Internal Revenue Bulletin 2013-10 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 201
3-10
March 4, 2013
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Notice 2013–12, page 543.
This notice reports the results of the section 48C Phase I pro-
gram and, as provided by section 48C(d)(4) of the Code, es-
tablishes a second phase of thequalifying advanced energy
project program (“the section 48C Phase II program”) to dis-
tribute the section 48C Phase I credits that are available for
re-allocation after review of the section 48C Phase I program.
EMPLOYEE PLANS
Rev. Rul. 2013–2, page 533.
2013 covered compensation tables; permitted disparity.
The covered compensation tables under section 401 of the
Code for the year 2013 are provided for use in determining
contributions to defined benefit plans and permitted disparity.
T.D. 9601, page 535.
Final regulations under section 411(d)(6) of the Code provide
guidance under the anti-cutback rules, which generally prohibit
plan amendments eliminating or reducing accrued benefits,
early retirement benefits, retirement-type subsidies, and op-
tional forms of benefit under qualified retirement plans. The
regulations provide an additional limited exception to the anti-
cutback rules to permit a plan sponsor that is a debtor in a bank-
ruptcy proceeding to amend its single-employer defined bene-
fit plan to eliminate a single-sum distribution option (or other
optional form of benefit providing for accelerated payments)
under the plan if certain specified conditions are satisfied.
Notice 2013–6, page 540.
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 February
2013; the 24-month average segment rates; the funding
transitional segment rates applicable for February 2013; and
the minimum present value transitional rates for January 2013.
The rates in this notice reflect certain changes implemented
by the Moving Ahead for Progress in the 21st Century Act,
Public Law 112–141 (MAP–21).
EMPLOYMENT TAX
REG–102966–10, page 579.
Proposed regulations under section 3504 of the Code clarify
the employment tax obligations of a third party (payor) where
the third party enters into a service agreement with an em-
ployer to pay wages to employees of the employer and takes
on other employment tax responsibilities of the employer. Un-
der the proposed regulations, the Service may designate the
payor to perform acts required of the employer. Under the pro-
posed regulations, both the employer and the payor are liable
for the employer’s employment tax obligations. The proposed
regulations also provide exceptions for when a payor will not
be designated to perform acts of the employer.
Finding Lists begin on page ii.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
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th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
March 4, 20132013–10 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 401.—Qualified
Pension, Profit-Sharing,
and Stock Bonus Plans
26 CFR 1.401(l)–1: Permitted disparity in employer-
provided contributions or benefits.
2013 covered compensation tables;
permitted disparity.The covered com-
pensation tables under section 401 of the
Code for the year 2013 are provided for
use in determining contributions to de-
fined benefit plans and permitted disparity.
Rev. Rul. 2013–2
This revenue ruling provides ta-
bles of covered compensation under
§ 401(l)(5)(E) of the Internal Revenue
Code (the “Code”) and the Income Tax
Regulations thereunder, for the 2013 plan
year.
Section 401(l)(5)(E)(i) defines covered
compensation with respect to an employee
as the average of the contribution and ben-
efit bases in effect under section 230 of the
Social Security Act (the “Act”) for each
year in the 35-year period ending with the
year in which the employee attains social
security retirement age.
Section 401(l)(5)(E)(ii) states that the
determination forany year preceding the
year in which the employee attains social
security retirement age shall be made by
assuming that there is no increase in the
contribution and benefit base after the de-
termination year and before the employee
attains social security retirement age.
Section 1.401(l)–1(c)(34) of the In-
come Tax Regulations defines the taxable
wage base as the contribution and benefit
base under section 230 of the Act.
Section 1.401(l)–1(c)(7)(i) defines cov-
ered compensation for an employee as the
average (without indexing) of the taxable
wage bases in effect for each calendar year
during the 35-year period ending with the
last day of the calendar year in which the
employee attains (or will attain) social se-
curity retirement age. A 35-year period is
used for all individuals regardless of the
year of birth of the individual. In deter-
mining an employee’s covered compensa-
tion for a plan year, the taxable wage base
for all calendar years beginning after the
first day of the plan year is assumed to be
the same as the taxable wage base in ef-
fect as of the beginning of the plan year.
An employee’s covered compensation for
a plan year beginning after the 35-year pe-
riod applicable under § 1.401(l)–1(c)(7)(i)
is the employee’s covered compensation
for a plan year during which the 35-year
period ends. An employee’s covered com-
pensation for a plan year beginning be-
fore the 35-year period applicable under
§ 1.401(l)–1(c)(7)(i) is the taxable wage
base in effect as of the beginning of the
plan year.
Section 1.401(l)–1(c)(7)(ii) provides
that, for purposes of determining the
amount of an employee’s covered com-
pensation under § 1.401(l)–1(c)(7)(i), a
plan may use tables, provided by the Com-
missioner, that are developed by rounding
the actual amounts of covered compensa-
tion for different years of birth.
For purposes of determining covered
compensation for the 2013 year, the tax-
able wage base is $113,700.
The following tables provide covered
compensation for 2013.
ATT
ACHMENT I
201
3 COVERED COMPENSATION TABLE
CAL
ENDAR
YEA
ROF
BIRT
H
CAL
ENDAR YEAR OF
SOC
IAL SECURITY
RETI
REMENT AGE
201
3 COVERED
COM
PENSATION
TABL
EII
19071972
$4,488
190819734,704
19091974
5,0
04
191
0
19755,316
19111976
5,664
191219776,060
19
13
19
78
6,
480
191419797,044
19
15
19807,692
1
916
1
981
8
,460
191719829,300
1918198310,236
1
919
1
984
1
1,232
1920
1985
12,276
1921198613,368
19221987
14,520
19231988
15,708
1924198916,968
1925
199018,312
1926199119,728
2013–10 I.R.B.533March 4, 2013

ATTACHMENT I
2013 COVERED COMPENSATION TABLE
CALENDAR
YEAR OF
BIRTH
CALENDAR YEAR OF
SOCIAL SECURITY
RETIREMENT AGE
2013 COVERED
COMPENSATION
TABLE II
1927199221,192
1928199322,716
1929199424,312
1930
199525,920
19311996
27,576
1932199729,304
1933199831,128
1934199933,060
1935
2000
35,100
1936200137,212
1937200239,444
1938200443,992
1939
2005
46,344
1940200648,816
19412007
51,348
19422008
53,952
19432009
56,628
19442010
59,268
1945
201161,884
19462012
64,560
1947201367,308
1948201469,900
1949
2015
72,408
1950
201674,808
1951
201777,124
1952
2018
79,356
1953
2019
81,528
1954
202083,640
1955
202287,684
1956
2023
89,652
1957
2024
91,524
19582025
93,312
1959
2026
95,040
1960202796,696
1961202898,304
1962202999,816
19632030101,316
19642031102,780
1965
2032104,160
19662033
105,444
19672034106,620
1968
2035
107,700
19692036108,648
19702037109,464
19712038110,232
19722039110,964
19732040111,648
19742041112,200
1975
2042112,668
19762043113,004
19772044113,196
1978
2045
113,400
19792046
113,592
1980 and Later2047 and Later113,700
March 4, 20135342013–10 I.R.B.

ATTACHMENT II
2013 ROUNDED COVERED COMPENSATION TABLE
CALENDAR
YEAR OF
BIRTH
2013 COVERED
COMPENSATION
ROUNDED
1937
$39,000
1938–1939
45,000
194048,000
1941
51,000
1942
54,000
1943
57,000
194460,000
1945
63,000
1946–194766,000
194869,000
194972,000
195075,000
1951–1952
78,000
1953
81,000
1954
84,000
1955
87,000
1956
90,000
1957–1958
93,000
1959–1960
96,000
1961–196299,000
1963–1964102,000
1965–1966105,000
1967–1970108,000
1971–1974111,000
1975 and Later
113,700
DRAFTING INFORMATION
The principal author of this rev-
enue ruling is Michael Spaid of
the Employee Plans, Tax Exempt
and Government Entities Division.
Mr. Spaid may be reached via e-mail at
RetirementPlanQuestions@irs.gov.
Section 411.—Minimum
Vesting Standards
26 CFR 1.411(d)–1: Section 411(d)(6) protected ben-
efits.
T.D. 9601
DEPARTMENT OF TREASURY
Internal Revenue Service
26 CFR Part 1
Amendment of Prohibited
Payment Option Under
Single-Employer Defined
Benefit Plan of Plan Sponsor
in Bankruptcy
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains final
regulations that provide guidance under
the anti-cutback rules of section 411(d)(6)
of the Internal Revenue Code, which gen-
erally prohibit plan amendments eliminat-
ing or reducing accrued benefits, early re-
tirement benefits, retirement-type subsi-
dies, and optional forms of benefit under
qualified retirement plans. These regu-
lations provide an additional limited ex-
ception to the anti-cutback rules to per-
mit a plan sponsor that is a debtor in a
bankruptcy proceeding to amend its sin-
gle-employer defined benefit plan to elim-
inate a single-sum distribution option (or
other optional form of benefit providing
for accelerated payments) under the plan
if certain specified conditions are satis-
fied. These regulations affect administra-
tors,employers,participants,andbenefi-
ciaries of such a plan.
DATES:Effective date: These regulations
are effective on November 8, 2012.
Applicability date: These regulations
apply to plan amendments that are adopted
and effective after November 8, 2012.
FOR FURTHER INFORMATION
CONTACT: Neil S. Sandhu or
Linda S. F. Marshall at (202) 622–6090
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to
the Income Tax Regulations (26 CFR part
2013–10 I.R.B.535March 4, 2013

1) under section 411(d)(6) of the Internal
Revenue Code (Code). These final regu-
lations amend §1.411(d)–4 of the Treasury
regulations.
Section 401(a)(7) provides that a trust
does not constitute a qualified trust unless
its related plan satisfies the requirements
of section 411 (relating to minimum vest-
ing standards). Section 411(d)(6)(A) pro-
vides that a plan is treated as not satisfying
the requirements of section 411 if the ac-
crued benefit of a participant is decreased
by an amendment of the plan, other than an
amendment described in section 412(d)(2)
oftheCodeorsection4281oftheEm-
ployee Retirement Income Security Act of
1974, Public Law 93–406 (88 Stat. 829
(1974)), as amended (ERISA).
Section 411(d)(6)(B) provides that a
plan amendment that has the effect of
eliminating or reducing an early retire-
ment benefit or a retirement-type subsidy,
or eliminating an optional form of bene-
fit, with respect to benefits attributable to
service before the amendment is treated
as impermissibly reducing accrued ben-
efits. For a retirement-type subsidy, this
protection applies only with respect to a
participant who satisfies (either before or
after the amendment) the preamendment
conditions for the subsidy. The last sen-
tence of section 411(d)(6)(B) provides that
the Secretary may by regulations provide
that section 411(d)(6)(B) does not apply
to a plan amendment that eliminates an
optional form of benefit (other than a plan
amendment that has the effect of eliminat-
ing or reducing an early retirement benefit
or a retirement-type subsidy).
Section 436(d)(2) provides that a de-
fined benefit plan which is a single-em-
ployer plan must provide that, during any
period in which the plan sponsor is a debtor
in a case under title 11, United States Code,
or similar Federal or State law (a “bank-
ruptcy case”), the plan may not pay any
“prohibited payment.” However, that lim-
itation does not apply in a plan year on or
after the date on which the enrolled actu-
ary of the plan certifies that the adjusted
funding target attainment percentage (as
defined in section 436(j)(2)) of the plan for
the plan year is not less than 100 percent.
Section 436(d)(5) sets forth a definition
of the termprohibited payment.Under
this definition, a “prohibited payment” is:
(1) any payment in excess of the monthly
amount paid under a single life annu-
ity (plus any social security supplements
described in the last sentence of section
411(a)(9)) to a participant or beneficiary
whose annuity starting date (as defined
in section 417(f)(2)) occurs during any
period a limitation under section 436(d)(1)
or section 436(d)(2)is in effect; (2) any
payment for the purchase of an irrevocable
commitment from an insurer to pay bene-
fits; and (3) any other payment specified
by the Secretary by regulations. The term
“prohibited payment” does not include the
payment of a benefit which under section
411(a)(11) may be immediately distributed
without the consent of the participant.
Section 1.411(d)–4, Q&A–1(a) pro-
vides that the termsection 411(d)(6)
protected benefitincludes: (1) bene-
fits described in section 411(d)(6)(A);
(2) early retirement benefits (as de-
fined in §1.411(d)–3(g)(6)(i)) and re-
tirement type subsidies (as defined in
§1.411(d)–3(g)(6)(iv)); and (3) optional
forms of benefit described in section
411(d)(6)(B)(ii).
Section 1.411(d)–4, Q&A–1(b)(1) pro-
vides that the term “optional form of ben-
efit” for purposes of §1.411(d)–4 has the
same meaning as in §1.411(d)–3(g)(6)(ii).
Section 1.411(d)–3(g)(6)(ii)(A) defines
the termoptional form of benefitas “a dis-
tribution alternative (including the normal
form of benefit) that is available under the
plan with respect to an accrued benefit or
a distribution alternative with respect to a
retirement-type benefit. Different optional
forms of benefit exist if a distribution al-
ternative is not payable on substantially
the same terms as another distribution
alternative. The relevant terms include
all terms affecting the value of the op-
tional form, such as the method of benefit
calculation and the actuarial factors or
assumptions used to determine the amount
distributed. Thus, for example, different
optional forms of benefit may result from
differences in terms relating to the pay-
ment schedule, timing, commencement,
medium of distribution (for example, in
cash or in kind), election rights, differ-
ences in eligibility requirements, or the
portion of the benefit to which the distri-
bution alternative applies.”
Section 1.411(d)–4, Q&A–2(a)(1)
provides that a plan is not permitted to
be amended to eliminate or reduce a
section 411(d)(6) protected benefit that
has already accrued, except as provided
in §1.411(d)–3 or §1.411(d)–4. Under
§1.411(d)–4, Q&A–2(b)(1), the Commis-
sioner is authorized to provide for the
elimination or reduction of an optional
form of benefit to the extent that plan par-
ticipants do not lose either a valuable right
or an employer-subsidized optional form
of benefit when a similar optional form
of benefit with a comparable subsidy is
not provided.
1
In addition, §1.411(d)–4,
Q&A–2(b)(2)(i) through (xi) sets forth
specific situations under which the elim-
ination or reduction of certain section
411(d)(6) protected benefits that have al-
ready accrued does not violate section
411(d)(6). These exceptions have been in-
cluded in regulations pursuant to the IRS’s
authority under the last sentence of section
411(d)(6)(B) to permit a plan amendment
that eliminates or reduces optional forms
of benefit (other than a plan amendment
that has the effect of eliminating or re-
ducing an early retirement benefit or a
retirement-type subsidy).
Section 1.436–1(d)(2) provides that a
plan satisfies the requirements of section
436(d)(2) and §1.436–1(d)(2) only if the
plan provides that a participant or benefi-
ciary is not permitted to elect an optional
form of benefit that includes a prohibited
payment, and the plan will not pay any pro-
hibited payment, with an annuity starting
date that occurs during any period in which
the plan sponsor is a debtor in a case un-
der title 11, United States Code, or sim-
ilar Federal or State law, except for pay-
ments made with an annuity starting date
that occurs on or after the date within the
plan year on which the enrolled actuary of
the plan certifies that the plan’s adjusted
funding target attainment percentage for
the plan year is not less than 100 percent.
Title IV of ERISA provides for a pen-
sion plan termination insurance program
that is administered by the Pension Bene-
fit Guaranty Corporation (PBGC). PBGC
guarantees nonforfeitable benefits, up
to specified limits, for defined benefit
pension plans that are covered under the
1
Such an amendment can be authorized only through the publication of revenuerulings, notices, and other documents of general applicability. See §601.601(d)(2)(ii)(b).
March 4, 20135362013–10 I.R.B.

program.
2
If a single-employer plan ter-
minates in a distress termination under
section 4041(c) of ERISA or an invol-
untary termination under section 4042 of
ERISA, and the plan assets are not suffi-
cient to provide all guaranteed benefits,
PBGC pays benefits to participants and
beneficiaries under the provisions of Ti-
tle IV and PBGC’s regulations.
3
PBGC
allows a participant who is not in pay
status at the time of the termination to
elect among the various annuity forms
described in 29 C.F.R. 4022.8. In addi-
tion, under 29 C.F.R. 4022.7, PBGC does
not pay benefits in a single sum in excess
of $5,000 (except under certain limited
circumstances).
Section 204(g) of ERISA contains rules
that are parallel to Code section 411(d)(6).
Under section 101 of Reorganization Plan
No. 4 of 1978 (43 FR 47713) and sec-
tion 204(g) of ERISA, the Secretary of the
Treasury has interpretive jurisdiction over
the subject matter addressed in these regu-
lations for purposes of ERISA, as well as
the Code. Thus, these regulations issued
under section 411(d)(6) of the Code apply
as well for purposes of section 204(g) of
ERISA.
On June 21, 2012, the IRS issued pro-
posed regulations under section 411(d)(6)
(77 FR 37349) to provide an additional
limited exception to the anti-cutback rules
to permit a plan sponsor that is a debtor in
a bankruptcy proceeding to amend its sin-
gle-employer defined benefit plan to elim-
inate a single-sum distribution option (or
other optional form of benefit providing
for accelerated payments) under the plan
if certain conditions are satisfied. Several
comments were received on the proposed
regulations. No public hearing was re-
quested or held. After consideration of the
comments received, the IRS and the Trea-
sury Department are issuing these final
regulations to adopt the rules set forth in
the proposed regulations with minor mod-
ifications.
Explanation of Provisions
These final regulations provide a lim-
ited exception under section 411(d)(6)(B)
to permit a plan sponsor that is a debtor in
a bankruptcy proceeding to amend its sin-
gle-employer defined benefit plan to elim-
inate a single-sum distribution option (or
other optional form of benefit providing
for accelerated payments) if certain condi-
tions are satisfied.
In particular, the regulations permit a
single-employer plan that is covered under
section 4021 of ERISA to be amended, ef-
fective for a plan amendment that is both
adopted and effective after November 8,
2012, to eliminate an optional form of ben-
efit that includes a prohibited payment de-
scribed in section 436(d)(5), provided that
four conditions are satisfied on the later
of the date the amendment is adopted or
effective (the applicable amendment date,
as defined in §1.411(d)–3(g)(4)). First,
the enrolled actuary of the plan has certi-
fied that the plan’s adjusted funding target
attainment percentage(as defined in sec-
tion 436(j)(2)) for the plan year that con-
tains the applicable amendment date is less
than 100 percent. Second, the plan is not
permitted to pay any prohibited payment,
due to application of the requirements of
section 436(d)(2) of the Code and sec-
tion 206(g)(3)(B) ofERISA, because the
plan sponsor is a debtor in a bankruptcy
case (that is, a case under title 11, United
States Code, or under similar Federal or
State law). Third, the court overseeing
the bankruptcy case has issued an order,
after notice to the affected parties and a
hearing,
4
finding that the adoption of the
amendment eliminating that optional form
of benefit is necessary to avoid a distress
termination of the plan pursuant to section
4041(c) of ERISA or an involuntary ter-
mination of the plan pursuant to section
4042 of ERISA before the plan sponsor
emerges from bankruptcy (or before the
bankruptcy case is otherwise completed).
Fourth, PBGC has issued a determination
that the adoption of theamendment elimi-
nating that optional form of benefit is nec-
essary to avoid a distress or involuntary
termination of the plan before the plan
sponsor emerges from bankruptcy (or be-
fore the bankruptcy case is otherwise com-
pleted) and that the plan is not sufficient for
guaranteed benefits within the meaning of
section 4041(d)(2) of ERISA.
These regulations exercise the Secre-
tary’s authority under the last sentence of
section 411(d)(6)(B) in order to permit
this type of amendment that eliminates an
optional form of benefit in these limited
circumstances. The legislative history of
section 411(d)(6)(B), which was added by
section 301(a) of the Retirement Equity
Act of 1984, Public Law 98–397, states
the intent that Treasury regulations could
permit the elimination of an optional form
of benefit if “(1) the elimination of the
option does not eliminate a valuable right
of a participant or beneficiary, and (2) the
option is not subsidized or a similar benefit
with a comparable subsidy is provided.”
5
The legislative history further states that
the committee “expects that the regula-
tions will not permit the elimination of a
’lump-sum distribution option’ because,
for a participant or beneficiary with sub-
standard mortality, the elimination of that
option could eliminate a valuable right
even if a benefit of equal actuarial value
(based on standard mortality) is available
under the plan.”
6
If the four conditions set forth in the
regulations are satisfied, a single-sum dis-
tribution option or other optional form of
benefit that includes a prohibited payment
(generally a payment that is in excess of
the monthly amounts payable under a sin-
gle life annuity) would not currently be
available and would not be available in the
future. The plan would not currently be
permitted to pay that optional form of ben-
efit because section436(d)(2) (which im-
poses restrictions on the payment of pro-
hibited payments while the plan sponsor is
in bankruptcy) bars the payment of such an
optional form of benefit under these condi-
tions. Furthermore, the bankruptcy court
and the PBGC would each have issued a
determination that the plan would be ter-
minated in a distress or involuntary termi-
nation unless that optional form of bene-
2
See section 4021 of ERISA.
3
See section 4022 of ERISA.
4
See 11 U.S.C. § 102(1).
5
S. Rep. No. 98–575, at 30 (1984).
6
Id.
2013–10 I.R.B.537March 4, 2013

fit were eliminated. In addition, the PBGC
would have determined that the plan is not
sufficient for guaranteed benefits. In such
a case, pursuant to §4022.7 and §4022.8 of
the PBGC regulations, the optional form of
benefit would not have been available af-
ter the plan termination. Accordingly, the
elimination of the optional form of benefit
would not result in the loss of a valuable
right of a participant or beneficiary.
In addition, the plan amendment would
not eliminate or reduce early retirement
benefits or retirement-type subsidies,
which would continue to be available un-
der the plan. Because the plan would not
be terminated in a distress or involuntary
termination, participants would continue
to be credited with additional service un-
der the plan and could become eligible
for early retirement benefits and retire-
ment-type subsidies, regardless of whether
participants received benefit accruals with
respect to the additional service. More-
over, because the plan would not be termi-
nated, the plan might have the opportunity
to recover from its underfunded status.
Under these final regulations, a judicial
determination must be made, after notice
to the plan participants and beneficiaries,
each employee organization representing
plan participants, and the PBGC, and a
hearing, that the amendment is necessary
to avoid termination of the plan in a dis-
tress or involuntary termination before the
plan sponsor emerges from bankruptcy (or
before the bankruptcy case is otherwise
completed). The primary purpose of this
notice and hearing requirement is to afford
plan participants who may be affected
the opportunity to be heard on whether
the amendment is necessary to avoid plan
termination. The proposed regulations re-
quired notice to each affected party, within
the meaning of section 4001(a)(21) of
ERISA, and a hearing. At the suggestion
of a commenter, the language with respect
to this notice and hearing requirement has
been modified slightly from the proposed
regulations to clarify that a failure to notify
a particular participant or beneficiary does
not automatically invalidate the amend-
ment. Specifically, the change clarifies
thatthestandardin11U.S.C.§102(1)ap-
plies for purposes of determining whether
adequate notice has been provided under
the requirement in the final regulations that
there be a notice and a hearing before the
order is issued by the Bankruptcy Court.
The final regulations require that notice be
provided to the affected parties, as defined
in section 4001(a)(21) of ERISA.
The preamble to the proposed regula-
tions requests comments on whether the
regulations should impose additional con-
ditions on the prospective elimination of
the single-sum distribution option (or other
optional form of benefit that includes a
prohibited payment), such as a condition
that, after the amendment, the plan must
offer annuity distribution options that pro-
vide substantial survivor benefits, such as
both (1) a life annuity with a term cer-
tain of 15 or more years and (2) a 100%
joint and survivor annuity, in order to give
participants who have substandard mor-
tality the opportunity to protect their sur-
vivors. Two commenters indicated support
for these additional conditions, and one
commenter questioned their value to par-
ticipants. After consideration of the com-
ments received on this issue, the IRS and
the Treasury Department have determined
not to impose this requirement as a condi-
tion of making a plan amendment permit-
ted under these regulations.
If a plan sponsor eliminates a single-
sum distribution option (or other optional
form of benefit that includes a prohibited
payment) pursuant to these regulations un-
der a plan that does not offer other op-
tional forms of benefit that provide sub-
stantial survivor benefits, then, in order to
continue to provide participants who have
substandard mortality the opportunity to
protect their survivors, the plan sponsor
can add other optional forms of benefit
that provide substantial survivor benefits
(including other optional forms of benefit
that are prohibited payments under section
436(d)(5)) as part of the same amendment
that eliminates the single-sum distribution
option (or other optional form of benefit
that includes a prohibited payment). All
provisions of such a plan amendment (in-
cluding both the elimination of the single-
sum distribution option and the addition of
optional forms of benefit that provide sub-
stantial survivor benefits) would be con-
sidered together for purposes of determin-
ing whether the plan amendment would be
permitted to take effect in accordance with
the rules of section 436(c).
Effective/Applicability Dates
These regulations apply to plan amend-
ments that are adopted and effective after
November 8, 2012. This date is modified
from the proposed regulations to avoid a
retroactive effective date.
Special Analyses
It has been determined that these regu-
lations are not a significant regulatory ac-
tion as defined in Executive Order 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations, and because the
regulation does not impose a collection of
information on small entities, the Regula-
tory Flexibility Act (5 U.S.C. chapter 6)
does not apply. Pursuant to section 7805(f)
of the Code, the proposed regulations pre-
ceding these final regulations were sub-
mitted to the Chief Counsel for Advocacy
of the Small Business Administration for
comment on its impact on small business.
Drafting Information
The principal authors of these
regulations are Neil S. Sandhu and
Linda S.F. Marshall,Office of Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities).
However, other personnel from the IRS
and the Treasury Department participated
in the development of these regulations.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.411(d)–4 is amended
by adding a new paragraph A–2(b)(2)(xii)
to read as follows:
§1.411(d)–4 Section 411(d)(6) protected
benefits.
*****
Q&A–2: * * *
March 4, 20135382013–10 I.R.B.

