Bulletin No. 2024–41

Agency decision

Ask Donna

What actually matters in this document.

Text

HIGHLIGHTS

OF THIS ISSUE

Bulletin No. 2024–41

October 7, 2024

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

EMPLOYEE PLANS

Announcement 2024-34, page 758.

Notice 2024-67, page 726.

The Office of Professional Responsibility (OPR) announces

recent disciplinary sanctions involving attorneys, certified

public accountants, enrolled agents, enrolled actuaries,

enrolled retirement plan agents, and appraisers. These

individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are

set out in Title 31, Code of Federal Regulations, Part 10,

and which are published in pamphlet form as Treasury

Department Circular No. 230. The regulations prescribe

the duties and restrictions relating to such practice and

prescribe the disciplinary sanctions for violating the regulations.

Rev. Proc. 2024-36, page 737.

This revenue procedure provides specifications for the private printing of red-ink and black-and-white substitutes for the

June 2024 revisions of Forms W-2c and W-3c. This revenue

procedure will be produced as the next revision of Publication

1223. Rev. Proc. 2023-39, 2023-52 IRB dated December

26, 2023, is superseded.

ADMINISTRATIVE, INCOME TAX

Notice 2024-68, page 729.

Optional special per diem rates. This notice provides the

2024-2025 special per diem rates for taxpayers to use in

substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. The

notice includes (1) the special transportation industry rate,

(2) the rate for the incidental expenses only deduction, and

(3) the rates and list of high-cost localities for the high-low

substantiation method.

Finding Lists begin on page ii.

This notice sets forth updates on the corporate bond

monthly yield curve, the corresponding spot segment rates

for August 2024 used under § 417(e)(3)(D), the 24-month

average segment rates applicable for September 2024, and

the 30-year Treasury rates, as reflected by the application of

§ 430(h)(2)(C)(iv).

INCOME TAX

Notice 2024-69, page 733.

This notice publishes the inflation adjustment factor and

reference price for calendar year 2024 for the renewable

electricity production credit under section 45 of the Internal

Revenue Code. The 2024 inflation adjustment factor and

reference price are used in determining the availability of

the credit and apply to calendar year 2024 sales of kilowatt hours of electricity produced in the United States or

a possession thereof from qualified energy resources. This

notice also provides the credit amounts for calendar year

2024 under section 45.

REG-118269-23, page 761.

These proposed regulations provide guidance on how to calculate the credit under § 30C, as amended by IRA (§ 30C

credit), including what constitutes an “item” of qualified alternative fuel vehicle refueling property, the additional costs

taken into account in determining the cost of the item for

purposes of calculating the credit, and how to treat dual-use

property. The proposed regulations also provide rules for

determining whether a population census tract is a qualified

alternative fuel vehicle refueling property for purposes of the

§ 30C credit. The proposed regulations also provide defini-

tions, general rules, and special rules in respect of §30C,

including basis reduction and recapture. The proposed regulations would also amend proposed Treas. Reg. sections

1.48-9(e)(10) and 1.48E-2(g)(6) to clarify that certain storage property qualifies for a credit under section 30C and

not for a credit under section 48. Additionally, he proposed

regulations would amend Treas. Reg. sections 1.6417-6(b)

(1) and 1.6418-5 to clarify the effects of basis reduction and

recapture provisions.

Rev. Proc. 2024-37, page 755.

This revenue procedure provides guidance to issuers of

tax-exempt and other tax-advantaged bonds regarding the

procedures for filing claims for recovery of overpayments

of rebate, penalty in lieu of rebate, and yield reduction payments under section 148(f) of the Internal Revenue Code.

This revenue procedure also modifies and supersedes Rev.

Proc. 2008-37, 2008-2 (Vol.1) C.B. 137, as modified by Rev.

Proc. 2017-50, 2017-37 I.R.B. 234, and supersedes Rev.

Proc. 2017-50.

Rev. Rul. 2024-21, page 724.

Federal rates; adjusted federal rates; adjusted federal longterm rate, and the long-term tax exempt rate. For purposes

of sections 382, 1274, 1288, 7872 and other sections of

the Code, tables set forth the rates for October 2024.

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 7, 2024

Bulletin No. 2024–41

Part I

Section 1274.—

Determination of Issue

Price in the Case of Certain

Debt Instruments Issued for

Property

(Also Sections 42, 280G, 382, 467, 468, 482, 483,

1288, 7520, 7872.)

Rev. Rul. 2024-21

This revenue ruling provides various prescribed rates for federal income

Annual

AFR

110% AFR

120% AFR

130% AFR

4.21%

4.64%

5.06%

5.49%

AFR

110% AFR

120% AFR

130% AFR

150% AFR

175% AFR

3.70%

4.08%

4.45%

4.83%

5.59%

6.52%

AFR

110% AFR

120% AFR

130% AFR

4.10%

4.52%

4.93%

5.35%

Short-term adjusted AFR

Mid-term adjusted AFR

Long-term adjusted AFR

October 7, 2024

tax purposes for October 2024 (the

current month). Table 1 contains the

short-term, mid-term, and long-term

applicable federal rates (AFR) for the

current month for purposes of section

1274(d) of the Internal Revenue Code.

Table 2 contains the short-term, midterm, and long-term adjusted applicable federal rates (adjusted AFR) for the

current month for purposes of section

1288(b). Table 3 sets forth the adjusted

federal long-term rate and the longterm tax-exempt rate described in section 382(f). Table 4 contains the appro-

priate percentages for determining the

low-income housing credit described in

section 42(b)(1) for buildings placed in

service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service

after July 30, 2008, shall not be less

than 9%. Finally, Table 5 contains the

federal rate for determining the present

value of an annuity, an interest for life

or for a term of years, or a remainder or

a reversionary interest for purposes of

section 7520.

REV. RUL. 2024-21 TABLE 1

Applicable Federal Rates (AFR) for October 2024

Period for Compounding

Semiannual

Quarterly

Short-term

4.17%

4.15%

4.59%

4.56%

5.00%

4.97%

5.42%

5.38%

Mid-term

3.67%

3.65%

4.04%

4.02%

4.40%

4.38%

4.77%

4.74%

5.51%

5.47%

6.42%

6.37%

Long-term

4.06%

4.04%

4.47%

4.45%

4.87%

4.84%

5.28%

5.25%

Annual

3.20%

2.81%

3.10%

REV. RUL. 2024-21 TABLE 2

Adjusted AFR for October 2024

Period for Compounding

Semiannual

3.17%

2.79%

3.08%

724

Monthly

4.13%

4.55%

4.95%

5.36%

3.64%

4.01%

4.36%

4.72%

5.45%

6.34%

4.03%

4.43%

4.82%

5.22%

Quarterly

3.16%

2.78%

3.07%

Monthly

3.15%

2.77%

3.06%

Bulletin No. 2024–41

REV. RUL. 2024-21 TABLE 3

Rates Under Section 382 for October 2024

Adjusted federal long-term rate for the current month

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal

long-term rates for the current month and the prior two months.)

3.10%

3.42%

REV. RUL. 2024-21 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for October 2024

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after

July 30, 2008, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit

7.90%

Appropriate percentage for the 30% present value low-income housing credit

3.39%

REV. RUL. 2024-21 TABLE 5

Rate Under Section 7520 for October 2024

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,

or a remainder or reversionary interest

Section 42.—Low-Income

Housing Credit

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

October 2024. See Rev. Rul. 2024-21, page 724.

Section 280G.—Golden

Parachute Payments

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

October 2024. See Rev. Rul. 2024-21, page 724.

Section 382.—Limitation

on Net Operating Loss

Carryforwards and

Certain Built-In Losses

Following Ownership

Change

The adjusted applicable federal long-term rate

is set forth for the month of October 2024. See Rev.

Rul. 2024-21, page 724.

Section 467.—Certain

Payments for the Use of

Property or Services

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

October 2024. See Rev. Rul. 2024-21, page 724.

Section 468.—Special

Rules for Mining and Solid

Waste Reclamation and

Closing Costs

The applicable federal short-term rates are set

forth for the month of October 2024. See Rev. Rul.

2024-21, page 724.

Section 482.—Allocation

of Income and Deductions

Among Taxpayers

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

October 2024. See Rev. Rul. 2024-21, page 724.

4.4%

Section 483.—Interest on

Certain Deferred Payments

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

October 2024. See Rev. Rul. 2024-21, page 724.

Section 1288.—Treatment

of Original Issue Discount

on Tax-Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month

of October 2024. See Rev. Rul. 2024-21, page 724.

Section 7520.—Valuation

Tables

The applicable federal mid-term rates are set

forth for the month of October 2024. See Rev. Rul.

2024-21, page 724.

Section 7872.—Treatment

of Loans With BelowMarket Interest Rates

The applicable federal short-term, mid-term,

and long-term rates are set forth for the month of

October 2024. See Rev. Rul. 2024-21, page 724.

Bulletin No. 2024–41

725

October 7, 2024

Part III

Update for Weighted

Average Interest Rates,

Yield Curves, and Segment

Rates

Notice 2024-67

This notice provides guidance on the

corporate bond monthly yield curve, the

corresponding spot segment rates used

under § 417(e)(3), and the 24-month

average segment rates under § 430(h)

(2) of the Internal Revenue Code. In

addition, this notice provides guidance

as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)

(II) as in effect for plan years beginning

before 2008 and the 30-year Treasury

weighted average rate under § 431(c)

(6)(E)(ii)(I).

YIELD CURVE AND SEGMENT

RATES

Section 430 specifies the minimum

funding requirements that apply to single-employer plans (except for CSEC plans

under § 414(y)) pursuant to § 412. Section

430(h)(2) specifies the interest rates that

Applicable Month

September 2024

must be used to determine a plan’s target

normal cost and funding target. Under

this provision, present value is generally

determined using three 24-month average

interest rates (“segment rates”), each of

which applies to cash flows during specified periods. To the extent provided under

§ 430(h)(2)(C)(iv), these segment rates

are adjusted by the applicable percentage

of the 25-year average segment rates for

the period ending September 30 of the

year preceding the calendar year in which

the plan year begins.1 However, an election may be made under § 430(h)(2)(D)

(ii) to use the monthly yield curve in place

of the segment rates.

Section 1.430(h)(2)-1(d) provides

rules for determining the monthly corporate bond yield curve,2 and § 1.430(h)

(2)-1(c) provides rules for determining

the 24-month average corporate bond

segment rates used to compute the target normal cost and the funding target.

Consistent with the methodology specified in § 1.430(h)(2)-1(d), the monthly

corporate bond yield curve derived from

August 2024 data is in Table 2024-8 at the

end of this notice. The spot first, second,

and third segment rates for the month of

August 2024 are, respectively, 4.50, 4.96,

and 5.40.

The 24-month average segment rates

determined under § 430(h)(2)(C)(i)

through (iii) must be adjusted pursuant to

§ 430(h)(2)(C)(iv) to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates. Those percentages are

95% and 105% for plan years beginning

in 2023, 2024 and 2025. For this purpose,

any 25-year average segment rate that is

less than 5% is deemed to be 5%. The

25-year average segment rates for plan

years beginning in 2023 and 2024 were

published in Notice 2022-40, 2022-40

I.R.B. 266 and Notice 2023-66, 2023-40

I.R.B. 992, respectively. For plan years

beginning in 2025, based on the segment

rates applicable for October 1999 to September 2024, the 25-year averages for the

period ending September 30, 2024, of the

first, second, and third segment rates are

3.27, 5.06, and 5.79 percent, respectively.

24-MONTH AVERAGE CORPORATE

BOND SEGMENT RATES

The three 24-month average corporate

bond segment rates applicable for September 2024 without adjustment for the

25-year average segment rate limits are as

follows:

24-Month Average Segment Rates Without 25-Year Average Adjustment

First Segment

Second Segment

5.07

5.33

The adjusted 24-month average segment rates set forth in the chart below

reflect § 430(h)(2)(C)(iv) of the Code. The

24-month averages applicable for September 2024, adjusted to be within the applicable minimum and maximum percent-

Third Segment

5.36

ages of the corresponding 25-year average

segment rates in accordance with § 430(h)

(2)(C)(iv) of the Code, are as follows:

Adjusted 24-Month Average Segment Rates

For Plan Years

Beginning In

Applicable Month

First Segment

Second Segment

Third Segment

2023

September 2024

5.07

5.33

5.74

2024

September 2024

5.07

5.33

5.59

2025

September 2024

5.07

5.31

5.50

Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount

of the full funding limitation under § 433(c)(7)(C)).

For months before February 2024, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts

the methodology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market.

Those enhancements are described in the preamble to TD 9986 (89 FR 2127).

October 7, 2024

726

Bulletin No. 2024–41

30-YEAR TREASURY SECURITIES

INTEREST RATES

Section 431 specifies the minimum

funding requirements that apply to multiemployer plans pursuant to § 412. Section

431(c)(6)(B) specifies a minimum amount

for the full-funding limitation described in

§ 431(c)(6)(A), based on the plan’s current

liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must

be no more than 5 percent above and no

more than 10 percent below the weighted

average of the rates of interest on 30-year

Treasury securities during the four-year

period ending on the last day before the

beginning of the plan year. Notice 88-73,

1988-2 C.B. 383, provides guidelines for

determining the weighted average interest rate. The rate of interest on 30-year

Treasury securities for August 2024 is

4.15 percent. The Service determined this

rate as the average of the daily determi-

For Plan Years Beginning In

Treasury Weighted Average Rates

30-Year Treasury Weighted Average

Permissible Range 90% to 105%

September 2024

3.63

3.27 to 3.81

under § 417(e)(3)(D) are segment rates

computed without regard to a 24-month

average. Section 1.417(e)-1(d)(3) and

Notice 2007-81 provide guidelines for

determining the minimum present value

segment rates. Pursuant to those guidelines,

the minimum present value segment rates

determined for August 2024 are as follows:

MINIMUM PRESENT VALUE

SEGMENT RATES

In general, the applicable interest rates

Month

August 2024

Minimum Present Value Segment Rates

First Segment

Second Segment

4.50

4.96

DRAFTING INFORMATION

The principal author of this notice is

Tom Morgan of the Office of Associ-

Bulletin No. 2024–41

nations of yield on the 30-year Treasury

bond maturing in May 2054 determined

each day through August 7, 2024 and the

yield on the 30-year Treasury bond maturing in August 2054 determined each day

for the balance of the month. For plan

years beginning in September 2024, the

weighted average of the rates of interest

on 30-year Treasury securities and the

permissible range of rates used to calculate current liability are as follows:

ate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). However, other personnel from

the IRS participated in the development

727

Third Segment

5.40

of this guidance. For further information

regarding this notice, contact Mr. Morgan

at 202-317-6700 or Tony Montanaro at

626-927-1475 (not toll-free numbers).

October 7, 2024

Table 2024-8

Monthly Yield Curve for August 2024

Derived from August 2024 Data

Maturity

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

15.5

16.0

16.5

17.0

17.5

18.0

18.5

19.0

19.5

20.0

Yield

5.05

4.81

4.61

4.46

4.37

4.33

4.31

4.32

4.34

4.37

4.41

4.45

4.50

4.55

4.60

4.65

4.69

4.74

4.78

4.82

4.86

4.90

4.94

4.97

5.01

5.04

5.07

5.10

5.12

5.15

5.17

5.19

5.21

5.23

5.25

5.26

5.28

5.29

5.30

5.31

October 7, 2024

Maturity

20.5

21.0

21.5

22.0

22.5

23.0

23.5

24.0

24.5

25.0

25.5

26.0

26.5

27.0

27.5

28.0

28.5

29.0

29.5

30.0

30.5

31.0

31.5

32.0

32.5

33.0

33.5

34.0

34.5

35.0

35.5

36.0

36.5

37.0

37.5

38.0

38.5

39.0

39.5

40.0

Yield

5.31

5.32

5.33

5.34

5.35

5.36

5.37

5.38

5.39

5.40

5.41

Maturity

40.5

41.0

41.5

42.0

42.5

43.0

43.5

44.0

44.5

45.0

45.5

46.0

46.5

47.0

47.5

48.0

48.5

49.0

49.5

50.0

50.5

51.0

51.5

52.0

52.5

53.0

53.5

54.0

54.5

55.0

55.5

56.0

56.5

57.0

57.5

58.0

58.5

59.0

59.5

60.0

Yield

5.41

5.42

5.43

5.44

5.45

5.46

5.47

5.48

728

Maturity

60.5

61.0

61.5

62.0

62.5

63.0

63.5

64.0

64.5

65.0

65.5

66.0

66.5

67.0

67.5

68.0

68.5

69.0

69.5

70.0

70.5

71.0

71.5

72.0

72.5

73.0

73.5

74.0

74.5

75.0

75.5

76.0

76.5

77.0

77.5

78.0

78.5

79.0

79.5

80.0

Yield

5.48

5.49

5.50

5.51

Maturity

80.5

81.0

81.5

82.0

82.5

83.0

83.5

84.0

84.5

85.0

85.5

86.0

86.5

87.0

87.5

88.0

88.5

89.0

89.5

90.0

90.5

91.0

91.5

92.0

92.5

93.0

93.5

94.0

94.5

95.0

95.5

96.0

96.5

97.0

97.5

98.0

98.5

99.0

99.5

100.0

Yield

5.51

5.52

5.53

Bulletin No. 2024–41

2024-2025 Special Per

Diem Rates

Notice 2024-68

SECTION 1. PURPOSE

This annual notice provides the 20242025 special per diem rates for taxpayers to use in substantiating the amount of

ordinary and necessary business expenses

incurred while traveling away from home,

specifically (1) the special transportation

industry meal and incidental expenses

(M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the

rates and list of high-cost localities for

purposes of the high-low substantiation

method.

