This revenue procedure provides a safe harbor relating to the allocation of section 45Q credits for the sequestration of carbon oxide to partners in a partnership for purposes of section 704(b) of the Code. If taxpayers satisfy the requirements of the safe harbor, the revenue procedure provides that the Internal Revenue Service will treat partnerships as properly allocating the section 45Q credit in accordance with section 704(b) and the regulations thereunder.

26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of correct tax liability.

(Also: §§ 45Q, 704, 1.704-1)

This revenue procedure provides procedures applicable to a taxpayer in a farming business regarding the application of § 263A of the Internal Revenue Code (Code). Prior to the enactment of Public Law 115-97, 131 Stat. 2054 (Dec. 22, 2017), commonly referred to as the Tax Cuts and Jobs Act (TCJA), a taxpayer in a farming business could elect under § 263A(d)(3) to have § 263A not apply to certain plants produced by the taxpayer’s farming business. Section 13102 of the TCJA added new § 263A(i) to the Code, which provides that § 263A does not apply to a taxpayer, other than a tax shelter (as defined in § 448(d)(3) of the Code), for a taxable year in which the taxpayer qualifies as a small business taxpayer by satisfying the gross receipts test in § 448(c) of the Code. This revenue procedure provides the exclusive procedures for a taxpayer that qualifies for the § 263A(i) small business taxpayer exemption to revoke its prior election under § 263A(d)(3) and apply the exemption under § 263A(i) in the same taxable year. In addition, this revenue procedure provides the exclusive procedures for a taxpayer that qualifies for and wishes to make an election under § 263A(d)(3) in the same taxable year that it no longer qualifies for the exemption under § 263A(i).

26 CFR 601.601: Rules and regulations.

(Also Part 1, §§ 168, 263A, 446, 448; 1.168(i)-4, 1.168(k)-1, 1.168(k)-2, 1.263A-1, 1.263A-4, 1.446-1, 1.448-1T.)

This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for February 2020 used under § 417(e)(3)(D), the 24-month average segment rates applicable for February 2020, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).

Beginning of Construction for the Credit for Carbon Oxide Sequestration under Section 45Q. Notice 2020-12 provides guidance on the determination of when construction has begun on a qualified facility or on carbon capture equipment that may be eligible for the Section 45Q Credit. This notice provides two methods for taxpayers to establish the beginning of construction requirement (Physical Work Test and Five Percent Safe Harbor), a Continuity Requirement for both methods, guidance on transfers of ownership of a qualified facility or carbon capture equipment, and additional guidance applicable to the beginning of construction requirement.

Notice 2020-13 provides for adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for the 2020 tax year. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States. If the limitation on housing expenses is higher for the 2020 tax year than the adjusted limitations on housing expenses provided in Notice 2019-24, qualified taxpayers may apply the adjusted limitations in this notice for the 2020 tax year to their 2019 tax year.

Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for March 2020.

(Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872.)