# Bulletin No. 2023–27

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URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ab6139abb8f4f251a

## Record

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

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2023–27
July 3, 2023

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

EMPLOYEE PLANS
Notice 2023-48, page 1124.

This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment rates
for June 2023 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for June 2023, and the
30-year Treasury rates, as reflected by the application of
§ 430(h)(2)(C)(iv).

INCOME TAX
REG-101607-23, page 1127.

This item contains proposed regulations concerning the
election under the Inflation Reduction Act of 2022 to treat
the amount of certain tax credits as a payment of Federal
income tax. The proposed regulations describe rules for
the elective payment of these credit amounts in a taxable
year, including definitions and special rules applicable to
partnerships and S corporations and regarding repayment of excessive payments. In addition, the proposed
regulations describe rules related to an IRS pre-filing
registration process that would be required. These proposed regulations affect tax-exempt organizations, State
and local governments, Indian tribal governments, Alaska
Native Corporations, the Tennessee Valley Authority, rural
electric cooperatives, and, in the case of three of these
credits, certain taxpayers eligible to elect the elective payment of credit amounts in a taxable year. This document
also provides notice of a public hearing on the proposed
regulations.

REG-101610-23, page 1161.

This item contains proposed regulations concerning the
election under the Inflation Reduction Act of 2022 to

Finding Lists begin on page ii.

transfer certain Federal income tax credits. The proposed
regulations describe the proposed rules for the election to
transfer eligible credits in a taxable year, including definitions and special rules applicable to partnerships and S
corporations and regarding excessive credit transfer or
recapture events. In addition, the proposed regulations
describe rules related to an IRS pre-filing registration process that would be required. These proposed regulations
affect eligible taxpayers that elect to transfer eligible credits in a taxable year and the transferee taxpayers to which
eligible credits are transferred.

REG-105595-23, page 1194.

These proposed regulations provide guidance regarding the
elective payment election of the advanced manufacturing
investment credit under section 48D of the Internal Revenue
Code (Code). The proposed regulations reflect changes
made by the CHIPS Act of 2022, and supplement the rules
proposed in the March 2023 proposed regulations. The section 48D credit may be claimed for qualified investments in
an advanced manufacturing facility that manufactures finished semiconductors or finished semiconductor manufacturing equipment.

Rev. Rul. 2023-12, page 1111.

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 July 2023.

T.D. 9975, page 1113.

The temporary regulations, TD 9975, provide mandatory information and pre-filing registration requirements that must be
completed before elections available under sections 48D(d),
6417, and 6418 of the Internal Revenue Code (Code) may be
made.

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.

July 3, 2023 

Bulletin No. 2023–27

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)

Rev. Rul. 2023-12
This revenue ruling provides various prescribed rates for federal income

Annual
AFR
110% AFR
120% AFR
130% AFR

4.80%
5.28%
5.77%
6.25%

AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR

3.85%
4.23%
4.62%
5.01%
5.80%
6.78%

AFR
110% AFR
120% AFR
130% AFR

3.98%
4.38%
4.79%
5.19%

Short-term adjusted AFR
Mid-term adjusted AFR
Long-term adjusted AFR

Bulletin No. 2023–27

tax purposes for July 2023 (the current
month). Table 1 contains the shortterm, 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, mid-term, 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 long-term
tax-exempt rate described in section
382(f). Table 4 contains the appropriate percentages for determining the

REV. RUL. 2023-12 TABLE 1
Applicable Federal Rates (AFR) for July 2023
Period for Compounding
Semiannual
Short-term
4.74%
5.21%
5.69%
6.16%
Mid-term
3.81%
4.19%
4.57%
4.95%
5.72%
6.67%
Long-term
3.94%
4.33%
4.73%
5.12%

Annual
3.63%
2.91%
3.01%

REV. RUL. 2023-12 TABLE 2
Adjusted AFR for July 2023
Period for Compounding
Semiannual
3.60%
2.89%
2.99%

1111

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%. 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. Finally, Table 6 contains the blended annual rate for 2023
for purposes of section 7872.

Quarterly

Monthly

4.71%
5.18%
5.65%
6.11%

4.69%
5.15%
5.62%
6.08%

3.79%
4.17%
4.54%
4.92%
5.68%
6.62%

3.78%
4.15%
4.53%
4.90%
5.65%
6.58%

3.92%
4.31%
4.70%
5.09%

3.91%
4.29%
4.68%
5.07%

Quarterly
3.58%
2.88%
2.98%

Monthly
3.57%
2.87%
2.97%

July 3, 2023

REV. RUL. 2023-12 TABLE 3
Rates Under Section 382 for July 2023
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.)

3.01%
3.01%

REV. RUL. 2023-12 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for July 2023
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
7.91%
Appropriate percentage for the 30% present value low-income housing credit
3.39%
REV. RUL. 2023-12 TABLE 5
Rate Under Section 7520 for July 2023
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a
remainder or reversionary interest

4.60%

REV. RUL. 2023-12 TABLE 6
Blended Annual Rate for 2023
Section 7872(e)(2) blended annual rate for 2023

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
July 2023. See Rev. Rul. 2023-12, page 1.

Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
July 2023. See Rev. Rul. 2023-12, page 1.

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 July 2023. See Rev.
Rul. 2023-12, page 1.

4.65%

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
July 2023. See Rev. Rul. 2023-12, page 1.

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 July 2023. See Rev. Rul.
2023-12, page 1.

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
July 2023. See Rev. Rul. 2023-12, page 1.

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
July 2023. See Rev. Rul. 2023-12, page 1.

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 July 2023. See Rev. Rul. 2023-12, page 1.

Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of July 2023. See Rev. Rul.
2023-12, page 1.

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
July 2023. See Rev. Rul. 2023-12, page 1.

July 3, 2023

1112

Bulletin No. 2023–27

26 CFR 1.48D-6T: Elective Payment Election; 26
CFR 1.6417-5T: Additional information and registration; 26 CFR 1.6418-4T: Additional information
and registration

DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
T.D. 9975
Pre-Filing Registration
Requirements for Certain
Tax Credit Elections
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains temporary regulations setting forth mandatory
information and registration requirements
for taxpayers planning to make an elective payment election under the Inflation
Reduction Act of 2022 and the CHIPS Act
of 2022 to treat the amount of certain tax
credits as a payment of Federal income tax,
or in the case of a partnership or S corporation, to receive a payment in the amount of
such credits. This document also contains
temporary regulations setting forth mandatory information and registration requirements for taxpayers planning to make an
election to transfer certain Federal income
tax credits under the Inflation Reduction
Act of 2022. These temporary regulations
affect tax-exempt organizations, State and
local governments, Indian tribal governments, Alaska Native Corporations, the
Tennessee Valley Authority, rural electric cooperatives, and, in the case of three
credits, certain taxpayers eligible to elect
the elective payment of credit amounts in
a taxable year under section 6417 of the
Internal Revenue Code (Code). These temporary regulations also affect taxpayers eligible to make an elective payment election
instead of claiming the advanced manufacturing investment credit under section 48D
of the Code. These temporary regulations
further affect taxpayers eligible to elect to
transfer certain Federal income tax credits
under section 6418 of the Code.

Bulletin No. 2023–27

DATES: Effective date: This temporary
regulation is effective on June 21, 2023.
Applicability date: For dates of applicability, see §§1.48D-6T(j), 1.6417-5T(d),
and 1.6418-4T(d).
FOR FURTHER INFORMATION
CONTACT: Concerning these temporary
regulations, Lani M. Sinfield at (202) 3175871 (not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
I. Overview
This document amends the Income Tax
Regulations (26 CFR part 1) to add temporary regulations providing information
and registration requirements that must
be completed before elections available
under sections 48D(d), 6417, and 6418 of
the Code may be made.
In accordance with section 7805(e)
(1) of the Code, concurrent with the publication of this Treasury Decision, the
Department of the Treasury (Treasury
Department) and the IRS are publishing in
the Proposed Rules section of this issue of
the Federal Register three notices of proposed rulemaking that contain proposed
regulations under §§1.48D-6, 1.6417-5,
and 1.6418-4, the text of which is identical to the text of §§1.48D-6T, 1.6417-5T,
and 1.6418-4T of the temporary regulations. REG-105595-23 provides proposed
regulations under section 48D(d). REG101607-23 provides proposed regulations
under sections 6241 and 6417. REG101610-23 provides proposed regulations
under section 6418.
Interested persons are directed to the
ADDRESSES and COMMENTS AND
PUBLIC HEARING sections of the preambles to REG-105595-23, REG-10160723, and REG-101610-23 for information
on submitting public comments or the public hearings for the proposed regulations.
II. Sections 48D(d), 6417, and 6418
A notice of proposed rulemaking (REG105595-23) in the Proposed Rules section
in this issue of the Federal Register provides a background description of section

1113

48D. A notice of proposed rulemaking
(REG-101607-23) in the Proposed Rules
section in this issue of the Federal
Register provides a background description of section 6417. A notice of proposed
rulemaking (REG-101610-23) in the
Proposed Rules section in this issue of the
Federal Register provides a background
description of section 6418.
Explanation of Provisions
I. Pre-filing Registration Requirements
under Section 48D(d)
Temp. Reg. §1.48D-6T(b)(1) provides
the mandatory pre-filing registration process that, except as provided in guidance,
a taxpayer must complete as a condition
of, and prior to, any amount being treated
as a payment against the tax imposed
under §1.48D-6(a)(1), or an amount paid
to a partnership or S corporation pursuant to §1.48D-6(d)(2)(ii)(A). A taxpayer
is required to use the pre-filing registration process to register each qualified
investment in an advanced manufacturing
facility. A taxpayer that does not obtain a
registration number or report the registration number on its annual tax return with
respect to an advanced manufacturing
facility is ineligible to receive any elective payment amount with respect to the
amount of any section 48D credit determined with respect to that advanced manufacturing facility. However, completion
of the pre-filing registration requirements
and receipt of a registration number does
not, by itself, mean that the taxpayer is
eligible to receive a payment with respect
to the section 48D credits determined with
respect to the advanced manufacturing
facility.
The pre-filing registration requirements are that a taxpayer:
(1) must complete the registration process electronically through the IRS electronic portal and in accordance with the
instructions provided therein, unless otherwise provided in guidance;
(2) must satisfy the registration requirements and receive a registration number
prior to making a section 48D(d)(1) elective payment election on the taxpayer’s
tax return for the taxable year at issue;
(3) is required to obtain a registration
number for each qualified investment in