(b) * * *
(2) * * *
(xii)Prohibited payment option un-
der single-employer defined benefit plan
of plan sponsor in bankruptcy.Asin-
gle-employer plan that is covered under
section 4021 of the Employee Retirement
Income Security Act of 1974, Public Law
93–406 (88 Stat. 829(1974)), as amended
(ERISA), may be amended, effective for
a plan amendment that is both adopted
and effective after November 8, 2012, to
eliminate an optional form of benefit that
includes a prohibited payment described
in section 436(d)(5), provided that the
following conditions are satisfied on the
applicable amendment date (as defined in
§1.411(d)–3(g)(4)):
(A) The enrolled actuary of the plan has
certified that the plan’s adjusted funding
target attainment percentage (as defined in
section 436(j)(2)) for the plan year that
contains the applicable amendment date is
less than 100 percent.
(B) The plan is not permitted to pay
any prohibited payment, due to application
of the requirements of section 436(d)(2)
of the Internal Revenue Code and section
206(g)(3)(B) of ERISA, because the plan
sponsor is a debtor in a bankruptcy case
(that is, a case under title 11, United States
Code, or under similar Federal or State
law).
(C) The court overseeing the bank-
ruptcy case has issued an order, after
notice to the affected parties (as defined
in section 4001(a)(21) of ERISA) and a
hearing, within the meaning of 11 U.S.C.
§ 102(1), finding that the adoption of the
amendment eliminating that optional form
of benefit is necessary to avoid a distress
termination of the plan pursuant to section
4041(c) of ERISA or an involuntary ter-
mination of the plan pursuant to section
4042 of ERISA before the plan sponsor
emerges from bankruptcy (or before the
bankruptcy case is otherwise completed).
(D) The Pension Benefit Guaranty Cor-
poration has issued a determination that—
(1) The adoption of the amendment
eliminating that optional form of benefit
is necessary to avoid a distress or invol-
untary termination of the plan before the
plan sponsor emerges from bankruptcy (or
before the bankruptcy case is otherwise
completed); and
(2) The plan is not sufficient for guaran-
teed benefits within the meaning of section
4041(d)(2) of ERISA.
*****
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved November 2, 2012.
Mark J. Mazur,
Assistant Secretary of the
Treasury (Tax Policy).
(Filed by the Office of the Federal Register on November 7,
2012 8:45 a.m., and published in the issue of the Federal
Register for November 8, 2012, 77 F.R. 66915)
2013–10 I.R.B.539March 4, 2013

Part III. Administrative, Procedural, and Miscellaneous
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2013–6
This notice provides guidance on the
corporate bond monthly yield curve (and
the corresponding spot segment rates), and
the 24-month average segment rates under
§ 430(h)(2) of the Internal Revenue Code.
In addition, this notice provides guidance
as to the interest rate on 30-year Trea-
sury securities under § 417(e)(3)(A)(ii)(II)
as in effect for plan years beginning be-
fore 2008, the 30-year Treasury weighted
average rate under § 431(c)(6)(E)(ii)(I),
and the minimum present value segment
rates under § 417(e)(3)(D) as in effect for
plan years beginning after 2007. These
rates reflect certain changes implemented
by the Moving Ahead for Progress in the
21st Century Act, Public Law 112–141
(MAP–21). MAP–21 provides that for
purposes of § 430(h)(2), the segment rates
are limited by the applicable maximum
percentage or the applicable minimum per-
centage based on the average of segment
rates over a 25 year period.
YIELD CURVE AND SEGMENT
RATES
Generally, except for certain plans
under sections 104 and 105 of the Pen-
sion Protection Act of 2006, § 430 of
the Code specifies the minimum funding
requirements that apply to single em-
ployer plans pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under
this provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during speci-
fied periods. To the extent provided under
§ 430(h)(2)(C)(iv), these segment rates are
adjusted by the applicable percentage of
the 25-year average segment rates for the
period ending September 30 of the year
preceding the calendar year in which the
plan year begins. However, an election
may be made under § 430(h)(2)(D)(ii) to
use the monthly yield curve in place of the
segment rates.
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 tar-
get normal cost and the funding target.
Pursuant to Notice 2007–81, the monthly
corporate bond yield curve derived from
January 2013 data is in Table I at the end
of this notice. The spot first, second, and
third segment rates for the month of Jan-
uary 2013 are, respectively, 1.00, 3.73,
and 4.89. The three 24-month average
corporate bond segment rates applicable
for February 2013, without adjustment by
the applicable percentage of the 25-year
average segment rates, are as follows:
2
4-MonthSegmentRatesWithoutAdjustmentby25-YearAverageSegmentRates
First
Segment
Second
Segment
Third
Segment
1.58
4.34
5.38
For plan years beginning in 2012, the
24-month average segment rates deter-
mined under § 430(h)(2)(C)(iv) must be
not less than 90% nor greater than 110%
of the 25-year average segment rates. Pur-
suant to Notice 2012–55, I.R.B. 2012–36,
the first, second, and third 25-year av-
erage segment rates applicable for plan
years beginning in 2012 are 6.15, 7.61,
and 8.35, respectively. Therefore, for plan
years beginning in 2012, the three adjusted
24-month average corporate bond segment
rates applicable for February 2013, taking
into account the applicable percentage of
the 25-year average segment rates, are as
follows:
Adjusted 24-Month Average Segment Rates,
U
singApplicablePercentageof25-YearAverageSegmentRates
Applicable
Month
For Plan
Years
Beginning
in
First
Segment
Second
Segment
Third
Segment
February 20132012
5.546.857.52
The 25-year average segment rates for
the period ending September 30, 2012
have not been determined yet. The Ser-
vice will issue additional guidance on the
February 2013 adjusted 24-month average
segment rates applicable for plan years
beginning in 2013 when those 25-year
average segment rates are determined.
That guidance will be released in the near
future.
30-YEAR TREASURY SECURITIES
INTEREST RATES
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
March 4, 20135402013–10 I.R.B.

Section 431(c)(6)(B)specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est 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
January 2013 is 3.08 percent. The Service
has determined this rate as the average
of the daily determinations of yield on
the 30-year Treasury bond maturing in
November 2042. The following rates were
determined for plan years beginning in the
month shown below.
For Plan Years
Beginning inPermissible R
ange
MonthYear
30-Year
Treasury
Weighted
Average90%to105%
February2013
3.57
3.22
3.75
MINIMUM PRESENT VALUE
SEGMENT RATES
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 guide-
lines for determining the minimum present
value segment rates. Pursuant to that no-
tice, the minimum present value segment
rates determined for January 2013 are as
follows:
First
Segment
Second
Segment
Third
Segment
1.003.734.89
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities Di-
vision. Mr. Montanaro may be e-mailed at
RetirementPlanQuestions@irs.gov.
2013–10 I.R.B.541March 4, 2013

Table I
Monthly Yield Curve for January 2013
Derived from January 2013 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.5
0.33
20.5
4.62
40.5
4.92
60.55.0380.55.09
1.0
0.52
21.04.6441.04.9261.0
5.03
81.0
5.09
1.5
0.69
21.54.6541.5
4.93
61.55.0381.55.09
2.00.8322.04.6642.04.9362.0
5.03
82.0
5.09
2.5
0.96
22.5
4.67
42.5
4.93
62.55.0482.55.09
3.01.0723.04.6843.04.9463.05.0483.05.09
3.5
1.19
23.5
4.69
43.5
4.94
63.55.0483.55.09
4.01.3224.04.7044.04.9464.0
5.04
84.0
5.09
4.5
1.47
24.5
4.71
44.54.9564.55.0484.55.09
5.0
1.63
25.0
4.72
45.04.9565.05.0585.05.09
5.5
1.81
25.5
4.73
45.5
4.96
65.55.0585.55.10
6.01.9926.04.7346.04.9666.05.0586.05.10
6.5
2.19
26.5
4.74
46.5
4.96
66.55.0586.55.10
7.02.3827.0
4.75
47.04.9667.0
5.05
87.0
5.10
7.52.5827.5
4.76
47.5
4.97
67.55.0587.55.10
8.02.7728.04.7748.04.9768.0
5.05
88.0
5.10
8.52.9528.5
4.78
48.5
4.97
68.55.0688.55.10
9.03.1229.04.7949.04.9869.05.0689.05.10
9.5
3.29
29.5
4.79
49.5
4.98
69.55.0689.55.10
10.03.4430.04.80
50.0
4.9870.0
5.06
90.0
5.10
10.53.5830.5
4.81
50.5
4.98
70.55.0690.55.10
11.03.7131.04.82
51.0
4.9971.0
5.06
91.0
5.10
11.5
3.82
31.5
4.82
51.5
4.99
71.55.0691.55.11
12.03.9332.04.8352.04.9972.05.0792.05.11
12.5
4.02
32.5
4.84
52.55.0072.55.0792.55.11
13.04.1033.04.84
53.05.00
73.0
5.07
93.0
5.11
13.5
4.18
33.54.8553.55.0073.55.0793.55.11
14.04.2434.0
4.8554.05.00
74.0
5.07
94.0
5.11
14.5
4.30
34.5
4.86
54.55.0074.55.0794.55.11
15.04.3535.04.8755.05.0175.05.0795.05.11
15.5
4.39
35.5
4.87
55.55.0175.55.0795.55.11
16.04.4336.04.88
56.05.01
76.0
5.08
96.0
5.11
16.5
4.46
36.5
4.88
56.55.0176.55.0896.55.11
17.04.4937.04.89
57.05.02
77.0
5.08
97.0
5.11
17.54.5237.5
4.89
57.55.0277.55.0897.55.11
18.04.5438.04.9058.05.0278.05.0898.05.12
18.54.5638.5
4.90
58.55.0278.55.0898.55.12
19.0
4.58
39.04.91
59.05.02
79.0
5.08
99.0
5.12
19.54.5939.5
4.91
59.55.0379.55.0899.55.12
20.04.6140.04.9160.0
5.03
80.0
5.08
100.0
5.12
March 4, 20135422013–10 I.R.B.

Qualifying Advanced Energy
Project Credit
Notice 2013–12
TABLE OF CONTENTS
Section 1.Purpose
Section 2.Background
Section 3.Definitions
Section 4.Section 48C Phase II Program
Section 5.
Concept Papers and Applications for DOERecommendation and § 48C Certification
Section 6.Issuance of Certification
Section 7.Other Requirements
Section 8.Reduction or Forfeiture of Allocated Credits
Section 9.Qualified Progress Expenditures
Section 10.Disclosure of Information
Section 11.Effective Date
Section 12.Paperwork Reduction Act
Section 13.Drafting Information
Appendix A.Agreement
Appendix B.Request for Concept Papers andApplications for DOE Recommendation
SECTION 1. PURPOSE
Section 48C of the Internal Revenue
Code provides for the qualifying advanced
energy property project program and au-
thorizes $2.3 billion of credits (“the § 48C
Phase I program” and “the § 48C Phase I
credit”). This notice reports the results of
the § 48C Phase I program and, as provided
by § 48C(d)(4), establishes a second phase
of the qualifying advanced energy project
program (“the § 48C Phase II program”)
to distribute the § 48C Phase I credits that
are available for re-allocation after review
of the § 48C Phase I program.
To be considered for an allocation of
credits in the § 48C Phase II program, tax-
payers must submit concept papers to the
U.S. Department of Energy (“DOE”) by
April 9, 2013 and applications to DOE and
the Internal Revenue Service (“Service”)
by July 23, 2013.
SECTION 2. BACKGROUND
.01 Section 46 provides that the amount
of the investment credit for any taxable
year is the sum of the credits listed in § 46.
That list includes the qualifying advanced
energy project credit under § 48C.
.02 Section 48C(d)(1) provides that the
Secretary, in consultation with the Secre-
tary of Energy, shall establish a qualifying
advanced energy project program to con-
sider and award certifications for qualified
investments eligible for credits to quali-
fying advanced energy project sponsors.
In 2009, the Treasury Department and the
Service, in consultation with the Secretary
of Energy, established the § 48C Phase
I program in Notice 2009–72, 2009–37
I.R.B. 325.
.03 Pursuant to § 48C(d)(1)(B), the
§ 48C Phase I program provided for $ 2.3
billion of credits to be allocated to qualify-
ing advanced energy projects. The Service
fully allocated $2.3 billion of credits under
the § 48C Phase I program in 2009–2010.
.04 Section 48C(d)(4) requires the Sec-
retary to review the allocation of § 48C
Phase I credits not later than the date that
is 4 years after the date of enactment of
§ 48C. The Secretary may conduct an addi-
tional program for applications for certifi-
cation if the Secretary determines that: (1)
there is an insufficient quantity of qualify-
ing applications for certification pending
at the time of the review, or (2) any certi-
fication made pursuant to § 48C(d)(2) has
been revoked pursuant to § 48C(d)(2)(B)
because the project subject to the certi-
fication has been delayed as a result of
third-party opposition or litigation.
.05 The Service has completed this
review and has determined that § 48C
Phase I credits in the total amount of
$150,228,397.00 are available for reallo-
cation under the § 48C Phase II program.
.06 Pursuant to § 48C(a), the qualifying
advanced energy project credit for a tax-
able year is an amountequal to 30 percent
of the qualified investment (as defined in
§ 48C(b)) for that taxable year with respect
to the taxpayer’s qualifying advanced en-
ergy project (as defined in § 48C(c)(1)).
.07 Section 48C(b)(1) provides that the
qualified investment for any taxable year is
the basis of eligible property that is placed
in service by the taxpayer during such tax-
able year and is part of a qualifying ad-
vanced energy project.
.08 Section 48C(b)(3) provides that the
qualified investment for all taxable years
with respect to any qualifying advanced
energy project is limited to the amount des-
ignated by the Secretary as eligible for the
credit under § 48C.
.09 Section 48C(d)(3) specifies the
criteria that must be considered in deter-
mining which qualifying advanced energy
projects are certified under § 48C(d).
.10 The qualifying advanced energy
project credit generally is allowed in the
taxable year in which the eligible prop-
erty (as defined in § 48C(c)(2)) is placed
in service (as defined in section 3.04 of
this notice) by the taxpayer. Pursuant to
§ 48C(d)(2)(C), a taxpayer that receives a
certification under § 48C(d)(2) has 3 years
from the date of issuance of certification
to place the qualifying advanced energy
project in service. If the taxpayer does not
place the project in service by the end of
that period, the certification is no longer
valid.
.11 The at-risk rules in § 49 and the
recapture and other special rules in § 50
2013–10 I.R.B.543March 4, 2013

apply to the qualifying advanced energy
project credit.
.12 For further information regarding
the qualifying advanced energy project
program under § 48C, taxpayers may
refer tohttp://www.irs.gov/Businesses/Ad-
vanced-Energy-Credit-for-Manufactur-
ers-(IRC–48C). This website contains
various information relating to the pro-
gram, including answers to frequently
asked questions.
SECTION 3. DEFINITIONS
The following definitions apply for pur-
poses of § 48C and this notice:
.01Qualifying Advanced Energy
Project. A qualifying advanced energy
project is a project that meets the follow-
ing requirements:
(1) the project re-equips, expands, or
establishes a manufacturing facility (as de-
finedinsection3.05ofthisnotice)for
the production of specified advanced en-
ergy property or property that, after fur-
ther manufacture, will become specified
advanced energy property;
(2) the Service has certified pursuant to
§ 48C(d)(2) that part or all of the qualified
investment in the project is eligible for a
credit under § 48C; and
(3) the project does not produce any
property which is used in the refining or
blending of any transportation fuel (other
than renewable fuels).
.02Specified Advanced Energy Prop-
erty. Specified advanced energy property
means any of the following:
(1) property designed for use in the
production of energy from the sun, wind,
geothermal deposits (within the meaning
of § 613(e)(2)), or other renewable re-
sources;
(2) fuel cells, microturbines, or an en-
ergy storage system for use with electric or
hybrid-electric motor vehicles;
(3) electric grids to support the trans-
mission of intermittent sources of renew-
able energy, including property for the
storage of such energy;
(4) property designed to capture and se-
quester carbon dioxide and sequester car-
bon dioxide emissions;
(5) property designed to refine or blend
renewable fuels (but not fossil fuels) or
to produce energy conservation technolo-
gies (including energy-conserving lighting
technologies and smart grid technologies);
(6) new plug-in electric drive motor
vehicles (as defined by § 30D), qualified
plug-in electric vehicles (as defined by
§ 30(d)), or components that are designed
specifically for use with such vehicles,
including electric motors, generators, and
power control units; or
(7) other property designed to reduce
greenhouse gas emissions as may be deter-
mined by the Service as described in sec-
tion 3.06 of this notice.
.03Eligible Property. Eligible property
is any property (other than a building or
its structural components) that meets the
following requirements:
(1) the property is necessary for the
production of specified advanced energy
property described in § 48C(c)(1)(A)(i) or
section 3.02 of this notice;
(2) the property is
(a) tangible personal property, or
(b) other tangible property (not includ-
ing a building or its structural components)
that is used as an integral part of the qual-
ifying advanced energy project; and
(3) depreciation (or amortization in lieu
of depreciation) is allowable with respect
to the property.
.04Placed In Service. For purposes
of § 48C, property is placed in service in
the taxable year in which the property is
placed in a condition or state of readiness
and availability for aspecifically assigned
function.See§ 1.46–3(d)(1)(ii) of the In-
come Tax Regulations. Thus, a qualify-
ing advanced energy project is placed in
service in the taxable year in which the
project is placed in a condition or state of
readiness and availability for its intended
purpose. Eligible property (as defined in
§48C(c)(2)andsection3.03ofthisno-
tice) that is a part of the project is placed
in service in the taxable year in which the
property is placed in a condition or state of
readiness and availability for its intended
purpose.
.05Manufacturing Facilities. For pur-
poses of § 48C, manufacturing facilities
are facilities that make, or process raw
materials into, finished products (or ac-
complish any intermediate stage in that
process).
.06Advanced Energy Property De-
signed To Reduce Greenhouse Gas Emis-
sions. Property may be determined to be
designed to reduce greenhouse gas emis-
sions either through published guidance
or in the letter notifying a taxpayer that
the Service has accepted the taxpayer’s
application for § 48C certification with
respect to the property.
SECTION 4. SECTION 48C PHASE II
PROGRAM
.01In General. The Service will
consider a project under the qualifying
advanced energy project program only
if DOE provides a recommendation and
ranking for the project (DOE recommen-
dation). DOE will provide a recommen-
dation and ranking only if it determines
that the project has a reasonable expec-
tation of commercial viability and merits
a recommendation based on the criteria
in § 48C(d)(3)(B). Accordingly, a tax-
payer must submit for each project that
it sponsors: (1) a concept paper for DOE
consideration; (2) an application for rec-
ommendation by DOE (“application for
DOE recommendation”); and (3) an appli-
cation for certification under § 48C(d)(2)
by the Service (“application for § 48C
certification”) (collectively(2)and(3)are
referred to herein as “the § 48C applica-
tions”). A taxpayer must submit a concept
paper and the § 48C applications as spec-
ified in section 5 and Appendix B of this
notice through the eXCHANGE website
athttps://eere-exchange.energy.gov.EX-
CHANGE is an online application portal
used by the Office of Energy Efficiency &
Renewable Energy, DOE, into which ap-
plicants may securely input their data and
information for review by DOE and the
Service. Applicants will be able to submit
an application for DOE recommendation
and an application for § 48C certification
simultaneously using eXCHANGE.
.02Program Specifications.
(1) The Service determines the amount
of the qualifying advanced energy project
credit allocated to a qualifying advanced
energy project at the time the Service ac-
cepts the application for certification for
that project in accordance with section
4.02(8) of this notice (see section 5 of this
notice for the requirements applicable to
the concept paper and the § 48C applica-
tions).
(2) Section 48C Phase II credits in the
amount of $150,228,397.00 are available
for allocation.
(3) The amount of the qualified invest-
ment that is eligible for the credit with re-
spect to any project is limited to $100 mil-
March 4, 20135442013–10 I.R.B.

