MMF that continues to use the amortized

cost method and penny rounding (stable-NAV MMF) can maintain a constant

share price under most market conditions.

(4) The fact that stable-NAV MMFs

maintain a constant share price simplifies

the taxation of their shareholders. Because

shareholders acquire shares from the fund

for $1.00/share, have bases of $1.00/

share, and redeem those shares for the

same amount, they realize no gain or loss

on those redemptions. On the other hand,

shareholders in floating-NAV MMFs typically redeem shares for amounts slightly

different from the amounts for which

those shares were issued to them. Section

2.02(4) and (5) of this revenue procedure describe prior guidance intended to

reduce tax compliance burdens associated

with gains and losses on shares in floating-NAV MMFs.

(5) The 2014 Amendments also permitted an MMF to institute a liquidity fee if

certain liquid assets of the MMF fall below

a specified percentage of the MMF’s total

assets. If those liquid assets fall below

another (lower) specified percentage, the

2014 Amendments generally required the

MMF to institute a liquidity fee, unless

the MMF’s board of directors (including

a majority of the directors who are not

interested persons of the fund) determines

that imposing such a fee is not in the best

interests of the MMF. When an MMF has

a liquidity fee in effect, the fee reduces

the proceeds received by all redeeming

shareholders. Government MMFs were

generally exempt from the requirements

of the liquidity fee provisions but were

permitted to institute liquidity fees on the

same terms.

.02 Wash Sale Rules

(1) Section 1091(a) disallows a loss

realized by a taxpayer on a sale or other

disposition of shares of stock or securities if, within a period beginning 30 days

before and ending 30 days after the date

of such sale or disposition, the taxpayer

acquires (by purchase or by an exchange

on which the entire amount of gain or

loss is recognized by law), or enters into

a contract or option to so acquire, substantially identical stock or securities (unless

the taxpayer is a dealer in stock or securities and the loss is sustained in a transaction made in the ordinary course of such

business).

(2) If a taxpayer acquired property

and that acquisition resulted in the disallowance of a loss under section 1091(a),

then under section 1091(d), the taxpayer’s

basis in the property so acquired equals the

basis of the stock or securities disposed of

at a loss, increased or decreased to take

into account any difference between the

price at which the replacement property

was acquired and the price at which the

original stock or securities were disposed

of.

(3) As mentioned above, a shareholder

may realize a loss upon a redemption of

shares in an MMF in certain circumstances. For example, the share price of

a floating-NAV fund may have declined

below the price at which the shareholder

acquired shares, or an MMF may impose

a liquidity fee on redemptions. Because

many MMF shareholders engage in frequent redemptions and purchases of MMF

shares (for example, because of sweep

arrangements and automatic reinvestments of distributions), a shareholder that

realizes a loss on a redemption of MMF

shares will often acquire shares in that

MMF within 30 days before or after the

redemption.

(4) When the 2014 Amendments

required certain MMFs to become floating-NAV MMFs, the Department of the

Treasury (Treasury Department) and the

IRS published guidance to mitigate in two

ways the administrative burdens associated with gains and losses on those MMF

shares, including those associated with

wash sales.

(a) First, § 1.446-7 provides a simplified method of accounting for gain or loss

on MMF shares (NAV method). Under the

A government MMF is an MMF that “invests 99.5 percent or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully.” 17 CFR

§ 270.2a–7(a)(14). A retail MMF is an MMF that “has policies and procedures reasonably designed to limit all beneficial owners of the fund to natural persons.” 17 CFR § 270.2a–7(a)(21).

October 16, 2023

1080

Bulletin No. 2023–42

NAV method, a taxpayer’s gain or loss on

shares in an MMF is based on the change

in the aggregate value of the taxpayer’s

shares during a computation period and on

the net amount of purchases and redemptions during the computation period.

Because no gain or loss is determined for

particular redemptions under the NAV

method, no redemption implicates the

wash sale rules. The NAV method applies

to floating-NAV MMFs and stable-NAV

MMFs. See § 1.446-7(a).

(b) Second, Rev. Proc. 2014-45 provided that the IRS will not treat a redemption of a share of a floating-NAV MMF as a

part of a wash sale. Thus, Rev. Proc. 201445 provided relief from the wash sale rules

for shareholders in floating-NAV MMFs

not using the NAV method, but it did not

extend the relief to stable-NAV MMFs.

