Instructions for IRS Form 8038-TC Information Return for Tax Credit Bonds and Specified Tax Credit Bonds

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Instructions for Form
Department of the Treasury
Internal Revenue Service
8038-TC
(Rev. September 2018)
Information Return for Tax Credit Bonds and Specified Tax Credit Bonds
General Instructions
Section references are to the Internal Revenue
Late filing. An issuer may be granted an
Code unless otherwise noted.
extension of time to file Form 8038-TC
Purpose of Form
under section 3 of Rev. Proc. 2002-48,
Future Developments
Form 8038-TC is used by the issuers of
2002-37 I.R.B. 531, if it is determined that
For the latest information about
qualified tax credit bonds and specified
the failure to file timely is not due to willful
developments related to Form 8038-TC
tax credit bonds listed below under Who
neglect. Type or print at the top of the
and its instructions, such as legislation
Must File, to provide the IRS with the
form, “Request for Relief under section 3
enacted after they were published, go to
information required by section 149(e).
of Rev. Proc. 2002-48.” Attach to the Form
IRS.gov/Form8038TC.
8038-TC a letter explaining why Form
Who Must File—Qualified Tax
8038-TC was not filed on time. Also
What’s New
Credit Bonds
indicate whether the bond issue in
question is under examination by the IRS.
The Tax Cuts and Jobs Act (P.L. 115-97)
Issuers of the following bonds must file a
Do not submit copies of the trust indenture
repealed the authority to issue tax-credit
separate Form 8038-TC for each tax credit
or other bond documents.
bonds and direct-pay bonds. The repeal
bond issue issued after March 2010 and
applies to qualified forestry conservation
before January 1, 2018.
Note. If Form 8038-TC is filed late for
bonds, new clean renewable energy
Qualified forestry conservation bonds.
specified tax credit bonds, it still must be
bonds, qualified energy conservation
New clean renewable energy bonds.
filed 30 days prior to the submission of the
bonds, qualified zone academy bonds,
Qualified energy conservation bonds.
first Form 8038-CP for that issue.
and qualified school construction bonds
Qualified zone academy bonds.
issued after December 31, 2017. The
Qualified school construction bonds.
Where To File
authority to issue recovery zone economic
Clean renewable energy bonds.
File Form 8038-TC and any attachments
development bonds and build America
All other qualified tax credit bonds
with the Department of the Treasury,
bonds expired on January 1, 2011.
(except build America bonds which should
Internal Revenue Service Center, Ogden,
be reported on Form 8038-B, Information
Reminders
UT 84201.
Return for Build America Bonds and
Recovery Zone Economic Development
Private delivery services. You can use
Specified tax credit bonds are treated as
Bonds).
certain private delivery services (PDS)
qualified bonds for purposes of section
designated by the IRS to meet the “timely
6431. Issuers of certain qualified tax credit
Who Must File—Specified Tax
mailing as timely filing” rule for tax returns.
bonds issued prior to January 1, 2018,
Credit Bonds
Go to
IRS.gov/PDS
for the current list of
may elect as of the issue date of the
designated services.
Issuers of the following specified tax credit
bonds under section 6431(f) to receive a
bonds issued before January 1, 2018,
refundable credit in lieu of tax credits
The PDS can tell you how to get written
must file a separate Form 8038-TC for
under section 54A. Only issuers of
proof of the mailing date.
each specified tax credit bond issue.
specified tax credit bonds that qualify for
For the IRS mailing address to use if
New clean renewable energy bonds.
and have elected to receive a refundable
you're using PDS, go to
IRS.gov/
Qualified energy conservation bonds.
credit under section 6431(f) may file Form
PDSstreetAddresses.
Qualified zone academy bonds.
8038-CP, Return for Credit Payments to
Qualified school construction bonds.
PDS can’t deliver items to P.O.
Issuers of Qualified Bonds. If the issuer of
boxes. You must use the U.S.
a specified tax credit bond makes the
!
When To File
Postal Service to mail any item to
election under section 6431(f), the holder
CAUTION
File Form 8038-TC on or before the 15th
an IRS P.O. box address.
of the bond will not be eligible to receive a
day of the 2nd calendar month after the
tax credit under section 54A. For more
Other Forms That May Be
close of the calendar quarter in which the
information on specified tax credit bonds,
bond was issued. Form 8038-TC may not
see Notice 2010-35.
Required
be filed before the issue date and must be
For submitting payment of arbitrage rebate
Other tax credit bonds, including
completed based on the facts as of the
to the federal government, use Form
qualified forestry conservation bonds,
issue date.
