Section 1274.—Determina- tion of Issue Price in the Case of Certain Debt Instruments…

(Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.)

Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 1274, 1288, and other sections of the Code, tables set forth the rates for September 2003.

REV. RUL. 2003–101 TABLE 1

Rev. Rul. 2003–101

This revenue ruling provides various prescribed rates for federal income tax purposes for September 2003 (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)(2) for buildings placed in service during the current month. Finally, Table 5 contains the federal rate for determining the present value of annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

Applicable Federal Rates (AFR) for September 2003

Period for Compounding

Annual Semiannual Quarterly Monthly Short-Term

AFR 1.52% 1.51% 1.51% 1.51% 110% AFR 1.67% 1.66% 1.66% 1.65% 120% AFR 1.82% 1.81% 1.81% 1.80% 130% AFR 1.97% 1.96% 1.96% 1.95%

Mid-Term

AFR 3.43% 3.40% 3.39% 3.38% 110% AFR 3.77% 3.74% 3.72% 3.71% 120% AFR 4.12% 4.08% 4.06% 4.05% 130% AFR 4.47% 4.42% 4.40% 4.38% 150% AFR 5.17% 5.10% 5.07% 5.05% 175% AFR 6.04% 5.95% 5.91% 5.88%

September 8, 2003 513 2003-36 I.R.B.

REV. RUL. 2003–101 TABLE 1

Applicable Federal Rates (AFR) for September 2003 (Con’t)

Period for Compounding

Annual Semiannual Quarterly Monthly Long-Term

AFR 5.08% 5.02% 4.99% 4.97% 110% AFR 5.60% 5.52% 5.48% 5.46% 120% AFR 6.11% 6.02% 5.98% 5.95% 130% AFR 6.64% 6.53% 6.48% 6.44%

REV. RUL. 2003–101 TABLE 2

Adjusted AFR for September 2003

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted AFR

1.25% 1.25% 1.25% 1.25%

Mid-term adjusted AFR 2.92% 2.90% 2.89% 2.88%

Long-term adjusted AFR

4.65% 4.60% 4.57% 4.56%

REV. RUL. 2003–101 TABLE 3

Rates Under Section 382 for September 2003

Adjusted federal long-term rate for the current month 4.65%

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.)

REV. RUL. 2003–101 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for September 2003

4.65%

Appropriate percentage for the 70% present value low-income housing credit 7.99%

Appropriate percentage for the 30% present value low-income housing credit 3.42%

REV. RUL. 2003–101 TABLE 5

Rate Under Section 7520 for September 2003

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 4.2%

2003-36 I.R.B. 514 September 8, 2003