lion. Accordingly,the maximum amount
of credits allocated per project will be $30
million.
(4) The DOE recommendations will in-
clude a ranking of projects in descending
order(thatis,first,second,third,etc.).
The project receiving the highest ranking
(that is, first) will be allocated the full
amount of credit requested not to exceed
$30 million before any credit is allocated
to a lower-ranked project. The amount
of credit allocated to a project reduces the
amount of credit available to lower-ranked
projects. The same process will apply to
the second and lower-ranked projects until
the amount available for allocation is ex-
hausted. DOE will recommend and rank
projects only to the extent necessary to ex-
haust the amount available for allocation.
(5) For the § 48C Phase II program, the
application period forcertification begins
on February 7, 2013, and ends on July 23,
2013. All timely submitted applications
will be evaluated and ranked on their merit
regardless of when in the application pe-
riod they are submitted.
(6) For the § 48C Phase II program,
a concept paper for DOE consideration
must be submitted by April 9, 2013. The
§ 48C applications must be submitted
by July 23, 2013. If the § 48C applica-
tions are received on or before July 23,
2013, and otherwise meet the preliminary
compliance review criteria, DOE will de-
termine the merit of the project and (for
projects determined to be meritorious)
provide the DOE recommendation to the
Service by October 11, 2013. See section
5.02 of this notice and Appendix B to
this notice for the information required
to be submitted to DOE in an application
for DOE recommendation. Also, see
Appendix B to this notice for a discussion
relating to the process for applying for
DOE recommendation and the instructions
for filing concept papers and applications
for DOE recommendation.
(7) Each applicant will receive an
electronically generated confirmation of
receipt upon submission of (a) the concept
paper and (b) the § 48C applications. The
timeliness of submission of the § 48C
applications will be determined by the
submittal date and time shown on the con-
firmation of receipt.
(8) For the § 48C Phase II program,
the Service will accept or reject a tax-
payer’s application for § 48C certification
by November 15, 2013, and it will notify
the taxpayer, by letter, of its decision. If
the application is accepted, the date of this
letter will be treated as the acceptance date.
(9) If the taxpayer’s application for
§ 48C certification is accepted, the ac-
ceptance letter will state the amount of
the credit allocated to the project. The
qualifying advancedenergy project credit
with respect to any project for all taxable
years may not exceed the amount of credit
allocated to the project under section 4
of this notice. If a credit is allocated to
a taxpayer’s project, the taxpayer will
be required to execute an agreement in
the form set forth in Appendix A to this
notice. The taxpayer must execute and
return the agreement to the Service by
January 10, 2014, at the address listed in
section6.02ofthisnotice. The Service
will execute and return the agreement to
the taxpayer by March 14, 2014. The
executed agreement applies only to the
taxpayer that signed the agreement. The
taxpayer must notify the Service within 90
days of the acquisition of the project by
any other person (a successor in interest)
or, if the taxpayer is a member of an af-
filiated group filing consolidated returns,
a change in the common parent company
of the affiliated group. A successor in in-
terest that plans to claim the § 48C credit
allocated to the project must request per-
mission to execute a new agreement with
the Service. If the request is granted, the
new agreement must be executed no later
than the due date (including extensions) of
the successor in interest’s Federal income
tax return for the taxable year in which the
transfer occurs. If the successor in interest
does not execute a new agreement, the
following rules apply:
(a) in the case of an interest acquired be-
fore the time the qualifying advanced en-
ergy project is placed in service, any credit
allocated to the project will be fully for-
feited (and rules similar to the recapture
rules of § 50(a) apply with respect to qual-
ified progress expenditures); and
(b) in the case of an interest acquired af-
ter the qualifying advanced energy project
is placed in service, the project ceases to be
investment credit property (and rules simi-
lar to the recapture rules of § 50(a) will ap-
ply with respect to qualified progress ex-
penditures).
.03 For qualifying advanced energy
projects that re-equip or expand a manu-
facturing facility, the taxpayer’s qualified
investment is limited to property that
re-equips or expands the facility to pro-
duce specified advanced energy property
listed in section 3.02 of this notice.
.04 The qualifying advanced energy
project credit will not be allocated to any
qualified investment for which a credit is
allowed under §§ 48, 48A, or 48B, or for
which a payment is received under § 1603
of the American Recovery and Reinvest-
ment Tax Act of 2009, Division B of Pub.
L. 111–5, 123 Stat 115.
SECTION 5. CONCEPT PAPERS
AND APPLICATIONS FOR DOE
RECOMMENDATION AND § 48C
CERTIFICATION
.01In General. A taxpayer must submit
for each project it sponsors (1) by April 9,
2013, a concept paper for DOE considera-
tion and (2) if invited by DOE, by July 23,
2013, the § 48C applications. If an applica-
tion for DOE recommendation does not (1)
propose an eligible project or (2) include
all of the information required by Appen-
dix B to this notice, DOE may decline to
consider the application. If DOE does not
provide a recommendation for the applica-
tion, the Service will not consider the ap-
plication for § 48C certification.
.02Information Required in the Con-
cept Paper and Application for DOE Rec-
ommendation. A concept paper and appli-
cation for DOE recommendation must in-
clude the information requested in Appen-
dix B to this notice. Upon review of the
concept paper, DOE will notify those ap-
plicants whose projects will be considered
for DOE recommendation, and will invite
the applicants to submit an application for
DOE recommendation. An applicant who
is not invited will not be permitted to sub-
mit an application for DOE recommenda-
tion or an application for §48C certifica-
tion.
.03InformationRequiredintheAppli-
cation for § 48C Certification. By submit-
ting an application through eXCHANGE,
an applicant is submitting simultaneously
an application for DOE recommendation
and an application for § 48C certification.
EXCHANGEwillpromptanapplicantto
enter necessary information and will pro-
vide corresponding instructions regarding
the requirements for the application for
§ 48C certification.
2013–10 I.R.B.545March 4, 2013

SECTION 6. ISSUANCE OF
CERTIFICATION
.01Requirements for Certification.
Pursuant to § 48C(d)(2)(B), a taxpayer
has one year from the date of acceptance
of the application for § 48C certification
during which to provide evidence that the
requirements of the certification have been
met in accordance with section 6.02 of
this notice. If such evidence is not timely
received, the allocated § 48C Phase II
credits are forfeited. A project is eligible
for certification only if the taxpayer has re-
ceived all federal, state, and local permits,
including environmental authorization or
reviews necessary to commence construc-
tion of the project. Section 48C(d)(2)(C)
provides that a taxpayer that receives a
certification has three years from the date
of issuance of the certification to place the
project in service and that the certification
is void if the project is not placed in ser-
vice by the end of that three-year period.
.02Satisfaction of Requirements for
Certification. Within one year from the
acceptance date (as determined in section
4.02(8) of this notice), the taxpayer must
submit to the Service an electronic ver-
sion on a USB flash drive or a CD of the
documentation establishing that the certifi-
cation requirements of section 6.01 of this
notice are satisfied. The documentation
must be formatted in one of the following
software applications: Microsoft ® Word
2007 or later edition; Microsoft ® Excel
2007 or later edition; or Adobe ® Acrobat
PDF 7.0 or later edition. The taxpayer
should mark the package, “SECTION 48C
CERTIFICATION REQUIREMENTS”
and submit by U.S. mail, designated pri-
vate delivery service, or hand delivery
service (between the hours of 8 a.m. and
4 p.m. Central time, Monday through
Friday) to:
Internal Revenue Service
Industry Director, Natural Resources
and Construction
Attn: Executive Assistant (Technical)
1919 Smith Street, floor 23
Mail Stop 1000-HOU
Houston, TX 77002
(1) The documentation establishing that
the certification requirements of section
6.01 of this notice are satisfied must be ac-
companied by a letter that includes the fol-
lowing written declaration: “I declare that
I am authorized to bind[name of appli-
cant]. Under penalties of perjury, I declare
that I have examined this submission, in-
cluding accompanying documents, and, to
the best of my knowledge and belief, all of
the facts contained herein are true, correct,
and complete.”
(2) The taxpayer’s submission (the let-
ter including the perjury declaration and
documentation) must be signed and dated
by the taxpayer. The person signing for the
taxpayer must have personal knowledge of
the facts. Further, the submission must be
signed by a person authorized under state
law to bind the taxpayer, such as an offi-
cer on behalf of a corporation, a general
partner of a state law partnership, a mem-
ber-manager on behalf of a limited liabil-
ity company, a trustee on behalf of a trust,
or the proprietor in the case of a sole pro-
prietorship. If the taxpayer is a member of
an affiliated group filing consolidated re-
turns, the submission also must be signed
by a duly authorized officer of the common
parent of the group. A stamped, scanned,
faxed, or otherwise copied signature is not
permitted.
.03Service’s Action on Certification.
After receiving the submission described
in section 6.02 of this notice, the Service
will decide whether or not to certify the
project and will notify the taxpayer, by let-
ter, of that decision. If the Service certifies
the project, the date of this letter is the date
of issuance of the certification.
SECTION 7. OTHER REQUIREMENTS
.01Significant Change in Plans.The
taxpayer must inform the Service if the
plans for the project change in any signifi-
cant respect from the plans set forth in the
§ 48C applications. A significant change is
any change that a reasonable person would
conclude might have adversely influenced
DOE in recommending or ranking of the
project or the Service in accepting the ap-
plication had they known about the change
when they were considering the applica-
tion. If the Service is informed of the
change after the date on which the § 48C
applications are due under section 4.02(6)
of this notice:
(1) the Service will give no further con-
sideration to the project; and
(2) any acceptance provided by the
Service and any allocation or certification
based on that acceptance will be void.
.02Recapture of the § 48C Phase II
Credits. Section 48C Phase II credits are
subject to the recapture rules of § 50. Sec-
tion 50(a)(1) provides, generally, for re-
capture of the investment credit if, dur-
ing any taxable year, investment tax credit
property is disposed of or otherwise ceases
to be investment credit property with re-
spect to the taxpayer before the close of the
recapture period. The recapture period un-
der § 50(a) is the 5-year period beginning
on the date the property is placed in ser-
vice.
.03 Effect of an Acceptance, Alloca-
tion, or Certification. An acceptance, al-
location, or certification by the Service
under this notice is not a determination
that a project is eligible for the qualify-
ing advanced energy project credit under
§48Corthatanypropertythatispartof
the project is an eligible property under
§ 48C(c)(2). The Service may, upon ex-
amination (and after any appropriate con-
sultation with DOE), determine that the
project does not qualify for this credit or
that the property is not an eligible property
for purposes of this credit.
.04No Right to a Conference or Appeal.
A taxpayer does not have a right to a con-
ference relating to any matters under this
notice. Further, a taxpayer does not have
a right to appeal the decisions made under
this notice (including the acceptance or re-
jection of the application for § 48C certi-
fication, the amount of credit allocated to
the project, or whetheror not to certify the
project) to any official of DOE or the Ser-
vice.
.05Submissions by U.S. Mail. For pur-
poses of this notice, any information sub-
mitted to the Service pursuant to sections
4.02(9), 6.02, 7.01, or 8 of this notice that
is submitted by U.S. mail will be treated
as received by the Service on the date of
the postmark and any information submit-
ted by a private delivery service will be
treated as received by the Service on the
date recorded or the date marked in accor-
dance with §7502.
March 4, 20135462013–10 I.R.B.

SECTION 8. REDUCTION OR
FORFEITURE OF ALLOCATED
CREDITS
Under the provisions of this notice and
the agreement set forth in Appendix A to
this notice, the § 48C Phase II credits allo-
cated under section 4 of this notice will be
reduced or forfeited in certain situations.
A taxpayer must notify the Service of the
amount of any reduction or forfeiture re-
quired under the agreement. This notifica-
tion must be sent to the address listed in
section 6.02 of this notice.
SECTION 9. QUALIFIED PROGRESS
EXPENDITURES
.01 Section 48C(b)(2) provides that
rules similar to the rules of § 46(c)(4)
and (d) (as in effect on the day before the
enactment of the Revenue Reconciliation
Act of 1990) shall apply for purposes of
§ 48C. Former § 46(c)(4) and (d) pro-
vided the rules for claiming the investment
credit on qualified progress expenditures
(as defined in former § 46(d)(3)) made
by a taxpayer during the taxable year for
the construction of progress expenditure
property (as defined in former § 46(d)(2)).
.02 In the case of self-constructed prop-
erty (as defined in former § 46(d)(5)(A)),
former § 46(d)(3)(A) defined qualified
progress expenditures to mean the amount
that is properly chargeable (during the
taxable year) to capital account with re-
spect to that property. With respect to a
qualifying advancedenergy project that is
self-constructed property, amounts paid or
incurred are chargeable to capital account
at the time and to the extent they are prop-
erly includible in computing basis under
the taxpayer’s method of accounting (for
example, after applying the requirements
of § 461, including the economic perfor-
mance requirement of § 461(h)).
.03 To claim the advanced energy
project credit with respect to the qualified
progress expenditures paid or incurred by
a taxpayer during the taxable year for con-
struction of a qualifying advanced energy
project, the taxpayer must make an elec-
tion under the rules set forth in § 1.46–5(o)
of the Income Tax Regulations. A tax-
payer may not make the qualified progress
expenditures election for a qualifying ad-
vanced energy project until the taxpayer
has received an acceptance letter for the
project under section 4.02(8) of this no-
tice.
.04 If a taxpayer makes the qualified
progress expenditures election pursuant
to section 9.03 of this notice, rules simi-
lar to the recapture rules in § 50(a)(2)(A)
through (D) apply. In addition to the
cessation events listed in § 50(a)(2)(A),
examples of other events that will cause
the project to cease being a qualifying
advanced energy project are:
(1) Failure to receivea certification for
the project in accordance with section 6 of
this notice;
(2) Failure to place the project in service
within 3 years from the date of issuance of
the certification under section 6.01 of this
notice; or
(3) A significant change to the plans for
the project as set forth in the § 48C appli-
cations if, under section 7.01 of this notice,
the Service’s acceptance of the project is
void as a result of the change.
SECTION 10. DISCLOSURE OF
INFORMATION
.01Announcement. Section 48C(d)(5)
provides that the Service shall, upon mak-
ing a certification, publicly disclose the
identity of the applicant and the amount of
the credit certified with respect to such ap-
plicant. Accordingly,the Service will pub-
lish the results of the allocation process,
and disclose the following information in
the event a qualifying advanced energy
project credit is allocated to the taxpayer’s
project: (1) the name of the taxpayer and
(2) the amount of the § 48C Phase II credit
allocated to the project.
.02Voluntary disclosure. Applicants
may authorize the government to release
additional information by completing and
signing the voluntary disclosure waiver in
the Disclosure Waiver section of the Tax-
payer Data Spreadsheet. An applicant’s
decision to disclose or to withhold addi-
tional information does not influence the
selection process either by DOE or by the
Service.
.03In General. A concept paper, the
§ 48C applications, and any other docu-
mentation submitted by the taxpayer pur-
suant to section 6.02 of this notice, and any
documentation generated by the Service or
DOE as part of this process are return in-
formation subject to § 6103. Except for
the items of information that § 48C(d)(5)
requires the Service to make available to
the public or any other information that the
applicant consents to disclose pursuant to
section 10.02 of this notice, the other ma-
terial remains the applicant’s confidential
return information, which is exempt from
disclosure under the Freedom of Informa-
tion Act (FOIA), 5 USC § 552(b)(3), in
conjunction with § 6103. Other FOIA ex-
emptions may also apply. For example,
FOIA includes exemptions for trade se-
crets and commercial or financial informa-
tion (5 USC § 552(b)(4)), as well as per-
sonal information (5 USC § 552(b)(6)).
.04FOIA requests. Anyone interested
in submitting a request for records under
the FOIA with respect to the qualifying
advanced energy project program under
§ 48C should direct a request that con-
forms to the Service’s FOIA regulations,
found at 26 C.F.R. § 601.702, to the fol-
lowing address:
IRS FOIA Request
Baltimore Disclosure Office
Room 940
31 Hopkins Plaza
Baltimore, MD 21201
SECTION 11. EFFECTIVE DATE
This notice is effective on February 7,
2013.
SECTION 12. PAPERWORK
REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget (OMB) in accordance with the Pa-
perwork Reduction Act (44 U.S.C. § 3507)
under control number 1545–2151.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in sections 4, 5, 6, 7, and Ap-
pendix B of this notice. This information is
required to obtain an allocation of qualify-
ing advanced energy project credits. This
information will be used by the Service to
verify that the taxpayer is eligible for the
qualifying advanced energy project cred-
its. The collection of information is re-
quired to obtain a benefit. The likely re-
2013–10 I.R.B.547March 4, 2013

spondents are business or other for-profit
institutions.
The estimated total annual reporting
burden is 55,000 hours.
The estimated annual burden per re-
spondent varies from 70 to 150 hours, de-
pending on individual circumstances, with
an estimated average of 110 hours. The es-
timated number of respondents is 500.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally, tax returns and return in-
formation are confidential, as required by
26 U.S.C. § 6103.
SECTION 13. DRAFTING
INFORMATION
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
Philip Tiegerman at (202) 622–3110 (not a
toll-free number). For further information
regarding the § 48C applications, the
documentation to be submitted to the
Service establishingthat the requirements
of § 48C(d)(2) are satisfied, and the
issuance of the certification that the
requirements of § 48C(d)(2) are satisfied,
contact Marc Bernabo, 48C Program
Manager, Office of the Industry Director,
Natural Resources and Construction, at
(713) 209–3669 (not a toll-free number).
March 4, 20135482013–10 I.R.B.

APPENDIX A
AGREEMENT
[Insert taxpayer’s name, address, and identifying number] (“Taxpayer”) and the Commissioner of Internal Revenue (“Commis-
sioner”) make the following agreement:
WHEREAS:
1. On or before [insert date and year], Taxpayer submitted to the Internal Revenue Service (“IRS”), an application for certification
under the § 48C Phase II program described in Notice 2013–12 (“Application for § 48C Certification”);
2. Taxpayer’s Application for § 48C Certification is for the qualifying advanced energyproject (the “Project”) described below—
(1) The name of the Project is [insert name as provided in Taxpayer’s application];
(2) The Project will be located inor near [insert city and state];
(3) The Project [insert either: “re-equips”; “expands”; or “establishes”] a manufacturing facility for the production of [insert type
of property as described in § 48C(c)(1)(A)(i)(I) — (VII)].
(4) On [insert date of acceptance letter issued under section 4.02(7) of Notice 2013–12], the IRS accepted Taxpayer’s Application
for § 48C Certification for the Project and allocated a qualifying advancedenergy project credit under § 48C in the amount of $[insert
number] to the Project.
NOW IT IS HEREBY DETERMINED AND AGREED FOR FEDERAL INCOME TAX PURPOSES THAT:
1. The total amount of the § 48C Phase II credit to be claimed forthe Project under § 48C(a) must not exceed the amount allocated
to the Project as specified in WHEREAS clause 2(4).
2. If Taxpayer fails to satisfy the certification requirements under section 6.02 of Notice 2013–12 within the time specified in
§ 48C(d)(2)(B) (1 year from the date the IRS accepted the Taxpayer’sApplication for § 48C Certification for the Project as specified
in WHEREAS clause 2(4)), or if the IRS does not issue a certification for the Project under Notice 2013–12, the § 48C Phase II credit
in the amount allocated to the Project as specified in WHEREAS clause 2(4) is fully forfeited.
3. Taxpayer will notify the IRS in writing at the address listed in section 6.02 of Notice 2013–12 when the Project is placed in
service. This notification must be sent within 30 days of the datethe Project is placed in service.
4. If the Project is not placed in service by Taxpayer within 3 years of the date of issuanceof the certification as determined under
section 6.03 of Notice 2013–12, the § 48C Phase II credit in theamount allocated to the Project as specified in WHEREAS clause
2(4) is fully forfeited.
5. If the plans for the Project change in any significant respect from the plans set forthin the application for DOE recommendation
(as defined in section 4.01 of Notice 2013–12) and the Application for § 48C Certification and, under section 7.03 of Notice 2013–12,
the acceptance of Taxpayer’s Application for § 48C Certification on the date the IRS accepted the Taxpayer’s Application for § 48C
Certification for the Project as specified in WHEREAS clause 2(4) is void, then the § 48C Phase II credit in the amount allocated to
the Project as specified in WHEREAS clause 2(4) is fully forfeited.
6. Taxpayer will not claim the qualifying advanced energy projectcredit under § 48C for any qualified investment for which a credit
is allowed under §§ 48, 48A, or 48B or for which a payment is received under § 1603 of the American Recovery and Reinvestment
Act of 2009, Division B of Pub. L. 111–5, 123 Stat 115.
7. If Taxpayer elects to claim the qualifying advanced energy project creditfor the qualified progress expenditures paid or incurred
by Taxpayer during the taxable year(s) during which the Projectis under construction and the Project ceases to be a qualifying ad-
vanced energy project (whether before, at the time, or after the Project is placed in service), rules similar to the recapture rules in
§ 50(a)(2)(A) through (D) apply.
8. Taxpayer reasserts that the following information is trade secretor proprietary information: [Insert “All information identified
as trade secret or proprietary in Taxpayer’sapplication for DOE recommendation” or list the specific information in Taxpayer’s ap-
plication for DOE recommendation to which the reassertion applies.]
9. This agreement applies only to Taxpayer. Taxpayer must notify the IRS within 90 days of the acquisition of the Project by any
other person (a successor in interest). A successor in interest that plans to claim the § 48C credit allocated to the Project must request
permission to execute a new agreement with the IRS. If the request is granted, the new agreement must be executed no later than
the due date (including extensions) of the successor in interest’s Federal income tax return for the taxable year in which the transfer
occurs. If the interest is acquired at or before the time the Projectis placed in service and the successor in interest fails to execute a
new agreement, the qualifying advanced energy project credit in the amount allocated tothe Project, as specified in the WHEREAS
clause 2(4), is fully forfeited. If the interest is acquired after the time the Project is placed in service and the successor in interest fails
to execute a new agreement, the Project ceases to be investment credit property, and the recapture rules of § 50(a) apply.
THIS AGREEMENT IS FINAL AND CONCLUSIVE EXCEPT:
1. The matter it relates to may be reopened in the event of fraud, malfeasance, or misrepresentation of a material fact;
2013–10 I.R.B.549March 4, 2013

2. It is subject to the Internal Revenue Code sections that expressly provide that effect be given to their provisions notwithstanding
any law or rule of law; and
3. If it relates to a tax period ending after the date of this Agreement, it is subject to any law enacted after such date, which applies
to the tax period.
By signing, the parties certify that they have read and agreed to the terms of this Agreement.
Taxpayer: [insert name and identifying number]
By:
Date Signed:
[insert name]
Title:[insert
title]
[insert taxpayer’s name]
Commissioner of Internal Revenue
By:
Date Signed:
[insert name]
Title: Industry Director, Natural Resources & Construction
March 4, 20135502013–10 I.R.B.