July 3, 2023

an advanced manufacturing facility with
respect to which a section 48D credit will
be determined and for which the taxpayer
wishes to make a section 48D(d)(1) elective payment election; and
(4) must provide the specific information required to be provided as part
of the pre-filing registration process. The
provision of such information, which
includes information about the taxpayer
and about the qualified investment in an
advanced manufacturing facility, would
allow the IRS to prevent duplication,
fraud, improper payments, or excessive
payments under section 48D. For example, verifying information about the taxpayer would allow the IRS to mitigate
the risk of fraud or improper payments
to entities that are not eligible taxpayers.
Information about the taxpayer’s taxable
year would allow the IRS to ensure that
an elective payment election is timely
made on the entity’s annual tax return.
Information about the advanced manufacturing facility, including its address and
coordinates (longitude and latitude), supporting documentation, beginning of construction date, and placed in service date
would allow the IRS to mitigate the risk
of duplication, fraud, and improper payments for properties that are not advanced
manufacturing facilities.
Temp. Reg. §1.48D-6T(b)(7)(i) provides that, after a taxpayer completes
pre-filing registration with respect to each
qualified investment in an advanced manufacturing facility with respect to which
the taxpayer intends to elect a section
48D(d) elective payment election for the
taxable year, the IRS will review the information provided and will issue a separate
registration number for each qualified
investment for which the taxpayer provided sufficient verifiable information.
Temp. Reg. §1.48D-6T(b)(7)(ii) provides that a registration number is valid
only for the taxable year for which it is
obtained. Temp. Reg. §1.48D-6T(b)(7)(iii)
provides that, if an elective payment election will be made with respect to a qualified
investment in an advanced manufacturing
facility for a taxable year for which a registration number under this section has been
obtained for a prior taxable year, the taxpayer must renew the registration each subsequent year in accordance with applicable
guidance, including attesting that all the

July 3, 2023

facts previously provided are still correct
or updating any facts that are relevant in
calculating the amount of the section 48D
credit. Temp. Reg. §1.48D-6T(b)(7)(iv)
provides that, if facts change with respect
to the qualified investment in an advanced
manufacturing facility for which a registration number has been previously obtained,
the taxpayer must amend the registration to
reflect these new facts. The regulations provide, for example, that if the facility previously registered for an elective payment
election undergoes a change of ownership
(incident to a corporate reorganization or
an asset sale) such that the new owner has
a different employer identification number
(EIN) than the owner who obtained the
original registration, the original owner
would be required to amend the original
registration to disassociate its EIN from the
advanced manufacturing facility and the
new owner must submit an original registration (or if the new owner previously
registered other advanced manufacturing
facilities, must amend its original registration) to associate the new owner’s EIN
with the previously registered advanced
manufacturing facility.
Lastly, Temp. Reg. §1.48D-6(b)(7)
(v) provides that the taxpayer is required
to include the registration number of the
advanced manufacturing facility on the
taxpayer’s annual return for the taxable
year for an election under Temp. Reg.
§1.48D-6(a)(1). The IRS will treat an
elective payment election as ineffective
with respect to any section 48D credit
determined with respect to the advanced
manufacturing facility for which the taxpayer does not include a valid registration
number on the annual tax return.
II. Pre-filing Registration Requirements
and Additional Information under
Section 6417
Section 6417(d)(5) provides that, as
a condition of, and prior to, any amount
being treated as a payment that is made
by the taxpayer under section 6417(a) or
any payment being made pursuant to section 6417(c), the Secretary may require
such information or registration as the
Secretary deems necessary or appropriate
for purposes of preventing duplication,
fraud, improper payments, or excessive
payments.

1114

In general, stakeholders requested additional information about this provision and
requested that the regulations balance the
need to prevent fraud and abuse with the
burden on taxpayers. Stakeholders recommended that the information required to
be provided to the IRS should be provided
in a manner that facilitates automated procedures to help catch potential fraud, discourages abusive or otherwise illegitimate
claims, and allows efficient and prompt
review (both before payment and through
audits). Stakeholders recommended that
all required documents and information
should be able to be submitted easily via an
online portal. Stakeholders recommended
that information or registration should be
as consistent as possible across sections
48D(d)(1), 6417(d)(5), and 6418(g)(1).
Temp. Reg. §1.6417-5T provides the
mandatory pre-filing registration process. Temp. Reg. §1.6417-5T(a) provides an overview of this process and
requires an applicable entity or electing
taxpayer to satisfy the pre-filing registration requirements as a condition of,
and prior to, making an elective payment
election. An applicable entity or electing
taxpayer is required to use the pre-filing
registration process to register itself as
intending to make the elective payment
election, to list all applicable credits it
intends to claim, and to list each applicable credit property that contributed
to the determination of such credits
as part of the pre-filing submission (or
amended submission). An applicable
entity or electing taxpayer that does not
obtain a registration number and report
the registration number on its annual
tax return with respect to an applicable
credit property is ineligible to make an
elective payment election to treat any
elective payment amount with respect
to the amount of any credit determined
with respect to that applicable credit
property as a payment of tax. However,
completion of the pre-filing registration
requirements and receipt of a registration
number does not, by itself, mean that the
applicable entity or electing taxpayer
will receive a payment with respect to
the applicable credits determined with
respect to the applicable credit property.
Temp. Reg. §1.6417-5T(b) provides
the following pre-filing registration
requirements.

Bulletin No. 2023–27

First, an applicable entity or electing
taxpayer must complete the pre-filing registration process electronically through an
IRS electronic portal in accordance with
the instructions provided therein, unless
otherwise provided in guidance. If the
election is by a member of a consolidated
group, the member must complete the
pre-filing registration process as a condition of, and prior to, making an elective
payment election. See §1.1502-77 (providing rules regarding the status of the
common parent as agent for its members).
Second, an applicable entity or electing taxpayer must satisfy the registration
requirements and receive a registration
number prior to making an elective payment election on the applicable entity’s
tax return for the taxable year at issue.
Third, an applicable entity or electing
taxpayer is required to obtain a registration number for each applicable credit
property with respect to which an applicable credit will be determined and for
which the applicable entity or electing
taxpayer intends to make an elective payment election.
Finally, an applicable entity or electing taxpayer must provide the specific
information required to be provided as
part of the pre-filing registration process.
The provision of such information, which
includes information about the taxpayer,
about the applicable credits, and about
the applicable credit property, will allow
the IRS to prevent duplication, fraud,
improper payments, or excessive payments under section 6417. For example,
verifying information about the taxpayer
will allow the IRS to mitigate the risk of
fraud or improper payments to entities
that are not applicable entities or electing
taxpayers. Information about the taxpayer’s taxable year will allow the IRS to
ensure that an elective payment election
is timely made on the entity’s annual
tax return. Information about applicable
credit properties, including their address
and coordinates (longitude and latitude),
supporting documentation, beginning of
construction date, and placed in service
date will allow the IRS to mitigate the risk
of duplication, fraud, and improper payments for properties that are not applicable credit properties. Information about
whether an investment tax credit property
was acquired using any Restricted Tax

Bulletin No. 2023–27

Exempt Amounts will allow the IRS to
prevent improper payments.
Temp. Reg. §1.6417-5T(c) provides
information about the required registration number. Temp. Reg. §1.6417-5T(c)
(1) provides that, after an applicable entity
or electing taxpayer completes the pre-filing registration process as provided in
proposed §1.6417-5(b) for the applicable
credit properties with respect to which the
entity intends to make an elective payment
election in the taxable year, the IRS will
review the information provided and will
issue a separate registration number for
each applicable credit property for which
the applicable entity or electing taxpayer
provided sufficient verifiable information,
as provided in guidance.
Temp. Reg. §1.6417-5T(c)(2) provides
that a registration number is valid only for
the taxable year for which it is obtained.
Temp. Reg. §1.6417-5T(c)(3) provides
that, if an elective payment election will be
made with respect to an applicable credit
property for which a registration number
under proposed §1.6417-5 has been previously obtained, the applicable entity
or electing taxpayer will be required to
renew the registration each year in accordance with applicable guidance, including attesting that all the facts previously
provided are still correct or updating any
facts. Temp. Reg. §1.6417-5T(c)(4) provides that, if specified changes occur with
respect to one or more applicable credit
properties for which a registration number
has been previously obtained, an applicable entity or electing taxpayer is required
to amend the registration (or may need to
submit a new registration) to reflect these
new facts. For example, one stakeholder
asked that, if a taxpayer becomes a party
to an internal reorganization under section
368(a) (such as a merger or distribution
in a nonrecognition transaction) during
the election period, the elective payment
election should carry over to the successor
entity. The temporary regulations provide
that if a facility previously registered for
an elective payment election undergoes
a change of ownership (incident to a corporate reorganization or an asset sale)
such that the new owner has a different
employer identification number (EIN)
than the owner who obtained the original
registration, the original owner is required
to amend the original registration to

1115

disassociate its EIN from the credit property and the new owner must submit an
original registration (or if the new owner
previously registered other credit properties, must amend its original registration)
to associate the new owner’s EIN with the
previously registered credit property.
Lastly, Temp. Reg. §1.6417-5T(c)
(5) provides that the applicable entity or
electing taxpayer is required to include
the registration number of the applicable
credit property on their annual tax return
for the taxable year. The IRS will treat
an elective payment election as ineffective with respect to the portion of a credit
determined with respect to an applicable
credit property for which the applicable entity or electing taxpayer does not
include a valid registration number on the
annual tax return.
III. Pre-filing Registration Requirements
and Additional Information under
Section 6418
Section 6418(g)(1) provides that as
a condition of, and prior to, any transfer
of any portion of an eligible credit under
section 6418, the Secretary may require
such information (including, in such form
or manner as is determined appropriate by
the Secretary, such information returns)
or registration as the Secretary deems
necessary for purposes of preventing
duplication, fraud, improper payments, or
excessive payments under this section.
In general, consistent with section
6417, stakeholders requested additional
information about this provision and
requested that the regulations balance the
need to prevent fraud and abuse with the
burden on taxpayers. Stakeholders recommended a registration system that assigns
a transfer number to an eligible taxpayer
that can be used by transferee taxpayers
to claim transferred credits and allows
the IRS to track transfers of eligible
credits. Stakeholders also recommended
that information or registration requirements should be as consistent as possible
across sections 48D(d)(1), 6417(d)(5),
and 6418(g)(1). In order to meet the purpose of section 6418(g)(1), the Treasury
Department and the IRS have determined
that it is necessary to establish a mandatory registration process that is in place
before the end of the 2023 calendar year,

July 3, 2023

which is the first full taxable year during
which a transfer election under section
6418 is available.
Temp. Reg. §1.6418-4T generally
provides rules requiring that eligible taxpayers register before filing the return
on which a transfer election is made and
provide information related to each eligible credit property for which the eligible
taxpayer intends to transfer a specified
credit portion. Temp. Reg. §1.6418-4T(a),
consistent with section 6418(g)(1),
requires that, as a condition of, and prior
to, making an election to transfer a specified credit portion, an eligible taxpayer
satisfy the pre-filing registration requirements in Temp. Reg. §1.6418-4T(b). After
the required pre-filing registration process
is successfully completed, an eligible
taxpayer will receive a unique registration number from the IRS for each registered eligible credit property for which
the eligible taxpayer intends to transfer
a specified credit portion. The Treasury
Department and the IRS intend for this
pre-filling registration process to occur
through an IRS electronic portal (unless
otherwise allowed in guidance). An eligible taxpayer that does not obtain a registration number and report the registration
number on its return with respect to an eligible credit property is ineligible to make
a transfer election. However, completion
of the pre-filing registration requirements
and receipt of a registration number does
not, by itself, mean the eligible taxpayer
is eligible to transfer any specified credit
portion determined with respect to the
eligible credit property. The registration
number also must be reported on the eligible taxpayer’s return.
Temp. Reg. §1.6418-4T(b) provides
the following pre-filing registration
requirements.
First, an eligible taxpayer must complete the pre-filing registration process
electronically through an IRS electronic
portal in accordance with the instructions provided therein, unless otherwise
provided in guidance. If the election is
by a member of a consolidated group,
the member must complete the pre-filing registration process as a condition of,
and prior to, making an elective payment
election. See §1.1502-77 (providing rules
regarding the status of the common parent
as agent for its members).

