Form 8038-TC - Information Return for Tax Credit Bonds

Instructions for Form
8038-TC

Department of the Treasury
Internal Revenue Service

(June 2010)

Information Return for Tax Credit Bonds and Specified Tax Credit Bonds
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
What’s New
The American Recovery and
Reinvestment Act of 2009 added qualified
school construction bonds and
consolidated those bonds together with
qualified forestry conservation bonds,
qualified zone academy bonds, qualified
energy conservation bonds, and new
clean renewable energy bonds under
section 54A that allows a tax credit to the
holders of such bonds.
Section 301 of P.L. 111-147 (H.R.
2847), the Hiring Incentives to Restore
Employment (HIRE) Act, provides that
issuers of new clean renewable energy
bonds, qualified energy conservation
bonds, qualified zone academy bonds,
and qualified school construction bonds
may elect to apply section 6431(f) to
receive a refundable credit in lieu of tax
credits under section 54A (specified tax
credit bonds). Issuers of specified tax
credit bonds elect under section 6431(f)
to receive a refundable credit in lieu of tax
credits under section 54A. For qualified
school construction bonds and qualified
zone academy bonds the amount of the
refundable credit allowed is equal to the
lesser of:
1. the amount of interest payable
under such bond on such date, or
2. the amount of interest which would
have been payable under such bond on
such date if such interest were
determined at the applicable credit rate
determined under section 54A(b)(3).
For qualified energy conservation bonds
and new clean renewable energy bonds,
the amount of the refundable credit
allowed is equal to the lesser of:
1. the amount of interest payable
under such bond on such date, or
2. 70% of the amount of interest
which would have been payable under
such bond on such date if such interest
were determined at the applicable credit
rate determined under section 54A(b)(3).
For specified tax credit bonds with
multiple bond maturities, the refundable
credit payment is determined separately
with respect to each maturity. See the
instruction for line 5, Part II. Specified tax
credit bonds are treated as qualified
bonds for purposes of section 6431. For

more information on specified tax credit
bonds see Notice 2010-35.
Note. Only issuers of specified tax credit
bonds that qualify for and have elected to
receive a refundable credit under section
6431(f) may file Form 8038-CP. If the
issuer of a specified tax credit bond
makes the election under section 6431(f),
the holder of the bond will not be eligible
to receive a tax credit under section 54A.
Other tax credit bonds, including
qualified forestry conservation bonds,
clean renewable energy bonds, and
Midwestern tax credit bonds, are not
eligible to elect to receive direct payments
under section 6431(f).

Purpose of Form
Form 8038-TC is used by the issuers of
the qualified tax credit bonds and
specified tax credit bonds listed below
under Who Must File, to provide the IRS
with the information required by section
149(e).

Who Must File–Qualified Tax
Credit Bonds
Issuers of the following bonds must file a
separate Form 8038-TC for each tax
credit bond issue issued after March
2010.
• Qualified forestry conservation bonds,
• New clean renewable energy bonds,
• Qualified energy conservation bonds,
• Qualified zone academy bonds,
• Qualified school construction bonds,
• Clean renewable energy bonds,
• Midwestern tax credit bonds, and
• All other qualified tax credit bonds
(except build America bonds which
should be reported on Form 8038-B,
Information Return for Build America
Bonds and Recovery Zone Economic
Development Bonds).

Who Must File–Specified Tax
Credit Bonds
Issuers of the following specified tax
credit bonds must file a separate Form
8038-TC for each specified tax credit
bond issue.
• New clean renewable energy bonds,
• Qualified energy conservation bonds,
• Qualified zone academy bonds, and
• Qualified school construction bonds.

When To File
File Form 8038-TC on or before the 15th
day of the 2nd calendar month after the
close of the calendar quarter in which the
bond was issued. Form 8038-TC may not
be filed before the issue date and must be
Cat. No. 54164P

completed based on the facts as of the
issue date.
For specified tax credit bonds, Form
8038-TC must be filed at least 30 days
prior to the submission of the first Form
8038-CP, Return for Credit Payments to
Issuers of Qualified Bonds, that is filed to
request payment with respect to an
interest payment date for that issue.
Failure to complete this form, including
the attached schedules may result in a
delay in processing this form. All attached
schedules must include the issuer’s name
and EIN at the top.
Late filing An issuer may be granted an
extension of time to file Form 8038-TC
under section 3 of Rev. Proc. 2002-48,
2002-37 I.R.B. 531, if it is determined that
the failure to file timely is not due to willful
neglect. Type or print at the top of the
form, “Request for Relief under section 3
of Rev. Proc. 2002-48.” Attach to the
Form 8038-TC a letter explaining why
Form 8038-TC was not filed on time. Also
indicate whether the bond issue in
question is under examination by the IRS.
Do not submit copies of the trust
indenture or other bond documents.
Note. If Form 8038-TC is filed late for
specified tax credit bonds, it still must be
filed 30 days prior to the submission of
the first Form 8038-CP for that issue.

