Notice

(ii) A detailed technical description of
the energy property placed in service during the taxable year as an integral part of
the facility, including a statement that the
property is an integral part of such facility.
(iii) The date that the energy property
was placed in service.
(iv) An accounting of the taxpayer’s basis in the energy property.
(v) A depreciation schedule reflecting
the taxpayer’s remaining basis in the energy property after the energy credit is
claimed.
(3) A statement that the taxpayer has not
and will not claim a Section 1603 Grant for
property for which the taxpayer is claiming
the energy credit.
(4) A declaration, applicable to the
statement and any accompanying documents, signed by the taxpayer, or signed
by a person currently authorized to bind
the taxpayer in such matters, in the following form:
“Under penalties of perjury, I declare
that I have examined this statement, including accompanying documents, and
to the best of my knowledge and belief,
the facts presented in support of this
statement are true, correct, and complete.”
.02 Effective Date. The election to take
the investment tax credit determined under
§ 48 in lieu of the production tax credit
under § 45 is available for facilities placed
in service after December 31, 2008.
.03 Deadline for Making Election. The
election to take the investment tax credit
determined under § 48 in lieu of the production tax credit under § 45 must be made
on a timely filed return (including extensions) for the taxable year in which facility
that is to be treated a qualified investment
credit facility is placed in service.
.04 Revocation. Section 48(a)(5)(C)
makes the election to treat a facility as a
qualified investment credit facility irrevocable.
SECTION 3. Documentation Required
In order to satisfy the recordkeeping requirements of § 6001 and the regulations
thereunder, a taxpayer that elects to claim
the investment tax credit determined under
§ 48 in lieu of the production tax credit under § 45 must retain adequate books and
records. This requirement specifically includes the statement described in section 2

2009–25 I.R.B.

of this notice, the Form 3468, and all supporting documentation relevant to the election and the taxpayer’s credit claim under
§ 48, so that, for any taxable year, the IRS
may verify that the property with respect to
which the taxpayer claimed the credit satisfies the applicable requirements of § 48
and this notice.
SECTION 4. Coordination with
Department Of Treasury Grants
Section 48(d) governs the interaction
between the investment tax credit determined under § 48 and Section 1603 Grants.
Generally, § 1603 of the Act requires the
Treasury Department to make grants to
persons who place in service specified
energy property (including certain energy
property eligible for the investment tax
credit determined under § 48 or the production tax credit under § 45). Section
48(d)(1) provides, in the case of property
with respect to which the Treasury makes
a Section 1603 Grant, that no credit may
be determined under § 48 or § 45 with
respect to such property for the taxable
year in which such grant is made or any
subsequent taxable year.
SECTION 5. Paperwork Reduction Act
The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2145.
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 collection of information is in section 2 of this notice. This information is
required to be collected and retained in order to ensure that energy property meets
the requirements for the investment tax
credit determined under § 48. This information will be used to determine whether
the property for which the energy credit is
claimed is energy property that qualifies
for the credit.
The collection of information is required to obtain a benefit.
The respondents are taxpayers providing a statement and filing a Form 3468 in
order to make the election to claim the investment tax credit determined under § 48

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in lieu of the production tax credit under
§ 45. The estimated total annual reporting
burden is 100 hours. The estimated annual
burden per respondent varies from 50 to 70
minutes, depending on individual circumstances, with an estimated average burden
of 60 minutes to complete the statement required to claim the credit. The estimated
number of respondents is 100. The estimated frequency of responses is once.
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 tax return
information are confidential, as required
by 26 U.S.C. 6103.
SECTION 6. Drafting Information
The principal author of this notice is
Jennifer C. Bernardini of the Office of
Associate Chief Counsel (Passthroughs
& Special Industries). For further information regarding this notice, contact
Jennifer C. Bernardini at (202) 622–3110
(not a toll-free call).

