Bulletin No. 2026–29

HIGHLIGHTS

OF THIS ISSUE





Bulletin No. 2026–29

July 13, 2026

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

EXEMPT ORGANIZATIONS

Announcement 2026-11, page 49.

Announcement 2026-12, page 50.

This Announcement advises the public that the Internal Revenue Service is revising the optional standard mileage rates

for substantiating the costs of operating an automobile for

business, medical or moving purposes. These revised rates

are effective beginning July 1, 2026. This Announcement

modifies Notice 2026-10.

ESTATE TAX, GIFT TAX

Rev. Proc. 2026-25, page 45.

This is a revenue procedure that provides a safe harbor for

individual taxpayers who (i) make contributions to Trump

accounts established under § 530A of the Internal Revenue

Code and (ii) satisfy certain specified conditions. If the conditions are satisfied, contributions to Trump accounts will

be treated as completed gifts that are not future interests

in property and to which the annual per-donee gift tax exclusion applies. As a result, taxpayers within the scope of the

revenue procedure will not be required to file gift tax returns

reporting such contributions.

EXCISE TAX

Notice 2026-43, page 42.

This Notice of Determinations adds 2 chemical substances

to the list of taxable substances under § 4672 subject to

the tax imposed by § 4671.

Finding Lists begin on page ii.

Revocation of IRC 501(c)(3) Organizations for failure to

meet the code section requirements. Contributions made to

the organizations by individual donors are no longer deductible under IRC 170(b)(1)(A).

INCOME TAX

Notice 2026-41, page 39.

This notice publishes the 2026 calendar-year inflation

adjustment factor for the section 45U zero-emission nuclear

power production credit, as well as the inflation adjustment

factors and corresponding applicable amounts for the section 45V clean hydrogen production credit and the section

45Z clean fuel production credit, respectively. The inflation

adjustment factors (applicable to sections 45U, 45V, and

45Z) and the applicable amounts (in the case of sections

45V and 45Z) are used to determine the amount of the

credit allowable under sections 45U, 45V, and 45Z.

Notice 2026-42, page 41.

This notice publishes the applicable reference price and

credit amount under § 45I of the Internal Revenue Code

for qualified natural gas production from qualified marginal

wells during taxable years beginning in calendar year 2026.

The applicable reference price and credit amount are used

in determining the marginal well production credit under

§ 45I for qualified natural gas production.

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

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The Bulletin is divided into four parts as follows:

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This part includes rulings and decisions based on provisions

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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 13, 2026 

Bulletin No. 2026–29

Part III

Zero-Emission Nuclear

Power Production Credit

2026 Section 45U Inflation

Adjustment Factor

Credit for Production of

Clean Hydrogen

2026 Section 45V Inflation

Adjustment Factor and

Applicable Amount

Clean Fuel Production Credit

2026 Section 45Z Inflation

Adjustment Factor and

Applicable Amount

Notice 2026-41

SECTION 1. PURPOSE

This notice publishes the inflation adjustment factors and applicable

amounts, as appropriate, for calendar year

2026 for the zero-emission nuclear power

production credit under § 45U of the

Internal Revenue Code (Code) (the § 45U

credit), the credit for production of clean

hydrogen under § 45V of the Code (the

§ 45V credit), and the clean fuel production credit under § 45Z of the Code (the

§ 45Z credit). These inflation adjustment

factors and applicable amounts, as appropriate, are used to determine the corresponding credit amounts under §§ 45U,

45V, and 45Z.

SECTION 2. BACKGROUND

.01 Section 45U.

Section 45U was added to the Code by

section 13105 of Public Law 117-169, 136

Stat. 1818, 1929 (August 16, 2022), commonly known as the Inflation Reduction

Act of 2022 (IRA), to provide an income

tax credit for producing electricity at a

qualified nuclear power facility.

Section 45U(a) provides that, for purposes of § 38, the § 45U credit for any

taxable year is an amount equal to the

amount by which the product of 0.3 cents

Bulletin No. 2026–29

(the amount provided in § 45U(a)(1)(A))

and the kilowatt hours of electricity the

taxpayer produced at a qualified nuclear

power facility and sold to an unrelated

person during the taxable year, exceeds

the reduction amount for that taxable

year.

Section 45U(b)(2) defines the reduction amount as the lesser of: (1) the

amount determined under § 45U(a) before

application of the reduction amount, or

(2) the amount equal to 16 percent of the

excess of, subject to other rules regarding

the treatment of certain receipts, the gross

receipts from any electricity produced by

a qualified nuclear power facility (including any electricity services or products

provided in conjunction with the electricity produced by such facility) and sold to

an unrelated person during the taxable

year, over the amount equal to the product of 2.5 cents (the amount provided in

§ 45U(b)(2)(A)(ii)(II)(aa)), multiplied

by the kilowatt hours of electricity determined in § 45U(a).

Section 45U(c)(1) provides that the

0.3 cent amount in § 45U(a)(1)(A) and

the 2.5 cent amount in § 45U(b)(2)(A)(ii)

(II)(aa) are each adjusted by multiplying

such amounts by the inflation adjustment

factor (as determined under § 45(e)(2), by

substituting “2023” for “1992” in § 45(e)

(2)(B)) for the calendar year in which the

sale of electricity (as defined in § 45U(b)

(3)) occurred. If the 0.3 cent and 2.5 cent

amounts, as increased under § 45U(c)

(1), are not multiples of 0.05 cent and 0.1

cent, respectively, then such amounts are

rounded to the nearest multiples of 0.05

cent and 0.1 cent, respectively.

.02 Section 45V.

Section 45V was added to the Code by

IRA section 13204, 136 Stat. at 1935, to

provide an income tax credit for producing qualified clean hydrogen.

Section 45V(a) provides that, for purposes of § 38, the § 45V credit for any

taxable year is an amount equal to the

product of (1) the kilograms of qualified

clean hydrogen produced by the taxpayer

during such taxable year at a qualified

clean hydrogen production facility during

the 10-year period beginning on the date

such facility was originally placed in ser-

39

vice, and (2) the applicable amount as

determined under § 45V(b) with respect

to such hydrogen.

Section 45V(b)(1) provides that, for

purposes of § 45V(a)(2), the applicable

amount is an amount equal to the applicable percentage of $0.60. If the amount so

determined is not a multiple of 0.1 cent,

then such amount is rounded to the nearest

multiple of 0.1 cent.

Section 45V(b)(2) provides that, for

purposes of § 45V(b)(1), the applicable

percentage is determined based on the

lifecycle greenhouse gas emissions (lifecycle GHG emissions) rate of the process used to produce any qualified clean

hydrogen as follows: (i) if the lifecycle

GHG emissions rate is not greater than

4 kilograms of carbon dioxide equivalent

(CO2e) per kilogram of hydrogen, and

not less than 2.5 kilograms of CO2e per

kilogram of hydrogen, then the applicable percentage is 20 percent; (ii) if the

lifecycle GHG emissions rate is less than

2.5 kilograms of CO2e per kilogram of

hydrogen, and not less than 1.5 kilograms

of CO2e per kilogram of hydrogen, then

the applicable percentage is 25 percent;

(iii) if the lifecycle GHG emissions rate

is less than 1.5 kilograms of CO2e per

kilogram of hydrogen, and not less than

0.45 kilograms of CO2e per kilogram of

hydrogen, then the applicable percentage is 33.4 percent; and (iv) if the lifecycle GHG emissions rate is less than

0.45 kilograms of CO2e per kilogram of

hydrogen, then the applicable percentage

is 100 percent.