.03 2023 Amendments

(1) The 2023 Amendments eliminate

from Rule 2a-7 any link between an MMF’s

liquid assets and the MMF’s ability (or

obligation) to institute liquidity fees. Under

Rule 2a-7(c)(2)(i), as amended, any MMF

other than a government MMF must institute a liquidity fee (not to exceed two percent of the value of the shares redeemed) if

the MMF’s board of directors, including a

majority of the directors who are not interested persons of the MMF, determines that

a liquidity fee is in the best interests of the

MMF.3 A government MMF is permitted

to impose liquidity fees on the same terms.

The SEC intends to increase the resilience of MMFs by providing a mechanism

to allocate liquidity costs to redeeming

investors in times of stress while avoiding incentives for preemptive redemptions

associated with liquidity fee triggers based

on liquidity levels or other criteria investors might predict. See 2023 SEC Release,

88 F.R. at 51411.

(2) The provisions of the 2023

Amendments relating to liquidity fees

are effective on October 2, 2023. These

amendments provide a six-month compliance date for the discretionary liquidity fee provisions described in section

2.03(1) of this revenue procedure.

Affected MMFs, however, including

government MMFs, may begin to rely

on those provisions after the October 2,

2023, effective date. See 2023 SEC

Release, 88 F.R. at 51452.

(3) Thus, after October 2, 2023, any

MMF may impose a liquidity fee based

solely on a determination of its board of

directors. Thus, in some situations, the

board of a stable-NAV MMF may determine that such a fee is in the best interests

of the MMF and so impose it on redemptions of the MMF’s shares. For a redeeming shareholder that has not adopted the

NAV method (which is the case for almost

all shareholders in stable-NAV MMFs),

the fee will result in a loss on the redemption. Moreover, because stable-NAV

MMFs are outside the scope of Rev. Proc.

2014-45, there is no current impediment

to the application of the section 1091 wash

sale rules to that loss.

(4) The Treasury Department and the

IRS intend this revenue procedure to

reduce undue tax compliance burdens

resulting from the 2023 Amendments.

Because of the constant value of shares

in stable-NAV MMFs, the frequency

with which many taxpayers continuously

acquire and redeem shares in these MMFs,

and the administrative and compliance

burdens that would flow from applying

section 1091 to these transactions, it is in

the interest of sound tax administration to

extend to these shares the relief that Rev.

Proc. 2014-45 already provides to shares

in floating-NAV MMFs. Accordingly, the

IRS will not treat as part of a wash sale a

redemption of a share in any MMF.

SECTION 3. SCOPE

This revenue procedure applies to a

redemption of one or more shares in an

MMF.

SECTION 4. APPLICATION

If a redemption is within the scope of section 3 of this revenue procedure and results

in a loss, the IRS will not treat the redemption as part of a wash sale. Therefore, section 1091(a) will not disallow the deduction

for the resulting loss in the year realized and

section 1091(d) will not cause the basis of

any property to be determined by reference

to the basis of the redeemed shares.

SECTION 5. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2014-45 is amplified and

superseded for redemptions of shares in

MMFs after October 2, 2023.

SECTION 6. EFFECTIVE DATE

This revenue procedure is effective

for redemptions of shares in MMFs after

October 2, 2023.

SECTION 7. DRAFTING

INFORMATION

The principal author of this revenue procedure is Vanessa Mekpong of

the Office of Associate Chief Counsel

(Financial Institutions & Products). For

further information regarding this revenue

procedure contact Vanessa Mekpong on

(202) 317-6842 (not a toll-free number).

The 2023 Amendments also require certain MMFs to impose liquidity fees based on levels of net redemptions. The MMFs subject to that rule, institutional prime MMFs and institutional

tax-exempt MMFs, are floating-NAV MMFs. Accordingly, Rev. Proc. 2014-45 currently provides wash sale relief for transactions in their shares.