July 3, 2023

Second, an eligible taxpayer must
satisfy the registration requirements and
receive a registration number prior to
making a transfer election for a specified
credit portion on the eligible taxpayer’s
return for the taxable year at issue.
Third, an eligible taxpayer is required
to obtain a registration number for each
eligible credit property with respect to
which a transfer election of a specified
credit portion is made.
Finally, an eligible taxpayer must provide the specific information required to
be provided as part of the pre-filing registration process. The provision of such
information, which includes information
about the taxpayer, about the eligible credits, and about the eligible credit property,
will allow the IRS to prevent duplication,
fraud, improper payments, or excessive
transfers under section 6418. For example,
verifying information about the taxpayer
will allow the IRS to mitigate the risk of
fraud or improper transfers. Information
about eligible credit properties, including
their address and coordinates (longitude
and latitude), supporting documentation,
beginning of construction date, and placed
in service date will allow the IRS to mitigate the risk of duplication, fraud, and
improper transfers for properties that are
not eligible credit properties.
Temp. Reg. §1.6418-4T(c) provides
rules related to the registration number
that is obtained after the IRS has reviewed
and approved the taxpayer’s submitted
information. First, these rules provide that
a registration number is valid for an eligible taxpayer only for the taxable year for
which it is obtained, and for a transferee
taxpayer’s taxable year in which the specified credit portion is taken into account.
Second, Temp. Reg.§1.6418-4T(c) provides rules for the renewal of a registration number that has been previously
obtained. The eligible taxpayer is required
to renew the registration with respect
to an eligible credit property each year
in accordance with guidance, including
attesting that all the facts are still correct
or updating any facts. Third, the temporary regulations provide that, if facts
change with respect to an eligible credit
property for which a registration number
has been previously obtained, an eligible
taxpayer is required to amend the registration to reflect these new facts. Lastly,

1116

the temporary regulations provide that an
eligible taxpayer is required to include the
registration number of the eligible credit
property on the eligible taxpayer’s return
for the taxable year, as provided in Temp.
Reg. §1.6418-2T(b), for an election to be
effective with respect to any eligible credit
determined with respect to any eligible
credit property. The IRS will treat a transfer election as ineffective with respect to
an eligible credit determined with respect
to an eligible credit property for which the
eligible taxpayer does not include a valid
registration number on its return.
A transferee taxpayer is also required
to report the registration number received
from an eligible taxpayer on its return for
the taxable year that the transferee taxpayer takes the transferred eligible credit
into account.
Applicability Dates
The temporary regulations under
§1.48D-6T apply to taxable years ending
on or after June 21, 2023. The temporary
regulations under §1.48D-6T expire on
June 12, 2026.
The temporary regulations under
§1.6417-5T apply to taxable years ending
on or after June 21, 2023. The temporary
regulations under §1.6417-5T expire on
June 12, 2026.
The temporary regulations under
§1.6418-4T apply to taxable years ending
on or after June 21, 2023. The temporary
regulations under §1.6418-4T expire on
June 12, 2026.
Special Analyses
I. Good Cause
The Administrative Procedure Act (5
U.S.C. Subchapter II) provides an exception to generally applicable rulemaking
requirements when an agency makes a
finding of good cause (and incorporates
the finding and a brief statement of reasons therefor in the rules issued).
The Treasury Department and the IRS
find that good cause exists for making
these temporary regulations immediately
effective without notice and comment.
The pre-filing registration process is critical to the implementation of sections 48D,
6417, and 6418. As expressly authorized

Bulletin No. 2023–27

by statute to prevent duplication, fraud,
and improper or excessive payments, the
temporary regulations condition elective
payment and transferability on pre-registration with the IRS.1 Section 48D
applies to property placed in service after
December 31, 2022, and sections 6417
and 6418 each apply to taxable years
beginning after that date. This means that
filers will be able take advantage of these
provisions for their 2023 tax years.
The Treasury Department and the IRS
believe it is important to immediately put
into effect these pre-registration requirements. The pre-registration process collects critical information to minimize
fraudulent elections and prevent duplication and improper or excessive payments
by ensuring basic eligibility requirements
for eligible credits before the election
is made. Validating certain information
before the annual tax return process will
result in more accurate review of the
veracity of the information and fewer
duplicate, fraudulent, improper, or excessive transfers or payments. In addition,
the pre-filing registration requirement is
expected to reduce the need for recovering erroneous payments and adjusting
return positions via costly, burdensome,
and inefficient examination, appeals, and
litigation processes (which, in the case of
section 6418, could potentially be needed
with respect to both parties to the credit
transfer transaction). Immediate implementation of these safeguards is important
because it is anticipated that there will be
an immediate and significant increase in
utilization of the tax incentives described
in sections 48D(d), 6417, and 6418 by
entities that have not historically had
return-filing obligations, increasing the
risk of the duplicative, fraudulent, and
improper or excessive payments that the
pre-registration process is intended to
mitigate.
The Treasury Department and the IRS
find that good cause exists for making these
temporary regulations effective without
notice and comment because failure to do
so would be contrary to the public interest.

Without these temporary regulations, the
IRS may not be able to timely and effectively develop and implement a pre-filing
registration system. Lack of a pre-registration process would create risk for the
public fisc by increasing the likelihood of
duplicate, fraudulent, improper, or excessive payments or transfers. The pre-filing
registration system also must be developed sufficiently in advance of the filing
season for taxpayers to have time to gather
the necessary information and complete
the registration process and for the IRS
to be able to review the submitted information and issue registration numbers.
Failing to pre-register taxpayers who have
never before filed a tax return with the IRS
could significantly delay the processing of
those taxpayers’ returns because procedures to allow them to file an annual tax
return would need to be taken during the
middle of filing season. Such delay would
harm taxpayers and also potentially result
in the IRS owing interest on any refunds
due, further damaging the public fisc.
Additionally, it is in the public interest
to have certainly regarding the requirements for pre-registration as far before the
2023 filing season as possible to ensure
the ability to timely and accurately fulfill
the requirements. This certainty is particularly crucial for those filers already
or soon to be engaged in an activity that
would qualify them to make an elective
payment or transfer election. Taxpayer
certainty is also especially important for
particular populations of affected taxpayers such as entities that have not historically had return-filing obligations because
they may need significant time to review
and understand the underlying tax law and
the pre-filing registration requirements.
The Treasury Department and the IRS
also find that good cause exists for making
these temporary regulations immediately
effective because it would be impracticable to comply with the notice and
comments process. The processes established in sections 48D, 6417, and 6418
are novel and complex. Determining how
these processes interact with established

tax procedures is complicated and in
some aspects very difficult to reconcile.
The elections under sections 6417 and
6418 apply to numerous credits, each of
which contain different substantive eligibility and other requirements, which had
to be separately analyzed to understand
what information should be collected as
part of the pre-filing registration process.
Developing a previously nonexistent registration process, new filing portal, and
determining the necessary elements to
protect the fisc has been time consuming.
The Treasury Department and the IRS
have moved quickly to understand these
complex Code sections and determine
technological elements needed to create
the pre-filing registration process and
portal.
To accomplish the purpose of the
pre-filing registration process, the electronic portal must open by Fall 2023.
The Treasury Department and the IRS
understand the need to carefully consider
all public comments and provide robust
responses to all relevant comments. The
few months available between the publication of proposed regulations and the opening of the electronic portal is insufficient
time to receive, review, and meaningfully
respond to public comments. Furthermore,
there would not be sufficient time after all
comments are considered to then make
corresponding changes to the electronic
portal, which would require technological
development and user testing.
Comments are being solicited in the
cross-referenced notices of proposed
rulemaking that are in the Proposed
Rules section in this issue of the Federal
Register. Any comments will be considered before final regulations are issued.
II. Paperwork Reduction Act
The collection of information contained in these temporary regulations
has been submitted to the Office of
Management and Budget for review in
accordance with the Paperwork Reduction
Act. Commenters are strongly encouraged

Sections 48D(d)(2)(E) and 6417(d)(5) authorize the Secretary to require such information or registration as the Secretary deems necessary or appropriate for purposes of preventing duplication, fraud, improper payments, or excessive payments as a condition of, and prior to, any amount being treated as a payment made by or to the taxpayer. Section 6418(g)(1) states that,
as a condition of, and prior to, any transfer of any portion of an eligible credit pursuant to section 6418(a), the Secretary may require such information (including, in such form or manner as
is determined appropriate by the Secretary, such information returns) or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or
excessive payments under section 6418.
1

Bulletin No. 2023–27

1117

July 3, 2023

to submit public comments electronically. Submit electronic submissions for
the proposed information collection to
the IRS via email at pra.comments@irs.
gov (indicate REG-101607-23 on the
Subject line). Comments on the collection of information should be received by
August 14, 2023. Comments are specifically requested concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the IRS,
including whether the information will
have practical utility;
The accuracy of the estimated burden
associated with the proposed collection of
information (see below);
How the quality, utility, and clarity of
the information to be collected may be
enhanced;
How the burden of complying with
the proposed collection of information
may be minimized, including through the
application of automated collection techniques or other forms of information technology; and
Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
The collections of information in
these temporary regulations contain
reporting and recordkeeping requirements. The recordkeeping requirements
are considered general tax records under
Section 1.6001-1(e). These records are
required for IRS to validate that taxpayers
have met the regulatory requirements and
are entitled to transfer the credits. For PRA
purposes, general tax records are already
approved by OMB under 1545-0047 for
tax-exempt organizations and government
entities; under 1545-0074 for individuals;
and under 1545-0123 for business entities.
These reporting requirements include a
requirement to register with IRS to make
the elective payment election or the transfer election in §§1.48D-6T, 1.6417-5T,
1.6418-4T. This pre-filing registration
requirement is being submitted to OMB
and will be processed in accordance with
the PRA as required by 5 CFR 1320.10.
This collection of information is necessary
to prevent duplication, fraud, improper
payments, or excessive payments under
sections 48D, 6417 and 6418 of the Code.
The IRS is seeking a new OMB control

