This Announcement is issued pursuant to § 521(b) of Pub. L. 106-170, the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the Secretary of the Treasury to report annually to the public concerning advance pricing agreements (APAs) and the Advance Pricing and Mutual Agreement Program (APMA Program), formerly known as the Advance Pricing Agreement Program (APA Program). This twenty-fifth report describes the experience, structure, and activities of the APMA Program during calendar year 2023.

This Notice of Proposed Rulemaking revises the regulations pertaining to the advance notice to be provided to taxpayers prior to IRS contact with third parties to conform to the new statutory language of section 7602(c) enacted as part of the Taxpayer First Act of 2019 (TFA), Public Law 116-25 (133 Stat. 981). The proposed regulations also provide, pursuant to the Secretary’s authority in section 7602(c)(1)(B), exceptions to the 45-day advance notice requirement where delaying contact with third parties for 45 days after providing notice to the taxpayer would impair tax administration.

REG-101552-24, 2024-13 I.R.B. 741 (March 25, 2024) contains errors in the second sentence of the second column on page 743 and in the first sentence of the third column on page 746. These sentences incorrectly describe the requirement that members in an unincorporated organization reserve the right separately to take in kind or dispose of their pro rata shares of electricity produced, extracted or used, or any associated renewable energy credits or similar credits. This requirement was intended to be conjunctive, applying to both electricity and associated credits. The sentence on page 743 is corrected to read, “Second, the unincorporated organization’s members must enter into a joint operating agreement with respect to the applicable credit property in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced, extracted, or used, and any associated renewable energy credits or similar credits.” The sentence on page 746 is corrected to read, “(B) The members of which enter into a joint operating agreement in which the members reserve the right separately to take in kind or dispose of their pro rata shares of the electricity produced, extracted, or used, and any associated renewable energy credits or similar credits”.

This notice modifies Notice 2023-29, 2023-29 I.R.B. 1 (July 17, 2023), clarified by Notice 2023-45, 2023-29 I.R.B. 317 (July 17, 2023), by expanding the Nameplate Capacity Attribution Rule under section 4.02(1)(b) of Notice 2023-29 to include additional attribution property and by adding two 2017 North American Industry Classification System (NAICS) industry codes to the table in section 3.03(2) of Notice 2023-29 for purposes of determining the Fossil Fuel Employment rate (as defined in section 3.03(2) of Notice 2023-29).

This notice provides guidance for qualified student loan bonds to clarify certain requirements for tax-exempt bond financing for loan programs of general application approved by a State under § 144(b)(1)(B) (State Supplemental Loan programs). Specifically, this notice addresses eligibility of borrowers of loans through State Supplemental Loan programs and the loan size limitation for State Supplemental Loans. This notice also provides guidance on whether an issue of State or local bonds the proceeds of which are used to finance or refinance qualified student loans or to finance qualified mortgage loans is a refunding issue.

This Notice of Proposed Rulemaking (NPRM) would add a new regulation section promulgated under section 6011 of the Code to establish that Charitable Remainder Annuity Trust (CRAT) transactions described in the NPRM are listed transactions for purposes of Treasury Regulation § 1.6011-4 and sections 6111 and 6112. The transaction at issue is one in which taxpayers purport to eliminate recognition of ordinary income and/or capital gain on appreciated property contributed to a CRAT when the CRAT sells that property and purchases a single premium immediate annuity (SPIA). Taxpayers misapply the rules governing CRAT’s upon the sale of the appreciated property by the CRAT and also misapply the rules concerning the SPIA by treating the beneficiaries as the owners of the SPIA, rather than it being an asset of the CRAT funding the annuity payments from the trust.

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) are issuing this revenue procedure to provide the process under § 48(e) of the Internal Revenue Code to apply for an allocation of environmental justice solar and wind capacity limitation (Capacity Limitation) as part of the low-income communities bonus credit program (Program) for the 2024 Program year. Additionally, this revenue procedure describes how the Capacity Limitation for the 2024 Program year will be divided across the facility categories described in §§ 48(e)(2)(A)(iii) and 1.48(e)-1(b)(2), the Category 1 sub-reservation described in § 1.48(e)-1(i)(1), and the additional selection criteria application options described in § 1.48(e)-1(h). Receipt of an allocation of Capacity Limitation increases the amount of an energy investment credit determined under § 48(a) for the taxable year in which certain solar and wind-powered electricity generation facilities are placed in service.

26 CFR 601.201: Rulings and determination letters.

Fringe benefits aircraft valuation formula. For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2024 are set forth.

26 CFR 1.61-21: Taxation of Fringe Benefit