Bulletin No. 2023–42

1081

October 16, 2023

Part IV

Excise Tax on Designated

Drugs; Procedural

Requirements

REG-115559-23

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations that would provide

guidance on how taxpayers will report

liability for the excise tax imposed on

manufacturers, producers, or importers

of certain designated drugs. The proposed

regulations affect manufacturers, producers, and importers of designated drugs that

sell such drugs during certain statutory

periods. The proposed regulations also

would except such tax from semimonthly

deposit requirements.

DATES: Written or electronic comments

and requests for a public hearing must be

received by December 1, 2023. Requests

for a public hearing must be submitted

as prescribed in the “Comments and

Requests for a Public Hearing” section.

ADDRESSES: Commenters are strongly

encouraged to submit public comments

electronically via the Federal eRulemaking Portal at https://www.regulations.

gov (indicate IRS and REG-115559-23)

by following the online instructions for

submitting comments. Requests for a

public hearing must be submitted as prescribed in the “Comments and Requests

for a Public Hearing” section. Once

submitted to the Federal eRulemaking Portal, comments cannot be edited

or withdrawn. The Department of the

Treasury (Treasury Department) and the

IRS will publish for public availability

any comments submitted to the IRS’s

public docket. Send paper submissions

to: CC:PA:LPD:PR (REG-115559-23),

Room 5203, Internal Revenue Service,

P.O. Box 7604, Ben Franklin Station,

Washington, DC 20044.

October 16, 2023

FOR FURTHER INFORMATION

CONTACT: Concerning the proposed

regulations, contact Jacob W. Peeples,

James S. Williford, or Michael H. Beker

at (202) 317-6855 (not a toll-free number); concerning the submission of

comments and/or requests for a public

hearing, contact Vivian Hayes by phone

at (202) 317-5306 (not a toll-free number) or by email at publichearings@irs.

gov (preferred).

Explanation of Provisions

SUPPLEMENTARY INFORMATION:

A. Proposed amendments to §40.0-1

Background

Section 40.0-1(a) provides generally

that the regulations in part 40 set forth

administrative rules relating to the excise

taxes imposed by chapters 31 through 34,

36, 38, 39, and 49 of the Code. Proposed

§40.0-1(a) would amend that provision

by adding chapter 50A of the Code to the

list of Code chapters subject to the part 40

regulations.

This document contains proposed regulations that would amend the Excise Tax

Procedural Regulations (26 CFR part 40)

and add a new part 47 to 26 CFR chapter 1 to contain the “Designated Drugs

Excise Tax Regulations” related to the

excise tax imposed by section 5000D

of the Internal Revenue Code (Code)

on certain sales by manufacturers, producers, or importers of designated drugs

(section 5000D tax).

Section 5000D, added to chapter 50A

of the Code by section 11003 of Public

Law 117-169, 136 Stat. 1818 (August 16,

2022), commonly known as the Inflation

Reduction Act of 2022 (IRA), imposes

an excise tax on the sale by the manufacturer, producer, or importer (taxpayer)

of any designated drug during a day that

falls within a period described in section

5000D(b). Because chapter 50A is a new

chapter of the Code, the existing regulations that prescribe the procedural rules

applicable to most excise taxes do not

apply to chapter 50A.

Notice 2023-52 (2023-35 I.R.B. 650)

announces that the Treasury Department

and the IRS intend to propose regulations addressing substantive and procedural issues related to the section 5000D

tax. These proposed regulations address

return filing and other procedural requirements related to the section 5000D tax as

set forth in Notice 2023-52. The Treasury

Department and the IRS will issue a separate notice of proposed rulemaking to

address substantive issues related to the

section 5000D tax.

1082

I. Proposed Amendments to 26 CFR

part 40

These proposed regulations would

apply the Excise Tax Procedural

Regulations in 26 CFR part 40 to excise

taxes imposed by chapter 50A of the Code

(and thus to the section 5000D tax), with

some limited exceptions.

B. Proposed amendments to

§40.6011(a)-1

Section 40.6011(a)-1(a)(1) provides

that the return of tax to which part 40

applies must be made on Form 720,

Quarterly Federal Excise Tax Return,

according to the instructions applicable

to the form. Section 40.6011(a)-1(a)(2)

provides, in part, that a return must be

filed for the first calendar quarter in which

liability for tax is incurred (or tax must

be collected and paid over) and for each

subsequent calendar quarter, whether or

not liability is incurred (or tax must be

collected and paid over) during that subsequent quarter, until a final return under

§40.6011(a)-2 is filed.

