Rev. Proc. 80-36

Section 1. Purpose

The purpose of this revenue procedure is to set forth procedures necessary for a manufacturer to make application for "certification" that an item will be treated as insulation, an energy-conserving component, or renewable energy source property, under the provisions of section 44C of the Internal Revenue Code.

Sec. 2. Background

Section 44C of the Code allows an individual a credit against federal income tax in an amount equal to the sum of the qualified energy conservation expenditures plus the qualified renewable energy source expenditures. Manufacturers of items may apply to the Secretary to certify that such items will be treated for purposes of the residential energy credit as insulation, other energy-conserving components, or renewable energy source property. Section 44C(c)(6)(A)(ii) provides that the Secretary shall by regulations establish a procedure for obtaining this certification. Such procedure is established in section 1.44C-5 of the Income Tax Regulations and is implemented in this revenue procedure.

Sec. 3. General Practices and Definitions

.01 This revenue procedure covers applications for "certification" that for purposes of the residential energy credit, an item will be treated as:

(a) insulation,

(b) other energy-conserving components, or

(c) renewable energy source property.

.02 A "certification" is a written statement given by the National Office of the Internal Revenue Service to a manufacturer of an item certifying that the item meets the definition of insulation, other energy-conserving components, or renewable energy source property as defined in section 1.44C-2 of the regulations.

.03 A "certification" means only that the item meets the applicable definitional requirement in the case of any person claiming a residential energy credit with respect to such an item. It does not mean that the Service certifies that the item meets any performance or quality standards (if any) in effect at the time, that the item will save energy or money, or that the Service assumes any warranty or liability for the item's performance.

.04 Certification is available only to the manufacturer of an item. Requests for certifications will not be accepted from wholesalers, distributors, jobbers, importers, retailers, trade, business, or industry associations, consumer groups, governmental agencies, or individual taxpayers who are not the manufacturers of the item.

.05 Nothing in this revenue procedure is to be construed as preventing a taxpayer from requesting a ruling on the eligibility of any item for the residential energy credit. Such requests for a ruling are to be made in accordance with the procedures of Rev. Proc. 80-20, 1980-1 C.B. 633.

.06 Applications for certification of an item that has been specified by the Secretary as an energy-conserving component pursuant to section 1.44C-2(d)(4)(viii) of the regulations or as a renewable energy source pursuant to section 1.44C-2(e)(2) may be made under this revenue procedure.

.07 A manufacturer may apply on the same application for one or several items to be certified as meeting the definitional requirement of one or more categories. For example, the item, or items meet the definition of (1) more than one type of energy-conserving component, (2) insulation, and (3) renewable energy source properties, or any combination of these three categories. However, no more than five items may be included in any one application.

.08 It is not necessary to apply for separate certification of similar items that differ only in model number, size, or other parameters that do not change the inherent nature of the item.

.09 Granting of a certification to one manufacturer of an item does not grant certification to a similar product made by another manufacturer.

.10 Lack of certification of an item does not in itself disqualify that item for the residential energy credit if it otherwise qualifies.

.11 The Service in making the decision whether an item meets the definitional requirement in order to be certified may consult with the Secretary of the Department of Energy, the Secretary of the Department of Housing and Urban Development or any other appropriate sources to obtain their views concerning the item in question.

.12 The definitional requirements of items qualifying for certification are found in the following sections of the regulations:

Insulation, section 1.44C-2(c) with the exception of subparagraphs (2), (3), and (4).

Energy-conserving components, section 1.44C-2(d)(4).

Solar energy property, section 1.44C-2(f).

Wind energy property, section 1.44C-2(g).

Geothermal energy property, section 1.44C-2(h).

.13 Certifications granted for items that are specified in section 44C of the Code as added by the Energy Tax Act of 1978, Pub. L. 95-618, 1978-3 C.B. (Vol. 2) 1, will be applied retroactively to April 20, 1977. However, certifications granted to energy-conserving components or renewable energy source property that were added in accordance with section 1.44C-6 of the regulations will be applied retroactively only to the date the applicable energy-conserving component or renewable energy source property was added by Treasury Decision 7717, page 7, this Bulletin, to the lists of qualifying energy-conserving components or renewable energy sources.

Sec. 4. Instructions to the Manufacturer

.01 It is necessary to submit only one copy of an application for certification unless the application requests certification for more than one item; if so, a duplicate copy is to be submitted for each item in excess of one.

