Daily Tax Update - October 25, 2013: House - Senate Budget Conference to Convene This Week

House - Senate Budget Conference to Convene This Week:  On Wednesday, the first public meeting of the 29 members of the budget conference will take place.  Senate Budget Committee Chair Patty Murray and House Budget Committee Chair Paul Ryan will lead the conference to negotiate a broader compromise on spending and deficit reduction.  The group has until December 13 to come up with a report of recommendations for the House and Senate to prevent another government shutdown in January.  Both the House and Senate have passed divergent versions of Fiscal Year 2014 budgets.  The bipartisan budget conference committee was part of the agreement between Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell that reopened the government and raised the debt ceiling.

Rep. Ryan said, “Let’s understand what we’re doing here, we’re going back to regular order. This is the budget process. . . . This is how the founders envisioned the budget process. We want to get back to that.  We haven’t had a budget conference since 2009 and we so think it’s high time we start talking together trying to reconcile our differences.  It’s premature to get into exactly how we’re going to do that.”

Sen. Murray said last week, “It’s going to be a challenge but we believe we can find common ground.”

Miscellaneous Guidance:
Announcement 2013-43 discloses the results of the 2012-13 allocation round under the qualifying advanced coal project program of § 48A of the Internal Revenue Code.

Notice 2013-66 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), and the 24-month average 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 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.  The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112-141 (MAP-21).

Notice 2013-68 updates interim guidance contained in Notice 2006-40, relating to the credit under § 45J of the Internal Revenue Code for production of electricity at advanced nuclear power facilities.  Specifically, this notice modifies the application process by which taxpayers may request an allocation of the national megawatt capacity limitation, describes the consultation between the IRS and the Department of Energy concerning these applications, and specifies the method that will be used to allocate the national megawatt capacity limitation that limits the allowable credit.  This notice supersedes Notice 2006-40.