Source: https://www.irs.gov/irb/2009-25_IRB
Timestamp: 2019-04-22 20:44:09+00:00

Document:
This announcement is temporarily suspending the reporting requirement for FBARs due June 30, 2009, for those persons who are not citizens, residents, or domestic entities. All persons may rely on the definition of “United States person” found in the instructions to the prior version of the FBAR (July 2000 version) to determine whether they have a filing obligation. All other requirements of the current version of the FBAR form and instructions (revised October 2008) still apply.
This notice provides that, if the Treasury Department (or an entity acting on its behalf) acquires preferred stock, common stock, warrants to purchase common stock or other types of equity of a financial institution or other entity pursuant to the Emergency Economic Stabilization Act of 2008 (EESA), then such acquisition is not a change in control event with respect to which a payment can be made under a nonqualified deferred compensation plan pursuant to section 409A(2)(2)(A)(v) of the Code.
Election of investment tax credit in lieu of production tax credit; coordination with Department of Treasury grants for specified energy property in lieu of tax credits. This notice provides a description of the procedures that taxpayers will be required to follow to make an irrevocable election to take the investment tax credit for energy property under section 48 of the Code in lieu of the production tax credit under section 45.
Nonbusiness energy property credit. This notice provides procedures that manufacturers may follow to certify property as qualified nonbusiness energy property under § 25C of the Code, as well as guidance regarding the conditions under which taxpayers seeking to claim the § 25C credit may rely on a manufacturer’s certification. This notice also includes transition rules to provide taxpayers with guidance concerning the interaction of the effective date and timing provisions of the Energy Policy Act, the Energy Improvement and Extension Act, and the American Recovery and Reinvestment Tax Act. Notice 2006-26 superseded.
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in June 2009; the 24-month average segment rates; the funding transitional segment rates applicable for June 2009; and the minimum present value transitional rates for May 2009.
This document contains corrections to proposed regulations (REG-119532-08, 2009-20 I.R.B. 1017) that provide guidance on the portion of trust property includable in the grantor’s gross estate if the grantor has retained the use of the property, the right to an annuity, unitrust, graduated retained interest, on other payment from such property for life, for any period not ascertainable without reference to the grantor’s death, or for a period that does not in fact end before the grantor’s death.
This document contains corrections to final and temporary regulations (T.D. 9448, 2009-20 I.R.B. 942) relating to the use of actuarial tables in valuing annuities, interests for life or terms of years and remainder or reversionary interests.
This notice provides guidance with respect to whether a transaction under the Emergency Economic Stabilization Act of 2008, as amended (12 U.S.C. 5021 et seq.) (EESA), that involves the acquisition by, or on behalf of, the Treasury Department of preferred stock, common stock, warrants to purchase common stock, or other types of equity of a financial institution or other entity, is an event with respect to which a payment can be made under a nonqualified deferred compensation plan pursuant to § 409A(a)(2)(A)(v) of the Internal Revenue Code (Code) and § 1.409A-3(a)(5) of the Income Tax Regulations (a permissible § 409A payment event). This notice clarifies that, for purposes of § 1.409A-3(a)(5), such a transaction is not a change in ownership or effective control, or a change in the ownership of a substantial portion of the assets of the corporation and, accordingly, is not a permissible § 409A payment event. The Treasury Department and the IRS intend to amend the regulations under § 409A to incorporate the guidance set out in this notice. The guidance in this notice is effective for, and the amended regulations will be applicable to, transactions occurring on or after June 4, 2009.
Section 409A prescribes certain requirements applicable to nonqualified deferred compensation plans. If a plan does not meet those requirements, participants in the plan are required to include immediately compensation otherwise deferred under the plan in income and pay taxes on such income. As provided by § 409A(a)(1)(A)(i), a nonqualified deferred compensation plan must comply with the requirements of § 409A(a) both in form and in operation.
Section 409A(a)(2)(A) provides that compensation deferred under a nonqualified deferred compensation plan may not be distributed earlier than one of six specified events or times that include, in the case of a plan maintained by a corporation, to the extent provided by the Secretary of the Treasury (Secretary), a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation. Section 409A(e)(2) provides that the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of section 409A, including regulations relating to changes in ownership and control of a corporation for purposes of section 409A(a)(2)(A)(v).