8038-T, Arbitrage Rebate, Yield
clean renewable energy bonds, qualified
For specified tax credit bonds, Form
Reduction and Penalty in Lieu of Arbitrage
zone academy bonds issued following an
8038-TC must be filed at least 30 days
Rebate.
allocation of 2011 (or later) volume cap,
prior to the submission of the first Form
and Midwestern tax credit bonds, are not
For issuers of specified tax credit
8038-CP that is filed to request payment
eligible for direct payments under section
bonds who elect under section 6431 to
with respect to an interest payment date
6431(f).
receive a direct payment of a refundable
for that issue. Failure to complete this
credit from the federal government, the
form, including the attached schedules,
payment must be requested on Form
may result in a delay in processing this
8038-CP. Each Form 8038-CP can only
form. All attached schedules must include
relate to the interest paid on a single bond
the issuer's name and EIN at the top.
issue. Issuers of certain specified tax
Aug 28, 2018
Cat. No. 54164P
Instructions for Form
Department of the Treasury
Internal Revenue Service
8038-TC
(Rev. September 2018)
Information Return for Tax Credit Bonds and Specified Tax Credit Bonds
General Instructions
Section references are to the Internal Revenue
Late filing. An issuer may be granted an
Code unless otherwise noted.
extension of time to file Form 8038-TC
Purpose of Form
under section 3 of Rev. Proc. 2002-48,
Future Developments
Form 8038-TC is used by the issuers of
2002-37 I.R.B. 531, if it is determined that
For the latest information about
qualified tax credit bonds and specified
the failure to file timely is not due to willful
developments related to Form 8038-TC
tax credit bonds listed below under Who
neglect. Type or print at the top of the
and its instructions, such as legislation
Must File, to provide the IRS with the
form, “Request for Relief under section 3
enacted after they were published, go to
information required by section 149(e).
of Rev. Proc. 2002-48.” Attach to the Form
IRS.gov/Form8038TC.
8038-TC a letter explaining why Form
Who Must File—Qualified Tax
8038-TC was not filed on time. Also
What’s New
Credit Bonds
indicate whether the bond issue in
question is under examination by the IRS.
The Tax Cuts and Jobs Act (P.L. 115-97)
Issuers of the following bonds must file a
Do not submit copies of the trust indenture
repealed the authority to issue tax-credit
separate Form 8038-TC for each tax credit
or other bond documents.
bonds and direct-pay bonds. The repeal
bond issue issued after March 2010 and
applies to qualified forestry conservation
before January 1, 2018.
Note. If Form 8038-TC is filed late for
bonds, new clean renewable energy
Qualified forestry conservation bonds.
specified tax credit bonds, it still must be
bonds, qualified energy conservation
New clean renewable energy bonds.
filed 30 days prior to the submission of the
bonds, qualified zone academy bonds,
Qualified energy conservation bonds.
first Form 8038-CP for that issue.
and qualified school construction bonds
Qualified zone academy bonds.
issued after December 31, 2017. The
Qualified school construction bonds.
Where To File
authority to issue recovery zone economic
Clean renewable energy bonds.
File Form 8038-TC and any attachments
development bonds and build America
All other qualified tax credit bonds
with the Department of the Treasury,
bonds expired on January 1, 2011.
(except build America bonds which should
Internal Revenue Service Center, Ogden,
be reported on Form 8038-B, Information
Reminders
UT 84201.
Return for Build America Bonds and
Recovery Zone Economic Development
Private delivery services. You can use
Specified tax credit bonds are treated as
Bonds).
certain private delivery services (PDS)
qualified bonds for purposes of section
designated by the IRS to meet the “timely
6431. Issuers of certain qualified tax credit
Who Must File—Specified Tax
mailing as timely filing” rule for tax returns.
bonds issued prior to January 1, 2018,
Credit Bonds
Go to
IRS.gov/PDS
for the current list of
may elect as of the issue date of the
designated services.
Issuers of the following specified tax credit
bonds under section 6431(f) to receive a
bonds issued before January 1, 2018,
refundable credit in lieu of tax credits
The PDS can tell you how to get written
must file a separate Form 8038-TC for
under section 54A. Only issuers of
proof of the mailing date.
each specified tax credit bond issue.
specified tax credit bonds that qualify for
For the IRS mailing address to use if
New clean renewable energy bonds.
and have elected to receive a refundable
you're using PDS, go to
IRS.gov/
Qualified energy conservation bonds.
credit under section 6431(f) may file Form
PDSstreetAddresses.
