Form 8912 Clean Renewable Energy Bond Credit and Gulf Bond Credit

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8912, PAGE 1 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
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8912

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

Part I

Action

Date

Signature

O.K. to print
Revised proofs
requested

Credit for Clean Renewable Energy
and Gulf Tax Credit Bonds

OMB No. 1545-2025

2005

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©

Attachment
Sequence No.
Identifying number

Attach to your tax return.

154

Section A. Clean Renewable Energy Bond Credit
(a)
Bond issuer’s name, city
or town, and state
1

2
3
4
5
6

(b)
(c)
Date bond
Date
disposed of
bond issued (if applicable)

(d)

Outstanding
bond principal

(e)
Credit
rate

(f)

(g)

(d) x (e)

%

Total credit. Add the amounts on line 1, column (h). See the instructions for how to report as interest
income

Clean renewable energy bond credits from partnerships, S corporations, estates, and trusts (see
instructions)
Add line 2 and line 3. Estates and trusts go to line 5; partnerships and S corporations, report this amount
on Schedule K; all others, go to Part II
Amount allocated to the beneficiaries of the estate or trust (see instructions)
Estates and trusts. Subtract line 5 from line 4. Use this amount to complete Part II

(h)
Credit
(f) x (g)

2
3
4
5
6

Section B. Gulf Tax Credit Bond Credit
(a)
Bond issuer’s name, city
or town, and state

(b)
(c)
Date bond
Date
disposed of
bond issued (if applicable)

(d)
Outstanding
bond principal

(e)
Credit
rate

(f)

(g)

(d) x (e)

%

(h)
Credit
(f) x (g)

7

8
9
10
11
12

Total credit. Add the amounts on line 7, column (h). See the instructions for how to report as interest
income
Gulf tax credit bond credits from partnerships, S corporations, estates, and trusts (see instructions)
Add line 8 and line 9. Estates and trusts go to line 11; partnerships and S corporations, report this
amount on Schedule K; all others, go to Part II
Amount allocated to the beneficiaries of the estate or trust (see instructions)
Estates and trusts. Subtract line 11 from line 10. Use this amount to complete Part II

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 37722B

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Form

8912

(2005)

17
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8912, PAGE 2 of 4
MARGINS: TOP 13mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (81⁄ 2 ") x 279mm (11")
PERFORATE: NONE
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8912 (2005)

Part II
13

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15
16a

Allowable Credit

Page

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Regular tax before credits:
● Individuals. Enter the amount from Form 1040, line 44
● Corporations. Enter the amount from Form 1120, Schedule J, line 3, or the applicable
line of your return
● Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines
1a and 1b, or the amount from the applicable line of your return
Alternative minimum tax:
● Individuals. Enter the amount from Form 6251, line 35
● Corporations. Enter the amount from Form 4626, line 14
● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 56
Add line 13 and line 14
16a
Foreign tax credit
16b
Credits from Form 1040, lines 48 through 54
16c
Possessions tax credit (Form 5735, line 17 or 27)
16d
Qualified electric vehicle credit (Form 8834, line 20)
16e
Other specified credits (see instructions)
16f
General business credit (see instructions)
16g
Credit for prior year minimum tax
16h
Qualified zone academy bond credit (attach Form 8860)

b
c
d
e
f
g
h
i Add lines 16a through 16h
17 Net income tax. Subtract line 16i from line 15
18 Clean renewable energy bond credit allowed for the current year. Enter the smaller of line 4
or line 17 (if line 17 is smaller than line 4, see instructions). Estates and trusts, enter the smaller
of line 6 or 17 (if line 17 is smaller than line 6, see instructions). Report this amount (plus the
amount, if any, from line 20 below) on Form 1040, line 55; Form 1120, Schedule J, line 6f; Form
1041, Schedule G, line 2b; or the applicable line of your return
Note: If line 10 is zero or blank, stop here.
19 Subtract line 18 from line 17
20

2

Gulf tax credit bond credit allowed for the current year. Enter the smaller of line 10 or line 19
(if line 19 is smaller than line 10, see instructions). Estates and trusts, enter the smaller of line 12
or line 19 (if line 19 is smaller than line 12, see instructions). Report this amount (plus the amount,
if any, from line 18 above) on Form 1040, line 55; Form 1120, Schedule J, line 6f; Form 1041,
Schedule G, line 2b; or the applicable line of your return

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Form

8912

(2005)

17
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8912, PAGE 3 OF 4
MARGINS; TOP 13mm (1/2"), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (8-1/2") x 279mm (11")
PERFORATE: None
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Form 8912 (2005)

General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.