The Treasury Department and the IRS issued final regulations under § 409A in April 2007 (T.D. 9321, 2007-1 C.B. 1123 [72 Fed. Reg. 19234] (April 17, 2007)). The final regulations apply to taxable years beginning on or after January 1, 2009. Section 1.409A-3(a) provides that the requirements of § 409A(a)(2)(A) are met only if the plan provides that an amount of deferred compensation under the plan may be paid only upon one of the six payment triggers set forth in § 1.409A-3(a). These permissible payment triggers include, under § 1.409A-3(a)(5), a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation (in accordance with § 1.409A-3(i)(5)). Section 1.409A-3(i)(5) provides a definition of a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of the corporation (collectively referred to in this notice as a change in control event).
As part of its effort to restore liquidity and stability to the financial system, the Treasury Department has developed several programs and may develop additional programs. Under these programs, the Treasury Department has participated, and may participate in the future, in numerous transactions with financial institutions and other entities that involve the acquisition by, or on behalf of, the Treasury Department of preferred stock, common stock, warrants to purchase common stock, or other types of equity of the financial institution or other entity (collectively referred to as Treasury EESA Equity Acquisition Transactions).
The Treasury Department and the IRS anticipate that most of the financial institutions and other entities involved in Treasury EESA Equity Acquisition Transactions are, and will be, sponsors of nonqualified deferred compensation plans subject to § 409A of the Code. Questions have arisen whether the Federal government’s acquisition of an equity interest in a financial institution or other entity in connection with a Treasury EESA Equity Acquisition Transaction constitutes a change in control event and accordingly a permissible § 409A payment event.
The final regulations under § 409A were promulgated before the enactment of EESA. Therefore, the final regulations do not explicitly provide guidance with respect to whether a Treasury EESA Equity Acquisition Transaction constitutes a change in control event and a permissible § 409A payment event.
The Treasury Department and IRS have determined that a Treasury EESA Equity Acquisition Transaction is not a change in control event under § 409A and the final regulations. Treating a Treasury EESA Equity Acquisition Transaction as a change in control event and, therefore, a permissible payment event, would be inconsistent with the purposes of EESA and § 409A, and would be contrary to the public interest. For example, payment of nonqualified deferred compensation amounts as a result of a Treasury EESA Equity Acquisition Transaction could reduce the liquidity of the financial institution or other entity, which is directly contrary to the purpose of a Treasury EESA Equity Acquisition Transaction.
For purposes of § 409A, a Treasury EESA Equity Acquisition Transaction is not a change in control event and, accordingly, is not a permissible § 409A payment event. (This notice does not address whether a Treasury EESA Equity Acquisition Transaction constitutes a change in control event for any other purpose). Accordingly, a nonqualified deferred compensation plan will fail to satisfy the requirements of § 409A(a) if a payment is made on account of a Treasury EESA Equity Acquisition Transaction and will not fail to satisfy the requirements of § 409A(a) merely because the plan fails to make a payment on account of a Treasury EESA Equity Acquisition Transaction. A nonqualified deferred compensation plan will not fail to satisfy the plan document requirements of § 409A(a) and the regulations thereunder merely because the plan fails to explicitly provide that a Treasury EESA Equity Acquisition Transaction will not trigger a payment under the plan, regardless of whether the plan incorporates the definition of a change in control event by reference to the final regulations or sets forth a definition of a change in control event that otherwise meets the requirements of the final regulations. The guidance in this notice is effective June 4, 2009.
The Treasury Department and the IRS intend to amend the regulations under § 409A(a) to incorporate the guidance set out in this notice. Such amended regulations will be applicable to Treasury EESA Equity Acquisition Transactions entered into on or after June 4, 2009.
The principal author of this notice is Bill Schmidt of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), although other Treasury and IRS officials participated in its development. For further information on the provisions of this notice, contact Bill Schmidt at (202) 927-9639 (not a toll-free number).