July 3, 2023

number (1545-NEW) for the pre-registration requirements. The respondents are:
(1) Under section 48D, taxpayers eligible to elect the elective payment election
of the advanced manufacturing investment credit.
Estimated total annual reporting burden is 271 hours.
Estimated average annual burden per
respondent is 5.41 hours.
Estimated number of respondents is 50.
(2) Under section 6417, tax-exempt
organizations, State and local governments, Indian tribal governments, Alaska
Native Corporations, the Tennessee Valley
Authority, rural electric cooperatives, and
certain taxpayers eligible to elect the elective payment of applicable credits in a taxable year.
Estimated total annual reporting burden is 126,200 hours.
Estimated average annual burden per
respondent is 6.31 hours.
Estimated number of respondents is
20,000.
(3) Under section 6418, eligible taxpayers that elect to transfer eligible credits
in a taxable year.
Estimated total annual reporting burden is 308,000 hours.
Estimated average annual burden per
respondent is 6.16 hours.
Estimated number of respondents is
50,000.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it displays a valid control number assigned by
the Office of Management and Budget.
Books or records relating to a collection
of information must be retained if their
contents may become material in the
administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by section 6103. The IRS anticipates
opening the electronic portal for pre-filing
registration in Fall 2023, after approval
of the collection of information under the
Paperwork Reduction Act.
III. Regulatory Flexibility Act
For applicability of the Regulatory
Flexibility Act, please refer to the cross-reference notices of proposed rulemaking
(REG-105595-23, REG-101607-23, and

1118

REG-101610-23) published elsewhere in
this issue of the Federal Register.
IV. Section 7805(f)
Pursuant to section 7805(f), these temporary regulations will be submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
their impact on small business.
V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandate
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal mandate
that may result in expenditures in any one
year by a state, local, or tribal government,
in the aggregate, or by the private sector,
of $100 million in 1995 dollars (updated
annually for inflation). These temporary
regulations do not include any Federal
mandate that may result in expenditures by
state, local, or tribal governments, or by the
private sector in excess of that threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on state and local governments, and is not required by statute,
or preempts state law, unless the agency
meets the consultation and funding
requirements of section 6 of the Executive
Order. These temporary regulations do
not have federalism implications and do
not impose substantial, direct compliance
costs on state and local governments or
preempt state law within the meaning of
the Executive Order.
VII. Executive Order 12866
Pursuant to the Memorandum
of Agreement, Review of Treasury
Regulations under Executive Order 12866
(June 9, 2023), tax regulatory actions
issued by the IRS are not subject to the
requirements of section 6 of Executive
Order 12866, as amended. Therefore,
a regulatory impact assessment is not
required.

Bulletin No. 2023–27

VIII. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs designated this rule as a major rule as defined
by 5 U.S.C. 804(2). For good cause pursuant to 5 U.S.C. 808(2), see part I of this
Special Analyses section.
Drafting Information
The principal author of this temporary regulation is Lani M. Sinfield,
Office of the Associate Chief Counsel
(Passthroughs and Special Industries),
IRS. However, other personnel from the
Treasury Department and the IRS participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Amendments to the Regulations
Accordingly, the Treasury Department
and the IRS amend 26 CFR part 1 as
follows:
PART 1—INCOME TAXES
Paragraph. 1. The authority citation
for part 1 is amended by adding the following entries in numerical order to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
*****
Section 1.48D-6T also issued under 26
U.S.C. 48D(d)(2)(E) and (6) * * *
*****
Section 1.6417-5T also issued under 26
U.S.C. 6417(d)(5) and (h) * * *
Section 1.6418-4T also issued under 26
U.S.C. 6418(g)(1) and (h)* * *
*****
Par. 2. Section 1.48D-6T is added to
read as follows:
§1.48D-6T Elective payment election.
(a) [Reserved]
(b) Pre-filing registration required—
(1) In general. Pre-filing registration by
any taxpayer (including a partnership
or an S corporation) in accordance with

Bulletin No. 2023–27

this paragraph (b) is a condition that
must be successfully completed prior
to making an elective payment election
under section 48D(d)(1) and this section
with respect to qualified property placed
in service by the taxpayer as part of an
advanced manufacturing facility of an
eligible taxpayer. An elective payment
election will not be effective with respect
to the section 48D credit determined with
respect to any such qualified property
placed in service by any taxpayer unless
the taxpayer received a valid registration number for the taxpayer’s qualified
investment in the advanced manufacturing facility of an eligible taxpayer in
accordance with this paragraph (b) and
provided the registration number for each
qualified investment in each advanced
manufacturing facility on its Form 3800,
General Business Credit, attached to the
tax return in accordance with guidance.
For purposes of this section, the term
guidance means guidance published in
the Federal Register or Internal Revenue
Bulletin, as well as administrative guidance such as forms, instructions, publications, or other guidance on the IRS.
gov website. See §§601.601 and 601.602
of this chapter. However, completion of
the pre-filing registration requirements
and receipt of a registration number does
not, by itself, mean the taxpayer is eligible to receive a payment with respect to
any section 48D credit determined with
respect to the qualified property.
(2) Manner of registration. Unless otherwise provided in guidance, a taxpayer
must complete the pre-filing registration
process electronically through the IRS
electronic portal and in accordance with
the instructions provided therein.
(3) Members of a consolidated group.
A member of a consolidated group is
required to complete pre-filing registration
as a condition of, and prior to, making an
elective payment election. See §1.1502-77
(providing rules regarding the status of the
common parent as agent for its members).
(4) Timing of pre-filing registration. A
taxpayer must satisfy the pre-filing registration requirements of this paragraph (b)
and receive a registration number under
paragraph (b)(6) of this section prior to
making any elective payment election
under this section on the taxpayer’s tax
return for the taxable year at issue.

1119

(5) Each qualified investment in an
advanced manufacturing facility must
have its own registration number. A taxpayer must obtain a registration number for each qualified investment in an
advanced manufacturing facility of an
eligible taxpayer with respect to which an
elective payment election is made.
(6) Information required to complete
the pre-filing registration process. Unless
modified in future guidance, a taxpayer
must provide the following information to
the IRS to complete the pre-filing registration process:
(i) The taxpayer’s general information, including its name, address, taxpayer
identification number, and type of legal
entity;
(ii) Any additional information required
by the IRS electronic portal;
(iii) The taxpayer’s taxable year, as
determined under section 441 of the Code;
(iv) The type of annual return(s) normally filed by the taxpayer with the IRS;
(v) A list of each qualified investment
in an advanced manufacturing facility that
the taxpayer intends to use to determine
a section 48D credit for which the taxpayer intends to make an elective payment
election;
(vi) For each qualified investment in
an advanced manufacturing facility listed
in paragraph (b)(5)(v) of this section, any
further information required by the IRS
electronic portal, such as—
(A) The type of qualified investment in
the advanced manufacturing facility;
(B) Physical location (that is, address
and coordinates (longitude and latitude) of
the advanced manufacturing facility);
(C) Any supporting documentation
relating to the construction, reconstruction or acquisition of the advanced manufacturing facility (such as, State and
local government permits to operate the
advanced manufacturing facility, certifications, and evidence of ownership that
ties to the land deed, lease, or other documented right to use and access any land
upon which the advanced manufacturing
facility is constructed or housed);
(D) The beginning of construction date
and the placed in service date of any qualified property that is part of the advanced
manufacturing facility;
(E) The source of funds the taxpayer
used to acquire the qualified property with

July 3, 2023

respect to which the qualified investment
was made; and
(F) Any other information that the taxpayer or entity believes will help the IRS
evaluate the registration request;
(vii) The name of a contact person
for the taxpayer. The contact person is
the person whom the IRS may contact if
there is an issue with the registration. The
contact person must either possess legal
authority to bind the taxpayer or must provide a properly executed power of attorney on Form 2848, Power of Attorney and
Declaration of Representative;
(viii) A penalties of perjury statement,
effective for all information submitted
as a complete application, and signed by
a person with personal knowledge of the
relevant facts that is authorized to bind the
registrant; and
(ix) Any other information the IRS
deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this
section that is provided in guidance.
(7) Registration number—(i) In general. The IRS will review the information
provided and will issue a separate registration number for each qualified investment
in an advanced manufacturing facility of
an eligible taxpayer for which the taxpayer making the registration provided
sufficient verifiable information.
(ii) Registration number is only valid
for one year. A registration number is
valid only with respect to the taxpayer that
obtained the registration number under
this section and only for the taxable year
for which it is obtained.
(iii) Renewing registration numbers.
If an elective payment election will be
made with respect to any section 48D
credit determined with respect to a qualified investment in an advanced manufacturing facility for a taxable year after a
registration number under this section has
been obtained, the taxpayer must renew
the registration for that subsequent year
in accordance with applicable guidance,
including attesting that all the facts previously provided are still correct or updating
any facts.
(iv) Amendment of previously submitted registration information if a change
occurs before the registration number is
used. As provided in instructions to the
pre-filing registration portal, if specified

July 3, 2023

changes occur with respect to a qualified
investment in an advanced manufacturing
facility for which a registration number
has been previously obtained, a taxpayer
must amend the registration (or may need
to submit a new registration) to reflect
these new facts. For example, if an eligible
taxpayer that is the owner of an advanced
manufacturing facility previously registered for an elective payment election
for a section 48D credit determined with
respect to that advanced manufacturing
facility and the advanced manufacturing
facility undergoes a change of ownership
(incident to a corporate reorganization or
an asset sale) such that the new owner has
a different employer identification number
(EIN) than the owner who obtained the
original registration, the original owner of
the advanced manufacturing facility must
amend the original registration to disassociate its EIN from the advanced manufacturing facility and the new owner must
submit separately an original registration
(or if the new owner previously registered
other qualified investments or advanced
manufacturing facilities, must amend its
original registration) to associate the new
owner’s EIN with the previously registered advanced manufacturing facility.
(v) Registration number is required to
be reported on the return for the taxable
year of the elective payment election. The
taxpayer must include the registration
number of the qualified investment in the
advanced manufacturing facility on the
taxpayer’s return as provided in paragraph
(b) of this section for the taxable year. The
IRS will treat an elective payment election as ineffective with respect to a section
48D credit determined with respect to a
qualified investment in an advanced manufacturing facility for which the taxpayer
does not include a valid registration number on the annual return.
(c) – (i) [Reserved]
(j) Applicability date for pre-filing registration requirements. The requirements
of paragraph (b) of this section apply
to property placed in service on or after
December 31, 2022, and during a taxable
year ending on or after June 21, 2023.
(k) Expiration date. The applicability
of paragraph (b) of this section expires on
June 12, 2026.
Par. 3. Section 1.6417-5T is added to
read as follows:

