Today, Treasury and the IRS issued final and temporary regulations (TD 9755) under section 42 that amend the utility allowance regulations concerning the low-income housing credit. The text of the temporary regulations serves as the text of concurrently issued proposed regulations (REG-123867-14). The final regulations clarify the circumstances in which utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company. The temporary regulations extend the principles of these submetering rules to energy that the building owner provides to tenants after having acquired it directly from renewable sources. Qualification for this submetering treatment, however, depends on the charges to the tenants for this energy being comparable to local utility rates. To the extent that tenants consume this energy, charges by the building owner must not exceed the rates that the local utility company would have charged the tenants if such tenants had instead acquired energy from that company. The final and temporary regulations are effective March 3. Comments on the proposed regulations and requests for a public hearing must be received by May 2.