Form 8912 Credit to Holders of Tax Credit Bonds

TLS, have you
transmitted all R
text files for this
cycle update?

Date

10
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
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

Action

Date

Signature

O.K. to print
Revised proofs
requested

APPROVED FOR TPCC CHAIRPERSON "AS CORRECTED," JOHNNY CERVANTES 4/13/2009

Form

8912

Credit to Holders of Tax Credit Bonds

Department of the Treasury
Internal Revenue Service

Name(s) shown on return

Part I
1
2
3

Current Year Credit

4

2008

f
o
s
a
9
t
0
f
0
a
2
r
/
D /07
4
0
©

Attachment
Sequence No.
Identifying number

Attach to your tax return.

©
©

(b)

Outstanding bond
principal (or for build
America bonds,
interest payable)

(c)
Credit
rate

(d)
Multiply
(b) x (c)

Add the amounts on line 4, column (f)

6

For a new clean renewable energy bond or a qualified energy conservation bond, multiply the
amount on line 5 by 70% (.70). For a clean renewable energy bond, Gulf tax credit bond,
Midwestern tax credit bond, qualified forestry conservation bond, qualified zone academy bond,
qualified school construction bond, or build America bond, enter the amount from line 5. See the
instructions for how to report as interest income
Enter the line 6 amount from page 1 of Form 8912 for each additional bond, if more than one (see
instructions)

8
9

10
11

(e)
%

Bond credits from partnerships, S corporations, estates, and trusts
Total credit. Add lines 6 through 8. Estates and trusts figuring the credit for a clean renewable
energy bond, Gulf tax credit bond, or Midwestern tax credit bond, go to line 10; 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 10 from line 9. Use this amount to complete Part II

For Paperwork Reduction Act Notice, see instructions.

(f)
Multiply
(d) x (e)

5

5

7

154

©

Bond issuer’s name, city or town, and state
Date bond issued
Date bond disposed of (if applicable)

(a)
Principal payment dates (or for build
America bonds, interest payment dates)

OMB No. 1545-2025

Cat. No. 37722B

(please extend line to box 11)

6
7
8

9
10
11
Form

8912

(2008)

10
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 (2008)

Part II
12

13

14
15a

b
c
d
e
f
g
h
16
17
(delete "s")

Allowable Credit

Page

f
o
%
s
a
9
t
0
%
f
0
a
2
r
/
D /07
4
0

Regular tax before credits:
● Individuals. Enter the amount from Form 1040, line 44 or Form 1040NR, line 41
● Corporations. Enter the amount from Form 1120, Schedule J, line 2, 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 36
● Corporations. Enter the amount from Form 4626, line 14
● Estates and trusts. Enter the amount from Schedule I (Form 1041), line 56
Add line 12 and line 13
15a
Foreign tax credit
15b
Personal credits from Form 1040 or 1040NR (see instructions)
15c
Credit from Form 8834
15d
Alternative motor vehicle credit (Form 8910, line 18)
15e
Alternative fuel vehicle refueling property credit (Form 8911, line 19)
15f
General business credit (see instructions)
Credit for prior year minimum tax (Form 8801, line 28; or Form
15g
8827, line 8b)
Add lines 15a through 15g
Net income tax. Subtract line 15h from line 14
Credit to holders of tax credit bonds allowed for the current year. Enter the smallest of line
9, line 16, or the amount as limited by the formula in the instructions for line 17 (if line 17 is smaller
than line 9, see instructions). Estates and trusts, enter the smallest of line 11, line 16, or the
amount as limited by the formula in the instructions for line 17 (if line 17 is smaller than line 11, see
instructions). Report this amount on Form 1040, line 54 or Form 1040NR, line 49; Form 1120,
Schedule J, line 5e; Form 1041, Schedule G, line 3; or the applicable line of your return

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

What’s New
Holders of qualified zone academy bonds that
were issued before October 4, 2008, under
section 1397E must now use Form 8912 to
claim the credit.
The following tax credit bonds have been
created and were added to the form.
● The Energy Improvement and Extension
Act of 2008 added the new clean renewable
energy bonds and the qualified energy
conservation bonds.
● The Tax Extenders and Alternative
Minimum Tax Relief Act of 2008 added the
Midwestern tax credit bonds.
● The Food, Conservation, and Energy Act of
2008 added the qualified forestry
conservation bonds.
● The American Recovery and Reinvestment
Tax Act of 2009 added the qualified school
construction bonds and build America bonds.