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§1.6417-5T Additional information and
registration.
(a) Pre-filing registration and election.
An applicable entity or electing taxpayer
is required to satisfy the pre-filing registration requirements in paragraph (b) of
this section as a condition of, and prior
to, making an elective payment election.
An applicable entity or electing taxpayer
must use the pre-filing registration process to register itself as intending to make
the elective payment election, to list all
applicable credits it intends to claim, and
to list each applicable credit property that
contributed to the determination of such
credits as part of the pre-filing submission (or amended submission). An applicable entity or electing taxpayer that does
not obtain a registration number under
paragraph (c)(1) of this section or report
the registration number on its annual tax
return, as defined in §1.6417-1(b), pursuant to paragraph (c)(5) of this section
with respect to an otherwise applicable
credit property, is ineligible to receive any
elective payment amount with respect to
the amount of any credit determined with
respect to that applicable credit property.
However, completion of the pre-filing registration requirements and receipt of a registration number does not, by itself, mean
the applicable entity or electing taxpayer is
eligible to receive a payment with respect
to the applicable credits determined with
respect to the applicable credit property.
(b) Pre-filing registration requirements—(1) Manner of pre-filing registration. Unless otherwise provided in
guidance, an applicable entity or electing
taxpayer must complete the pre-filing registration process electronically through the
IRS electronic portal and in accordance
with the instructions provided therein.
(2) Pre-filing registration and election
for members of a consolidated group.
A member of a consolidated group is
required to complete pre-filing registration
as a condition of, and prior to, making an
elective payment election. See §1.1502-77
(providing rules regarding the status of the
common parent as agent for its members).
(3) Timing of pre-filing registration. An
applicable entity or electing taxpayer must
satisfy the pre-filing registration requirements of this paragraph (b) and receive a
registration number under paragraph (c)

Bulletin No. 2023–27

of this section prior to making an elective
payment election under §1.6417-2(b) on
the applicable entity’s or electing taxpayer’s annual tax return for the taxable year
at issue.
(4) Each applicable credit property
must have its own registration number.
An applicable entity or electing taxpayer
must obtain a registration number for each
applicable credit property with respect to
which it intends to make an elective payment election.
(5) Information required to complete
the pre-filing registration process. Unless
modified in future guidance, an applicable entity or electing taxpayer must
provide the following information to the
IRS to complete the pre-filing registration
process:
(i) The applicable entity’s or electing
taxpayer’s general information, including
its name, address, taxpayer identification
number, and type of legal entity.
(ii) Any additional information
required by the IRS electronic portal, such
as information regarding the taxpayer’s
exempt status under section 501(a) of the
Code; that the applicable entity is a political subdivision of a State, the District of
Columbia, an Indian Tribal government,
or a U.S territory; or that the applicable
entity is an agency or instrumentality of a
State, the District of Columbia, an Indian
Tribal government, or a U.S. territory.
(iii) The taxpayer’s taxable year, as
determined under section 441 of the Code.
(iv) The type of annual tax return(s)
normally filed by the applicable entity or
electing taxpayer, or that the applicable
entity or electing taxpayer does not normally file an annual tax return with the
IRS.
(v) The type of applicable credit(s) for
which the applicable entity or electing
taxpayer intends to make an elective payment election.
(vi) For each applicable credit, each
applicable credit property that the applicable entity or electing taxpayer intends
to use to determine the credit for which
the applicable entity or electing taxpayer
intends to make an elective payment
election.
(vii) For each applicable credit property listed in paragraph (b)(4)(vi) of this
section, any further information required
by the IRS electronic portal, such as—

Bulletin No. 2023–27

(A) The type of applicable credit
property;
(B) Physical location (that is, address
and coordinates (longitude and latitude) of
the applicable credit property);
(C) Any supporting documentation
relating to the construction or acquisition
of the applicable credit property (such as
State, District of Columbia, Indian Tribal,
U.S. territorial, or local government permits to operate the applicable credit property; certifications; evidence of ownership
that ties to a land deed, lease, or other
documented right to use and access any
land or facility upon which the applicable
credit property is constructed or housed;
U.S. Coast Guard registration numbers
for offshore wind vessels; and the vehicle
identification number of an eligible clean
vehicle with respect to which a section
45W credit is determined);
(D) The beginning of construction date
and the placed in service date of the applicable credit property;
(E) If an investment-related credit
property (as defined §1.6417-2(c)(3)),
the source of funds the taxpayer used to
acquire the property; and
(F) Any other information that the
applicable entity or electing taxpayer
believes will help the IRS evaluate the
registration request.
(viii) The name of a contact person for
the applicable entity or electing taxpayer.
The contact person is the person whom the
IRS may contact if there is an issue with
the registration. The contact person must
either possess legal authority to bind the
applicable entity or electing taxpayer or
must provide a properly executed power of
attorney on Form 2848, Power of Attorney
and Declaration of Representative.
(ix) A penalties of perjury statement,
effective for all information submitted
as a complete application, and signed by
a person with personal knowledge of the
relevant facts that is authorized to bind the
registrant.
(x) Any other information the IRS
deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this
section that is provided in guidance.
(c) Registration number—(1) In general. The IRS will review the information
provided and will issue a separate registration number for each applicable credit

1121

property for which the applicable entity or
electing taxpayer provided sufficient verifiable information.
(2) Registration number is only valid
for one taxable year. A registration
number is valid only with respect to the
applicable entity or electing taxpayer that
obtained the registration number under
this section and only for the taxable year
for which it is obtained.
(3) Renewing registration numbers.
If an elective payment election will be
made with respect to an applicable credit
property for a taxable year after a registration number under this section has been
obtained, the applicable entity or electing
taxpayer must renew the registration for
that subsequent taxable year in accordance
with applicable guidance, including attesting that all the facts previously provided
are still correct or updating any facts.
(4) Amendment of previously submitted registration information if a change
occurs before the registration number is
used. As provided in instructions to the
pre-filing registration portal, if specified
changes occur with respect to one or more
applicable credit properties for which a
registration number has been previously
obtained but not yet used, an applicable
entity or electing taxpayer must amend the
registration (or may need to submit a new
registration) to reflect these new facts. For
example, if the owner of a facility previously registered for an elective payment
election for applicable credits determined
with respect to that facility and the facility
undergoes a change of ownership (incident to a corporate reorganization or an
asset sale) such that the new owner has a
different employer identification number
(EIN) than the owner who obtained the
original registration, the original owner of
the facility must amend the original registration to disassociate its EIN from the
applicable credit property and the new
owner must submit separately an original
registration (or if the new owner previously registered other credit properties,
must amend its original registration) to
associate the new owner’s EIN with the
previously registered applicable credit
property.
(5) Registration number is required to
be reported on the return for the taxable
year of the elective payment election. The
applicable entity or electing taxpayer must

July 3, 2023

include the registration number of the
applicable credit property on its annual
tax return as provided in §1.6417-2(b)
for the taxable year. The IRS will treat an
elective payment election as ineffective
with respect to an applicable credit determined with respect to an applicable credit
property for which the applicable entity
or electing taxpayer does not include a
valid registration number on the annual
tax return.
(d) Applicability date. This section
applies to taxable years ending on or after
June 21, 2023.
(e) Expiration date. The applicability
of this section expires on June 12, 2026.
Par. 4. Section 1.6418-4T is added to
read as follows:
§1.6418-4T Additional information and
registration.
(a) Pre-filing registration and election.
As a condition of, and prior to, any specified credit portion being transferred by an
eligible taxpayer to a transferee taxpayer
pursuant to an election under §1.6418-2,
or a specified credit portion being transferred by a partnership or S corporation
pursuant to §1.6418-3, the eligible taxpayer is required to satisfy the pre-filing
registration requirements in paragraph
(b) of this section. An eligible taxpayer
that does not obtain a registration number under paragraph (c)(1) of this section, and report the registration number
on its return pursuant to paragraph (c)
(5) of this section, is ineligible to make a
transfer election for a specified credit portion under §1.6418-2 or §1.6418-3, with
respect to the eligible credit determined
with respect to the specific eligible credit
property for which the eligible taxpayer
has failed to obtain and report a registration number. However, completion of
the pre-filing registration requirements
and receipt of a registration number does
not, by itself, mean the eligible taxpayer
is eligible to transfer any specified credit
portion determined with respect to the eligible credit property.
(b) Pre-filing registration requirements—(1) Manner of pre-filing registration. Unless otherwise provided in
guidance, eligible taxpayers must complete the pre-filing registration process
electronically through an IRS electronic

July 3, 2023

portal and in accordance with the instructions provided therein.
(2) Pre-filing registration and election
for members of a consolidated group.
A member of a consolidated group is
required to complete pre-filing registration to transfer any eligible credit determined with respect to the member. See
§1.1502-77 (providing rules regarding the
status of the common parent as agent for
its members).
(3) Timing of pre-filing registration.
An eligible taxpayer must satisfy the
pre-filing registration requirements of this
paragraph (b) and receive a registration
number under paragraph (c) of this section
prior to making a transfer election under
§1.6418-2 or §1.6418-3 for a specified
credit portion on the taxpayer’s return for
the taxable year at issue.
(4) Each eligible credit property must
have its own registration number. An eligible taxpayer must obtain a registration
number for each eligible credit property
with respect to which a transfer election
of a specified credit portion is made.
(5) Information required to complete
the pre-filing registration process. Unless
modified in future guidance, an eligible
taxpayer is required to provide the following information to the IRS to complete the
pre-filing registration process:
(i) The eligible taxpayer’s general
information, including its name, address,
taxpayer identification number, and type
of legal entity;
(ii) Any additional information
required by the IRS electronic portal, such
as information establishing that the entity
is an eligible taxpayer;
(iii) The taxpayer’s taxable year, as
determined under section 441;
(iv) The type of annual tax return(s)
normally filed by the eligible taxpayer,
or that the eligible taxpayer does not normally file an annual tax return with the
IRS;
(v) The type of eligible credit(s) for
which the eligible taxpayer intends to
make a transfer election;
(vi) Each eligible credit property that
the eligible taxpayer intends to use to
determine a specified credit portion for
which the eligible taxpayer intends to
make a transfer election;
(vii) For each eligible credit property listed in paragraph (b)(4)(vi) of this

