Source: https://www.irs.gov/irb/2016-22_IRB
Timestamp: 2019-08-25 02:46:26
Document Index: 288507031

Matched Legal Cases: ['§ 417', '§ 430', '§ 430', '§ 431', '§ 412', '§ 431', '§ 417', '§ 143', '§ 143', '§ 143', '§ 143', '§ 143', '§ 3', '§ 3', '§ 501', '§ 501', '§ 501']

Internal Revenue Bulletin: 2016-22 | Internal Revenue Service
Notice 201633
Notice 201634
Rev. Proc. 201626
Rev. Proc. 201632
Notice 2016–34 Notice 2016–34
The notice publishes the calendar year 2016 inflation adjustment factors and reference prices for the renewable electricity production credit, the refined coal credit and the Indian coal credit under section 45.
Notice 2016–33 Notice 2016–33
This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for May 2016 used under § 417(e)(3)(D), the 24-month average segment rates applicable for May 2016, and the 30-year Treasury rates. These rates reflect the application of § 430(h)(2)(C)(iv), which was added by the Moving Ahead for Progress in the 21st Century Act, Public Law 112–141 (MAP–21) and amended by section 2003 of the Highway and Transportation Funding Act of 2014 (HATFA).
Rev. Proc. 2016–32 Rev. Proc. 2016–32
Revenue Procedure 2016–32 modifies Revenue Procedure 2016–8 by reducing the user fee listed in in Rev. Proc. 2016–8 for Form 1023–EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, from $400 to $275.
Rev. Proc. 2016–26 Rev. Proc. 2016–26
The revenue procedure provides guidance with respect to median gross income figures used by issuers of qualified mortgage bonds as defined in section 143(a) and issuers of mortgage credit certificates as defined in section 25(c).
Notice 2016–33
Notice 2007–81, 2007–44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent with the methodology specified in Notice 2007–81, the monthly corporate bond yield curve derived from April 2016 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of April 2016 are, respectively, 1.47, 3.65, and 4.62.
The three 24-month average corporate bond segment rates applicable for May 2016 without adjustment for the 25-year average segment rate limits are as follows:
May 2016 1.48 3.90 4.90
Based on § 430(h)(2)(C)(iv), the 24-month averages applicable for May 2016 adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates, are as follows:
2015 May 2016 4.72 6.11 6.81
2016 May 2016 4.43 5.91 6.65
Generally for plan years beginning after 2007, § 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in § 431(c)(6)(A), based on the plan’s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88–73, 1988–2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on 30-year Treasury securities for April 2016 is 2.62 percent. The Service determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in February 2046. For plan years beginning in the month shown below, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rate used to calculate current liability are as follows:
May 2016 3.06 2.76 3.22
In general, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average. Notice 2007–81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value segment rates determined for April 2016 are as follows:
1.47 3.65 4.62
The principal author of this notice is Tom Morgan of the Office of the Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS participated in the development of this guidance. For further information regarding this notice, contact Mr. Morgan at 202-317-6700 or Tony Montanaro at 202-317-8698 (not a toll-free number).
Monthly Yield Curve for April 2016
Derived from April 2016 Data
0.5 0.66 20.5 4.39 40.5 4.64 60.5 4.74 80.5 4.79
1.0 0.95 21.0 4.40 41.0 4.65 61.0 4.74 81.0 4.79
1.5 1.20 21.5 4.41 41.5 4.65 61.5 4.74 81.5 4.79
2.0 1.40 22.0 4.42 42.0 4.65 62.0 4.74 82.0 4.79
2.5 1.53 22.5 4.43 42.5 4.66 62.5 4.74 82.5 4.79
3.0 1.62 23.0 4.44 43.0 4.66 63.0 4.75 83.0 4.79
3.5 1.70 23.5 4.45 43.5 4.66 63.5 4.75 83.5 4.79
4.0 1.78 24.0 4.46 44.0 4.67 64.0 4.75 84.0 4.79
4.5 1.88 24.5 4.46 44.5 4.67 64.5 4.75 84.5 4.79
5.0 1.98 25.0 4.47 45.0 4.67 65.0 4.75 85.0 4.79
5.5 2.11 25.5 4.48 45.5 4.68 65.5 4.75 85.5 4.79
6.0 2.25 26.0 4.49 46.0 4.68 66.0 4.75 86.0 4.80
6.5 2.39 26.5 4.49 46.5 4.68 66.5 4.76 86.5 4.80
7.0 2.55 27.0 4.50 47.0 4.68 67.0 4.76 87.0 4.80
7.5 2.70 27.5 4.51 47.5 4.69 67.5 4.76 87.5 4.80
8.0 2.85 28.0 4.52 48.0 4.69 68.0 4.76 88.0 4.80
8.5 3.00 28.5 4.52 48.5 4.69 68.5 4.76 88.5 4.80
9.0 3.14 29.0 4.53 49.0 4.69 69.0 4.76 89.0 4.80
9.5 3.28 29.5 4.54 49.5 4.70 69.5 4.76 89.5 4.80
10.0 3.40 30.0 4.54 50.0 4.70 70.0 4.76 90.0 4.80
10.5 3.52 30.5 4.55 50.5 4.70 70.5 4.77 90.5 4.80
11.0 3.62 31.0 4.56 51.0 4.70 71.0 4.77 91.0 4.80
11.5 3.72 31.5 4.56 51.5 4.70 71.5 4.77 91.5 4.80
12.0 3.81 32.0 4.57 52.0 4.71 72.0 4.77 92.0 4.80
12.5 3.88 32.5 4.57 52.5 4.71 72.5 4.77 92.5 4.80