APPENDIX B: REQUEST FOR CONCEPT PAPERS AND FULL APPLICATIONS FOR DOE RECOMMENDATION
Table of Contents
I. Overview
II. DOE Review Process
III. Eligibility Information
IV. Submission Information for DOE Recommendation Process
A. General
B. Application Forms
C. Content and Form of Concept Papers
D. Content and Form of Full Applications
E. Submission and Registration Requirements
F. Application Review Information
V. Instructions Regarding Quantitative Factors Information Submission
VI. Supporting Documents
VII. Technical References for Advanced Energy Technologies Supplied Figures
VIII. Taxpayer Data Spreadsheet
IX. Questions
I. OVERVIEW
The Internal Revenue Service (“Service”) with the assistance of the Department of Energy (“DOE”) seeks to select for certification
applications of innovative technologies that demonstrate a reasonable expectation of commercial viability and are eligible for
consideration based on the selection criteria in sections III and IV below. To be eligible, applications must be for qualifying
advanced energy projects and projects must have a reasonable expectation of commercial viability.
This request for concept papers and fullapplications for DOE Recommendation:
1. Describes the information to be provided by the taxpayer to allow DOE to review and recommend projects,
2. Identifies the eligibility requirements, the merit review criteria for the concept papers, the merit review criteria for the
full applications for DOE recommendation and Program Policy Factors to be used by DOE in the review of applications,
and
3. Requests a tax credit that is 30% of the qualified investment not to exceed $30 million per project.
In conducting its review, DOE may utilize assistance and advice from qualified personnel from other Federal agencies and/or
contractors. DOE will obtain conflict of interest/non-disclosure acknowledgements in advance from all reviewers to assure that
application information shall be kept confidential and used only for reviewing purposes. Reviewers will be required to report all
personal and organizational conflicts of interest.
DOE reserves the right to request clarifications and/or supplemental information from some or all taxpayers submitting
applications through written submissions and/or oral presentations.
DOE may determine whether to recommend an application to the Service at any time after the full application has been received,
without further exchanges or discussions with the Taxpayer.
Neither a procurement action (under Title 48 of the Code of Federal Regulations) nor a financial assistance award (under 10 CFR
Part 600) is contemplated based on an application submitted under Notice 2013–12 (Notice).
DOE will be hosting an informational webinar on the § 48C Phase II program for potential applicants (taxpayers) on February 19,
2013 at 2:00 p.m. Eastern time. This initial webinar will provide information about how to prepare the Concept Paper.
Participants will have the opportunity to submit written questions during the webinar. Answers will be posted on the IRS website
athttp://www.irs.gov/Businesses/Advanced-Energy-Credit-for-Manufacturers-(IRC–48C)and on DOE’s eXCHANGE system at
https://eere-exchange.energy.gov/under the § 48C Phase II opportunity announcement.The February 19, 2013 webinar will
only address topics related to the concept paper phase of the process. Applicants who are subsequently invited to submit a full
application will also be invited to a webinar addressing that stage of the process.
Webinar information is as follows:
1. Click this link to start or to join the Webinar:
https://www1.gotomeeting.com/register/838885833
2. Choose one of the following audio options:
2013–10 I.R.B.551March 4, 2013

TO USE YOUR COMPUTER’S AUDIO:
When the Webinar begins, you will be connected to audio using your computer’s microphone and speakers (VoIP). A headset is
recommended.
TO USE YOUR TELEPHONE:
If you prefer to use your phone, you must select “Use Telephone” after joining the Webinar and call in using the numbers below.
Toll: +1 (415) 655–0055
Access Code: 674–939–455
Audio PIN: Shown after joining the meeting
II. DOE REVIEW PROCESS
A two-phase technical evaluation process will be used forapplications submitted under the Notice: Phase 1 — concept
paper and Phase 2 — full application. Based on the results of the concept paper review, a select number of taxpayers (up to
approximately 50) will be invited to submit full applications. At its sole discretion, DOE may give all taxpayers who submit a full
application the option of doing an in-person presentation, attheir own expense, at DOE Headquarters at 1000 Independence
Avenue SW, Washington, DC. 20585.
FULL APPLICATIONS WILL BE ACCEPTED ONLY FROM TAXPAYERS THAT RECEIVE AN INVITATION TO
SUBMIT THE FULL APPLICATION. NO OTHER FULL APPLICATIONS SUBMITTED UNDER THIS NOTICE
WILL BE REVIEWED.
•Concept Paper —
DUE April 9, 2013
The first phase requires a taxpayer to submit a concept paper. As aresult of this preliminary review, taxpayers will either receive
an invitation to submit a full application package or be removed from further consideration.DOE expects to invite selected
taxpayers to submit full applications no later than June 4, 2013.
As part of the review of the concept papers, DOE will carry out an initial compliance review to determine that (1) the concept
paper meets the eligibility requirements (see Section III), (2) allrequired information has been submitted, and (3) all mandatory
requirements of this Notice are satisfied. If a concept paper clearly fails to meet the eligibility requirements or does not provide
sufficient information for evaluation, the concept paper will beconsidered non-responsive and eliminated from further review.
•Full Application — DUE July 23, 2013
The second evaluation phase will consist of areview of full application packages submitted by invitation as a result of the concept
paper Phase. Applications submitted that were not invited, ordo not expand on successful Phase I — concept paper proposals will
not be reviewed. Successful Phase I — concept paper Taxpayers invited to submit full applicationsmay not significantly change
the scope or focus of the original concept paper proposals.
The review will be a thorough, consistent, and objective examination of applications based on merit review criteria outlined in
Section IV (F).
Prior to the comprehensive review of the full applications, DOE will review compliance to determine that (1) the application
meets the eligibility requirements, (2) the information required by this notice has been submitted, (3) the taxpayer filed a timely
concept paper, and (4) all mandatory requirements of this Notice are satisfied.
III. ELIGIBILITY INFORMATION
To be eligible, (1) concept papers and applications must be for advanced energy projects, and (2) projects must have a reasonable
expectation of commercial viability.Concept papers and full applications that do not clearly demonstrate how the proposed
project meets the eligibility requirements will not bereviewed. Eligibility requirements are as follows:
A. Qualifies as an advanced energy project
As defined in 26 U.S.C. § 48C(c)(1), the term “qualifying advancedenergy project” means a project—
(i) which re-equips, expands, or establishes a manufacturing facility for the production of:
March 4, 20135522013–10 I.R.B.

1. property designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of
§ 613(e)(2)), or other renewable resources,
2. fuel cells, microturbines, or an energy storage systemfor use with electric or hybridelectric motor vehicles,
3. electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy,
4. property designed to capture and sequester carbon dioxide emissions,
5. property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-
conserving lighting technologies and smart grid technologies),
6. new qualified plug-in electric drive motor vehicles (as defined by § 30D), qualified plug-in electric vehicles (as defined
by § 30(d)), or components which are designed specifically for use with such vehicles, including electric motors, gen-
erators, and power control units, or
7. other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Treasury
Secretary, and
(ii) any portion of the qualified investment of which is certified as eligible for the § 48C credit.
B. Has a reasonable expectation of commercial viability
The application must demonstrate that the project has a reasonable expectation of commercial viability.
IV. SUBMISSION INFORMATION FOR DOE RECOMMENDATION PROCESS
A. General
An application for DOE recommendation and ranking must include a concept paper at Phase 1 and a full application at Phase 2 as
described below. All applications shall be prepared in accordance with this request for applications for DOE recommendation in
order to provide a standard basis for review and to ensure that each application will be uniform as to format and sequence.
Concept papers and full applications should clearly address each of the eligibility requirements and applicable merit review
criteria to demonstrate the taxpayer’s capability, knowledge, and experience regarding the requirements described herein.
Taxpayers should fully address the requirements of the Notice and this request andnotrely on the presumed background
knowledge of reviewers. DOE may reject anapplication that does not follow the instructions regarding the organization and
content of the application when the nature of the deviation and/or omission precludes meaningful review of the application.
ALL CONCEPT PAPERS AND FULL APPLICATIONS MUST BE SUBMITTED THROUGH EERE eXCHANGE TO
BE CONSIDERED FOR DOE RECOMMENDATION UNDER THIS NOTICE.
CONCEPT PAPERS AND FULL APPLICATIONS RECEIVED AFTER THE STATED DEADLINES WILL NOT BE
REVIEWED OR CONSIDERED FOR DOE RECOMMENDATION.
B. Application Forms
Required forms and information for downloading concept papers and full applications are available at
https://eere-exchange.energy.gov. Taxpayers will need to register and create an account in EERE eXCHANGE at
https://eere-exchange.energy.gov/. This account will then allow the user to submitconcept papers and fullapplications for the
48C tax credit re-allocation. The taxpayer will have the opportunity to re-submit revised application materials for any reason as
long as the revision is submitted by the specified deadline.
The taxpayer will receive an automated response when the concept paper or full application is received. This will serve as a
confirmation of receipt. Please do not reply to the automated response. The Users’ Guide for Applying to the Department of
Energy EERE Funding Opportunity Announcements is found athttps://eere-exchange.energy.gov/Manuals.aspx.
C. Content and Form of Concept Papers
See Section III for a description of the eligibility requirements for the 48C tax credit under this notice. See Section IV (F) for a
description of the merit review criteria that will be used to evaluate the concept papers.
The purpose of the concept paper phase is to save taxpayers the considerable time and expense of preparing full applications for
proposed projects that are unlikely to be selected for recommendation.
The concept paper must conform to the following requirements:
2013–10 I.R.B.553March 4, 2013

•The concept pape
r must be written in English.
•All pages must be
formatted to fit on 8–1/2 by 11 inch paper with margins not less than one inch on every side. Use Times New
Roman typeface,
a black font, and a font size of 11 points or larger (except in figures and tables). A symbol font may be used
to insert Greek
letters or special characters; the font size requirement still applies.
•The control numb
er
1
must be prominently displayed on the upper right corner of the header of every page. Page numbers must
be included in t
he footer of every page.
Each concept pap
er should belimited to a single project.
Concept papers must be limited to 10 pages of narrative and five (5) pages of appendices. Pages in excess of the page limitation
will not be considered for review. Merit review criteria are listed in Section IV (F).
Table 1. Content Requirements for Concept Papers
SECTIONINFORMATION RE
QUIRED
Describe succi
nctly:
1. A brief summary
of the project.
2.
Tax credit requested (30% of the qualified investment and no more than $30 million).
Executive Summ
ary
3. The potential impact that the proposed projectwould have on the relevant technology field, as
well as on domestic manufacturing.
For eligibility purposes, provide:
Description of
Advanced Energy
Project
A description of the specified advanced energy property (SAEP) the re-equipped, expanded or new
manufacturing facility will produce. In the case of a project producingpropertythat,afterfurther
manufacture, will become an SAEP, the taxpayer should (a) describe both the property produced at
the facility and the SAEP for which the produced property will be used, and (b) state the percentage
of the property produced at the facility that will be used for the production of SAEP.
For merit review purposes, the taxpayer should present a discussion of:
1. The market segment(s) for the manufactured product including: sufficiency of existing
market(s), particularly dollar volume; marketstability (demand and price for product and end
product/system(s)); potential for sale of product into multiple market(s); and growth potential for
market(s).
2. Competitiveness of the product, including: pricing; strength of competitors (new and existing);
and market entry strategy (e.g., product differentiation, barriers to entry, intellectual property
rights, first mover advantage, etc.).
3. Other viability factors, including: payback period; profitability of investment; and financial
assumptions (costs, revenues, discount rate, etc.).
4. Potential for project success based on: the level of commitment as demonstrated through
references to partnership agreements, permits and other examples of progress; the track record
of the management team in areas relevant to the project; and the identification of potential
risks and plans for their mitigation.
Description of
Commercial Viability
5.
Description of overall corporate health, including any company-wide issues that could affect the
taxpayer’s ability to complete the project as proposed. Discuss any legal claims or liabilities,
planned debt restructuring, planned corporate actions, or other factors which could negatively
affect the likelihood of project completion.
1
Upon login to EERE eXCHANGE (https://eere-eXCHANGE.energy.gov/login.aspx), the taxpayer may access its submissions to this notice by clicking the “My Submissions” link in the
navigation bar on the left side of the page. Every application that it has submitted to EERE and the corresponding control number is displayed on this page. If the Taxpayer submits more than
one application to this notice, a unique control number is assigned to each application.
March 4, 20135542013–10 I.R.B.

Briefly describe:
1. How the facility is sustainable in the United States (U.S.). As applicable, include discussion
of what aspects of the product, technology, facility, process, or other aspect of the project are
well suited for manufacturing in the U.S., the extent this activity is supported by local or
domestic supply chain(s), and if the project is likely to be foundational in a strategic and growing
industry segment, or other ways in which the project is sustainable or significant for American
manufacturing.
2. How the project adds to regional economic development, including whether the product or
process is likely to contribute to greater research and development in the U.S., or if the project
brings new skills to the American workforce.
American
Manufacturing
3. The major effects receipt of this tax credit would have on your decision making (examples could
include decisions related to: whether to pursue the project; whether to develop the project in the
U.S. or elsewhere; the timing of pursuing the project; size of the project, etc.).
Technological
Innovation
For merit review purposes, briefly identify any unique technological innovations in which the
product or process will play a key role.
Domestic Job Creation
For merit review purposes, please enter the number of direct jobs in the data fields in the
eXCHANGE system (described in IV-E). Jobs should be listed as full-time equivalent employees
directly billable to the project for each calendar year.
Project Schedule and
Time to Completion
For merit review purposes, identify the date the project is scheduled to be fully operational.
Impact on Air
Pollution and
Anthropogenic
Emissions of
Greenhouse Gases
For merit review purposes, briefly identify any unique contribution(s) the product will make in
avoiding or reducing air pollutants and/or anthropogenic emissions of greenhouse gases.
D. Content and Form of Full Applications
Based on the results of the concept paper review, a select number of taxpayers will be invited to submit full applications.FULL
APPLICATIONS WILL BE ACCEPTED ONLY FROM TAXPAYERS THAT HAVE RECEIVED AN INVITATION TO
SUBMIT THE FULL APPLICATION. NO OTHER FULL APPLICATIONS WILL BE REVIEWED.
The Advanced Energy Project must be deemed eligible and a concept paper must have been submitted in order for a full
application to be considered.
Full applications must conform to the followingrequirements:
•All full applications must be written in English.
•All pages must be formatted to fit on 8–1/2 by 11 inch paper with margins not less than one inch on every side. Use
Times New Roman typeface, a black font, and a font size of 11 points or larger (except in figures and tables). A symbol
font may be used to insert Greek letters or special characters; the font size requirement still applies.
•The control number, which is the same number used for the concept paper,
2
must be prominently displayed on the upper
right corner of the header of every page. Page numbers must be included in the footer of every page.
•Financial models should be submitted using Microsoft ® Excelspreadsheet(s) and must include calculation formulas and
assumptions.
Each full applicationshouldbelimited to a single project.
2
Upon login to EERE eXCHANGE (https://eere-eXCHANGE.energy.gov/login.aspx), the Taxpayer may access its submissions to this notice by clicking the “My Submissions” link in the
navigation on the left side of the page. Every application that it has submitted to EERE and the corresponding control number is displayed on this page.If the Taxpayer submits more than
one application to this notice, a unique control number is assigned to each application.
2013–10 I.R.B.555March 4, 2013

The full application,excluding Appendices and Taxpayer Data Spreadsheet, shall not exceed thirty (30) pages. Pages in excess
of the page limitation will not be considered for review. Nomaterial may be incorporated inany application by reference
as a means to circumvent the page limitation.
This section outlines the format of the full application to be submitted by the taxpayer to the DOE for project recommendation.
Guidelines and suggestions for specific content are included below. Full applications should be arranged in the following
order. Strict adherence is required.
Table 2. Content Requirements for Full Application
SECTIONINFORMATION REQUIRED
Provide an overall summary of the project, covering the following:
1. A description of the project, including incremental manufacturing capacity.
2. The SAEP the re-equipped, expanded or new manufacturing facility will produce. In the
case of a project producing property that, after further manufacture,will become SAEP, the
taxpayer should describe both the property produced at the facility and the SAEP for which
the produced property will be used.
Executive Sum
mary
and Introduct
ion
3. The amount of tax credit requested and the estimated amount that will be treated as a qualified
investment. The Taxpayer must request a credit that is no more than $30 million and equal to
30 percent of the estimated amount that will be treated as a qualified investment (as determined
under § 48C) if the project is certified as a qualified advanced energy project. The taxpayer
may use a reasonable methodology and assumptions in determining such estimated amount.
Describe:
1. How the facility is sustainable in the U.S. As applicable, include discussion of what aspects
of the product, technology, facility, process,or other aspect of the project are well suited
for manufacturing in the U.S., the extent this activity is supported by local or domestic
supply chain(s), and if the project is likely to be foundational in a strategic and growing
industry segment, or other ways in which the project is sustainable or significant for American
manufacturing.
American
Manufacturi
ng
2. How the project adds to regional economic development, including whether the product or
process is likely to contribute to greater research and development in the U.S., or if the project
brings new skills to the American workforce.
1. Business plan with information sufficient to allow reviewers to fully evaluate the project. This
section should include, but not be limited to:
a)The market environment for the product
i.Define the overall market and market segment(s) the product will support and
the growth potential of those market segments. Describe the projected market
share for the next five years. Please document any assumptions with citations
from market reports, conference proceedings or other sources.
ii. Describe the size of existing market(s) in terms of dollar volume and number of
players. If product can be sold in multiple market segments, please explain the
potential for the various market segments.
iii. Market stability (demand and price). Discuss trends and projections for demand
and price. Describe growth potential (short-term and long-term).
iv. A discussion of current competing products and competitors likely to enter the
target market.
Commercial
Viability
v. Market entry strategy, including a discussion of any barriers to entry, product
differentiation, first moveradvantage, etc. Describe any strategies for expanding
market share.
March 4, 20135562013–10 I.R.B.

vi. Overview of intellectual property arrangements with respect to the property
produced.
vii. Discuss sales forecasts. Identify confirmed or potential customers who will
purchase, lease or use the property produced.
b)Financial Model Information
i.Include a financial model, detailing the investments in and the cash flows
anticipated over the project’s expected lifecycle.
ii. Description of payback period, Net Present Value (NPV), Adjusted Present
Value (APV) and break-even analysis for the project. Key financial ratios,
including but not limited to Return on Investment and Return on Assets, should
be provided as well.
iii. The estimated amount that will betreated as a qualified investment (as
determined under § 48C) if the project iscertified as a qualified advanced energy
project. The taxpayer may use a reasonable methodology and assumptions in
estimating this amount.
iv. The financing and ownership structure, including all beneficiaries.
v. A description of the amounts and timings of off-take agreements to be entered
into prior to commercial operation, and the financial strength of off-takers.
vi. The amount of equity to be invested and the sources of such equity. Include
as a separate appendix copies of any existing equity funding commitments or
expressions of interest from equity funding sources for the project.
vii. The amount of the total debt obligations to be incurred and the funding sources of
all such debt. Include as a separate appendix copies of any existing debt funding
commitments or expressions of interest from debt funding sources for the project.
viii. Identification of any other federal, state or local government funding assistance.
ix. Schedule with any project milestonesnot delineated in “Project Schedule and
Time to Completion.”
x. A description of the methodology and assumptions used in the financial model.
c)Management Team
A description of the key management team members who will design, construct, permit,
and operate the facility. Include a description of relevant industry experience of the
top-tier executives responsible for the success of the project. The taxpayer should
demonstrate that the management team members have a corporate history of successful
completion of similar projects.
d)Risk Management
Description of likely risks and mitigation strategies.
2. Include as a separate appendix a copy of audited financial statements for the taxpayer and
other projected funding sources for the mostrecently ended three (3) fiscal years, and the
unaudited quarterly interim financial statements for the most recent quarter. Indicate any
unusual circumstances of which reviewers should be aware.
2013–10 I.R.B.557March 4, 2013

Provide evidence of the potential for technological innovation and commercial deployment, as
indicated by the production of new or significantly improved technologies; improvements in
levelized costs of stored or generated energy; manufacturing significance and value, as follows:
1. A discussion of whether the project will produce a new or significantly improved technology
as compared to commercial technologies currently in service in the U.S.
34
2. Calculations of incremental cost improvements for the SAEP attributable to the facility,
relative to comparable existing energy solutions. This information is captured with the related
metrics of cost advantage over competitors, levelized cost, and the cost of CO
2
abatement.
Section VII below explains these metrics and their quantification in greater detail. In addition
to cost improvements, the taxpayer should describe other technological improvements for the
SAEP attributable to the system or facility, as compared to the respective baseline energy
solution.
Technological
Innovation and
Commercial
Deployment
3. A calculation of the Attributable Annual Manufacturing Capacity (AAMC) in the
“Attributable Manufacturing” tab of the Taxpayer Data Spreadsheet. The AAMC will be
divided by the amount of tax credit requested todetermine a normalized value for comparing
different project proposals.
DOE will primarily focus on direct job creation for this evaluation criterion. DOE will apply a
multiplier to calculate indirect job creation. DOE will consider both direct and indirect jobs created
on an annual basis over a five-year period beginning in 2013.
Please fill out the “Direct Jobs” tab in the Taxpayer Data Spreadsheet and list the direct jobs in terms
of full-time equivalents (FTEs) that will be created during both construction and operation of your
facility.
5
Please be as specific as possible, as reviewers will assess the reasonableness of taxpayers’
assertions. Direct Jobs are jobs of people whose work is directly billed to the project.
Domestic Job Creation
Do not list Indirect Jobs, which are those in the supply chain rather than those at the project itself.
Examples of indirect jobs include employees ofcompanies who deliver materials, equipment,
and services used on the project, such as steel workers, accountants, or end use installers. The
review team will calculate the indirect jobs using a consistent methodology based on nationwide
input/output economic models for advanced manufacturing.
1. To quantify the time from certification to completion, the taxpayer should fill out the first tab
of the Taxpayer Data Spreadsheet. The dates required are: date of receiving all permits; date
of construction; and date of commencement of production.
2. In addition, the taxpayer should provide a narrative supporting the taxpayer’s capability to
accomplish the technical objectives of the proposed project and demonstrating the overall
feasibility of implementing the project at the proposed site. This includes, but is not limited to:
a) A project schedule for constructing and commissioning that
i.is comprehensive and provides sufficient detail to demonstrate how taxpayer will
meet the certification requirements, and
Project Schedule and
Time to Completion
ii. demonstrates that the project is on track to be placed in service within three (3)
years of such certification. The schedule should demonstrate that the taxpayer
understands the required tasks and has allowed realistic times for accomplishing
the technical and financial tasks. The schedule should include the milestones.
3
A new or significantly improved technology means a technology that is concerned with the production, consumption or transportation of energy that isnot a commercial technology currently
in use in the U.S., and either (i) has only recently been developed, discovered or learned, or (ii) involves or constitutes one or more meaningful and important improvements in productivity
or value in comparison to commercial technologies currently in use in the U.S.
4
A commercial technology currently in use in the U.S. means a technology currently in general use in the commercial marketplace in the U.S. A technologyis in general use if it has been
installedinandisbeingusedinthreeormorecommercialprojectsintheU.S. in the same general application as in the proposed project, and has been inoperation in each such commercial
project for a period of at least five years. The five-year period shall be measured, for each project, starting on the in-service date of the project or facility employing that particular technology
and ending on the date that full applications are due.
5
Full-time equivalent (FTE) is a way to measure a worker’s involvement in a project. An FTE of 1.0 means that the person is equivalent to a full-time worker, while an FTE of 0.5 signals that
the worker is only half-time. FTE is defined by the Government Accountability Office (GAO) as the number of total hours worked divided by the maximum number of compensable hours
in a work year as defined by law. For example, if the work year is defined as 2,080 hours, then one worker occupying a paid full time job all year would consume one FTE. Two employees
working for 1,040 hours each would consume one FTE between the two of them.
March 4, 20135582013–10 I.R.B.