Where To File
File Form 8038-TC and any attachments
with Department of the Treasury, Internal
Revenue Service Center, Ogden, UT
84201.
Private delivery services. You can use
certain private delivery services
designated by the IRS to meet the “timely
mailing as timely filing/paying” rule for tax
returns and payments. These private
delivery services include only the
following:
• DHL Express (DHL): DHL Same Day
Service.
• Federal Express (FedEx): FedEx
Priority Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Priority, and FedEx
International First.
• United Parcel Service (UPS): UPS Next
Day Air, UPS Next Day Air Saver, UPS
2nd Day Air, UPS 2nd Day Air A.M., UPS
Worldwide Express Plus, and UPS
Worldwide Express.
The private delivery service can tell
you how to get written proof of the mailing
date.

Other Forms That May Be
Required
For submitting payment of arbitrage
rebate to the Federal Government use
Form 8038-T, Arbitrage Rebate, Yield
Reduction and Penalty in Lieu of
Arbitrage Rebate. For reporting build
America bonds, both tax credit and direct
pay, including recovery zone economic
development bonds, use Form 8038-B.
For issuers of specified tax credit
bonds who elect under section 6431 to
receive a direct payment of a refundable
credit from the Federal Government, the
payment must be requested on Form
8038-CP. Each Form 8038-CP can only
relate to the interest paid on a single bond
issue. Issuers of specified tax credit
bonds with multiple maturities must file a
separate Form 8038-CP for each
maturity.

Rounding to Whole Dollars
You should report the money items on
this return as whole dollars. To do so,
drop amounts less than 50 cents and
increase amounts from 50 cents through
99 cents to the next higher dollar.

Questions on Filing Form
8038-TC
For specific questions on how to file Form
8038-TC send an email to the IRS at
TaxExemptBondQuestions@irs.gov
and put “Form 8038-TC Questions” in the
subject line. In the email include a
description of your question, a return
email address, the name of a contact
person, and a telephone number.

Definitions
Tax credit bond. An obligation issued
under sections 54, 54A, or 1400N(l) that
entitles the taxpayer holding such bond
on one or more credit allowance dates
occurring during any taxable year to a
credit against the federal income tax
imposed for that taxable year.
Qualified forestry conservation bond.
An obligation that is part of an issue 100
percent of the available project proceeds
of which are to be used to finance one or
more qualified forestry conservation
purposes as defined in section 54B.
Qualified zone academy bond. An
obligation that is part of an issue 100
percent of the available project proceeds
of which are to be used for a qualified
purpose with respect to a qualified zone
academy established by an eligible local
education agency as provided in section
54E.
Qualified school construction bond.
An obligation that is part of an issue 100
percent of the available project proceeds
of which are to be used for the
construction, rehabilitation, or repair of a
public school facility or for the acquisition
of land on which such a facility is to be
constructed with the proceeds as set forth
in section 54F.
Clean renewable energy bond. An
obligation that is part of an issue 95

