The 2025-36 Internal Revenue Bulletin (IRB), published on September 2, 2025, serves as the official document for IRS announcements, including Revenue Rulings, Revenue Procedures, and administrative notices. Its primary focus is providing the Applicable Federal Rates (AFR) for September 2025 and updated guidance on clean energy tax credits under the Inflation Reduction Act. Tax professionals and business entities use this bulletin to determine interest rates for private loans, evaluate eligibility for low-income housing tax credits, and ensure compliance with evolving environmental tax regulations.
The Role of the Internal Revenue Bulletin in Federal Tax Law
The Internal Revenue Bulletin (IRB) is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the IRS. It is published weekly and contains a variety of documents that have substantial legal weight. For the tax year 2025, these bulletins have been particularly dense due to the continued implementation of the SECURE 2.0 Act and various green energy initiatives.
It is important to distinguish the IRB from the Internal Revenue Code (IRC). While the IRC is the statutory law passed by Congress, the IRB contains the Treasury Department’s interpretation and implementation strategies for that law. The 2025-36 issue is specifically categorized under the third quarter of the 2025 calendar year, making it a pivotal document for year-end tax planning and the calculation of interest-sensitive financial instruments.
When the IRS issues a Revenue Ruling within an IRB, it represents an official interpretation of the law as applied to a specific set of facts. Taxpayers can generally rely on these rulings to determine how the IRS will treat similar transactions. The 2025-36 bulletin continues this tradition by clarifying the technicalities of interest rates and administrative compliance.
Revenue Ruling 2025-16: September 2025 Applicable Federal Rates
The most significant component of the 2025-36 Internal Revenue Bulletin is Revenue Ruling 2025-16. This ruling provides the various prescribed rates for federal income tax purposes for September 2025. These rates, known as Applicable Federal Rates (AFR), are crucial for determining the minimum interest that must be charged on loans between related parties to avoid "imputed interest" issues under Section 7872 of the Internal Revenue Code.
Short-Term, Mid-Term, and Long-Term Rates
The AFRs are divided into three tiers based on the length of the debt instrument:
- Short-Term Rates: Apply to debt instruments with a term of three years or less.
- Mid-Term Rates: Apply to debt instruments with a term over three years but not over nine years.
- Long-Term Rates: Apply to debt instruments with a term exceeding nine years.
In the context of 2025, these rates remained a focal point for estate planners and corporate treasurers. Because the economic environment of 2025 saw fluctuations in inflation and Federal Reserve policy, the September rates provided in this bulletin served as a benchmark for intra-family loans and installment sales. If a taxpayer provides a loan to a family member at a rate lower than the AFR published in IRB 2025-36, the IRS may treat the difference as a taxable gift.
The Section 7520 Rate
Revenue Ruling 2025-16 also includes the Section 7520 rate, which is set at 120% of the applicable federal mid-term rate. This specific rate is used to value annuities, life estates, remainders, and reversions. In September 2025, this rate was particularly relevant for taxpayers setting up Grantor Retained Annuity Trusts (GRATs) or Charitable Lead Trusts (CLTs). A higher 7520 rate generally benefits taxpayers creating Charitable Remainder Trusts, while a lower rate is more favorable for GRATs.
Notice 2025-63: Guidance on Clean Electricity Credits
A major administrative update found in the 2025-36 bulletin is Notice 2025-63. This notice addresses the Section 45Y clean electricity production credit and the Section 48E clean electricity investment credit. These "tech-neutral" credits were designed to replace older, technology-specific energy credits (like the traditional wind and solar credits) for facilities placed in service after December 31, 2024.
Eligibility and Greenhouse Gas (GHG) Emissions
Notice 2025-63 provides the methodology for determining whether a facility’s greenhouse gas emissions rate is not greater than zero. This is a prerequisite for claiming the full value of the clean electricity credits. The 2025-36 bulletin outlines the specific life-cycle analysis (LCA) models that the IRS and the Department of Energy (DOE) accept for these calculations.
For developers and investors, this guidance was essential for verifying that new projects—ranging from advanced nuclear reactors to geothermal plants—met the "zero-emissions" threshold. The notice also details the record-keeping requirements for taxpayers to substantiate their claims during a potential audit.
Prevailing Wage and Apprenticeship Requirements
Like many other credits introduced or expanded by the Inflation Reduction Act, the credits discussed in Notice 2025-63 are subject to strict labor standards. To receive the "increased credit amount" (which is five times the base amount), taxpayers must ensure that laborers and mechanics are paid prevailing wages and that a certain percentage of the work is performed by qualified apprentices. IRB 2025-36 reiterates the penalties for non-compliance and the "cure" payments required to rectify labor standard violations.
Summary of Key Provisions in IRB 2025-36
To better understand the diverse range of information contained in this specific bulletin, the following table summarizes the primary items and their regulatory impact.
| Document Type | Identifier | Primary Subject Matter | Target Audience |
|---|---|---|---|
| Revenue Ruling | 2025-16 | Sept 2025 Applicable Federal Rates (AFR) | Estate Planners, Lenders, Corporate Finance |
| Notice | 2025-63 | Section 45Y/48E Clean Electricity Guidance | Energy Developers, Tax Equity Investors |
| Notice | 2025-64 | Low-Income Housing Credit (Section 42) | Real Estate Developers, Housing Agencies |
| Announcement | 2025-13 | Revocation of 501(c)(3) Status | Non-profit Donors, Compliance Officers |
| Notice | 2025-65 | Section 45W Qualified Commercial Clean Vehicles | Fleet Operators, Auto Dealerships |
Notice 2025-64: Low-Income Housing Tax Credit (LIHTC) Updates
The 2025-36 Internal Revenue Bulletin also includes Notice 2025-64, which provides the 2025 population figures used to calculate the state ceiling for the Low-Income Housing Tax Credit under Section 42 and the private activity bond volume cap under Section 146.