Purpose of Form
Use Form 8912 to claim the clean
renewable energy bond (CREB) credit
and the Gulf tax credit bond (GTCB)
credit. In lieu of receiving periodic
interest payments from the issuer, the
holder of the bond is generally allowed
an annual income tax credit. The credit
compensates the holder for lending
money to the issuer and functions as
interest paid on the bond.

Who Can Claim the Credits
A taxpayer holding a CREB and/or a
GTCB on 1 or more credit allowance
dates can claim either credit by filing
Form 8912 for each tax year in which it
holds a CREB and/or a GTCB on a
credit allowance date.
The credit allowance dates are:
● March 15,
● June 15,
● September 15, and
● December 15.
The credit allowance date also
includes the last day on which the CREB
or GTCB is outstanding.

Definitions
CREB. A CREB is any bond issued after
2005 by a qualified issuer, the
proceeds of which are used for capital
expenditures incurred by a qualified
borrower for a qualified project.
A qualified issuer is either a:
● Cooperative electric company—a
mutual or cooperative electric company
described in section 501(c)(12) or
1381(a)(2)(C), or a not-for-profit electric
utility which has received a loan or loan
guarantee under the Rural Electrification
Act,
● Clean renewable energy bond
lender—a lender that is a cooperative
which is owned by, or has outstanding
loans to, 100 or more cooperative electric
companies and is in existence on
February 1, 2002, and shall include any
affiliated entity which is controlled by
such lender, or
● Governmental body—any state,
territory, possession of the United States,
the District of Columbia, Indian tribal
government, and any political subdivision
thereof.
A qualified borrower is a mutual or
cooperative electric company described
in section 501(c)(12) or 1381(a)(2)(C) or a
governmental body.
A qualified project is any qualified
facility (as determined under section 45(d)
without regard to paragraph (10) and to
any placed in service date) owned by a
qualified borrower.

GTCB. A GTCB is any bond issued after
2005 by the state of Alabama, Louisiana,
or Mississippi and designated by the
governor of those states as a Gulf tax
credit bond the maturity of which does
not exceed 2 years. 95% or more of the
proceeds of the bonds are used to pay
principal, interest, or premiums on
qualified bonds issued by those states
or any political subdivision of those
states, or to make a loan to any political
subdivision of those states to pay
principal, interest, or premiums on a
qualified bond issued by that
subdivision.
A qualified bond for purposes of the
GTCB credit means any obligation of a
state or political subdivision which was
outstanding on August 28, 2005. This
term does not include any private
activity bond, any bond with respect to
which there is any outstanding refunded
or refunding bond during the period a
GTCB is outstanding with respect to
such bond, or any bond issued as part
of an issue if any portion of the
proceeds of such issue was (or is to be)
used to provide any property described
in section 144(c)(6)(B).

Example. Your tax year begins
December 1, 2005, and ends November
30, 2006. You were issued a GTCB on
March 16, 2006, and held it through the
end of the tax year ending November
30, 2006. You would enter 50%
computed as follows.

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Specific Instructions
Note. Separate entries and calculations
are required for each bond with a
different maturity and a different credit
rate.

Part I
Line 1, Column (c)
Line 7, Column (c)
Enter the date the bond was redeemed,
sold, or otherwise disposed of.

Line 1, Column (d)
Line 7, Column (d)
Enter the face amount of the CREB
and/or the GTCB minus any payment of
principal received.

Line 1, Column (e)
Line 7, Column (e)
The credit rate for the clean renewable
energy bond and the GTCB is the rate
published daily by the Bureau of the
Public Debt under “SLGS” on its Internet
website at www.publicdebt.treas.gov.
The rate is applied to the bond on the
first day on which there is a binding
contract in writing for the sale or
exchange of the bond.

Line 1, Column (g)
Line 7, Column (g)
Generally, you enter 25% for each credit
allowance date you hold a CREB and/or
GTCB during your tax year.

3

Credit allowance date
June 15, 2006
September 15, 2006

%
25
25
50

However, the 25% will be prorated if a
CREB and/or the GTCB is issued,
redeemed, or matures during the
3-month period ending on a credit
allowance date; the percentage of credit
allowed for that credit allowance date is
prorated for the number of days the
bond was outstanding during the
3-month period.
Example. Your tax year begins
December 1, 2005, and ends November
30, 2006. You were issued a CREB on
March 22, 2006. Since the bond was not
held for the entire 3-month period
ending on June 15, 2006, the prorated
portion of the 25% is figured (a) by
dividing the number of days the bond
was outstanding beginning on the date
the bond was issued and ending on the
next credit allowance date (b) by the
number of days included in the 3-month
period beginning on the day after the
credit allowance date and ending on the
next credit allowance date. See below.
86 days (number of days from
March 22 through June 15)
= .935 x 25% = 23%
92 days (number of days from
March 16 through June 15)

You would enter 48% computed as
follows.
Credit allowance date
June 15, 2006
September 15, 2006

%
23
25
48

Line 1, Column (h)
Line 7, Column (h)
This line represents the income tax
credit to the holder of a CREB and/or a
GTCB.

