SECTION 8. 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 1545-0123. 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 in this revenue procedure is under sections 4.05 and 5.03.

This information is required to allow the IRS to verify the calculations made by the RIC, and to verify the appropriate amount of gross foreign source income and foreign tax credits available to shareholders. The likely respondents are RICs that invest in foreign securities. The estimated total annual reporting recordkeeping burden is 15,000 hours. The estimated annual burden per respondent/recordkeeper is 10 hours. The estimated number of respondents/recordkeepers is 1,500.

The estimated frequency of responses is occasional.

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.

Bulletin No. 2016–6 311 February 8, 2016

Credit for Indian Coal Production and Inflation Adjustment Factor for Calendar Year 2015

Notice 2016–11

This notice publishes the inflation adjustment factor for calendar year 2015 for the Indian coal production credit under section 45 of the Internal Revenue Code. The 2015 inflation adjustment factor is used in determining the availability of the credit and applies to calendar year 2015 sales of Indian coal produced in the United States or a possession thereof. The inflation adjustment factor for Indian coal for calendar year 2015 was published in the Federal Register on January 20, 2016. Section 186 of Division Q of the Consolidated Appropriations Act, 2016 (Pub. L. No. 114–113) extends the credit period for the Indian coal production credit from a 9-year period beginning on January 1, 2006, to an 11-year period beginning on January 1, 2006. This provision is effective for coal produced in the United States or a possession thereof after December 31, 2014.

BACKGROUND

For calendar year 2015, section 45(e)(10)(A) provides in the case of a producer of Indian coal, the credit determined under section 45 for any taxable year is an amount equal to the applicable dollar amount per ton of Indian coal (i) produced by the taxpayer at an Indian coal production facility during the 11-year period beginning on January 1, 2006, and (ii) sold by the taxpayer (I) to an unrelated person, and (II) during such 11-year period and such taxable year.

Section 45(e)(10)(B)(i) defines “applicable dollar amount” for any taxable year as (I) $1.50 in the case of calendar years 2006 through 2009, and (II) $2.00 in the case of calendar years beginning after 2009.

For calendar year 2015, section 45(d)(10) provides in the case of a facility that produces Indian coal, the term “Indian coal production facility” means a facility which is placed in service before January 1, 2009.

Section 45(e)(2)(B) defines the inflation adjustment factor for a calendar year as the fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992. The term “GDP implicit price deflator” means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year. Under section 45(e)(10)(B)(ii), in the case of any calendar year after 2006, each of the dollar amounts under section 45(e)(10)(B)(i) shall be equal to the product of such dollar amount and the inflation adjustment factor determined under section 45(e)(2)(B) for the calendar year, except that section 45(e)(2)(B) shall be applied by substituting 2005 for 1992.

INFLATION ADJUSTMENT FACTOR

The inflation adjustment factor for calendar year 2015 for Indian coal production is 1.1772.

CREDIT AMOUNT FOR INDIAN COAL PRODUCTION

The credit for Indian coal production for calendar year 2015 under section 45(e)(10)(B) is $2.354 per ton on the sale of Indian coal.

DRAFTING AND CONTACT INFORMATION

The principal author of this notice is Jennifer A. Records of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice contact Ms. Records on (202) 317-6853 (not a toll-free number).

Maximum Vehicle Values for 2016 for Use With Vehicle Cents-Per-Mile and Fleet-Average Valuation Rules

Notice 2016–12

PURPOSE

This notice provides the maximum vehicle values for 2016 that taxpayers need to determine the value of personal use of employer-provided vehicles under the special valuation rules provided under section 1.61–21 (d) and (e) of the Income Tax Regulations.

MAXIMUM VEHICLE VALUES

The maximum value of employerprovided vehicles first made available to employees for personal use in calendar year 2016 for which the vehicle cents-permile valuation rule provided under Regulation section 1.61–21(e) may be applicable is $15,900 for a passenger automobile and $17,700 for a truck or van.

The maximum value of employerprovided vehicles first made available to employees for personal use in calendar year 2016 for which the fleet-average valuation rule provided under Regulation section 1.61–21(d) may be applicable is $21,200 for a passenger automobile and $23,100 for a truck or van.

EFFECTIVE DATE

This notice applies to employerprovided passenger automobiles first made available to employees for personal use in calendar year 2016.

DRAFTING INFORMATION

The principal author of this notice is Kathleen Edmondson of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities). For further information on this notice contact Ms. Edmondson on (202) 317-6798 (not a toll-free number).

February 8, 2016 312 Bulletin No. 2016–6