Section 45V(b)(3) provides that the

$0.60 amount in § 45V(b)(1) is adjusted by

multiplying such amount by the inflation

adjustment factor (as determined under

§ 45(e)(2), by substituting “2022” for

“1992” in § 45(e)(2)(B)) for the calendar

year in which the qualified clean hydrogen

is produced. If any amount as increased

under § 45V(b)(3) is not a multiple of 0.1

cent, then such amount is rounded to the

nearest multiple of 0.1 cent.

.03 Section 45Z.

Section 45Z was added to the Code by

IRA section 13704, 136 Stat. at 1997, to

provide an income tax credit for producing clean transportation fuel.

July 13, 2026

Section 45Z(a)(1) provides that, for

purposes of § 38, the § 45Z credit for any

taxable year is an amount equal to the

product of (1) the applicable amount per

gallon (or gallon equivalent) with respect

to any transportation fuel which is produced by the taxpayer at a qualified facility and sold by the taxpayer in a specific

manner during the taxable year, and (2)

the emissions factor for such fuel as determined under § 45Z(b).

As enacted by the IRA, § 45Z(a)(2)

and (3) provided the applicable amounts

for transportation fuels. Specifically, for

transportation fuel that was not a sustainable aviation fuel (non-SAF transportation fuel), the applicable amount was

20 cents under § 45Z(a)(2)(A), or $1.00

under § 45Z(a)(2)(B). For transportation

fuel that was a sustainable aviation fuel

(SAF transportation fuel), the applicable

amount was 35 cents under § 45Z(a)(3)

(A)(i), or $1.75 under § 45Z(a)(3)(A)(ii).

Section 45Z refers to the lower amount

for a fuel as the base amount and to the

higher amount for a fuel as the alternative

amount. A taxpayer uses the alternative

amount if it produces transportation fuel

at a qualified facility that satisfies certain prevailing wage and apprenticeship

requirements.

Section 70521(g)(2) of Public Law

119-21, 139 Stat. 72, 278 (July 4, 2025),

commonly known as the One, Big, Beautiful Bill Act, amended § 45Z by eliminating the higher applicable amounts for

SAF transportation fuel. This amendment

applies to fuel produced after December

31, 2025. Thus, for all transportation fuel

produced after December 31, 2025, the

applicable amount is either 20 cents or

$1.00 as provided in § 45Z(a)(2). However, for transportation fuel produced

between January 1, 2025, and December 31, 2025, the applicable amounts are

those as enacted under the IRA and differ for SAF and non-SAF transportation

fuel.

Section 45Z(c)(1) provides that, for

calendar years beginning after 2024, the

applicable amount must be adjusted by

multiplying such amount by the inflation

adjustment factor for the calendar year

in which the sale of the transportation

fuel occurs. Any amount adjusted under

§ 45Z(c)(1) must be rounded to the nearest

cent. Section 45Z(c)(2) provides that the

July 13, 2026

inflation adjustment factor for the § 45Z

credit is the inflation adjustment factor

determined and published by the Secretary

of the Treasury or his delegate pursuant to

§ 45Y(c), determined by substituting “calendar year 2022” for “calendar year 1992”

in § 45Y(c)(3).

.04 Sections 45(e)(2)(B) and 45Y(c)(3).

Sections 45(e)(2)(B) and 45Y(c)(3)

define the term inflation adjustment factor as, with respect to a calendar year, a

fraction, the numerator of which is the

GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price

deflator for the calendar year 1992.

Under both statutes, the term GDP

implicit price deflator means the most

recent revision of the implicit price

deflator for the gross domestic product as computed and published by the

Department of Commerce before March

15 of the calendar year.

SECTION 3. INFLATION

ADJUSTMENT FACTORS AND

APPLICABLE AMOUNTS

.01 2026 Section 45U Inflation Adjustment Factor.

For purposes of § 45U(c)(1), for sales

of electricity occurring in calendar year

2026, the inflation adjustment factor is

a fraction, the numerator of which is

the GDP implicit price deflator for 2025

(128.986) and the denominator of which

is the GDP implicit price deflator for 2023

(122.39), which yields an inflation adjustment factor of 1.0539.

For sales of electricity occurring in

calendar year 2026, the amount provided

in § 45U(a)(1)(A) is 0.3 cents (0.3 cents

(or $0.003) x 1.0539, then rounded to the

nearest multiple of 0.05 cent). The amount

provided in § 45U(b)(2)(A)(ii)(II)(aa) is

2.6 cents (2.5 cents (or $0.025) x 1.0539,

then rounded to the nearest multiple of 0.1

cent).

.02 2026 Section 45V Inflation Adjustment Factor and Applicable Amount.

For purposes of § 45V(b)(3), for qualified clean hydrogen produced in calendar

year 2026, the inflation adjustment factor

is a fraction, the numerator of which is

the GDP implicit price deflator for 2025

(128.986) and the denominator of which

is the GDP implicit price deflator for

40

2022 (118.023), which yields an inflation

adjustment factor of 1.0929.

For qualified clean hydrogen produced

in calendar year 2026, the applicable

amount determined under § 45V(b)(1) is

the product of $0.656 ($0.60 x 1.0929,

then rounded to the nearest multiple of 0.1

cent) and the applicable percentage, which

depends on the lifecycle GHG emissions

rate of the qualified clean hydrogen production process. Thus, for qualified clean

hydrogen produced through a process that

results in a lifecycle GHG emissions rate

of:

(i) not greater than 4 kilograms of

CO2e per kilogram of hydrogen, and not

less than 2.5 kilograms of CO2e per kilogram of hydrogen, the applicable amount

is $0.131;

(ii) less than 2.5 kilograms of CO2e

per kilogram of hydrogen, and not less

than 1.5 kilograms of CO2e per kilogram

of hydrogen, the applicable amount is

$0.164;

(iii) less than 1.5 kilograms of CO2e

per kilogram of hydrogen, and not less

than 0.45 kilograms of CO2e per kilogram

of hydrogen, the applicable amount is

$0.219; and

(iv) less than 0.45 kilograms of CO2e

per kilogram of hydrogen, the applicable

amount is $0.656.

.03 2026 Section 45Z Inflation Adjustment Factor and Applicable Amount.

For purposes of § 45Z(c), for transportation fuel sold in calendar year 2026,

the inflation adjustment factor is a fraction, the numerator of which is the GDP

implicit price deflator for 2025 (128.986)

and the denominator of which is the GDP

implicit price deflator for 2022 (118.023),

which yields an inflation adjustment factor of 1.0929.

For all transportation fuel produced

and sold in calendar year 2026, and for

non-SAF transportation fuel produced in

calendar year 2025 and sold in calendar

year 2026:

(i) The base amount is 22 cents (20

cents x 1.0929, then rounded to the nearest

cent) under § 45Z(a)(2)(A).

(ii) The alternative amount is $1.09

($1.00 x 1.0929, then rounded to the nearest cent) under § 45Z(a)(2)(B).

For SAF transportation fuel produced

in calendar year 2025 and sold in calendar

year 2026:

Bulletin No. 2026–29

(i) The base amount is 38 cents (35

cents x 1.0929, then rounded to the nearest

cent) under § 45Z(a)(3)(A)(i) as enacted

by IRA § 13704.