13.0 3.95 33.0 4.58 53.0 4.71 73.0 4.77 93.0 4.81
13.5 4.01 33.5 4.58 53.5 4.71 73.5 4.77 93.5 4.81
14.0 4.07 34.0 4.59 54.0 4.72 74.0 4.77 94.0 4.81
14.5 4.12 34.5 4.59 54.5 4.72 74.5 4.77 94.5 4.81
15.0 4.16 35.0 4.60 55.0 4.72 75.0 4.78 95.0 4.81
15.5 4.19 35.5 4.60 55.5 4.72 75.5 4.78 95.5 4.81
16.0 4.23 36.0 4.61 56.0 4.72 76.0 4.78 96.0 4.81
16.5 4.25 36.5 4.61 56.5 4.72 76.5 4.78 96.5 4.81
17.0 4.28 37.0 4.62 57.0 4.73 77.0 4.78 97.0 4.81
17.5 4.30 37.5 4.62 57.5 4.73 77.5 4.78 97.5 4.81
18.0 4.32 38.0 4.62 58.0 4.73 78.0 4.78 98.0 4.81
18.5 4.34 38.5 4.63 58.5 4.73 78.5 4.78 98.5 4.81
19.0 4.35 39.0 4.63 59.0 4.73 79.0 4.78 99.0 4.81
19.5 4.37 39.5 4.64 59.5 4.74 79.5 4.78 99.5 4.81
20.0 4.38 40.0 4.64 60.0 4.74 80.0 4.79 100.0 4.81
Notice 2016–34
This notice publishes the inflation adjustment factor and reference prices for calendar year 2016 for the renewable electricity production and refined coal production and Indian coal production credit under section 45 of the Internal Revenue Code. The 2016 inflation adjustment factor and reference prices are used in determining the availability of the credits. The 2016 inflation adjustment factor and reference prices apply to calendar year 2016 sales of kilowatt hours of electricity produced in the United States or a possession thereof from qualified energy resources and to calendar year 2016 sales of refined coal and Indian coal produced in the United States or a possession thereof.
Section 45(d)(1) defines a qualified facility using wind to produce electricity as any facility owned by the taxpayer that is originally placed in service after December 31, 1993, and the construction of which begins before January 1, 2020 See section 45(e)(7) for rules relating to the inapplicability of the credit to electricity sold to utilities under certain contracts.
Section 45(d)(4) defines a qualified facility using geothermal or solar energy to produce electricity as any facility owned by the taxpayer which is originally placed in service after the date of enactment of section 45(d)(4) (October 22, 2004) and which, (A) in the case of a facility using solar energy, is placed in service before January 1, 2006, or (B) in the case of a facility using geothermal energy, the construction of which begins before January 1, 2017. A qualified facility using geothermal or solar energy does not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.
Section 45(d)(10) provides that the term “Indian Coal Production Facility” means a facility that produces Indian coal.
Section 45(e)(2)(A) requires the Secretary to determine and publish in the Federal Register each calendar year the inflation adjustment factor and the reference price for the calendar year. The inflation adjustment factor and the reference prices for the 2016 calendar year were published in the Federal Register on April 29, 2016.
The inflation adjustment factor for calendar year 2016 for qualified energy resources and refined coal is 1.5556. The inflation adjustment factor for Indian coal is 1.1934.
The reference price for calendar year 2016 for facilities producing electricity from wind (based upon information provided by the Department of Energy) is 4.50 cents per kilowatt hour. The reference prices for fuel used as feedstock within the meaning of section 45(c)(7)(A), relating to refined coal production (based upon information provided by the Department of Energy) are $31.90 per ton for calendar year 2002 and $53.74 per ton for calendar year 2016. The reference prices for facilities producing electricity from closed-loop biomass, open-loop biomass, geothermal energy, solar energy, small irrigation power, municipal solid waste, qualified hydropower production, and marine and hydrokinetic energy have not been determined for calendar year 2016.
Because the 2016 reference price for electricity produced from wind (4.50 cents per kilowatt hour) does not exceed 8 cents multiplied by the inflation adjustment factor (1.5336), the phaseout of the credit provided in section 45(b)(1) does not apply to such electricity sold during calendar year 2015. Because the 2016 reference price of fuel used as feedstock for refined coal ($53.74) does not exceed $84.38 (which is the $31.90 reference price of such fuel in 2002 multiplied by the inflation adjustment factor (1.5556) and 1.7), the phaseout of the credit provided in section 45(e)(8)(B) does not apply to refined coal sold during calendar year 2016. Further, for electricity produced from closed-loop biomass, open-loop biomass, geothermal energy, solar energy, small irrigation power, municipal solid waste, qualified hydropower production, and marine and hydrokinetic energy, the phaseout of the credit provided in section 45(b)(1) does not apply to such electricity sold during calendar year 2016.