b) A description of the taxpayer’s plan to obtain and complete all necessary permits, and
environmental authorizations and reviews.
c) A description of the current infrastructure at the site available to meet the needs of
the project.
3. This section requires the following documentation, as is applicable to the project, to be
included as appendices:
a) A complete list of all federal, state, and local permits, including environmental
authorizations (if applicable) or reviews, necessary to commence construction of
the project. Explain what actions have been taken to-date to satisfy the required
authorizations and reviews, and the status of each.
b) As applicable, documentation supporting taxpayer’s conclusion that the proposed site
can fully meet all environmental, water supply, transmission interconnect, and other
necessary requirements. Suchdocumentation may include signed agreements, letters
of intent, or term sheets, such as for supply and product transportation, and regulatory
approvals supporting the key claims.
c) Documentation demonstrating the taxpayer’s ownership or control of the project site,
such as a deed, a signed option to purchase the site from the site owner, or a letter of
intent from the site owner to sell or lease to the taxpayer.
d) Copies of the contracts or summaries of thekey provisions of the following agreements:
i.Operations & Maintenance Agreement: include a summary of the terms and
conditions of the contract and a copy of the contract.
ii. Shareholders Agreement: summarize key terms and include the agreement as
an appendix.
iii. Engineering, Procurement and Construction Agreement: describe the key terms
of the existing or expected contract arrangement, including firm price, liquidated
damages, hold-backs, performance guarantees, etc.
iv. A Professional Engineer(PE) must inspect and certify the project documents for
feasibility. PE may be an employee of the taxpayer.
Impact on Air
Pollution and
Anthropogenic
Emissions of
Greenhouse Gases
Describe the direct impact that the SAEP will have on net reductions of air pollution and
anthropogenic emissions of greenhouse gases (GHGs). Annual pollution and GHG emissions from
the operation of the manufactured product shouldbe quantified and discussed. This description
includes total emissions reduced as derived by the project’s AAMC and the output of the Taxpayer
Data Spreadsheet, as shown in Section VII, for the re-equipped, expanded or new manufacturing
facility. Emissions reductions will be divided by the amount of tax credit requested to determine
a normalized value for comparing different project proposals.
6
Taxpayer Data
Spreadsheet
Complete template provided in eXCHANGE.
Please see Section VI for information on supporting documents.
E. Submission and Registration Requirements for Application to DOE
Please read carefully the notice and the statute to determine if your project is eligible for the § 48C credit.The tax credits are
for certain types of property in manufacturing facilities;they are not for renewable deployment projects or energy
efficiency installation projects.
DOE plans to review applications and recommend for tax credits through the following specific steps:
•Taxpayer submission of a concept paperApril 9, 2013
•If requested, a taxpayer submission of a Final ApplicationJuly 23, 2013
•DOE recommendations to the Service(no later than)October 11, 2013
6
If the taxpayer believes that the total emissions reduction from the SAEP attributable to the project is not accurately represented by the values provided in the Taxpayer Data Spreadsheet,
the taxpayer may also provide a transparent justification for a different calculation and should employ cited numbers wherever assumptions are made.
2013–10 I.R.B.559March 4, 2013

An application to DOE will not be considered in the 2013 allocation round unless the concept paper is received by April 9, 2013
and, if requested, the full application is received by July 23, 2013. Only applications submitted via the EERE eXCHANGE
system (https://eere-exchange.energy.gov) will be accepted.
1. Where to Submit
Application material must be submitted under this announcement through EERE eXCHANGEat https://eere-exchange.energy.gov/
to be considered.You cannot submit an application through EERE eXCHANGE unless you are registered. Please read
the registration requirements below carefully and start the process immediately. Applications submitted by any other means
will not be accepted.
If you have problems completing the registration process or submitting your application, send an email to the EERE eXCHANGE
helpdesk ateere-exchangesupport@hq.doe.gov.
It is the responsibility of the taxpayer to verify successful transmission prior to the Application due date and time.
2. Registration Process Requirements
Prior to submitting an application, the taxpayer must register and create an account on EERE eXCHANGE at:
https://eere-exchange.energy.gov/. This account will then allow the user to register for any open EEREFunding Opportunity
Announcements (FOAs) that are currently in eXCHANGE. It is recommended thateach business unit use only one account as the
appropriate contact point for each submission.
The taxpayer will receive an automated response when the concept paper and full application have been submitted. This will
serve as a confirmation of receipt. Please do not reply to the automated response. The taxpayerwill have the opportunity to
re-submit revised application materials for any reason until the specified deadline.
The taxpayer is responsible for the integrity and structure of the electronic files. DOE will notbe responsible for reformatting,
restructuring or converting any files submitted in response to this request.
3. Electronic Authorization of Applications
Submission of material under this announcement through electronic systems used by DOE, including EERE eXCHANGE,
constitutes the authorized representative’s approval and electronic signature.
4. Markings of Confidential Information
If elements of an application contain information the taxpayer considers to be trade secret, confidential, privileged or otherwise
exempt from disclosure under the Freedom of Information Act(FOIA, 5 U.S.C. 552), the taxpayer shall assert a claim of
exemption at the time of application by placing the following text on thefirstpage of the application, and specify the page or
pages of the application to be restricted:
“The data contained in pages [____] of this document which hereby forms a part of the application
have been submitted in confidence and contain trade secrets or proprietary information, and such data
shall be used or disclosed only for review purposes. If this taxpayer is issued a tax credit under Section
1302 of the American Recovery and Reinvestment Act of 2009 as a result of or in connection with the
submission of this application, DOE, except as prohibited or limited by law, shall have the right to
use or disclose the data herein, other than such data that have been properly reasserted as containing
trade secrets or proprietary information in the agreement described under section 4.02(9) of Notice
2013–12. This restriction does not otherwise limitthe government’s right to use or disclose data that
was obtained from any source, including the taxpayer.”
To further protect trade secret, confidential, privileged or otherwiseexempt information, each line or paragraph on the page or
pages containing such data must be specifically identified and marked with text that is similar to the following:
“The following contains proprietary informationthat [name of Taxpayer] requests not be released to
persons outside the Government, except for purposes of review.”
F. Application Review Information
1. Compliance Review for Concept Papers and Full Applications
As explained in more detail in Sections IIand III, as part of the review of the concept papers and full applications DOE will
carry out an initial compliance review to determine that (1) the application meets the eligibility requirements, (2) the required
information has been submitted, (3) as applicable to full applications, a timely concept paper was submitted, and (4) all mandatory
requirements of this notice are satisfied. If an application clearly fails to meet the eligibility requirementsor does not provide
sufficient information for evaluation, theapplication will be considered non-responsive and eliminated from further review.
March 4, 20135602013–10 I.R.B.

2. Merit Review Criteria
a. Merit Review Criteria for Concept Papers
Subsequent to determining that the taxpayer’s project is eligible, DOE will screen projects for Technical Applicability and
Corporate Viability on a pass/fail basis; projects that pass thescreen will then be assigned numeric scores based on Commercial
Viability. Criteria for the Technical Applicability Review and Commercial Viability are shown below.
Technical Applicabilityand Corporate Viability Review criteria (pass/fail):
•Technical validity
•Technology readiness
•Technology appropriateness forthe role that is contemplated
•Potential technology obsolescence in the near term
•Corporate Viability
Only Advanced Energy Projects that pass the above screen willbe scored for Commercial Viability. Commercial Viability
merit review criteria are as follows:
1) Market and Product Viability
(35 points)
•Market segment(s) for the manufactured product
•Sufficiency of existing market(s) ($ volume)
•Market stability (demand and price)
•Growth potential for market(s)
•Potential for sale of product into multiple market segments
•Product is competitive
•Pricing
•Product differentiation or technical novelty
•Strength of competitors (new and existing)
•Market entry strategy (barriers to entry, intellectual property rights, first mover advantage, and
others as appropriate to the product.)
2) Project Financial Viability
(35 points)
•The investment i
s profitable, based on described cash flow analysis of the project
•Payback period i
s reasonable
•Assumptions (co
sts, revenues, discount rate, etc.) are reasonable
3) Other Viabili
ty Factors
(25 points)
•Level of Commitment — Commitment to the project isdemonstrated through references to partner-
ship agreements, existing financing arrangements, permits, andother indicators of progress
•Management Team — Team has a track record of success in areas relevant to the project
•Risk Management
•All likely risks have been identified
•Risk mitigation strategies havebeen identified and are credible
4) Exceptional Project Strengths
(5 points)
The exceptional strength of the proposed project in any of the areas above (for example, the project is
the first of its kind or has a very short payback period)
Concept papers will be rank ordered based on their numeric scores, and the following may be considered in determining the final
group of concept papers invited to submit full applications:
2013–10 I.R.B.561March 4, 2013

•American Manufa
cturing Significance
•Sustainability
offacilityintheU.S.
•Product and faci
lity support a robust local or domestic supply chain; the company is, or is likely
to become, a key p
layer in its local economic, business,and academic (if applicable) network
•The product is li
kely to contribute to, or otherwise support, greater research and development
activity in the U
.S.
•The project brin
gs new skills to the American workforce
•Technological I
nnovation
•Domestic Job Cre
ation
•Project Schedul
eTimetoCompletion
•Impact on Air Pol
lution and Anthropogenic Emissions of Greenhouse Gases
•U.S. Economic Com
petitiveness
•Regional Economi
c Development
•Geographic Diver
sity
•Technology Diver
sity
•Project Size Dive
rsity
b. Merit Review Criteria for Full Applications
In an effort to make the application process suitable to a diverse set of projects and streamline the DOE review, taxpayers must
input the data necessary to address the merit review criteria into the Taxpayer Data Spreadsheet, shown in Section VIII.
7
Each proposed project will be reviewed based on the SAEP produced at the manufacturing facility. In the case of a project
producing property that, after further manufacture, will become SAEP, the DOE will review the project based on the SAEP for
which the property produced at the facility will be used. For example, the review under the emissions criterion for a project
that manufactures wind turbine blades will be in the context of the emissionsprofile of wind turbines, rather than the more
narrow characteristics of blade production alone. In this example, the wind turbine blade will be assigned a portion of the
overall emissions profile of a wind turbine based on the percentage of the wind turbine’s cost that is attributable to the wind
turbine blade, as discussed in Section VII below.
The taxpayer must calculate the incremental energy produced, saved or stored due to the project. The taxpayer will be required
to provide and show the work used to produce derived numeric values specific to its product. In addition, it is critical that the
taxpayer show and support allnecessary calculation steps in the project’s narrative.
The DOE review and recommendation process generallyrequires the use of the U.S. national averages (e.g., national grid mix,
national fleet fuel efficiency) as abaseline for certain comparisons.
8
Full applications will be evaluated based on the following criteria:
1) Has strong pote
ntial to expand American manufacturing (Weight: 25%):
•Sustainability of facility in the U.S.
•Product and facility support a robust local or domestic supply chain; the company is, or is likely to
become, a key player in its local economic, business, and academic (if applicable) network
•The product is likely to contribute to, or otherwise support, greater research and development activity
in the U.S.
•The project brings new skills to the American workforce
•Growth potential of industry segment(s)
2) Demonstrates significant potential for commercial viability (Weight 20%):
7
If a Taxpayer can justify that it has a value that better represents its project than the values referenced in the Taxpayer Data Spreadsheet, the taxpayer may 1) select a value reported in the
open literature, justify the use of this value as opposed to one supplied byDOE, and perform any necessary unit conversions, or 2) develop an independent estimate analogous to ones supplied
in the Section H of the spreadsheet. Any customized calculations should be done according to commonly accepted industry standards and be sufficiently transparent to be reproducible by the
merit review panel.
8
A taxpayer may provide a different baseline for comparison if the taxpayer can justify that the SAEP attributable to the project will be put in service in a more narrowly-defined geographic
region. Any customized calculations should be done according to commonlyaccepted industry standards and be sufficiently transparent to be reproducible by the merit review panel.
March 4, 20135622013–10 I.R.B.

•Thebusinessisc
apable of sustaining the project
•Market segment(
s) for the manufactured product are identified
•Product is compe
titive
•Manufacturing p
roject cost estimate is reasonable and supported
•The investment i
s profitable and the payback period is reasonable relative to the type of project
•Risk management i
ssues and mitigation strategies are identified and sufficiently addressed
•Management Team h
as a track record of success in areas relevant to the project
3) Has the potential for technological innovation and commercial deployment, as indicated by
(Weight 20%):
•Production of new or significantly improved technologies
•Improvements in levelized cost of stored or generated energy
•Manufacturing significance and value
4) Provides domestic job creation (Weight 15%):
•Total jobs created and jobs per tax credit requested
•Quality and sustainability of operating jobs created
•Reasonableness of number of jobs forecasted
5) Has shortest project time from certification to completion (Weight 10%)
•Number of months to project completion
•Readiness to proceed with project as evidenced by firmness of site selection, progress of permitting
process, written commitments from actual project partners
•Reasonableness of schedule forecasted
6) Contributes to avoiding or reducing airborne pollutants and/or greenhouse gases (Weight 10%):
•Calculated total of net reduction or avoidance of anthropogenic emissions of greenhouse gases
•Avoided, sequestered, or reduced pollutants (e.g.NOx, SOx, etc.)
•Reasonableness of analysis and assumptions usedto forecast emissions reductions or avoidance
(based upon AAMC assumptions in Taxpayer Data Spreadsheet)
The comments and the scores assigned during the merit review process will not be made available for review by the taxpayer.
3. Program Policy
Factors
In addition to the
above criteria, DOE may consider the following program policy factors in determining which taxpayers will
be invited to subm
it full applications to select for recommendation to the Service.
•U.S. Economic Competitiveness
•Geographic Diversity
•Technology Diversity
•Project Size Diversity
•Regional Economic Development
Unlike the Merit Review Criteria, these factors are not weighted.
V. INSTRUCTIONS REGARDING QUANTITATIVE FACTORS INFORMATION SUBMISSION
Taxpayers should fill out the Taxpayer Data Spreadsheet with the relevant data andinclude it with the application. This is
intended to capture information in a consistent manner to allow a quantitative comparison to be made across all eligible projects.
It is essential that taxpayers conform to this process in order to ensure a competitive review of all proposals. Additionally,
taxpayers should substantiate in their narrative any data which is inputted into the Taxpayer Data Spreadsheet. Specifically,
taxpayers should cite or justify their stated assumptions and show any calculations which are not performed by the Taxpayer
Data Spreadsheet. The information below provides instructions for inputting data, examples specific to each type of SAEP, and
guidance on how to use the reference data listed in Section VII.
Attributable Annual Manufacturing Capacity (AAMC)
2013–10 I.R.B.563March 4, 2013

In order to assess the significance of a taxpayer’s proposed project, the following formulas (or their equivalent) must be used
to quantify the AAMC. AAMC measures the total impact over thelifetime of deployed property which is attributable to one
year of manufacturing. The AAMC will be divided by the qualified investment to determine the relative value, per dollar of
tax credit, of different project proposals. Finally, the AAMCwill be used to assess production significance and emissions
abatement on a per-dollar-of-tax-credit basis.
General AAMC Instructions:The AAMC is calculated with four terms, annual production, fractional system contribution, annual
performance of the SAEP, and expected lifetime of the deployed property. For annual production, taxpayers are required to justify
the claimed production by providing yield loss (both manufacturing and downstream) and throughput data wherever possible. In
particular, taxpayers should discuss previous manufacturing experience on similar or identicalmanufacturing equipment. If the
taxpayer’s annual production is not measured in terms of kWh, gallons of gasoline, or Mtons CO
2
(e.g., solar water heating,
biodiesel, or methane gas recapture, respectively) then a conversion factor between the units of measurement and kWh, gallons
of gasoline, or Mtons CO
2
should be cited and applied. When calculating the fractional system contribution, taxpayers should
transparently state and justify (with citations wherever possible) current and future pricing assumptions for all significant value
chain segments, includingthe property produced at the proposed facility. To calculate real-worldannual performance, taxpayers
should identify and employ the necessary de-rating factors, including degradation rates, such that the claimed annual performance
is reflective of the average annual performance over the lifetime of the SAEP. Where appropriate, typical resource and use
conditions should be chosen from the reference data provided in Section VII. If the necessary reference data is not available
or representative of the taxpayer’s specific manufactured property, the taxpayer should provide and substantiate assumptions
with market reports and/or field data where possible. A similar approach should be taken for the deployed property lifetime.
Specifically, if reference data from Section VII is not used, the taxpayer should cite life-cycle performance data of previously
deployed, comparable property. Provided below are equations and examples corresponding to each type of SAEP which can
be used as high level guidance when calculating AAMC.
Electricity Generation: For SAEP used to produce energy from the sun, wind, geothermal, or other renewable resources, the
following formulas shall be used to estimate the electricity generation attributable toproperty produced at the proposed facility.
Specifically, the AAMC is the kWhs generated which can be attributed to one year’s worth of production from the proposed
project:
Where:
And:
March 4, 20135642013–10 I.R.B.

Example:
A photovoltaic company is building a “50 MW” crystalline silicon solar cell manufacturing line. 50 MW is input as the first term “W
peak production
per year”
which is the annual peak power output of property produced from the manufacturing line. This 50 MW number is multiplied by a series of terms to produce an
AAMC that represents the true lifetime electricity generation from this property after it is deployed.
The second term, “Fractional System Contribution” is used to discount the 50 MW by the solar cell’s fraction of a solar system’s total value. In this example,
the company purchases silicon wafers and other consumable materials and processes them into a functional cell. The Fractional System Contribution represents
the added value that the manufacturing process adds to the final system price. If the market value of a wafer and consumables is $0.25/W
p
, the cells are sold
for $0.40/W
p
, and the total factory gate price of the entire PV system hardware (including the inverter and balance of system components) is $1.50/W
p
,thenthe
Fractional System Contribution is (.40–0.25)/1.5=10%. Note: in this example, 100% of the product manufactured by the solar cell line is allocated forSAEP.If
instead, some fraction of the rated 50 MW capacity was allocated for an application other than SAEP, then the “Percentage SAEP” would be reduced from 100% to
account for this diverted product stream.
The third term, “Capacity Factor” is used to calculate the ratio of annual energy produced to the total energy implied by the peak power rating of the manufactured
property. In this example, the power output of the cells are reduced slightlywhen they are incorporated into a module and reduced further when the DC power
from the module is converted to useable AC power via an inverter. Additionally, the modules are projected to degrade over their deployed lifetime. Theactual
average annual energy output of the system over its lifetime is determined by these reductions and the annual solar insulation or resource which is typical of current
installations.
The fourth term, “Deployed Property Lifetime,” is the anticipated hours of operation of the manufactured property over its lifetime (after being incorporated
into an end of supply chain component or system). In this example, the end of supply chain component is a photovoltaic module which may have a lifetime of25
years. Thus the Deployed Property Lifetime would be 219,000 hours (25 years multiplied by 8,760 hours per year). Note: if the end of supply chain component
property was instead, a PV inverter, then the Deployed Property Lifetime would be the expected lifetime, as evidenced by warranty or field data, of theinverter,
notthe PV system. If the potential lifetime of the end of supply chain component islongerthan the expected lifetime of the generation system, then the Deployed
Property Lifetime should be equal to the expected system lifetime.
Energy Conservation: For SAEP designed to conserve energy, such as advanced building, smart grid, or industrial technologies,
the following formulas shall be used to estimate the energy saved which is attributable to the incorporation of the property
produced at the proposed facility. Specifically, the AAMC is the kWhs saved which can be attributed to one year’s worth of
production from the proposed project:
Where:
And:
2013–10 I.R.B.565March 4, 2013

Example:
A heating, ventilating, and air conditioning (HVAC) equipment supplier is re-equipping a factory for the manufacture of advanced condensers. The re-equipping
will enable 10,000 advanced condensers to be manufactured annually. This number will be inputted as the first term “# Units per year.” For the equationsusedabove,
the condenser could represent a sub-component of an advanced HVAC “component” (the complete collection of sub-components required to enable the conservation
of energy,e.g., an advanced air handler, controller, packaging unit, etc.). Alternatively, if the condenser alone provides the full energy conservation benefit and
can be integrated with traditional HVAC systems in a straightforward manner, then the condenser would be the “component.” In either case, the energy consuming
“system” is the entire energy load which is directly impacted by, and fully encompassing of the energy conservation benefit. For this example, the system is simply
a building.
The second term, “Fractional Component Contribution” is used to calculate the value fraction of an end of supply chain component that the manufacturedcon-
denser comprises. In this example, the company purchases supplies (fans, tubing, etc.) and materials (sheet metal, solder, etc.) to assemble a functional condenser.
The “Fractional Component Contribution” represents the added value that the manufacturing process adds to the final component price. If the market value of
the supplies and materials is $100 per unit, the controller assembly is sold to downstream manufacturers for $200, and the total “factory gate” price toaHVAC
installer of the entire HVAC component is $2,000, then the “Fractional Component Contribution” is (200–100)/2000 = 5%. Note: if for example, 20% of the units
manufactured were used in a different system where there was no energy conservation benefit, then the “Percentage SAEP” term would be 80% and the “Fractional
Component Contribution” would be further reduced accordingly.
The third term, “Annual Energy Savings per Unit” is used to calculate the annual energy savings which is enabled by incorporatingonlythe component into a
system and assuming typical climate and operation. In this example, the electricity consumption of the building may be decreased by 5,000kWh per year.
The fourth term, “Deployed Property Lifetime,” is the anticipated years of operation of the manufactured property over its lifetime. In this example,thean-
ticipated years of operation should equal the warranty on the entire HVAC unit. Note: if the sub-component lifetime is shorter than the expected lifetime of the
component, then the sub-component lifetime should beused for the “Deployed Property Lifetime.” The lifetime of the sub-component cannot be longer than the
lifetime of the component or system in which it is installed.
Fuel Efficiency: For SAEP which increases fuel efficiency, such as a hybrid-electric or plug-in electric drive motor vehicle, the
following formulas shall be used to estimate the annual energy saved which is attributable to the incorporation of the property
produced at the proposed facility. Specifically, the AAMC is annual fuel savingswhich can be attributed to one year’s worth of
production from the proposed project:
Where:
And:
March 4, 20135662013–10 I.R.B.

