# Bulletin No. 2023–42

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## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

HIGHLIGHTS
OF THIS ISSUE




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))
1
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),

(c) Adds an exception to the required
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),
(c) $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 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.

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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
(c) That meets the energy saving
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),
or
(c) The dwelling unit meets the most
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
Register (87 F.R. 73580, corrected in
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.
3

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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),
or
(c) The dwelling unit meets the most
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.
(c) Deemed Certification of National
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).
(c) Example 3. 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 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.
(c) Deemed Certification of National
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.
4

Bulletin No. 2023–42

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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,
(c) That the qualified home was
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.
(c) A declaration, applicable to the
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

1

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

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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,
La
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
of
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

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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
1
1

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).
2

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.
3

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
Register, are proposed to apply to calendar quarters beginning on or after October
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
Register.
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—Partnersh

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A94245857460b07df. Public record. Not legal advice.