This notice describes the procedures that taxpayers will be required to follow to make the irrevocable election to take the investment tax credit determined under § 48 of the Internal Revenue Code in lieu of the production tax credit under § 45 with respect to certain renewable energy facilities. This election was created by the American Recovery and Reinvestment Tax Act of 2009, Division B of Pub. L. 111-5, 123 Stat 115 (the Act), which was enacted on February 17, 2009. This notice includes information about election procedures and the documentation required to complete the election. The notice also describes the coordination of the tax credits under §§ 45 and 48 with Treasury Department grants for specified energy property under § 1603 of the Act (Section 1603 Grants).
.01 In General. Section 48(a)(5) allows taxpayers to irrevocably elect to take the investment tax credit determined under § 48 in lieu of the production tax credit under § 45 with respect to certain renewable energy facilities. Section 46 provides for the investment tax credit and includes in that credit the energy credit determined under § 48. Except as otherwise provided in § 48(c)(1)(B), (2)(B), and (3)(B), the energy credit for any taxable year is the energy percentage of the basis of each energy property placed in service during the taxable year. Section 48(a)(1). Section 48(a)(5)(A) provides that qualified property that is part of a qualified investment credit facility shall be treated as energy property for purposes of § 48, and that the energy percentage with respect to such property shall be 30 percent. Section 48(a)(5)(C) provides that taxpayers may elect to treat certain qualified facilities (within the meaning of § 45) as qualified investment credit facilities. Section 48(a)(5)(B) provides that no credit shall be allowed under § 45 for any taxable year with respect to any qualified investment credit facility.
(3) with respect to which no credit has been allowed under § 45.
(1) The name, address, taxpayer identification number, and telephone number of the taxpayer.
(i) A detailed technical description of the facility, including generating capacity.
(ii) A detailed technical description of the energy property placed in service during the taxable year as an integral part of the facility, including a statement that the property is an integral part of such facility.
(iii) The date that the energy property was placed in service.
(iv) An accounting of the taxpayer’s basis in the energy property.
(v) A depreciation schedule reflecting the taxpayer’s remaining basis in the energy property after the energy credit is claimed.
(3) A statement that the taxpayer has not and will not claim a Section 1603 Grant for property for which the taxpayer is claiming the energy credit.
.02 Effective Date. The election to take the investment tax credit determined under § 48 in lieu of the production tax credit under § 45 is available for facilities placed in service after December 31, 2008.
.03 Deadline for Making Election. The election to take the investment tax credit determined under § 48 in lieu of the production tax credit under § 45 must be made on a timely filed return (including extensions) for the taxable year in which facility that is to be treated a qualified investment credit facility is placed in service.
.04 Revocation. Section 48(a)(5)(C) makes the election to treat a facility as a qualified investment credit facility irrevocable.
In order to satisfy the recordkeeping requirements of § 6001 and the regulations thereunder, a taxpayer that elects to claim the investment tax credit determined under § 48 in lieu of the production tax credit under § 45 must retain adequate books and records. This requirement specifically includes the statement described in section 2 of this notice, the Form 3468, and all supporting documentation relevant to the election and the taxpayer’s credit claim under § 48, so that, for any taxable year, the IRS may verify that the property with respect to which the taxpayer claimed the credit satisfies the applicable requirements of § 48 and this notice.
Section 48(d) governs the interaction between the investment tax credit determined under § 48 and Section 1603 Grants. Generally, § 1603 of the Act requires the Treasury Department to make grants to persons who place in service specified energy property (including certain energy property eligible for the investment tax credit determined under § 48 or the production tax credit under § 45). Section 48(d)(1) provides, in the case of property with respect to which the Treasury makes a Section 1603 Grant, that no credit may be determined under § 48 or § 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year.
The collection of information contained in this notice has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-2145.
The collection of information is in section 2 of this notice. This information is required to be collected and retained in order to ensure that energy property meets the requirements for the investment tax credit determined under § 48. This information will be used to determine whether the property for which the energy credit is claimed is energy property that qualifies for the credit.
The collection of information is required to obtain a benefit.
