[Federal Register Volume 89, Number 36 (Thursday, February 22, 2024)]
[Proposed Rules]
[Pages 13293-13294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03632]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-132569-17]
RIN 1545-BO40


Definition of Energy Property and Rules Applicable to the Energy 
Credit; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking; correction.

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SUMMARY: This document corrects a notice of proposed rulemaking (REG-
132569-17) published in the Federal Register on November 22, 2023, 
containing proposed regulations that would amend the regulations 
relating to the energy credit for the taxable year in which eligible 
energy property is placed in service.

DATES: The comment period for REG-132569-17 (88 FR 82188, November 22, 
2023) is reopened, and additional written or electronic comments must 
be received by March 25, 2024.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at https://www.regulations.gov (indicate IRS and 
REG-132569-17). Once submitted to the Federal eRulemaking Portal, 
comments cannot be edited or withdrawn. The Department of the Treasury 
(Treasury Department) and the IRS will publish for public availability 
any comment submitted to its public docket.
    Send paper submissions to: CC:PA:LPD:PR (REG-132569-17), Room 5203, 
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Office of Associate Chief Counsel (Passthroughs & Special Industries) 
at (202) 317-6853 (not a toll-free number); concerning submissions of 
comments, Vivian Hayes, (202) 317-6901 (not toll-free number) or by 
email to [email protected] (preferred).

SUPPLEMENTARY INFORMATION:

Background

    The notice of proposed rulemaking (REG-132569-17) that is the 
subject of this correction proposes regulations under section 48 of the 
Internal Revenue Code (Code) (Proposed Regulations) addressing the 
energy credit determined under section 48 for purposes of

[[Page 13294]]

sections 38 and 46 of the Code. The Proposed Regulations address the 
treatment of certain gas upgrading equipment in a manner that warrants 
a correction.

Need for Correction

    As published, the Proposed Regulations would exclude from the 
definition of ``qualified biogas property'' any ``gas upgrading 
equipment necessary to concentrate the gas into the appropriate mixture 
for injection into a pipeline through removal of other gases such as 
carbon dioxide, nitrogen, or oxygen.'' See proposed Sec.  1.48-
9(e)(11)(i). Proposed Sec.  1.48-9(f)(1) would provide, however, that 
property owned by the taxpayer that is an integral part of an energy 
property (as defined in proposed Sec.  1.48-9(f)(3)) is treated as 
energy property. A correction is needed to clarify that gas upgrading 
equipment that is necessary to concentrate the gas from qualified 
biogas property into the appropriate mixture for injection into a 
pipeline through removal of other gases such as carbon dioxide, 
nitrogen, or oxygen, would be energy property if it is an integral part 
of an energy property as defined in proposed Sec.  1.48-9(f)(3).

Correction of Publication

    Accordingly, the publication of the Proposed Regulations, which was 
the subject of FR Doc. 2023-25539, is corrected by revising the 
following sentence on page 82214, in the second column and before the 
first full paragraph: ``However, gas upgrading equipment necessary to 
concentrate the gas into the appropriate mixture for injection into a 
pipeline through removal of other gases such as carbon dioxide, 
nitrogen, or oxygen is not included in qualified biogas property.'' 
This sentence should be revised to read as follows: ``However, gas 
upgrading equipment necessary to concentrate the gas into the 
appropriate mixture for injection into a pipeline through removal of 
other gases such as carbon dioxide, nitrogen, or oxygen is not a 
functionally interdependent component (as defined in paragraph 
(f)(2)(ii) of this section) of qualified biogas property.''

Oluwafunmilayo A. Taylor,
Section Chief, Publications and Regulations Section, Associate Chief 
Counsel, Procedure and Administration.
[FR Doc. 2024-03632 Filed 2-21-24; 8:45 am]
BILLING CODE 4830-01-P