Nonbusiness Energy Property
Notice 2009–53
SECTION 1. PURPOSE
This notice updates interim guidance,
pending the issuance of regulations, relating to the credit for nonbusiness energy
property under § 25C of the Internal
Revenue Code. Specifically, this notice
provides procedures that manufacturers
may follow to certify property as either
eligible building envelope components or
qualified energy property, as well as guidance regarding the conditions under which
taxpayers seeking to claim the § 25C credit
may rely on a manufacturer’s certification. Additionally, this notice provides
guidance about changes made to the § 25C
credit by the Energy Improvement and
Extension Act of 2008 (EIEA), Division
B of Pub. L. No. 110–343, 122 Stat. 3765
(2008), and the American Recovery and
Reinvestment Tax Act of 2009 (ARRTA),
Division B of Pub. L. No. 111–5, 123 Stat.
115 (2009). This notice also provides transition rules for certain nonbusiness energy
property acquired before June 1, 2009, and
for certain nonbusiness energy property

June 22, 2009

placed in service after December 31, 2008.
The Internal Revenue Service (Service)
and the Treasury Department expect that
the regulations will incorporate the rules
set forth in this notice.
SECTION 2. BACKGROUND
.01 Energy Policy Act of 2005. Section
1333 of the Energy Policy Act of 2005
(EPACT), Pub. L. No. 109–58, 119 Stat.
594 (2005), added § 25C to the Internal
Revenue Code. Section 25C, as added
by EPACT, provided a credit for amounts
paid or incurred for qualified energy efficiency improvements installed during
a taxable year and for residential energy
property expenditures paid or incurred by
a taxpayer during the taxable year. Section
25C, as added by EPACT and as modified
by EIEA and ARRTA, defines qualified
energy efficiency improvements as building envelope components that satisfy
specified efficiency standards (eligible
building envelope components) and the
requirements listed in section 2.05(1) of
this notice and defines residential energy
property expenditures as expenditures for
energy property that satisfies specified
energy standards (qualified energy property) and the requirements listed in section
2.05(1) of this notice. The credit was
available for property placed in service
after December 31, 2005, and before January 1, 2008. Notice 2006–26, 2006–1
C.B. 622, as clarified by Notice 2006–53,
2006–1 C.B. 1180, provides guidance on
the credit under § 25C for property placed
in service after December 31, 2005, and
before January 1, 2008.
.02 EIEA. Section 302 of EIEA reinstated and modified the § 25C credit for
property placed in service during 2009.
Neither EPACT nor EIEA provided any
credit under § 25C for property placed in
service during 2008.
Section 25C, as amended by EIEA, provided a credit against tax for the taxable
year in an amount equal to the sum of—
(1) Ten percent of the expenditures paid
or incurred by the taxpayer for qualified
energy efficiency improvements installed
during the taxable year, and
(2) The amount of expenditures for residential energy property.
The maximum amount of credit allowed was $50 for any advanced main
air circulating fan; $150 for any qualified

June 22, 2009

natural gas, propane, or oil furnace or hot
water boiler; and $300 for any item of
energy-efficient building property. The
maximum amount of the credit allowable to a taxpayer under § 25C for all
taxable years was $500 ($200 in the case
of amounts paid or incurred for exterior
windows (including storm windows and
skylights)).
.03 EIEA Energy Efficiency Standards.
Section 25C, as amended by EIEA, and
Notice 2006–26, as clarified by Notice
2006–53, allowed a credit with respect to
the following property:
(1) Eligible Building Envelope Components.
(a) An insulation material or system (including any vapor retarder or seal to limit
infiltration) that—
(i) Is specifically and primarily designed (within the meaning of section 4.03
of this notice) to reduce heat loss or gain
of a dwelling unit when installed in or on
the dwelling unit; and
(ii) May be taken into account in determining whether the building thermal
envelope requirements established by the
International Energy Conservation Code
(IECC) are satisfied.
(b) An exterior window, skylight, or
door (other than a storm window or storm
door) that meets or exceeds the prescriptive criteria established by the IECC for
the climate zone in which the window, skylight, or door is installed.
(c) A storm window that, in combination with the exterior window over which it
is installed, meets or exceeds the prescriptive criteria established by the IECC for the
climate zone in which such storm window
is installed.
(d) A storm door that, in combination
with a wood door that is assigned a default
U factor by the IECC, does not exceed the
default U factor requirement assigned to
such combination by the IECC.
(e) Any metal roof that—
(i) has appropriate pigmented coatings
that are specifically and primarily designed to reduce the heat gain of a dwelling
unit when installed on the dwelling unit,
and
(ii) meets or exceeds either of the applicable Energy Star program requirements.
The applicable Energy Star program requirements for this purpose are those in
effect at the time the expenditures for the
roof are actually paid or incurred and those