The respondents are taxpayers providing a statement and filing a Form 3468 in order to make the election to claim the investment tax credit determined under § 48 in lieu of the production tax credit under § 45. The estimated total annual reporting burden is 100 hours. The estimated annual burden per respondent varies from 50 to 70 minutes, depending on individual circumstances, with an estimated average burden of 60 minutes to complete the statement required to claim the credit. The estimated number of respondents is 100. The estimated frequency of responses is once.
This notice updates interim guidance, pending the issuance of regulations, relating to the credit for nonbusiness energy property under § 25C of the Internal Revenue Code. Specifically, this notice provides procedures that manufacturers may follow to certify property as either eligible building envelope components or qualified energy property, as well as guidance regarding the conditions under which taxpayers seeking to claim the § 25C credit may rely on a manufacturer’s certification. Additionally, this notice provides guidance about changes made to the § 25C credit by the Energy Improvement and Extension Act of 2008 (EIEA), Division B of Pub. L. No. 110-343, 122 Stat. 3765 (2008), and the American Recovery and Reinvestment Tax Act of 2009 (ARRTA), Division B of Pub. L. No. 111-5, 123 Stat. 115 (2009). This notice also provides transition rules for certain nonbusiness energy property acquired before June 1, 2009, and for certain nonbusiness energy property placed in service after December 31, 2008. The Internal Revenue Service (Service) and the Treasury Department expect that the regulations will incorporate the rules set forth in this notice.
.01 Energy Policy Act of 2005. Section 1333 of the Energy Policy Act of 2005 (EPACT), Pub. L. No. 109-58, 119 Stat. 594 (2005), added § 25C to the Internal Revenue Code. Section 25C, as added by EPACT, provided a credit for amounts paid or incurred for qualified energy efficiency improvements installed during a taxable year and for residential energy property expenditures paid or incurred by a taxpayer during the taxable year. Section 25C, as added by EPACT and as modified by EIEA and ARRTA, defines qualified energy efficiency improvements as building envelope components that satisfy specified efficiency standards (eligible building envelope components) and the requirements listed in section 2.05(1) of this notice and defines residential energy property expenditures as expenditures for energy property that satisfies specified energy standards (qualified energy property) and the requirements listed in section 2.05(1) of this notice. The credit was available for property placed in service after December 31, 2005, and before January 1, 2008. Notice 2006-26, 2006-1 C.B. 622, as clarified by Notice 2006-53, 2006-1 C.B. 1180, provides guidance on the credit under § 25C for property placed in service after December 31, 2005, and before January 1, 2008.
.02 EIEA. Section 302 of EIEA reinstated and modified the § 25C credit for property placed in service during 2009. Neither EPACT nor EIEA provided any credit under § 25C for property placed in service during 2008.
(2) The amount of expenditures for residential energy property.
The maximum amount of credit allowed was $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy-efficient building property. The maximum amount of the credit allowable to a taxpayer under § 25C for all taxable years was $500 ($200 in the case of amounts paid or incurred for exterior windows (including storm windows and skylights)).
(1) Eligible Building Envelope Components.
(ii) May be taken into account in determining whether the building thermal envelope requirements established by the International Energy Conservation Code (IECC) are satisfied.
(b) An exterior window, skylight, or door (other than a storm window or storm door) that meets or exceeds the prescriptive criteria established by the IECC for the climate zone in which the window, skylight, or door is installed.
(c) A storm window that, in combination with the exterior window over which it is installed, meets or exceeds the prescriptive criteria established by the IECC for the climate zone in which such storm window is installed.
(d) A storm door that, in combination with a wood door that is assigned a default U factor by the IECC, does not exceed the default U factor requirement assigned to such combination by the IECC.
(ii) meets or exceeds either of the applicable Energy Star program requirements. The applicable Energy Star program requirements for this purpose are those in effect at the time the expenditures for the roof are actually paid or incurred and those in effect at the time the expenditures are treated as made under § 25D(e)(8). (See § 25C(e)(1), which requires the application of rules similar to those of § 25D(e)(8) (relating to the time at which expenditures are deemed made for purposes of the credit under § 25D)).
(ii) meets or exceeds either of the applicable Energy Star program requirements (within the meaning of section 2.03(1)(e)(ii) of this notice).