Qualified zone academy bonds.
8038-CP, Return for Credit Payments to
Qualified school construction bonds.
PDS can’t deliver items to P.O.
Issuers of Qualified Bonds. If the issuer of
boxes. You must use the U.S.
a specified tax credit bond makes the
!
When To File
Postal Service to mail any item to
election under section 6431(f), the holder
CAUTION
File Form 8038-TC on or before the 15th
an IRS P.O. box address.
of the bond will not be eligible to receive a
day of the 2nd calendar month after the
tax credit under section 54A. For more
Other Forms That May Be
close of the calendar quarter in which the
information on specified tax credit bonds,
bond was issued. Form 8038-TC may not
see Notice 2010-35.
Required
be filed before the issue date and must be
For submitting payment of arbitrage rebate
Other tax credit bonds, including
completed based on the facts as of the
to the federal government, use Form
qualified forestry conservation bonds,
issue date.
8038-T, Arbitrage Rebate, Yield
clean renewable energy bonds, qualified
For specified tax credit bonds, Form
Reduction and Penalty in Lieu of Arbitrage
zone academy bonds issued following an
8038-TC must be filed at least 30 days
Rebate.
allocation of 2011 (or later) volume cap,
prior to the submission of the first Form
and Midwestern tax credit bonds, are not
For issuers of specified tax credit
8038-CP that is filed to request payment
eligible for direct payments under section
bonds who elect under section 6431 to
with respect to an interest payment date
6431(f).
receive a direct payment of a refundable
for that issue. Failure to complete this
credit from the federal government, the
form, including the attached schedules,
payment must be requested on Form
may result in a delay in processing this
8038-CP. Each Form 8038-CP can only
form. All attached schedules must include
relate to the interest paid on a single bond
the issuer's name and EIN at the top.
issue. Issuers of certain specified tax
Aug 28, 2018
Cat. No. 54164P
credit bonds with multiple maturities must
of the available project proceeds of which
may also apply for an EIN by faxing or
file a separate Form 8038-CP for each
are to be used for one or more qualified
mailing Form SS-4 to the IRS. Customers
maturity. For more information, see
energy conservation purposes as defined
outside the United States or U.S.
Purpose of Form in the Instructions for
in section 54D.
possessions may also apply for an EIN by
Form 8038-CP.
calling 267-941-1099 (toll call).
Issue. Generally, bonds are treated as
Rounding to Whole Dollars
part of the same issue if they are issued by
Line 3. If the issuer wishes to authorize a
the same issuer, on the same date, and in
person other than an officer of the issuer
You can round off cents to whole dollars. If
a single transaction or series of related
(including a legal representative or paid
you do round to whole dollars, you must
transactions.
preparer) to communicate with the IRS
round all amounts. To round, drop
and whom the IRS may contact with
amounts under 50 cents and increase
Issue price. The issue price of
respect to this return (including in writing
amounts from 50 to 99 cents to the next
obligations is generally determined under
or by telephone), enter the name of the
dollar (for example, $1.39 becomes $1
Regulations section 1.148-1(f). Thus,
person here. The person listed in line 3
and $2.50 becomes $3).
when issued for cash, the issue price is
must be an individual. Do not enter the
the price at which a substantial amount of
name and title of an officer of the issuer
If two or more amounts must be added
the obligations are sold to the public. To
here (use line 10 for that purpose).
to figure the amount to enter on a line,
determine the issue price of an obligation
include cents when adding the amounts
issued for property, see sections 1273 and
Note. By authorizing a person other than
and round off only the total.
1274 and the related regulations.
an authorized officer of the issuer to
Definitions
communicate with the IRS and whom the
Sale proceeds. Sale proceeds are
IRS may contact with respect to this
determined under Regulations section
Tax credit bond. An obligation issued
return, the issuer authorizes the IRS to
1.148-1(b) as any amount actually or
under section 54, 54A, or 1400N(l) that
communicate directly with the individual
constructively received from the sale of
entitles the taxpayer holding such bond on
entered in line 3 and consents to disclose
the issue, including amounts used to pay
one or more credit allowance dates
the issuer's return information to that
underwriters' discount or compensation
occurring during any tax year to a credit
individual, as necessary, to process this
and accrued interest, other than
against the federal income tax imposed for
return.
pre-issuance accrued interest. Sale
that tax year.
proceeds also include, but are not limited
Line 4. This line is for IRS Use Only. Do
Qualified forestry conservation bond.
to, amounts derived from the sale of a
not make any entries in the boxes.