Lines 2 and 8
Interest Income
The current year credit on line 2 and/or
line 8 is deemed to be a payment of
qualified stated interest (as defined in
Regulations section 1.1273-1(c)) on the
credit allowance date. Therefore, a
holder on the accrual method must
accrue the credit amount as taxable
interest income on the credit allowance
date. If the holder buys or sells a bond
between credit allowance dates, the
amount of the credit with respect to

17
I.R.S. SPECIFICATIONS
INSTRUCTIONS TO PRINTERS
FORM 8912, PAGE 4 OF 4
MARGINS; TOP 13mm (1/2"), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
FLAT SIZE: 216mm (8-1/2") x 279mm (11")
PERFORATE: None
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Form 8912 (2005)

such credit allowance date is a ratable
portion of the credit based on the
portion of the 3-month period during
which the bond is outstanding.
If a holder of a CREB or GTCB sells
the bond between credit allowance
dates, part of the sales price is treated
as accrued interest to the date of the
sale and must be reported as interest
income. If a holder purchases a bond
between credit allowance dates, the
interest accrued as of the date of the
purchase (as reflected in the purchase
price) is not included as interest when
the purchaser receives the value of the
credit (and the deemed payment of
interest) on the next credit allowance
date. Instead, the payment of the
deemed interest is treated as a return of
capital to the extent of the accrued
interest at the time of purchase and
reduces the holder’s basis in the bond.

Lines 3 and 9
If you are receiving a credit from an S
corporation, partnership, estate, or trust
(pass-through entity), you will receive
information from that entity providing the
credit associated with each credit
allowance date.

Lines 5 and 11
Estates and trusts. Allocate the CREB
credit and/or the GTCB credit on line 4
and/or line 10 between the estate or
trust and the beneficiaries in the same
proportion as income was allocated and
enter the beneficiaries share on line 5
and/or line 11.

Part II—Allowable Credit
The credit allowed for the current year
may be limited based on your tax
liability. Use Part II to figure the
allowable credit.

Line 16e
Include on line 16e any amounts claimed
on:
● Form 8910, Alternative Motor Vehicle
Credit, line 18 and
● Form 8911, Alternative Fuel Vehicle
Refueling Property Credit, line 19.

Line 16f

The result(s) computed separately above
for each interest in a pass-through entity
cannot exceed line 17. If in the current
tax year you had no taxable income
attributable to a particular interest in a
pass-through entity, you cannot claim
any CREB or GTCB credit this year with
respect to that interest.

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If you are filing Form 3800, General
Business Credit, enter the credit from
Form 3800. Also include any credit from
Form 8844, Empowerment Zone and
Renewal Community Employment Credit,
Form 6478, Credit for Alcohol Used as
Fuel, or Section B of Form 8835,
Renewable Electricity, Refined Coal, and
Indian Coal Production Credit.

Lines 18 and 20

If you do not have an entry space for
these credits on your tax return, enter
the allowable credit on the “Total
credits” line with the notation “CREB”
and/or “GTCB.”

If you cannot use all of the credit in
Part II because of the tax liability limit
(for example, line 4 is more than line 18),
a deduction is allowed for any unused
credit for the current tax year that
includes the credit allowance date.
However, you can choose to deduct the
unused credit in the next tax year
instead of the current tax year.
Note. If the holder of a CREB or GTCB
is a pass-through entity, the shareholder,
partner, or beneficiary takes the
deduction, not the pass-through entity.
Because this deduction may further
reduce the tax liability limit, the holder
may need to refigure the tax liability limit
and the unallowed credit. Refigure the
unallowed credit until it equals the
deduction. It may be necessary to use
the “trial and error” method.

Limitation on credit from
pass-through entities. If you are an
individual that receives a CREB and/or
GTCB from a pass-through entity, the
credits on line 3 and/or line 9 are limited
to the amount of tax attributable to your
taxable income from your interest in the
pass-through entity generating the
credit. Figure the credit limitation
separately for each interest in a
pass-through entity using the following
formula:
Taxable income attributable to your
interest in the pass-through entity
Line 17 x
Your taxable income for the year

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