(a) An electric heat pump water heater that yields an energy factor of at least 2.0 in the standard Department of Energy (DOE) test procedure.
(b) An electric heat pump that has a heating seasonal performance factor (HSPF) of at least 9, a seasonal energy efficiency ratio (SEER) of at least 15, and an energy efficiency ratio (EER) of at least 13.
(c) A central air conditioner that achieves the highest efficiency tier that has been established by the Consortium for Energy Efficiency, and is in effect on January 1, 2006.
(d) A natural gas, propane, or oil water heater that has an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent.
(e) A stove that uses the burning of biomass fuel to heat a dwelling unit or to heat water for use in such a dwelling unit, and that has a thermal efficiency rating of at least 75 percent as measured using a lower heating value.
(f) A natural gas, propane, or oil furnace or hot water boiler that achieves an annual fuel utilization efficiency rate of not less than 95.
(g) A fan that is used in a natural gas, propane, or oil furnace and has an annual electricity use of no more than two percent of the total annual site energy use of the furnace (as determined in the standard DOE test procedure).
(3) Applies new energy efficiency standards for certain types of property (see sections 4.01 and 5.01 of this notice).
(a) The item is installed in or on a dwelling unit located in the United States and, at the time of installation, the dwelling unit is owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of § 121). Thus, the credit is only available for existing homes. See § 45L for the credit applicable to new homes.
(b) The original use of the item commences with the taxpayer.
(c) In the case of a building envelope component described in section 2.03(1) or 4.01 of this notice, the component reasonably can be expected to remain in use for at least five years. For this purpose, a component will be treated as reasonably expected to remain in use for at least five years if the manufacturer offers, at no extra charge, at least a two-year warranty providing for repair or replacement of the component in the event of a defect in materials or workmanship. If the manufacturer does not offer such a warranty, all relevant facts and circumstances are taken into account in determining whether the component reasonably can be expected to remain in use for at least five years.
(2) Time of Expenditure. The credit is allowed for amounts paid or incurred by the taxpayer during the taxable year. Section 25C(e)(1) incorporates § 25D(e)(8), relating to the time expenditures are treated as made. Accordingly, except as provided in section 2.03(1)(e) and (f) of this notice, expenditures will be treated as made for purposes of § 25C when the original installation of the property is complete or, in the case of reconstruction, when the original use of the reconstructed property begins.
Manufacturers and taxpayers may treat any reference in this notice to the International Energy Conservation Code (IECC) as a reference to (1) the 2001 Supplement of the 2000 International Energy Conservation Code, (2) the 2004 Supplement of the 2003 International Energy Conservation Code, or (3) the 2009 International Energy Conservation Code (2009 IECC). However, a reference to the 2009 IECC is a reference only to the 2009 International Energy Conservation Code.
(b) Meets the prescriptive criteria for such material or system established by the 2009 IECC, as such Code (including supplements) was in effect on February 17, 2009.
(b) Meets the prescriptive criteria for such component established by the IECC.
(5) Metal Roof. Any metal roof described in section 2.03(1)(e) of this notice (ARRTA did not change the efficiency standard for a metal roof).
(6) Asphalt Roof. Any asphalt roof described in section 2.03(1)(f) of this notice (ARRTA did not change the efficiency standard for an asphalt roof).
.02 Installation Costs. With respect to eligible building envelope components, the credit is allowed only for amounts paid or incurred to purchase the components. The credit is not allowed for amounts paid or incurred for the onsite preparation, assembly, or original installation of the components.
(2) The facts and circumstances otherwise establish that the component’s principal purpose is to serve a function other than the reduction of heat loss or gain.
(1) Electric Heat Pump Water Heater. An electric heat pump water heater described in section 2.03(2)(a) of this notice (ARRTA did not change the efficiency standard for an electric heat pump water heater).
(2) Electric Heat Pump. An electric heat pump that achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.
(3) Central Air Conditioner. A central air conditioner that achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.
(4) Natural Gas, Propane, or Oil Water Heater. A natural gas, propane, or oil water heater that has an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.