Proposed §40.6011(a)-1(d) would

provide that a return that reports liability

imposed by section 5000D must be made

for a period of one calendar quarter, and

that a return must be filed for each calendar quarter in which liability for the

section 5000D tax is incurred. Therefore,

under these proposed regulations, taxpayers would be required to report any

section 5000D tax liability on Form 720;

however, taxpayers would not be required

to file subsequent returns for quarters in

Bulletin No. 2023–42

which they incur no section 5000D tax

liability.

C. Proposed amendments to

§40.6302(c)-1

Section 40.6302(c)-1(a) provides

that except as provided by statute or by

§40.6302(c)-1(e), each person required

under §40.6011(a)-1(a)(2) to file a quarterly return must make a deposit of tax

for each semimonthly period (as defined

in §40.0-1(c)) in which tax liability is

incurred. Section 40.6302(c)-1(e) provides a list of taxes that are excepted from

the semimonthly deposit requirement.

Proposed

§40.6302(c)-1(e)(1)(vi)

would add the section 5000D tax to the list

of taxes that are excepted from the semimonthly deposit requirement. Therefore,

under these proposed regulations, taxpayers with section 5000D tax liability would

not be required to make semimonthly

deposits of the section 5000D tax.

II. Proposed Addition of 26 CFR part 47

In addition to proposing the addition

of a new part 47 to 26 CFR chapter 1,

proposed §47.5000D-1 would provide

an introductory provision under part 47

that would designate 26 CFR part 47

as the “Designated Drugs Excise Tax

Regulations.”

Proposed Applicability Dates

These proposed regulations, once

adopted as final regulations in a Treasury

Decision published in the Federal

1, 2023. Taxpayers may rely on these proposed regulations for such returns beginning on October 1, 2023, and before the

date that a Treasury Decision published in

the Federal Register adopts these regulations as final regulations.

Special Analyses

I. Regulatory Planning and Review—

Economic Analysis

Pursuant to the Memorandum

of Agreement, Review of Treasury

Regulations under Executive Order 12866

Bulletin No. 2023–42

(June 9, 2023), tax regulatory actions

issued by the IRS are not subject to the

requirements of section 6 of Executive

Order 12866, as amended. Therefore,

a regulatory impact assessment is not

required.

II. Paperwork Reduction Act

The collections of information contained

within these proposed regulations will be

submitted to the Office of Management

and Budget (OMB) for review in accordance with the Paperwork Reduction Act

(PRA) (44 U.S.C. 3507(d)). See 5 CFR

1320.11. The Treasury Department and the

IRS request comments on the information

collection burdens related to the proposed

regulations. Commenters are strongly

encouraged to submit public comments

electronically. Written comments and recommendations for the proposed information collection should be sent to https://

www.reginfo.gov/public/do/PRAMain,

with copies to the IRS. To find this particular information collection, select

“Currently under Review - Open for Public

Comments” and then use the search function. Submit electronic submissions for

the proposed information collection to the

IRS via email at pra.comments@irs.gov

(indicate REG-115559-23 in the subject

line). Comments on the collection of information must be received by December 1,

2023. Comments are specifically requested

concerning:

Whether the proposed collections of

information are necessary for the proper

performance of the functions of the IRS,

including whether the information will

have practical utility;

The accuracy of the estimated burden

associated with the proposed collections

of information (see below);

How the quality, utility, and clarity of

the information to be collected may be

enhanced;

How the burden of complying with

the proposed collections of information

may be minimized, including through the

application of automated collection techniques or other forms of information technology; and

Estimates of capital or start-up costs

and costs of operation, maintenance,

and purchase of services to provide

information.

1083

The collections of information in these

proposed regulations relate to reporting

and recordkeeping requirements that will

allow section 5000D taxpayers to meet

their tax reporting obligations. The collections of information would generally

be used by the IRS for tax compliance

purposes and by taxpayers to facilitate

proper tax reporting and compliance. The

reporting and recordkeeping requirements

are covered within the form and instructions for Form 720. IRS is seeking OMB

approval on the statutorily required revisions to the form. Therefore, collection

requirements will be submitted to OMB

under control number 1545-0023.

