Rev. Rul. 2025-5, 2025-07 I.R.B. 767

This revenue ruling provides various prescribed rates for federal income tax purposes for February 2025 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

REV. RUL. 2025-5 TABLE 1 Applicable Federal Rates (AFR) for February 2025 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

4.34%

4.29%

4.27%

4.25%

110% AFR

4.78%

4.72%

4.69%

4.67%

120% AFR

5.22%

5.15%

5.12%

5.10%

130% AFR

5.66%

5.58%

5.54%

5.52%

Mid-term

AFR

4.52%

4.47%

4.45%

4.43%

110% AFR

4.98%

4.92%

4.89%

4.87%

120% AFR

5.43%

5.36%

5.32%

5.30%

130% AFR

5.89%

5.81%

5.77%

5.74%

150% AFR

6.82%

6.71%

6.65%

6.62%

175% AFR

7.97%

7.82%

7.75%

7.70%

Long-term

AFR

4.86%

4.80%

4.77%

4.75%

110% AFR

5.35%

5.28%

5.25%

5.22%

120% AFR

5.84%

5.76%

5.72%

5.69%

130% AFR

6.34%

6.24%

6.19%

6.16%

REV. RUL. 2025-5 TABLE 2 Adjusted AFR for February 2025 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

3.29%

3.26%

3.25%

3.24%

Mid-term adjusted AFR

3.42%

3.39%

3.38%

3.37%

Long-term adjusted AFR

3.67%

3.64%

3.62%

3.61%

REV. RUL. 2025-5 TABLE 3 Rates Under Section 382 for February 2025

Adjusted federal long-term rate for the current month

3.67%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.)

3.67%

REV. RUL. 2025-5 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for February 2025

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit

8.09%

Appropriate percentage for the 30% present value low-income housing credit

3.47%

REV. RUL. 2025-5 TABLE 5 Rate Under Section 7520 for February 2025

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest

5.4%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted applicable federal long-term rate is set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 467.—Certain Payments for the Use of Property or Services

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The applicable federal short-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 482.—Allocation of Income and Deductions Among Taxpayers

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 483.—Interest on Certain Deferred Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.

Section 7872.—Treatment of Loans With Below-Market Interest Rates

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of February 2025. See Rev. Rul. 2025-5, page 767.