(ii) The alternative amount is $1.91

($1.75 x 1.0929, then rounded to the

nearest cent) under § 45Z(a)(3)(A)(ii) as

enacted by IRA § 13704.

SECTION 4. DRAFTING

INFORMATION

The principal authors of this notice are

Whitney Brady, Glenn Kats, and Andrew

Clark of the Office of Associate Chief

Counsel (Energy, Credits, and Excise

Tax). For further information regarding

this notice contact Whitney Brady at (202)

317-6325, Glenn Kats at (202) 317-3995,

or Andrew Clark at (202) 317-6855 (not

toll-free numbers).

Reference Price for Section

45I Credit for Production of

Natural Gas from Marginal

Wells During Taxable Years

Beginning in Calendar Year

2026

Notice 2026-42

SECTION 1. PURPOSE

This notice provides the applicable

reference price for qualified natural gas

production from qualified marginal wells

during taxable years beginning in calendar

year 2026 for the purpose of determining

the marginal well production credit (MWC)

under § 45I of the Internal Revenue Code.

The applicable reference price for taxable

years beginning in calendar year 2026 is

$2.20 per 1,000 cubic feet (Mcf).

This notice also provides the credit

amount used for the purpose of determining the MWC for taxable years beginning in calendar year 2026. The credit

amount is determined using the 2026

inflation adjustment factor of 1.6295 and

the applicable reference price of $2.20 per

Mcf. The credit amount for taxable years

beginning in calendar year 2026 is $0.81

per Mcf.

Bulletin No. 2026–29

SECTION 2. BACKGROUND

Section 45I(a), as it relates to qualified natural gas production, provides that,

for purposes of § 38, the MWC for any

taxable year is an amount equal to the

product of (1) the credit amount and (2)

the qualified natural gas production that is

attributable to the taxpayer.

Section 45I(c)(1) provides that “qualified natural gas production” means

domestic natural gas produced from a

qualified marginal well. Section 45I(c)

(3)(A) provides that a qualified marginal

well is a domestic well (i) the production from which during the taxable year

is treated as marginal production under

§ 613A(c)(6), or (ii) which, during the

taxable year (I) has average production

of not more than 25 barrel-of-oil equivalents per day, and (II) produces water at a

rate not less than 95 percent of total well

effluent.

Section 613A(c)(6)(D) and (E) provide that “marginal production” means

domestic natural gas produced during

any taxable year from a property which is

a stripper well property for the calendar

year in which the taxable year begins. A

“stripper well property” is, with respect

to any calendar year, any property producing not more than 15 barrel equivalents per day, determined by dividing

the average daily production of domestic

crude oil and domestic natural gas from

producing wells on the property for such

calendar year by the number of such

wells.

Section 45I(c)(2)(A) provides that

generally only the first 1,095 barrels or

barrel-of-oil equivalents (as defined in §

45K(d)(5)) produced during the taxable

year qualify for the MWC. This limitation is proportionately reduced in the

case of a short taxable year or in the case

of a well that is not capable of production

each day of a taxable year. See § 45I(c)

(2)(B). The number of wells on which a

taxpayer may claim the MWC is not limited.

Section 45I(d)(2) provides that to claim

the credit a taxpayer must hold an operating interest in the qualified marginal well

producing the natural gas to which the

credit relates. Under § 45I(d)(1) if a well

is owned by more than one owner and the

natural gas production exceeds the lim-

41

itation under § 45I(c)(2), the qualifying

natural gas production attributable to the

taxpayer is determined on the basis of the

ratio which the taxpayer’s revenue interest

in the production bears to the aggregate

of the revenue interests of all operating

interest owners in the production. Finally,

§ 45I(d)(3) provides that the MWC is not

allowable if the taxpayer is also eligible to

claim the § 45K nonconventional sources

credit for the taxable year, unless the taxpayer elects not to claim the credit under §

45K for the well.

For purposes of § 45I(a)(1), the credit

amount is 50 cents (adjusted for inflation)

per Mcf of qualified natural gas production

(tentative credit amount). See § 45I(b)(1)

(B) and (b)(2)(B).

Section 45I(b)(2)(A) and (B) provide

that the tentative credit amount (adjusted

for inflation) is reduced (but not below

zero) to the extent that the applicable

reference price exceeds $1.67 (adjusted

for inflation). More specifically, § 45I(b)

(2)(A) provides that the tentative credit

amount (adjusted for inflation) is reduced

by an amount which bears the same ratio

to the tentative credit amount (adjusted

for inflation) as the excess (if any) of

the applicable reference price over $1.67

(adjusted for inflation), bears to $0.33

(adjusted for inflation). As a result, the

MWC is not available if the applicable

reference price for qualified natural gas

production is $2.00 (adjusted for inflation)

or more.

Section 45I(b)(2)(A) also provides that

the applicable reference price for a taxable

year is the reference price for the calendar

year preceding the calendar year in which

the taxable year begins. Section 45I(b)(2)

(C)(ii) provides that the term “reference

price” means, with respect to any calendar

year, in the case of qualified natural gas

production, the Secretary’s estimate of the

annual average wellhead price per Mcf for

all domestic natural gas.

Section 45I(b)(2)(B) provides that in

the case of any taxable year beginning

in a calendar year after 2005, each of

the dollar amounts contained in § 45I(b)

(2)(A) will be increased to an amount

equal to such dollar amount multiplied

by the inflation adjustment factor for

such calendar year (determined under §

43(b)(3)(B) by substituting “2004” for

“1990”).

July 13, 2026

SECTION 3. INFLATION

ADJUSTMENT FACTOR AND

REFERENCE PRICE

.1 Inflation Adjustment. The inflation

adjustment factor under § 45I(b)(2)(B) for

calendar year 2026 is 1.6295.

.2 Reference Price. The Secretary’s

estimate of the calendar year 2025 annual

average wellhead price per Mcf for all

domestic natural gas under § 45I(b)(2)

(C)(ii) was calculated by applying the

Producer Price Index commodity index

for “Natural Gas from the Wellhead”

(WPU053101051)1 published by the

Bureau of Labor Statistics (BLS) as part

of its Producer Price Index program, to

the 2024 annual average wellhead price

($1.64) published in Notice 2025-34,

2025-27 I.R.B. 6. The annual Producer

Price Index commodity index for natural

gas published by the BLS was 50.869 in

2024 and 68.301 in 2025, which implies

a ratio of 2025 to 2024 average wellhead

prices of 1.343 (68.301/50.869). Therefore, the Secretary’s estimate of the calendar year 2025 annual average wellhead

price per Mcf for all domestic natural gas

is $2.20 per Mcf (1.343 × $1.64 per Mcf).

For years after 2025, the Secretary

intends to continue calculating the reference price by application of the Producer Price Index commodity index

for “Natural Gas from the Wellhead”

(WPU053101051) published by the BLS

to the previous year’s reference price.

SECTION 4. CALCULATION OF

CREDIT AMOUNT

Under § 45I(b)(1)(B) and (2)(B), the

tentative credit amount used to calculate

the MWC for taxable years beginning

in calendar year 2026 is $0.81 per Mcf

($0.50 × 1.6295 inflation adjustment factor).