An obligation that is part of an issue 100%
right that is associated with a bond, and
Lines 5 and 6. If you listed in line 3 a
that is described in Regulations section
of the available project proceeds of which
person other than an officer of the issuer
are to be used to finance one or more
1.148-4(b)(4). Sale proceeds shall also
(including a legal representative or paid
qualified forestry conservation purposes
include the proceeds from the sale of
preparer) to communicate with the IRS
as defined in section 54B.
credit strips. See also Regulations section
and whom the IRS may contact with
1.148-4(h)(5) treating amounts received
Qualified zone academy bond. An
respect to this return, enter the number
upon the termination of certain hedges as
obligation that is part of an issue 100% of
and street (or P.O. box if mail is not
sale proceeds.
the available project proceeds of which
delivered to the street address) and city,
Arbitrage. The issuer must comply with
are to be used for a qualified purpose with
town, or post office, state, and ZIP code of
the arbitrage requirements of sections 148
respect to a qualified zone academy
that person. Otherwise, enter the issuer's
established by an eligible local education
and 54A.
number and street (or P.O. box if mail is
agency as provided in section 54E.
not delivered to the street address) and
Specific Instructions
city, town, or post office, state, and ZIP
Qualified school construction bond.
code.
An obligation that is part of an issue 100%
Part I—Reporting Authority
of the available project proceeds of which
Line 7. The date of issue is generally the
are to be used for the construction,
Amended return. An issuer may file an
date on which the issuer exchanges the
amended return to change or add to the
rehabilitation, or repair of a public school
bonds for the underwriter's (or other
information reported on a previously filed
facility, or for the acquisition of land on
purchaser's) funds.
return for the same date of issue. If you
which a facility is to be constructed with
Line 8. If there is no name of the issue,
are filing to correct errors or change a
the proceeds as set forth in section 54F.
please provide other identification of the
previously filed return, check the
Clean renewable energy bond. An
issue.
“Amended Return” box in the heading of
obligation that is part of an issue 95% or
the form.
Line 9. Enter the Committee on Uniform
more of the proceeds of which are to be
The amended return must provide all
Securities Identification Procedures
used for capital expenditures incurred by
the information reported on the original
(CUSIP) number of the latest maturity on
qualified borrowers for one or more
return, in addition to the new or corrected
line 9. Attach a schedule with a complete
eligible clean renewable energy projects
information. Attach an explanation of the
list of CUSIP numbers for each bond. If
as defined in section 54.
reason for the amended return and write
some or all of the tax credits are stripped,
New clean renewable energy bond. An
across the top, “Amended Return
attach a schedule with the name of each
obligation that is part of an issue 100% of
Explanation.”
purchaser of the tax credit bonds or tax
the available project proceeds of which
credit strips, each purchaser's EIN, and
Line 1. Enter the name of the entity
are to be used for capital expenditures
the CUSIP numbers associated with the
issuing the bonds, not the name of the
incurred by governmental bodies, public
bonds and the stripped tax credits. If the
entity receiving the benefit of the
power providers, or cooperative electric
issue does not have a CUSIP number,
financing.
companies for one or more qualified
write, “None.” If the issue either has no
renewable energy facilities as defined in
Line 2. An issuer that does not have an
CUSIP number or is privately placed,
section 54C.
employer identification number (EIN)
attach a schedule with each purchaser's
should apply online by visiting the IRS
EIN, name, and address.
Qualified energy conservation bond.
website at IRS.gov/EIN. The organization
An obligation that is part of an issue 100%
Instructions for Form 8038-TC
-2-
specified tax credit bonds with a
knows the interest amount for a certain
Line 10. Enter the name and title of the
single maturity. For QZABs or QSCBs,
period, for that period the issuer should
officer of the issuer whom the IRS may call
the amount of refundable credit payment
provide the refundable credit payment
for more information. If the issuer entered
with respect to an interest payment date is
expected to be requested from the IRS as
in line 3 the name of a person other than
equal to the lesser of the amount of
allowed under section 6431(f).
an officer of the issuer (including a legal
interest payable on the bond on the
representative or paid preparer) to
Note. If the bond issue reported on this
interest payment date or 100% of the
communicate with the IRS and whom the
Form 8038-TC constitutes both fixed rate
amount of interest which would have been
IRS may contact for this return (including
bonds and variable bonds, a separate
payable under such bond on the interest
in writing or by telephone), leave line 10
schedule must be entered for each of the
payment date if the interest were
blank.