SECTION 2. BACKGROUND

Rev. Proc. 2019-48, 2019-51 I.R.B.

1392 (or successor), provides rules for

using a per diem rate to substantiate, under

§ 274(d) of the Internal Revenue Code and

§ 1.274-5 of the Income Tax Regulations,

the amount of ordinary and necessary

Key City

Gulf Shores

Phoenix/Scottsdale

Sedona

Los Angeles

Mammoth Lakes

Monterey

Napa

Palm Springs

San Diego

San Francisco

San Luis Obispo

Santa Barbara

Santa Monica

South Lake Tahoe

Bulletin No. 2024–41

business expenses paid or incurred while

traveling away from home. Taxpayers

using the rates and list of high-cost localities provided in this notice must comply

with Rev. Proc. 2019-48 (or successor).

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

provides the rates and list of high-cost

localities for the period October 1, 2023,

to September 30, 2024.

SECTION 3. SPECIAL M&IE

RATES FOR TRANSPORTATION

INDUSTRY

The special M&IE rates for taxpayers

in the transportation industry are $80 for

any locality of travel in the continental

United States (CONUS) and $86 for any

locality of travel outside the continental

United States (OCONUS). See section

4.04 of Rev. Proc. 2019-48 (or successor).

SECTION 4. RATE FOR

INCIDENTAL EXPENSES ONLY

DEDUCTION

The rate for any CONUS or OCONUS locality of travel for the incidental

expenses only deduction is $5 per day.

See section 4.05 of Rev. Proc. 2019-48 (or

successor).

SECTION 5. HIGH-LOW

SUBSTANTIATION METHOD

1. Annual high-low rates. For purposes

of the high-low substantiation method, the

per diem rates in lieu of the rates described

in Notice 2023-68 (the per diem substantiation method) are $319 for travel to any

high-cost locality and $225 for travel to

any other locality within CONUS. The

amount of the $319 high rate and $225

low rate that is treated as paid for meals

for purposes of § 274(n) is $86 for travel

to any high-cost locality and $74 for travel

to any other locality within CONUS. See

section 5.02 of Rev. Proc. 2019-48 (or

successor). The per diem rates in lieu of

the rates described in Notice 2023-68 (the

meal and incidental expenses only substantiation method) are $86 for travel to

any high-cost locality and $74 for travel to

any other locality within CONUS.

2. High-cost localities. The following

localities have a federal per diem rate of

$272 or more, and are high-cost localities

for the specified portion of the calendar year:

County or Other Defined Location

Portion of Calendar Year

Alabama

Baldwin

June 1 – July 31

Arizona

Maricopa

February 1 – March 31

City limits of Sedona

October 1 – December 31 and March 1 – September 30

California

Los Angeles, Orange, and Ventura, and October 1 – September 30

Edwards AFB, less the city of Santa

Monica

Mono

December 1 – March 31

Monterey

October 1 – September 30

Napa

October 1 – November 30 and February 1 – September 30

Riverside

October 1 – April 30

San Diego

October 1 – September 30

San Francisco

October 1 – September 30

San Luis Obispo

June 1 – July 31

Santa Barbara

October 1 – September 30

City limits of Santa Monica

October 1 – September 30

El Dorado

December 1 – March 31

729

October 7, 2024

Key City

Sunnyvale/Palo Alto/San

Jose

Yosemite National Park

County or Other Defined Location

Santa Clara

Portion of Calendar Year

October 1 – September 30

Mariposa

January 1 – April 30

Colorado

Aspen

Denver/Aurora

Pitkin

October 1 – September 30

Denver, Adams, Arapahoe, and

October 1 – October 31 and April 1 – September 30

Jefferson

Silverthorne/Breckenridge Summit

December 1 – March 31

Steamboat Springs

Routt

December 1 – March 31

Telluride

San Miguel

October 1 – September 30

Vail

Eagle

October 1 – September 30

Delaware

Lewes

Sussex

June 1 – August 31

District of Columbia

Washington, D.C. (also the cities of Alexandria, Falls Church, and

October 1 – September 30

Fairfax, and the counties of Arlington and Fairfax, in Virginia; and

the counties of Montgomery and Prince George’s in Maryland) (See

also Maryland and Virginia)

Florida

Boca Raton/Delray Beach/ Palm Beach and Hendry

January 1 – April 30

Jupiter

Bradenton

Manatee

February 1 – March 31

Cocoa Beach

Brevard

February 1 – March 31

Fort Lauderdale

Broward

January 1 – April 30

Fort Myers

Lee

January 1 – March 31

Fort Walton Beach/

Okaloosa and Walton

June 1 – July 31

DeFuniak Springs

Gulf Breeze

Santa Rosa

June 1 – July 31

Key West

Monroe

October 1 – September 30

Miami

Miami-Dade

December 1 – May 31

Naples

Collier

December 1 – April 30

Panama City

Bay

June 1 – July 31

Sarasota

February 1 – April 30

Sebring

Highlands

February 1 – March 31

Stuart

Martin

February 1 – March 31

Tampa/St. Petersburg

Pinellas and Hillsborough

February 1 – April 30

Vero Beach

Indian River

December 1 – April 30

Georgia

Atlanta

Fulton and DeKalb

January 1 – March 31

Jekyll Island/Brunswick

Glynn

March 1 – July 31

Idaho

Boise

Ada

October 1 – October 31 and June 1 – September 30

Coeur d’Alene

Kootenai

June 1 – August 31

Sun Valley/Ketchum

Blaine and Elmore

December 31 – March 31 and June 1 – September 30

Illinois

Chicago

Cook and Lake

October 1 – November 30 and April 1 – September 30

October 7, 2024

730

Bulletin No. 2024–41

Key City

Bar Harbor/Rockport

Kennebunk/Kittery/

Sanford

Portland

County or Other Defined Location

Portion of Calendar Year

Maine

Hancock and Knox

October 1 – October 31 and May 1 – September 30

York

July 1 – August 31

Cumberland and Sagadahoc

October 1 – October 31 and June 1 – September 30

Maryland

Ocean City

Washington, D.C.

Metropolitan Area

Boston/Cambridge

Falmouth

Hyannis

Martha’s Vineyard

Nantucket

Mackinac Island

Petoskey

Traverse City

Duluth

Big Sky/West

Yellowstone/Gardiner

Kalispell/Whitefish

Toms River

Glens Falls

Lake Placid

New York City

Saratoga Springs/

Schenectady

Worcester

Montgomery and Prince George’s

Massachusetts

Suffolk and city of Cambridge

October 1 – September 30

City limits of Falmouth

July 1 – August 31

Barnstable less the city of Falmouth

July 1 – August 31

Dukes

October 1 – September 30

Nantucket

June 1 – September 30

Michigan

Mackinac

July 1 – August 31

Emmet

June 1 – August 31

Grand Traverse

July 1 – August 31

Minnesota

St. Louis

October 1 – October 31 and June 1 – September 30

Montana

Gallatin and Park

June 1 – September 30

Flathead

July 1 – September 30

New Jersey

Ocean

July 1 – August 31

New York

Warren

July 1 – August 31

Essex

July 1 – August 31

Bronx, Kings, New York, Queens, and October 1 – December 31 and March 1 – September 30

Richmond

Saratoga and Schenectady

July 1 – August 31

Kill Devil Hills

Dare

Bend

Eugene/Florence

Seaside

Deschutes

Lane

Clatsop

Hershey

Philadelphia

Hershey

Philadelphia

Jamestown/Middletown/

Newport

Bulletin No. 2024–41

June 1 – August 31

October 1 – September 30

North Carolina

June 1 – August 31

Oregon

June 1 – August 31

June 1 – July 31

July 1 – August 31

Pennsylvania

June 1 – August 31

October 1 – November 30 and April 1 – September 30

Rhode Island

October 1 – October 31 and June 1 – September 30

731

October 7, 2024

Key City

Charleston

Hilton Head

Nashville

Moab

Park City

Burlington

Manchester

Montpelier

Virginia Beach

Wallops Island

Washington, D.C.

Metropolitan Area

Port Angeles/Port

Townsend

Seattle

County or Other Defined Location

Portion of Calendar Year

South Carolina

Charleston, Berkeley, and Dorchester

October 1 – September 30

Beaufort

March 1 – August 31

Tennessee

Davidson

October 1 – September 30

Utah

Grand

October 1 – October 31, March 1 – June 30, and

September 1 – September 30

Summit

October 1 – September 30

Vermont

Chittenden

October 1 – October 31 and May 1 – September 30

Bennington

October 1 – October 31 and August 1 – September 30

Washington

October 1 – October 31 and August 1 – September 30

Virginia

City of Virginia Beach

June 1 – August 31

Accomack

July 1 – August 31

Cities of Alexandria, Falls Church,

October 1 – September 30

and Fairfax; counties of Arlington and

Fairfax

Washington

Clallam and Jefferson

July 1 – August 31

King

October 1 – September 30

Wyoming

Jackson/Pinedale

Teton and Sublette

3. Changes in high-cost localities. The

list of high-cost localities in this notice

differs from the list of high-cost localities

in section 5 of Notice 2023-68.

a. The following localities have been

added to the list of high-cost localities:

Los Angeles, California; Mammoth

Lakes, California; Palm Springs, California; South Lake Tahoe, California; Boise,

Idaho; Coeur d’Alene, Idaho; Bend, Oregon; Burlington, Vermont.

b. The following localities have

changed the portion of the year in which

they are high-cost localities: Sedona,

Arizona; Monterey, California; Napa,

California; San Luis Obispo, California; Yosemite National Park, California;

Aspen, Colorado; Silverthorne/Breckenridge, Colorado; Lewes, Delaware; District of Columbia (see also Maryland and

Virginia); Boca Raton/Delray Beach/Jupiter, Florida; Fort Myers, Florida; Tampa/

St. Petersburg, Florida; Vero Beach,

October 7, 2024

October 1 – September 30

Florida; Bar Harbor/Rockport, Maine;

Portland, Maine; Ocean City, Maryland;

Washington, D.C. Metropolitan Area in

Maryland (counties of Montgomery and

Prince George’s); Falmouth, Massachusetts; Nantucket, Massachusetts; Petoskey, Michigan; Kalispell/Whitefish, Montana; Kill Devil Hills, North Carolina;

Philadelphia, Pennsylvania; Moab, Utah;

Washington, D.C. Metropolitan Area

in Virginia (cities of Alexandria, Falls

Church, and Fairfax; counties of Arlington and Fairfax); Seattle, Washington.

c. The following localities have been

removed from the list of high-cost localities: Mill Valley/San Rafael/Novato, California; Oakland, California; San Mateo/

Foster City/Belmont, California; Grand

Lake, Colorado; Pensacola, Florida;

Punta Gorda, Florida; Missoula, Montana;

Carlsbad, New Mexico; Lincoln City,

Oregon; Myrtle Beach, South Carolina;

Cody, Wyoming.

732

SECTION 6. EFFECTIVE DATE

This notice is effective for per diem

allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any

employee on or after October 1, 2024,

for travel away from home on or after

October 1, 2024. For purposes of computing the amount allowable as a deduction for travel away from home, this

notice is effective for meal and incidental

expenses or for incidental expenses only

paid or incurred on or after October 1,

2024. See sections 4.06 and 5.04 of Rev.

Proc. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2024.

SECTION 7. EFFECT ON OTHER

DOCUMENTS

Notice 2023-68 is superseded.

Bulletin No. 2024–41

DRAFTING INFORMATION

The principal author of this notice is C.

Dylan Durham of the Office of Associate

Chief Counsel (Income Tax & Accounting). For further information regarding

this notice, contact Mr. Durham at 202317-7005 (not a toll-free number).

Credit for Renewable

Electricity Production and

Publication of Inflation

Adjustment Factor and

Reference Price for

Calendar Year 2024

Notice 2024-69

This notice publishes the inflation

adjustment factor and reference price for

calendar year 2024 for the renewable electricity production credit under section 45

of the Internal Revenue Code (section 45

credit). The 2024 inflation adjustment factor and reference price are used in determining the availability of the credit and

apply to calendar year 2024 sales of kilowatt hours of electricity produced in the

United States or a possession thereof from

qualified energy resources.

BACKGROUND

Section 45 was amended by section

13101 of Public Law 117-169, 136 Stat.

1818 (August 16, 2022), commonly

known as the Inflation Reduction Act

of 2022 (IRA). The IRA changed the

manner in which the section 45 credit

amounts are calculated for any qualified

facility placed in service after December

31, 2021.

As amended by the IRA, section 45(b)

(6)(A) provides that, in the case of any

qualified facility that satisfies the requirements of section 45(b)(6)(B), the credit

amount determined under section 45(a)

(determined after the application of sec-

tion 45(b)(1) through (5) and without

regard to section 45(b)(6)) is equal to

such amount multiplied by 5. A qualified

facility satisfies the requirements of section 45(b)(6)(B) if it is placed in service

after December 31, 2021, and it is one of

the following: (i) a facility with a maximum net output of less than 1 megawatt

(as measured in alternating current); (ii)

a facility the construction of which began

prior to January 29, 2023, which is the

date that is 60 days after the publication of

the guidance with respect to the requirements of section 45(b)(7)(A) (prevailing

wage requirements) and section 45(b)(8)

(apprenticeship requirements);1 or (iii) a

facility that satisfies the requirements of

section 45(b)(7)(A) and (8). The IRA also

added bonus credit amounts with respect

to qualified facilities placed in service after

December 31, 2022, that meet domestic

content requirements under section 45(b)

(9)2 or energy community requirements

under section 45(b)(11).3

The IRA amended the phaseout of the

section 45 credit for wind facilities under

section 45(b)(5) such that it does not apply

to facilities placed in service after December 31, 2021. The IRA also added a new

phaseout of the section 45 credit under

section 45(b)(10) in the case of qualified

facilities placed in service after December

31, 2022, for taxpayers making an elective payment election under section 6417.

The IRA also amended the credit amount

reduction under section 45(b)(3) in the

case of qualified facilities the construction

of which began after August 16, 2022.

The IRA amended section 45(d)(4) to

restore the section 45 credit for electricity produced in solar energy facilities in

the case of qualified facilities placed in

service after December 31, 2021, and the

construction of which begins before January 1, 2025. Effective for facilities placed

in service after December 31, 2022, the

IRA (1) removed the one-half reduction

of the credit amount under section 45(b)

(4)(A) for qualified hydropower facilities

and marine and hydrokinetic renewable

energy facilities and (2) amended the definition of marine and hydrokinetic renew-

able energy under section 45(c)(10) and

the definition of a marine and hydrokinetic

renewable energy facility under section

45(d)(11). The IRA also extended certain

deadlines in the definitions under section

45(d) for wind facilities, closed-loop biomass facilities, open-loop biomass facilities, geothermal facilities, landfill gas

facilities, trash facilities, qualified hydropower facilities, and marine and hydrokinetic renewable energy facilities.

Section 45(a) provides that the renewable electricity production credit for any

tax year is an amount equal to the product

of the kilowatt hours of specified electricity produced by the taxpayer and sold to

an unrelated person during the tax year

multiplied by 1.5 cents (in the case of a

qualified facility placed in service before

January 1, 2022) or 0.3 cents (in the case

of a qualified facility placed in service

after December 31, 2021). This electricity

must be produced from qualified energy

resources and at a qualified facility during

the 10-year period beginning on the date

the facility was originally placed in service.

Section 45(b)(1) provides that the

amount of the credit determined under

section 45(a) is reduced by an amount

which bears the same ratio to the amount

of the credit as the amount by which the

reference price for the calendar year in

which the sale occurs exceeds 8 cents,

bears to 3 cents. Under section 45(b)(2),

the 1.5 cent (or 0.3 cent) amount in section 45(a) and the 8 cent amount in section

45(b)(1) are each adjusted by multiplying

such amount by the inflation adjustment

factor for the calendar year in which the

sale occurs. In the case of any qualified

facility placed in service before January

1, 2022, if any amount as increased under

section 45(b)(2) is not a multiple of 0.1

cent, such amount is rounded to the nearest multiple of 0.1 cent. In the case of any

qualified facility placed in service after

December 31, 2021, if the 0.3 cent amount

as increased under section 45(b)(2) is not

a multiple of 0.05 cent, such amount is

rounded to the nearest multiple of 0.05

cent.

See §§ 1.45-6, 1.45-7, 1.45-8, and 1.45-12 of the Income Tax Regulations for additional information regarding the requirements of section 45(b)(6)(B).

See Notice 2023-38, 2023-22 I.R.B. 872 (May 12, 2023) and Notice 2024-41, IR-2024-140 (May 16, 2024), corrected at IR 2024-147 (May 24, 2024), for additional information regarding

the domestic content bonus credit.