Pursuant to § 45I(b)(2)(A), the tentative credit amount ($0.81) is reduced (but

not below zero) by an amount (the Reduction Amount) which bears the same ratio

to such amount as (i) the excess (if any) of

the applicable reference price ($2.20) over

$2.72 ($1.67 × 1.6295 inflation adjustment factor), bears to (ii) $0.54 ($0.33 ×

1

1.6295 inflation adjustment factor). The

Reduction Amount (as adjusted for inflation) is computed as follows:

Reduction Amount $2.20 – $2.72

=

$0.81

$0.54

The Reduction Amount is -$0.78

(($2.20 - $2.72) ÷ $0.54 × $0.81), which

is less than zero, therefore, the tentative

credit amount ($0.81) is not reduced.

the taxable substances added to the list is

October 1, 2026. The effective date for

purposes of refund claims under section

4662(e) of the Code for the taxable substances added to the list is April 1, 2023.

FOR FURTHER INFORMATION

CONTACT: Julia Barlow at (202) 3176855 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

SECTION 5. EFFECTIVE DATE

Background

This notice is effective for qualified

natural gas production during taxable

years beginning in calendar year 2026.

Section 4671(a) of the Code imposes

an excise tax on the sale or use of a taxable

substance by the importer thereof (section

4671 tax). Section 4672(a)(1) of the Code

defines the term taxable substance as any

substance which, at the time of sale or use

by the importer, is listed as a taxable substance by the Secretary of the Treasury or

the Secretary’s delegate (Secretary) on the

list of taxable substances under section

4672(a) (List).

Under section 4672(a)(2), an importer

or exporter of any substance may request

that the Secretary determine whether such

substance should be added to the List as

a taxable substance or should be removed

from the List. Under section 4672(a)(2)

(B) and (a)(4) and (b)(2), the Secretary

is required to add a substance to the List

if the Secretary determines that any taxable chemicals that are listed in section

4661(b) of the Code constitute more than

20 percent of the weight, or more than

20 percent of the value, of the materials

used to produce such substance, which

determination is required under section

4672(a)(2)(B) and (a)(4) to be made based

on the predominant method of production

(weight or value test). Section 4672(a)(4)

authorizes the Secretary to remove a substance from the List only if such substance

meets neither the weight nor the value test

of section 4672(a)(2)(B).

Section 4672(a)(3) includes an initial

list of taxable substances. Section 4 of

Notice 2021-66 (2021-52 I.R.B. 901) provides the list of 101 substances that the

Secretary added to the List before November 15, 2021. On May 31, 2024, the Secretary published a Notice of Determination

SECTION 6. DRAFTING AND

CONTACT INFORMATION

The principal author of this notice

is Alan W. Tilley of the Office of Associate Chief Counsel (Energy, Credits,

and Excise Tax). For further information

regarding this notice, contact Mr. Tilley

on (202) 317-6512 (not a toll-free number).

Superfund Tax on Chemical

Substances; Notice of

Determinations to Add

Substances to List of

Taxable Substances

Notice 2026-43

SUMMARY: This notice of

determinations modifies the list of taxable

substances to include the following two

substances: chloro-isobutene-isoprene

rubber ((C4H8)n-(C5H7.31Cl0.69)m; n=97.75,

m=2.25) and ethylene-propylenedicyclopentadiene rubber ((C2H4)m-(C3H6)n

-(C10H12)o; m=73.18, n=26.53, o=0.29).

EFFECTIVE DATES: The effective date

for purposes of the tax under section 4671

of the Internal Revenue Code (Code) for

https://data.bls.gov/cgi-bin/srgate. The BLS publishes indexes and not actual or average prices.

July 13, 2026

42

Bulletin No. 2026–29

in the Federal Register (89 FR 47238)

adding polyoxymethylene to the List; this

Notice of Determination was also published in the Internal Revenue Bulletin as

Notice 2024-50 (2024-26 I.R.B. 1789).

On August 4, 2025, the Secretary published a Notice of Determinations in the

Federal Register (90 FR 36520) adding

21 substances to the List; this Notice of

Determinations was also published in the

Internal Revenue Bulletin as Notice 202541 (2025-34 I.R.B. 325). On September

17, 2025, the Secretary published a Notice

of Determinations in the Federal Register (90 FR 44881) adding 39 substances

to the List; this Notice of Determinations

was also published in the Internal Revenue Bulletin as Notice 2025-51 (2025-41

I.R.B. 448). Rev. Proc. 2022-26 (202229 I.R.B. 90), as modified by Rev. Proc.

2023-20 (2023-15 I.R.B. 636), provides

the exclusive procedures by which an

importer, exporter, or interested person

may request a determination that a particular substance be added to or removed

from the List.

Section 4671(b)(3) authorizes the Secretary to prescribe a tax rate for taxable

substances in lieu of the tax rate specified

in section 4671(b)(2). The tax rate prescribed by the Secretary for a substance

added to the List is calculated by multiplying the conversion factor for each taxable

chemical used in the production of the

substance by the corresponding tax rate

for that taxable chemical under section

4661(b), and adding those results together.

Conversion factors are determined based

on the predominant method of production of the substance. See sections 8 and

10.04(8) of Rev. Proc. 2022-26. Importers are not required to use the prescribed

tax rate for a taxable substance and may

calculate their own rate under section

4671(b)(1).

Pursuant to Section 4672(a)(4), this

notice of determinations modifies the List

to include the two additional taxable substances listed in the Summary of Determinations section of this notice, as explained

in the Requests to Add Substances to the

List and General Explanation of Determinations sections of this notice. The

determination for each specific substance

added to the List is explained in parts 1

and 2 of the Modifications to the List of

Taxable Substances section of this notice.

Bulletin No. 2026–29

The updated List and prescribed

tax rates for taxable substances will be

included in the instructions to Form 6627,

Environmental Taxes.

Summary of Determinations

On June 26, 2026, the Secretary determined to add the following substances to

the List:

1. Chloro-isobutene-isoprene

rubber

((C4H8)n-(C5H7.31Cl0.69)m;

n=97.75,

m=2.25)

2. Ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n-(C10H12)o;

m=73.18, n=26.53, o=0.29)

Requests to Add Substances to the List

For each of the substances listed in

the Summary of Determinations section of this notice, an importer or an

exporter submitted a petition to the IRS

in accordance with Rev. Proc. 2022-26

requesting a determination under section 4672(a)(2) to add the substance to

the List. For each substance, the petition represented that taxable chemicals

constitute more than 20 percent of the

weight of materials used to produce the

substance, based on the predominant

method of production.

General Explanation of Determinations

After reviewing the petitions for each

of the substances listed in the Summary

of Determinations section of this notice,

the Secretary determined that taxable

chemicals constitute more than 20 percent by weight of the materials used to

produce the substance, based on the predominant method of production. Therefore, both of the substances are added to

the List as required under section 4672(a)

(2) and (4). The Secretary made the determinations to add these substances to the

List in accordance with the requirements

of section 4672(a)(2) and (4), and pursuant to the procedures set forth in Rev.

Proc. 2022-26, as modified by Rev. Proc.

2023-20.

The relevant information for each

taxable substance is provided in the specific determinations included in parts 1

and 2 of the Modifications to the List

of Taxable Substances section of this

43

notice. The tax rate for each taxable

substance, as prescribed by the Secretary, is provided in paragraph (a)(6) of

each specific determination. All scientific information provided in the specific

determinations reflects the information

provided by petitioners as published

in each taxable substance’s respective

Notice of Filing.

