Notice 2009-26, Build America Bonds and Direct Payment Subsidy Implementation

Forms and Documents

Document Name	Status
Emergency Justification Memorandum.doc Supplementary Document	2009-03-24
Build America Bonds Notice OMB Draft 3-23-09.doc Supplementary Document	2009-03-24
SSSREGS (OMB).doc Supporting Statement A	2009-03-24

IC Document Collections

IC ID	Document Title	Status
188507	Notice 2009-26, Build America Bonds and Direct Payment Subsidy Implementation	New

ICR Details

OMB Control No: 1545-2143	ICR Reference No: 200903-1545-024
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-XXXX-024 (ARRA [PL 111-5])
Title: Notice 2009-26, Build America Bonds and Direct Payment Subsidy Implementation
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 03/26/2009
OIRA Conclusion Action: Approved without change	Conclusion Date: 03/26/2009
	Date Received in OIRA: 03/25/2009
Terms of Clearance: OMB approves the PRA request with emergency clearance to meet American Reinvestment and Recovery Act requirements. This collection will be valid for six months. If Treasury decides to continue use of the collection past the approved emergency request clearance time period, it must resubmit to OMB under the normal PRA clearance process for a three-year approval.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2009	6 Months From Approved
Responses	5,000	0	0
Time Burden (Hours)	15,000	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: This Notice provides guidance on the new tax incentives for Build America Bonds under § 54AA of the Internal Revenue Code (“Code”) and the implementation plans for the refundable credit payment procedures for these bonds. This Notice includes guidance on the modified Build America Bond program for Recovery Zone Economic Development Bonds under § 1400U-2 of the Code. This Notice provides guidance on the initial refundable credit payment procedures, required elections, and information reporting. This Notice solicits public comments on the refundable credit payment procedures for these bonds. This Notice is intended to facilitate prompt implementation of the Build America Bond program and to enable state and local governments to begin issuing these bonds for authorized purposes to promote economic recovery and job creation.

Emergency Justfication: Section 1531 of Division B of the American Recovery and Reinvestment Act of 2009 (Recovery Act) added new section 54AA to the Internal Revenue Code which provides State and local governments with the option to issue taxable “Build America Bonds” to finance governmental purposes. Issuers of these bonds can elect to receive a refundable credit from the Federal government equal to a percentage of the interest payable on these bonds on each interest payment date. We are asking State and local governmental issuers of Build America Bonds to report the issuance of the bonds on an existing IRS form 8038-G and to provide debt service schedules that show the expected dates and amounts of interest that the issuers expect to receive from the Federal government over the life of the bonds. This Notice must be issued immediately in order to provide the procedures for the issuance of Build America Bonds, including the procedures that must be followed to elect to receive payments of refundable credits directly from the Federal government. State and local governmental issuers are not able to issue Build America Bonds without the guidance contained in Notice 2009-26. Thus, we are requesting an emergency Paperwork Reduction Act review by March 26, 2009.

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Authorizing Statute(s): US Code: 26 USC 54A Name of Law: Credit to holders of qualified tax credit bonds.
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 5 1531 Name of Law: American Recovery and Reinvestment Act.

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Notice 2009-26, Build America Bonds and Direct Payment Subsidy Implementation

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	5,000	0	5,000	0	0	0
Annual Time Burden (Hours)	15,000	0	15,000	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: In accordance with section 1531 of the American Recovery and Reinvestment Act, this Notice is intended to facilitate prompt implementation of the Build America Bond program and to enable state and local governments to begin issuing these bonds for authorized purposes to promote economic recovery and job creation. This Notice provides guidance on the new tax incentives for Build America Bonds under § 54AA of the Internal Revenue Code (“Code”) and the implementation plans for the refundable credit payment procedures for these bonds. This Notice includes guidance on the modified Build America Bond program for Recovery Zone Economic Development Bonds under § 1400U-2 of the Code.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Yes

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/25/2009

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