See Notice 2024-30, 2024-16 I.R.B. 878 (April 15, 2024), for additional information regarding the energy community bonus credit.

Bulletin No. 2024–41

733

October 7, 2024

In the case of electricity produced in

open-loop biomass facilities, landfill gas

facilities, trash facilities, qualified hydropower facilities, and, if placed in service before January 1, 2023, marine and

hydrokinetic renewable energy facilities,

section 45(b)(4)(A) requires the amount

in effect under section 45(a)(1) for such

calendar year (determined before rounding as required by section 45(b)(2)) to be

reduced by one-half. As amended by the

IRA, the one-half reduction under section

45(b)(4)(A) no longer applies to qualified hydropower facilities and marine and

hydrokinetic renewable energy facilities

placed in service after December 31, 2022.

Section 45(b)(5) provides that in the

case of any qualified wind facility placed

in service before January 1, 2022, the

amount of the credit determined under

section 45(a) (determined after the application of section 45(b)(1), (2), and (3) and

without regard to section 45(b)(5)) shall

be reduced by (A) in the case of any facility the construction of which began after

December 31, 2016, and before January 1,

2018, 20 percent, (B) in the case of any

facility the construction of which began

after December 31, 2017, and before January 1, 2019, 40 percent, (C) in the case

of any facility the construction of which

began after December 31, 2018, and

before January 1, 2020, 60 percent, and

(D) in the case of any facility the construction of which began after December

31, 2019, and before January 1, 2022, 40

percent.

Section 45(c)(1) defines qualified

energy resources as wind, closed-loop

biomass, open-loop biomass, geothermal energy, solar energy, municipal solid

waste, qualified hydropower production,

and marine and hydrokinetic renewable

energy.

Section 45(d)(1) defines a qualified

facility using wind to produce electricity as any facility owned by the taxpayer

that is originally placed in service after

December 31, 1993, and the construction

of which begins before January 1, 2025.

See section 45(e)(7) for rules relating to

the inapplicability of the credit to electricity sold to utilities under certain contracts.

Section 45(d)(2)(A) defines a qualified facility using closed-loop biomass to

produce electricity as any facility owned

by the taxpayer that is originally placed

October 7, 2024

in service after December 31, 1992, and

the construction of which begins before

January 1, 2025, or owned by the taxpayer which before January 1, 2025, is

originally placed in service and modified

to use closed-loop biomass to co-fire with

coal, with other biomass, or with both, but

only if the modification is approved under

the Biomass Power for Rural Development Programs or is part of a pilot project

of the Commodity Credit Corporation as

described in 65 FR 63052. For purposes

of section 45(d)(2)(A)(ii), a facility shall

be treated as modified before January 1,

2025, if the construction of such modification begins before such date. Section 45(d)

(2)(C) provides that in the case of a qualified facility described in section 45(d)(2)

(A)(ii), the 10-year period referred to in

section 45(a) is treated as beginning no

earlier than the date of the enactment of

section 45(d)(2)(C)(i) (October 22, 2004),

and if the owner of such facility is not the

producer of the electricity, the person eligible for the credit allowable under section

45(a) is the lessee or the operator of such

facility. A qualified facility using closedloop biomass includes a new unit placed

in service after the date of the enactment

of section 45(d)(2)(B) (October 3, 2008)

in connection with a qualified facility

using closed-loop biomass, but only to the

extent of the increased amount of electricity produced at the facility by reason of

such new unit.

Section 45(d)(3)(A) defines a qualified

facility using open-loop biomass to produce electricity as any facility owned by

the taxpayer which in the case of a facility

using agricultural livestock waste nutrients, is originally placed in service after

the date of the enactment of section 45(d)

(3)(A)(i)(I) (October 22, 2004) and the

construction of which begins before January 1, 2025, and the nameplate capacity

rating of which is not less than 150 kilowatts, and in the case of any other facility,

the construction of which begins before

January 1, 2025. In the case of any facility described in section 45(d)(3)(A), if

the owner of such facility is not the producer of the electricity, section 45(d)(3)

the credit allowable under section 45(a) is

the lessee or the operator of such facility.

A qualified facility using open-loop biomass includes a new unit placed in service

734

after the date of the enactment of section

45(d)(3)(B) (October 3, 2008) in connection with a qualified facility using openloop biomass, but only to the extent of the

increased amount of electricity produced

at the facility by reason of such new unit.

Section 45(d)(4) defines a qualified

facility using geothermal energy to produce electricity as any facility owned by

the taxpayer that is originally placed in

service after the date of the enactment of

section 45(d)(4) (October 22, 2004) and

the construction of which begins before

January 1, 2025. A qualified facility using

geothermal energy does not include any

property described in section 48(a)(3) the

basis of which is taken into account by the

taxpayer for purposes of determining the

energy credit under section 48.

As amended by the IRA and effective

for solar energy facilities placed in service

after December 31, 2021, section 45(d)(4)

also defines a qualified facility using solar

energy to produce electricity as any facility owned by the taxpayer that is originally placed in service after the date of the

enactment of section 45(d)(4) (October

22, 2004) and the construction of which

begins before January 1, 2025. A qualified

facility using solar energy does not include

any property described in section 48(a)(3)

the basis of which is taken into account by

the taxpayer for purposes of determining

the energy credit under section 48.

Section 45(d)(6) defines a qualified

facility using gas derived from the biodegradation of municipal solid waste to

produce electricity as any facility owned

by the taxpayer that is originally placed in

service after the date of the enactment of

section 45(d)(6) (October 22, 2004) and

the construction of which begins before

January 1, 2025.

Section 45(d)(7) defines a qualified

facility (other than a facility described in

section 45(d)(6)) that uses municipal solid

waste to produce electricity as any facility owned by the taxpayer that is originally placed in service after the date of the

enactment of section 45(d)(7) (October

22, 2004) and the construction of which

begins before January 1, 2025. A qualified facility using municipal solid waste

includes a new unit placed in service in

connection with a facility placed in service on or before the date of the enactment

of section 45(d)(7), but only to the extent

Bulletin No. 2024–41

of the increased amount of electricity produced at the facility by reason of such new

unit.

Section 45(d)(9) defines a qualified

facility producing qualified hydroelectric

production (as described in section 45(c)

(8)) as (i) any facility producing incremental hydropower production, but only to the

extent of its incremental hydropower production attributable to efficiency improvements or additions to capacity described in

section 45(c)(8)(B) placed in service after

the date of the enactment of section 45(d)

(9) (August 8, 2005) and before January

1, 2025, and (ii) any other facility placed

in service after the date of the enactment

of section 45(d)(9) (August 8, 2005) and

the construction of which begins before

January 1, 2025. Section 45(d)(9)(B) provides that, in the case of a qualified facility described in section 45(d)(9)(A), the

10-year period referred to in section 45(a)

shall be treated as beginning on the date

the efficiency improvements or additions

to capacity are placed in service. Section

45(d)(9)(C) provides that for purposes

of section 45(d)(9)(A)(i), an efficiency

improvement or addition to capacity shall

be treated as placed in service before January 1, 2025, if the construction of such

improvement or addition begins before

such date.

As amended by the IRA, section 45(d)

(11) provides that, in the case of a facility producing electricity from marine

and hydrokinetic renewable energy, the

term “qualified facility” means any facility owned by the taxpayer which has a

nameplate capacity rating of at least 150

kilowatts (or at least 25 kilowatts in the

case of a facility placed in service after

December 31, 2022), and is originally

placed in service on or after the date of

the enactment of section 45(d)(11) (October 3, 2008) and the construction of which

begins before January 1, 2025.

Section 45(e)(2)(A) requires the Secretary to determine and publish in the Federal Register each calendar year the inflation adjustment factor and the reference

price for such calendar year. The inflation

adjustment factor and the reference price

for the 2024 calendar year were published

in the Federal Register at 89 FR 56924

on July 11, 2024. A correction notice was

published in the Federal Register at 89 FR

76191 on September 17, 2024.

Section 45(e)(2)(B) defines the inflation adjustment factor for a calendar year

as a fraction the numerator of which is the

GDP implicit price deflator for the preceding calendar year and the denominator

of which is the GDP implicit price deflator for the calendar year 1992. The term

“GDP implicit price deflator” means the

most recent revision of the implicit price

deflator for the gross domestic product as

computed and published by the Department of Commerce before March 15 of

the calendar year.

Section 45(e)(2)(C) provides that the

reference price with respect to a calendar

year is the Secretary’s determination of

the annual average contract price per kilowatt hour of electricity generated from the

same qualified energy resource and sold

in the previous year in the United States.

Only contracts entered into after December 31, 1989, are taken into account.

INFLATION ADJUSTMENT

FACTOR AND REFERENCE PRICE

The inflation adjustment factor for

calendar year 2024 for qualified energy

resources is 1.9499.

The reference price for calendar year

2024 for facilities producing electricity

from wind (based upon information provided by the Department of Energy) is

3.15 cents per kilowatt hour. The reference prices for facilities producing electricity from closed-loop biomass, openloop biomass, geothermal energy, solar

energy, municipal solid waste, qualified

hydropower production, and marine and

hydrokinetic renewable energy have not

been determined for calendar year 2024.

PHASEOUT CALCULATION

Because the 2024 reference price for

electricity produced from wind (3.15 cents

per kilowatt hour) does not exceed 8 cents

multiplied by the inflation adjustment factor (1.9499), the phaseout of the credit provided in section 45(b)(1) does not apply to

such electricity sold during calendar year

2024. However, section 45(b)(5) provides

an additional phaseout of the credit for

wind facilities placed in service before

January 1, 2022, and the construction of

which began after December 31, 2016.

For electricity produced from closed-loop

biomass, open-loop biomass, geothermal energy, solar energy, municipal solid

waste, qualified hydropower production,

and marine and hydrokinetic renewable

energy, the phaseout of the credit provided

in section 45(b)(1) does not apply to such

electricity sold during calendar year 2024.

CREDIT AMOUNT FOR A

QUALIFIED FACILITY PLACED

IN SERVICE BEFORE JANUARY 1,

2022

As required by section 45(b)(2), the 1.5

cent amount provided in section 45(a)(1)

is adjusted by multiplying such amount

by the inflation adjustment factor for the

calendar year in which the sale occurs.

If any amount as increased under section

45(b)(2) is not a multiple of 0.1 cent, such

amount is rounded to the nearest multiple of 0.1 cent. In the case of electricity

produced in open-loop biomass facilities,

landfill gas facilities, trash facilities, qualified hydropower facilities, and marine and

hydrokinetic renewable energy facilities,

section 45(b)(4)(A) requires the amount in

effect under section 45(a)(1) for such calendar year (before rounding to the nearest

0.1 cent as required by section 45(b)(2)) to

be reduced by one-half.4

Under the calculation required by section 45(b)(2), the credit for renewable

electricity production for calendar year

2024 determined under section 45(a) is

2.9 cents per kilowatt hour on the sale of

electricity produced in any qualified facility placed in service before January 1,

2022, from the qualified energy resources

of wind, closed-loop biomass, and geothermal energy, and 1.5 cents per kilowatt

hour on the sale of electricity produced

in any qualified facility placed in service

before January 1, 2022, from the qualified

energy resources of open-loop biomass,

landfill gas, trash, qualified hydropower,

and marine and hydrokinetic renewable

energy.

As amended by the IRA and discussed later in this notice, the one-half reduction under section 45(b)(4)(A) no longer applies to qualified hydropower facilities and marine and hydrokinetic

renewable energy facilities placed in service after December 31, 2022.

Bulletin No. 2024–41

735

October 7, 2024

CREDIT AMOUNT FOR A

QUALIFIED FACILITY PLACED IN

SERVICE AFTER DECEMBER 31,

2021

As required by section 45(b)(2), the 0.3

cent amount provided in section 45(a)(1)

is adjusted by multiplying such amount by

the inflation adjustment factor for the calendar year in which the sale occurs. If the

0.3 cent amount as adjusted for inflation

is not a multiple of 0.05 cent, the amount

is rounded to the nearest multiple of 0.05

cent. In the case of electricity produced

in open-loop biomass facilities, landfill

gas facilities, trash facilities, qualified

hydropower facilities, and marine and

hydrokinetic renewable energy facilities,

section 45(b)(4)(A) requires the amount

in effect under section 45(a)(1) for such

calendar year (determined before rounding as required by section 45(b)(2)) to be

reduced by one-half.

Under the calculation required by section 45(b)(2), the credit for renewable

electricity production for calendar year

2024 determined under section 45(a) is

0.6 cents per kilowatt hour on the sale of

electricity produced in any qualified facil-

October 7, 2024

ity placed in service after December 31,

2021, from the qualified energy resources

of wind, closed-loop biomass, geothermal

energy, and solar energy, and 0.3 cents

per kilowatt hour on the sale of electricity

produced in any qualified facility placed

in service after December 31, 2021, from

the qualified energy resources of openloop biomass, landfill gas and trash. The

credit for renewable electricity production for calendar year 2024 determined

under section 45(a) is also 0.3 cents per

kilowatt hour on the sale of electricity

produced in any qualified facility placed

in service after December 31, 2021, and

before January 1, 2023, from the qualified

energy resources of qualified hydropower

and marine and hydrokinetic renewable

energy.

CREDIT AMOUNT FOR QUALIFIED

HYDROPOWER FACILITIES AND

MARINE AND HYDROKINETIC

RENEWABLE ENERGY FACILITIES

PLACED IN SERVICE AFTER

DECEMBER 31, 2022

ified hydropower facilities and marine

and hydrokinetic renewable energy facilities placed in service after December 31,

2022. Accordingly, under the calculation

required by section 45(b)(2), the credit

for renewable electricity production for

calendar year 2024 determined under section 45(a) is 0.6 cents per kilowatt hour

on the sale of electricity produced in any

qualified facility placed in service after

December 31, 2022, from the qualified

energy resources of qualified hydropower

and marine and hydrokinetic renewable

energy.

DRAFTING AND CONTACT

INFORMATION

The principal author of this notice is

Charles Hyde of the Office of Associate

Chief Counsel (Passthroughs & Special Industries). For further information

regarding this notice contact Mr. Hyde at

(202) 317-6853 (not a toll-free number).

The one-half reduction under section

45(b)(4)(A) no longer applies to qual-

736

Bulletin No. 2024–41

NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and

W-3c.

26 CFR 601.602: Tax forms and instructions. (Also Part I, Sections 6041, 6051, 6071, 6081, 6091; 1.6041-1, 1.6041-2, 31.6051-1, 31.6051-2, 31.6071(a)-1, 31.6081(a)1, 31.6091-1.)

Rev. Proc. 2024-36

TABLE OF CONTENTS

Part 1 – SUBSTITUTE FORMS W-2C AND W-3C

Section 1.1 – Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738

Section 1.2 – What’s New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 740

Section 1.3 – Filing Forms W-2c and W-3c Electronically. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741

Section 1.4 – Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA. . . . . . . . . . . . . . . 741

Section 1.5 – Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA. . . . . . . 744

Section 1.6 – Requirements for Substitute Privately Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees. . . 747

Section 1.7 – Instructions for Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 748

Section 1.8 – OMB Requirements for Both Red-Ink and Black-and-White Substitute Forms W-2c and W-3c. . . . . . . . . . . . 749

Section 1.9 – Order Forms and Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

Section 1.10 – Effect on Other Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

Section 1.11 – Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

Bulletin No. 2024–41

737

October 7, 2024

Part 1

Substitute Forms W-2c and W-3c

Section 1.1 – Purpose

.01 The purpose of this revenue procedure is to state the requirements of the Internal Revenue

Service (IRS) and the Social Security Administration (SSA) regarding the preparation and use of

substitute forms for Form W-2c, Corrected Wage and Tax Statement, and Form W-3c, Transmittal

of Corrected Wage and Tax Statements.

.02 The official IRS Form W-2c is a six-part form and the official IRS Form W-3c is a one-part

form. Red-ink substitute forms that completely conform to the specifications contained in this

document may be privately printed without the prior approval of the IRS or the SSA. Only the

substitute black-and-white Form W-2c (Copy A) and substitute black-and-white Form W-3c need

to be submitted to the SSA for approval.

Note. Both paper substitute forms filed with the SSA, and those furnished to employees, that do

not totally conform to these specifications are not acceptable. Forms W-2c (Copy A) and Forms

W-3c that do not conform may be returned. In addition, penalties may be assessed by the IRS.

.03 Substitute red-ink forms should not be submitted to either the IRS or the SSA for specific

approval. If you are uncertain of any specification and want clarification, do the following.

Submit a letter to the appropriate address below citing the specification.

State your understanding of the specification; enclose an example.

Be sure to include your name, complete address, phone number, and, if applicable, your

email address with your correspondence.

.04 Any questions about the red-ink Form W-2c (Copy A) and Form W-3c should be emailed

to substituteforms@irs.gov. Please enter “Substitute Forms” on the subject line. Or send your

questions to:

Internal Revenue Service

Attn: Substitute Forms Program

C:DC:TS:CAR:MP:P:TP:TP

ATSC

4800 Buford Highway

Mail Stop 061-N

Chamblee, GA 30341

Note. Do not send completed forms to the Substitute Forms Program via email or mail as they are

unable to process those forms. Any examples/samples of substitute forms sent to the Substitute

Forms Program should not contain taxpayer information.