bonds.
determined at the applicable credit rate
Line 11. Enter the telephone number of
determined under section 54A(b)(3). For
Part III—Description of
the person whom the IRS may contact for
new CREBs and QECBs, the amount of
Obligations
more information identified in line 3 or
refundable credit payment with respect to
line 10, as applicable.
an interest payment date is equal to the
Line 1. See Issue price under Definitions,
lesser of the amount of interest payable on
Part II—Type of Issue
earlier.
such bond on the interest payment date or
Line 2. The stated redemption price at
Line 1. Identify the type of tax credit
70% of the amount of interest which would
maturity of the entire issue is the sum of
bonds issued by entering the
have been payable under such bond on
the stated redemption prices at maturity of
corresponding three-digit code as follows.
the interest payment date, if the interest
each bond issued as part of the issue.
101—Qualified forestry conservation
were determined at the applicable credit
bonds.
rate determined under section 54A(b)(3).
Line 3. Enter the last date on which any
102—New clean renewable energy
Determining the refundable credit
of the bonds will mature. If more than one
bonds.
payment under section 6431(f) for
maturity, attach a schedule for each
103—Qualified energy conservation
specified tax credit bonds with
principal payment date.
bonds.
multiple maturities. The refundable
Line 4. The applicable credit rate is the
104—Qualified zone academy bonds.
credit payment for specified tax credit
daily rate set by the IRS under section
105—Qualified school construction
bonds with multiple maturities is
54A(b)(3) determined as of the first day on
bonds.
determined separately for each bond
which there is a binding, written contract
106—Clean renewable energy bonds.
maturity by comparing the interest payable
for the sale or exchange of the bond.
108—Other.
on each bond maturity with the interest
Carry the percent out to two decimal
that would have been payable on such
Line 2. Enter type of bond.
places, do not round (for example,
bond maturity if the interest on such bond
10.74%). Such a rate is posted by the
Line 3. If the issuer has made an
maturity were figured using the applicable
Bureau of the Fiscal Service on its Internet
irrevocable election to apply section
credit rate and summing up the lesser of
site for State and Local Government
6431(f), check “Yes,” if not, check “No.” If
the two amounts with respect to each
Series securities at TreasuryDirect.gov.
“No,” skip lines 4 and 5.
bond maturity. For example, if an issue
See Notice 2009-15, which is on page 449
consists of two bond maturities, one with a
Line 4. Enter the first interest payment
of Internal Revenue Bulletin 2009-6 at
2-year maturity with an interest rate of 2%
date. An interest payment date is the date
IRS.gov/pub/irs-irbs/irb09-06.pdf.
and one with a 15-year maturity with an
on which interest is payable by the
interest rate of 6%, while the applicable
Line 5. Enter the maximum term set by
governmental issuer to the holders of the
credit rate as of the sale date of the issue
the IRS under section 54A(d)(5)
bonds. (For variable rate issues, enter the
is 5%, the allowable refundable credit with
applicable during each calendar month in
last interest payment date applicable to
respect to interest payment date 1 would
which the tax credit bonds are sold. Carry
the quarterly period for which the first
be the sum of the amount that equals 2%
the year out to two decimal places, do not
8038-CP for the issue will relate.) Enter
of the 2-year bond maturity and the
round. Enter zeros in the last two positions
the date in an MM/DD/YYYY format.
amount that equals 5% of the 15-year
(for example, 10.00). The maximum term
Line 5. Check the box indicating the
bond maturity. If the issue is an issue of
is posted by the Bureau of the Fiscal
interest payment date frequency. In
new CREBs or QECBs, the amount of
Service on its Internet site for State and
addition, issuers of specified tax credit
interest that would have been payable if
Local Government Series securities at
bonds must attach a debt service
the interest were figured using the
TreasuryDirect.gov.
schedule to the Form 8038-TC which
applicable credit rate would be figured by
Line 6. Enter the applicable maximum
contains the information described below
reducing the interest that would be
permitted yield for the sinking fund
for the bond issue.