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in effect at the time the expenditures are
treated as made under § 25D(e)(8). (See
§ 25C(e)(1), which requires the application
of rules similar to those of § 25D(e)(8) (relating to the time at which expenditures are
deemed made for purposes of the credit under § 25D)).
(f) Any asphalt roof that—
(i) has appropriate cooling granules that
are specifically and primarily designed to
reduce the heat gain of a dwelling unit
when installed on the dwelling unit, and
(ii) meets or exceeds either of the
applicable Energy Star program requirements (within the meaning of section
2.03(1)(e)(ii) of this notice).
(2) Qualified Energy Property.
(a) An electric heat pump water heater
that yields an energy factor of at least 2.0 in
the standard Department of Energy (DOE)
test procedure.
(b) An electric heat pump that has
a heating seasonal performance factor
(HSPF) of at least 9, a seasonal energy
efficiency ratio (SEER) of at least 15, and
an energy efficiency ratio (EER) of at least
13.
(c) A central air conditioner that
achieves the highest efficiency tier that
has been established by the Consortium
for Energy Efficiency, and is in effect on
January 1, 2006.
(d) A natural gas, propane, or oil water
heater that has an energy factor of at least
0.80 or a thermal efficiency of at least 90
percent.
(e) A stove that uses the burning of
biomass fuel to heat a dwelling unit or to
heat water for use in such a dwelling unit,
and that has a thermal efficiency rating of
at least 75 percent as measured using a
lower heating value.
(f) A natural gas, propane, or oil furnace
or hot water boiler that achieves an annual
fuel utilization efficiency rate of not less
than 95.
(g) A fan that is used in a natural gas,
propane, or oil furnace and has an annual
electricity use of no more than two percent of the total annual site energy use of
the furnace (as determined in the standard
DOE test procedure).
.04 ARRTA. Section 1121 of ARRTA
modified the credit under § 25C for
amounts paid or incurred in taxable years
beginning after December 31, 2008, and
extended the credit to apply to property

2009–25 I.R.B.

that is placed in service in 2009 and 2010.
Section 25C, as amended by ARRTA—
(1) Provides, with respect to property
placed in service in 2009 and 2010, a credit
against the tax imposed for the taxable year
in an amount equal to 30 percent of the sum
of—
(a) The amount paid or incurred by the
taxpayer during the taxable year for qualified energy efficiency improvements, and
(b) The amount paid or incurred by the
taxpayer during the taxable year for residential energy property expenditures;
(2) Limits the cumulative total of credits allowed for taxable years beginning
in 2009 and 2010 to $1,500 per taxpayer
(credits allowed in, and unused credit limitations from, prior years are disregarded
in applying this limitation); and
(3) Applies new energy efficiency standards for certain types of property (see sections 4.01 and 5.01 of this notice).
.05 General Provisions. Under all three
of the acts, EPACT, EIEA, and ARRTA,
the following provisions apply:
(1) Requirements to Claim the Credit.
A taxpayer may claim a credit under § 25C
with respect to amounts paid or incurred
for an item of property only if each of the
following requirements is satisfied:
(a) The item is installed in or on a
dwelling unit located in the United States
and, at the time of installation, the dwelling
unit is owned and used by the taxpayer as
the taxpayer’s principal residence (within
the meaning of § 121). Thus, the credit
is only available for existing homes. See
§ 45L for the credit applicable to new
homes.
(b) The original use of the item commences with the taxpayer.
(c) In the case of a building envelope
component described in section 2.03(1) or
4.01 of this notice, the component reasonably can be expected to remain in use for at
least five years. For this purpose, a component will be treated as reasonably expected
to remain in use for at least five years if
the manufacturer offers, at no extra charge,
at least a two-year warranty providing for
repair or replacement of the component in
the event of a defect in materials or workmanship. If the manufacturer does not offer such a warranty, all relevant facts and
circumstances are taken into account in determining whether the component reasonably can be expected to remain in use for
at least five years.

2009–25 I.R.B.