Example 1:
An automobile supplier is expanding a factory for the manufacture of hybrid-electric controller assemblies. The expansion will enable 10,000 additional con-
trollers to be manufactured annually. This number will be inputted as the first term “# Units per year.” For the equations used above, the controller could represent
a sub-component of a hybrid drive train “component” (the complete collection of sub-components required to enable the efficiency improvement,e.g., a controller,
battery, and electric motors). Alternatively, if the controller alone provides the full fuel efficiency improvement and can be integrated with a traditional powertrain,
then the controller would be the “component.” In either case, the fuel consuming “system” is the entire load which is directly impacted by, and fully encompassing
of the fuel efficiency improvement. For this example, the system is simply the vehicle.
The second term, “Fractional Component Contribution” is used to calculate the value fraction of an end of supply chain component that the manufactured
controller assembly comprises. In this example,the company purchases supplies (PCBs, power controllers, etc.) and materials (adhesives, wiring,etc.) to assemble
a functional controller. The “Fractional Component Contribution” represents the added value that the manufacturing process adds to the final component price.
If the market value of the supplies and materials is $500 per unit, the controller assembly is sold to downstream manufacturers for $1000, and the total“factory
gate” price to an automobile manufacturer of the entire hybrid electric component is $4,000, then the “Fractional Component Contribution” is 12.5%.Note: if,
for example, 10% of the units manufactured were allocated instead for electric golf carts (non-SAEP)then the “Percentage SAEP” term would be 90% and the
“Fractional Component Contribution” would be further reduced accordingly.
The third term, “Annual Fuel Savings per Unit” is used to calculate the annual fuel savings which is enabled by incorporatingonlythe component into a system
under typical use patterns. In this example, the fuel economy of the vehicle may be increased by 10 miles per gallon. The actual annual fuel savings wouldbe
determined by this increase in fuel economy and theannual vehicle miles traveled, for which the taxpayer should provide cited data. For alternative fuels such as
diesel, savings should be converted to gallons of gasoline equivalent (GGE). For electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) systems, where
electricity is consumed to further reduce the fuel consumption, an additional calculation of MWh consumed per GGE saved is required in the calculationofCO
2
emissions. See further instructions under “Impact on Air Pollution and Anthropogenic Emissions of Greenhouse Gases.”
The fourth term, “Deployed Property Lifetime,” is the anticipated years of operation of the manufactured property over its lifetime. In this example, the antici-
pated years of operation should be substantiated by citing fleet lifetime of previously deployed comparable systems. Note: if the sub-component lifetime is shorter
than the expected lifetime of the system, then the sub-component lifetime should be used for the “Deployed Property Lifetime.” For example, if the subcomponent
was a battery for an electric vehicle then the anticipated lifetime might be the warrantied lifetime of the battery rather than the anticipated lifetime of the vehicle.
The lifetime of the sub-component cannot be longer than the lifetime of the component or system in which it is installed.
Example 2:
A manufacturer of reciprocating engines is building a new factory to manufacture a new, high-efficiency engine for use in Combined Heat and Power (CHP)
systems. CHP applications are included in “fuel efficiency” for purpose of this notice because they consume energy in the production of electricity and thermal
energy.
9
The new factory will enable 1,000 high-efficiency engines to be manufactured annually. This number will be inputted as the first term “# Units per year.” For the
equations used above, the reciprocating engines could represent a sub-component of a CHP “component” (the complete collection of sub-components required to
enable the efficiency improvement —e.g., fuel handling, thermal recovery unit, integrated controls, etc.). The energy consuming “system” is the entire energy load
which is directly impacted by, and fully encompassing of the efficiency improvement. For CHP, the system may be an industrial building, hospital or other building.
The second term, “Fractional Component Contribution” is used to calculate the value fraction of an end of supply chain component that the manufactured
engine comprises. In this example thecompany purchases supplies (fuel pumps, tubing, etc.) and materials (engine blocks, wire, etc.) to assemble a completed
engine. The “Fractional Component Contribution” represents the added value that the manufacturing process adds to the final component price. If themarket
value of the supplies and materials is $40,000 per unit, the controller assembly is sold to downstream manufacturers for $100,000, and the total “factory gate” price
to an engineering firm of the complete CHP system $150,000, then the “Fractional Component Contribution” is (100,000–40,000)/150,000 = 40%. Note: iffor
example, 25% of the units manufactured were used ina different system where there was no efficiency improvement or the system does not qualify as SAEP,then
the “Percentage SAEP” term would be 75% and the “Fractional Component Contribution” would be further reduced accordingly.
The third term, “Annual Energy Savings per Unit” is used to calculate the annual energy savings which is enabled by incorporatingonlythe component into a
system and assuming typical climate and operation. In this example, the CHP system saves energy by displacing electricity from the grid and onsite thermal energy
generation that would be generated by a boiler or other device. The net annual energy savings is the energy that would be consumed by grid generated electricity
plus the energy that would be consumed by the onsite boiler minus the energy consumed by the CHP system. This net energy should be expressed in terms of gallons
of gasoline equivalent using the conversion factors provided in the Taxpayer Data Spreadsheet.
The fourth term, “Deployed Property Lifetime” is the anticipated years of operation of the manufactured property over its lifetime. In this example,the antici-
pated years of operation should equal the warranty on the entire CHP system. Note: if the sub-component lifetime is shorter than the expected lifetimeof the system,
then the sub-component lifetime should be used for the “Deployed Property Lifetime.” The lifetime of the sub-component cannot be longer than the lifetime of the
component or system in which it is installed.
9
Although the energy source for a CHP system may be renewable (e.g., landfill gas), the CHP system displaces thermal energy production (e.g., a boiler) that would typically use fossil fuel.
Because fossil energy consumption is displaced by the CHP system, the “fuel efficiency” analysis is used.
2013–10 I.R.B.567March 4, 2013

GHG Emission Reduction: For SAEP with the primary purpose of reducing emissions or sequestering GHG, the following
formulas shall be used to estimate the annual emission reduction in CO
2
equivalent gases. Specifically, the AAMC is the Mtons of
avoided CO
2
equivalent gas emission which can be attributed to one year’s worth of production from the proposed project.
Where:
And:
Example:
A chemical supplier is building a factory for the manufacture of physical solvents for CO
2
capture. The factory will produce 100,000 gallons of solvent.
This volume will be inputted as the first term “# Units per year.” For the equations used above, the physical solvent would represent a sub-component ofaCCS
“component” (the collection of sub-components required for the full CarbonCapture and Sequestration (CCS) process). The “system” is the entire carbon emitting
facility which is directly impacted by, and fully encompassing of, the CCS process.
The second term, “Fractional Component Contribution” is used to calculate the value fraction of an end of supply chain component that the manufactured solvent
comprises. In this example the company purchases feedstock materials to process the solvent. The “Fractional Component Contribution” represents the added value
that the manufacturing processadds to the final component price. If the feedstock costs $50 per unit volume, this volume is sold to downstream manufacturers for
$500, and the total “factory gate” price of a functional CCS apparatus is $5,000 (per unit volume), then the “Fractional Component Contribution” is (500–50)/5000
= 9%. Note: if, for example, 30% of the annual manufactured volume was soldfor non-CCS applications then the “Percentage SAEP” term would be 70% and the
“Fractional Component Contribution” would be further reduced accordingly.
The third term, “CO
2eq
Reduction per Unit” is used to calculate the annual CO
2eq
reduction which is enabled from incorporatingonlythe full CCS component
into a system under typical use patterns. In this example, the system emissions will be reduced by 1000 Mtons per year per unit.
The fourth term, “Deployed Property Lifetime,” is the anticipated years of operation of the manufactured property over its lifetime. In this example, the antici-
pated years of operation should be substantiated by providing information on likely solvent replacement schedules. Note: if the sub-component lifetime is shorter
than the expected lifetime of the component, then the sub-component lifetime should be used for the “Deployed Property Lifetime.” The lifetime of thesub-com-
ponent cannot be longer than the lifetime of the component or system in which it is installed.
Renewable Fuel Refining or Blending: For SAEP to be used exclusively in the refining or blending of renewable fuels, the
following formulas shall be used to estimate the production of renewable fuel which is directly attributable to the annually
manufactured property. Specifically, the AAMC is the renewable fuel generation which can be attributed to one year’s worth of
production from the proposed project:
March 4, 20135682013–10 I.R.B.

Where:
Example:
A pump manufacturer is building a factory for the manufacture of pumps specifically designed for renewable fuel refining or blending. The factory will produce
10,000 pumps per year. This volume will be inputted as the first term “# Units per year.”
The second term, “Capacity per Unit” is the estimated annual volume of fuel refined or blended annually, which is enabled by the pump under typical plant
operations. For example, if a single pump is installed per biofuel refinery, the enabled capacity is the annual refined or blended product from the biofuel refinery.
The third term, “Fractional System Contribution” is used to calculate the value fraction of an end of supply chain system that the manufactured pump comprises.
In this example the company purchases sub-components and materials to manufacture each pump. The “Fractional System Contribution” represents the added value
that the manufacturing process adds to the final component price. If the sub-component and materials cost $5000 per pump, this pump is sold to a construction com-
pany for $10,000, and the total price of the constructed refinery, the “system,” is $1M, then the “Fractional Component Contribution” is (10,000–5000)/1,000,000
= 0.5%. Note: as per the requirement that no portion of such a project be used for the refining or blending of non-renewable fuels, the “Percentage SAEP”term
must be equal to 100% for such SAEP.
The fourth term, “Deployed Property Lifetime,” is the anticipated years of operation of the manufactured property over its lifetime. In this example, the antic-
ipated years of operation should equal the anticipated lifetime based on the planned service schedule or warranty. The lifetime of the component cannot be longer
than the lifetime of the system in which it is installed.
Other Advanced Energy Technologies: For other technologies with the primary benefit of storing or transmitting renewable
energy, taxpayers should quantify the annual renewable energygenerated and/or saved which is directly attributable to the
manufacture of their technology discountedby the likely fraction of their annual production which will be used for this purpose.
Although no generic equations are provided for this technology area, taxpayers should review the equations and methodology
above and transparently employ analogous calculations where possible and appropriate.
Impact on Air Pollution and Anthropogenic Emissions of Greenhouse Gases:
DOE anticipates a wide variety of manufacturing proposals and thus no standard, all-encompassing approach will be used to
calculate pollutants and GHG emissions. Instead, the taxpayer is expected to quantify or discuss the pollutant and/or GHG
emissions associated with the operation of the SAEP.
To quantify the primary effects on CO
2
emissions (“AAMC CO
2
Reduction” as listed in the Taxpayer Data Spreadsheet), the
following four technology-specific approaches are used.
For Electricity Generationand Energy Conservation SAEP, the following equation is used to calculate the reduction in emissions
of CO
2
from the AAMC:
This calculation ignores CO
2
emissions associated with the manufacture, installation, and end-of-life processes and assumes that
the dominant impact with respect to CO
2
emissions is the offset consumption of average U.S. grid electricity reduction.
For most Fuel Efficiency SAEP, a similar equation is used:
2013–10 I.R.B.569March 4, 2013

For Fuel Efficiency SAEP, such as EVs and PHEVs,which require the consumption of electricity to enable the full fuel efficiency,
the following equation is used:
The “MWh/GGE” term is calculated by the taxpayer.
For Renewable Fuel Refining or Blending SAEP, the calculation is modified to account for CO
2
emissions associated with
the manufacture of renewable fuel:
The life cycle analysis (LCA) is determined by the taxpayer by selecting the most relevant fuel and corresponding process from
the “LCA Fuel CO
2
Assumptions” tab. Taxpayers must select the LCA number which most closely corresponds to their SAEP. If
the taxpayer believes that the actual LCA emissions associatedwith the operation of the SAEP differs significantly from data
provided, then the taxpayer may substantiate an alternative LCA number in their narrative.
For GHG Emission Reduction SAEP, the AAMC is equivalent to the CO
2
emission reduction and thusno additional calculations
are necessary.
The AAMC CO
2
Reduction represents the total CO
2
impact over the lifetime of deployedproperty which is attributable to
one year of manufacturing. This number is further adjusted in three ways to assess the magnitude of the CO
2
reduction of a
given project. First, the normalized value of this reduction is assessed by dividing by the requested tax credit. Second, the
normalized AAMC CO
2
Reduction is then divided by the deployed property lifetime to capture the CO
2
impact after the first
year of SAEP deployment. Third, the normalized AAMC CO
2
Reduction is multiplied by the projected factory lifetime. This
number calculates the total carbon impact over the lifetime of all deployed property over the lifetime of the factory. Because
this number will scale with the factory lifetime, the taxpayer should justify the claimed operational period of the factory in the
project narrative. All of these three AAMC CO
2
Reduction figures will be used in the scoring of Evaluation Criteria 2 as shown
in the Taxpayer Data Spreadsheet workbook.
Technological Innovation and Cost Reduction:
Taxpayers must provide quantitative information regarding their project’s innovation and value. This information is captured
with the related metrics of technological or cost advantage over competitors, levelized cost, and the cost of CO
2
abatement. The
preferred approach is for the taxpayer to discuss and quantify each of these three metrics. However, DOE recognizes the
difficulty associated with calculating levelized costs (and thus $/CO
2
) for many types of eligible property. If the taxpayer is
unable to perform a levelized cost or CO
2
abatement cost calculation for the SAEP then the taxpayer should provide a quantitative
or qualitative assessment of how their technological or cost advantage over competitors translates into system price savings,
improved performance, orimproved system life.
Technological or Cost Advantage over Competitors: The Taxpayer Data Spreadsheet requires taxpayers to identify their
“Technological or Cost Advantage over Competitors” with respect to the most relevant figure of merit. Ideally this is an
apples-to-apples comparison between similar property of similar function. For example, a wind blade manufacturer might
compare the performance and cost of the proposed blade manufacturing to current commerciallymanufactured blades. Although
high level metrics such as levelized costs can capture this cost advantage, taxpayers are encouraged to select a lower level metric
(i.e.$/W, $/Unit, efficiency, etc.) and later discuss the impactthis granular cost advantage has upon the levelized cost. If
the taxpayer’s manufactured property has multiple advantagesover currently manufactured property, the taxpayer should
select and quantify the most significant advantage in the Taxpayer Data Spreadsheet while discussing all technological and
cost advantages in their narrative.
Levelized Cost:The levelized cost of energy (LCOE) calculation shouldassume that the manufactured property is part of the
SAEP and where appropriate, be based on the financial and resource assumptions provided in Section VII. This “improved”
LCOE value should be expressed in nominal terms and should not include any federal, state or other financial incentives. Further,
plant and related cost values and prices of commodity fuels or feedstocks used in the calculation should reflect current national
wholesale averages where possible. The following information should be provided as documentation:
March 4, 20135702013–10 I.R.B.

•Brief descripti
on of the methodology used as the basis for the calculation. This methodology should be a commonly accepted
industry standa
rd.
•Identification
and brief rationale for the source of key values used in thecalculation, including capital or first costs, operating
and maintenanc
e costs, and prices of commodity fuels or feedstocks.
•Justification f
or any use of a resource-related parameter (e.g., capacity factor) different than the national averages provided.
•Explanation of a
ny factors impacting the levelized cost that could not bequantified and included in the calculation, and their
potential direc
tional effect on the resulting cost (i.e., increase or decrease).
•Explanation of a
ny relationship between the cost of the manufacturedproperty and the performance of the end use energy
product.
•If possible, an
“unimproved” levelized cost calculation that does not reflect the input of the manufactured property (e.g.,relies on
the competitiv
e standard of the day), based on the same financial and resource assumptions used in the “improved” calculation.
Cost of Abatemen
t:The form and units of the levelized cost vary across eachenergy type in the Taxpayer Data Spreadsheet. Thus,
the cost of abat
ement equations are specific to each energy type to ensure consistent, accurate and comparable abatement costs
are produced by
the Taxpayer Data Spreadsheet. For all energy types the cost of abatement reflects the incremental cost and
associated inc
remental reduction in carbon emissions from a baseline.
For Electricit
y Generation and Efficiency technologies the cost of abatement is calculated with the following equation:
Thebaseline¢/kWh is defined by the retail electric rate of the electricity being generated or saved (i.e.residential, commercial,
or utility). The factor of 10 in the numerator provides dimensional consistency. For simplicity, all improved technologies are
assumed to be non-carbon emitting.
For Fuel Efficiency technologies the cost of abatement is calculated with the following equation:
Incremental levelized cost / incremental emissions reduction:
In this calculation, anincrementalLCOE term is used to simplify the taxpayer’s data entry into the Taxpayer Data Spreadsheet.
This term represents the difference in LCOE ($/GGE) costs between the baseline system and the improved system. The
specific calculation of this difference orincrement will vary depending upon the fuelefficiency technology being considered.
The denominator represents the emissionsreduction associated putting the improved system in place, principally in terms
of its displacement of the baseline technology.
For example, for a vehicle fuel efficiency technology, the incremental LCOE ($/GGE) may be calculated as:
In this case the $/Mile term represents the fully-burdened cost associated with eachmile driven and includes factors such as
depreciation. To calculate the incremental $/GGE, the taxpayercalculates the difference between baseline and improved $/GGE.
The denominator of the cost of abatement term is based on the “well to wheels” emissions associated with burning a GGE of the
consumed fuel. Taxpayers should show their work andreference Section VII when calculating these values.
For other fuel efficiency technologies, such as a CHP application, the incremental LCOE ($/GGE) may be calculated as:
2013–10 I.R.B.571March 4, 2013

In this case, the $/BTU term represents the fully-burdened cost associated with each BTU of heat that the CHP system generates
as a by-product of the power generation. The cost of abatement denominator reflects the emissions avoided as a result of the
reduced consumption of the fuel that would have to be burned to generate the heat now supplied by the CHP system.
For GHG Reduction technologies the cost of abatement is equivalent to the levelized cost (i.e., for these technologies, the
levelized cost is already expressed as the cost abatement) and thus no additional calculations are necessary.
For Renewable Fuel Refining or Blending technologies the cost of abatement calculation is analogous to the Electricity
equations provided above:
In this case the traditional fuel is the fossil fuel not consumed. The term “Mtons/GGE
traditional
” in the denominator is similar to the
denominator term in the fuel efficiencyexample provided previously. The second term in the denominator “Mtons/GGE
refined
”
accounts for the life-cycle (“seed to wheels”) carbon emissions associated with consumption of the renewable fuel. This value is
referenced from the “LCA Fuel CO
2
Assumptions” tab based upon the taxpayer’s renewable fuel type selection.
If a taxpayer cannot reasonably calculate a LCOE for the SAEP associated with the proposed manufactured property, the taxpayer
can instead provide an estimated cost of GHG emissions abatement. The taxpayer should provide and justify the use of a cost
value from a published study for a comparable energy system.
If the taxpayer chooses to calculate a cost of abatement without a corresponding LCOE value for the SAEP, the basis of the
calculation is similar to that required in the LCOE calculation. For example, a taxpayer could calculate an incremental LCOE
by calculating the net present value of the incremental cost to the baseline system and dividing by the net present value of the
incremental performance improvement. This calculation should also be based on the financial and resource assumptions provided
and should be expressed in nominal terms and should not include federal, state or other financial incentives. Further, plant and
related cost values and prices of commodity fuels or feedstocks used in the calculation should reflect current national wholesale
averages where possible. The following information should be provided as documentation:
•Explanation of why an LCOE value either could notbe calculated or was not appropriate to calculate
for the end use energy product.
•Brief description of the methodology used as the basis for the calculation. This methodology should
be a commonly accepted industry standard.
•Identification and brief rationale for the source ofkey values used in the calculation, including capital
or first costs, operating and maintenance costs,prices of commodity fuels or feedstocks, and carbon
emissions associated with the operation of the end use energy product.
•Identification and brief rationale for the key values associated with the baseline energy mix, including
the cost of generation and carbon emissions.
•Explanation of any factors impacting the cost of abatement that could not be quantified and included
in the calculation, and their potential directional effect on the resulting cost (i.e., increase or decrease).
•Explanation of any relationship between the cost of the manufactured property and the performance
of the end use energy product.
•If possible, an “unimproved” cost of abatement calculation that does not reflect the input of the man-
ufactured property (e.g., relies on the competitive standard of the day), based on the same financial
and resource assumptions used in the “improved” calculation.
Finally, if the taxpayer chooses to provide a cost of abatement value for the closest comparable end use energy product from a
published study, the following information should be provided as documentation:
March 4, 20135722013–10 I.R.B.

•Explanation of w
hy an LCOE value either could not be calculated or was not appropriate to calculate
for the end use en
ergy product.
•Brief descripti
on of the methodology used in the cited study.
•Identification
of key assumptions used in the study, including the year basis for which the cost is
reported (if the
cost is reported in real terms;e.g., $2011), the year of costs and prices of fuel com-
modities, the y
ear to which the end cost value is referenced (e.g.,couldbeafutureyear),theextent
of technology i
mprovement assumed for the comparable end use energy product, the regional extent
of the baseline
assumed (e.g.,global,U.S.,regionofU.S.),the carbon emissions associated with
the baseline e
nergy mix and the end use energy product, the key financial assumptions (e.g., interest
rates, taxes,
incentives included), and the resource-related parameters (e.g., capacity factors).
•Explanation o
f how the above assumptions differ from those provided above for guiding the calcu-
lation of the c
ost of abatement, and the potential directional effect of these differences on the study’s
cost value (i.
e., if the aforementioned assumptions required for cost of abatement calculation had
been used, wou
ld the study’s cost value likely have increased or decreased).
VI. SUPPORTING DOCUMENTS
The taxpayer should include such appendicesas are applicable to the project. In addition to items specifically requested in Table 2
of IV (D) above, examples of appropriate appendices include:
•Copy of internal or external engineering reports.
•Copy of site plan, together with evidence that taxpayer owns or controls a site. Examples of evidence
would include a deed, or an executed contract to purchase or lease the site.
•Lists of all federal, state, and local permits, including environmental authorizations or reviews, nec-
essary to commence construction.
•Information supporting taxpayer’s conclusion that the site is fully acceptable as the project site for a
manufacturing facility and for its intended use.
•Taxpayer expressions of interest or commitment letters from equity and debt financing sources.
•Expressions of interest or commitment letters from potential customers.
•Off-take agreements.
VII. TECHNICAL REFERENCES FOR ADVANCED ENERGY TECHNOLOGIES SUPPLIED
FIGURES
This section assists the taxpayer in calculating the quantitative factors required in the project proposal. Wherever appropriate, the
taxpayer should use this information for baseline assumptions for estimating factors such as the annual performance of the SAEP,
expected lifetime of the deployed property and LCOE property. Additionally, in the eventthat the taxpayer is unable to calculate
the levelized cost or the cost of abatement, this informationmaybe used as inputs to the Taxpayer Data Spreadsheet.
2013–10 I.R.B.573March 4, 2013

Table 1: Financial Assumptions for Levelized Cost of Energy Analysis
Common Financial Inputs for LCOE Analysis by Market Sector
Market
Buildings (grid-tied)Central Generation
ResidentialCommercialUtility
Financials
Residential MortgageCommercial LoanIPP and Utility
General
Analysis Period
202020
Inflation Rate2.5%2.5%2.5%
Real Discount
Rate
5.5%5.5%7.5%
Taxes & Insurance
Federal Tax29%
35%35%
State Tax
7%7%8%
Property Tax000
Sales Tax
000
Insurance000
Depreciation
FederalN/AMACRS-Mid-QMACRS-Mid-Q
State
N/AMACRS-Mid-QMACRS-Mid-Q
Loan
Loan (Debt)
Percent
100%
50%50%
Loan Term30
15
20
Loan Rate6%6%6%
Constraining Assumptions
PPA Escalation
Rate
N/AN/A0
Target Internal
Rate of Return
N/AN/A
15%
Target
Minimum
Debt Service
Coverage Ratio
N/AN/A1.4
Positive Cash
Flow
N/AN/ANo
Incentives
Federal, State,
or Local
Subsidies
Do not includeDo not includeDo not include
March 4, 20135742013–10 I.R.B.