payable by multiplying such interest by
expected to be used to repay the issue
1. For fixed-rate bonds, attach a
70% (0.70) with respect to each bond
under section 54A(d)(4)(C). Carry the
complete debt service schedule titled
maturity. In the example above, the
percent out to four decimal places, do not
“Fixed Rate Bond—Debt Service
refundable credit payment with respect to
round. Enter zeros in the last two positions
Schedule” that provides a list of each
interest payment date 1 for the 2-year
(for example, 10.7400%). The permitted
interest payment date, the total interest
maturity would be 2% and for the 15-year
sinking fund yield is set by the IRS
payable on such date, the total principal
maturity would be 3.5% of the outstanding
consistent with the maximum term
amount of bonds expected to be
bond maturity.
determined under section 54A(d)(5) and is
outstanding on such date, the interest
2. For variable rate bonds, attach a
posted by the Bureau of the Fiscal Service
rate, the refundable credit payment
debt service schedule titled “Variable Rate
on its Internet site for State and Local
expected to be requested from the IRS as
Bond–Debt Service Schedule” that
Government Series securities at
allowed under section 6431(f) on such
provides a list of each interest payment
TreasuryDirect.gov.
date, and the earliest date that the bonds
date, the total principal amount of bonds
can be called.
Line 7. For specified tax credit bonds,
expected to be outstanding on such date,
enter the interest rate on the bonds and
Determining the refundable credit
and a description of how interest on the
carry the interest rate out to four decimal
payment under section 6431(f) for
bonds is figured. However, if the issuer
Instructions for Form 8038-TC
-3-
places. For specified tax credit bonds with
purpose expenditure not otherwise
necessary to repay the issue or if the yield
more than one maturity, enter the interest
itemized in lines 1a through 12 and
on the reserve fund is greater than the
rate of the latest maturity. If the issue is a
describe the use of proceeds.
permitted sinking fund yield (entered in
variable rate issue, leave blank.
Part III, line 6).
Line 14. Enter total qualified purpose
Line 8. For specified tax credit bonds, if
expenditures equal to the sum of amounts
Line 1d. For purposes of monitoring the
the issue is a variable rate issue, check
entered in lines 1a through 13.
arbitrage requirements of section 148,
the box on line 8a. Enter the frequency
such monitoring shall include the arbitrage
Line 15. To determine the percentage of
that rates are reset on line 8b.
requirements of section 54A. If the issuer
total proceeds to be used for qualified
has established the written procedures,
Part IV—Proceeds of Issue
purpose expenditures, divide line 14 in
check the box.
Part V by line 7 in Part IV, then multiply the
Line 1. See Sale proceeds under
result by 100.
Line 2. The issuer must certify that
Definitions, earlier.
applicable state and local law
Line 16. Determine the proceeds of the
requirements governing conflicts of
issue used to reimburse the issuer for
Note. If the bond is stripped at issuance,
interest are satisfied with respect to the
amounts paid for a qualified purpose prior
line 1 must include sale proceeds of the
bond issue. See section 54A(d)(6). If
to the issuance of the bonds. See
principal and sale proceeds of the credit
these requirements are met, check the
Regulations section 1.150-2.
strips.
box in line 2.
Line 17. Subject to certain exceptions
Line 2. Enter the amount of the proceeds
Line 3. If some or all of the tax credits are
under Regulations section 1.150-2(f), an
that will be used to pay bond issuance
stripped, check the box.
issuer must adopt an official intent, as
costs, including underwriter's fees, fees
described in Regulations section
for trustees, and bond counsel.
Note. Submit the information required
1.150-2(e), to reimburse itself for
under Part I, line 9.
Note. Bond issuance costs for tax credit
preissuance expenditures within 60 days
Line 4. If an issuer fails to spend 100% of
bonds issued under section 54A are
after payment of the original expenditure.
the available project proceeds of the issue
limited to 2% of sale proceeds.
Enter the date the official intent was
by the close of the 3-year expenditure
adopted.
Line 3. Estimate expected investment
period (including any extensions granted),
Part VI—Allocation of National,
proceeds on the sale proceeds of the
the issuer must redeem all of the
issue, including proceeds received by the
State, Tribal, or Local Bond
nonqualified bonds within 90 days after
issuer from the sale of tax credits that
the end of such expenditure period. See
Limitation Amount
have been stripped from the bonds.
section 54A(d)(2)(B). If the issuer has
Line 1a. Enter the amount of volume cap
established written procedures to meet
Line 4. For all tax credit bonds issued
allocated to the issue by bond type. Attach
this requirement, check the box.
under section 54A, expected available
a copy of the national (for example, from
project proceeds shall be figured by
Line 5. “Other” is reserved for future tax
the Department of the Treasury or IRS),
subtracting line 2 from line 1 and adding
credit bonds.
state, tribal, or local allocations with
line 3.
respect to the issue. Check the tribal box if
Signature and Consent
For clean renewable energy bonds
the allocation is provided by the
(Code 106) read line 4 by substituting
An authorized representative of the issuer
Department of Interior. Failure to attach
“proceeds” for “available project
must sign Form 8038-TC and any
the appropriate allocation certification will
proceeds,” add lines 1 and 3, and enter
applicable certification. Also print the
result in a delay in processing this form.
that amount on line 4. Do not subtract
name and title of the person signing Form
The appropriate officials must certify that
line 2, bond issuance cost.