(5) Biomass-Burning Stove. A biomass-burning stove described in section 2.03(2)(e) of this notice (the retroactive clarifying change ARRTA made to the efficiency standard for a stove that burns biomass is reflected in section 2.03(2)(e)).
(6) Natural Gas Furnace. A natural gas furnace described in section 2.03(2)(f) of this notice (ARRTA did not change the efficiency standard for a natural gas furnace).
(7) Natural Gas Hot Water Boiler. A natural gas hot water boiler that achieves an annual fuel utilization efficiency rate of not less than 90.
(8) Propane Furnace. A propane furnace described in section 2.03(2)(f) of this notice (ARRTA did not change the efficiency standard for a propane furnace).
(9) Propane Hot Water Boiler. A propane hot water boiler that achieves an annual fuel utilization efficiency rate of not less than 90.
(10) Oil Furnace. An oil furnace that achieves an annual fuel utilization efficiency rate of not less than 90.
(11) Oil Hot Water Boiler. An oil hot water boiler that achieves an annual fuel utilization efficiency rate of not less than 90.
(12) Advanced Main Air Circulating Fan. A fan described in section 2.03(2)(g) of this notice (ARRTA did not change the efficiency standard for a fan).
.02 Installation Costs. For qualified energy property, the credit is allowed only for amounts paid or incurred to purchase qualified energy property and for expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.
(3) A taxpayer may treat this percentage of the total amount paid or incurred to purchase and install the furnace as the amount paid or incurred to purchase and install the advanced main air circulating fan.
.04 Geothermal Heat Pump Property. The credit under § 25D for geothermal heat pump property expenditures in taxable years beginning after December 31, 2007, is described in Notice 2009-41, 2009-19 I.R.B. 933.
.01 Requirements Applicable to Manufacturer. The manufacturer of a building envelope component or energy property may certify to a taxpayer that the component is an eligible building envelope component or that the energy property is qualified energy property by providing the taxpayer with a certification statement that satisfies the requirements of sections 6.04, 6.05 and 6.06 of this notice. The certification statement may be provided by including a written copy of the statement with the packaging of the component or property, in printable form on the manufacturer’s website, or in any other manner that will permit the taxpayer to retain the certification statement for tax recordkeeping purposes.
.02 Taxpayer Reliance. Except as provided in sections 6.03 and 6.08 of this notice, a taxpayer may rely on a manufacturer’s certification that a building envelope component is an eligible building envelope component or that energy property is qualified energy property. A taxpayer is not required to attach the certification statement to the return on which the credit is claimed. However, § 1.6001-1(a) of the Income Tax Regulations requires that a taxpayer maintain such books and records as are sufficient to establish the entitlement to, and amount of, any credit claimed by the taxpayer. Accordingly, a taxpayer claiming a credit for an eligible building envelope component or qualified energy property should retain the certification statement as part of the taxpayer’s records for purposes of § 1.6001-1(a).
.03 Reliance Permitted Only for Installation Consistent with Certification. A taxpayer may rely on a manufacturer’s certification in the case of a building envelope component only if the building envelope component is installed in a manner that is consistent with the manufacturer’s certification. For example, in the case of a storm window (or door), a taxpayer may rely on the manufacturer’s certification only if the component is installed over an exterior window (or door) of a class identified in the certification statement as one which in combination with the storm window (or door) has a U factor and SHGC of 0.30 or below.
(1) The name and address of the manufacturer.
(2) Identification of the class of eligible building envelope component as listed in section 4.01 of this notice or the class of qualified energy property as listed in section 5.01 of this notice in which the component or property is included.
(3) The make, model number, and any other appropriate identifiers of the component or property.
(4) A statement that the component is an eligible building envelope component as defined in section 4.01 of this notice or the property is qualified energy property as defined in section 5.01 of this notice. In the case of a certification provided after June 1, 2009, this statement may be provided only for components that are eligible building envelope components and property that is qualified energy property under the rules applicable to components and property placed in service after February 17, 2009.
(1) In the case of an exterior window, skylight, or door (other than a storm window or storm door), a statement that the exterior window, skylight, or door has a U factor and SHGC of 0.30 or below.