(2) Time of Expenditure. The credit is
allowed for amounts paid or incurred by
the taxpayer during the taxable year. Section 25C(e)(1) incorporates § 25D(e)(8),
relating to the time expenditures are
treated as made. Accordingly, except as
provided in section 2.03(1)(e) and (f) of
this notice, expenditures will be treated as
made for purposes of § 25C when the original installation of the property is complete
or, in the case of reconstruction, when the
original use of the reconstructed property
begins.
SECTION 3. REFERENCES TO
THE INTERNATIONAL ENERGY
CONSERVATION CODE
Manufacturers and taxpayers may treat
any reference in this notice to the International Energy Conservation Code (IECC)
as a reference to (1) the 2001 Supplement
of the 2000 International Energy Conservation Code, (2) the 2004 Supplement of
the 2003 International Energy Conservation Code, or (3) the 2009 International
Energy Conservation Code (2009 IECC).
However, a reference to the 2009 IECC is
a reference only to the 2009 International
Energy Conservation Code.
SECTION 4. ELIGIBLE BUILDING
ENVELOPE COMPONENTS
.01 Under ARRTA, an eligible building
envelope component for a taxable year beginning after December 31, 2008, is a component that is placed in service on or before
February 17, 2009, and is described in section 2.03(1) of this notice or a component
that is placed in service after February 17,
2009, and is described below:
(1) Insulation Material or System. An
insulation material or system (including
any vapor retarder or seal to limit infiltration) that—
(a) Is specifically and primarily designed (within the meaning of section 4.03
of this notice) to reduce heat loss or gain
of a dwelling unit when installed in or on
the dwelling unit; and
(b) Meets the prescriptive criteria for
such material or system established by the
2009 IECC, as such Code (including supplements) was in effect on February 17,
2009.
(2) Exterior Window, Skylight, or Door.
An exterior window, skylight, or door

1097

(other than a storm window or storm door)
that—
(a) Has a U factor and Solar Heat Gain
Coefficient (SHGC) of 0.30 or below; and
(b) Meets the prescriptive criteria for
such component established by the IECC.
(3) Storm Window. A storm window
that, in combination with the exterior window over which it is installed—
(a) Has a U factor and SHGC of 0.30 or
below; and
(b) Meets the prescriptive criteria for
such component established by the IECC.
(4) Storm Door. A storm door that, in
combination with the exterior door over
which it is installed—
(a) Has a U factor and SHGC of 0.30 or
below; and
(b) Meets the prescriptive criteria for
such component established by the IECC.
(5) Metal Roof. Any metal roof described in section 2.03(1)(e) of this notice (ARRTA did not change the efficiency
standard for a metal roof).
(6) Asphalt Roof. Any asphalt roof described in section 2.03(1)(f) of this notice (ARRTA did not change the efficiency
standard for an asphalt roof).
.02 Installation Costs. With respect
to eligible building envelope components,
the credit is allowed only for amounts paid
or incurred to purchase the components.
The credit is not allowed for amounts paid
or incurred for the onsite preparation, assembly, or original installation of the components.
.03 Specifically and Primarily Designed. A component is not specifically
and primarily designed to reduce heat loss
or gain of a dwelling unit if it provides
structural support or a finished surface,
as in the case of drywall or siding. In
addition, a component is not specifically
and primarily designed to reduce heat loss
or gain of a dwelling unit if its principal
purpose is to serve any function unrelated
to the reduction of heat loss or gain. For
purposes of the preceding sentence, the
principal purpose of a component is to
serve functions unrelated to the reduction
of heat loss or gain if—
(1) Production costs attributable to features other than those that reduce heat loss
or gain exceed production costs attributable to features that reduce heat loss or
gain; or
(2) The facts and circumstances otherwise establish that the component’s prin-