.02 An application for certification and any factual information subsequently submitted must be accompanied by a declaration in the following form: "Under penalties of perjury, I declare that I have examined this application including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of the application are true, correct, and complete." In the case of a noncorporate manufacturer, it must be signed by the person or persons on whose behalf the application is made. In the case of a corporate manufacturer, the person who signs must be an officer of the corporation who has personal knowledge of the facts.

.03 In cases in which application for certification is requested for more than one item, or one item is to be certified in more than one category, the Service generally will issue a single certification. However, the manufacturer may apply for a separate certification for each item or each category. Unless the Service determines that it is not feasible or not in the best interest of the Service to comply with the manufacturer's application in such cases, separate certifications will be issued.

.04 Each application for certification must contain a complete statement of all the facts concerning each item. These facts must include but are not limited to:

(1) an explanation of the purpose and function of the item;

(2) a complete description of the item including design drawings and material specifications necessary to demonstrate the purpose and functions of the item; and

(3) the manner in which the item is to be used for its intended purpose. In addition, photographs, appropriate samples, or other information to demonstrate that the item meets the definition of the claimed category may be included. Original documents or other material that the manufacturer may want returned should not be submitted because they will become part of the Service file and will not be returned. Material facts furnished to the Service by telephone or orally at a conference must be promptly confirmed by letter to the Service accompanied by a declaration in the form described in section 4.02. This confirmation must be furnished within 21 calendar days to be considered part of the application. Procedures for requesting an extension of the 21-day period and notifying the manufacturer or the manufacturer's representative of the Service's decision are the same as those stated in section 9.05 of Rev. Proc. 80-20.

.05 The application for a certification should be addressed to the Internal Revenue Service, Assistant Commissioner (Technical), Attention T:C:E, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

.06 A manufacturer may obtain information regarding the status of an application by calling the person whose name and telephone number is shown on the acknowledgement of receipt of the application.

.07 A manufacturer who desires a conference in the event an adverse determination is proposed to its application for certification may indicate such desire in writing when filing the application or soon thereafter.

.08 Replies to applications for certification sent to manufacturers under section 44C of the Code will be made open to public inspection under the procedures in section 6110, the regulations thereunder, and the Statement of Procedural Rules. In order to assist the National Office in complying with the provisions of section 6110, the manufacturer must follow the provisions of section 9.09 of Rev. Proc. 80-20.

.09 If the application is signed by a representative of the manufacturer or if the representative is to appear before the Service in connection with the application, the provisions of Rev. Proc. 80- 20, section 9.10, are to be followed.

.10 If the manufacturer has more than one representative see Rev. Proc. 80-20, section 9.11.

.11 Any application for a certification that does not comply with all the provisions of this revenue procedure will be handled in the manner provided in Rev. Proc. 80-20, section 9.13.

.12 The order in which the Service processes applications for certification and requests for expeditious handling is explained in section 9.15 of Rev. Proc. 80-20.

.13 If a dispute arises between the manufacturer and the Service over the Service's intention to disclose the determination in regard to an application for certification pursuant to section 6110(f) of the Code or notations of third party contacts pursuant to section 6110(d), such disputes will be handled according to sections 9.19 and 9.20 of Rev. Proc. 80-20.

Sec. 5. Conferences in the National Office

If the National Office considers it to be helpful in reaching a decision or when an adverse decision to an application for certification is indicated and the manufacturer had requested a conference in such circumstances, the manufacturer will be notified by telephone, if possible. The conference must be held within 21 calendar days after such contact has been made. Procedures for requesting an extension of the 21-day period and notifying the manufacturer or the manufacturer's representative of the Service's decision are the same as those stated in section 9.05 of Rev. Proc. 80-20.

If such a conference is held the procedure for the conference will be handled as provided for in section 11 of Rev. Proc. 80-20.

Sec. 6. Withdrawal of Requests

An application for a certification may be withdrawn at any time prior to the signing of the letter of reply. Even though an application is withdrawn, all correspondence and exhibits will be retained by the Service and will not be returned to the manufacturer. In appropriate cases, the Service may publish its determination in a revenue ruling or revenue procedure.

Sec. 7. Areas Not Covered by This Revenue Procedure

This revenue procedure covers application for certification only. Applications for additions to the list of other energy- conserving components or other forms of renewable energy property as provided in section 1.44C-6 of the regulations or additions to the list of specially defined energy property under section 48(1) of the Code may not be made under this revenue procedure.

Sec. 8. Effective Date

This revenue procedure is effective September 22, 1980, the date of publication in the Internal Revenue Bulletin.