percent or more of the proceeds of which
are to be used for capital expenditures
incurred by qualified borrowers for one or
more eligible clean renewable energy
projects as defined in section 54.
New clean renewable energy bond. An
obligation that is part of an issue 100
percent of the available project proceeds
of which are to be used for capital
expenditures incurred by governmental
bodies, public power providers, or
cooperative electric companies for one or
more qualified renewable energy facilities
as defined in section 54C.
Qualified energy conservation bond.
An obligation that is part of an issue 100
percent of the available project proceeds
of which are to be used for one or more
qualified energy conservation purposes
as defined in section 54D.
Midwestern tax credit bond. An
obligation that is part of an issue of bonds
issued in connection with Midwestern
disaster areas in any state in which a
Midwestern disaster area is located. See
section 1400N(l) for more information
about these requirements.
Issue. Generally, bonds are treated as
part of the same issue if they are issued
by the same issuer, on the same date,
and in a single transaction, or series of
related transactions.
Issue price. The issue price of
obligations is generally determined under
Regulations section 1.148-1(b). Thus,
when issued for cash, the issue price is
the price at which a substantial amount of
the obligations are sold to the public. To
determine the issue price of an obligation
issued for property, see sections 1273
and 1274 and the related income tax
regulations.
Sale proceeds. Sale proceeds are
determined under Regulations section
1.148-1(b) as any amount actually or
constructively received from the sale of
the issue, including amounts used to pay
underwriters’ discount or compensation
and accrued interest, other than
pre-issuance accrued interest. Sale
proceeds also include, but are not limited
to, amounts derived from the sale of a
right that is associated with a bond, and
that is described in Regulations section
1.148-4(b)(4). Sale proceeds shall also
include the proceeds from the sale of
credit strips. See also Regulations section
1.148-4(h)(5) treating amounts received
upon the termination of certain hedges as
sale proceeds.
Arbitrage. The issuer must comply with
the arbitrage requirements of sections
148 and 54A.

Specific Instructions
Part I—Reporting Authority
Amended return. An issuer may file an
amended return to change or add to the
information reported on a previously filed
return for the same date of issue. If you
are filing to correct errors or change a
previously filed return, check the

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“Amended Return” box in the heading of
the form.
The amended return must provide all
the information reported on the original
return, in addition to the new or corrected
information. Attach an explanation of the
reason for the amended return and write
across the top, “Amended Return
Explanation.”
Line 1. Enter the name of the entity
issuing the bonds, not the name of the
entity receiving the benefit of the
financing.
Line 2. An issuer that does not have an
employer identification number (EIN)
should apply for one on Form SS-4,
Application for Employer Identification
Number. You can get this form on the IRS
website at www.irs.gov or by calling
1-800-TAX-FORM (1-800-829-3676). You
may receive an EIN by telephone by
following the instructions for Form SS-4.
Line 3. If the issuer wishes to authorize
a person other than an officer of the
issuer (including a legal representative or
paid preparer) to communicate with the
IRS and whom the IRS may contact with
respect to this return (including in writing
or by telephone), enter the name of such
person here. The person listed in line 3
must be an individual. Do not enter the
name and title of an officer of the issuer
here (use line 10 for that purpose).
Note. By authorizing a person other
than an authorized officer of the issuer to
communicate with the IRS and whom the
IRS may contact with respect to this
return, the issuer authorizes the IRS to
communicate directly with the individual
entered in line 3 and consents to disclose
the issuer’s return information to that
individual, as necessary, in order to
process this return.
Line 4. This line is for IRS Use Only. Do
not make any entries in the boxes.
Lines 5 and 6. If you listed in line 3 a
person other than an officer of the issuer
(including a legal representative or paid
preparer) to communicate with the IRS
and whom the IRS may contact with
respect to this return, enter the number
and street (or P.O. Box if mail is not
delivered to the street address) and city,
town, or post office, state, and ZIP code
of that person. Otherwise, enter the
issuer’s number and street (or P.O. Box if
mail is not delivered to the street address)
and city, town, or post office, state, and
ZIP code.
Line 7. The date of issue is generally the
date on which the issuer exchanges the
bonds for the underwriter’s (or other
purchaser’s) funds.
Line 8. If there is no name of the issue,
please provide other identification of the
issue.
Line 9. Enter the Committee on Uniform
Securities Identification Procedures
(CUSIP) number of the latest maturity on
line 9. Attach a schedule with a complete
list of CUSIP numbers for each bond. If
some or all of the tax credits are stripped,
attach a schedule with the name of each

purchaser of the tax credit bonds or tax
credit strips, each purchaser’s EIN, and
the CUSIP numbers associated with the
bonds and the stripped tax credits. If the
issue does not have a CUSIP number,
write, “None.” If the issue either has no
CUSIP number or is privately placed,
attach a schedule with each purchaser’s
EIN, name, and address.
Line 10. Enter the name and title of the
officer of the issuer whom the IRS may
call for more information. If the issuer
entered in line 3 the name of a person
other than an officer of the issuer
(including a legal representative or paid
preparer) to communicate with the IRS
and whom the IRS may contact with
respect to this return (including in writing
or by telephone), leave line 10 blank.
Line 11. Enter the telephone number of
the person whom the IRS may contact for
more information identified in line 3 or line
10, as applicable.

