Highlights of Internal Revenue Bulletin 2024-26 – 6/24/2024

Posted by Lee Reams Sr., BSME, EA on

Welcome to "IRS Bulletin Notes," your go-to for the latest IRS tax updates. In IRS Bulletin No. 2024-26, we highlight key changes and updates essential for tax professionals.

HIGHLIGHTS OF INTERNAL REVENUE BULLETIN 2024-26 – June 24, 2024

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The Internal Revenue Bulletin (IRB) is the authoritative instrument for announcing official rulings and procedures of the IRS and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. 

EXCISE TAX

Notice 2024-50, page 1789.

Under section 4672(a)(2), the importer or exporter of any substance may request that the Secretary determine whether such substance should be added to the list of taxable substances (List) or should be removed from the List. Revenue Procedure 2022-26, as modified by Revenue Procedure 2023-20, provides the procedures for an importer, exporter, or interested person to request a modification of the list of taxable substances. An importer of polyoxymethylene requested that polyoxymethylene be added to the List. This Notice of Determination provides the Secretary’s determination that polyoxymethylene be added to the List.

INCOME TAX

Notice 2024-45, page 1747.

This notice publishes the inflation adjustment factors for the credit for production of clean hydrogen under § 45V of the Internal Revenue Code (Code) and the corresponding applicable amounts for calendar years 2023 and 2024. The inflation adjustment factor and applicable amount are used to determine the amount of the credit allowable under § 45V of the Code.

Notice 2024-46, page 1748.

This notice announces that the Commissioner of Internal Revenue (Commissioner) has determined that the February 3, 2023, derailment of a freight train operated by a common carrier in East Palestine, Ohio (Derailment), is a qualified disaster for purposes of § 139 of the Internal Revenue Code (Code). As a result of this determination, certain payments made by the common carrier to individuals affected by the Derailment (affected individuals) are excludable from gross income as qualified disaster relief payments under § 139(a).

Notice 2024-48, page 1749.

This notice publishes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category, or the Coal Closure Category as described in sections 3.03 and 3.04 of Notice 2023-29 for purposes of qualifying for energy community bonus credit amounts or rates under §§ 45, 45Y, 48, and 48E of the Internal Revenue Code. These lists are provided in Appendix 1 and Appendix 2 to this notice. Appendix 1 to this notice pertains to the Statistical Area Category, and Appendix 2 to this notice pertains to the Coal Closure Category. This notice does not include information that pertains to the Brownfield Category as described in section 3.02 of Notice 2023-29. Appendices A, B, and C to Notice 2023- 29; Appendices 1, 2, and 3 to Notice 2023-47; Appendices 1 and 2 to Notice 2024-30; and Appendices 1 and 2 to this notice may not be used for purposes of the qualifying advanced energy project credit determined under § 48C.

Notice 2024-49, page 1781.

Notice 2024-49 provides guidance on the registration requirements for the clean fuel production credit. A taxpayer must be registered as a producer of clean fuel at the time of production to be eligible to claim the clean fuel production credit. Notice 2024-49 provides guidance regarding the registration requirement, including information about the time, form, and manner of such registration with the Internal Revenue Service. A taxpayer must have a signed registration letter dated on or before January 1, 2025, for the taxpayer to be eligible to claim the clean fuel production credit for production starting January 1, 2025.

Notice 2024-51, page 1790.

This notice publishes the reference price for the nonconventional source production credit under § 45K of the Internal Revenue Code (Code) for calendar year 2023. Section 45K(d)(2)(A) provides, in general, that the Secretary shall determine and publish in the Federal Register the inflation adjustment factor and the reference price for the preceding calendar year for purposes of the nonconventional source production credit under § 45K.

The credit period for the nonconventional source production credit ended on December 31, 2013, for facilities producing coke or coke gas (other than from petroleum-based products). Therefore, this notice does not publish the inflation adjustment factor for that credit for calendar year 2023. However, the reference price continues to apply in determining the amount of the enhanced oil recovery credit under § 43, the marginal well production credit for qualified crude oil production under § 45I, and the percentage depletion in case of oil and natural gas produced from marginal properties under § 613A. Accordingly, this notice publishes the reference price for calendar year 2023.