(2) In the case of a storm window, the classes of exterior window (e.g., single pane; double pane, clear glass; double pane, Low-E coating) over which the storm window may be installed and that, in combination with the storm window, will have a U factor and SHGC of 0.30 or below.
(3) In the case of a storm door, the classes of exterior door (e.g., 1-3/4” insulated steel, 50 percent or less glazing, double pane, clear glass) over which the storm door may be installed and that, in combination with the storm door, will have a U factor and SHGC of 0.30 or below.
.06 Content of Manufacturer’s Certification; Required Declaration.
.07 Manufacturer’s Records. A manufacturer that certifies to a taxpayer that a component is an eligible building envelope component or that property is qualified energy property must retain in its records documentation establishing that the component or property satisfies the applicable conditions of section 4.01 or 5.01 of this notice. In the case of an exterior window, the manufacturer must retain a record of its National Fenestration Rating Council rating. If a manufacturer certifies the percentage of the cost of the furnace allocable to an advanced main air circulating fan, the manufacturer must maintain in its records the basis for such allocation. The manufacturer must, upon request, make such documentation available for inspection by the Service.
(2) Under § 6701 for aiding and abetting an understatement of tax liability (in the amount of $1,000 per return on which a credit is claimed in reliance on the certification).
.09 Availability of Certification Information. Manufacturers are encouraged to provide a listing of eligible building envelope components and qualified energy property and applicable certification information on their websites to facilitate taxpayer identification of qualified components and energy property.
.10 Special Rule for Energy Star. The Energy Star label designates that the product has met energy efficiency guidelines set by the EPA and the DOE. Not all Energy Star labeled building envelope components qualify for the tax credit under § 25C. The component must meet the definition of an eligible building envelope component in § 25C. Taxpayers can no longer rely on an Energy Star label in claiming the § 25C credit for exterior windows and skylights placed in service after the enactment of the ARRTA. Similarly, an Energy Star label does not establish that a product is qualified energy property. The product must meet the definition of qualified energy property in § 25C.
SECTION 7. EFFECTIVE DATES AND TRANSITION RULES.
.01 For amounts that are paid or incurred in taxable years beginning after December 31, 2008, with respect to property placed in service in calendar years 2009 and 2010, including amounts paid or incurred for property placed in service before February 18, 2009, the credit is computed in accordance with sections 2.04(1) and (2) of this notice.
.02 The efficiency standards listed for EIEA in section 2.03 of this notice apply to property placed in service before February 18, 2009, and the efficiency standards listed for ARRTA in sections 4.01 and 5.01 of this notice apply to property placed in service after February 17, 2009.
(3) A manufacturer’s certification made in accordance with the procedures of Notice 2006-26, as clarified by Notice 2006-53, for certifications issued after February 17, 2009, provided that the manufacturer’s certification statement clearly indicates that the item complies with the efficiency standards contained in ARRTA.
.04 For amounts that are paid or incurred in taxable years beginning before December 31, 2008, with respect to property placed in service in calendar year 2009, the credit is computed in accordance with section 2.02 of this notice.
The collection of information contained in this notice has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1989.
The collections of information in this notice are in section 6. This information is required to be collected and retained in order to ensure that property meets the requirements for the nonbusiness energy credit under § 25C. This information will be used to determine whether the property for which manufacturers provide certifications is property that qualifies for the credit. The collection of information is required to obtain a benefit from manufacturers’ certification statements that property qualifies for the credit. The likely respondents are corporations, partnerships, and individuals.
The estimated total annual reporting burden is 350 hours.
The estimated annual burden per respondent varies from 2 hours to 3 hours, depending on individual circumstances, with an estimated average burden of 2.5 hours to complete the requests for certification required under this notice. The estimated number of respondents is 140.
This notice supersedes Notice 2006-26, as clarified by Notice 2006-53, which was modified by Notice 2006-71, 2006-2 C.B. 316.
The principal author of this notice is Martha S. McRee of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice, contact Ms. McRee at (202) 622-3110 (not a toll-free call).
The composite corporate bond rate for May 2009 is 6.95 percent. Pursuant to Notice 2004-34, the Service has determined this rate as the average of the monthly yields for the included corporate bond indices for that month.