June 22, 2009

cipal purpose is to serve a function other
than the reduction of heat loss or gain.
SECTION 5. QUALIFIED ENERGY
PROPERTY
.01 Under ARRTA, qualified energy
property for a taxable year beginning after
December 31, 2008, is property that is
placed in service on or before February 17,
2009, and is described in section 2.03(2)
of this notice or property that is placed
in service after February 17, 2009, and is
described below:
(1) Electric Heat Pump Water Heater.
An electric heat pump water heater described in section 2.03(2)(a) of this notice (ARRTA did not change the efficiency
standard for an electric heat pump water
heater).
(2) Electric Heat Pump. An electric
heat pump that achieves the highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1, 2009.
(3) Central Air Conditioner. A central
air conditioner that achieves the highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1, 2009.
(4) Natural Gas, Propane, or Oil Water Heater. A natural gas, propane, or oil
water heater that has an energy factor of at
least 0.82 or a thermal efficiency of at least
90 percent.
(5) Biomass-Burning Stove.
A
biomass-burning stove described in section 2.03(2)(e) of this notice (the retroactive clarifying change ARRTA made to the
efficiency standard for a stove that burns
biomass is reflected in section 2.03(2)(e)).
(6) Natural Gas Furnace. A natural
gas furnace described in section 2.03(2)(f)
of this notice (ARRTA did not change the
efficiency standard for a natural gas furnace).
(7) Natural Gas Hot Water Boiler. A
natural gas hot water boiler that achieves
an annual fuel utilization efficiency rate of
not less than 90.
(8) Propane Furnace. A propane furnace described in section 2.03(2)(f) of this
notice (ARRTA did not change the efficiency standard for a propane furnace).
(9) Propane Hot Water Boiler. A
propane hot water boiler that achieves an
annual fuel utilization efficiency rate of
not less than 90.

June 22, 2009

(10) Oil Furnace. An oil furnace that
achieves an annual fuel utilization efficiency rate of not less than 90.
(11) Oil Hot Water Boiler. An oil hot
water boiler that achieves an annual fuel
utilization efficiency rate of not less than
90.
(12) Advanced Main Air Circulating
Fan. A fan described in section 2.03(2)(g)
of this notice (ARRTA did not change the
efficiency standard for a fan).
.02 Installation Costs. For qualified energy property, the credit is allowed only for
amounts paid or incurred to purchase qualified energy property and for expenditures
for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.
.03 Natural Gas, Propane, or Oil Furnace with an Advanced Main Air Circulating Fan. If a natural gas, propane, or
oil furnace is qualified energy property, the
entire amount paid or incurred to purchase
and install the furnace, including any costs
attributable to the furnace’s main air circulating fan, are taken into account in determining the amount of the credit under
§ 25C. If the furnace is not qualified energy
property, but the furnace’s main air circulating fan is qualified energy property, only
the amount paid or incurred to purchase
and install the fan are taken into account in
determining the amount of the credit under
§ 25C. In such a case—
(1) The amount paid or incurred to purchase and install the main air circulating
fan may be determined by any method that
reasonably allocates costs between the fan
and other components of the furnace;
(2) The manufacturer of the furnace
may determine, using any reasonable
method, the percentage of the cost of the
furnace that is allocable to the fan and
inform taxpayers of the percentage in the
certification it provides under section 6 of
this notice; and
(3) A taxpayer may treat this percentage
of the total amount paid or incurred to purchase and install the furnace as the amount
paid or incurred to purchase and install the
advanced main air circulating fan.
.04 Geothermal Heat Pump Property.
The credit under § 25D for geothermal
heat pump property expenditures in taxable years beginning after December 31,
2007, is described in Notice 2009–41,
2009–19 I.R.B. 933.

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SECTION 6. MANUFACTURER’S
CERTIFICATION
.01 Requirements Applicable to Manufacturer. The manufacturer of a building
envelope component or energy property
may certify to a taxpayer that the component is an eligible building envelope component or that the energy property is qualified energy property by providing the taxpayer with a certification statement that
satisfies the requirements of sections 6.04,
6.05 and 6.06 of this notice. The certification statement may be provided by including a written copy of the statement with the
packaging of the component or property, in
printable form on the manufacturer’s website, or in any other manner that will permit the taxpayer to retain the certification
statement for tax recordkeeping purposes.
.02 Taxpayer Reliance. Except as provided in sections 6.03 and 6.08 of this
notice, a taxpayer may rely on a manufacturer’s certification that a building envelope component is an eligible building
envelope component or that energy property is qualified energy property. A taxpayer is not required to attach the certification statement to the return on which the
credit is claimed. However, § 1.6001–1(a)
of the Income Tax Regulations requires
that a taxpayer maintain such books and
records as are sufficient to establish the
entitlement to, and amount of, any credit
claimed by the taxpayer. Accordingly, a
taxpayer claiming a credit for an eligible
building envelope component or qualified
energy property should retain the certification statement as part of the taxpayer’s
records for purposes of § 1.6001–1(a).
.03 Reliance Permitted Only for Installation Consistent with Certification. A taxpayer may rely on a manufacturer’s certification in the case of a building envelope
component only if the building envelope
component is installed in a manner that is
consistent with the manufacturer’s certification. For example, in the case of a storm
window (or door), a taxpayer may rely
on the manufacturer’s certification only if
the component is installed over an exterior window (or door) of a class identified
in the certification statement as one which
in combination with the storm window (or
door) has a U factor and SHGC of 0.30 or
below.
.04 Content of Manufacturer’s Certification; Required Information. A manufac-