Classification numbers proposed by

each petitioner are included in paragraph

(b) of each part, after each specific determination. The classification numbers

provided with respect to a taxable substance are not part of the determination

of whether it is added to the List and

do not impact whether such substance

is a taxable substance. Taxpayers may

not rely on classification numbers for

any purpose under sections 4661, 4662,

4671, and 4672, including (but not limited to) identification of a substance as a

taxable substance on the List. Classification numbers may change over time. The

Department of the Treasury (Treasury

Department) and the IRS do not anticipate updating this document to reflect

any such changes.

For purposes of the section 4671 tax,

all the modifications in parts 1 and 2 of

the Modifications to the List of Taxable

Substances section of this notice are effective on and after October 1, 2026. For

purposes of refund claims under section

4662(e), the modifications are effective

April 1, 2023.

Modifications to the List of Taxable

Substances

1. Determination to Add Chloroisobutene-isoprene Rubber ((C4H8)n

-(C5H7.31Cl0.69)m; n=97.75, m=2.25) to

the List

Arlanxeo USA LLC and Arlanxeo

Canada Inc., importers and exporters of

chloro-isobutene-isoprene rubber ((C4H8)n

-(C5H7.31Cl0.69)m; n=97.75, m=2.25), submitted a petition in accordance with

Rev. Proc. 2022-26 requesting to add

chloro-isobutene-isoprene rubber ((C4H8)n

-(C5H7.31Cl0.69)m; n=97.75, m=2.25) to the

List. According to the petition, the taxable

chemicals butylene, chlorine, and sodium

hydroxide constitute 97.36 percent by

weight of the materials used to produce

July 13, 2026

this substance, based on the predominant

method of production.

(a) Determination. Chloro-isobutene-isoprene

rubber

((C4H8)n

-(C5H7.31Cl0.69)m; n=97.75, m=2.25) is

added to the list of taxable substances

under section 4672(a). Other pertinent

information is as follows:

(1) Predominant method of production:

The predominant method of producing

chloro-isobutene-isoprene rubber involves

reacting a hexane solution of butyl rubber

with elemental chlorine. Butyl rubber is

produced via the cationic copolymerization of butylene with isoprene in the presence of a Friedel-Crafts catalyst at low

temperature, around -100°C.

(2) Stoichiometric material consumption equation:

n C4H8 (butylene) + m C5H8 (isoprene) +

(0.69m) Cl2 (chlorine) + (0.69m) NaOH

(sodium hydroxide) → (C4H8)n

(C5H7.31Cl0.69)m (chloro-isobutene-isoprene

rubber) + (0.69m) NaCl + (0.69m) H2O

(3) Reasons for the determination: The

chloro-isobutene-isoprene rubber ((C4H8)n

-(C5H7.31Cl0.69)m; n=97.75, m=2.25) petition was filed on July 13, 2025. The notice

of filing summarizing the petition and

requesting comments was published in

the Federal Register (90 FR 39468) on

August 15, 2025. The Treasury Department and the IRS received no substantive written comments in response to the

notice of filing. A public hearing was neither requested nor held.

The Secretary followed the process in section 4672(a)(2)(B) in making this determination. A review of the

stoichiometric material consumption

equation and other information in the

petition shows that the taxable chemicals butylene, chlorine, and sodium

hydroxide constitute more than 20 percent by weight of the materials used

in the production of chloro-isobutene-isoprene

rubber

((C4H8)n

-(C5H7.31Cl0.69)m; n=97.75, m=2.25),

based on the predominant method of

production. Therefore, the test in section

4672(a)(2)(B) is satisfied.

(4) Date of determination: June 26,

2026.

(5) Effective dates for addition of

chloro-isobutene-isoprene rubber ((C4H8)n

July 13, 2026

-(C5H7.31Cl0.69)m; n=97.75, m=2.25) to the

List:

(i) Effective date for purposes of the

section 4671 tax (see section 11.01 of Rev.

Proc. 2022-26): October 1, 2026.

(ii) Effective date for purposes of refund

claims under section 4662(e) (see sections

11.02 and 11.03 of Rev. Proc. 2022-26, as

modified by section 3 of Rev. Proc. 202320): April 1, 2023.

(6) Tax rate prescribed by the Secretary: $9.46 per ton. The conversion factors for the taxable chemicals used in the

production of chloro-isobutene-isoprene

rubber ((C4H8)n-(C5H7.31Cl0.69)m; n=97.75,

m=2.25) are 0.96 for butylene, 0.02 for

chlorine, and 0.01 for sodium hydroxide.

The tax rate is calculated by adding the

products of the conversion factor for each

taxable chemical by the tax rate for that

taxable chemical: ((0.96 x $9.74) + (0.02

x $5.40) + (0.01 x $0.56) = $9.46).

(b) Classification numbers.

(1) The Secretary has no basis to object

to the following proposed classification

numbers:

(i) HTSUS number: 4002.39.0000.

(ii) Schedule B number: 4002.39.0000.

(iii) CAS number: 68081-82-3.

(2) The Secretary is unable to confirm the following proposed classification

numbers: Not applicable.

2. Determination to Add Ethylenepropylene-dicyclopentadiene Rubber

((C2H4)m-(C3H6)n-(C10H12)o; m=73.18,

n=26.53, o=0.29) to the List

Arlanxeo USA LLC and Arlanxeo Canada Inc., importers and exporters of ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n-(C10H12)o; m=73.18,

n=26.53, o=0.29), submitted a petition

in accordance with Rev. Proc. 2022-26

requesting to add ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n

-(C10H12)o; m=73.18, n=26.53, o=0.29)

to the List. According to the petition, the

taxable chemicals ethylene and propylene

constitute 98.80 percent by weight of the

materials used to produce this substance,

based on the predominant method of production.

(a) Determination. Ethylene-propylene-dicyclopentadiene rubber ((C2H4)m

-(C3H6)n-(C10H12)o; m=73.18, n=26.53,

o=0.29) is added to the list of taxable sub-

44

stances under section 4672(a). Other pertinent information is as follows:

(1) Predominant method of production:

The predominant method of producing

ethylene-propylene-dicyclopentadiene

rubber is through the catalytic polymerization of ethylene, propylene, and non-conjugated diene monomers in a solution

using various catalysts. Non-conjugated

diene monomers include ethylidene norbornene and dicyclopentadiene. The

non-conjugated diene monomers are produced from cyclopentadiene and butadiene, and cyclopentadiene, respectively.

(2) Stoichiometric material consumption equation:

m C2H4 (ethylene) + n C3H6 (propylene) +

o [2 C5H6 (cyclopentadiene)] → (C2H4)m

(C3H6)n(C10H12)o (ethylene-propylene-dicyclopentadiene rubber)

(3) Reasons for the determination:

The ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n-(C10H12)o;

m=73.18, n=26.53, o=0.29) petition was

filed on July 13, 2025. The notice of filing

summarizing the petition and requesting

comments was published in the Federal

Register (90 FR 39469) on August 15,

2025. The Treasury Department and the

IRS received no written comments in

response to the notice of filing. A public

hearing was neither requested nor held.

The Secretary followed the process

in section 4672(a)(2)(B) in making this

determination. A review of the stoichiometric material consumption equation and

other information in the petition shows

that the taxable chemicals ethylene and

propylene constitute more than 20 percent by weight of the materials used in

the production of ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n

-(C10H12)o; m=73.18, n=26.53, o=0.29),

based on the predominant method of

production. Therefore, the test in section

4672(a)(2)(B) is satisfied.