Part II—Type of Issue
Line 1. Identify the type of tax credit
bonds issued by entering the
corresponding three digit code as follows:
• 101 - Qualified forestry conservation
bonds,
• 102 - New clean renewable energy
bonds,
• 103 - Qualified energy conservation
bonds,
• 104 - Qualified zone academy bonds,
• 105 - Qualified school construction
bonds,
• 106 - Clean renewable energy bonds,
• 107 - Midwestern tax credit bonds, and
• 108 - Other.
Line 2. Enter type of bond.
Line 3. If the issuer has made an
irrevocable election to apply section
6431(f) check “Yes,” if not, check “No.” If
“No,” skip lines 4 and 5.
Line 4. Enter the first interest payment
date. An interest payment date is the date
on which interest is payable by the
governmental issuer to the holders of the
bonds. (For variable rate issues, enter the
last interest payment date applicable to
the quarterly period for which the first
8038-CP for the issue will relate.) Enter
the date in an MM/DD/YYYY format.
Line 5. Check the box indicating the
interest payment date frequency. In
addition, issuers of specified tax credit
bonds must attach a debt service
schedule to the Form 8038-TC which
contains the information described below
for the bond issue.
1. For fixed-rate bonds, attach a
complete debt service schedule titled
“Fixed Rate Bond – Debt Service
Schedule” that provides a list of each
interest payment date, the total interest
payable on such date, the total principal
amount of bonds expected to be
outstanding on such date, the interest
rate, the refundable credit payment
expected to be requested from the IRS as
allowed under section 6431(f) on such

date, and the earliest date that the bonds
can be called.
Determining the refundable credit
payment under section 6431(f) for
specified tax credit bonds with a single
maturity. For QZABs or QSCBs, the
amount of refundable credit payment with
respect to an interest payment date is
equal to the lesser of the amount of
interest payable on such bond on the
interest payment date or 100% of the
amount of interest which would have
been payable under such bond on the
interest payment date if the interest were
determined at the applicable credit rate
determined under section 54A(b)(3). For
new CREBs and QECBs, the amount of
refundable credit payment with respect to
an interest payment date is equal to the
lesser of the amount of interest payable
on such bond on the interest payment
date or 70% of the amount of interest
which would have been payable under
such bond on the interest payment date, if
the interest were determined at the
applicable credit rate determined under
section 54A(b)(3).
Determining the refundable credit
payment under section 6431(f) for
specified tax credit bonds with multiple
maturities. The refundable credit payment
for specified tax credit bonds with multiple
maturities is determined separately for
each bond maturity by comparing the
interest payable on each bond maturity
with the interest that would have been
payable on such bond maturity if the
interest on such bond maturity were
calculated using the applicable credit rate
and summing up the lesser of the two
amounts with respect to each bond
maturity. For example, if an issue consists
of two bond maturities, one with a 2-year
maturity with an interest rate of 2% and
one with a 15-year maturity with an
interest rate of 6%, while the applicable
credit rate as of the sale date of the issue
is 5%, the allowable refundable credit with
respect to interest payment date 1 would
be the sum of the amount that equals 2%
of the 2-year bond maturity and the
amount that equals 5% of the 15-year
bond maturity. If the issue is an issue of
new CREBs or QECBs, the amount of
interest that would have been payable if
the interest were calculated using the
applicable credit rate would be calculated
by reducing the interest that would be
payable by multiplying such interest by
.70 (70%) with respect to each bond
maturity. In the example above, the
refundable credit payment with respect to
interest payment date 1 for the 2-year
maturity would be 2% and for the 15-year
maturity would be 3.5% of the outstanding
bond maturity.
2. For variable rate bonds, attach a
debt service schedule titled “Variable
Rate Bond – Debt Service Schedule” that
provides a list of each interest payment
date, the total principal amount of bonds
expected to be outstanding on such date,
and a description of how interest on the
bonds is computed. However, if the issuer

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knows the interest amount for a certain
period, for that period the issuer should
provide the refundable credit payment
expected to be requested from the IRS as
allowed under section 6431(f).
Note. If the bond issue reported on this
Form 8038-TC constitutes both fixed rate
bonds and variable bonds, a separate
schedule must be entered for each of the
bonds.