Purpose of Form
Use Form 8912 to claim the credit for the
following tax credit bonds.
● Clean renewable energy bond (CREB).
● Gulf tax credit bond (GTCB).
● Midwestern tax credit bond (MTCB).
● Qualified forestry conservation bond
(QFCB).
● New clean renewable energy bond
(NCREB).

2

12

13

14

15h
16

17

● Qualified energy conservation bond
(QECB).
● Qualified zone academy bonds (QZAB).
● Qualified school construction bond (QSCB).
● Build America bond (BAB).
Generally, in lieu of receiving periodic
interest payments from the issuer, the holder
of the bond is 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. Build America
bond holders receive taxable interest from the
issuer in addition to being allowed an annual
income tax credit.

Holders of QZABs issued before October 4,
2008. An eligible taxpayer holding a QZAB on
the credit allowance date can claim the credit
by filing Form 8912. To be an eligible
taxpayer, the taxpayer must be a bank,
insurance company, or other corporation
actively engaged in the business of lending
money. In addition, the shareholder of an
S corporation may claim the credit from an
S corporation that is an eligible taxpayer. The
credit allowance date is the last day of: (a)
the 1-year period beginning on the date the
bond was issued and (b) each successive
1-year period thereafter. See section 1397E
(as in effect on October 3, 2008).

Note. Beginning in 2008, holders of QZABs
who previously figured their credit on Form
8860, Qualified Zone Academy Bond Credit,
must now use Form 8912 to figure their
credit. Form 8860 has been obsoleted for tax
years beginning after 2007.

IMPORTANT: QZABs issued after October 3,
2008, are considered qualified tax credit
bonds and the rules of section 54E apply.
Holders of BABs. A taxpayer holding a BAB
on an interest payment date can claim the
credit by filing Form 8912. An interest
payment date is any date on which the
bondholder of record is entitled to a payment
of interest under the bond.

Who Can Claim the Credits
A taxpayer holding a CREB, GTCB, MTCB, or
qualified tax credit bond (a qualified tax credit
bond does not include a QZAB issued before
October 4, 2008) on 1 or more credit
allowance dates can claim the credit by filing
Form 8912 for each tax year in which it holds
the bond on a credit allowance date.
Generally, 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 qualified tax credit
bond 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.
In addition, the bond must be designated by
the issuer as a CREB under section 54. An
issuer can make such a designation only if it
applied for and received a CREB allocation
from the IRS.
A qualified issuer is either a:

(Change "Important" to Caution
icon, put text in italics)

10
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

by
Page

Form 8912 (2008)

by

by

● 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 that 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 including
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 with a maturity
of not more than 2 years that was issued
after 2005 and before 2007 by the state of
Alabama, Louisiana, or Mississippi, and
designated by the governor of that state as a
Gulf tax credit bond. At least 95% of the
proceeds of the bond must be used to pay
principal, interest, or premiums on qualified
bonds issued by that state or any political
subdivision thereof, or to make a loan to any
political subdivision thereof 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
for which there is any outstanding refunded
or refunding bond during the period a GTCB
is outstanding for 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).
MTCB. An MTCB is any bond with a maturity
of not more than 2 years that was issued
after 2008 and before 2010 by any state in
which a Midwestern disaster area is located
or any instrumentality of the state as a
Midwestern tax credit bond. At least 95% of
the proceeds of the bond must be used to
pay principal, interest, or premiums on
qualified bonds issued by that state or any
political subdivision, or to make a loan to any
political subdivision to pay principal, interest,
or premiums on a qualified bond issued by
that subdivision. A qualified bond for
purposes of the MTCB credit means any
obligation of a state or political subdivision
which was outstanding on the earliest
applicable disaster date for Midwestern
disaster areas within the state. This term does
not include any private activity bond, any
bond for which there is any outstanding
refunded or refunding bond during the period
an MTCB is outstanding for 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).

3

f
o
s
a
9
t
0
f
0
a
2
r
/
D /07
4
0
Qualified tax credit bond. A qualified tax
credit bond means a qualified forestry
conservation bond, new clean renewable
energy bond, qualified energy conservation
bond, qualified zone academy bond, or
qualified school construction bond that is a
part of an issue that meets the requirements
of section 54A(d)(2), (3), (4), (5), and (6).

QFCB. A QFCB is any bond issued after
May 22, 2008, a qualified issuer as a
qualified forestry conservation bond and
100% of the available project proceeds are
used for one or more qualified forestry
conservation purposes.
A qualified issuer for purposes of the
QFCB is a state or any political subdivision or
instrumentality thereof, or a 501(c)(3)
organization (as defined in section 150(a)(4)).