(4) Date of determination: June 26,

2026.

(5) Effective dates for addition of ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n-(C10H12)o; m=73.18,

n=26.53, o=0.29) to the List:

(i) Effective date for purposes of the

section 4671 tax (see section 11.01 of Rev.

Proc. 2022-26): October 1, 2026.

Bulletin No. 2026–29

(ii) Effective date for purposes of refund

claims under section 4662(e) (see sections

11.02 and 11.03 of Rev. Proc. 2022-26, as

modified by section 3 of Rev. Proc. 202320): April 1, 2023.

(6) Tax rate prescribed by the Secretary: $9.64 per ton. The conversion factors for the taxable chemicals used in the

production of ethylene-propylene-dicyclopentadiene rubber ((C2H4)m-(C3H6)n

-(C10H12)o; m=73.18, n=26.53, o=0.29) are

0.64 for ethylene and 0.35 for propylene.

The tax rate is calculated by adding the

products of the conversion factor for each

taxable chemical by the tax rate for that

taxable chemical: ((0.64 x $9.74) + (0.35

x $9.74) = $9.64).

(b) Classification numbers.

(1) The Secretary has no basis to object

to the following proposed classification

numbers:

(i) HTSUS number: 4002.70.0000.

(ii) Schedule B number: 4002.70.0000.

(iii) CAS number: 25038-36-2.

(2) The Secretary is unable to confirm the following proposed classification

numbers: Not applicable.

Krishna P. Vallabhaneni,

Tax Legislative Counsel.

26 CFR 601.601: Rules and regulations.

(Also Part I, Sections 530A, 2010, 2503, 2505,

2642, 2662, 6019.)

Transfer Tax Safe Harbor

for Certain Contributions to

Trump Accounts

Rev. Proc. 2026-25

SECTION 1. PURPOSE

This revenue procedure provides a

transfer tax safe harbor for certain individual donors who make one or more contributions to Trump accounts established

under section 530A of the Internal Revenue Code (Code).1 In the interest of sound

tax administration, for taxpayers within

the scope of section 4 of this revenue procedure, contributions to Trump accounts

will be treated as completed gifts that are

not gifts of future interests in property

and to which the annual per-donee gift

tax exclusion applies. As a result, taxpayers within the scope of section 4 of this

revenue procedure will not be required to

file gift tax returns reporting such contributions.

SECTION 2. BACKGROUND

01. Trump accounts.

Section 70204 of Public Law 119‑21,

139 Stat. 72 (July 4, 2025), commonly

known as the One, Big, Beautiful Bill Act,

added section 530A and related provisions

concerning Trump accounts to the Code.

A Trump account is a type of traditional

individual retirement account (IRA) that

is established under section 530A for the

exclusive benefit of an eligible individual

or the eligible individual’s beneficiaries

and is designated as a Trump account at

its establishment. An eligible individual is

any individual (i) who has not attained age

18 before the close of the calendar year in

which an election to open an initial Trump

account (initial Trump account election)

is made, (ii) for whom a social security

number has been issued before the date

of the initial Trump account election, and

(iii) for whom the initial Trump account

election is made. The eligible individual

is the owner of the Trump account and is

referred to as the account beneficiary.

A Trump account is subject to certain

special rules that do not apply to other individual retirement arrangements under section 408, most of which apply only during

the period ending before January 1 of the

calendar year in which the account beneficiary attains age 18. This period is referred

to as the growth period. The special rules

that apply only during the growth period

include a restriction on distributions to the

account beneficiary. Specifically, during

the growth period, no distributions may

be made from a Trump account, except for

qualified rollover contributions, a qual-

ified ABLE rollover contribution (made

only during the calendar year in which an

account beneficiary attains age 17), distributions of excess contributions, and distributions upon the death of the account

beneficiary. Consequently, the account

beneficiary of a Trump account generally

does not have access to amounts in the

Trump account during the growth period.

Trump accounts may receive contributions from nonprofits, governments,

employers, and individuals. During the

growth period, a Trump account is subject to an annual contribution limit of

$5,000, adjusted for inflation after 2027.

This annual limit does not apply to the

$1,000 Trump account pilot program contribution, qualified general contributions

(which are funded by nonprofits and certain governmental entities), or qualified

rollover contributions, but does apply to

any other contribution (including contributions from employers).

As of June 4, 2026, nearly six million

elections to open a Trump account have

been received.

.02 Relevant transfer tax rules.

Individuals and their estates generally are subject to gift, estate, or generation-skipping transfer (GST) tax liability

once the value of cumulative transfers

during life and at death exceed the lifetime basic exclusion amount, which is

currently $15 million (adjusted annually

for inflation). Sections 2010(c), 2505(a),

2631(c).2

The gift tax applies to a transfer of

property by way of gift, whether the transfer is in trust or otherwise, whether the gift

is direct or indirect, and whether the property is real or personal, tangible or intangible. Section 2511(a). The term “taxable

gifts” is defined as the total amount of gifts

made during the calendar year, less any

available deductions (e.g., gift tax marital

or charitable deductions). Section 2503(a).

However, there is an annual per-donee gift

tax exclusion from the total amount of the

donor’s gifts during a calendar year. Specifically, each donor may exclude from the

amount of the donor’s gifts those made to

a particular recipient to the extent the total

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

In general terms, if a portability election under section 2010(c)(5) is made by the estate of a predeceasing spouse, the predeceasing spouse’s unused exclusion amount (deceased spousal

unused exclusion or DSUE) is added to the surviving spouse’s basic exclusion amount to increase the value of the surviving spouse’s cumulative transfers exempt from gift and estate tax.

The sum of the basic exclusion amount and any available DSUE amount is the applicable exclusion amount. Section 2010(c)(3).

1

2

Bulletin No. 2026–29

45

July 13, 2026

value of the donor’s gifts to that recipient does not exceed this annual exclusion

amount, provided that those gifts are not

gifts of a future interest in property. Section 2503(b)(1). For calendar year 2026,

the annual exclusion amount (as indexed

for inflation) is $19,000 per individual

recipient, and is available in addition

to the donor’s lifetime basic exclusion

amount (the cumulative amount excluded

from gift and estate taxes).

A taxable gift or transfer at death also

may be subject to GST tax. Section 2601.

Every individual is allowed a lifetime

GST exemption amount, which is equal

to the basic exclusion amount for gift and

estate tax purposes (thus, $15,000,000 for

calendar year 2026). Section 2631(c).

Gifts are also subject to certain reporting requirements. An individual making

one or more gifts generally is required

by section 6019 (and by section 2662 if

the gift also is a direct skip for GST tax

purposes) to file a gift tax return to report

gifts made during the calendar year. The

gift tax return must be filed on or before

the date specified in section 6075(b), generally April 15 of the following calendar

year. If the donor’s total gifts to each

recipient (other than gifts of future interests in property) during the calendar year

are valued at or below the annual per-donee gift tax exclusion amount, those gifts

do not require the filing of a gift tax return.

However, gifts of future interests in property are required to be reported on a gift

tax return because they are not eligible for

the annual per-donee gift tax exclusion.