These figures are critical for state housing agencies that allocate tax credits to developers of affordable housing. Because the credit amount is tied to state population, the release of these official figures in late 2025 allowed states to finalize their Qualified Allocation Plans (QAPs) for the upcoming year. For developers, Notice 2025-64 represents the "starting gun" for the 2026 application cycle, as it defines the total pool of available tax incentives in each jurisdiction.
Administrative Announcements and Tax-Exempt Status
Announcement 2025-13, contained within this bulletin, lists organizations that have failed to meet the requirements of Section 501(c)(3) and have consequently had their tax-exempt status revoked. This is a routine but vital section of the IRB.
For donors, this announcement is a "buyer beware" notice. Contributions made to the organizations listed in Announcement 2025-13 after the publication date are generally not deductible as charitable contributions. However, if a donor made a contribution before the publication of the bulletin and was unaware of the revocation, the deduction may still be allowed under certain "reliance" rules. Professional tax preparers use these announcements to scrub their clients' charitable gift lists for potential compliance issues.
Strategic Tax Planning with IRB 2025-36
From a 2026 perspective looking back, the 2025-36 bulletin was a turning point for several year-end strategies. Taxpayers who were in the process of negotiating business sales or large real estate transfers in late 2025 used the rates in Revenue Ruling 2025-16 to lock in interest rates before any potential Q4 shifts.
Intra-Family Loans
One of the most common uses of the 2025-36 bulletin was for "frozen" interest rate loans. By using the September 2025 AFR, parents could lend money to children for home purchases or business startups at a significantly lower rate than commercial banks were offering at the time. As long as the interest charged was at least equal to the rate published in this IRB, the IRS would not impute interest or treat the transaction as a disguised gift.
Clean Energy Transitions
For the energy sector, Notice 2025-63 provided the necessary clarity to move projects from the "planning" phase to the "construction" phase. With the 2025 transition to tech-neutral credits, many companies were hesitant to break ground without the specific LCA (Life Cycle Analysis) guidance provided in this bulletin. The 2025-36 IRB essentially bridged the gap between the old regulatory framework and the new, incentive-heavy landscape of the late 2020s.
Frequently Asked Questions
What is the significance of the publication date for IRB 2025-36?
The publication date of September 2, 2025, is legally significant because it marks the date on which taxpayers are considered to have "constructive notice" of the IRS positions contained within. For instance, the revocation of tax-exempt status for organizations in Announcement 2025-13 becomes effective for public knowledge on this date, affecting the deductibility of future donations.
How does Revenue Ruling 2025-16 affect existing loans?
Revenue Ruling 2025-16 generally does not affect loans that were already in existence before September 2025, provided those loans had a fixed interest rate. However, for variable-rate loans that are tied to the AFR, or for new debt instruments issued during the month of September, the rates in this ruling are the mandatory minimums required by the IRS.
Can I use the rates in 2025-36 for October 2025 transactions?
Generally, no. Each month, the IRS releases a new Revenue Ruling with updated AFRs based on the average market yield of outstanding marketable obligations of the United States. While the 2025-36 bulletin provides the rates for September, a subsequent bulletin (likely 2025-40 or similar) would provide the rates for October. Taxpayers must use the rates corresponding to the month in which the transaction or loan agreement is executed.
Where can I find the full text of Notice 2025-63?
The full text is available on the official IRS website under the "Retirement Plans" or "Tax Pros" sections, specifically within the Internal Revenue Bulletin index. You can search for "2025-36" to access the entire PDF or web version of the bulletin.
What happens if an organization is listed in Announcement 2025-13?
If an organization is listed, it means they are no longer recognized as a 501(c)(3) tax-exempt entity. They are now subject to federal income tax, and donors can no longer claim a tax deduction for gifts made to them. The organization may appeal this decision, but the announcement serves as the official public record of their current status.
How do the clean energy credits in this bulletin affect small businesses?
While the primary focus of Notice 2025-63 is on large-scale electricity production, small businesses that invest in "Qualified Commercial Clean Vehicles" (Section 45W) or smaller-scale renewable energy installations can benefit from the clarified definitions. The bulletin provides the technical specifications needed for these smaller entities to ensure their equipment qualifies for the high-value credits.
Practical Recommendations for Tax Compliance
To properly utilize the information in the 2025-36 Internal Revenue Bulletin, taxpayers and their advisors should take the following steps:
- Audit Existing Private Loans: Check any intra-family or related-party loans created in September 2025 to ensure the interest rate meets or exceeds the AFR found in Revenue Ruling 2025-16.
- Verify Charitable Deductions: Before finalizing 2025 tax filings in 2026, cross-reference charitable contributions against Announcement 2025-13 to ensure no deductions were taken for gifts to revoked organizations.
- Review Energy Project Benchmarks: For those involved in renewable energy, review the GHG emission methodologies in Notice 2025-63. Ensure that all project documentation from late 2025 aligns with these IRS-approved models.
- Consult a Tax Professional: Because the IRB contains highly technical interpretations of the law, it is essential to consult with a CPA or tax attorney before making significant financial decisions based on these rulings.
Disclaimer: This article provides a general overview of the 2025-36 Internal Revenue Bulletin for informational purposes only. It does not constitute legal, financial, or tax advice. Tax laws are subject to change and vary by jurisdiction. Always consult with a qualified professional regarding your specific tax situation.