October 7, 2024

738

Bulletin No. 2024–41

Any questions about the substitute black-and-white Form W-2c (Copy A) and W-3c should be

emailed to copy.a.forms@ssa.gov or sent to:

Social Security Administration

Direct Operations Center

Attn: Substitute Black-and-White Copy A Forms, Room 341

1150 E. Mountain Drive

Wilkes-Barre, PA 18702-7997

Do not email or mail completed Forms W-2c (Copy A) to the SSA Substitute Black-and-White

Copy A Forms address as they are unable to process those forms. Submitters should use the

address shown on the Form W-3c.

Note. You should receive a response from either the IRS or the SSA within 30 days.

.05 Forms W-2c and envelopes containing Forms W-2c that include logos, slogans, and

advertisements (including advertisements for tax preparation software) may be considered as

suspicious or altered Forms W-2c (also known as questionable Forms W-2c). An employee may

not recognize the importance of the employee copy for tax reporting purposes due to the use

of logos, slogans, and advertisements. Thus, the IRS has determined that logos, slogans, and

advertising will not be allowed on Copy A of Forms W-2c, Forms W-3c, or any employee copies

reporting wages, or on an envelope or enclosed in an envelope containing any of those documents,

with the following exceptions:

•

Forms and envelopes may include the exact name of the employer or agent, primary trade

name, trademark, service mark, or symbol of the employer or agent.

•

Forms and envelopes may include an embossment or watermark on the information return

(and copies) that is a representation of the name, a primary trade name, trademark, service

mark, or symbol of the employer or agent.

•

Presentation may be in any typeface, font, stylized fashion, or print color normally used by

the employer or agent; and used in a non-intrusive manner.

•

These items do not materially interfere with the ability of the recipient to recognize, understand, and use the tax information on the employee copies.

The IRS e-file logo on the IRS official employee copies may be included, but it is not required, on

any of the substitute form copies.

The information return and employee copies must clearly identify the employer’s name associated

with its employer identification number (EIN).

Forms W-2c and W-3c are subject to annual review and possible change. This revenue procedure

may be revised to state other requirements of the IRS and the SSA regarding the preparation and

use of substitute forms for Form W-2c and Form W-3c for corrections to be made at a future date.

If you have comments about the prohibition against including slogans, advertising, and logos on

information returns and employee copies, email or send your comments to: substituteforms@irs.

gov or Internal Revenue Service, Attn: Substitute Forms Program, C:DC:TS:CAR:MP:P:TP:TP,

ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA 30341.

Bulletin No. 2024–41

739

October 7, 2024

.06 The Internal Revenue Service/Technical Service Operation (IRS/TSO) maintains a centralized

customer service call site to answer questions related to information returns (Forms W-2, W-3,

W-2c, W-3c, 1099 series, 1096, etc.). You can reach the call site at 866-455-7438 (toll free) or

304-263-8700 (not a toll-free number). Deaf or hard-of-hearing customers may call any of our

toll-free numbers using their choice of relay service. Questions regarding the filing of information

returns can be emailed to fire@irs.gov. When you send emails concerning specific file information,

include the company name and the electronic file name or Transmitter Control Code (TCC). Do

not include tax identification numbers (TINs) or attachments in email correspondence because

electronic mail is not secure.

File paper or electronic Forms W-2c (Copy A) with the SSA. The IRS/TSO does not process

Forms W-2c (Copy A).

.07 The following form instructions and publications provide more detailed filing procedures for

certain information returns.

•

General Instructions for Forms W-2 and W-3 (Including Forms W-2AS, W-2CM, W-2GU,

W-2VI, W-3SS, W-2c, and W-3c).

•

Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

Section 1.2 – What’s New

.01 OMB Number. The June 2024 revisions of Forms W-2c and W-3c have a new OMB Number:

1545-0029. This number is the same as that for the 2025 and later Forms W-2 (including territorial

Forms W-2), W-3, W-3SS, and various revisions of other employment tax forms.

.02 Changes to IRS customer service information. The Internal Revenue Service/Information

Returns Branch (IRS/IRB) is now known as the Internal Revenue Service/Technical Service

Operation (IRS/TSO). The phone numbers for the call site have not changed. However, the

address for email inquiries has changed to ire@irs.gov. See Section 1.1.06 above for more

information.

.03 IRS address change. Inquiries about the red-ink Form W-2c (Copy A) and Form W-3c

should be sent to the IRS at: Internal Revenue Service, Attn: Substitute Forms Program,

C:DC:TS:CAR:MP:P:TP:TP, ATSC, 4800 Buford Highway, Mail Stop 061-N, Chamblee, GA

30341.

.04 Identifying number 44444. We clarified Section 1.6.05 to add that the identifying number

“44444” and “For Official Use Only” text are not required to be included on employee copies of

substitute Forms W-2c.

.05 Exhibits. All of the exhibits in this publication were updated for the June 2024 revisions of

those forms.

.06 Editorial changes. We made editorial changes throughout, including to update references.

Redundancies were eliminated as much as possible.

October 7, 2024

740

Bulletin No. 2024–41

Section 1.3 – Filing Forms W-2c and W-3c Electronically

.01 If an employer was required to electronically file the original Form W-2, they must

electronically file any Form W-2c correcting that form. If the original Form W-2 was permitted to

be filed on paper and was filed on paper, then the employer must file any Form W-2c correcting

that form on paper. See Regulations section 301.6011-2(c)(4)(ii) for more information. SSA

publication EFW2C, Specifications for Filing Forms W-2c Electronically, contains specifications

and procedures for filing Forms W-2c. Employers are cautioned to obtain the most recent revision

of EFW2C (and supplements) due to any subsequent changes in specifications and procedures.

Instead of the EFW2C upload format, the employer can use SSA’s online fill-in forms to create,

save, print, and submit up to 25 Forms W-2c at a time to the SSA. For more information, go to

SSA.gov/employer/.

.02 You may obtain a copy of the EFW2C by accessing the SSA website at SSA.gov/employer/

EFW2&EFW2C.

.03 Electronic filers do not file a paper Form W-3c. See the SSA publication EFW2C for guidance

on transmitting Form W-2c (Copy A) information to the SSA electronically.

.04 Employers who do not comply with the electronic filing requirements for Form W-2c (Copy

A) and who are not granted a waiver by the IRS may be subject to penalties. Employers who file

Form W-2c information with the SSA electronically must not send the same data to the SSA on

paper Forms W-2c (Copy A). Any duplicate reporting may subject filers to unnecessary contacts

by the SSA or the IRS.

Section 1.4 – Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA

.01 The official IRS-printed red dropout ink Form W-2c (Copy A) and W-3c and their exact

substitutes are referred to as red-ink in this revenue procedure. Employers may file substitute

Forms W-2c (Copy A) and W-3c with the SSA. The substitute forms must be exact replicas of

the official IRS forms with respect to layout and content because they will be read by scanner

equipment. Even the slightest deviation can result in incorrect scanning, and may affect money

amounts reported for employees.

.02 Color and paper quality for Form W-2c (Copy A) (cut sheets and continuous pin-fed forms) and

Form W-3c must be white 100% bleached chemical wood, optical character recognition (OCR)

bond. The contractor must initiate or have a quality control program to assure OCR ink density.

•

Acidity: Ph value, average, not less than . . . . . . . . . . . . . . . . . . . . . . . .

4.5

•

Basis weight: 17 x 22 inch 500 cut sheets, pound . . . . . . . . . . . . . . . . .

18–20

•

Metric equivalent—gm./sq. meter

(a tolerance of +5 pct. is allowed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

Bulletin No. 2024–41

68–75

Stiffness: Average, each direction, not less than—milligrams

Cross direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Machine direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

741

October 7, 2024

•

Tearing strength: Average, each direction, not less

than—grams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

Opacity: Average, not less than—percent . . . . . . . . . . . . . . . . . . . . .

•

Reflectivity: Average, not less than—percent . . . . . . . . . . . . . . . . . .

•

Thickness: Average—inch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.0038

Metric equivalent—mm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.097

•

(a tolerance of +0.0005 inch (0.0127 mm) is allowed). Paper cannot

vary more than 0.0004 inch (0.0102 mm) from one edge to the other.

Porosity: Average, not less than—seconds . . . . . . . . . . . . . . . . . . . .

•

Finish (smoothness): Average, each side—seconds . . . . . . . . . . . . . . .

20–55

(for information only) the Sheffield equivalent—units . . . . . . . . . . . . .

170-d200

Dirt: Average, each side, not to exceed—parts per million . . . . . . . . . ..

•

Note. Reclaimed fiber in any percentage is permitted, provided the requirements of this standard

are met.

.03 All printing of substitute Forms W-2c (Copy A) and W-3c must be in Flint J-6983 red OCR

dropout ink except as specified below. The following must be printed in nonreflective black ink:

•

Identifying number “44444” for Forms W-2c (Copy A) or “55555” for Form W-3c at the top

of the forms.

•

The four (4) corner register marks on the forms.

•

The form identification number (“W-3c”) at the bottom of Form W-3c.

•

All the instructions below Form W-3c beginning with “Purpose of Form” to the end of Form

W-3c.

.04 The vertical and horizontal spacing on Forms W-2c and W-3c must meet specifications. See

Exhibits A and B.

•

On Form W-3c and Form W-2c (Copy A), all the perimeter rules must be 1-point (0.014inch), while all other rules must be one-half point (0.007-inch). Vertical rules must be parallel to the left edge of the form; horizontal rules parallel to the top edge.

•

The top, left, and right margins on Form W-2c (Copy A) and Form W-3c must be 0.50

inches. The width of a substitute Form W-2c (Copy A) or W-3c must be 7.50 inches. See

Exhibits A and B.

•

The first three columns on Form W-2c (Copy A) and Form W-3c must measure 1.90 inches

in width.

•

The last column on Form W-2c (Copy A) and Form W-3c must measure 1.80 inches in

width.

.05 The official red-ink Form W-3c and Form W-2c (Copy A) are 7.50 inches wide. Employers

filing Forms W-2c (Copy A) with the SSA on paper must also file a Form W-3c. One Form W-2c

(Copy A) or Form W-3c is contained on a standard-size, 8.5 x 11-inch page.

.06 The top, left, and right margins for the Form W-2c (Copy A) and Form W-3c are 0.50 inches

(1/2 inch). All margins must be free of printing except for the words “DO NOT CUT, FOLD,

October 7, 2024

742

Bulletin No. 2024–41

OR STAPLE THIS FORM” on red-ink Form W-2c (Copy A) and “DO NOT CUT, FOLD, OR

STAPLE” on red-ink Form W-3c.

.07 The identifying numbers are “44444” for Form W-2c and “55555” for Form W-3c. No printing

should appear anywhere near the identifying numbers.

Note. The identifying number must be printed in nonreflective black ink in OCR-A font of 10

characters per inch.

.08 Continuous pin-fed Forms W-2c (Copy A) must be separated into 11-inch deep pages. The pinfed strips must be removed when Forms W-2c (Copy A) are filed with the SSA.

.09 Box 12 of Form W-2c (Copy A) contains four entry boxes – 12a, 12b, 12c, and 12d. Do not

make more than one entry per box. Enter your first code in box 12a (for example, enter Code

D in box 12a, not 12d, if it is your first entry). If more than four items need to be reported in

box 12, use a second Form W-2c to report the additional items (see Multiple forms in the most

recent General Instructions for Forms W-2 and W-3). Do not report the same federal tax data to

the SSA on more than one Form W-2c (Copy A). However, repeat the identifying information

(employee’s name, address, and SSN; employer’s name, address, and EIN) on each additional

form.

.10 The checkboxes in box 13 of Form W-2c (Copy A) must be 0.14 inches each. Each space before

the first checkbox is 0.20 inches; each space between the first checkbox and second checkbox

should be 0.36 inches; each space between the second and third checkboxes should be 0.44 inches;

and each space between the third checkbox to the margin of box 13 should be 0.48 inches. The

checkboxes in box c of Form W-3c must also be 0.14 inches.

Note. More than 50% of an applicable checkbox must be covered by an “X.”

.11 All substitute Forms W-2c (Copy A) and W-3c in the red-ink format must have the form

number and form title printed on the bottom face of each form using type identical or a close

approximation to that of the official IRS form. The red-ink substitute must have the form producer’s

(not the form filer’s) EIN entered in red in place of the Cat. No. (directly to the left of “Department

of the Treasury” on Form W-2c (Copy A) and at the bottom on Form W-3c).

.12 The words “For Privacy Act and Paperwork Reduction Act Notice, see the separate

instructions.” must be printed on all Forms W-2c (Copy A) and Forms W-3c.

.13 The Office of Management and Budget (OMB) Number must be printed on substitute Forms

W-3c and W-2c (Copy A) (on each ply) in the same location as on the official IRS forms.

.14 All substitute Forms W-3c must include the instructions that are printed on the same sheet

below the official IRS form.

.15 The appropriate SSA filing address information must be printed on the front of Form W-3c

below the body of the form as shown below.

Bulletin No. 2024–41

743

October 7, 2024

If you use the U.S. Postal Service, send this entire page with Copy A of Form W-2c to:

Social Security Administration

Direct Operations Center

P.O. Box 3333

Wilkes-Barre, PA 18767-3333

Note: If you use an IRS-approved private delivery service to file, replace “P.O. Box 3333”

with “Attn: W-2c Process, 1150 E. Mountain Dr.” in the address and change the ZIP code to

“18702-7997.” Go to www.IRS.gov/PDS for a list of IRS-approved private delivery services.

.16 The back of substitute Form W-2c (Copy A) and Form W-3c must be free of all printing.

.17 All copies must be clearly legible. Fading must be minimized to assure legibility.

.18 Chemical transfer paper is permitted for Form W-2c (Copy A) only if the following standards

are met:

•

Only chemically backed paper is acceptable for Form W-2c (Copy A). Front and back chemically treated paper cannot be processed properly by scanning equipment.

•

Chemically transferred images must be black.

•

Carbon-coated forms are not permitted.

.19 The Government Printing Office (GPO) symbol and the Catalog Number (Cat. No.) must be

deleted from substitute Form W-2c (Copy A) and Form W-3c.

.20 The sequence for assembling the copies of Form W-2c is as follows.

•

Copy A—For Social Security Administration

•

Copy 1—For State, City, or Local Tax Department

•

Copy B—To Be Filed With Employee’s FEDERAL Tax Return

•

Copy C—For EMPLOYEE’S RECORDS

•

Copy 2—To Be Filed With Employee’s State, City, or Local Income Tax Return

•

Copy D—For Employer

Section 1.5 – Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA

.01 The SSA-approved substitute black-and-white Forms W-2c (Copy A) and W-3c are referred

to as substitute black-and-white Form W-2c (Copy A) and W-3c. Specifications for the substitute

black-and-white Form W-2c (Copy A) and W-3c are similar to the red-ink forms (Section 1.4)

except for the items that follow (see Exhibits C and D). You may contact the SSA via email at

copy.a.forms@ssa.gov for more information.

October 7, 2024

744

Bulletin No. 2024–41

Note. Exhibits are samples only and may not show the required typeface and/or font. Exhibits

must not be downloaded to meet tax obligations.

Forms must be printed on 8.5 x 11-inch single-sheet paper only, not on continuous pin-fed

paper. There must be one Form W-2c (Copy A) or W-3c printed on a page.

All forms and data must be printed in nonreflective black ink only.

The data and forms must be programmed to print simultaneously. Forms cannot be produced

separately from wage data entries.

The forms must not contain corner register marks.

The forms must not contain any shaded areas including those boxes that are entirely shaded

on the red-ink forms.

Identifying numbers on both Form W-2c (“44444”) and Form W-3c (“55555”) must be preprinted in 14-point Arial bold font or a close approximation.

The form numbers (“W-2c” and “W-3c”) must be in 18-point Arial font or a close approximation.

No part of the box titles or the data printed on the forms may touch any of the vertical or

horizontal lines, nor should any of the data intermingle with the box titles. The data should

be centered in the boxes.

Do not print any information in the margins of the black-and-white forms (for example, do

not print “DO NOT CUT, FOLD, OR STAPLE” in the top margin of Form W-3c).

10. The word “Code” must not appear in box 12 on Form W-2c (Copy A).

11. A 4-digit vendor code (not filer code) preceded by four zeros and a slash (for example,

0000/9876) must appear in 12-point Arial font, or a close approximation, in place of the Cat.

No. to the left of “Department of the Treasury” on Form W-2c (Copy A) and in the bottom

right corner of Form W-3c.

Note. Do not display the form producer’s EIN. The vendor code will be used to identify the

form producer.

12. Do not print Catalog Numbers (Cat. No.) on either Form W-2c (Copy A) or Form W-3c.

13. Do not print dollar signs. If there are no money amounts being reported, the entire field

should be left blank.

Note. Although substitute Copy 1 of Form W-2c can be printed in black instead of the red dropout

ink, it should conform as closely as possible to Copy A of the official IRS form in content, format,

and layout in order to satisfy state and local reporting requirements.

.02 The dimensions for the substitute black-and-white Forms W-2c (Copy A) and W-3c are as

follows. See Exhibits C and D.

Bulletin No. 2024–41

The top, left, and right margins on Form W-2c (Copy A) and Form W-3c must measure 1/2

(0.50) inch.