In FY 2025, the Internal Revenue Service

(IRS) received approximately 300,000

gift tax returns (Form 709).3

SECTION 3. DISCUSSION

The Department of the Treasury

(Treasury Department) and the IRS have

received stakeholder comments and are

aware of public commentary raising questions about the transfer tax consequences

for individual donors who make contri-

butions to Trump accounts, including

whether such contributions constitute taxable gifts that must be reported on a gift tax

return. Such reporting would be required

if contributions to Trump accounts are

treated as gifts of future interests.

The Treasury Department and the IRS

understand the concerns raised in public

comments and recognize that the vast

majority of individual donors to Trump

accounts are unlikely to ever owe federal

gift, estate or GST tax due to the lifetime

basic exclusion amount of $15,000,000

and the corresponding $15,000,000 GST

exemption amount. For many of these

donors, the cost and other burdens of

complying with gift tax reporting requirements could outweigh the anticipated

financial savings benefit of making one or

more contributions to a Trump account.

In addition, gift tax reporting compliance by these donors could dramatically

increase the burden on the IRS to process

gift tax returns for individual donors who

are unlikely to ever be subject to gift,

estate, or GST tax. Given the fact that

nearly 6,000,000 elections to open Trump

accounts have already been received, the

number of gift tax returns filed annually

could be expected to increase from roughly

300,000 to several million. Accordingly,

the Treasury Department and the IRS are

providing a safe harbor, described in section 5 of this revenue procedure, for taxpayers within the scope of section 4 of this

revenue procedure.

SECTION 4. SCOPE

.01 In general. The safe harbor

described in section 5 of this revenue

procedure applies for a particular calendar year only if all of the requirements of

section 4.02 of this revenue procedure are

met.

.02 Requirements.

(1) Taxpayer is an individual;

(2) The only taxable gifts made by the

taxpayer during the calendar year are cash

contributions (in the form of cash, check,

money order, or electronic funds transfer) to one or more Trump accounts, each

made before the calendar year in which

the account beneficiary attains age 18;

(3) The taxpayer’s total gifts during

the calendar year to each individual who

is an account beneficiary, including contributions to that account beneficiary’s

Trump account, do not exceed the annual

exclusion amount under section 2503(b)

($19,000 for 2026);

(4) Such contributions to Trump

accounts made during the calendar year do

not generate for that calendar year either

a gift or GST tax liability, after application of the taxpayer’s remaining applicable credit amount4 against the gift tax, or

remaining GST exemption; and

(5) Disregarding the Trump account

contributions described in section 4.02(2)

of this revenue procedure, no gift tax

return is required to be filed, and no gift

tax return is otherwise filed, for that calendar year by or on behalf of the taxpayer,

whether for GST tax, portability, or other

purposes.5

SECTION 5. SAFE HARBOR

If each of the requirements specified

in section 4.02 of this revenue procedure

is met for a calendar year in which a taxpayer makes contributions to one or more

Trump accounts, each Trump account

contribution made by the taxpayer during

that calendar year will be treated as a completed gift to the account beneficiary that

is not a future interest in property and to

which the annual exclusion applies for

purposes of gift tax, GST tax and gift tax

reporting. As a result, taxpayers within the

scope of section 4 of this revenue procedure will not be required to file a gift tax

return reporting such contributions.

SECTION 6. EXAMPLE

In calendar year 2026 individual donor

(Taxpayer) contributes $5,000 cash to

each of three Trump accounts estab-

2025-I.R.S. Data Book at 4 tbl. 1-2 (2026). See IRS Data Book, Table 1-2, available here: Returns filed, taxes collected and refunds issued | Internal Revenue Service.

The applicable credit amount effectively exempts from federal estate and gift tax an individual’s taxable transfers with a cumulative value not exceeding the applicable exclusion amount.

See section 2010(c).

5

For example, a gift tax return may be required to make affirmative allocations of GST exemption, such as a late allocation of GST exemption to a prior transfer or an allocation at the close

of an estate tax inclusion period (as defined in section 2642(f)(3)), or to make certain GST elections. In addition, a gift tax return may be required as the result of an examination of the estate

tax return.

3

4

July 13, 2026

46

Bulletin No. 2026–29

lished for account beneficiaries A, B, and

C, and makes an additional gift to C of

$13,000 cash. Taxpayer makes no other

gifts during the calendar year and is not

required to, and does not, file a gift tax

return for the calendar year for any other

purpose. The $15,000 in contributions to

Trump accounts do not generate a gift or

GST tax liability, after taking into consideration the Taxpayer’s remaining lifetime

applicable exclusion amount or remaining

GST exemption. Under these facts, the

requirements of section 4.02 of this revenue procedure are met and Taxpayer’s

2026 Trump account contributions will

be treated as completed gifts to A, B, and

C that are not future interests in property.

If instead Taxpayer’s cash gift to C in

2026 is $14,500, the requirement in section 4.02(3) of this revenue procedure is

not met because Taxpayer’s total gifts to

C during calendar year 2026 exceed the

annual per-donee gift tax exclusion under

section 2503(b) of $19,000. Accordingly,

Taxpayer must file a gift tax return for cal-

Bulletin No. 2026–29

endar year 2026 reporting all 2026 gifts,

and must report the Trump account contributions to A, B, and C as gifts of future

interests.

SECTION 7. PAPERWORK

REDUCTION ACT

The Paperwork Reduction Act of 1995

(44 U.S.C. 3501-3520) (PRA) generally

requires that a Federal agency obtain the

approval of the Office of Management and

Budget (OMB) before collecting information from the public, whether such

collection of information is mandatory,

voluntary, or required to obtain or retain

a benefit. 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 OMB.

Section 4 of this revenue procedure

sets forth safe harbor requirements that

taxpayers may follow for Trump account

contributions to be treated as gifts to

47

which the gift tax annual exclusion under

IRC section 2503(b) applies for purposes

of gift tax, GST tax, and gift tax reporting. Taxpayers should maintain records

sufficient to substantiate compliance with

the safe harbor rules. These recordkeeping requirements are considered general

tax records under §1.6001-1(e). For PRA

purposes, general tax records are already

approved by OMB under 1545-0074 for

individual filers. The revenue procedure

does not impose any additional burden for

taxpayers for purposes of PRA.

SECTION 8. DRAFTING

INFORMATION

The principal author of this revenue procedure is Rachel K. Downs of

the Office of Associate Chief Counsel

(Passthroughs, Trusts, and Estates). For

further information regarding this revenue procedure, please contact Rachel K.

Downs at (202) 317-6859 (not a toll-free

call).

July 13, 2026

Section 2010. Unified credit against

estate tax

Section 2505. Unified credit against gift

tax

Section 2662.

Return requirements

26 C.F.R. 20.2010-1: Unified credit

against estate tax; in general.

26 C.F.R. 25.2505-1: Unified credit

against gift tax; in general.

26 C.F.R. 26.2662-1: Generationskipping transfer tax return requirements.

This revenue procedure provides a

safe harbor for individual taxpayers who

(i) make contributions to Trump accounts

established under § 530A of the Internal Revenue Code and (ii) meet certain

requirements. If the requirements are met,

contributions to Trump accounts will be

treated as completed gifts that are not

future interests in property and to which

the annual per-donee gift tax annual exclusion applies under § 2503(b). As a result,

taxpayers within the scope of the revenue

procedure will not be required to file gift

tax returns reporting such contributions.