1122

section, any further information required
by the IRS electronic portal, such as—
(A) The type of eligible credit property;
(B) Physical location (that is, address
and coordinates (longitude and latitude) of
the eligible credit property);
(C) Any supporting documentation
relating to the construction or acquisition
of the eligible credit property (such as
State, Indian Tribal, or local government
permits to operate the eligible credit property, certifications, evidence of ownership
that ties to a land deed, lease, or other documented right to use and access any land
or facility upon which the eligible credit
property is constructed or housed, and
U.S. Coast Guard registration numbers for
offshore wind vessels);
(D) The beginning of construction
date, and the placed in service date of the
eligible credit property; and
(E) Any other information that the eligible taxpayer believes will help the IRS
evaluate the registration request;
(viii) The name of a contact person for
the eligible taxpayer. The contact person
is the person whom the IRS may contact if
there is an issue with the registration. The
contact person must either possess legal
authority to bind the eligible taxpayer, or
must provide a properly executed power of
attorney on Form 2848, Power of Attorney
and Declaration of Representative;
(ix) A penalties of perjury statement,
effective for all information submitted
as a complete application, and signed by
a person with personal knowledge of the
relevant facts that is authorized to bind the
registrant; and
(x) Any other information the IRS
deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this
section that is provided in guidance.
(c) Registration number—(1) In general. The IRS will review the registration
information provided and will issue a separate registration number for each eligible credit property for which the eligible
taxpayer provided sufficient verifiable
information.
(2) Registration number is only valid
for one taxable year. A registration number is valid to an eligible taxpayer only
for the taxable year in which the credit is
determined for the eligible credit property
for which the registration is completed,

Bulletin No. 2023–27

and for a transferee taxpayer’s taxable
year in which the eligible credit is taken
into account under §1.6418-2(f).
(3) Renewing registration numbers. If
an election to transfer an eligible credit
will be made with respect to an eligible
credit property for a taxable year after a
registration number under this section has
been obtained, the eligible taxpayer must
renew the registration for that subsequent
taxable year in accordance with applicable
guidance, including attesting that all the
facts previously provided are still correct
or updating any facts.
(4) Amendment of previously submitted registration information if a change
occurs before the registration number
is used. As provided in instructions to
the pre-filing registration portal, if specified changes occur with respect to one
or more applicable credit properties for
which a registration number has been
previously obtained but not yet used, an
eligible taxpayer must amend the registration (or may need to submit a new
registration) to reflect these new facts.
For example, if the owner of a facility
previously registered for a transfer election under §1.6418-2 or §1.6418-3 for
eligible credits determined with respect
to that facility and the facility undergoes

Bulletin No. 2023–27

a change of ownership (incident to a corporate reorganization or an asset sale)
such that the new owner has a different
employer identification number (EIN)
than the owner who obtained the original registration, the original owner of the
facility must amend the original registration to disassociate its EIN from the eligible credit property and the new owner
must submit separately an original registration (or if the new owner previously
registered other credit properties, must
amend its original registration) to associate the new owner’s EIN with the previously registered eligible credit property.
(5) Reporting of registration number
by an eligible taxpayer and a transferee
taxpayer—(i) Eligible taxpayer reporting.
As part of making a valid transfer election
under §1.6418-2 or §1.6418-3, an eligible taxpayer must include the registration
number of the eligible credit property on
the eligible taxpayer’s return (as provided
in §1.6418-2(b) or §1.6418-3(d)) for the
taxable year the specified credit portion
was determined. The IRS will treat an
election as ineffective if the eligible taxpayer does not include a valid registration
number on the return.
(ii) Transferee taxpayer reporting.
A transferee taxpayer must report the

1123

registration number received (as part
of the transfer election statement as
described in §1.6418-2(b) or otherwise)
from a transferor taxpayer on the Form
3800, General Business Credit, as part
of the return for the taxable year that the
transferee taxpayer takes the transferred
specified credit portion into account. The
specified credit portion will be disallowed
to the transferee taxpayer if the transferee
taxpayer does not include the registration
number on the return.
(d) Applicability date. This section
applies to taxable years ending on or after
June 21, 2023.
(e) Expiration date. The applicability
of this section expires on June 12, 2026.
Douglas W. O’Donnell,
Deputy Commissioner for Services
and Enforcement.
Approved: June 5, 2023.
Lily Batchelder,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register June 14,
2023, 11:15 a.m., and published in the issue of the
Federal Register for June 21, 2023, ** FR *****)

July 3, 2023

Part III
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates

under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that
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.
Notice 2007-81, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
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 Notice
2007-81, the monthly corporate bond
yield curve derived from May 2023 data
is in Table 2023-5 at the end of this notice.

Notice 2023-48
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

Applicable Month
June 2023

The spot first, second, and third segment
rates for the month of May 2023 are,
respectively, 4.91, 5.15, and 5.34.
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. 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 2022 and 2023 were
published in Notice 2021-54, 2021-41
I.R.B. 457, and Notice 2022-40, 2022-40
I.R.B. 266, respectively. The applicable
minimum and maximum percentages are
95% and 105% for a plan year beginning
in 2022 or 2023.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for June
2023 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
3.03
4.11

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 June
2023, adjusted to be within the applicable
minimum and maximum percentages of

Third Segment
4.27

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

2022

June 2023

4.75

5.18

5.92

2023

June 2023

4.75

5.00

5.74

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

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)).
1

July 3, 2023

1124

Bulletin No. 2023–27

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 May 2023 is 3.86 percent.
The Service determined this rate as the
average of the daily determinations of
yield on the 30-year Treasury bond maturing in February 2053 determined each day
through May 10, 2023 and the yield on the
30-year Treasury bond maturing in May

2053 determined each day for the balance
of the month. For plan years beginning in
June 2023, 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:

For Plan Years Beginning In

Treasury Weighted Average Rates
30-Year Treasury Weighted Average

Permissible Range 90% to 105%

June 2023

2.67

2.40 to 2.80

under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Notice 2007-81 provides guidelines for determining the minimum

present value segment rates. Pursuant to
that notice, the minimum present value
segment rates determined for May 2023
are as follows:

MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates

Month
May 2023

Minimum Present Value Segment Rates
First Segment
Second Segment
4.91
5.15

DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of Associate

Bulletin No. 2023–27

Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development

1125

Third Segment
5.34

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 calls).

July 3, 2023

Table 2023-5
Monthly Yield Curve for May 2023
Derived from May 2023 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
5.47
5.26
5.08
4.93
4.83
4.76
4.71
4.69
4.69
4.70
4.72
4.75
4.79
4.83
4.88
4.92
4.97
5.01
5.05
5.09
5.12
5.15
5.18
5.21
5.23
5.25
5.26
5.28
5.29
5.30
5.31
5.31
5.32
5.32
5.32
5.33
5.33
5.33
5.33
5.33

July 3, 2023

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
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.33
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.34
5.35
5.35
5.35
5.35
5.35
5.35

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
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.35
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36

1126

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
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36

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
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36
5.36

Bulletin No. 2023–27

Part IV
Notice of Proposed
Rulemaking
Section 6417 Elective
Payment of Applicable
Credits
REG-101607-23
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking and notice of public hearing.
SUMMARY: This document contains
proposed regulations concerning the election under the Inflation Reduction Act of
2022 to treat the amount of certain tax
credits as a payment of Federal income
tax. The proposed regulations describe
rules for the elective payment of these
credit amounts in a taxable year, including definitions and special rules applicable to partnerships and S corporations
and regarding repayment of excessive
payments. In addition, the proposed regulations describe rules related to an IRS
pre-filing registration process that would
be required. These proposed regulations
affect tax-exempt organizations, State and
local governments, Indian tribal governments, Alaska Native Corporations, the
Tennessee Valley Authority, rural electric
cooperatives, and, in the case of three of
these credits, certain taxpayers eligible
to elect the elective payment of credit
amounts in a taxable year. This document
also provides notice of a public hearing on
the proposed regulations.
DATES: Written or electronic comments
must be received by August 14, 2023. The
public hearing on these proposed regulations is scheduled to be held on August
21, 2023, at 10 a.m. ET. Requests to speak
and outlines of topics to be discussed
at the public hearing must be received
by August 14, 2023. If no outlines are
received by August 14, 2023, the public
hearing will be cancelled. Requests to
attend the public hearing must be received

Bulletin No. 2023–27

by 5 p.m. ET on August 17, 2023. The
public hearing will be made accessible to
people with disabilities. Requests for special assistance during the hearing must be
received by August 16, 2023.
ADDRESSES: Stakeholders are strongly
encouraged to submit public comments
electronically. Submit electronic submissions via the Federal eRulemaking Portal
at https://www.regulations.gov (indicate
IRS and REG-101607-23) by following
the online instructions for submitting
comments. 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, whether
electronically or on paper, to the IRS’s
public docket. Send paper submissions
to: CC:PA:LPD:PR (REG-101607-23),
Room 5203, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Jeremy Milton at (202) 3175665 and James Holmes at (202) 3175114 (not toll-free numbers); concerning
submissions of comments or the public
hearing, Vivian Hayes at (202) 317–6901
(not a toll-free number) or by email to
publichearings@irs.gov (preferred).
SUPPLEMENTARY INFORMATION:
Background
Section 6417 was added to the Internal
Revenue Code (Code) on August 16,
2022, by section 13801(a) of Public
Law 117-169, 136 Stat. 1818, 2003,
commonly referred to as the Inflation
Reduction Act of 2022 (IRA). Section
6417 allows “applicable entities” (including tax-exempt organizations, State and
local governments, Indian tribal governments, Alaska Native Corporations, the
Tennessee Valley Authority, and rural
electric cooperatives) to make an election
to treat an applicable credit determined
with respect to such entity as making a

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payment against the tax imposed by subtitle A of the Code (subtitle A), for the taxable year with respect to which such credit
was determined, equal to the amount
of such credit. Section 6417 also allows
certain taxpayers to elect to be treated as
applicable entities for limited purposes,
as described in part III of this background
section. Section 6417 also provides special rules relating to partnerships and
S corporations and directs the Secretary of
the Treasury or her delegate (Secretary) to
provide rules for making elections under
section 6417 and to require information
or registration necessary for purposes of
preventing duplication, fraud, improper
payments, or excessive payments under
section 6417. Section 13801(g) of the
IRA provides that section 6417 applies to
taxable years beginning after December
31, 2022. This document contains proposed regulations that would amend the
Income Tax Regulations (26 CFR part 1)
and the Procedure and Administration
Regulations (part 301) to implement the
statutory provisions of section 6417.
In the Rules and Regulations section
of this issue of the Federal Register,
the Treasury Department and the IRS
are issuing temporary regulations under
§1.6417-5T that implement the pre-filing
registration process described in proposed
§1.6417-5 of the proposed regulations.
The temporary regulations require applicable entities that want to elect the elective payment of applicable credit amounts
to register with the IRS through an IRS
electronic portal in advance of the applicable entity filing the return on which the
election under section 6417 is made.
I. Overview of Section 6417
Section 6417(a) provides that, in the
case of an applicable entity that makes an
elective payment election under section
6417 with respect to any applicable credit
determined with respect to the applicable
entity for the taxable year, the applicable entity is treated as making a payment
against the tax imposed by subtitle A, that
is, Federal income taxes, for the taxable
year with respect to which such credit was
determined that is equal to the amount of