The distance from the top line of Form W-3c to the bottom line of the form must measure 7

and 3/16 (7.19) inches.

745

October 7, 2024

The distance from the top line of Form W-2c (Copy A) to the bottom line of the form must

measure 9 and 1/3 (9.33) inches.

Each box on Form W-2c (Copy A) and Form W-3c must measure 1/3 (0.33) inch in height

except as otherwise established.

Box b on Form W-3c must measure one (1.00) inch in height.

Box a on Form W-2c (Copy A) must measure 1 and 1/3 (1.33) inches in height and box 14

must measure 5/6 (0.83) inch in height.

The first three columns on the right of Form W-2c (Copy A) and Form W-3c must measure 1

and 9/10 (1.90) inches in width.

The last column on the right of Form W-2c (Copy A) and Form W-3c must measure 1 and

8/10 (1.80) inches in width.

The “Explain decreases here” box must measure 1/3 (0.33) inch and the “Signature” box on

Form W-3c must measure 1/2 (0.50) inch in height.

.03 You must submit samples of your black-and-white substitute Forms W-2c (Copy A) and W-3c

to the SSA. Only black-and-white substitute Forms W-2c (Copy A) and W-3c will be accepted for

approval by the SSA. All checkboxes on the dummy-data substitute black-and-white Form W-3c

must be electronically checked in box c (Kind of Payer, Kind of Employer, and Third-party sick

pay). Questions regarding other forms (that is, red-ink Forms W-2, W-2c, W-3, W-3c, 1099 series,

1096, etc.) must be directed to the IRS. Also, see IRS Publications 1141 and 1179.

.04 You will be required to send one set of blank and one set of dummy-data substitute blackand-white Form W-2c (Copy A) and W-3c for approval. Sample data entries should be filled in to

the maximum length for each box entry, preferably using numeric data or alpha data, depending

upon the type required to be entered. Include in your submission the name, telephone number, fax

number, and email address of a contact person who can answer questions regarding your sample

forms.

.05 To receive approval, you may first contact the SSA at copy.a.forms@ssa.gov to obtain a

template and further instructions. You can either submit your sample substitute black-andwhite Forms W-2c (Copy A) and Forms W-3c in a PDF version electronically for approval to

the copy.a.forms@ssa.gov mailbox or send your paper sample substitute black-and-white Forms

W-2c (Copy A) and Forms W-3c to:

Social Security Administration

Direct Operations Center

Attn: Substitute Black-and-White Copy A Forms, Room 341

1150 E. Mountain Drive

Wilkes-Barre, PA 18702-7997

Send your sample forms via private mail carrier or certified mail in order to verify their receipt.

You can expect approval (or disapproval) by the SSA within 30 days of receipt of your sample

forms.

Do not mail completed Forms W-2c (Copy A) and W-3c to the Substitute Black-and-White Forms

(Copy A) address. Submitters should use the address shown on the Form W-3c.

October 7, 2024

746

Bulletin No. 2024–41

.06 Vendor codes from the National Association of Computerized Tax Processors (NACTP)

are required by those companies producing the W-2 family of forms as part of a product for

resale to be used by multiple employers and payroll professionals. Employers developing

Forms W-2c or W-3c to be used only for their individual company require a vendor code

issued by the SSA.

.07 The 4-digit vendor code preceded by four zeros and a slash (0000/9876) must be preprinted

on the sample black-and-white substitute Forms W-2c and W-3c. Forms not containing a vendor

code will be rejected and will not be submitted for testing or approval. If you have a valid vendor

code provided to you through the NACTP, you should use that code. If you do not have a valid

vendor code, contact the SSA at copy.a.forms@ssa.gov to obtain an SSA-issued code. (Additional

information on vendor codes may be obtained from the SSA or the NACTP via email at president@

nactp.org.)

.08 If you use forms produced by a vendor and have questions concerning approval, do not

send the forms to the SSA for approval. Instead, you may contact the software vendor to obtain a

copy of SSA’s dated approval notice supplied to that vendor.

Section 1.6 – Requirements for Substitute Privately Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees

Note. Rules in Section 1.6 apply only to employee copies of Form W-2c (Copies B, C, and 2).

Printers are cautioned that the paper filers who send Forms W-2c (Copy A) to the SSA must follow

the requirements in Sections 1.4 and/or 1.5 above.

.01 All employers (including those who file electronically) must furnish employees with at least

two copies of Form W-2c (three or more for employees required to file a state, city, or local income

tax return). Employee copies do not require approval as long as these requirements are followed.

.02 Chemical transfer paper for employee copies must be clearly legible, have the capability to be

photocopied, and not fade to such a degree as to preclude legibility and the ability to photocopy.

.03 The paper for all copies must be white and printed in black ink. The substitute Copy B (or its

equal), which employees are instructed to attach to their federal income tax returns, as well as all

other copies furnished to employees, should be at least 9-pound paper (basis 17 x 22-500). See

Section 1.4.02.

.04 Type must be substantially identical in size and shape to that on the official form.

.05 Substitute forms for employees need to contain only the payment boxes and captions that

are applicable. These boxes, box numbers, and box titles must, when applicable, match the IRSprinted form. In all cases, the employee name, address, and SSN, as well as the employer name,

address, and EIN, must be present. The identifying number “44444” and “For Official Use Only”

text on the IRS-printed Form W-2c employee copies (Copies B, C, and 2) are not required to be

included on employee copies of substitute Forms W-2c.

.06 The dimensions of the boxes on these copies (Copies B, C, and 2), but not Copy A, may be

adjusted to allow space for conveying additional information. This may permit the employer to

eliminate other statements or notices that would otherwise be furnished to employees.

Bulletin No. 2024–41

747

October 7, 2024

.07 The maximum allowable dimensions for employee copies of Form W-2c are no more than

11.00 inches deep by 8.50 inches wide. The minimum allowable dimensions for employee copies

of Form W-2c are 2.67 inches deep by 4.25 inches wide.

Note. These maximum and minimum size specifications are subject to future change.

.08 Either horizontal or vertical format is permitted for substitute employee copies of Forms W-2c.

That is, the width of the form may be either greater or less than the depth of the form.

.09 All copies of Form W-2c must clearly and prominently display the form number and the form

title together in one area of the form. It is recommended (but not required) that this be located

on the bottom left of Form W-2c. The reference to the “Department of the Treasury – Internal

Revenue Service” must be on all copies of Form W-2c. It is recommended (but not required) that

this be located on the bottom right of Form W-2c.

.10 If the substitute Forms W-2c are not labeled as to the disposition of the copies, then written

notification must be provided to each employee as specified below.

•

The first copy of Form W-2c (Copy B) is filed with the employee’s federal tax return.

•

The second copy of Form W-2c (Copy C) is for the employee’s records.

•

If applicable, the third copy (Copy 2) of Form W-2c is filed with the employee’s state, city,

or local income tax return.

If the substitute Forms W-2c are labeled, the forms must contain the applicable description as

stated on the official form.

.11 Instructions similar to those on the back of Form W-2c (Copy C) of the official form must be

provided to each employee.

Section 1.7 – Instructions for Employers

.01 Privately printed substitute Forms W-2c are not required to contain a copy to be retained by

employers (Copy D). However, employers must retain copies of the Forms W-2c (Copy A) filed

with the SSA or have the ability to reconstruct the data for at least 4 years. Employers must be able

to generate a facsimile of Form W-2c (Copy A), in case of loss.

.02 If Copy D is provided for the employer, instructions contained on the back of Copy D of the

official form must appear on the back of the substitute form. If Copy D is not provided, these

instructions must be furnished to the employer on a separate statement.

.03 Only originals or compliant substitute copies of Forms W-2c (Copy A) and Forms W-3c may

be filed with the SSA. Carbon copies and photocopies are unacceptable.

.04 Employers should type or machine-print entries on plain paper forms whenever possible and

provide good quality data entries by using a high quality type face, inserting data in the middle of

blocks that are well separated from other printing and guidelines, and taking any other measures

that will guarantee clear, sharp images.

October 7, 2024

748

Bulletin No. 2024–41

.05 Because employers must file a machine-scannable Form W-2c, they should meet the following

requirements.

•

Use 12-point Courier font or a close approximation for data entries.

•

Proportional-spaced fonts are unacceptable.

•

Do not print any data in the top margin of the forms.

.06 The employer must also provide employee copies of Forms W-2c (Copies B, C, and 2) that are

legible and able to be photocopied (by the employee).

.07 When Forms W-2c or W-3c are typed, black ink must be used with no script type, inverted font,

italics, or dual-case alpha characters.

.08 Forms W-2c (Copy A) require decimal entries for wage data. Do not print dollar signs with

money amounts on Forms W-2c (Copy A) and Form W-3c.

.09 The filer’s employer identification number (EIN) must be entered in box (b) of Form W-2c and

box (e) of Form W-3c.

.10 The employer’s name, address, EIN, and state ID number may be preprinted.

.11 Employers must not truncate the employee’s SSN on Copy A of Forms W-2c. See the General

Instructions for Forms W-2 and W-3 for more information.

Section 1.8 – OMB Requirements for Both Red-Ink and Black-and-White Substitute Forms W-2c and W-3c

.01 The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires the following.

•

The Office of Management and Budget (OMB) approves all IRS tax forms that are subject

to the Act.

•

Each IRS form contains (in or near the upper right corner) the OMB approval number, if

assigned—the official OMB numbers may be found on the official IRS printed forms and are

also shown on the forms in the exhibits.

•

Each IRS form (or its instructions) states:

Why the IRS needs the information,

How it will be used, and

Whether or not the information is required to be furnished to the IRS.

.02 This information must be provided to any users of official or substitute IRS forms or instructions.

.03 The OMB requirements for substitute IRS Form W-2c and Form W-3c are the following.

•

Bulletin No. 2024–41

Any substitute form or substitute statement to a recipient must show the OMB number as it

appears on the official IRS form.

749

October 7, 2024

•

The OMB number for both Form W-2c (Copy A) and Form W-3c is 1545-0029 and must

appear exactly as shown on the official IRS form.

•

For any copy of Form W-2c, other than Copy A, the OMB number must use one of the following formats.

OMB No. 1545-xxxx (preferred) or

OMB # 1545-xxxx (acceptable).

.04 Any substitute Form W-3c and Form W-2c (Copy A only) must state “For Privacy Act and

Paperwork Reduction Act Notice, see the separate instructions.” If no instructions are provided to

users of your forms, you must furnish them with the exact text of the Privacy Act and Paperwork

Reduction Act Notice in the General Instructions for Forms W-2 and W-3.

Section 1.9 – Order Forms and Instructions

.01 You can order official IRS Forms W-2c, Forms W-3c, and the General Instructions for Forms

W-2 and W-3 (Including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c)

online at IRS.gov/OrderForms.

Only contact the IRS, not the SSA, for forms.

.02 Copies of Form W-2c (Copy A) and Form W-3c downloaded from IRS.gov cannot be used for

filing with the SSA. These copies of Forms W-2c and W-3c are for information purposes only.

Section 1.10 – Effect on Other Documents

.01 Revenue Procedure 2023-39, 2023-52 I.R.B. dated December 26, 2023 (reprinted as Publication

1223, Revised 12-2023), is superseded.

Section 1.11 – Exhibits

Exhibits A through D provide the general measurements for Forms W-2c and W-3c as discussed

in this revenue procedure. Exhibits are samples only and may not show the required typeface and/

or font. Exhibits must not be downloaded to meet tax obligations. Certain exhibits show a 0000/

in the location designated for your vendor code. See Section 1.5.01, item 11, and Section 1.5.06

for more information.

Exhibit A — Form W-2c (Copy A) (Red-Ink) 06-2024

Exhibit B — Form W-3c (Red-Ink) 06-2024

Exhibit C — Form W-2c (Copy A) (Substitute Laser/ Black-and-White) 06-2024

Exhibit D — Form W-3c (Substitute Laser/Black-and-White) 06-2024

October 7, 2024

750

Bulletin No. 2024–41

751

October 7, 2024

752

Bulletin No. 2024–41

753

October 7, 2024

754

Bulletin No. 2024–41

26 CFR 601.601: Rules and regulations.

(Also Part 1, §§103, 148; 1.148-3, 1.148-5, 1.148-7,

1.148-10, 1.148-11, 1.148-13T.)

Rev. Proc. 2024-37

SECTION 1. PURPOSE

This revenue procedure provides guidance to issuers of tax-exempt and other

tax-advantaged bonds (as defined in

§ 1.150-1(b) of the Income Tax Regulations1) regarding the procedures for filing

claims for recovery of overpayments (as

defined in § 1.148-3(i)(1)) of amounts

paid to the United States with respect to

the rebate requirement under § 148(f) for

excess investment earnings, the penalty in

lieu of rebate provisions under § 148(f)(4)

(C)(vii) and (viii), or the yield reduction

payment provisions under § 1.148-5(c).

This revenue procedure modifies and

supersedes Rev. Proc. 2008-37, 2008-2

(Vol.1) C.B. 137, as modified by Rev.

Proc. 2017-50, 2017-37 I.R.B. 234, and

supersedes Rev. Proc. 2017-50.

SECTION 2. BACKGROUND

.01 Under § 103(b)(2), the exclusion

from gross income of interest on any

State or local bond under § 103(a) does

not apply to interest on an arbitrage bond

within the meaning of § 148.

.02 The requirements of § 148 apply to

tax-exempt bonds and, generally, to other

tax-advantaged bonds.

.03 Section 148(f)(1) generally provides that a bond that is part of an issue

is treated as an arbitrage bond, unless the

issuer pays to the United States any rebate

amounts described in § 148(f)(2) (rebate)

for the issue in accordance with § 148(f)

(3).

.04 Section 148(f)(3) provides, in part,

that, except to the extent provided by the

Secretary of the Treasury or her delegate,

rebate must be paid in installments that are

made at least once every five years. The

last installment must be made no later than

60 days after the date on which the last

bond of the issue is redeemed.

.05 Section 148(f)(4)(C)(vii) and (viii)

permit issuers of construction issues (as

defined in § 148(f)(4)(C)(iv)) to elect to

pay a penalty in lieu of rebate in the manner and amount described in § 148(f)(4)

(C)(vii) and (viii).

.06 Section 1.148-5(c)(1) permits issuers to pay yield reduction payments to

the United States that may be taken into

account in determining the yield on an

investment for purposes of § 148 in the

circumstances and manner described in

§ 1.148-5(c).

.07 Section 1.148-3(i)(1) provides that,

in general, an issuer may recover an overpayment of rebate by establishing to the

satisfaction of the Commissioner of Internal Revenue or his delegate (Commissioner) that the overpayment occurred. An

overpayment is the excess of the amount

paid to the United States for an issue over

the sum of the “rebate amount” (as defined

in §§ 1.148-1(b) and 1.148-3(b)) as of

the most recent “computation date” (as

defined in § 1.148-3(e)) and all amounts

that are otherwise required to be paid

under § 148 as of the date the recovery is

requested. Under § 1.148-3(e)(2), the final

computation date generally is the date that

an issue is discharged.

.08 In general, overpayments of the

penalty in lieu of rebate and yield reduction payments are treated in the same

manner as overpayments of rebate. See

generally, §§ 1.148-3(i)(1), 1.148-3(i)(2)

(ii), 1.148-5(c)(1) and (2), and 1.148-7(k)

(3) and (m).

.09 Section 1.148-3(i)(3)(i) provides

that an issuer must request a refund of

an overpayment (claim) no later than the

date that is two years after the final computation date for the issue to which the

overpayment relates (filing deadline). The

claim must be made using the form provided by the Commissioner for this purpose.

.10 Section 1.148-3(i)(3)(ii) provides

that the Commissioner may request additional information to support a claim. The

issuer must file the additional information

by the date specified in the Commissioner’s request, which date may be extended

by the Commissioner if unusual circumstances warrant. An issuer will be given

at least 21 calendar days to respond to a

request for additional information.

.11 Section 1.148-3(i)(3)(iii) provides

that a claim described in either § 1.148-3(i)

(3)(iii)(A) or (B) that has been denied by

the Commissioner may be appealed to the

Independent Office of Appeals (Appeals).

A claim is described in § 1.148-3(i)(3)(iii)

(A) if the Commissioner asserts that the

claim was filed after the filing deadline. A

claim is described in § 1.148-3(i)(3)(iii)

(B) if the Commissioner asserts that additional information to support the claim

was not submitted within the time specified in the request for information or in any

extension of such specified time period.

The procedures for an issuer of tax-advantaged bonds to request an administrative

appeal to Appeals are provided in Rev.

Proc. 2021-10, 2021-4 I.R.B. 503. When

an appeal of a claim described in either

§ 1.148-3(i)(3)(iii)(A) or (B) is determined in favor of the issuer, Appeals must

return the case to the office that is responsible for examinations of tax-advantaged

bonds (presently the Office of Tax Exempt

Bonds) for further consideration of the

substance of the claim.

.12 Section 1.148-11(k)(3)(i) provides

that § 1.148-3(i)(3)(i) applies to claims

for recovery of overpayments arising

from an issue of bonds to which § 1.1483(i) applies and for which the final computation date is after June 24, 2008. For

purposes of § 1.148-3(k)(3)(i), issues for

which the actual final computation date is

on or before June 24, 2008, are deemed

to have a final computation date of July

1, 2008, for purposes of applying § 1.1483(i)(3)(i).