2009–25 I.R.B.

turer’s certification must contain the following information:
(1) The name and address of the manufacturer.
(2) Identification of the class of eligible
building envelope component as listed in
section 4.01 of this notice or the class of
qualified energy property as listed in section 5.01 of this notice in which the component or property is included.
(3) The make, model number, and any
other appropriate identifiers of the component or property.
(4) A statement that the component is
an eligible building envelope component
as defined in section 4.01 of this notice
or the property is qualified energy property as defined in section 5.01 of this notice. In the case of a certification provided
after June 1, 2009, this statement may be
provided only for components that are eligible building envelope components and
property that is qualified energy property
under the rules applicable to components
and property placed in service after February 17, 2009.
.05 Content of Manufacturer’s Certification; Specific Information. A manufacturer’s certification statement must contain
any of the following statements that are applicable:
(1) In the case of an exterior window,
skylight, or door (other than a storm window or storm door), a statement that the
exterior window, skylight, or door has a U
factor and SHGC of 0.30 or below.
(2) In the case of a storm window, the
classes of exterior window (e.g., single
pane; double pane, clear glass; double
pane, Low-E coating) over which the
storm window may be installed and that,
in combination with the storm window,
will have a U factor and SHGC of 0.30 or
below.
(3) In the case of a storm door, the
classes of exterior door (e.g., 1–3/4” insulated steel, 50 percent or less glazing, double pane, clear glass) over which the storm
door may be installed and that, in combination with the storm door, will have a U
factor and SHGC of 0.30 or below.
.06 Content of Manufacturer’s Certification; Required Declaration.
A manufacturer’s certification statement must contain a declaration, signed
by a person currently authorized to bind
the manufacturer in these matters, in the
following form:

2009–25 I.R.B.

“Under penalties of perjury, I declare
that I have examined this certification
statement, and to the best of my knowledge and belief, the facts are true, correct,
and complete.”
.07 Manufacturer’s Records. A manufacturer that certifies to a taxpayer that a
component is an eligible building envelope
component or that property is qualified energy property must retain in its records
documentation establishing that the component or property satisfies the applicable
conditions of section 4.01 or 5.01 of this
notice. In the case of an exterior window,
the manufacturer must retain a record of its
National Fenestration Rating Council rating. If a manufacturer certifies the percentage of the cost of the furnace allocable to
an advanced main air circulating fan, the
manufacturer must maintain in its records
the basis for such allocation. The manufacturer must, upon request, make such
documentation available for inspection by
the Service.
.08 Effect of Erroneous Certification or
Failure to Satisfy Documentation Requirements. The Service may, upon examination (and after any appropriate consultation with the DOE or Environmental Protection Agency (EPA)), determine that a
component that has been certified under
this section is not an eligible building envelope component or that property that
has been certified under this section is not
qualified energy property. In that event, or
if the manufacturer of the component or
property fails to satisfy the requirements
relating to documentation in section 6.07
of this notice, the manufacturer’s right to
provide a certification on which future purchasers of the component or property can
rely will be withdrawn, and taxpayers purchasing the component or property after
the date on which the Service publishes an
announcement of the withdrawal may not
rely on the manufacturer’s certification.
Taxpayers may continue to rely on the certification for a component or property purchased on or before the date on which the
announcement of the withdrawal is published (including in cases in which the
component or property is not installed and
the credit is not claimed until after the
announcement of the withdrawal is published). Manufacturers are reminded that
an erroneous certification statement may
result in the imposition of penalties—

