Rev. Rul. 2023-3

This revenue ruling provides various prescribed rates for federal income tax

purposes for February 2023 (the current month). Table 1 contains the shortterm, 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 appropri

ate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

REV. RUL. 2023-3 TABLE 1 Applicable Federal Rates (AFR) for February 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 4.47% 4.42% 4.40% 4.38% 110% AFR 4.92% 4.86% 4.83% 4.81% 120% AFR 5.37% 5.30% 5.27% 5.24% 130% AFR 5.83% 5.75% 5.71% 5.68% Mid-term AFR 3.82% 3.78% 3.76% 3.75% 110% AFR 4.20% 4.16% 4.14% 4.12% 120% AFR 4.59% 4.54% 4.51% 4.50% 130% AFR 4.97% 4.91% 4.88% 4.86% 150% AFR 5.75% 5.67% 5.63% 5.60% 175% AFR 6.73% 6.62% 6.57% 6.53% Long-term AFR 3.86% 3.82% 3.80% 3.79% 110% AFR 4.24% 4.20% 4.18% 4.16% 120% AFR 4.63% 4.58% 4.55% 4.54% 130% AFR 5.03% 4.97% 4.94% 4.92%

REV. RUL. 2023-3 TABLE 2 Adjusted AFR for February 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 3.39% 3.36% 3.35% 3.34% Mid-term adjusted AFR 2.89% 2.87% 2.86% 2.85% Long-term adjusted AFR 2.92% 2.90% 2.89% 2.88%

February 6, 2023 448 Bulletin No. 2023–6

REV. RUL. 2023-3 TABLE 3 Rates Under Section 382 for February 2023 Adjusted federal long-term rate for the current month 2.92% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal 3.29% long-term rates for the current month and the prior two months.)

REV. RUL. 2023-3 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for February 2023 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit 7.89% Appropriate percentage for the 30% present value low-income housing credit 3.38%

REV. RUL. 2023-3 TABLE 5 Rate Under Section 7520 for February 2023 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

4.60%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted applicable federal long-term rate is set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 467.—Certain Payments for the Use of Property or Services

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The applicable federal short-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 482.—Allocation of Income and Deductions Among Taxpayers

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 483.—Interest on Certain Deferred Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Section 7872.—Treatment of Loans With Below- Market Interest Rates

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2023. See Rev. Rul. 2023-3, page 448.

Bulletin No. 2023–6 449 February 6, 2023