.13 Section 1.148-11(k)(3)(ii) provides

that § 1.148-3(i)(3)(ii) and (iii) apply to

claims arising from an issue of bonds to

which § 1.148-3(i) applies and for which

the final computation date is after September 16, 2013.

.14 Section 1.148-13T of the Temporary Income Tax Regulations (1992

regulations), which was published in the

Federal Register on May 18, 1992 (T.D.

8418, 1992-1 C.B. 29 [57 F.R. 20971]),

provides rules for recovering an overpayment of rebate or penalty in lieu of rebate

with respect to certain bonds issued before

July 1, 1993. Under § 1.148-13T(a) and

(c)(1) of the 1992 regulations, an issuer

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

Bulletin No. 2024–41

755

October 7, 2024

may recover an overpayment of rebate or

penalty in lieu of rebate to the extent that

recovery on the date requested would not

result in an additional rebate amount as of

the date requested if the issuer proves to

the satisfaction of the Commissioner that

the overpayment occurred and was paid

because of a mistake.

.15 Rev. Proc. 2008-37 sets forth procedures for filing claims for the refund of

overpayments of rebate, penalty in lieu of

rebate, or yield reduction payments. Rev.

Proc. 2008-37 imposes the same deadline

for filing such claims as the filing deadline

in § 1.148-3(i)(3)(i). Section 1.148-10(g)

provides authority to the Commissioner to

waive regulatory limitations under certain

circumstances. Specifically, § 1.148-10(g)

provides that, notwithstanding any specific

provision in §§ 1.148-1 through 1.148-11,

the Commissioner may prescribe extensions of temporary periods, larger reasonably required reserve or replacement

funds, or consequences of failures or

remedial action under § 148 in lieu of or

in addition to other consequences of those

failures, or take other action, if the Commissioner finds that good faith or other

similar circumstances so warrant, consistent with the purposes of § 148. In the

interest of sound tax administration and in

reliance on the authority provided under

§ 1.148-10(g), Rev. Proc. 2017-50 extends

the time for filing claims to recover overpayments under § 148 to ensure that

issuers have a reasonable opportunity to

recover overpayments made both before

and after the final computation date. Rev.

Proc. 2017-50 adds 60 days to the existing

two-year deadline under § 1.148-3(i)(3)

(i) and provides a new two-year deadline

with respect to the payments made after

the date that is 60 days after the final computation date.

SECTION 3. SCOPE

This revenue procedure applies to

claims submitted pursuant to § 1.148-3(i)

of any overpayment of an amount paid by

an issuer of tax-exempt and other tax-advantaged bonds to the United States to

meet the requirements of § 148, including

a payment of rebate, a payment of a penalty in lieu of rebate, and a yield reduction payment. Claims that are made under

the 1992 regulations will be treated in

October 7, 2024

the same manner as claims made under

§ 1.148-3(i).

SECTION 4. PROCEDURE FOR

CLAIMS FOR RECOVERY OF

OVERPAYMENT OF REBATE,

PENALTY IN LIEU OF REBATE,

AND YIELD REDUCTION

PAYMENTS

.01 Form 8038-R, Request for Recovery

of Overpayments Under Arbitrage Rebate

Provisions. A claim must be made by

completing and timely filing Form 8038R, Request for Recovery of Overpayments

Under Arbitrage Rebate Provisions, and

any attachments thereto with the Internal

Revenue Service in accordance with the

Form 8038-R instructions (or the then-applicable form and instructions as may be

announced by the Internal Revenue Service from time to time).

.02 Timely filing of a claim. An issuer

must file a claim for refund of an overpayment with respect to an issue of bonds no

later than two years after:

(1) the date that is 60 days after the final

computation date of the issue to which the

payment relates; or

(2) with respect to the portion of the

overpayment paid more than 60 days

after the final computation date, the date

that the payment was made to the United

States.

.03 Processing claims. The Commissioner may allow a claim, reject a claim

under circumstances described in section

4.03(1) of this revenue procedure (Claim

Rejection), or deny a claim in full or in

part as described in section 4.03(2) of this

revenue procedure (Claim Denial).

(1) Claim Rejection. The Commissioner may reject a claim based on an

issuer’s (i) failure to follow procedures or

requirements for filing or supporting the

claim, or (ii) submission of a claim that

relies on substantive matters that were

previously reviewed and resulted in a

Claim Denial (without regard to whether

the Claim Denial has become final or

not), or a closing agreement. If a claim is

rejected, the Commissioner will notify the

issuer by letter explaining the reasons for

the rejection.

(a) Failure to meet the requirements

for processing a claim. If the issuer fails

to follow procedures or requirements for

756

filing or supporting a claim (as described

in section 4.03(1)(i) of this revenue procedure), the Commissioner will notify the

issuer by letter describing any requirements that have not been satisfied and will

provide the issuer 45 calendar days from

the date of the notification to satisfy the

procedures and requirements for filing or

supporting a claim before notifying the

issuer by letter of the Claim Rejection (as

described in section 4.03(1) of this revenue procedure).

(b) Resubmission permitted after

Claim Rejection. After a Claim Rejection

based on an issuer’s failure to follow procedures or requirements for filing or supporting the claim, an issuer may resubmit

the claim to address the basis for the rejection, provided that the resubmitted claim

is filed by the filing deadline as described

in section 4.02 of this revenue procedure.

(2) Claim Denial. The Commissioner

will notify the issuer of a Claim Denial

by letter explaining the reasons for the

denial and informing the issuer of its right

to request an appeal (see section 4.04 of

this revenue procedure). If a Claim Denial

becomes final under section 4.06 of Rev.

Proc. 2021-10 (failure to make an appeals

request) or because Appeals sustains

the Claim Denial in full or in part, the

issuer may not submit thereafter a claim

for the arbitrage payment(s) with respect

to claim(s) on which the Claim Denial

became final and any such claim will be

rejected under section 4.03(1) of this revenue procedure.

.04 Appeals. An issuer is entitled to

appeal a Claim Denial to Appeals under

the procedures set forth in Rev. Proc. 202110. When an appeal of a claim described

in either § 1.148-3(i)(3)(iii)(A) or (B) is

determined in favor of the issuer, Appeals

must return the case to the office that is

responsible for examinations of tax-advantaged bonds (presently the Office of

Tax Exempt Bonds) for further consideration of the substance of the claim.

SECTION 5. EFFECT ON OTHER

DOCUMENTS

This revenue procedure modifies and

supersedes Rev. Proc. 2008-37, as modified by Rev. Proc. 2017-50, and supersedes Rev. Proc. 2017-50 as of October

18, 2024.

Bulletin No. 2024–41

SECTION 6. EFFECTIVE DATE

This revenue procedure applies to

claims filed on or after October 18,

2024. An issuer that files a claim prior

to October 18, 2024, may apply this

revenue procedure in whole (and not

in part) by affirmatively stating in the

claim that it is applying Rev. Proc.

2024-37.

Bulletin No. 2024–41

SECTION 7. PAPERWORK

REDUCTION ACT

SECTION 8. DRAFTING

INFORMATION

The collection of information contained

in section 4 of this revenue procedure has

been previously reviewed and approved

by the Office of Management and Budget

in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control

number 1545-0047.

The principal author of this revenue

procedure is Brian Choi, Office of Associate Chief Counsel (Financial Institutions

and Products). For further information

regarding this revenue procedure, call

Mr. Choi at 202-317-3154 (not a toll-free

number).

757

October 7, 2024

Part IV

Announcement of

Disciplinary Sanctions

From the Office of

Professional Responsibility

Announcement 2024-34

The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents,

enrolled actuaries, enrolled retirement

plan agents, appraisers, and unenrolled/

unlicensed return preparers (individuals

who are not enrolled to practice and are

not licensed as attorneys or certified public accountants). Licensed or enrolled

practitioners are subject to the regulations

governing practice before the Internal

Revenue Service (IRS), which are set out

in Title 31, Code of Federal Regulations,

Subtitle A, Part 10, and which are released

as Treasury Department Circular No.

230. The regulations prescribe the duties

and restrictions relating to such practice

and prescribe the disciplinary sanctions

for violating the regulations. Unenrolled/

unlicensed return preparers are subject to

Revenue Procedure 81-38 and superseding guidance in Revenue Procedure 201442, which govern a preparer’s eligibility

to represent taxpayers before the IRS in

examinations of tax returns the preparer

both prepared for the taxpayer and signed

as the preparer. Additionally, unenrolled/

unlicensed return preparers who voluntarily participate in the Annual Filing Season Program under Revenue Procedure

2014-42 agree to be subject to the duties

and restrictions in Circular 230, including

the restrictions on incompetent or disreputable conduct.

The disciplinary sanctions to be

imposed for violation of the applicable

standards are:

Disbarred from practice before the

IRS—An individual who is disbarred

is not eligible to practice before the IRS

as defined at 31 C.F.R. § 10.2(a)(4) for a

minimum period of five (5) years.

Suspended from practice before the

IRS—An individual who is suspended is

October 7, 2024

not eligible to practice before the IRS as

defined at 31 C.F.R. § 10.2(a)(4) during

the term of the suspension.

Censured in practice before the

IRS—Censure is a public reprimand.

Unlike disbarment or suspension, censure

does not affect an individual’s eligibility

to practice before the IRS, but OPR may

subject the individual’s future practice

rights to conditions designed to promote

high standards of conduct.

Monetary penalty—A monetary penalty may be imposed on an individual who

engages in conduct subject to sanction,

or on an employer, firm, or entity if the

individual was acting on its behalf and it

knew, or reasonably should have known,

of the individual’s conduct.

Disqualification of appraiser—An

appraiser who is disqualified is barred

from presenting evidence or testimony in

any administrative proceeding before the

Department of the Treasury or the IRS.

Ineligible for limited practice—An

unenrolled/unlicensed return preparer

who fails to comply with the requirements

in Revenue Procedure 81-38 or to comply

with Circular 230 as required by Revenue

Procedure 2014-42 may be determined

ineligible to engage in limited practice as

a representative of any taxpayer.

Under the regulations, individuals

subject to Circular 230 may not assist,

or accept assistance from, individuals

who are suspended or disbarred with

respect to matters constituting practice

(i.e., representation) before the IRS, and

they may not aid or abet suspended or

disbarred individuals to practice before

the IRS.

Disciplinary sanctions are described in

these terms:

Disbarred by decision, Suspended by

decision, Censured by decision, Monetary penalty imposed by decision, and

Disqualified after hearing—An administrative law judge (ALJ) issued a decision

imposing one of these sanctions after the

ALJ either (1) granted the government’s

summary judgment motion or (2) conducted an evidentiary hearing upon OPR’s

complaint alleging violation of the regulations. After 30 days from the issuance of

the decision, in the absence of an appeal,

758

the ALJ’s decision becomes the final

agency decision.

Disbarred by default decision, Suspended by default decision, Censured

by default decision, Monetary penalty

imposed by default decision, and Disqualified by default decision—An ALJ,

after finding that no answer to OPR’s complaint was filed, granted OPR’s motion for

a default judgment and issued a decision

imposing one of these sanctions.

Disbarment by decision on appeal,

Suspended by decision on appeal, Censured by decision on appeal, Monetary penalty imposed by decision on

appeal, and Disqualified by decision

on appeal—The decision of the ALJ was

appealed to the agency appeal authority,

acting as the delegate of the Secretary

of the Treasury, and the appeal authority

issued a decision imposing one of these

sanctions.

Disbarred by consent, Suspended by

consent, Censured by consent, Monetary penalty imposed by consent, and

Disqualified by consent—In lieu of a

disciplinary proceeding being instituted

or continued, an individual offered a consent to one of these sanctions and OPR

accepted the offer. Typically, an offer of

consent will provide for: suspension for

an indefinite term; conditions that the

individual must observe during the suspension; and the individual’s opportunity, after a stated number of months, to

file with OPR a petition for reinstatement

affirming compliance with the terms of

the consent and affirming current fitness

and eligibility to practice (i.e., an active

professional license or active enrollment

status, with no intervening violations of

the regulations).

Suspended indefinitely by decision in

expedited proceeding, Suspended indefinitely by default decision in expedited

proceeding, Suspended by consent in

expedited proceeding—OPR instituted

an expedited proceeding for suspension

(based on certain limited grounds, including loss of a professional license for cause,

and criminal convictions).

Determined ineligible for limited

practice---There has been a final determination that an unenrolled/unlicensed

Bulletin No. 2024–41

return preparer is not eligible for limited

representation of any taxpayer because the

preparer violated standards of conduct or

failed to comply with any of the requirements to act as a representative.

A practitioner who has been disbarred

or suspended under 31 C.F.R. § 10.60, or

suspended under § 10.82, or a disqualified appraiser may petition for reinstatement before the IRS after the expiration

of 5 years following such disbarment,

suspension, or disqualification (or immediately following the expiration of the

suspension or disqualification period if

shorter than 5 years). Reinstatement will

not be granted unless the IRS is satisfied

that the petitioner is not likely to engage

thereafter in conduct contrary to Circular 230, and that granting such reinstatement would not be contrary to the public

interest.

Reinstatement decisions are published

at the individual’s request, and described

in these terms:

Reinstated to practice before the

IRS---The individual’s petition for

reinstatement has been granted. The

agent, and eligible to practice before the

IRS, or in the case of an appraiser, the

individual is no longer disqualified.

Reinstated to engage in limited practice before the IRS---The individual’s

petition for reinstatement has been granted.

The individual is an unenrolled/unlicensed

return preparer and eligible to engage in

limited practice before the IRS, subject to

requirements the IRS has prescribed for

limited practice by tax return preparers.

OPR has authority to disclose the

grounds for disciplinary sanctions in these

situations: (1) an ALJ or the Secretary’s

delegate on appeal has issued a final deci-

sion; (2) the individual has settled a disciplinary case by signing OPR’s “consent

to sanction” agreement admitting to one

or more violations of the regulations and

consenting to the disclosure of the admitted violations (for example, failure to file

Federal income tax returns, lack of due

diligence, conflict of interest, etc.); (3)

OPR has issued a decision in an expedited

proceeding for indefinite suspension; or

(4) OPR has made a final determination

(including any decision on appeal) that an

unenrolled/unlicensed return preparer is

ineligible to represent any taxpayer before

the IRS.

Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The

sanctions announced below are alphabetized first by state and second by the last

names of the sanctioned individuals.

City & State

Name

Professional

Designation

Disciplinary Sanction

Effective Date(s)

California

Carmichael

Detinne, Tiffany C.

CPA

Indefinite from

May 28, 2024

Chatsworth

Alvarez, Vicente

CPA

Granada Hills

Demirchyan, Grigor

CPA

San Francisco

Robinson,

Michael D.

CPA

Thousand Oaks

Beutel, Todd W.

CPA

West Hills

Turk, Bernard

CPA

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Suspended by decision in

expedited proceeding under

31 C.F.R. § 10.82(b)

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Suspended by decision in

expedited proceeding under

31 C.F.R. § 10.82(b)

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Mills, Paul S.

CPA

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

May 8, 2024

Hughes,

Paul S.

Attorney

Suspended by decision in

expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

April 29, 2024

Indefinite from

April 29, 2024

Indefinite from

May 8, 2024

Indefinite from

April 29, 2024

Indefinite from

May 8, 2024

Indefinite from

May 28, 2024

Florida

Key West

Massachusetts

Wellesley

Bulletin No. 2024–41

759

October 7, 2024

City & State

Name

Professional

Designation

Disciplinary Sanction

Effective Date(s)

Michigan

Ionia

McMahon, Brian P.

Attorney

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

April 3, 2024

Missouri

Sullivan

Strauser, Justin L.

CPA

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

May 28, 2024

Damiano,

Robert S.

CPA

Jersey City

Lisa, James R.

Attorney

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Pennsylvania

Shawnee on Delaware

Carney, Daniel J.

CPA

Suspended by decision in

expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

April 2, 2024

Brown, Jr.,

Richard T.

CPA

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

May 8, 2024

Maadani, Pejman

Attorney

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Indefinite from

May 8, 2024

Katy

Hammond III,

Charles E.

Attorney

New Braunfels

Renken, David D.

CPA

Suspended by default decision

in expedited proceeding under

31 C.F.R. § 10.82(b)

Virginia

Ruckersville

Jones, Carol A.

CPA

Suspended by decision in

expedited proceeding under

31 C.F.R. § 10.82(b)

New Jersey

Bridgewater

Tennessee

Brownsville

Texas

Houston

October 7, 2024

760

Reinstated to practice

before the IRS,

effective 04/29/2024

Indefinite from

May 8, 2024

Reinstated to practice

before the IRS,

effective 04/02/2024

Indefinite from

April 2, 2024

Indefinite from

May 15, 2024

Bulletin No. 2024–41

Notice of Proposed

Rulemaking

Section 30C Alternative

Fuel Vehicle Refueling

Property Credit

REG-118269-23

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations regarding the Federal income tax credit under the Inflation

Reduction Act of 2022 for certain costs

relating to qualified alternative fuel vehicle refueling property that is placed in

service within a low-income community

or within a non-urban census tract. These

proposed regulations would affect eligible

taxpayers who place qualified property

into service during a taxable year.