July 3, 2023

such credit (elective payment amount). An
election under section 6417 must be made
at such time and in such manner as provided by the Secretary.
Section 6417(b) defines the term
“applicable credit” to mean each of the
following 12 credits:
(1) So much of the credit for alternative
fuel vehicle refueling property allowed
under section 30C of the Code that, pursuant to section 30C(d)(1), is treated as a
credit listed in section 38(b) of the Code
(section 30C credit);
(2) So much of the renewable electricity production credit determined under
section 45(a) of the Code as is attributable
to qualified facilities that are originally
placed in service after December 31, 2022
(section 45 credit);
(3) So much of the credit for carbon
oxide sequestration determined under section 45Q(a) of the Code as is attributable
to carbon capture equipment that is originally placed in service after December 31,
2022 (section 45Q credit);
(4) The zero-emission nuclear power
production credit determined under section 45U(a) of the Code (section 45U
credit);
(5) So much of the credit for production of clean hydrogen determined under
section 45V(a) of the Code as is attributable to qualified clean hydrogen production facilities that are originally placed in
service after December 31, 2012 (section
45V credit);
(6) In the case of a “tax-exempt entity”
described in section 168(h)(2)(A)(i), (ii),
or (iv) of the Code, the credit for qualified
commercial vehicles determined under
section 45W of the Code by reason of section 45W(d)(3)1 (section 45W credit);
(7) The credit for advanced manufacturing production under section 45X(a) of
the Code (section 45X credit);
(8) The clean electricity production
credit determined under section 45Y(a) of
the Code (section 45Y credit);
(9) The clean fuel production credit
determined under section 45Z(a) of the
Code (section 45Z credit);
(10) The energy credit determined
under section 48 of the Code (section 48
credit);

1

(11) The qualifying advanced energy
project credit determined under section
48C of the Code (section 48C credit); and
(12) The clean electricity investment
credit determined under section 48E of the
Code (section 48E credit).
As described in part II of this
Background section, section 6417(d)
defines an “applicable entity” and provides generally applicable rules for making elective payment elections. Sections
6417(e) through (h) provide special rules
applicable under section 6417 that are
described in part II of this Background
section. As described in parts III and
IV of this Background section, section
6417(c), (d)(1)(B), (C), and (D), and (d)
(3) also contain special rules allowing
a taxpayer, including for this purpose a
partnership or S corporation, that is not
an applicable entity (electing taxpayer)
to elect to be treated as an applicable
entity for the limited purpose of making
an elective payment election under section 6417, but only with respect to section 45Q credits, section 45V credits,
and section 45X credits. Part V of this
Background section describes Notice
2022-50, 2022-43 I.R.B. 325, which, in
part, requested feedback from the public on potential issues with respect to
the elective payment election provisions
under section 6417.
II. Applicable Entities and General
Elective Payment Election Rules
Section 6417(d)(1)(A) defines the term
“applicable entity” to mean:
(1) Any organization exempt from tax
imposed by subtitle A;
(2) Any State or political subdivision
thereof;
(3) The Tennessee Valley Authority;
(4) An Indian tribal government (as
defined in section 30D(g)(9) of the Code);
(5) Any Alaska Native Corporation
(as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C.
1602(m)); or
(6) Any corporation operating on a
cooperative basis that is engaged in furnishing electric energy to persons in rural
areas.

Section 6417(d)(2) provides that, in the
case of any applicable entity that makes
the election described in section 6417(a),
any applicable credit amount is determined
(1) without regard to section 50(b)(3) and
(4)(A)(i) of the Code (that is, restrictions
on property used by tax-exempt organizations and governmental units), and (2)
by treating any property with respect to
which such credit is determined as used in
a trade or business of the applicable entity.
Section 6417(d)(3)(A)(i) provides
rules regarding the due date for making
any elective payment election. In the case
of any government (such as a State, the
District of Columbia, an Indian Tribal
government, any U.S. territory, or any
agency or instrumentality of the foregoing), or political subdivision, described
in section 6417(d)(1) and for which no
Federal income tax return is required
under sections 6011 or 6033(a) of the
Code, any election under section 6417(a)
cannot be made later than the date as is
determined appropriate by the Secretary.
In any other case, any election under section 6417(a) cannot be made later than the
due date (including extensions of time)
for the tax return for the taxable year for
which the election is made, but in no event
earlier than 180 days after the date of the
enactment of section 6417 (that is, in no
event earlier than 180 days after August
16, 2022, which is February 13, 2023).
Section 6417(d)(3)(A)(ii) provides that
any election under section 6417(a), once
made, is irrevocable, and applies (except
as otherwise provided in section 6417(d)
(3)) with respect to any credit for the taxable year for which the election is made.
Section 6417(d)(3)(B) provides that, in
the case of section 45 credits, any election
under section 6417(a): (1) applies separately with respect to each qualified facility; (2) must be made for the taxable year
in which such qualified facility is originally placed in service; and (3) applies to
such taxable year and to any subsequent
taxable year that is within the 10-year
credit period described in section 45(a)
(2)(A)(ii) with respect to such qualified
facility.
Section 6417(d)(3)(C) provides that,
in the case of section 45Q credits, any

The reference should be to 45W(d)(2). This has been corrected in the proposed regulations.

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Bulletin No. 2023–27

election under section 6417(a): (1) applies
separately with respect to the carbon
capture equipment originally placed in
service by the applicable entity during
a taxable year; and (2) applies to such
taxable year and to any subsequent taxable year that is within the 12-year credit
period described in section 45Q(a)(3)(A)
or (4)(A) with respect to such equipment.
Section 6417(d)(3)(C)(i)(II)(aa), (d)(3)
(C)(ii), and (d)(3)(C)(iii) provides special
rules for a taxpayer making the election to
be treated as an applicable entity for purposes of section 6417 with respect to the
45Q credit (see part III of this Background
section).
Section 6417(d)(3)(D) provides that,
in the case of section 45V credits, any
election under section 6417(a): (1) applies
separately with respect to each qualified clean hydrogen production facility;
(2) must be made for the taxable year in
which such facility is placed in service (or
within the 1-year period subsequent to the
date of enactment of section 6417 in the
case of facilities placed in service before
December 31, 2022); and (3) applies to
the taxable year and all subsequent taxable years with respect to such facility.
Section 6417(d)(3)(D)(i)(III)(aa), (d)(3)
(D)(ii), and (d)(3)(D)(iii) provide special
rules for a taxpayer making the election to
be treated as an applicable entity for purposes of section 6417 with respect to the
45V credit (see part III of this Background
section).
Section 6417(d)(3)(E) provides that, in
the case of section 45Y credits, any election under section 6417(a): (1) applies
separately with respect to each qualified
facility; (2) must be made for the taxable
year in which such facility is placed in service; and (3) applies to such taxable year
and to any subsequent taxable year that is
within the 10-year credit period described
in section 45Y(b)(1)(B) with respect to
such facility.
Section 6417(d)(4) provides rules
regarding when the elective payment is
treated as made. Section 6417(d)(4)(A)
provides that in the case of any government or political subdivision described

2
3

in section 6417(d)(1), and for which no
return is required under section 6011 or
section 6033(a), the payment described
in section 6417(a) is treated as made on
the later of the date that a return would
be due under section 6033(a) if such government or subdivision were described in
section 6033 or the date on which such
government or subdivision submits a
claim for credit or refund (at such time
and in such manner as the Secretary provides). Section 6417(d)(4)(B) provides
that, in any other case, the payment
described in section 6417(a) is treated as
made on the later of the due date (determined without regard to extensions) of
the return of tax for the taxable year or
the date on which such return is filed with
the IRS.
Section 6417(d)(5) provides that, as
a condition of, and prior to, any amount
being treated as a payment that is made
by an applicable entity under section
6417(a), the Secretary may require
such information or registration as the
Secretary deems necessary for purposes of preventing duplication, fraud,
improper payments, or excessive payments under section 6417.
Section 6417(d)(6) provides rules
relating to excessive payments. In the case
of any amount treated as a payment that is
made by the applicable entity under section 6417(a), or the amount of the payment
made pursuant to section 6417(c), that is
determined to constitute an excessive payment, the tax imposed on such entity by
chapter 1 of the Code (chapter 1), regardless of whether such entity would otherwise be subject to chapter 1 tax, for the
taxable year in which such determination
is made is increased by an amount equal to
the sum of (1) the amount of such excessive payment, plus (2) an amount equal
to 20 percent of such excessive payment.
The increase equal to 20 percent of the
excessive payment does not apply if the
applicable entity can demonstrate that the
excessive payment resulted from reasonable cause.
An excessive payment is defined as,
with respect to a facility or property for

which an election is made under section
6417 for any taxable year, an amount equal
to the excess of (1) the amount treated as
a payment that is made by the applicable entity under section 6417(a), or the
amount of the payment made pursuant to
section 6417(c), with respect to such facility or property for such taxable year, over
(2) the amount of the credit that, without
application of section 6417, would be otherwise allowable (as determined pursuant
to section 6417(d)(2) and without regard
to section 38(c)) with respect to such facility or property for such taxable year.
Section 6417(e) provides a denial of
double benefit rule providing that, in the
case of an applicable entity making an
election under section 6417 with respect to
an applicable credit, such credit is reduced
to zero and, for any other purpose under
the Code, is deemed to have been allowed
to such entity for such taxable year.
Section 6417(f) provides a special rule
relating to any territory2 of the United
States with a mirror code tax system (as
defined in section 24(k) of the Code).
Under this rule, section 6417 will not be
treated as part of the income tax laws of
the United States for purposes of determining the income tax law of any such
U.S. territory unless such U.S. territory
elects to have section 6417 be so treated.
Currently, the U.S. Virgin Islands, Guam,
and the Commonwealth of the Northern
Mariana Islands have mirror code tax
systems.
Section 6417(g) provides basis reduction and recapture rules. It states that,
except as otherwise provided in section
6417(d)(2)(A),3 rules similar to the rules
of section 50 apply for purposes of section
6417.
Section 6417(h) authorizes the
Secretary to issue regulations or other
guidance as may be necessary to carry
out the purposes of section 6417, including guidance to ensure that the amount
of the payment or deemed payment made
under section 6417 is commensurate with
the amount of the credit that would be
otherwise allowable (determined without
regard to section 38(c)).

Section 6417(f) uses the term “possession,” but this proposed regulation uses the alternative term “territory.”
Section 6417(g) actually states “subsection (c)(2)(A),” but there is no section 6417(c)(2)(A); thus, the proposed regulations correct the reference to state“(d)(2)(A).”