Part III—Description of
Obligations
Line 1. See issue price under Definitions
on page 2.
Line 2. The stated redemption price at
maturity of the entire issue is the sum of
the stated redemption prices at maturity
of each bond issued as part of the issue.
Line 3. Enter the last date on which any
of the bonds will mature. If more than one
maturity, attach a schedule for each
principal payment date.
Line 4. The applicable credit rate is the
daily rate set by the Secretary under
section 54A(b)(3) determined as of the
first day on which there is a binding,
written contract for the sale or exchange
of the bond. Carry the percent out to two
decimal places, do not round (for
example, 10.74%). Such a rate is posted
by the Bureau of Public Debt on its
internet site for State and Local
Government Series securities at www.
treasurydirect.gov. See Notice 2009-15
which is on page 449 of Internal Revenue
Bulletin 2009-6 at www.irs.gov/pub/
irs-irbs/irb09-06.pdf.
Line 5. Enter the maximum term set by
the Secretary under section 54A(d)(5)
applicable during each calendar month in
which the tax credit bonds are sold. Carry
the year out to two decimal places, do not
round. Enter zeroes in the last two
positions (for example, 10.00). The
maximum term is posted by the Bureau of
Public Debt on its internet site for State
and Local Government Series securities
at www.treasurydirect.gov.
Line 6. Enter the applicable maximum
permitted yield for the sinking fund
expected to be used to repay the issue
under section 54A(d)(4)(C). Carry the
percent out to four decimal places, do not
round. Enter zeroes in the last two
positions (for example, 10.7400%). The
permitted sinking fund yield is set by the
Secretary consistent with the maximum
term determined under section 54A(d)(5)
and is posted by the Bureau of Public
Debt on its internet site for State and
Local Government Series securities at
www.treasurydirect.gov.
Line 7. For specified tax credit bonds
enter the interest rate on the bonds and
carry the interest rate out to four decimal
places. For specified tax credit bonds with
more than one maturity, enter the interest
rate of the latest maturity. If the issue is a
variable rate issue, leave blank.
Line 8. For specified tax credit bonds, if
the issue is a variable rate issue, check

the box on 8a. Enter the frequency that
rates are reset on line 8b.

Part IV—Proceeds of Issue
Line 1. See Sale proceeds, under
Definitions on page 2.
Note. If the bond is stripped at issuance,
line 1 must include sale proceeds of the
principal and sale proceeds of the credit
strips.
Line 2. Enter the amount of the
proceeds that will be used to pay bond
issuance costs, including underwriter’s
fees, fees for trustees, and bond counsel.
Note. Bond issuance costs for tax credit
bonds issued under section 54A are
limited to 2 percent of sale proceeds.
Line 3. Estimate expected investment
proceeds on the sale proceeds of the
issue, including proceeds received by the
issuer from the sale of tax credits that
have been stripped from the bonds.
Line 4. For all tax credit bonds issued
under section 54A expected available
project proceeds shall be calculated by
subtracting line 2 from line 1 and adding
line 3.
For Midwestern tax credit bonds (Code
107) and for clean renewable energy
bonds (Code 106) read line 4 by
substituting “proceeds” for “available
project proceeds,” add lines 1 and 3, and
enter that amount on line 4. Do not
subtract line 2, bond issuance cost.
Line 5. For Midwestern tax credit bonds,
insert the amount of state pledged
matching funds.
Line 6. Enter any amount of proceeds
not otherwise itemized in lines 1-5 and
describe the purpose for which the
proceeds are to be used.
Line 7. Total proceeds equal the sum of
lines 4 through 6.
Note. For Midwestern tax credit bonds
matching pledged funds are included in
total proceeds for the purpose of
determining the percentage of proceeds
to be used for qualified purpose
expenditures. Thus, for Midwestern tax
credit bonds matching pledged funds as
well as bond proceeds must be
accounted for in Part V. For qualified tax
credit bonds issued under section 54A,
lines 4 and 7, available project proceeds
and total proceeds, respectively, should
equal the same amount.

Part V—Description of Use of
Proceeds for Qualified Purpose
Expenditures
Lines 1a through 12. Enter the dollar
amount of proceeds allocated to each
qualified purpose expenditure on the
corresponding line.
Line 13. Enter the dollar amount of
proceeds allocated to each qualified
purpose expenditure not otherwise
itemized in lines 1a through 12 and
describe the use of proceeds.