8038-TC. The authorized representative of
the issue has been designated as one or
the issuer signing this form must have the
Line 5. For IRS use only. Do not make an
more types of qualified tax credit bonds.
authority to consent to the disclosure of
entry in line 5.
On the blank line below line 1a, enter the
the issuer's return information, as
year of allocation and, if applicable, the
Line 6. Enter any amount of proceeds not
necessary to process this return, to the
amount of carryforward allocation.
otherwise itemized in lines 1–4 and
person(s) that have been designated in
describe the purpose for which the
Lines 1b through 1d. Check the
Form 8038-TC.
proceeds are to be used.
corresponding box indicating whether the
Note. If line 3 authorizes the IRS to
allocation is national, local, state, or tribal.
Line 7. Total proceeds equal the sum of
communicate (including in writing and by
lines 4 through 6.
Line 2. If the allocation is from a state,
telephone) with a person other than an
enter the state abbreviation.
officer of the issuer, by signing this form,
Note. For qualified tax credit bonds
Part VII—Miscellaneous
the issuer's authorized representative
issued under section 54A, lines 4 and 7,
consents to the disclosure of the issuer's
available project proceeds and total
Line 1a. Check the box if there is a
return information, as necessary to
proceeds, respectively, should equal the
reserve fund described in section 54A(d)
process this return, to such person.
same amount.
(4)(C) (sinking fund) that is expected to
repay the issue at maturity.
Part V—Description of Use of
Paid Preparer
Proceeds for Qualified Purpose
Line 1b. A reserve may be funded in
If an authorized representative of the
unequal periodic installments so long as it
Expenditures
issuer filled in this return, the paid
is funded no sooner than in equal periodic
preparer's space should remain blank.
Lines 1a through 12. Enter the dollar
installments. Check the box if the reserve
Anyone who prepares the return but does
amount of proceeds allocated to each
fund is funded no sooner than in equal
not charge the organization should not
qualified purpose expenditure on the
periodic payments.
sign the return. Certain others who
corresponding line.
Line 1c. Check the box if either the
prepare the return should not sign. For
Line 13. Enter the dollar amount of
reserve fund is expected to result in an
example, a regular, full-time employee of
proceeds allocated to each qualified
amount greater than the amount
Instructions for Form 8038-TC
-4-
the issuer, such as a clerk, secretary, etc.,
loan guarantee under the Rural
Line 2. Section 54D(e)(2)(B) provides
should not sign.
Electrification Act, check “Yes.”
that the amount allocated to a large local
government may, if unused, be
Line 6. Notice 2009-33 provides that,
Generally, anyone who is paid to
reallocated by such local government to
except in limited circumstances involving
prepare a return must sign it and fill in the
the state in which such local government
reimbursements to which section 54A(d)
other blanks in the Paid Preparer Use Only
is located. If the bonds are issued based
(2)(D) applies, costs of acquiring existing
area of the return. The paid preparer must:
on an allocation that has been reallocated
facilities generally will be treated as
Sign the return in the space provided
from a large local government to a state,
nonqualified costs. If any of the available
for the preparer's signature,
check “Yes.”
project proceeds have been used to
Enter the preparer information, and
acquire existing facilities, check “Yes.”
Line 3. A large local government means
Give a copy of the return to the issuer.
any municipality or county if such
Line 7. Notice 2009-33 provides that
Part VIII—Consent to
municipality or county has a population of
refinancing costs (as contrasted with costs
Disclosure of Certain
100,000 or more. If the issuer is a large
of enhancements, repair, or rehabilitation
local government, check “Yes.”