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July 3, 2023

III. Special Rules Relating to Certain
Taxpayers Making An Election Under
Section 6417(d)(1)(B), (C), or (D)
(Electing Taxpayers)
A taxpayer other than an applicable
entity under section 6417(d)(1)(A) may
make an election under section 6417(d)(1)
(B), (C), or (D) at such time and in such
manner as the Secretary provides (but no
election may be made with respect to any
taxable year beginning after December
31, 2032). The election allows the electing taxpayer to be treated as an applicable
entity for the limited purpose of making
an elective payment election under section 6417 with respect to a section 45V
credit, a section 45Q credit, or a section
45X credit, respectively. The special rules
for such an election are described in paragraphs III.A, III.B, and III.C of this background section.
A. Electing taxpayers making an election
with respect to section 45V credits
Section 6417(d)(1)(B) allows an
electing taxpayer to make an elective
payment election for any taxable year
in which such taxpayer has placed in
service a qualified clean hydrogen production facility (as defined in section
45V(c)(3)), but only with respect to a
section 45V credit determined in such
year with respect to the electing taxpayer. Pursuant to section 6417(d)(3)
(D)(i)(III), such electing taxpayer is
treated as having made such election for
the taxable year with respect to which
the election is made and each of the
four subsequent taxable years ending
before January 1, 2033. Under section
6417(d)(3)(D)(iii), an electing taxpayer
may elect to revoke the application of
such election, but any such election to
revoke, if made, applies to the applicable year specified in such election (but
not any prior taxable year) and each subsequent taxable year within the 5-year
period and cannot be revoked.
Section 6417(d)(3)(D)(ii) prohibits an
electing taxpayer from making a transfer election under section 6418(a) with
respect to a section 45V credit for any
year for which the electing taxpayer’s
election under section 6417(d)(1)(B) is
in effect.

July 3, 2023

B. Electing taxpayers making an election
with respect to section 45Q credits
Section 6417(d)(1)(C) allows an electing taxpayer to make an elective payment
election for any taxable year in which the
electing taxpayer has, after December
31, 2022, placed in service carbon capture equipment at a qualified facility (as
defined in section 45Q(d)), but only with
respect to a section 45Q credit determined in such year with respect to such
taxpayer. Pursuant to section 6417(d)
(3)(C)(i)(II)(aa), such electing taxpayer
is treated as having made such election
for the taxable year with respect to which
the election is made and each of the four
subsequent taxable years ending before
January 1, 2033. Under section 6417(d)
(3)(C)(iii), an electing taxpayer may
elect to revoke the application of such
election, but any such election to revoke,
if made, applies to the applicable year
specified in such election (but not any
prior taxable year) and each subsequent
taxable year within the 5-year period and
cannot be revoked.
Section 6417(d)(3)(C)(ii) prohibits an
electing taxpayer from making a transfer election under section 6418(a) with
respect to a section 45Q credit for any
year for which the electing taxpayer’s
election under section 6417(d)(1)(C) is
in effect.
C. Electing taxpayers making an election
with respect to section 45X credits
Section 6417(d)(1)(D) allows an electing taxpayer to make an elective payment
election for any taxable year in which the
electing taxpayer has, after December 31,
2022, produced eligible components (as
defined in section 45X(c)(1)), but only
with respect to a section 45X credit determined in such year with respect to such
taxpayer. Pursuant to section 6417(d)
(1)(D)(ii)(I), such electing taxpayer is
treated as having made such election for
the taxable year with respect to which
the election is made and each of the four
subsequent taxable years ending before
January 1, 2033. Under section 6417(d)(1)
(D)(ii)(II), an electing taxpayer may elect
to revoke the application of such election,
but any such election to revoke, if made,
applies to the applicable year specified in

1130

such election (but not any prior taxable
year) and each subsequent taxable year
remaining within the 5-year period and
cannot be revoked.
Section 6417(d)(1)(D)(iii) prohibits an electing taxpayer from making a
transfer election under section 6418(a)
with respect to a section 45X credit for
any year for which the electing taxpayer’s election under section 6417(d)(1)(D)
is in effect.
IV. Section 6417 Rules for Partnerships
and S corporations
Section 6417(c) provides special rules
for partnerships and S corporations that
hold directly (as determined for Federal
income tax purposes) a facility or property for which an applicable credit is
determined. Section 6417(c)(1) provides
that, in the case of any applicable credit
determined with respect to any facility or
property held directly by a partnership or
S corporation, any elective payment election must be made by such partnership
or S corporation in the manner provided
by the Secretary. If such a partnership
or S corporation makes an elective payment election with respect to any applicable credit, (1) a payment is made to
such partnership or S corporation equal
to the applicable credit amount, (2) section 6417(e) is applied with respect to the
applicable credit before determining any
partner’s distributive share, or S corporation shareholder’s pro rata share, of such
applicable credit, (3) any applicable credit
amount with respect to which the election
in section 6417(a) is made is treated as tax
exempt income for purposes of sections
705 and 1366 of the Code, and (4) a partner’s distributive share of such tax exempt
income is based on such partner’s distributive share of the otherwise applicable
credit for each taxable year (an S corporation shareholder’s share of tax exempt
income is based on the shareholder’s pro
rata share).
Section 6417(c)(2) provides that, in
the case of any facility or property held
directly by a partnership or S corporation,
no election by any partner or shareholder
is allowed under section 6417(a) with
respect to any applicable credit determined with respect to such facility or
property.

Bulletin No. 2023–27

V. Notice 2022-50
On October 24, 2022, the Treasury
Department and the IRS published Notice
2022-50, 2022-43 I.R.B. 325, to, among
other things, request feedback from the
public on potential issues with respect
to the elective payment election provisions under section 6417 that may require
guidance. Over 200 comment letters were
received in response to Notice 2022-50.
Based in part on the feedback received,
the Treasury Department and the IRS are
issuing these proposed regulations regarding the elective payment election provisions under section 6417. The major areas
with respect to which public stakeholders
provided letters are discussed in the following Explanation of Provisions.
Explanation of Provisions
I. General Rules and Definitions
A. Applicable entity
Section 6417(d)(1) defines “applicable
entity” as (1) any organization exempt
from the tax imposed by subtitle A, (2)
any State or political subdivision thereof,
(3) the Tennessee Valley Authority, (4) an
Indian tribal government (as defined in
section 30D(g)(9)), (5) any Alaska Native
Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43
U.S.C. 1602(m)), or (6) any corporation
operating on a cooperative basis that is
engaged in furnishing electric energy to
persons in rural areas. Proposed §1.64171(c) would clarify these statutory definitions pursuant to the Secretary’s authority
under section 6417(h) to issue regulations
necessary to carry out the purposes of section 6417, as discussed below.
1. Any organization exempt from the tax
imposed by subtitle A
Stakeholders asked for clarification on
the scope of the phrase “any organization

exempt from the tax imposed by subtitle
A” for purposes of determining whether
a taxpayer is an applicable entity. Entities
may be exempt from tax or have their
income exempt from tax under various
authorities. For example, an organization
could be exempt from taxation by section
501(a) of the Code or by other provisions
of the Code. An organization could also
have its income excluded from taxation
by section 115.
The Treasury Department and the IRS
propose to define the term “any organization exempt from the tax imposed by
subtitle A” to include all organizations
exempt from the tax imposed by subtitle A
by section 501(a) of the Code, commonly
referred to as “tax-exempt organizations.”
Several stakeholders requested clarification that tax-exempt entities in the U.S.
territories are eligible to make an election
under section 6417. Under these proposed
regulations, such entities would be considered organizations exempt from the tax
imposed by subtitle A as long as they are
exempt from taxation by section 501(a)
and as long as they meet the requirements
to claim an applicable credit (such as
being an appropriate owner of an investment credit property under sections 50(b)
(1)(B) and 168(g)(4)(G)).4
Stakeholders also asked whether an
entity classified as a nonprofit under State
law but that does not have Federal tax-exempt status would be described in section 6417(d)(1)(A). Such an entity would
not be described in section 6417(d)(1)
(A) because it is not exempt from the tax
imposed by subtitle A (unless it met the
requirements of another type of applicable entity discussed below, such as a state
instrumentality).
Stakeholders also specifically sought
clarification as to whether governments
of U.S. territories would be treated as
applicable entities, based on their unique
status and the importance of their energy
security. These stakeholders noted that
the renewable energy credits generally may be claimed for activities in

the U.S. territories provided the underlying requirements are met, including
the specific ownership requirements for
investment tax credits.5 In response, the
proposed regulations would interpret the
term “organization exempt from the tax
imposed by subtitle A” as used in section
6417(d)(1)(A) to include the governments of the U.S. territories. Since section 115(2) excludes the income accruing
to the government of any territory of the
United States, or any political subdivision
thereof, from gross income, it effectively
exempts these governments from the tax
imposed by subtitle A. In addition, these
governments may properly be viewed as
organizations.6 Accordingly, proposed
§1.6417-1(c)(1)(ii) would provide that
the government of any U.S. territory, or a
political subdivision thereof, is an applicable entity for purposes of section 6417
or provisions of law referencing section
6417(d)(1)(A).
The Treasury Department and the IRS
request comments on this definition of any
organization exempt from the tax imposed
by subtitle A, including as to whether the
term should encompass the United States,
federal agencies, or other organizations
beyond those listed in these proposed
rules.
2. Any State or political subdivision
thereof
Section 6417(d)(1)(A)(ii) states that
“any State or political subdivision thereof”
is an applicable entity for purposes of section 6417.
The Treasury Department and the IRS
note that section 7701(a)(10) provides
that the term “State” must be construed
to include the District of Columbia where
such construction is necessary to carry out
provisions of Title 26, and thus propose
that the definition of State would include
the District of Columbia. The Treasury
Department and the IRS request comments on whether additional clarification
is needed.

Section 50(b)(1) provides that no investment tax credit can be determined with respect to property used predominantly outside of the United States, but section 50(b)(1)(B) provides an exception for property described in section 168(g)(4). In the case of entities, section 168(g)(4)(G) describes property which is owned by a domestic corporation and which is used predominantly
in a U.S. territory by such a corporation, or by a corporation created or organized in, or under the law of, a U.S. territory.
5
See footnote 2.
6
The Code and the regulations under 26 CFR part 1 occasionally refer to governmental entities as organizations. For example, section 509(a)(1) refers to “an organization described in section
170(b)(1)(A),” which includes a governmental unit described in sections 170(b)(1)(A)(v) and 170(c)(1). See corresponding rules in §1.170A-9(a) and (e).
4

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July 3, 2023

3. Indian tribal governments
Section 6417(d)(1)(A)(iv) states that
an applicable entity includes an Indian
tribal government (as defined in section
30D(g)(9)). To provide Indian tribal governments parity with state governments,
proposed §1.6417-1(c)(3) would include
subdivisions of Indian tribal governments
in this definition.
Section 30D(g)(9) provides that “the
term “Indian tribal government” means
the recognized governing body of any
Indian or Alaska Native tribe, band,
nation, pueblo, village, community, component band, or component reservation,
individually identified (including

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3Ab6139abb8f4f251a. Public record. Not legal advice.