DATES: Written or electronic comments

and requests for a public hearing must be

received by November 18, 2024.

ADDRESSES: Commenters are strongly

encouraged to submit public comments

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

(indicate IRS and REG-118269-23) 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:01:PR (REG118269-23), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin

Station, Washington, DC 20044.

FOR FURTHER INFORMATION

CONTACT: Concerning the proposed

Bulletin No. 2024–41

regulations, the contact Kevin I. Babitz or

Whitney E. Brady of Office of Associate

Chief Counsel (Passthroughs & Special

Industries) at (202) 317-6853 (not a tollfree number); concerning submissions of

comments and requests for a public hearing, Publications and Regulations Section

at (202) 317-6901 (not a toll-free number)

or by email to publichearings@irs.gov

(preferred).

SUPPLEMENTARY INFORMATION:

Authority

This document contains proposed

amendments to the Income Tax Regulations (26 CFR part 1) under sections

30C, 48, 48E, 6417, and 6418 of the Internal Revenue Code (Code) issued by the

Secretary of the Treasury or her delegate

(Secretary) under the authority granted

under sections 30C(e)(5), (g)(4), and (h),

45(b)(12), 48(a)(16), 48E(i), 6417(h),

6418(g) and (h), and 7805(a) of the Code

(proposed regulations).

Section 30C includes three specific

delegations of regulatory authority. First,

30C(h) provides a general grant of regulatory authority for section 30C as a whole,

stating, “[t]he Secretary shall prescribe

such regulations as necessary to carry out

the provisions of this section.” Second,

section 30C(g)(4) provides a specific delegation of authority related to the prevailing wage and registered apprenticeship

(PWA) requirements: “The Secretary shall

issue such regulations or other guidance

as the Secretary determines necessary

to carry out the purposes of this subsection, including regulations or other guidance that provides for requirements for

recordkeeping or information reporting

for purposes of administering the requirements of this subsection.” Third, section

30C(e)(5) provides a specific delegation

of authority by cross-reference to provide

recapture rules similar to those under former section 179A (described in part III.A.

of the Background section and part IV.A.

of the Explanation of Provisions section)

as authorized by former section 179A(e)

(4).

Sections 45(b)(12) and 48(a)(16) provide specific delegations of authority with

respect to the requirements of section

45(b), including the PWA requirements

761

of section 45(b)(7) and (8) that sections

48(a)(10) and (11) and 48E(d)(3) and (4)

refer to, each stating, “[t]he Secretary shall

issue such regulations or other guidance

as the Secretary determines necessary

to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for

recordkeeping or information reporting

for purposes of administering the requirements of this subsection.” Section 48E(i)

provides a specific delegation of authority

with respect to the requirements of section

48E, including the PWA requirements of

section 48E(d)(3) and (4), stating, that

“[n]ot later than January 1, 2025, the

Secretary shall issue guidance regarding

implementation of this section.”

Sections 6417(h) and 6418(h) provide

specific delegations of authority with

respect to the elective payment election

rules of section 6417 and the transfer of

certain credits under section 6418, each

stating, in part, that “[t]he Secretary shall

issue such regulations or other guidance

as may be necessary to carry out the purposes of this section...” Finally, section

7805(a) authorizes the Secretary to prescribe all needful rules and regulations for

the enforcement of the Code.

Background

I. Overview

Section 30C of the Code allows a

credit (section 30C credit) against the tax

imposed by chapter 1 of the Code (chapter

1) with respect to each item of qualified

alternative fuel vehicle refueling property

that a taxpayer places in service. The section 30C credit is determined and allowed

with respect to the taxable year in which

the taxpayer places the item of property in

service.

Section 30C was originally enacted

by section 1342(a) of the Energy Policy

Act of 2005, Public Law 109-58, 119 Stat.

594, 1049 (Aug. 8, 2005), to provide a

credit for the cost of qualified alternative

fuel vehicle refueling property. Section

30C has been amended several times since

its enactment, most recently by section

13404 of Public Law 117-169, 136 Stat.

1818, 1966 (August 16, 2022), commonly

known as the Inflation Reduction Act of

2022 (IRA). As amended by the IRA,

October 7, 2024

section 30C allows taxpayers to claim a

credit for up to 30 percent of the cost of

qualified alternative fuel vehicle refueling

property placed in service after December

31, 2022, and on or before December 31,

2032.

The amount of the section 30C credit

is treated as a personal credit or a general

business credit depending on the character

of the property that the taxpayer places in

service. In general, the section 30C credit

is a nonrefundable personal credit allowed

under subpart B of part IV of subchapter A

of chapter 1. However, the amount of the

section 30C credit that is attributable to

property that is of a character subject to an

allowance for depreciation (depreciable

property) is treated under section 30C(d)

(1) as a current year business credit under

section 38(b) of the Code instead of being

allowed under section 30C(a).

II. Credit Amount and Limitation

For property placed in service after

December 31, 2022, and on or before

December 31, 2032, section 30C(a) provides a credit equal to 6 percent of the cost

of any qualified alternative fuel vehicle

refueling property that the taxpayer places

in service during the year, if the property is

depreciable property. However, for depreciable property that is placed in service as

part of a qualified alternative fuel vehicle

refueling project that satisfies the prevailing wage and apprenticeship requirements

(discussed further in part V of this Background section), the amount of the section

30C credit is multiplied by five. For property that is not subject to depreciation,

section 30C(a) allows a 30 percent credit

for any property placed in service during

the taxable year, with no requirement to

satisfy any prevailing wage and apprenticeship requirements.

The section 30C credit with respect to

any single item of qualified alternative

fuel vehicle refueling property placed in

service by the taxpayer during the taxable

year is limited to $100,000 in the case of

depreciable property, and $1,000 in any

other case. Before the IRA’s amendments

to section 30C became applicable, prior

law limited the section 30C credit, on a

per location basis, to $30,000 in the case

of depreciable property and to $1,000 in

the case of any other property. Section

October 7, 2024

13404 of the IRA modified the limitation

on the section 30C credit so that it now

applies with respect to any single item of

qualified alternative fuel vehicle refueling property instead of with respect to all

qualified alternative fuel vehicle refueling

property at a location.

Under section 30C(e)(1), taxpayers who claim a section 30C credit are

required to reduce the basis of any property for which the section 30C credit is

allowable by the amount of the credit

allowed (without regard to the rules of

section 30C(d)). If a taxpayer elects not

to claim the credit, then no section 30C

credit is allowed, whether under section

30C(a) or section 38, and no basis reduction is required. See section 30C(e)(4).

No section 30C credit is allowable for

the portion of the cost of any property

taken into account under section 179. Section 30C(e)(3).

III. Qualified Alternative Fuel Vehicle

Refueling Property

A. In General

Section 30C(c) defines “qualified

alternative fuel vehicle refueling property” by reference to section 179A of the

Code, with some modifications. (Section

30C(e)(6) clarifies that for purposes of

section 30C, any references to “section

179A” are to section 179A as in effect

immediately before its repeal by section

221(a)(34)(A) of the Tax Increase Prevention Act of 2014, enacted as Division A of Public Law 113–295, 128 Stat.

4010, 4042 (December 19, 2014), which

is referred to as “former section 179A” in

this preamble.) Following the definition

in former section 179A, therefore, qualified alternative fuel vehicle refueling

property generally includes any depreciable property (not including a building and

its structural components), the original

use of which begins with the taxpayer,

and that is (1) for the storage or dispensing of a clean-burning fuel into the fuel

tank of a motor vehicle propelled by such

fuel, but only if the storage or dispensing of the fuel is at the point where such

fuel is delivered into the fuel tank of the

motor vehicle, or (2) for the recharging

of motor vehicles propelled by electricity, but only if the property is located at

762

the point where the motor vehicles are

recharged. See former section 179A(d).

Notwithstanding former section 179A’s

general requirement that the property be

depreciable, section 30C allows a taxpayer to claim a credit for qualified alternative fuel vehicle refueling property

that is not depreciable property, provided

that the property is installed at the taxpayer’s principal residence (within the

meaning of section 121 of the Code). See

section 30C(c)(1)(A) and former section

179A(d)(1).

For purposes of section 30C,

“clean-burning fuels” includes only (1)

any fuel at least 85 percent of the volume of which consists of one or more of

the following: ethanol, natural gas, compressed natural gas, liquified natural gas,

liquefied petroleum gas, or hydrogen; (2)

any mixture that consists of two or more

of the following: biodiesel (as defined in

section 40A(d)(1) of the Code), diesel fuel

(as defined in section 4083(a)(3) of the

Code), or kerosene, and at least 20 percent

of the volume of which consists of biodiesel determined without regard to any

kerosene in such mixture; (3) electricity;

or (4) any transportation fuel (as defined

in section 45Z(d)(5) of the Code) that is

produced after December 31, 2024.

Section 30C does not provide a general definition of “motor vehicle.” However, former section 179A(e)(2) defined

motor vehicle to mean any vehicle that is

manufactured primarily for use on public

streets, roads, and highways (not including a vehicle operated exclusively on a

rail or by rails) and that has at least four

wheels. Further, section 30C(f) explicitly

allows the credit for depreciable property

to recharge two- and three-wheeled motor

vehicles manufactured primarily for use

on public streets, roads, or highways

that are propelled by electricity. Section

30C(f)(1)(A) requires that the depreciable

property “meets the requirements of subsection (a)(2),” but there is no subsection

(a)(2) in the statute.

Section 30C(c)(2) provides that qualified alternative fuel vehicle refueling property does not exclude otherwise eligible

property that both is capable of charging

the battery of a motor vehicle propelled

by electricity and also allows discharging

electricity from such battery to an electric

load external to the motor vehicle.

Bulletin No. 2024–41

B. Eligible Census Tracts

Section 30C, as amended by the IRA,

requires that property be placed in service in an eligible census tract in order to

qualify for the credit. An eligible census

tract is any population census tract that

either is a low-income community under

section 45D(e) of the Code or is not an

urban area (non-urban area). See section

30C(c)(3)(B). The Census Bureau defines

a “population census tract” as a small-area

geographic division of a county or statistically equivalent entity defined for the tabulation and presentation of data from the

decennial census and selected other statistical programs. Population census tracts

are comprised of “census blocks,” and a

census block is the smallest geographic

area for which the Census Bureau collects

and tabulates decennial census data. The

Census Bureau assigns to each population census tract, including census tracts

in U.S. territories, a unique 11-digit census tract Geographic Identifier (GEOID).

Each 11-digit census tract GEOID is comprised of a 2-digit state GEOID, 3-digit

county GEOID, and 6-digit census tract

GEOID.

1. Low-income community census

tracts

Section 30C(c)(3)(B)(i)(I) includes as

an eligible census tract any population

census tract that is described in section

45D(e), which defines the term “low-income community” for purposes of the

new markets tax credit (NMTC). As a

general rule, section 45D(e)(1) defines a

low-income community as any population

census tract for which the poverty rate is

at least 20 percent. The statute also provides more specific ways that a tract can

constitute a low-income community. Section 45D(e)(1) provides that a tract not

located within a metropolitan area constitutes a low-income community if the

median family income for such tract does

not exceed 80 percent of statewide median

family income. Similarly, a tract located

within a metropolitan area is a low-income

community if the median family income

for such tract does not exceed 80 percent

of the greater of the statewide median

family income or the metropolitan area’s

median family income. Section 45D(e)(2)

Bulletin No. 2024–41

provides that certain targeted populations

(within the meaning of section 103(20)

of the Riegle Community Development

and Regulatory Improvement Act of 1994

(12 U.S.C. 4702(20)) may be treated

as low-income communities. Section

45D(e)(3) describes the appropriate areas

not within population census tracts that

are used to determine poverty rates and

median family income. Section 45D(e)(4)

describes certain population census tracts

with a population of less than 2,000 that

are treated as a low-income community

for purposes of the NMTC. Finally, section 45D(e)(5) describes population census tracts located within a high migration

rural county.

Following the guidelines in section

45D(e), the Community Development

Financial Institutions Fund (CDFI Fund)

designates population census tracts as

low-income communities for purposes of

the NMTC. The CDFI Fund determines

these population census tracts based in

part on American Community Survey

(ACS) 5-year estimates, which are published by the Census Bureau. The CDFI

Fund updates its NMTC determination of

“low-income community” census tracts

approximately every five years based on

the updated ACS 5-year estimates. The last

update occurred on September 1, 2023,

when the NMTC low-income community

census tracts were updated to be based

on the 2016-2020 ACS 5-year estimates

(2016-2020 NMTC tracts), which use the

2020 delineation of census tract boundaries (2020 census tract boundaries). Prior

to September 1, 2023, the NMTC low-income community census tracts were based

on 2011-2015 ACS 5-year estimates

(2011-2015 NMTC tracts), which use the

2015 delineation of census tract boundaries (2015 census tract boundaries). The

next update is expected to occur in 2028.

When there is an update, the CDFI

Fund provides a one-year transition period

during which taxpayers may look to either

of the 5-year census tracts. Therefore,

between September 1, 2023, and August

31, 2024, taxpayers can look to either

the 2011-2015 NMTC or the 2016-2020

NMTC tracts to determine which population census tracts are low-income communities for the NMTC (and, by extension

for section 30C purposes). On or after

September 1, 2024, taxpayers must look

763

to the 2016-2020 NMTC tracts to determine which population census tracts are

low-income communities for the NMTC.

2. Non-urban area

Pursuant to section 30C(c)(3)(B)(i)(II),

an eligible census tract includes a non-urban area. Section 30C(c)(3)(B)(ii), defines

“urban area” as a population census tract

that has been designated as an urban area

by the Secretary of Commerce in the most

recent decennial census. However, as of

the 2020 Census (that is, the most recent

decennial census as of the publication of

this document), the Census Bureau defines

urban areas on the basis of census blocks

and not on the basis of population census

tracts. The Census Bureau determines

urban areas based on how densely developed a territory is, and to what extent the

territory encompasses residential, commercial, and other non-residential urban

land uses. The Census Bureau delineates

urban areas after each decennial census.

3. Census tracts in U.S. territories.

Section 30C(e)(3) provides generally

that property used outside the United

States does not qualify for the section

30C credit by excluding property referred

to in section 50(b)(1) of the Code, which

provides generally that property used predominantly outside the United States does

not qualify for a credit to which section

50 applies. However, section 50(b)(1)(B)

provides an exception for certain categories of property described in section

168(g)(4) of the Code. Section 168(g)(4)

describes, among other things, property

owned by a domestic corporation or by

a United States citizen (other than a citizen entitled to the benefits of section 931

or section 933) and that is used predominantly in a territory (also referred to as a

possession) of the United States by such a

corporation or such a citizen, or by a corporation created or organized in, or under

the law of, a territory of the United States.

Accordingly, because section 30C(e)

(3), by reason of sections 50(b)(1)(B)

and 168(g)(4), would allow for qualified

alternative fuel vehicle refueling property

to be used by certain taxpayers predominantly in a territory of the United States,

eligible census tracts include low-income

October 7, 2024

community census tracts and non-urban

census tracts located in a territory of the

United States.

IV. Property Used by A Tax-Exempt or

Government Entity

Section 30C(e)(2) provides that in the

case of any qualified alternative fuel vehicle refueling property the use of which is

described in section 50(b)(3) (generally,

use by tax-exempt organizations) or (b)

(4) (generally, use by the United States or

a government entity or foreign persons or

entities) and that is not subject to a lease,

the person who sold such property to the

person or entity using such property is

treated as the taxpayer that placed such

property in service, but only if the seller

clearly discloses to the tax-exempt or government entity in a document the amount of

any credit allowable under section 30C(a)

with respect to such property (determined

without regard to section 30C(d) (treating

the credit as a credit listed in section 38(b)

or as a personal credit)). For purposes of

section 30C(d), property to which section

30C(e)(2) applies is treated as of a character subject to an allowance for depreciation.

V. Prevailing Wage and Registered

Apprenticeship Requirements

The IRA amended several sections of

the Code, including section 30C, to provide increased credit amounts for taxpayers who satisfy certain requirements,

including an increased credit amount for

satisfying prevailing wage and registered

apprenticeship (PWA) requirements. This

same increased credit amount is available

under certain sections of the Code, including section 30C, if beginning of construction occurs before January 29, 2023 (BOC

Exception).1

For properties placed in service after

December 31, 2022, the section 30C

credit is equal to 6 percent for depreciable property. If a taxpayer satisfies the

PWA requirements in section 30C(g)

(2) and (3) or meets the BOC Exception

with respect to a qualified alternative fuel

vehicle refueling project, then the credit

determined under section 30C(a) for any

qualified alternative fuel vehicle refueling

property that is depreciable property and

that is part of such project is multiplied

by five. For purposes of the PWA requirements, section 30C(g)(1)(B) defines a

“qualified alternative fuel vehicle refueling project” as a project consisting of one

or more properties that are part of a single project. Section 30C(g)(2)(A) requires

the taxpayer to ensure that any laborers

and mechanics employed by the taxpayer

or any contractor or subcontractor in the

construction of any qualified alternative

fuel vehicle refueling property that is part

of a qualified alternative fuel vehicle refueling project are paid wages at rates not

less than prevailing rates. Under section

30C(g)(3), rules similar to the rules in section 45(b)(8) apply regarding the apprenticeship requirements.