Line 14. Enter total qualified purpose
expenditures equal to the sum of amounts
entered in lines 1a through 13.
Line 15. To determine the percentage of
total proceeds to be used for qualified
purpose expenditures, divide line 14 in
Part V by line 7 in Part IV, then multiply
the result by 100.
Line 16. Determine the proceeds of the
issue used to reimburse the issuer for
amounts paid for a qualified purpose prior
to the issuance of the bonds. See
Regulations section 1.150-2.
Line 17. Subject to certain exceptions
under Regulations section 1.150-2(f), an
issuer must adopt an official intent, as
described in Regulations section
1.150-2(e), to reimburse itself for
preissuance expenditures within 60 days
after payment of the original expenditure.
Enter the date the official intent was
adopted.

Part VI—Allocation of National,
State, Tribal, or Local Bond
Limitation Amount
Line 1a. Enter the amount of volume cap
allocated to the issue by bond type.
Attach a copy of the national (for
example, from the Department of the
Treasury or IRS), state, tribal, or local
allocations with respect to the issue.
Check the tribal box if the allocation is
provided by the Department of Interior.
Failure to attach the appropriate
allocation certification will result in a delay
in processing this form. The appropriate
officials must certify that the issue has
been designated as one or more types of
qualified tax credit bonds. On the blank
line below 1a enter the year of allocation
and, if applicable, the amount of
carryforward allocation.
Lines 1b through 1d. Check the
corresponding box indicating whether the
allocation is national, local, state, or tribal.
Line 2. If the allocation is from a state,
enter the state abbreviation.

Part VII—Miscellaneous
Line 1a. Check the box if there is a
reserve fund described in section
54A(d)(4)(C) (sinking fund) that is
expected to repay the issue at maturity.
Line 1b. A reserve may be funded in
unequal periodic installments so long as it
is funded no sooner than in equal periodic
installments. Check the box if the reserve
fund is funded no sooner than in equal
periodic payments.
Line 1c. Check the box if either the
reserve fund is expected to result in an
amount greater than the amount
necessary to repay the issue or if the
yield on the reserve fund is greater than
the permitted sinking fund yield (entered
in Part III, line 6).
Line 1d. For purposes of monitoring the
arbitrage requirements of section 148,
such monitoring shall include the
arbitrage requirements of section 54A. If
the issuer has established such written
procedures, check the box.

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Line 2. The issuer must certify that
applicable state and local law
requirements governing conflicts of
interest are satisfied with respect to the
bond issue. See section 54A(d)(6). If
these requirements are met, check the
box in line 2.
Line 3. If some or all of the tax credits
are stripped, check the box.
Note. Submit the information required
under Part I, line 9.
Line 4. If an issuer fails to spend 100
percent of the available project proceeds
of the issue by the close of the 3-year
expenditure period (including any
extensions granted), the issuer must
redeem all of the nonqualified bonds
within 90 days after the end of such
expenditure period. See 54A(d)(2)(B). If
the issuer has established written
procedures to meet this requirement,
check the box.
Line 5. “Other” is reserved for future tax
credit bonds.

Signature and Consent
An authorized issuer representative must
sign Form 8038-TC and any applicable
certification. The authorized
representative of the issuer signing this
form must have the authority to consent
to the disclosure of the issuer’s return
information, as necessary to process this
return, to the person(s) that have been
designated in Form 8038-TC.
Note. If line 3 authorizes the IRS to
communicate (including in writing and by
telephone) with a person other than an
officer of the issuer, by signing this form,
the issuer’s authorized representative
consents to the disclosure of issuer’s
return information, as necessary to
process this return, to such person.

Paid Preparer
If an authorized officer of the issuer filled
in this return, the paid preparer’s space
should remain blank. Anyone who
prepares the return but does not charge
the organization should not sign the
return. Certain others who prepare the
return should not sign. For example, a
regular, full-time employee of the issuer,
such as a clerk, secretary, etc., should
not sign.
Generally, anyone who is paid to
prepare a return must sign it and fill in the
other blanks in the Paid Preparer’s Use
Only area of the return. The paid preparer
must:
• Sign the return in the space provided
for the preparer’s signature,
• Enter the preparer information, and
• Give a copy of the return to the issuer.

