rr-24-03.pdf

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Section 1274.--Determination of Issue Price in the Case of Certain Debt Instruments
Issued for Property

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

Rev. Rul. 2024-03

This revenue ruling provides various prescribed rates for federal income tax
purposes for February 2024 (the current month). Table 1 contains the short-term, mid-
term, and long-term applicable federal rates (AFR) for the current month for purposes of
section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-
term, and long-term adjusted applicable federal rates (adjusted AFR) for the current
month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-
term rate and the long-term tax-exempt rate described in section 382(f). Table 4
contains the appropriate percentages for determining the low-income housing credit
described in section 42(b)(1) for buildings placed in service during the current month.
However, under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally,
Table 5 contains the federal rate for determining the present value of an annuity, an
interest for life or for a term of years, or a remainder or a reversionary interest for
purposes of section 7520.

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REV. RUL. 2024-03 TABLE 1

Applicable Federal Rates (AFR) for February 2024

Period for Compounding
Annual Semiannual Quarte rly Monthly

Short-term

AFR 4.68% 4.63% 4.60% 4.59%
110% AFR 5.15% 5.09% 5.06% 5.04%
120% AFR 5.64% 5.56% 5.52% 5.50%
130% AFR 6.11% 6.02% 5.98% 5.95%

Mid-term

AFR 3.98% 3.94% 3.92% 3.91%
110% AFR 4.38% 4.33% 4.31% 4.29%
120% AFR 4.79% 4.73% 4.70% 4.68%
130% AFR 5.19% 5.12% 5.09% 5.07%
15 0% AFR 6.00% 5.91% 5.87% 5.84%
175% AFR 7.02% 6.90% 6.84% 6.80%

Long-term

AFR 4.18% 4.14% 4.12% 4.10%
110% AFR 4.60% 4.55% 4.52% 4.51%
12 0% AFR 5.03% 4.97% 4.94% 4.92%
130% AFR 5.45% 5.38% 5.34% 5.32%

REV. RUL. 2024-03 TABLE 2

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Adjusted AFR for February 2024

Period for Compounding
Annual Semia nnual Quarterly Monthly
Short-term
adjusted AFR 3.55% 3.52% 3.50% 3.49%

Mid-term
adjusted AFR 3.01% 2.99% 2.98% 2.97%

Long-term
adjusted AFR 3.16% 3.14% 3.13% 3.12%

REV. RUL. 2024-03 TABLE 3

Rates Under Section 382 for February 2024

Adjusted federal long-term rate for the current month 3.16%

Long-term tax-exempt rate for ownership changes during the
current month (the highest of the adjusted federal long-term
rates for the current mon th and the prior two months.) 3.81%

REV. RUL. 2024-03 TABLE 4

Appropriat e Percentages Under Section 42(b)(1) for February 2024
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after Jul y 30, 2008, shall not be less than 9%.

Appropriate percentage for t he 70% present value low-income
housing credit 7.95%

Appropriate percentage for the 30% present value low-income
housing credit 3.41%

REV. RUL. 2024-03 TABLE 5

Rate Under Section 7520 for February 2024

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Applicable federal rate for determining the present value of an
annuity, an interest for life or a term of years, or a remainder or
reversionary interest 4.80%