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June 8, 2023

U.S. Tax This Week for June 9

Ernst & Young's U.S. Tax This Week newsletter for the week ending June 9 is now available. Prepared by Ernst & Young's National Tax Department in Washington, D.C., this weekly update summarizes important news, cases, and other developments in U.S. taxation.

Top of the Week

IRS releases additional guidance on claiming credits under IRC Section 48C for qualifying advanced energy projects

The IRS has released additional guidance (Notice 2023-44) on the IRC Section 48C(e) program to allocate $10b in credits for investments in eligible qualifying advanced energy projects, of which at least $4b will be for projects located in energy communities census tracts. Notice 2023-44 clarifies and modifies Notice 2023-18 (see Tax Alert 2023-0308) by giving detailed information on the process for submitting concept papers and program applications, as well as the criteria the IRS and DOE will consider in allocating credits. In addition, Notice 2023-44 gives information on "energy communities census tracts" and includes a complete list of eligible census tracts in Appendix C, as well as a link to an updated mapping tool. EY Tax Alert 2023-1012 has details.

Senate clears Fiscal Responsibility Act, 63-36

By a vote of 63-36, the Senate on June 1 cleared for President Biden's signature the Fiscal Responsibility Act (HR 3746), a bipartisan agreement between the White House and House Speaker Kevin McCarthy (R-CA) to suspend the debt ceiling through 2024, a handful of days before the June 5 "X-date" that Treasury Secretary Janet Yellen has cited as the day the government would be unable to pay all of its debts. The House passed the bill, 314-117, on Wednesday. The White House said the president would sign the bill as soon as possible. EY Tax Alert 2023-0989 has details.

EY Guides and Publications

Our US employment tax rates and limits report for 2023 is updated through May 25, 2023
The 2023 edition of our US employment tax rates and limits report is now updated through May 25, 2023, to reflect changes in state paid family and medical leave insurance, state unemployment insurance and state income tax rates.

Upcoming Webcasts

How to understand the new class of tax authority governance programs in Americas and EMEIA (June 14)
During this EY Webcast for Americas and EMEIA audiences, EY professionals will describe the rapidly growing focus of business and tax authorities on tax governance.

Tax in a time of transition: Legislative, economic, regulatory and IRS developments (June 16)
Please join us for a fast-paced overview of recent tax and economic developments designed to help you stay on top of changes in today’s shifting economic, legislative and regulatory environment. In this regularly occurring EY Webcast series, panelists will provide updates on: (i) the US economy and tax policy; (ii) what’s happening at the IRS; and (iii) breaking developments.

Accounting for income taxes: A quarterly perspective (June 20)
During this EY Webcast, moderated by Angela Evans, Partner, Tax Accounting and Risk Advisory Services (TARAS), will discuss ongoing issues and regulatory trends in the tax accounting arena. Topics will include recent tax legislation with tax accounting implications and a review of current income tax accounting concepts.

Finance and treasury: How to navigate the changing global tax landscape (June 28)
During this EY Webcast, Ernst & Young professionals will discuss key tax trends and topics that will affect global finance and treasury activities.

Recent Tax Alerts

Internal Revenue Service

— Jun 07: IRS declines or revokes tax-exempt status in four recent rulings (Tax Alert 2023-1019)

— Jun 07: Proposed regulations outline new approach to selection process for Low-Income Communities Bonus Credit Program (Tax Alert 2023-1018)

— Jun 07: IRS offers penalty relief for corporations that failed to pay estimated CAMT (Tax Alert 2023-1017)

— Jun 06: IRS allows private foundation to set aside funds for developing novel therapies (Tax Alert 2023-1010)

— Jun 05: PCORI fee due by July 31 (Tax Alert 2023-1004)


— Jun 08: South Africa announces another extension for Zimbabwe Exemption Permit holders to change immigration status (Tax Alert 2023-1027)

— Jun 08: Malaysia announces new online "Xpats Gateway" portal for requesting support letters (Tax Alert 2023-1025)

— Jun 07: Update on Australian foreign investment monetary thresholds for UK investors (Tax Alert 2023-1021)

— Jun 06: UK implements changes to the Expansion Worker and Service Supplier routes (Tax Alert 2023-1009)

— Jun 06: China introduces 'super-input VAT credit' policy for integrated circuit enterprises (Tax Alert 2023-1008)

— Jun 05: Costa Rican Tax Authority updates the list of cross-border digital services subject to VAT (Tax Alert 2023-1007)

— Jun 05: Australia | Update on new Register of Foreign Ownership (Tax Alert 2023-1006)

— Jun 02: Turkey's country-by-country reporting notification deadline is 3 July 2023 (Tax Alert 2023-0997)

— Jun 02: Germany to implement Single-Use Plastics levy from 2024, extending scope to certain fireworks from 2027 (Tax Alert 2023-0996)

— Jun 02: German Federal Administrative Court confirms legality of local packaging tax in city of Tübingen (Tax Alert 2023-0995)

— Jun 02: Luxembourg enacts tax transparency rules for digital platforms, makes other changes regarding administrative cooperation in tax matters (Tax Alert 2023-0990)

— Jun 01: Brazil adopts new rule on individual taxation of financial investments, controlled entities and trusts held abroad (Tax Alert 2023-0982)

— Jun 01: Denmark expands tax liability scope to include activities carried out in the Exclusive Economic Zone (Tax Alert 2023-0980)

— Jun 01: Dominican Republic Executive Branch enacts law implementing mandatory electronic invoicing (Tax Alert 2023-0976)

— Jun 01: UK announces changes to the Youth Mobility Scheme (Tax Alert 2023-0974)


— Jun 07: What to expect in Washington (June 7) (Tax Alert 2023-1016)

— Jun 02: US Senate committee approves tax convention with Chile; vote by full Senate is next (Tax Alert 2023-0992)


— Jun 06: North Dakota issues revised 2023 withholding tables reflecting personal income tax cuts passed by the state's legislature earlier this year (Tax Alert 2023-1011)

— Jun 05: Iowa governor signs omnibus tax legislation (Tax Alert 2023-1005)

IRS Weekly Wrap-Up

Final Regulations

 TD 9974Use of Actuarial Tables in Valuing Annuities, Interests for Life or a Term of Years, and Remainder or Reversionary Interests

Proposed Regulations

 REG–106228–22Malta Personal Retirement Scheme Listed Transaction


 2023-42Relief from Certain Additions to Tax for Corporation’s Underpayment of Estimated Income Tax under Section 6655

Internal Revenue Bulletin

 2023-23Internal Revenue Bulletin of June 5, 2023

Because the matters covered herein are complicated, U.S. Tax This Week should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.