1099

(1) Under § 7206 for fraud and making
false statements; and
(2) Under § 6701 for aiding and abetting an understatement of tax liability (in
the amount of $1,000 per return on which
a credit is claimed in reliance on the certification).
.09 Availability of Certification Information. Manufacturers are encouraged to
provide a listing of eligible building envelope components and qualified energy
property and applicable certification information on their websites to facilitate taxpayer identification of qualified components and energy property.
.10 Special Rule for Energy Star. The
Energy Star label designates that the product has met energy efficiency guidelines
set by the EPA and the DOE. Not all
Energy Star labeled building envelope
components qualify for the tax credit under § 25C. The component must meet the
definition of an eligible building envelope
component in § 25C. Taxpayers can no
longer rely on an Energy Star label in
claiming the § 25C credit for exterior windows and skylights placed in service after
the enactment of the ARRTA. Similarly,
an Energy Star label does not establish
that a product is qualified energy property.
The product must meet the definition of
qualified energy property in § 25C.
SECTION 7. EFFECTIVE DATES AND
TRANSITION RULES.
.01 For amounts that are paid or incurred in taxable years beginning after December 31, 2008, with respect to property
placed in service in calendar years 2009
and 2010, including amounts paid or incurred for property placed in service before February 18, 2009, the credit is computed in accordance with sections 2.04(1)
and (2) of this notice.
.02 The efficiency standards listed for
EIEA in section 2.03 of this notice apply
to property placed in service before February 18, 2009, and the efficiency standards
listed for ARRTA in sections 4.01 and 5.01
of this notice apply to property placed in
service after February 17, 2009.
.03 In the case of amounts paid or incurred before June 1, 2009, for property
placed in service after February 17, 2009,
taxpayers may rely on:
(1) An Energy Star label for exterior
windows and skylights, rather than on a

June 22, 2009

manufacturer’s certification statement, in
claiming the § 25C credit, if the window or
skylight is installed in the region identified
on the label;
(2) A manufacturer’s certification issued before February 18, 2009, that is
made in accordance with Notice 2006–26,
as clarified by Notice 2006–53; or
(3) A manufacturer’s certification made
in accordance with the procedures of
Notice 2006–26, as clarified by Notice
2006–53, for certifications issued after
February 17, 2009, provided that the manufacturer’s certification statement clearly
indicates that the item complies with the
efficiency standards contained in ARRTA.
.04 For amounts that are paid or incurred in taxable years beginning before
December 31, 2008, with respect to property placed in service in calendar year
2009, the credit is computed in accordance
with section 2.02 of this notice.

depending on individual circumstances,
with an estimated average burden of 2.5
hours to complete the requests for certification required under this notice. The
estimated number of respondents is 140.
The estimated annual frequency of responses 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 tax return
information are confidential, as required
by 26 U.S.C. 6103.

SECTION 8. PAPERWORK
REDUCTION ACT

SECTION 10. DRAFTING
INFORMATION

The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–1989.
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 section 6. This information
is required to be collected and retained
in order to ensure that property meets the
requirements for the nonbusiness energy
credit under § 25C. This information will
be used to determine whether the property for which manufacturers provide certifications is property that qualifies for the
credit. The collection of information is required to obtain a benefit from manufacturers’ certification statements that property
qualifies for the credit. The likely respondents are corporations, partnerships, and
individuals.
The estimated total annual reporting
burden is 350 hours.
The estimated annual burden per respondent varies from 2 hours to 3 hours,

The principal author of this notice is
Martha S. McRee of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information
regarding this notice, contact Ms. McRee
at (202) 622–3110 (not a toll-free call).

June 22, 2009

SECTION 9. EFFECT ON OTHER
DOCUMENTS
This notice supersedes Notice 2006–26,
as clarified by Notice 2006–53, which was
modified by Notice 2006–71, 2006–2 C.B.
316.

Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2009–56
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in effect for plan years beginning before 2008.
It also provides guidance on the corporate bond monthly yield curve (and the
corresponding spot segment rates), the
24-month average segment rates, and
the funding transitional segment rates
under § 430(h)(2). In addition, this notice provides guidance as to the interest
rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the

1100

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.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections
412(b)(5)(B)(ii)
and
412(l)(7)(C)(i), as amended by the Pension Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to calculate current liability and to determine
the required contribution under § 412(l)
for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conservatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, provides guidelines for determining the corporate bond weighted average interest rate
and the resulting permissible range of interest rates used to calculate current liability. That notice establishes that the corporate bond weighted average is based on the
monthly composite corporate bond rate derived from designated corporate bond indices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
May 2009 is 6.95 percent. Pursuant to Notice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond indices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.

2009–25 I.R.B.