The rate of interest on 30-year Treasury securities for May 2009 is 4.23 percent. The Service has determined this rate as the monthly average of the daily determination of yield on the 30-year Treasury bond maturing in February 2039 determined each day through May 6, 2009, and the yield on the 30-year Treasury bond maturing in May 2039 determined each day for the balance of the month.
* This spot monthly yield curve represents data from May 2009 only, and under the proposed regulations for § 430(h)(2), this table is for use by § 430(h)(2)(D)(ii) electing plans with valuation dates in June 2009. Until final regulations are effective, a reasonable interpretation of § 430(h)(2)(D)(ii) would permit plan sponsors to use this table in conjunction with the applicable month rules of § 430(h)(2)(E). In such a case, this table could also be used for a valuation as of a date in May, July, August, or September of 2009.
This document contains corrections to a notice of proposed rulemaking (REG-119532-08, 2009-20 I.R.B. 1017) that was published in the Federal Register on Thursday, April 30, 2009, at 74 FR 19913. The corrections relate to proposed regulations that provide guidance on the portion of trust property includible in the grantor’s gross estate if the grantor has retained the use of the property, the right to an annuity, unitrust, graduated retained interest, or other payment from such property for life, for any period not ascertainable without reference to the grantor’s death, or for a period that does not in fact end before the grantor’s death.
Theresa M. Melchiorre, (202) 622-3090 (not a toll-free number).
The notice of proposed rulemaking that is the subject of this document is under section 2036 of the Internal Revenue Code.
As published, the notice of proposed rulemaking (REG-119532-08) that was published on April 30, 2009 (74 FR 19913) contains errors in one of the charts that are misleading and needs clarification.
§20.2036-1 Transfers with retained life estate.
The Internal Revenue Service is temporarily suspending the reporting requirement with respect to foreign bank accounts (Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts)) due on June 30, 2009, for those persons who are not citizens, residents, or domestic entities. The revised Form TD F 90-22.1 (October 2008) was issued with a change in the instructions to the definition of “United States person.” The IRS has received a number of questions and comments from the public concerning the new filing requirement that may require additional guidance.
United States Person The term “United States person” means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.
The definition of the term “United States person” from the instructions for the prior version of the FBAR form may be relied upon for purposes of determining who must file an FBAR. All other requirements of the current version of the FBAR form and instructions (revision October 2008) are still in effect. The current version of the form must be used when filing an FBAR.
The substitution of the definition of “United States person” from the instructions for the prior version of the FBAR applies only with respect to FBARs due on June 30, 2009. Additional guidance will be issued with respect to FBARs due in subsequent years.
The Service invites interested persons to submit comments regarding the revised FBAR form and instructions (revision October 2008). Please submit comments by August 31, 2009 to: Internal Revenue Service, CC:PA:LPD:PR (Announcement 2009-51), room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions also may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (Announcement 2009-51), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue N.W., Washington, DC. Alternatively, taxpayers may submit electronic comments directly to the IRS e-mail address: notice.comments@irscounsel.treas.gov (attention: Announcement 2009-51).
The principal author of this announcement is Adrienne Mikolashek of the Office of Associate Chief Counsel (Procedure and Administration). For further information regarding this announcement, contact Adrienne Mikolashek at 202-622-4940 not a toll-free call).
This document contains a correction to final regulations (T.D. 9448, 2009-20 I.R.B. 942) that were published in the Federal Register on Thursday, May 7, 2009 (74 FR 21438). This regulation relates to the use of actuarial tables in valuing annuities, interests for life or terms of years, and remainder or reversionary interests.
This correction is effective on June 8, 2009 and is applicable on May 1, 2009.
Mayer R. Samuels, (202) 622-3090 (not a toll-free number).
The final regulation (T.D. 9448) that is the subject of this correction is under sections 170 and 2032 of the Internal Revenue Code.
As published, T.D. 9448 contains errors that may prove to be misleading and is in need of clarification.
§1.170A-12(e)(2) following the formula...... Table 90CM in §20.2031-7.... Table 2000CM in §20.2031-7T.
(1) [Reserved]. Further guidance, see §20.2032-1T(f)(1).

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