Part VIII—Consent to
Disclosure of Certain
Information From This Return
Line 1. If the issuer consents to the
IRS’s publication, through a website or
other publication, of its name and
address, employer identification number,
name and description of bond issue, date

of issuance, CUSIP numbers, issue price,
final maturity date, stated redemption
price at maturity, applicable credit rate
and maximum term to assist in the proper
reporting of interest, tax credits, or other
benefits under section 6049, check the
box next to “Yes.”
Note. Part VIII does not apply to issuers
of tax credit bonds that have elected
direct payment refundable credits under
section 6431(f).

Schedule A. New Clean
Renewable Energy Bonds
(New CREBs) Under
Sections 54A and 54C
Part I—Issuer Questions
Line 1. A public power provider is a state
utility with a service obligation as such
terms are defined in section 217 of the
Federal Power Act. If the issuer is a
public power provider, check “Yes.”
Line 2. A cooperative electric company
is a mutual or cooperative electric
company described in section 501(c)(12)
or section 1381(a)(2)(c). If the issuer is a
cooperative electric company, check
“Yes.”
Line 3. A governmental body is any
state or Indian tribal government, or any
political subdivision thereof. If the issuer
is a governmental body, check “Yes.”
Line 4. A clean renewable energy bond
lender is a lender which is a cooperative
owned by, or has outstanding loans to,
100 or more cooperative electric
companies and was in existence on
February 1, 2002, and shall include any
affiliated entity which is controlled by such
lender. If the issuer is a clean renewable
energy bond lender, check “Yes.”
Line 5. If the issuer is a not-for-profit
electric utility which has received a loan
or loan guarantee under the Rural
Electrification Act, check “Yes.”
Line 6. Notice 2009-33 provides that,
except in limited circumstances involving
reimbursements to which section
54A(d)(2)(D) applies, costs of acquiring
existing facilities generally will be treated
as nonqualified costs. If any of the
available project proceeds have been
used to acquire existing facilities, check
“Yes.”
Line 7. Notice 2009-33 provides that
refinancing costs (as contrasted with
costs of enhancements, repair or
rehabilitation of existing facilities),
generally will be treated as nonqualified
costs. If any of the available project
proceeds have been used to refinance
existing facilities, check “Yes.”
Line 8. Notice 2009-33 provides that an
allocation of new CREB volume cap
limitation is valid for 3 years after the date
of the letter issuing the allocation (the
“volume cap allocation date”). If the issue
date of the issue is on or before 3 years
after the volume cap allocation date,
check “Yes.”

Line 9. A new CREB must be
designated as such by a qualified issuer.
If these bonds have been designated as
new CREBs, check “Yes.” See section
54C(a) for more information.

Part II
For IRS use only. Do not make an entry in
line 1.

Part III—List of Qualified
Renewable Energy Facilities
Line 1. A “Qualified Renewable Energy
Facility” means a qualified facility as
determined under section 45(d) (without
regard to paragraphs (8) and (10) and to
any placed in service date) owned by a
public power provider, a governmental
body, or a cooperative electric company.
List the type of qualified renewable
energy facility to be financed by the
bonds, the location of the facility, the
owner(s) of the facility, the owner’s EIN,
and the amount of available project
proceeds to be used for that facility. (If
more than one facility, attach a schedule.)

Schedule B. Qualified
Energy Conservation
Bonds (QECBs) Under
Sections 54A and 54D
Part I—Issuer and Project
Questions
Line 1. A QECB must be designated as
such by the issuing state or local
government. See section 54D(a). If these
bonds have been designated as QECBs,
check “Yes.”
Line 2. Section 54D(e)(2)(B) provides
that the amount allocated to a large local
government may, if unused, be
reallocated by such local government to
the state in which such local government
is located. If the bonds are issued based
on an allocation that has been reallocated
from a large local government to a state,
check “Yes.”
Line 3. A large local government means
any municipality or county if such
municipality or county has a population of
100,000 or more. If the issuer is a large
local government, check “Yes.”
Line 6. If the issuer issued the bonds
based on a volume cap allocation
received by another authorized entity
(that allocated volume cap to the issue),
check “Yes.” If not, check “No.” If yes is
checked, provide the name of such
authorized entity. If more than one
authorized entity allocated volume cap to
the bond issue, attach a schedule listing
the names of, and amount of bonds for,
each such authorized entity. If the box on
line 6 is checked “Yes,” failure to insert
the name of the other authorized entity
that allocated volume cap to the issue
may result in a delay in processing the
return.