Because the section 5000D tax is a

new tax that has never been reported to

the IRS, the Treasury Department and

the IRS do not have historical data on

the number of affected taxpayers. The

Centers for Medicare and Medicaid

Services (CMS) has selected 10 drugs for

price negotiation for initial price applicability year 2026. CMS will select for

negotiation a limited number of drugs for

each initial price applicability year after

that, as outlined in the IRA. Further, manufacturers, producers, and importers of

such drugs may or may not become subject to section 5000D tax liability. Based

on the foregoing, the IRS estimates that

there will be between 0 and 50 taxpayers

during the next 3 years.

If a taxpayer has a section 5000D tax

liability, it would be required to file Form

720 to report such liability. Form 720 is

a quarterly return. A taxpayer would only

be required to file Form 720 during calendar quarters in which the taxpayer has

a section 5000D tax liability. Therefore,

a taxpayer that has a section 5000D tax

liability in one calendar quarter but not in

subsequent calendar quarters would only

be required to file one Form 720.

The respondents with regard to the

section 5000D tax are manufacturers,

producers, and importers of certain drugs.

The Treasury Department and the IRS

estimate the annual burden of the collections of information as follows (these estimates, which are for PRA purposes only,

are based on the high end of the range of

possible taxpayers and the high end of the

range of the frequency of responses, in

which a taxpayer would have tax liability

in all four calendar quarters):

October 16, 2023

Estimated frequency of responses:

Quarterly.

Estimated number of responses: 50.

Estimated burden time per respondent:

6.9 hours.

Estimated total annual reporting burden: 1,380 hours.

A Federal agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information displays a valid control number assigned

by OMB. Books or records relating to a

collection of information must be retained

if their contents may become material in

the administration of any internal revenue

law. Generally, tax returns and tax return

information are confidential, as required

by section 6103.

III. Regulatory Flexibility Act

Pursuant to the Regulatory Flexibility

Act (5 U.S.C. chapter 6), it is hereby certified that these proposed regulations will

not have a significant economic impact on

a substantial number of small entities. This

certification is based on the fact that the

section 5000D tax is imposed only when

certain drug manufacturers, producers, and

importers sell certain drugs during periods

described in section 5000D(b). The periods described in section 5000D(b) relate

to benchmarks in the Medicare Drug Price

Negotiation Program, which involves

only certain drugs with high Medicare

expenditures. If any section 5000D tax liability arises, the taxpayers will primarily

not be small entities. As noted earlier, data

is not readily available about the number

of taxpayers affected, but the number is

likely to be limited, in part due to the limited number of drugs selected for the Drug

Price Negotiation Program in any particular year. In addition, these proposed regulations will assist taxpayers in meeting

their tax reporting obligations by providing clarity on how to report section 5000D

tax liability, which will make it easier for

taxpayers to comply with section 5000D.

Therefore, these proposed regulations will

not create additional obligations for, or

impose a significant economic impact on,

small entities, and a regulatory flexibility

analysis under the Regulatory Flexibility

Act is not required. Notwithstanding this

October 16, 2023

certification, the Treasury Department and

the IRS welcome comments on the impact

of these proposed regulations on small

entities.

IV. Section 7805(f)

Pursuant to section 7805(f) of the

Code, these proposed regulations have

been submitted to the Chief Counsel

for the Office of Advocacy of the Small

Business Administration for comment on

its impact on small business.

V. Unfunded Mandates Reform Act

Section 202 of the Unfunded Mandates

Reform Act of 1995 requires that agencies

assess anticipated costs and benefits and

take certain other actions before issuing a

final rule that includes any Federal mandate that may result in expenditures in

any one year by a State, local, or Tribal

government, in the aggregate, or by the

private sector, of $100 million in 1995

dollars, updated annually for inflation.

These proposed regulations do not include

any Federal mandate that may result in

expenditures by State, local, or Tribal

governments, or by the private sector, in

excess of that threshold.

