rr-25-17.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. 2025-17

This revenue ruling provides various prescribed rates for federal income tax
purposes for September 2025 (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. 2025-17 TABLE 1

Applicable Federal Rates (AFR) for September 2025

Period for Compounding
Annual Semiannual Quarterly Monthly

Short-term

AFR 4.00% 3.96% 3.94% 3.93%
110% AFR 4.41% 4.36% 4.34% 4.32%
120% AFR 4.81% 4.75% 4.72% 4.70%
130% AFR 5.22% 5.15% 5.12% 5.10%

Mid-term

AFR 4.04% 4.00% 3.98% 3.97%
110% AFR 4.45% 4.40% 4.38% 4.36%
120% AFR 4.86% 4.80% 4.77% 4.75%
130% AFR 5.27% 5.20% 5.17% 5.14%
150% AFR 6.09% 6.00% 5.96% 5.93%
175% AFR 7.12% 7.00% 6.94% 6.90%

Long-term

AFR 4.83% 4.77% 4.74% 4.72%
110% AFR 5.32% 5.25% 5.22% 5.19%
120% AFR 5.80% 5.72% 5.68% 5.65%
130% AFR 6.30% 6.20% 6.15% 6.12%

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REV. RUL. 2025-17 TABLE 2

Adjusted AFR for September 2025

Period for Compounding
Annual Semiannual Quarterly Monthly
Short-term
adjusted AFR 3.03% 3.01% 3.00% 2.99%

Mid-term
adjusted AFR 3.06% 3.04% 3.03% 3.02%

Long-term
adjusted AFR 3.65% 3.62% 3.60% 3.59%

REV. RUL. 2025-17 TABLE 3

Rates Under Section 382 for September 2025

Adjusted federal long-term rate for the current month 3.65%

Long-term tax-exempt rate for ownership changes during the
current month (the highest of the adjusted federal long-term
rates for the current month and the prior two months.) 3.71%

REV. RUL. 2025-17 TABLE 4

Appropriate Percentages Under Section 42(b)(1) for September 2025
Note: 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%.

Appropriate percentage for the 70% present value low-income
housing credit 8.03%

Appropriate percentage for the 30% present value low-income
housing credit 3.44%

REV. RUL. 2025-17 TABLE 5

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Rate Under Section 7520 for September 2025

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%