-5-

Part II
For IRS use only. Do not make an entry in
line 1.

Part III—List of Conservation
Purposes, Location of the
Facilities, Amount of Proceeds
Used for the Purpose, Private
Activity User and Private User’s
EIN
Line 1. Eligible issuers of QECBs
include states, political subdivisions as
defined for purposes of section 103, and
entities empowered to issue bonds on
behalf of any such entity under rules
similar to those for determining whether a
bond issued on behalf of a state or
political subdivision constitutes an
obligation of that state or political
subdivision for purposes of section 103
and Regulations section 1.103-1(b).
Further, eligible issuers include otherwise
eligible issuers in conduit financing issues
(as defined in Regulations section
1.150-1(b)).
List each type of qualified conservation
purpose described under section 54D(f)
to be financed by the bonds, the location
of the facility (if applicable), and the
amount of available project proceeds to
be used for each qualified conservation
purpose. If the bonds are private activity
bonds, provide the name and EIN of the
private user(s). (If more than one
purpose, facility, owner, or user, attach
schedule.)

Schedule C. Qualified
Zone Academy Bonds
(QZABs) Under Sections
54A and 54E
Part I—Academy and Issuer
Information
Line 1. If the school is located in a
designated empowerment zone, check
“Yes.”
Line 2. If the school is located in a
designated enterprise community, check
“Yes.”
Line 5. If for any calendar year the
allocation for a state exceeds the amount
of bonds issued for such year, the
limitation may be carried over but only to
the first 2 years following the year in
which the unused limitation arose.
Limitation amounts are treated on a
first-in, first-out basis. If the bonds or any
portion of the bonds are issued under a
carryover limitation, check “Yes” and
enter the year in which the limitation
arose.
Line 7. In order for a bond to be a
“qualified zone academy bond,” the issuer
must certify that it has written
commitments from private entities to
make qualified contributions having a
present value (as of the date of issuance
of the issue) of not less than 10% of the
proceeds of the issue. If the eligible local

educational agency that established the
qualified zone academy has received
such written commitments, check “Yes.”
Line 9. A QZAB must be designated as
such by the issuing state or local
government within the jurisdiction where
the school is located. If these bonds have
been designated as QZABs, check “Yes.”
See section 54E(a)(3) for more
information.
Line 10. Write in the name of the local
education agency. Failure to provide the
name of the eligible education agency
may result in a delay in processing the
return.

Part II—Description of the
Private Business Contribution
Lines 1 through 4. Qualified private
business contributions under section
54E(d)(4) are: (a) equipment for use in
the qualified zone academy (including
state-of-the-art technology and vocational
equipment); (b) technical assistance in
developing curriculum or in training
teachers in order to promote appropriate
market driven technology in the
classroom; (c) services of employees as
volunteer mentors; (d) internships, field
trips, or other educational opportunities
outside the academy for students; or (e)
any other property or service specified by
the eligible local education agency. List
the value of the dollar amount of each
private contribution on the corresponding
line.
Line 5. For items not listed in lines 1
through 4, enter the value of the amount
contributed on line 5 and provide a
description of such contribution.

Part III—Private Business
Contributor
Lines 1 through 5. Enter the name and
EIN of the donor of the private business

contribution. (If more than 5 donors,
attach a schedule.)

Schedule D. Qualified
School Construction
Bonds (QSCBs) Under
Sections 54A and 54F
Part I— Use of Proceeds
Line 1. An Indian school is a school
funded by the Bureau of Indian Affairs.
Line 3. A QSCB must be designated as
such by the issuing state or local
government. See section 54F(a). If these
bonds have been designated as QSCBs,
check “Yes.”

Part II
For IRS use only. Do not make an entry in
line 1.

Part III— Issuer Information
Line 1. If the issuer is not the local
education agency in the jurisdiction of
which the public school facility for which
the proceeds will be used is located, enter
the name of such local education agency.
If the issuer is issuing bonds for more
than one local educational agency, attach
a schedule listing the names of, and
amount of bonds for, each such local
education agency.
Line 2. If the issuer issued the bonds
based on a volume cap allocation
received by another authorized entity
(that allocated volume cap to the issue),
provide the name of such authorized
entity. If more than one authorized entity
allocated volume cap to the bond issue,
attach a schedule listing the names of,
and amount of bonds for, each such
authorized entity.

-6-

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