V. Executive Order 13132: Federalism

Executive Order 13132 (Federalism)

prohibits an agency from publishing

any rule that has federalism implications if the rule either imposes substantial, direct compliance costs on State and

local governments, and is not required

by statute, or preempts State law, unless

the agency meets the consultation and

funding requirements of section 6 of the

Executive order. These proposed regulations do not have federalism implications, do not impose substantial direct

compliance costs on State and local

governments, and do not preempt State

law within the meaning of the Executive

order.

Statement of Availability of IRS

Documents

The IRS Notice cited in this preamble is

published in the Internal Revenue Bulletin

1084

(or Cumulative Bulletin) and is available

from the Superintendent of Documents,

U.S. Government Publishing Office,

Washington, DC 20402, or by visiting the

IRS website at https://www.irs.gov.

Comments and Requests for a Public

Hearing

Before these proposed amendments to

the regulations are adopted as final regulations, consideration will be given to

comments that are submitted timely to the

IRS as prescribed in the preamble under

the ADDRESSES heading. The Treasury

Department and the IRS request comments on all aspects of the proposed regulations. Any comments submitted will be

made available at https://www.regulations.

gov or upon request.

A public hearing will be scheduled if

requested in writing by any person who

timely submits electronic or written comments. Requests for a public hearing are

also encouraged to be made electronically. If a public hearing is scheduled,

notice of the date and time for the public

hearing will be published in the Federal

Drafting Information

The principal author of these regulations is Jacob W. Peeples of the Office of

the Associate Chief Counsel (Passthroughs

& Special Industries). However, other personnel from the Treasury Department and

the IRS participated in their development.

List of Subjects

26 CFR Part 40

Excise taxes, Reporting and recordkeeping requirements.

26 CFR Part 47

Excise taxes.

Proposed Amendments to the

Regulations

Accordingly, the Treasury Department

and the IRS propose to amend 26 CFR

chapter I, subchapter D, as follows:

Bulletin No. 2023–42

PART 40—EXCISE TAX

PROCEDURAL REGULATIONS

Paragraph 1. The authority citation

for part 40 continues to read in part as

follows:

Authority: 26 U.S.C. 7805.

*****

Par. 2. Section 40.0-1 is amended by

revising paragraphs (a) and (e) to read as

follows:

§40.0-1 Introduction.

(a) In general. The regulations in

this part are designated the Excise Tax

Procedural Regulations. The regulations in this part set forth administrative

provisions relating to the excise taxes

imposed by chapters 31 through 34,

36, 38, 39, 49, and 50A of the Internal

Revenue Code (Code) (except for the

chapter 32 tax imposed by section 4181

(firearms tax) and the chapter 36 taxes

imposed by sections 4461 (harbor maintenance tax) and 4481 (heavy vehicle use

tax)), and to floor stocks taxes imposed

on articles subject to any of these taxes.

Chapter 31 relates to retail excise taxes;

chapter 32 to manufacturers’ excise

taxes; chapter 33 to taxes imposed on

communications services and air transportation services; chapter 34 to taxes

imposed on certain insurance policies;

chapter 36 to taxes imposed on transportation by water; chapter 38 to environmental taxes; chapter 39 to taxes

imposed on registration-required obligations; chapter 49 to taxes imposed on

indoor tanning services; and chapter 50A

to taxes imposed on designated drugs.

References in this part to taxes also

include references to the fees imposed

by sections 4375 and 4376 of the Code.

See parts 43, 46 through 49, and 52 of

this chapter for regulations related to the

imposition of tax.

*****

(e) Applicability dates--(1) Paragraph

(a). Paragraph (a) of this section applies

to returns required to be filed under

§40.6011(a)-1 for calendar quarters beginning on or after October 1, 2023. For rules

that apply before October 1, 2023, see 26

CFR part 40, revised as of April 1, 2023.

Bulletin No. 2023–42

(2) Paragraphs (b) and (c). Paragraphs

(b) and (c) of this section apply to returns

for calendar quarters beginning after

March 31, 2013. For rules that apply

before March 31, 2013, see 26 CFR part

40, revised as of April 1, 2012.

(3) Paragraph (d). Paragraph (d) of

this section applies to returns for calendar

quarters beginning on or after January 19,

2021. For rules that apply before January

19, 2021, see 26 CFR part 40, revised as

of April 1, 2020.