Information From This Return
of existing facilities) generally will be
treated as nonqualified costs. If any of the
Line 6. If the issuer issued the bonds
Line 1. If the issuer consents to the IRS's
available project proceeds have been
based on a volume cap allocation
publication, through a website or other
used to refinance existing facilities, check
received by another authorized entity (that
publication, of its name and address,
“Yes.”
allocated volume cap to the issue), check
employer identification number, name and
“Yes.” If not, check “No.” If “Yes” is
Line 8. Notice 2015-12 provides that an
description of bond issue, date of
checked, provide the name of such
allocation of new CREB volume cap
issuance, CUSIP number, issue price,
authorized entity. If more than one
limitation is valid for 180 days after the
final maturity date, stated redemption
authorized entity allocated volume cap to
date of the letter issuing the allocation (the
price at maturity, applicable credit rate and
the bond issue, attach a schedule listing
“volume cap allocation date”). If the issue
maximum term to assist in the proper
the names of, and amount of bonds for,
date of the issue is on or before 180 days
reporting of interest, tax credits, or other
each such authorized entity. If the box on
after the volume cap allocation date,
benefits under section 6049, check the
line 6 is checked “Yes,” failure to insert the
check “Yes.”
box next to “Yes.”
name of the other authorized entity that
Line 9. A new CREB must be designated
allocated volume cap to the issue may
Note. Part VIII does not apply to issuers
as such by a qualified issuer. If these
result in a delay in processing the return.
of tax credit bonds that have elected direct
bonds have been designated as new
payment refundable credits under section
Part II
CREBs, check “Yes.” See section 54C(a)
6431(f).
for more information.
For IRS use only. Do not make an entry in
line 1.
Schedule A. New Clean
Part II
Renewable Energy Bonds
Part III—List of Conservation
For IRS use only. Do not make an entry in
line 1.
Purposes, Location of the
(New CREBs) Under
Facilities, Amount of Proceeds
Part III—List of Qualified
Sections 54A and 54C
Used for the Purpose, Private
Renewable Energy Facilities
Part I—Issuer Questions
Activity User, and Private
Line 1. A “Qualified Renewable Energy
User's EIN
Line 1. A public power provider is a state
Facility” means a qualified facility as
utility with a service obligation as such
determined under section 45(d) (without
Line 1. Eligible issuers of QECBs include
terms are defined in section 217 of the
regard to paragraphs (8) and (10) and to
states, political subdivisions, as defined
Federal Power Act. If the issuer is a public
any placed-in-service date) owned by a
for purposes of section 103, and entities
power provider, check “Yes.”
public power provider, a governmental
empowered to issue bonds on behalf of
body, or a cooperative electric company.
Line 2. A cooperative electric company is
any such entity under rules similar to those
List the type of qualified renewable energy
a mutual or cooperative electric company
for determining whether a bond issued on
facility to be financed by the bonds, the
described in section 501(c)(12) or section
behalf of a state or political subdivision
location of the facility, the owner(s) of the
1381(a)(2)(C). If the issuer is a
constitutes an obligation of that state or
facility, the owner's EIN, and the amount
cooperative electric company, check
political subdivision for purposes of
of available project proceeds to be used
“Yes.”
section 103 and Regulations section
for that facility. (If more than one facility,
1.103-1(b). Further, eligible issuers
Line 3. A governmental body is any state
attach a schedule.)
include otherwise eligible issuers in
or Indian tribal government, or any political
conduit financing issues (as defined in
Schedule B. Qualified
subdivision thereof. If the issuer is a
Regulations section 1.150-1(b)).
governmental body, check “Yes.”
Energy Conservation
List each type of qualified conservation
Line 4. A clean renewable energy bond
Bonds (QECBs) Under
purpose described under section 54D(f) to
lender is a lender which is a cooperative
be financed by the bonds, the location of
Sections 54A and 54D
owned by, or has outstanding loans to,
the facility (if applicable), and the amount
100 or more cooperative electric
of available project proceeds to be used
Part I—Issuer and Project
companies and was in existence on
for each qualified conservation purpose. If
Questions
February 1, 2002, and shall include any
the bonds are private activity bonds,
affiliated entity which is controlled by such
provide the name and EIN of the private
Line 1. A QECB must be designated as
lender. If the issuer is a clean renewable
user(s). (If more than one purpose, facility,
such by the issuing state or local
energy bond lender, check “Yes.”
owner, or user, attach a schedule.)
government. See section 54D(a). If these
Line 5. If the issuer is a not-for-profit
bonds have been designated as QECBs,
electric utility which has received a loan or
check “Yes.”
Instructions for Form 8038-TC
-5-

Download Instructions for IRS Form 8038-TC Information Return for Tax Credit Bonds and Specified Tax Credit Bonds

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