CREDIT AMOUNT BY QUALIFIED ENERGY RESOURCE AND FACILITY AND REFINED COAL AND INDIAN COAL
As required by section 45(b)(2), the 1.5 cent amount in section 45(a)(1), the 8 cent amount in section 45(b)(1), and the $4.375 amount in section 45(e)(8)(A) and the $2.00 amount in section 45(e)(10)(B) are each adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale occurs. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount is rounded to the nearest multiple of 0.1 cent. In the case of electricity produced in open-loop biomass facilities, small irrigation power facilities, landfill gas facilities, trash facilities, qualified hydropower facilities, and marine and hydrokinetic renewable energy facilities, section 45(b)(4)(A) requires the amount in effect under section 45(a)(1) (before rounding to the nearest 0.1 cent) to be reduced by one-half. Under the calculation required by section 45(b)(2), the credit for renewable electricity production for calendar year 2016 under section 45(a) is 2.3 cents per kilowatt hour on the sale of electricity produced from the qualified energy resources of wind, closed-loop biomass, geothermal energy, and solar energy, and 1.2 cents per kilowatt hour on the sale of electricity produced in open-loop biomass facilities, small irrigation power facilities, landfill gas facilities, trash facilities, qualified hydropower facilities, and marine and hydrokinetic energy facilities. Under the calculation required by section 45(b)(2), the credit for refined coal production for calendar year 2015 under section 45(e)(8)(A) is $6.810 per ton on the sale of qualified refined coal. The credit for the production of Indian coal is $2.387 per ton.
The principal author of this notice is Philip Tiegerman of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice contact Ms. Records on (202) 317-6853 (not a toll-free number).
Rev. Proc. 2016–26
.06 The Department of Housing and Urban Development (HUD) has computed the median gross income for the United States, the states, and statistical areas within the states. The income information was released to the HUD regional offices on March 28, 2016, and may be obtained by calling the HUD reference service at 1-800-245-2691. The income information is also available at HUD’s World Wide Web site, http://www.huduser.org/portal/datasets/il.html, which provides a menu from which you may select the year and type of data of interest.
.07 The most recent nationwide average purchase prices and average area purchase price safe harbor limitations were published on May 02, 2016, in Rev. Proc. 2016–25, 2016–18 I.R.B. 1009.
.01 When computing the income requirements of § 143(f), issuers of qualified mortgage bonds and mortgage credit certificates must use either (1) the median gross income for the United States, the states, and statistical areas within the states, as released to the HUD regional offices on March 06, 2015, or (2) the median gross income for the United States, the states, and statistical areas within the states, as released to the HUD regional offices on March 28, 2016.
.02 If an issuer uses the median gross income for the United States, the states, and statistical areas within the states, as released to the HUD regional offices on March 06, 2015, to compute the housing cost/income ratio under § 143(f)(5), the issuer must use the median gross income for the United States, the states, and statistical areas within the states, as released to the HUD regional offices on March 06, 2015, for all purposes under § 143(f). Likewise, if an issuer uses the median gross income for the United States, the states, and statistical areas within the states, as released to the HUD regional offices on March 28, 2016, to compute the housing cost/income ratio under § 143(f)(5), the issuer must use the median gross income for the United States, the states, and statistical areas within the states, as released to the HUD regional offices on March 28, 2016, for all purposes under § 143(f).
.01 Rev. Proc. 2015–23, 2015–13 I.R.B. 820, is obsolete except as provided in §§ 3.01, 3.02, or 5.01 of this revenue procedure.
.01 Issuers must use the United States and area median gross income figures specified in § 3.01 of this revenue procedure for commitments to provide financing that are made, or (if the purchase precedes the financing commitment) for residences that are purchased, in the period that begins on March 28, 2016, and ends on the date when these United States and area median gross income figures are rendered obsolete by a new revenue procedure.
Rev. Proc. 2016–32
This revenue procedure modifies Revenue Procedure 2016–8, 2016–1 I.R.B. 243 by reducing the user fee listed in Rev. Proc. 2016–8 for Form 1023–EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.
Rev. Proc. 2016–8 provides a fee schedule for requests for determination letters on matters under the jurisdiction of the Commissioner, Tax Exempt and Government Entities Division, and sets the user fee for applications for recognition of exemption under § 501(c)(3) submitted on Form 1023–EZ at $400.
SECTION 3. MODIFICATION TO REVENUE PROCEDURE 2016–8
.01 The user fee in section 6.09(1) of Rev. Proc. 2016–8, for applications for recognition of exemption under § 501(c)(3) submitted on Form 1023–EZ, is modified by replacing “$400” with “$275.”
.02 The entry for “Application for recognition of exemption under § 501(c)(3) submitted on Form 1023–EZ” in the summary of exempt organization fees in section 6.10 is modified by replacing “$400” with “$275.”
Rev. Proc. 2016–8 is modified.
Bulletins 2016–1 through 2016–22