Par. 3. Section 40.6011(a)-1 is

amended by:

1. Revising the first sentence of paragraph (a)(2)(i).

2. Adding paragraphs (d) and (e).

The revision and additions read as

follows:

§40.6011(a)-1 Returns.

(a) * * *

(2) * * *

(i) * * * Except as provided in paragraphs (b) through (d) of this section, the

return must be made for a period of one

calendar quarter. * * *

*****

(d) Tax on designated drugs. A return

that reports liability imposed by section

5000D must be made for a period of one

calendar quarter. A return must be filed

for each calendar quarter in which liability for the tax imposed by section 5000D

is incurred. There is no requirement that

a return be filed for a calendar quarter in

which there is no liability imposed by section 5000D.

(e) Applicability dates--(1) Paragraph

(a)(2)(i). Paragraph (a)(2)(i) of this section applies to returns filed for calendar

quarters beginning on or after October 1,

2023. For rules that apply before October

1, 2023, see 26 CFR part 40, revised as of

April 1, 2023.

(2) Paragraph (c). See paragraph (c)(2)

of this section.

(3) Paragraph (d). Paragraph (d) of

this section applies to returns filed for

calendar quarters beginning on and after

October 1, 2023.

Par. 4. Section 40.6302(c)-1 is

amended by:

1085

1. Revising paragraphs (e)(1)(iv) and

(v).

2. Adding paragraph (e)(1)(vi).

3. Revising paragraph (f).

The revisions and addition read as

follows:

§40.6302(c)-1 Deposits.

*****

(e) * * *

(1) * * *

(iv) Sections 4375 and 4376 (relating

to fees on health insurance policies and

self-insured insurance plans);

(v) Section 5000B (relating to indoor

tanning services); and

(vi) Section 5000D (relating to designated drugs).

*****

(f) Applicability dates--(1) Paragraphs

(a) through (d). Paragraphs (a) through

(d) of this section apply to deposits and

payments made after March 31, 2013. For

rules that apply before March 31, 2013,

see 26 CFR part 40, revised as of April 1,

2012.

(2) Paragraph (e). Paragraph (e) of

this section applies to calendar quarters

beginning on or after October 1, 2023.

For rules that apply before October 1,

2023, see 26 CFR part 40, revised as of

April 1, 2023.

Par. 5. Add part 47 to read as follows:

PART 47—DESIGNATED DRUGS

EXCISE TAX REGULATIONS

Sec.

47.5000D-0 Table of contents.

47.5000D-1 Introduction.

47.5000D-2 - 47.5000D-3 [Reserved]

Authority: 26 U.S.C. 7805.

Section 47.5000D-1 also issued under

26 U.S.C. 5000D.

§47.5000D-0 Table of contents.

This section lists the table of contents

for §§47.5000D-1 through 47.5000D-3.

§47.5000D-1 Introduction.

(a) In general.

(b) Applicability date.

October 16, 2023

§§47.5000D-2 and 47.5000D-3

[Reserved]

§47.5000D-1 Introduction.

(a) In general. The regulations in this

part are designated the Designated Drugs

Excise Tax Regulations. The regulations in

October 16, 2023

this part relate to the tax imposed by section 5000D of the Internal Revenue Code.

See part 40 of this chapter for regulations

relating to returns, payments, and other

procedural rules applicable to this part.

(b) Applicability date. This section

applies to returns filed for calendar quarters beginning on or after October 1, 2023.

1086

§§47.5000D-2 - 47.5000D-3 [Reserved]

Douglas W. O’Donnell,

Deputy Commissioner for Services and

Enforcement.

(Filed by the Office of the Federal Register September

27, 2023, 11:15 a.m., and published in the issue of the

Federal Register for October 02, 2023, 88 FR 67690)

Bulletin No. 2023–42

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

effect:

Amplified describes a situation where

no change is being made in a prior published position, but the prior position is

being extended to apply to a variation of

the fact situation set forth therein. Thus, if

an earlier ruling held that a principle applied to A, and the new ruling holds that

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

where the language in a prior ruling is being made clear because the language has

caused, or may cause, some confusion. It

is not used where a position in a prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously published ruling and points out an essential

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions.

