Interest rates; underpayments and overpayments. The rates of interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2008, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.

Final regulations under section 42 of the Code, concerning the low-income housing tax credit, update the utility allowances regulations to provide new options for estimating tenant utility costs.

Proposed regulations under section 460 of the Code would amend the regulations as they apply to certain long-term construction contracts that qualify as home construction contracts under section 460(e)(6) and to certain changes in method of accounting for long-term contracts. A public hearing is scheduled for December 5, 2008.

Proposed regulations under section 423 of the Code provide the requirements that must be satisfied in order for a plan to meet the definition of an employee stock purchase plan. Section 423 also addresses the individual income tax treatment of stock acquired pursuant to an option granted under an employee stock purchase plan. The regulations update the existing regulations and provide additional guidance in certain areas.

This notice addresses the application of section 382 of the Code in the case of certain acquisitions made pursuant to the Housing and Economic Recovery Act of 2008.