Suggested LCOE Tools:
All Electricity Generating Technologies (general tool):
RET Finance:http://analysis.nrel.gov/retfinance/
The NREL Strategic EnergyAnalysis Center launchedRET FinanceinOctober 2001.It is an Internet-based cost of electricity
model that simulates a 30-year nominal dollar cash flow for a variety of renewable energy power projects. As an online
application, RET Finance is accessible from anywhere using an Internet connection and a browser. RET Finance calculates project
earnings, detailed cash flows, and debt payments and also computes a project’s levelized cost-of-electricity, after-tax internal
rate of return, and debt service coverage ratio.
Solar Technologies
SAM 2012.5.11:https://sam.nrel.gov
The National Renewable Energy Laboratory (NREL), in conjunction with Sandia National Laboratory and in partnership
with DOE’sSolar Programdeveloped the Solar Advisor Model (SAM). The Solar Advisor Model evaluates several types of
financing (from residential to utility-scale) and a variety of technology-specific cost models for several (and eventually all) SETP
technologies. The SETP technologies currently represented in SAM include concentrating solar power (CSP) parabolic trough
and dish-stirling systems and photovoltaic (PV) flat plate and concentrating technologies. Othertechnologies will be added in
future versions, including CSP central receivers and residential solar water heating.
Geothermal Technologies
Geothermal Electricity Technology Evaluation Model (GETEM):
http://www1.eere.energy.gov/geothermal/getem.html.
The Geothermal Electricity TechnologyEvaluation Model (GETEM) was developed to aid the Geothermal Technologies Program
(GTP) in understanding the performance and the cost of the technologies it is seeking to improve. It is a detailed model of the
estimated performance and costs of currently available U.S. geothermal power systems. GETEM can be used to analyze and
evaluate currently available technologies and it can also be used to estimate what certain technologies might cost five to twenty
years in the future, given the direction of potential Research, Development and Demonstration (RD&D) projects. The model
is intended to help GTP determine which proposed RD&D programs and projects might offer the most improvements for
the taxpayer dollar.
Small Wind Technologies
www.nrel.gov/wind/docs/spread_sheet_Final.xls
Table 2: Vehicle Assumptions
Metric
Value
Units
Annual Miles Traveled12,000Miles
Vehicle Lifetime Miles160,000Miles
2008 Average US Gasoline Price
$3.26$
Baseline Vehicle Fuel Economy23.4mpg
Vehicle Cost
$23,337$
2013–10 I.R.B.575March 4, 2013

Table 3: Common Service Life Years
Technology
ServiceLifeYears
Solar Photovoltaics30
Fuel Cell20
Heat Pumps7to20
Electric Water Heaters20
Natural Gas Engine20
Oil-Fired Engine20
Natural Gas Turbine20
NG Micro Turbine20
Wind30
Electric Rooftop Heat Pump
15
Ground-Source Heat Pump20
Suggested for non-distributed technologies20
Assumption Tables to the EIA AEO, August 2012 and DOE Solar Energy Technology Program.
http://www.eia.gov/forecasts/aeo/assumptions/index.cfm
Table 4: Other Common Technical Assumptions andBaseline for Levelized Cost of Energy Analysis
Electricity Generation and Storage
End Use Energy Product (Technology)Resource CharacteristicsCapacity
Factor
1
Biomass (general)N/A
2
68%
Geothermal200 deg C; 3000m depth84%
Landfill gas utilization (general)N/A
85%
Wind
Class 5
39%
Wind — Offshore
Class 5
42%
Solar Thermal — CSPPhoenix AZ32%
Solar Photovoltaic (general)Phoenix AZ20%
Storage — CAESN/A
25%
Storage — Pumped HydroN/A
25%
Storage — Adv. BatteriesN/A
25%
Storage — FlywheelN/A
25%
1 Generation — NREL Analysis estimates based on averages from multiple published sources; Storage — Input costs from
EPRI 2009 Overview of Electric Energy Storage Options for the Electric Enterprise
2
A constant nominal price of $2.02/million Btu should be assumedtodeterminethefuelprice contribution to the LCOE.
N/A — not applicable
If a natural gas price is needed to compute the LCOE of a technology, a constant nominal price of $4.66/ thousand cubic
feet should be used (based on EIA AEO 2009).
March 4, 20135762013–10 I.R.B.

VIII.SAMPLETAXPAYER DATA SPREADSHEET
This section provides taxpayers a depiction of the Taxpayer Data Spreadsheet, captured in theimages on the following pages.
2013–10 I.R.B.577March 4, 2013

Has the shortest project time from certification to completion
Milestone
Date
mm/dd/yyyy
Days to
complete
milestone
Application Due Date
Complete permitting0
Begin Construction0
Begin Production0
IX. QUESTIONS/ AGENCY CONTACTS
All questions and answers related to this notice will be posted on EERE eXCHANGE at:https://eere-eXCHANGE.energy.gov/.
Please note that you must first select 48C from the list of options in order to view the questions and answers specific to this
Notice. Service/DOE will attempt to respond to a question within 3 business days, unless a similar question and answer has
already been posted on the website.
Please send questions in writing via fax to the Service point of contact Marc Bernabo at (713) 209–3964. He may also be
reached by telephone at (713) 209–3669.
Questions related to the registration process and use of the EERE eXCHANGE website should be submitted to:
eere-exchangesupport@hq.doe.gov
March 4, 20135782013–10 I.R.B.

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking
Designation o
f Payor as Agent
to Perform Act
sRequiredof
an Employer
REG–102966–
10
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Noti
ce of proposed rulemaking.
SUMMARY: Thi
s document contains pro-
posed regul
ations under section 3504 of
the Interna
l Revenue Code (Code) provid-
ing circums
tances under which a person
(payor) is d
esignated as an agent to per-
form the act
s required of an employer and
is liable f
or employment taxes with re-
spect to wa
ges or compensation paid by
the payor t
o individuals performing ser-
vices for t
he payor’s client pursuant to a
service a
greement between the payor and
the clien
t.
DATES: Wr
itten or electronic comments
must be re
ceived by April 29, 2013.
ADDRESSE
S: Send submissions to:
CC:PA:LP
D:PR (REG–102966–10), room
5203, Int
ernal Revenue Service, POB
7604, Be
n Franklin Station, Washington
DC, 2004
4. Submissions may be hand
deliver
ed Monday through Friday, be-
tween th
e hours of 8 a.m. and 4 p.m.
to CC:PA
:LPD:PR (REG–102966–10),
Courie
r’s Desk, Internal Revenue Ser-
vice, 1
111 Constitution Avenue, NW,
Washin
gton, DC. Additionally, taxpay-
ers may
submit commentselectronically
via the
Federal eRulemaking Portal at
www.r
egulations.gov.(Indicate IRS and
REG–1
02966–10.)
FOR FU
RTHER INFORMATION
CONTA
CT: Concerning the proposed reg-
ulati
ons, contact Jeanne Royal Singley at
(202)
622–0047; concerning the submis-
sion o
f comments or requests for a hearing,
cont
act Oluwafunmilayo (Fumni) Taylor
at (2
02) 622–7180 (not toll-free numbers).
SUPPLEMENTAR
Y INFORMATION:
Background
Employment Ta
xes in General
Employers gene
rally are required to
deduct and wit
hhold federal income tax
and Federal In
surance Contributions Act
(FICA) taxes f
rom wages paid to their
employees un
der sections 3402(a) and
3102(a), and
are separately liable for the
employer’s s
hare of FICA taxes under
section 3111
and Federal Unemployment
Tax Act (FUT
A) taxes under section 3301.
Instead of F
ICA taxes, railroad employers
are require
d to deduct and withhold Rail-
road Retire
ment Tax Act (RRTA) taxes
from their e
mployees’ compensation un-
der sectio
n 3202, and are separately liable
for the emp
loyer’s share of RRTA tax
under sect
ion 3221. These taxes are col-
lectively
referred to for purposes of these
proposed r
egulations asemployment taxes.
Sections
31.3102–1(d), 31.3202–1(e) and
31.3403–
1 establish that the employer is
the perso
n liable for the withholding and
payment o
f employment taxes, whether or
not amou
nts are actually withheld.
When an in
dividual performs services
for anot
her person, an employer-employee
relatio
nship may exist. Generally, the
Code det
ermines the existence of an em-
ployer-
employee relationship by applying
the comm
on law test to the particular facts
and cir
cumstances of each case. See sec-
tion 31
21(d)(2). The Code, however, also
provid
es for other categories of employ-
ees, su
ch as corporate officers in section
3121(d
)(1).
Under t
he common law test, an employ-
ment re
lationship exists when the person
for wh
om the services are performed has
the ri
ght to control and direct the individ-
ual wh
o performs the services, not only
as to t
he result to be accomplished by the
work b
ut also as to the details and means
by wh
ich that result is accomplished. An
empl
oyment relationship exists if an em-
ploy
ee is subject to the will and control
of th
e employer not only as to what shall
be do
ne but how it shall be done. In this
conn
ection, it is not necessary that the
emp
loyer actually direct or control the
man
ner in which the services are per-
for
med; it is sufficient if the employer has
the right to do
so. See §§31.3121(d)–1(c),
31.3231(b)–1
(a)(2), 31.3306(i)–1(b), and
31.3401(c)–1
(b). This test is also applica-
ble in determi
ning which of two parties in
a three-party
arrangement is the employer.
Seefor examp
le,Professional and Exec-
utive Leasin
g, Inc. v. Commissioner,89
T.C. 225 (198
7),aff’d, 862 F.2d 751 (9th
Cir. 1988).
While other f
actors are helpful in an-
alyzing the c
ommon law test, the critical
factor in de
termining whether a person is
the common l
aw employer of an individ-
ual who perf
orms services is whether the
individual
is subject to the will and control
of the pers
on receiving the services both
as to the wo
rk to be done and how it is to
be done. Th
us, the person’s control of the
individua
l’s actual job performance, rather
than merel
y control of certain administra-
tive func
tions related to the individual per-
forming s
ervices at the worksite, is para-
mount und
er the common law analysis. In
unique ci
rcumstances, an individual may
be an emp
loyee of more than one employer
(concur
rent employment) with regard to
the same
services. See Rev. Rul. 66–162,
1966–1 C
.B. 234 (citing Rest. 2d Agency,
§226). H
owever, in order for an individual
to be co
ncurrently employed by two enti-
ties, e
ach entity must separately satisfy the
common
law control test.
An empl
oyer must file an employment
tax ret
urn reporting employment taxes for
each em
ployment tax return period. Gen-
erally
, an employer files Form 941,Em-
ploye
r’s QUARTERLY Federal Tax Return
to rep
ort wages the employer paid — dur-
ing a q
uarter of a calendar year — that are
subje
ct to federal income tax withholding
and FI
CA taxes. Wages an employer pays
that
are subject to FUTAtax are reported
annu
ally on Form 940,Employer’s Annual
Fede
ral Unemployment Tax (FUTA) Re-
turn
.Employers that pay compensation
subj
ect to the RRTA file Form CT–1,Em-
plo
yer’s Annual Railroad Retirement Tax
Ret
urn, as well as Form 941 to report fed-
era
l income tax withholding. All employ-
ers
that pay wages or compensation subject
to f
ederal income tax withholding, FICA
tax
, or RRTA tax must file Forms W–2,
Wa
ge and Tax Statement, and a Form W–3,
Tr
ansmittal of Wage and Tax Statements,
wi
th the Social Security Administration
2013–10 I.R.B.579March 4, 2013

(SSA) and furnish a Form W–2 to each
employee. The employer must obtain an
employer identification number (EIN) us-
ing Form SS–4,Application for Employer
Identification Number, for use in filing the
forms. An EIN is a nine-digit number used
by the Internal Revenue Service (IRS) to
identify an employer’s tax account. See
section 6109.
For various reasons, an employer may
choose to enter into an agreement with
a third party (such as a payroll service
provider or a professional employer organ-
ization (PEO)), sometimes referred to as a
third-party payor. Under the agreement the
third-party payor remits the wages to em-
ployees and takes steps to ensure the em-
ployer’s employment tax withholding, re-
porting, and payment obligations are sat-
isfied. However, employment tax liability
cannot be altered by private agreement be-
tween an employer and a third-party payor.
SeeIn re Professional Security Services,
Inc., 162 B.R. 901 (Bankr. M.D. Fla.
1993). Rather the liability of the employer
and/or the third-party payor for employ-
ment taxes is determined under the Code
and depends on all of the facts and cir-
cumstances, including the terms and sub-
stance of the arrangement between the em-
ployer and the third-party payor. There are
limited circumstances in a three-party ar-
rangement when the third-party payor may
be considered the person responsible for
the withholding and payment of employ-
ment taxes in addition to, or in lieu of,
the common law employer. A descrip-
tion of some common three-party arrange-
ments follows.
Section 3401(d)(1) Employers
Section 3401(d)(1) provides that for
purposes of federal income tax withhold-
ing, the termemployermeans the person
for whom an individual performs or per-
formed any service, of whatever nature, as
an employee of such person, except that,
if the person for whom the individual per-
forms or performed the services does not
have control of the payment of wages for
such services, the termemployermeans
the person having control of the payment
of such wages. For purposes of section
3401(d)(1), the termcontrolmeans legal
control. See §31.3401(d)–1(f). Thus,
when one person is the common law em-
ployer of an individual because it controls
the day-to-day performance of services
by the individual, another person may be
the employer liable to collect, report, and
pay employment taxes because it is the
entity solely in control of the payment of
wages to the individual. SeeWinstead
v. United States, 109 F.3d 989 (4th Cir.
1997). Whether an entity is in control of
the payment of wages is determined by
considering the facts and circumstances
related to each payment of wages. Thus,
an entity can be in control of the payment
of wages for one employment tax return
period, but not in control of the payment
of wages for a prior or subsequent em-
ployment tax return period.
The legislative history to sec-
tion 3401(d)(1) specifies that section
3401(d)(1) was intended solely to meet
unusual situations and was not intended
as a departure from the basic structure
of centralizing employment tax obliga-
tions with the common law employer. See
S. Rep. No. 221, 78th Cong. 1st Sess.,
May 10, 1943. Accordingly, an entity is
not in control of the payment of wages if
the payment of wages is contingent upon,
or proximately relatedto, the entity having
first received funds from its clients.
The FICA, FUTA, and RRTA do not
contain a definition of the termemployer
similar to the definition contained in sec-
tion 3401(d)(1); however, courts have
applied the section 3401(d)(1) defini-
tion to determine liability for the pay-
ment of FICA tax under sections 3102
and 3111 and FUTA tax under section
3301. SeeOtte v. United States,419
U.S. 43, 95 S. Ct. 247, 42 L. Ed. 2d
212 (1974);In re Armadillo Corp.,410
F. Supp. 407 (D. Colo. 1976),aff’d,
561 F. 2d 1382 (10th Cir. 1977). Due to
the similarity between the purpose and
scope of the RRTA and the purpose and
scope of the FICA, the same definition
also applies to the RRTA. Accordingly,
section 3401(d)(1) shifts the liability for
all the employment taxes due on wages
or compensation from the common law
employer to the third-party payor with
control of the payment of those wages or
compensation.
Section 3504 Agents
Under section 3504, if a payor pays
wages or compensation to employees who
are employed by one or more employers,
the Secretary is authorized, in accordance
with regulations prescribed by the Secre-
tary, to designate such payor to perform
acts required of employers under the Code.
Section 3504 further provides that, except
as otherwise prescribed by the Secretary,
all provisions of law (including penalties)
applicable with respect to an employer are
applicable to the person so designated, but
the employer for whom the person acts re-
mains subject to the provisions of law (in-
cluding penalties) applicable with respect
to employers. Accordingly, both an em-
ployer and the payor designated in accor-
dance with regulations under section 3504
are liable for the employment taxes on
wages or compensation paid by the payor.
Current regulations issued under sec-
tion 3504 permit district directors and
service centers in the IRS to authorize
a payor to perform acts required of em-
ployers with respect to chapters 21 (FICA
tax), 22 (RRTA tax), and 24 (federal in-
come tax withholding) of the Code if the
payor applies for such authorization. See
Treas. Reg. §31.3504–1(a). The Treasury
Department and the IRS have separately
proposed updating these regulations to
remove the referencesto the district direc-
tor and service center and to provide that
the application by the payor (referred to
therein as an “agent”) must be signed by
both the payor and employer and made on
theformprescribedbytheIRSandaccord-
ing to the instructions provided by the IRS.
See Proposed Regulations §31.3504–1(a),
published in the Federal Register on Jan-
uary 13, 2010, (75 FR 1735–01).
Pursuant to section 3504 and the regula-
tions, the IRS has established administra-
tive procedures under which a payor may
request authorization to file employment
tax returns and perform other acts for the
employer. Specifically, Revenue Proce-
dure 70–6, 1970–1 C.B. 420, provides the
general procedures for a payor to request
authorization to act as an agent under sec-
tion 3504 for FICA, income tax withhold-
ing, and RRTA purposes, and describes the
agent’s resulting reporting and filing re-
quirements. Each employer for whom the
agent is to act provides the payor with a
signed IRS Form 2678,Employer/Payer
Appointment of Agent. A payor seeking
to act as an agent under section 3504 sub-
mits these Forms 2678 to the IRS. The IRS
sends a letter to the agent once it has ap-
proved the application, and the appoint-
March 4, 20135802013–10 I.R.B.

ment remains in effect until terminated by
one of the parties. An agent with an ap-
proved Form 2678 files an aggregate Form
941 reporting FICA tax and income tax
withholding for each tax return period us-
ing the agent’s own EIN (regardless of the
number of employers for whom the agent
acts). Effective for periods on or after Jan-
uary 1, 2010, an agent with an approved
Form 2678 must also complete and attach
to the aggregate Form 941 a Schedule R
(Form 941),Allocation Schedule for Ag-
gregate Form 941 Filers. The agent uses
Schedule R (Form 941) to allocate the ag-
gregate information reported on Form 941
to each employer. Schedule R (Form 941)
is attached to the Form 941 in every quar-
ter for which the agent files an aggregate
Form 941. See §601.601(d)(2)(ii)(b). If
an agent with an approved Form 2678 is
acting for employers under the RRTA, the
agent must report for each employer the
taxable compensation as determined under
RRTA with respect to each employer on an
aggregate Form CT–1.
Consistent with the limitations in the
current regulations, an agent with an ap-
proved Form 2678 is generally not autho-
rized to perform the employment tax obli-
gations of an employer with respect to the
FUTA tax. Thus, an employer generally
must continue to satisfy its FUTA tax obli-
gations by filing a Form 940 using its own
EIN. Proposed Regulation §31.3504–1(b),
however, provides a limited exception to
the general rule regarding FUTA, which
employers may rely on for periods begin-
ning on or after January 1, 2010. The pro-
posed regulation allows agents acting on
behalf of employers receiving home care
services to perform the acts of an employer
required under Chapter 23 (FUTA tax). An
agent that files an aggregate Form 940 un-
der the limited exception must complete
and attach to the Form 940 a Schedule R
(Form 940),Allocation Schedule for Ag-
gregate Form 940 Filers.
Generally, Forms W–2 filed with the
SSA and furnished to employees must re-
flect the name and EIN of the agent with
an approved Form 2678; however, special
rules may apply if the agent is acting as an
agent for two or more employers.
Payroll Service Providers (PSPs) and
Reporting Agents
An employer may enter into an agree-
ment with a payroll service provider (PSP)
to prepare employment tax returns (includ-
ing Forms 940 and 941) using the EIN of
the employer for the signature of the em-
ployer. A PSP may also process the with-
holding, deposit, and payment of the asso-
ciated employment taxes for the employer.
A PSP is not liable under subtitle C of the
Code as the employer, or as an agent of the
employer, for the employer’s employment
taxes. An employer’s use of a PSP does not
relieve the employer of its employment tax
obligations or liability for the taxes.
Generally, a reporting agent is a PSP
that is authorized to sign and file certain
employment tax returns on behalf of the
employer using the employer’s EIN, in-
cluding Forms 940 and 941. A report-
ing agent may also process the withhold-
ing, deposit, and payment of the associated
employment taxes for the employer. The
IRS has prescribed Form 8655,Reporting
Agent Authorization, as the appropriate au-
thorization form for an employer to use to
designate a PSP as a reporting agent. Ad-
ditional information concerning reporting
agent authorizations may be found in Rev.
Proc. 2012–32, 2012–34 I.R.B. 267. A
reporting agent is not liable under subtitle
C of the Code as the employer, or as an
agent of the employer, for the employer’s
employment taxes. An employer’s use of
a reporting agent does not relieve the em-
ployer of its employment tax obligations or
liability for the taxes.
Analyzing Three-Party Arrangements
In certain instances, an employer may
mistakenly believe it is relieved of em-
ployment tax liabilities merely because
it has entered into an agreement with a
third-party payor (for example, a PEO or
employee leasing company) for assistance
in fulfilling its employment tax obliga-
tions. However, an employer remains
liable for employment taxes irrespective
of any agreement it may enter into that
purports to place the employment tax
obligations and liabilities with the payor,
except in the limited circumstances when
the payor satisfies the conditions to be
liable under section 3401(d)(1). In this re-
gard, status as the employer of the worker
is determined based on all the facts and
circumstances under the common law test
(or under other specific Code provisions
related to particular types of employees,
such as corporate officers). Neither claims
by a payor that it is the employer (or
“co-employer”) of the worker for federal
employment tax or other purposes nor the
fact that the payor may file employment
tax returns under its own EIN are deter-
minative under the Code for purposes of
identifying the employer liable for em-
ployment taxes.
The application of the employment tax
obligations in a three-party arrangement
often requires an analysis of complex facts
and circumstances that can vary widely.
Consequently, the parties to an arrange-
ment may not always understand which
party or parties will be liable for any un-
paid employment taxes. Even when there
is no underlying dispute about the status
of the workers as employees or that em-
ployment taxes are due with respect to the
wages paid to the employees, the IRS must
expend substantial resources to develop
the facts to determine the liabilities of the
parties. The Treasury Department and the
IRS intend that these proposed regulations
assist taxpayers and the IRS in determin-
ing the parties’ employment tax obliga-
tions in a three-party arrangement when
a payor has represented to its client that
it will pay the employment taxes with re-
spect to wages or compensation it pays to
employees for services performed by em-
ployees for the client.
Explanation of Provisions
In General
The proposed regulations provide rules
regarding employment tax obligations in
certain three-party arrangements when the
employer enters into an agreement with a
third-party payor under which the payor
performs the employment tax obligations
of the client with regard to wages or com-
pensation paid by the payor to individuals
performing services for the client, but
the payor does not meet the legal condi-
tions necessary to be a section 3401(d)(1)
employer, does not obtain an approved
Form 2678, and is not a PSP or reporting
agent. More specifically, the proposed
regulations provide that, unless one of the
enumerated exceptions discussed below
2013–10 I.R.B.581March 4, 2013