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

new ruling does more than restate the substance of a prior ruling, a combination of

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

restate the valid portion of the previously published ruling in a new ruling that is

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names of

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations

to show that the previous published rulings will not be applied pending some

future action such as the issuance of new

or amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2023–42

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

October 16, 2023

Numerical Finding List1

Bulletin 2023–42

Announcements:

2023-18, 2023-30 I.R.B. 366

2023-19, 2023-30 I.R.B. 367

2023-20, 2023-30 I.R.B. 368

2023-17, 2023-31 I.R.B. 412

2023-21, 2023-31 I.R.B. 413

2023-22, 2023-32 I.R.B. 429

2023-23, 2023-34 I.R.B. 569

2023-24, 2023-35 I.R.B. 661

2023-25, 2023-37 I.R.B. 821

2023-26, 2023-37 I.R.B. 822

2023-28, 2023-37 I.R.B. 823

2023-29, 2023-41 I.R.B. 1064

Notices:

2023-29, 2023-29 I.R.B. 1

2023-45, 2023-29 I.R.B. 317

2023-47, 2023-29 I.R.B. 318

2023-37, 2023-30 I.R.B. 359

2023-50, 2023-30 I.R.B. 361

2023-51, 2023-30 I.R.B. 362

2023-54, 2023-31 I.R.B. 382

2023-53, 2023-32 I.R.B. 424

2023-55, 2023-32 I.R.B. 427

2023-57, 2023-34 I.R.B. 560

2023-58, 2023-34 I.R.B. 563

2023-59, 2023-34 I.R.B. 564

2023-52, 2023-35 I.R.B. 650

2023-61, 2023-35 I.R.B. 651

2023-62, 2023-37 I.R.B. 817

2023-56, 2023-38 I.R.B. 824

2023-63, 2023-39 I.R.B. 919

2023-64, 2023-40 I.R.B. 974

2023-66, 2023-40 I.R.B. 992

2023-68, 2023-41 I.R.B. 1060

2023-65, 2023-42 I.R.B. 1067

2023-67, 2023-42 I.R.B. 1074

2023-69, 2023-42 I.R.B. 1079

Revenue Procedures:—Continued

2023-27, 2023-35 I.R.B. 655

2023-17, 2023-37 I.R.B. 819

2023-30, 2023-40 I.R.B. 995

2023-31, 2023-40 I.R.B. 1057

2023-32, 2023-41 I.R.B. 1064

2023-35, 2023-42 I.R.B. 1079

Revenue Rulings:

2023-13, 2023-32 I.R.B. 413

2023-14, 2023-33 I.R.B. 484

2023-15, 2023-34 I.R.B. 559

2023-16, 2023-37 I.R.B. 796

2023-17, 2023-37 I.R.B. 798

2023-18, 2023-40 I.R.B. 972

2023-19, 2023-41 I.R.B. 1059

Treasury Decisions:

9976, 2023-30 I.R.B. 354

9977, 2023-31 I.R.B. 375

9978, 2023-32 I.R.B. 415

9979, 2023-35 I.R.B. 602

Proposed Regulations:

REG-124123-22, 2023-30 I.R.B. 369

REG-124930-21, 2023-31 I.R.B. 431

REG-120730-21, 2023-33 I.R.B. 491

REG-134420-10, 2023-34 I.R.B. 571

REG-109348-22, 2023-35 I.R.B. 662

REG-120727-21, 2023-36 I.R.B. 670

REG-122793-19, 2023-38 I.R.B. 829

REG-100908-23, 2023-39 I.R.B. 931

REG-115559-23, 2023-42 I.R.B. 1082

Revenue Procedures:

2023-31, 2023-25 I.R.B. 386

2023-26, 2023-33 I.R.B. 486

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2023–27 through 2023–52 is in Internal Revenue Bulletin

2023–52, dated December 27, 2023.

October 16, 2023

Bulletin No. 2023–42

Finding List of Current Actions on

Previously Published Items1

Bulletin 2023–42

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2023–27 through 2023–52 is in Internal Revenue Bulletin

2023–52, dated December 27, 2023.

Bulletin No. 2023–42

iii

October 16, 2023

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

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