See Rev. Proc. 2026-25, page 45.

This revenue procedure provides a

safe harbor for individual taxpayers who

(i) make contributions to Trump accounts

established under § 530A of the Internal Revenue Code and (ii) meet certain

requirements. If the requirements are met,

contributions to Trump accounts will be

treated as completed gifts that are not

future interests in property and to which

the annual per-donee gift tax annual exclusion applies under § 2503(b). As a result,

taxpayers within the scope of the revenue

procedure will not be required to file gift

tax returns reporting such contributions.

See Rev. Proc. 2026-25, page 45.

This revenue procedure provides a

safe harbor for individual taxpayers who

(i) make contributions to Trump accounts

established under § 530A of the Internal Revenue Code and (ii) meet certain

requirements. If the requirements are met,

contributions to Trump accounts will be

treated as completed gifts that are not

future interests in property and to which

the annual per-donee gift tax annual exclusion applies under § 2503(b). As a result,

taxpayers within the scope of the revenue

procedure will not be required to file gift

tax returns reporting such contributions.

See Rev. Proc. 2026-25, page 45.

Section 2503(b). Exclusion from Gifts

Section 2642(c)(3). Treatment of certain

direct skips which are nontaxable gifts

Section 6019. Gift Tax Returns

26 C.F.R. 25.2503-2: Exclusions from

gifts.

This revenue procedure provides a

safe harbor for individual taxpayers

who (i) make contributions to Trump

accounts established under § 530A of

the Internal Revenue Code and (ii) meet

certain requirements. If the requirements are met, contributions to Trump

accounts will be treated as completed

gifts that are not future interests in property and to which the annual per-donee

gift tax annual exclusion applies under

§ 2503(b). As a result, taxpayers within

the scope of the revenue procedure will

not be required to file gift tax returns

reporting such contributions. See Rev.

Proc. 2026-25, page 45.

July 13, 2026

26 C.F.R. 26.2642-1(c)(3): Nontaxable

gifts.

This revenue procedure provides a

safe harbor for individual taxpayers who

(i) make contributions to Trump accounts

established under § 530A of the Internal Revenue Code and (ii) meet certain

requirements. If the requirements are met,

contributions to Trump accounts will be

treated as completed gifts that are not

future interests in property and to which

the annual per-donee gift tax annual exclusion applies under § 2503(b). As a result,

taxpayers within the scope of the revenue

procedure will not be required to file gift

tax returns reporting such contributions.

See Rev. Proc. 2026-25, page 45.

48

26 C.F.R. 25.6019-1: Persons required to

file returns.

This revenue procedure provides a

safe harbor for individual taxpayers

who (i) make contributions to Trump

accounts established under § 530A of

the Internal Revenue Code and (ii) meet

certain requirements. If the requirements are met, contributions to Trump

accounts will be treated as completed

gifts that are not future interests in property and to which the annual per-donee

gift tax annual exclusion applies under

§ 2503(b). As a result, taxpayers within

the scope of the revenue procedure will

not be required to file gift tax returns

reporting such contributions. See Rev.

Proc. 2026-25, page 45.

Bulletin No. 2026–29

Part IV

Optional Standard Mileage Rates

Announcement 2026-11

This announcement informs taxpayers that the Internal Revenue Service is modifying Notice 2026-10, 2026-4 I.R.B. 378, by

revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or

moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. This modification results from recent increases in the price of fuel.

The revised standard mileage rates are:

(1) Business

(2) Medical and moving

76 cents per mile

23.5 cents per mile

The mileage rate that applies to the deduction for charitable contributions is fixed under § 170(i) of the Internal Revenue Code at

14 cents per mile.

The revised standard mileage rates set forth in this announcement apply to deductible transportation expenses paid or incurred

for business, medical, or moving expense purposes on or after July 1, 2026, and to mileage allowances that are paid both (1) to an

employee on or after July 1, 2026, and (2) for transportation expenses paid or incurred by the employee on or after July 1, 2026.

The standard mileage rates set forth in Notice 2026-10 continue to apply to deductible transportation expenses paid or incurred for

business, medical, or moving expense purposes before July 1, 2026, and to mileage allowances paid (1) to an employee before July

1, 2026, or (2) with respect to transportation expenses paid or incurred by the employee before July 1, 2026.

All other provisions of Notice 2026-10 remain in effect.

EFFECT ON OTHER DOCUMENTS

Notice 2026-10 is modified.

DRAFTING INFORMATION

The principal author of this announcement is Christian Lagorio of the Office of Chief Counsel (Income Tax and Accounting).

For further information regarding this announcement contact Mr. Lagorio at (202) 317-7005 (not a toll-free number).

Bulletin No. 2026–29

49

July 13, 2026

Deletions From Cumulative List of Organizations, Contributions to Which are

Deductible Under Section 170 of the Code

Announcement 2026-12

Table of Contents

The Internal Revenue Service has revoked its determination that the organizations listed below qualify as organizations described in

sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986.

Generally, the IRS will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the IRS is not precluded from disallowing a

deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely

filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or

determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities

or omissions of the organization that brought about this revocation.

If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described

in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on

June 24, 2026, and would end on the date the court first determines the organization is not described in section 170(c)(2) as more

particularly set for in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband

and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the

organization that were the basis for revocation.

Name Of Organization

Preserve Silver Lake Fund

Community School of New Hope

ACTS Community Development Corporation

Treasure County Senior Citizens

Effective Date of Revocation

08/01/2022

01/01/2022

01/01/2022

07/01/2022

July 13, 2026

50

Location

Lewisberry, PA

New Hope, PA

Brooklyn, NY

Hysham, MT

Bulletin No. 2026–29

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

­effect:

Amplified describes a situation where

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

being extended to apply to a variation of

the fact situation set forth therein. Thus,

if an earlier ruling held that a principle

applied to A, and the new ruling holds that

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

has caused, or may cause, some confusion. It is not used where a position in a

prior ruling is being changed.

Distinguished describes a situation

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

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

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

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

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

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

restate the valid portion of the previously

published ruling in a new ruling that is

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

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

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

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

Suspended is used in rare situations

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

future action such as the issuance of new

or amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2026–29

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

i

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

July 13, 2026

Numerical Finding List1

Bulletin 2026–29

Announcements:

2026-11, 2026-29 I.R.B. 49

2026-12, 2026-29 I.R.B. 50

Notices:

2026-39, 2026-27 I.R.B. 1

2026-38, 2026-28 I.R.B. 30

2026-40, 2026-28 I.R.B. 33

2026-41, 2026-29 I.R.B. 39

2026-42, 2026-29 I.R.B. 41

2026-43, 2026-29 I.R.B. 42

Revenue Procedures:

2026-25, 2026-29 I.R.B. 45

Revenue Rulings:

2026-12, 2026-28 I.R.B. 27

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2026–27 through 2026–52 is in Internal Revenue Bulletin

2025–52, dated December 21, 2025.

1

July 13, 2026

ii

Bulletin No. 2026–29

Finding List of Current Actions on

Previously Published Items1

Bulletin 2026–29

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2026–27 through 2026–52 is in Internal Revenue Bulletin

2025–52, dated December 21, 2025.

1

Bulletin No. 2026–29

iii

July 13, 2026

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue

Bulletins are available at www.irs.gov/irb/.

We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,

we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page

www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.

NW, IR-6230 Washington, DC 20224.