applies, a payor is designated as an agent
under section 3504 to perform the acts
required of an employer with respect to
wages or compensation paid by the payor
to any individual performing services for
any client pursuant to a service agreement
(as defined in these proposed regulations)
between the payor and the client.
The designation of a payor as an agent
to perform acts of an employer under the
proposed regulations addresses all federal
employment taxes. Thus, for purposes of
the proposed regulations, the termwages
includes wages as defined for purposes of
Chapters 21 (FICA tax), 23 (FUTA tax),
and 24 (federal income tax withholding)
of the Code, and the termcompensation
means compensation as defined for pur-
poses of Chapter 22 (RRTA tax) of the
Code. The rules in the proposed regula-
tions regarding the designation of a payor
as an agent required to perform acts of
an employer are provided solely for pur-
poses of determining liability for employ-
ment taxes under section 3504. No infer-
ence is intended that the same rules would
apply for any other provision of the Code.
As required by section 3504 and consis-
tent with the rules relating to agents autho-
rized under §31.3504–1(a), the proposed
regulations provide that if a payor is des-
ignated as an agent to perform the acts of
an employer, all provisions of law (includ-
ing penalties) applicable with respect to an
employer are applicable to that payor and
that each employer for whom the payor is
designated to act remains subject to all pro-
visions of law (including penalties) appli-
cable to an employer. However, consis-
tent with the IRS’s position on adminis-
tering the section 6672 trust fund recovery
penalty, under the proposed regulations the
employment tax liability of an employer
will be collected only once, whether from
the payor or the employer.
Scope and Effect of Designation
Subject to the exceptions set forth in
the proposed regulations, a payor is des-
ignated as an agent under section 3504 to
perform the acts of an employer in any
case in which the payor entered into a ser-
vice agreement with aclient. For this pur-
pose, the termservice agreementmeans
a written or oral agreement pursuant to
which the payor (1) asserts it is the em-
ployer (or “co-employer”) of individuals
performing services for the client, (2) pays
wages or compensation to the individuals
for services the individuals performed for
the client, and (3) assumes responsibility
to collect, report, and pay, or assumes li-
ability for, any employment taxes with re-
spect to the wages or compensation paid by
the payor to the individuals who performed
services for the client.
The first component of a service agree-
ment is that the payor asserts it is the em-
ployer (or “co-employer”) of individuals
performing services for another individ-
ual or entity (the client). For purposes of
these regulations, a payor may implicitly
or explicitly assert it is the employer (or
“co-employer”) of individuals performing
services for a client, including by agree-
ing to: 1) recruit and hire employees or
assign employees as permanent or tempo-
rary members of the client’s workforce, or
participate with the client in these actions;
2) hire the client’s employees as its own
and then provide them back to the client to
perform services for the client; or 3) file
employment tax returns using its own EIN
that include wages or compensation paid to
the individuals performing services for the
client. A payor that is the common law em-
ployer of the individuals performing ser-
vices for a client under all of the facts and
circumstances, however, is not designated
under the proposed regulations to perform
the acts of an employer with respect to
wages or compensation paid to such indi-
viduals (see “Exceptions to Designation”)
but is liable for employment taxes as the
employer.
The second component of a service
agreement is that the payor pays wages
or compensation to the individuals per-
forming services for its client. A payor
with legal control of the payment of wages
or compensation within the meaning of
section 3401(d)(1), however, is not desig-
nated under the proposed regulations with
respect to such wages or compensation
(see “Exceptions to Designation”) but is
liable for employment taxes as a section
3401(d)(1) employer.
The third component of a service
agreement is that the payor assumes re-
sponsibility for the collection, reporting,
and payment of, or assumes liability for,
any employment taxes with respect to the
wages or compensation paid by the payor
to the individuals performing services for
the client. Under the proposed regula-
tions, a payor assumes the responsibility
to collect, report, and pay the applicable
taxes if the payor represents to the client
that it would make any or all of the fed-
eral employment tax deposits and other
payments required by law. A payor that is
a PSP or reporting agent, however, is not
designated under the proposed regulations
with respect to such wages or compensa-
tion (see “Exceptions to Designation”) if
the payor files the employment tax returns
reporting such wages or compensation
under the client’s EIN.
Exceptions to Designation
As mentioned above, the proposed
regulations provide exceptions to when a
payor is designated under section 3504 to
perform the acts of an employer even if
the payor has entered into an agreement
that includes the components of a ser-
vice agreement. The proposed regulations
contain eight examples demonstrating
the application or non-application of the
proposed regulations to various factual
scenarios.
First, the proposed regulations do not
apply to the extent that the payor files
employment tax returns under the client’s
EIN, reporting the wages or compensation
paid to individuals performing services for
the client. Thus, a reporting agent or a PSP
that prepares returns using the employer’s
EIN is not designated under the proposed
regulations.
Second, the proposed regulations do not
affect the application of the common pay-
master rules under sections 3121(s) and
3231(i). Therefore, a second exception
provides that a common paymaster is not
designated under the proposed regulations
for wages or compensation it pays within
the context of the concurrent employment
arrangement describedin section 3121(s)
or 3231(i) and the related regulations.
Third, a payor is not designated under
the proposed regulations if the person is
the employer of the employees under the
common law test (because the person has
the right to control and direct the individ-
ualwithregardtothedetailsandmeansof
performing services for the client) or un-
der one of the other section 3121(d) provi-
sions, or is a section 3401(d)(1) employer.
Thus, a third exception provides that if the
payor is the employer of the individuals
performing services for a client, it is not
March 4, 20135822013–10 I.R.B.

designated as an agent under section 3504.
The payor remains liable for payment of
employment taxes, however, as the em-
ployer. For example, if a consulting firm
contracts to provide consulting services to
a client and the consulting firm directs and
controls the employees providing the con-
sulting services under the contract with re-
gard to how to perform those services, the
consulting firm is liable for employment
taxes as the common law employer of the
employees, not as a payor designated un-
der the proposed regulations.
Designation Under Proposed Regulations
Is Not the Exclusive Remedy for the IRS
The Treasury Department and the IRS
recognize that the determination of the em-
ployer and the liabilities of the parties in a
three-party arrangement is a factually and
resource intensive undertaking involving
multiple parties. The regulations as pro-
posed will assist the IRS in cases in which
a payor has represented to a client that
the payor is liable for some or all of the
client’s employment tax obligations, but
the payor has not received authorization to
act as an agent through an approved Form
2678. However, the designation of a payor
as an agent to perform the acts required
of an employer under the proposed regu-
lations will not preclude the IRS from as-
serting, in the alternative, that the payor is
the common law employer (or an employer
of an employee under one of the other
section 3121(d) provisions) or the section
3401(d)(1) employer of individuals pro-
viding services for a client. Additionally,
the fact that the IRS does not assert that a
payor is designated as an agent to perform
the acts required of an employer under the
proposed regulations will not preclude the
IRS from determining the payor’s employ-
ment tax-related liability under other Code
provisions (for example, the section 6672
trust fund recovery penalty).
Effective Applicability Date
These regulations are proposed to be ef-
fective the date the final regulations are
published in theFederal Registerand are
applicable to wages or compensation paid
by a payor in quarters beginning on or after
the effective date to individuals perform-
ing services for its client pursuant to a ser-
vice agreement.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866. Therefore, a regulatory as-
sessment is not required. It also has been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. chap-
ter 5) does not apply to this regulation, and
because the regulation does not impose a
collection of information on small entities,
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to sec-
tion 7805(f) of the Internal Revenue Code,
this regulation has been submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any written or electronic
comments that are submitted timely to the
IRS.
The IRS and Treasury Department
request comments on the proposed regu-
lations and are particularly interested in
comments on the following issues.
(1) Whether the application of the def-
inition ofservice agreementinappropri-
ately results in a payor being designated
an agent under section 3504, or inappro-
priately results in a payor failing to be des-
ignated an agent under section 3504;
(2) Whether additional exceptions are
warranted; and
(3) Potential additional examples.
All comments will be available for pub-
lic inspection and copying. A public hear-
ing will be scheduled if requested in writ-
ing by any person that timely submits writ-
ten comment. If a public hearing is sched-
uled, notice of the date, time, and place for
the hearing will be published in theFed-
eral Register.
Drafting Information
The principal author of these proposed
regulations is Jeanne Royal Singley, Of-
fice of Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities). However, personnel from other
offices of the IRS and Treasury partici-
pated in their development.
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 31 is pro-
posed to be amended as follows:
PART 31—EMPLOYMENT TAXES
AND COLLECTION OF INCOME TAX
AT SOURCE
Paragraph 1. The authority citation for
part 31 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 31.3504–2 is added to
read as follows:
§31.3504–2 Designation of Payor as
Agent to Perform Acts of an Employer
(a)In general. A person (as defined
in section 7701(a)(1)) that pays wages or
compensation (“payor”) to the individ-
ual(s) performing services for any client
pursuant to a service agreement, except as
provided in paragraph (d) of this section,
is designated as an agent to perform the
acts required of an employer with respect
to the wages or compensation paid. For
purposes of this section the termwages
has the same meaning as the term wages
has for purposes of chapters 21, 23, and
24, and the termcompensationhas the
same meaning as the term compensation
has for purposes of chapter 22. This sec-
tion is not applicable if the payor has been
authorized as an agent of the employer
under § 31.3504–1.
(b) Definitions—(1)Client.Theterm
clientmeans an individual or entity that
enters into a service agreement with the
payor.
(2)Service agreement.(i)Thetermser-
vice agreementmeans an agreement pur-
suant to which the payor:
(A) asserts it is the employer (or “co-
employer”) of the individual(s) perform-
ing services for the client;
(B) pays wages or compensation to the
individual(s) for services the individual(s)
perform for the client; and
(C) assumes responsibility to collect,
report, and pay, or assumes liability for,
any taxes applicable under subtitle C of the
Code with respect to the wages or com-
pensation paid by the payor to the individ-
ual(s) performing services for the client.
2013–10 I.R.B.583March 4, 2013

(ii) For purposes of paragraph (i)(A)
of this section, the payor may implicitly
or explicitly assert it is the employer (or
“co-employer”) of the individual(s) per-
forming services for the client, including
by agreeing to:
(A) recruit and hire employees for the
client or assign employees as permanent
or temporary members of the client’s work
force, or participate with the client in these
actions;
(B) hire the client’s employees as its
own and then provide them back to the
client to perform services for the client; or
(C) file employment tax returns using
its own EIN that include wages or compen-
sation paid to the individual(s) performing
services for the client.
(c)Effects of designation. If a payor
is designated as an agent to perform the
acts required of an employer under this
section—
(1) A payor must perform the acts re-
quired of an employer under each applica-
ble chapter of the Code and the relevant
regulations with respect to the wages or
compensation paid by such payor. All pro-
visions of law (including penalties) and the
regulations applicable to the employer are
applicable to the payor so designated with
respect to the wages or compensation paid
by the payor; and
(2) Each employer for whom the payor
is designated as an agent remains subject to
all provisions of law (including penalties)
and of the regulations applicable to an em-
ployer.
(d)Exceptions. A payor is not desig-
nated as an agent to perform the acts re-
quired of an employer under this section
for any wages or compensation paid by the
payor to the individual(s) performing ser-
vices for a client to the extent that—
(1) the wages or compensation are re-
ported on a return filed under the client’s
employer identification number (as de-
fined in section 6109 and the applicable
regulations);
(2) the payor is a common paymaster
under sections 3121(s) or 3231(i); or
(3) the payor is the employer of the in-
dividual(s).
(e)Examples. The following examples
illustrate the application of this section:
(1)Example 1. Corporation P enters into an
agreement with Employer, effective January 1,
2013. Under the agreement, Corporation P hires
the Employer’s employees as its own employees
and provides them back to Employer to perform
services for Employer. Corporation P also assumes
responsibility to make payment of the individuals’
wages and for the collection, reporting, and payment
of applicable taxes. For all pay periods in 2013, Em-
ployer provides Corporation P with an amount equal
to the gross payroll (that is, wage and tax amounts)
of the individuals, and Corporation P pays wages
(less the applicable withholding) to the individuals
performing services for Employer. Corporation P
also reports the wage and tax amounts on Form
941,Employer’s QUARTERLY Federal Tax Return,
filed for each quarter of 2013 under Corporation
P’s employer identification number. Corporation P
is not a common paymaster or the employer of the
individuals. Corporation P is designated to perform
the acts of an employer with respect to all of the
wages Corporation P paid to the individuals perform-
ing services for Employer for all quarters of 2013.
Employer and Corporation P are each subject to all
provisions of law (including penalties) applicable in
respect of employers for all quarters of 2013 with
respect to such wages.
(2)Example 2. Same facts asExample 1,ex-
cept that Corporation P only reports the wage and
tax amounts on Form 941,Employer’s QUARTERLY
Federal Tax Return, filed for the 1
st
and 2
nd
quarters
of 2013. Neither Corporation P nor Employer files
returns for the 3
rd
and 4
th
quarters of 2013. Corpora-
tion P is designated to perform the acts of an employer
with respect to all of the wages Corporation P paid
to the individuals performing services for Employer
for all quarters of 2013. Employer and Corporation
P are each subject to all provisions of law (including
penalties) applicable in respect of employers for all
quarters of 2013 with respect to such wages.
(3)Example 3. Same facts asExample 1,ex-
cept that neither Corporation P nor Employer reports
the wage and tax amounts on Form 941,Employer’s
QUARTERLY Federal Tax Return, for any quarter of
2013. Corporation P is designated to perform the acts
of an employer with respect to all of the wages Cor-
poration P paid to the individuals performing services
for Employer for all quarters of 2013. Employer and
Corporation P are each subject to all provisions of law
(including penalties) applicable in respect of employ-
ers for all quarters of 2013 with respect to such wages.
(4)Example 4. Same facts asExample 1,ex-
cept that Employer provides only net payroll (that is,
wages less tax amounts) to Corporation P for each pay
period. Corporation P is designated to perform the
acts of an employer with respect to all of the wages
Corporation P paid to the individuals performing ser-
vices for Employer for all quarters of 2013. Employer
and Corporation P are each subject to all provisions of
law (including penalties) applicable in respect of em-
ployers for all quarters of 2013 with respect to such
wages.
(5)Example 5. Same facts asExample 1,ex-
cept that after Corporation P reports the wage and
tax amounts on Form 941,Employer’s QUARTERLY
Federal Tax Return,filedforeachquarterof2013un-
der Corporation P’s employer identification number,
Corporation P files a claim for refund of the employ-
ment taxes it paid for each quarter of 2013 that are re-
lated to wages Corporation P paid to the individuals
performing services for Employer. The basis for Cor-
poration P’s refund claim is that Corporation P is not
the employer of the individuals that performed ser-
vices for Employer. Corporation P is designated to
perform the acts of an employer with respect to all
of the wages Corporation P paid to the individuals
performing services for Employer for all quarters of
2013. Accordingly, Corporation P is not entitled to a
refund. Employer and Corporation P are each subject
to all provisions of law (including penalties) applica-
ble in respect of employers for all quarters of 2013
with respect to such wages.
(6)Example 6. Corporation S enters into an
agreement with Employer, effective January 1, 2013.
Under the agreement, Corporation S provides payroll
services, including payment of wages to individu-
als performing services for Employer, and assumes
responsibility for the collection, reporting, and pay-
ment of applicable taxes. For all pay periods in
2013, Employer provides Corporation S with an
amount equal to the gross payroll (that is, wage and
tax amounts) of the individuals, and Corporation S
pays wages (less the applicable withholding) to the
individuals performing services for Employer. Cor-
poration S also reports the wage and tax amounts on
Form 941,Employer’s QUARTERLY Federal Tax Re-
turn, filed for each quarter of 2013 under Employer’s
employer identification number. Corporation S is not
designated to perform the acts of an employer with
respect to all of the wages Corporation S paid to the
individuals performing services for Employer for all
quarters of 2013. Corporation S did not assert it was
the employer and filed Forms 941 using Employer’s
employer identification number. Accordingly, Cor-
poration S is not liable for the applicable employment
taxes under this section. Employer remains subject to
all provisions of law (including penalties) applicable
in respect of employers for all quarters of 2013 with
respecttosuchwages.
(7)Example 7. Corporation V enters into a con-
sulting agreement with Manufacturer effective Jan-
uary 1, 2013, to provide consulting services to Man-
ufacturer. Corporation V is responsible to pay wages
to the individuals providing the consulting services
to Manufacturer and to collect, report, and pay the
applicable taxes. Corporation V has the right to di-
rect and control the individuals as to when and how
to perform the consulting services and, thus, is the
common law employer of the individuals providing
the consulting services. Corporation V is not desig-
nated to perform the acts of an employer with respect
to all of the wages Corporation V paid to individuals
providing consulting services to Manufacturer. How-
ever, as the common law employer of the individuals,
Corporation V is subject to all provisions of law (in-
cluding penalties) applicable in respect of employers
with respect to such wages.
(8)Example 8. Corporation U and Employer ex-
ecute and submit a Form 2678,Employer/Payer Ap-
pointment of Agent, to the Service, requesting ap-
proval to authorize Corporation U to report, deposit,
and pay taxes with respect to wages it pays, as agent
of Employer for purposes of Form 941,Employer’s
QUARTERLY Federal Tax Return. The Form 2678
is approved by the Service and effective for all quar-
ters of 2013. Accordingly, Corporation U reports the
wages it pays to individuals performing services for
Employer and related tax amounts on Form 941 and
Schedule R (Form 941),Allocation Schedule for Ag-
gregate Form 941 Filers, filed for each quarter of
2013 under Corporation U’s employer identification
number. Corporation U is not designated under this
March 4, 20135842013–10 I.R.B.

sectiontoperformtheactsofanemployerwithre-
spect to all of the wages Corporation U paid to the
individuals performing services for Employer for all
quarters of 2013. However, as an agent authorized
under §31.3504–1(a), Corporation U is subject to all
provisions of law (including penalties) applicable in
respect of employers for all quarters of 2013 with re-
spect to such wages. Employer also remains subject
to all provisions of law (including penalties) applica-
ble in respect of employers for all quarters of 2013
with respect to such wages.
(f)Effective/applicability date.These
regulations apply to wages or compensa-
tion paid by a payor in quarters beginning
on or after the date of publication of the
final regulations in theFederal Register
to individuals performing services for the
payor’s client pursuant to a service agree-
ment.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement
(Filed by the Office of the Federal Register on January 25,
2013, 8:45 a.m., and published in the issue of the Federal
Register for January 29, 2013, 78 F.R. 6056)
2013–10 I.R.B.585March 4, 2013

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
March 4, 2013i2013–10 I.R.B.

Numerical Finding List
1
Bulletins 2013–1 through 2013–10
Announcements:
2013-1, 2013-1 I.R.B.251
2013-2, 2013-2 I.R.B.271
2013-3, 2013-2 I.R.B.271
2013-4, 2013-4 I.R.B.440
2013-5, 2013-3 I.R.B.306
2013-6, 2013-3 I.R.B.307
2013-7, 2013-3 I.R.B.308
2013-8, 2013-4 I.R.B.440
2013-9, 2013-4 I.R.B.441
2013-10, 2013-3 I.R.B.311
2013-11, 2013-6 I.R.B.483
2013-13, 2013-9 I.R.B.532
Notices:
2013-1, 2013-3 I.R.B.281
2013-2, 2013-6 I.R.B.473
2013-3, 2013-7 I.R.B.484
2013-4, 2013-9 I.R.B.527
2013-5, 2013-9 I.R.B.529
2013-6, 2013-10 I.R.B.540
2013-7, 2013-6 I.R.B.477
2013-8, 2013-7 I.R.B.486
2013-9, 2013-9 I.R.B.529
2013-10, 2013-8 I.R.B.503
2013-12, 2013-10 I.R.B.543
Proposed Regulations:
REG-141066-09, 2013-3 I.R.B.289
REG-148873-09, 2013-7 I.R.B.494
REG-102966-10, 2013-10 I.R.B.579
REG-122707-12, 2013-5 I.R.B.450
Revenue Procedures:
2013-1, 2013-1 I.R.B.1
2013-2, 2013-1 I.R.B.92
2013-3, 2013-1 I.R.B.113
2013-4, 2013-1 I.R.B.126
2013-5, 2013-1 I.R.B.170
2013-6, 2013-1 I.R.B.198
2013-7, 2013-1 I.R.B.233
2013-8, 2013-1 I.R.B.237
2013-9, 2013-2 I.R.B.255
2013-10, 2013-2 I.R.B.267
2013-11, 2013-2 I.R.B.269
2013-12, 2013-4 I.R.B.313
2013-13, 2013-6 I.R.B.478
2013-14, 2013-3 I.R.B.283
2013-15, 2013-5 I.R.B.444
2013-16, 2013-7 I.R.B.488
2013-18, 2013-8 I.R.B.503
Revenue Rulings:
2013-1, 2013-2 I.R.B.252
2013-2, 2013-10 I.R.B.533
2013-3, 2013-8 I.R.B.500
2013-4, 2013-9 I.R.B.520
2013-5, 2013-9 I.R.B.525
Treasury Decisions:
9601, 2013-10 I.R.B.535
9603, 2013-3 I.R.B.273
9607, 2013-6 I.R.B.469
9608, 2013-3 I.R.B.274
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin
2012–52, dated December 27, 2012.
2013–10 I.R.B.iiMarch 4, 2013

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–1 through 2013–10
Notices:
2011-14
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-38
Obsoleted by
REG-148873-09, 2013-7 I.R.B.494
2012-60
Superseded by
Notice 2013-1, 2013-3 I.R.B.281
Proposed Regulations:
REG-140668-07
Corrected by
Ann. 2013-6, 2013-3 I.R.B.307
Revenue Procedures:
87-57
Modified by
Rev. Proc. 2013-13, 2013-6 I.R.B.478
2004-66
Modified and superseded by
Rev. Proc. 2013-11, 2013-2 I.R.B.269
2008-35
Modified and superseded by
Rev. Proc. 2013-14, 2013-3 I.R.B.283
2008-50
Modified and superseded by
Rev. Proc. 2013-12, 2013-4 I.R.B.313
2011-49
Modified by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2011-52
Modified and partly superseded by
Rev. Proc. 2013-15, 2013-5 I.R.B.444
2011-55
Amplified and supplemented by
Notice 2013-7, 2013-6 I.R.B.477
2011-62
Superseded by
Rev. Proc. 2013-18, 2013-8 I.R.B.503
2012-1
Superseded by
Rev. Proc. 2013-1, 2013-1 I.R.B.1
2012-2
Superseded by
Rev. Proc. 2013-2, 2013-1 I.R.B.92
Revenue Procedures— Continued:
2012-3
Superseded by
Rev. Proc. 2013-3, 2013-1 I.R.B.113
2012-4
Superseded by
Rev. Proc. 2013-4, 2013-1 I.R.B.126
2012-5
Superseded by
Rev. Proc. 2013-5, 2013-1 I.R.B.170
2012-6
Superseded by
Rev. Proc. 2013-6, 2013-1 I.R.B.198
2012-7
Superseded by
Rev. Proc. 2013-7, 2013-1 I.R.B.233
2012-8
Superseded by
Rev. Proc. 2013-8, 2013-1 I.R.B.237
2012-9
Superseded by
Rev. Proc. 2013-9, 2013-2 I.R.B.255
2012-10
Superseded by
Rev. Proc. 2013-10, 2013-2 I.R.B.267
2012-30
Corrected and clarified by
Ann. 2013-3, 2013-2 I.R.B.271
Updated by
Ann. 2013-10, 2013-3 I.R.B.311
2012-46
Corrected by
Ann. 2013-11, 2013-6 I.R.B.483
2013-1
Corrected by
Ann. 2013-9, 2013-4 I.R.B.441
2013-6
Corrected by
Ann. 2013-13, 2013-9 I.R.B.532
Revenue Rulings:
92-19
Supplemented in part by
Rev. Rul. 2013-4, 2013-9 I.R.B.520
Treasury Decisions:
9564
Corrected by
Ann. 2013-4, 2013-4 I.R.B.440
Amended by
Ann. 2013-7, 2013-3 I.R.B.308
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–27 through 2012–52 is in Internal Revenue Bulletin 2012–52, dated December 27,
2012.
March 4, 2013iii2013–10 I.R.B.

Internal Revenue Service
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