This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for May 2018 used under § 417(e)(3)(D), the 24-month average segment rates applicable for May 2018, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

This notice announces the inflation adjustment factor and phase-out amount for the enhanced oil recovery credit for 2018 calendar year.

Credit for Renewable Electricity Production and Refined Coal Production, and Publication of Inflation Adjustment Factor and Reference Prices for Calendar Year 2018: The notice reports for 2018 the inflation adjustment factor and reference prices used to determine the availability of the section 45 credit for electricity produced from qualified energy resources and refined coal and includes the credit amounts for renewable electricity production and refined coal production.

The guidance announces that under section 613A(c)(6)(C) of the Code, the applicable percentage for purposes of determining percentage depletion on marginal properties for calendar year 2018 is 15 percent.

This guidance announces the applicable reference price for qualified natural gas production from qualified marginal wells during taxable years beginning in 2017.

Rev. Proc. 2018–29 provides new procedures for taxpayers changing their method of accounting for the recognition of income for federal income tax purposes to a method for recognizing revenues described in the new financial accounting standards issued by the Financial Accounting Standards Board and the International Accounting Standards Board (New Standards). In particular, Rev. Proc. 2018–29 provides procedures under section 446 and section 1.446–1(e) to change to an otherwise permissible method of accounting that uses the New Standards to identify performance obligations, allocate transaction price to performance obligations, and/or consider performance obligations satisfied, if such method change is made for the taxable year in which the taxpayer adopts the New Standards.

This revenue procedure provides the List of Automatic Changes to which the automatic change procedures in Rev. Proc. 2015–13, 2015–5 I.R.B. 419, as clarified and modified by Rev. Proc. 2015–33, 2015–24 I.R.B. 1067, and as modified by Rev. Proc. 2017–59, 2017–48 I.R.B. 543, and by section 17.02 of Rev. Proc. 2016–1, 2016–1 I.R.B. 1, apply. The definitions in section 3 of Rev. Proc. 2015–13 apply to this revenue procedure.

The proposed revenue procedure provides issuers of qualified mortgage bonds, as defined in section 143(a) of the Internal Revenue Code, and issuers of mortgage credit certificates as defined in section 25(c), with the United States median gross income figure most recently computed by the Department of Housing and Urban Development (HUD). The proposed revenue procedure also provides these issuers with guidance concerning the area median gross incomes as computed by HUD. Issuers of qualified mortgage bonds (QMB) and mortgage credit certificates (MCC) must use these income figures in determining whether the income limitation placed on the beneficiaries of the mortgages and certificates may be increased because the residences to be financed are located in high housing cost areas. See sections 25(c)(A)(iii)(IV) and 143(f)(5).