On June 25, 2024, the Treasury Department and the IRS published final regulations in the Federal Register (89 FR

53184) that govern the increased credit or

deduction amount available for taxpayers

satisfying the PWA requirements that the

IRA established with respect to several

credits, including the section 30C credit

(final PWA regulations). Specifically for

the section 30C credit, the final PWA regulations provided clarifications to the applicable scope of the PWA requirements.

VI. Coordination with Sections 6417

and 6418

Section 6417 allows an applicable entity

(as defined in section 6417(d)(1)(A), generally including tax-exempt and government

entities, Indian Tribal governments, and

Alaska Native Corporations, among others)

to make an election to be treated as making a payment against the tax imposed by

subtitle A of the Code for the taxable year

with respect to which an applicable credit

(as defined in section 6417(b)) was determined equal to the amount of the applicable credit. Section 6417(b)(1) includes

the amount of a section 30C credit, to the

extent treated under section 30C(d)(1) as a

general business credit under section 38, as

an applicable credit.

Section 6418 permits an eligible taxpayer (defined in section 6418(f)(2) as a

taxpayer not described in section 6417(d)

(1)(A)) to make an election to transfer all

or a portion of an eligible credit (defined

in section 6418(f)(1)), determined with

respect to such taxpayer for any taxable

year to an unrelated taxpayer (within

the meaning of section 267(b) or 707(b)

(1)). Section 6418(f)(1)(A)(i) includes

the amount of a section 30C credit, to the

extent treated under section 30C(d)(1) as

a general business credit under section 38,

as an eligible credit.

VII. Prior Guidance, Request for

Comments, and Other Documents

Relating to the Alternative Fuel Vehicle

Refueling Property Credit

A. Notice 2007-43

On May 29, 2007, the Treasury Department and the IRS published Notice 200743, 2007-22 I.R.B. 1318, which provided

interim guidance on the then-recently

enacted section 30C. This notice provided

specific guidance relating to the computation of the section 30C credit and the

treatment for purposes of the credit of

converted and dual-use refueling property.

B. Notice 2022-56

On November 21, 2022, the Treasury

Department and the IRS published Notice

2022-56, 2022-47 I.R.B. 480. This notice

requested general comments on issues

arising under section 30C, as amended by

the IRA, as well as specific comments concerning: (1) depreciable property; (2) the

definition of a “single item”; (3) bidirectional charging equipment; (4) eligible

census tracts; (5) recapture; and (6) miscellaneous topics. The Treasury Department and the IRS received 135 comments

from industry participants, environmental

groups, individual consumers, and other

stakeholders. The Treasury Department

and the IRS appreciate the commenters’

On November 30, 2022, the Treasury Department and the IRS published Notice 2022-61 in the Federal Register (87 FR 73580, corrected in 87 FR 75141 (Dec. 7, 2022)), providing

guidance with respect to the PWA requirements in section 45(b)(7) and (8), including initial guidance for determining the beginning of construction under section 45 and other credits and

the beginning of installation under section 179D. The final PWA regulations published in the Federal Register (89 FR 53184) (part III of the Background section) provide further detail on

the BOC Exception.

<?>

October 7, 2024

764

Bulletin No. 2024–41

interest and engagement on these issues.

These comments have been considered

carefully in the preparation of these proposed regulations.

C. Notice 2024-20

On February 12, 2024, the Treasury

Department and the IRS published Notice

2024-20, 2024-7 I.R.B. 668, to provide

guidance on eligible census tracts for

the section 30C credit and to announce

the intent to propose regulations for the

credit. This notice describes relevant census concepts, provides background and

definitions for low-income communities

and non-urban census tracts, and explains

the census tract boundaries that apply for

the relevant census tract determinations.

The notice also provides taxpayers with a

list of eligible census tracts in advance of

the 2023 filing season and explains how

taxpayers can identify the 11-digit census

tract identifier for a location where a property is placed in service.

Explanation of Provisions

I. 30C Property, Recharging Property,

Refueling Property

Proposed §1.30C-1(a) would provide

a general overview of the proposed section 30C regulations. Proposed §1.30C1(b) would provide definitions that would

apply for purposes of section 30C and the

30C regulations.

The proposed regulations use the term

“30C property” to describe property that is

eligible for the section 30C credit. As proposed, the term 30C property would generally be synonymous with the statutory

phrase “qualified alternative fuel vehicle

refueling property.” Proposed §1.30C-1(b)

(1) would define 30C property to include

any property (other than real property and

a building and its structural components)

that is comprised of components that are

functionally interdependent for “refueling

property” or “recharging property” and, if

applicable, an integral part of the refueling

property or recharging property. For purposes of the proposed regulations, refueling property would mean property for the

storage and dispensing of a qualified alternative fuel into the fuel tank of a motor

vehicle propelled by such fuel, but only

Bulletin No. 2024–41

if the storage or dispensing of the fuel is

at the point where such fuel is delivered

into the fuel tank of the motor vehicle.

Proposed §1.30C-1(b)(1)(i)(A); see also

proposed §1.30C-1(b)(16)(i). Similarly,

“recharging property” would mean property for the recharging of a motor vehicle propelled by electricity, but only if

the property is located at the point where

the motor vehicle is recharged. Proposed

§1.30C-1(b)(1)(i)(B); see also proposed

§1.30C-1(b)(16)(ii).

Proposed §1.30C-1(b)(14) would provide that components are “functionally

interdependent” if the placing in service

of each component is dependent upon

the placing in service of each of the other

components in order to refuel or recharge

a motor vehicle. Proposed §1.30C-1(b)

(15) would further provide that property is an “integral part” of a refueling or

recharging property if it is used directly

in the intended function of the refueling property or recharging property and

is essential to the completeness of this

intended function, meets all of the requirements for 30C property described in proposed §1.30C-1(b)(1)(iii), is owned by the

taxpayer that owns the refueling property

or recharging property, and is specifically

designed to be integrated with the refueling property or recharging property with

which it is associated.

Proposed §1.30C-1(b)(1)(iii) would

provide a list of additional requirements

that any eligible property must meet to

be 30C property. First, the property must

either be of a character subject to an

allowance for depreciation or installed on

property that is used as the principal residence of the taxpayer (within the meaning

of section 121). Second, the property’s

original use must begin with the taxpayer.

Proposed §1.30C-1(b)(18) would provide

that “original use” has the same meaning

as in §1.48-2(b)(7). Finally, the property

must be placed in service in an eligible

census tract (see discussion of eligible

census tracts in part II.E of this Explanation of Provisions section).

II. General Rules

A. Amount of Credit

Proposed §1.30C-2(a)(1) would provide that section 30C(a) allows a taxpayer

765

to claim as a credit against the tax imposed

by chapter 1 an amount equal to a percentage of the cost of any 30C property placed

in service by the taxpayer during the taxable year, subject to certain dollar-amount

limitations described in section 30C(b)

and proposed §1.30C-2(a)(4).

Consistent with section 30C(a), proposed §1.30C-2(a)(2)(i) would provide

that in the case of depreciable property,

section 30C(a) allows as a credit against

tax an amount equal to 6 percent of the

cost of any 30C property placed in service by the taxpayer during the taxable

year. Under proposed §1.30C-2(a)(2)(ii),

the section 30C credit for the cost of any

30C property placed in service as part

of a project that meets the PWA requirements is multiplied by 5. Property placed

in service by certain tax-exempt organizations and governmental units described

in section 50(b)(3) and (4) of the Code

is treated as property of a character subject to an allowance for depreciation for

purposes of calculating the section 30C

credit. See sections 30C(e)(2) and 6417(d)

(2) and §1.6417-2(c). Proposed §1.30C2(a)(2)(iii) would provide that in the case

of property of a character not subject to

an allowance for depreciation, section

30C(a) allows as a credit against tax an

amount equal 30 percent of the cost of

any 30C property placed in service by the

taxpayer during the taxable year provided

that such property is installed on property

that is used as the taxpayer’s principal

residence (within the meaning of section

121). Consistent with section 30C(b),

proposed §1.30C-2(a)(4) would limit the

section 30C credit with respect to any single item of 30C property placed in service

by the taxpayer during the taxable year

to $100,000 for depreciable property and

$1,000 for non-depreciable property.

If the business use of the property is

50 percent or less, proposed §1.30C-2(a)

(3) would provide rules for apportioning

the section 30C credit between business

use and personal use. If the business use

is more than 50 percent, then the section

30C credit would be treated under the

proposed regulations only as a general

business credit under section 30C(d)(1)

(and subject to the $100,000 limitation).

If the business use of the 30C property

is 50 percent or less, then the property

would be considered “apportioned-use

October 7, 2024

property” under the proposed regulations

and the taxpayer’s section 30C credit

for that taxable year for that 30C property would be apportioned in accordance

with the taxpayer’s use of the property

between the general business credit under

section 30C(d)(1) and the personal credit

allowed under section 30C(a) pursuant

to section 30C(d)(2). To be within these

apportionment rules, the proposed regulations would provide that the 30C property

must be installed at the taxpayer’s personal residence to qualify for the personal

credit, but also be used for business use.

For example, these proposed rules would

apply to a taxpayer who operates a delivery service and installs an electric vehicle

charger at her personal residence, which

she uses to charge both her personal vehicle and her delivery vehicle.

If 30C property is apportioned-use

property, proposed §1.30C-2(a)(4)(ii)

would provide that the dollar-amount limitation must be apportioned in the same

manner as the taxpayer’s credit under

section 30C. For example, in the case of

30C property the business use of which is

40 percent of a taxpayer’s total use of the

property for the taxable year in which the

property is placed in service, the portion

treated as a general business credit under

section 30C(d)(1) cannot exceed $40,000

($100,000 multiplied by 40 percent),

and the portion treated as a section 30C

credit allowed under section 30C(a) cannot exceed $600 ($1,000 multiplied by 60

percent).

B. Single Item of Property and

Calculating the Section 30C Credit

As discussed in part II of the Background section of this preamble, one

major change that the IRA made to section

30C was to allow the credit per single item

of property, rather than per location. Thus,

proposed §1.30C-2(b)(1) would provide

that taxpayers may claim a section 30C

credit if they place in service at least one

single item of 30C property during the

taxable year.

Section 30C does not define “single

item of property.” In Notice 2022-56, the

Treasury Department and the IRS asked

for comments on how to define a “single item of property.” Many commenters

suggested that, for purposes of electric

October 7, 2024

vehicle chargers, a “single item” should

be defined as each charging port and that

the item also should include functionally

interdependent property as well as other

property that commenters deemed necessary for the installation and use of the

charger. The proposed regulations largely

adopt these comments.

1. Definition of single item of 30C

property

For purposes of calculating the section 30C credit, proposed §1.30C-2(b)(1)

would define a single item of 30C property as each charging port for recharging

property, each fuel dispenser for refueling

property, or each qualified alternative fuel

storage property or electrical energy storage property.

For purposes of the proposed regulations, a charging port would mean the

system within a charger that charges one

motor vehicle. Under proposed §1.30C1(b)(6), a charging port may have multiple

connectors, but it can provide power at its

rated electrical output to charge only one

motor vehicle through one connector at a

time. Some chargers may have more than

one port, in which case proposed §1.30C2(b)(2)(ii) would provide that the cost of

the charger would need to be allocated

among the number of ports for purposes

of determining the credit. The Treasury

Department and the IRS agree with the

commenters that allowing the credit based

on the number of motor vehicles that could

be charged simultaneously at the port’s

rated electrical output is appropriate based

on the IRA amendments to section 30C to

provide a credit limit per single item of

property, rather than a broader term such

as per charging property or per location,

and consistent with one purpose of the

IRA to expand incentives for taxpayers to

transition to clean vehicles.

The proposed regulations would define

a fuel dispenser as the unit through which

fuel is dispensed into the fuel tank of a

motor vehicle if such unit is capable of

fueling at or above the dispenser’s minimum rate of fueling and has at least one

hose and nozzle. Proposed §1.30C-1(b)

(12) would provide that a dispenser may

optionally include a meter, valve, controller, and enclosure. These proposed

regulations would use these definitions

766

of “fuel dispenser” for refueling property

and “charging port” for recharging property with the goal to similarly situate the

accounting of credits among the eligible

alternative fuels with consideration of

their refueling technologies and station

designs.

Proposed §1.30C-1(b)(25) would

define two types of storage property: qualified alternative fuel storage property and

electrical energy storage property. Under

proposed §1.30C-1(b)(25)(ii), “qualified

alternative fuel storage property” would

mean property used for the storage of such

qualified alternative fuel. Under proposed

§1.30C-1(b)(20), qualified alternative fuel

would generally refer to all clean-burning

fuels (as defined in proposed §1.30C-1(b)

(7)) except electricity. Proposed §1.30C1(b)(25)(iii) would define “electrical

energy storage property” to mean property that receives, stores, and delivers

energy for conversion to electricity. Under

proposed §1.30C-1(b)(25), both types of

storage property would be required to be

located at the point where the motor vehicle is refueled or recharged. Proposed

§1.30C-1(b)(16) would provide that this

requirement is generally satisfied if the

storage property is located at the same or

an immediately adjacent physical address

as the location where the fuel is delivered

into the fuel tank of the motor vehicle or

where the motor vehicle is recharged.

Former section 179A(d)(3)(A), adopted

by reference into section 30C(c), uses the

language “for the storage or dispensing of

a clean-burning fuel into the fuel tank of

a motor vehicle propelled by such fuel”

in its definition of qualified clean-fuel

vehicle refueling property, indicating

that clean-burning fuel storage property

is a separate item of qualified clean-fuel

vehicle refueling property. Former section

179A(d)(3)(B) uses the language “for the

recharging of motor vehicles propelled

by electricity” as a separate prong of this

same definition, indicating that electrical

energy storage property is not a separate

item of qualified clean-fuel vehicle refueling property. However, former section

179A(e)(1) includes electricity within the

definition of clean-burning fuels, such that

electric vehicle refueling property could be

eligible property under either former section 179A(d)(3)(A) (where storage is specifically mentioned) or (B) (where storage

Bulletin No. 2024–41

is not specifically mentioned). These proposed regulations would provide that the

cost of electrical energy storage property

that is used for charging motor vehicles

is creditable as a separate item of property under section 30C. Electrical energy

storage can be used for electric vehicle

charging to smooth costs and to minimize

the impact on the electrical grid by taking

the energy from the grid during non-peak

hours when energy is cheaper and storing

the energy for use during higher cost peak

hours. Thus, electrical energy storage

can be a critical part of electric vehicle

recharging infrastructure. Further, treating

all types of storage as a separate item of

property is consistent with the language

of former section 179A(d). Finally, allowing electrical energy storage property as

a separate item of property treats storage

property consistently across various types

of clean-burning fuel.

These proposed regulations would also

modify proposed §§1.48-9 and 1.48E-2

to provide that energy storage technology

does not include energy storage property

for which the taxpayer claims a credit

under section 30C. Energy storage technology may be eligible for an investment

credit under sections 48 and 48E, subject

to certain limitations. However, sections

48 and 48E exclude from the definition of

energy storage technology property primarily used in the transportation of goods

or individuals and not for the production

of electricity. See sections 48(c)(6)(A) and

48E(c)(2). The section 48 proposed regulations did not propose a rule interpreting

this exclusion but requested comments

on its scope.2 Commenters to the section

48 proposed regulations requested that

batteries and other energy storage technology that may be used to charge or

recharge electric vehicles be eligible for

the section 48 credit because it may be

more valuable than the section 30C credit

in certain cases; however, commenters

did not request that the same property

be eligible for both sections 48 and 30C.

The Treasury Department and the IRS

agree that Congress did not intend to

allow multiple credits for investments in

the same energy storage property associated with vehicle recharging or refueling,

as evidenced by the sections 48 and 48E

exclusion for property primarily used in

the transportation of goods or individuals

and not for the production of electricity.

Property for which a section 30C credit

is claimed is property primarily used in

the transportation of goods or individuals

and not for the production of electricity,

because the section 30C credit is limited

to property “for the storage or dispensing

of a clean-burning fuel into the fuel tank

of a motor vehicle propelled by such fuel”

or “for the recharging of motor vehicles

propelled by electricity.” See sections

30C(c)(1) and 179A(d)(3). Accordingly,

the proposed regulations would clarify

that energy storage property for which a

section 30C credit is claimed is property

primarily used in the transportation of

goods or individuals and not for the production of electricity, and, therefore, is not

energy storage technology for purposes

of sections 48 and 48E. However, energy

storage property for which a section 30C

credit is not claimed, could be credit-eligible energy storage technology under sections 48 and 48E if it meets the requirements under those provisions.

2. Associated property and calculating the

credit

Under proposed §1.30C-2(b)(1), the

amount of the section 30C credit would

include the cost of functionally interdependent property and, if applicable, any

property that is an integral part of refueling or recharging property that is part

of the 30C property placed in service by

the taxpayer during the year (associated

property). These costs would be included

in the section 30C credit for a single item

to the extent that they are directly attributable and traceable to that particular single

item of 30C property. The cost of associated property that is directly attributable

and traceable to more than one item of

30C property would be al

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.