Qualified forestry conservation purpose
means the acquisition by a qualified issuer
from an unrelated person of forest and forest
land that meets the following qualifications.
● Some portion of the land acquired must be
adjacent to the United States Forest Service
Land.
● At least half of the land acquired must be
transferred to the United States Forest
Service at no net cost to the United States
and not more than half of the land acquired
may either remain with or be conveyed to a
State.
● All of the land must be subject to a native
fish habitat conservation plan approved by
the United States Fish and Wildlife Service.
● The amount of acreage acquired must be
at least 40,000 acres.

NCREB. An NCREB is any bond issued after
October 3, 2008, a qualified issuer as a new
clean renewable energy bond and 100% of
the available project proceeds are used for
capital expenditures incurred by governmental
bodies, public power providers, or
cooperative electric companies for one or
more qualified renewable energy facilities.
A qualified issuer is a public power
provider, a cooperative electric company, a
governmental body, a clean renewable energy
bond lender, or a not-for-profit electric utility
that has received a loan or loan guarantee
under the Rural Electrification Act.
A clean renewable energy bond lender is
a lender that is a cooperative that 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 that is controlled
by that lender.
A cooperative electric company is a
mutual or cooperative electric company
described in section 501(c)(12) or section
1381(a)(2)(C).
A governmental body is any state or Indian
tribal government, or any political subdivision
thereof.
A public power provider is a state utility
with a service obligation, as defined in section
217 of the Federal Power Act (as in effect on
October 3, 2008).
A qualified renewable energy facility is a
qualified facility (as determined under section
45(d) without regard to paragraphs (8) and (10)
thereof and to any placed in service date)
owned by a public power provider, a
governmental body, or a cooperative electric
company.

QECB. A QECB is any bond issued after
October 3, 2008, a state or local government
as a qualified energy conservation bond and
100% of the available project proceeds are
used for one or more qualified conservation
purposes. See section 54D(f) for the definition
of qualified conservation purposes.
QZAB. A QZAB is any bond issued by a state
or local government as a qualified zone
academy bond and 100% of the available
project proceeds are used to improve certain
eligible public schools (for QZABs issued
before October 4, 2008, 95% of the available
project proceeds are used to improve certain
eligible public schools).
QSCB. A QSCB is any bond issued after
February 17, 2009, by a state or local
government as a qualified school construction
bond and 100% of the available project
proceeds are for the construction,
rehabilitation, or repair of a public school
facility or for the acquisition of land on which
the bond-financed facility is to be constructed.
BAB. A BAB is any bond (other than a private
activity bond) issued after February 17, 2009
and before January 1, 2011, by an issuer who
makes an irrevocable election to have the
rules of section 54AA apply and except for
that election, the interest on the bond would
have been excludable under section 103.

Specific Instructions
Separate entries and calculations are required
for each bond with a different issuance date
or a different credit rate.
If you have more than one tax credit bond,
attach a statement for each bond showing
the information for lines 1 through 4 and
include the column 4(f) total for each
statement on line 5.

Part I—Current Year Credit
Line 3
Enter the date the bond was redeemed, sold,
or otherwise disposed of.

Line 4, Column (b)
Enter the face amount of the CREB, GTCB,
MTCB, qualified tax credit bond, or QZAB
(issued before October 4, 2008) minus any
payment of principal received. For a BAB,
enter the amount of interest payable.

Line 4, Column (c)
The credit rate for the CREB, GTCB, MTCB,
qualified tax credit bond, and QZAB (issued
before October 4, 2008) is the rate published
on the Treasury Direct website under “IRS
Tax Credit Bond Rates” at:
www.treasurydirect.gov/govt/rates/
rates_irstcb.htm for the first day on which
there is a binding contract in writing for the
sale or exchange of the bond.
The credit rate for QZABs issued before
July 1, 1999, is 110% of the long-term
applicable federal rate (AFR), compounded
annually, for the month and year the bond is
issued. The IRS announces the long-term
AFR monthly in a series of revenue rulings
published in the Internal Revenue Bulletin.
The credit rate for a BAB is 35%.
The credit rate for a BAB is 35%.

,

10
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
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

s

(

interest payment dates)

an additional page 1 of Form 8912
for each additional bond
Page

Form 8912 (2008)

Line 4, Column (e)
Generally, enter 25% for each credit
allowance date you hold a CREB, GTCB,
MTCB, or qualified tax credit bond during
your tax year. Enter 100% for a BAB, or a
QZAB issued before October 4, 2008.
Example. Your tax year begins December
1, 2008, and ends November 30, 2009. You
were issued a GTCB on March 16, 2009, and
held it through the end of the tax year ending
November 30, 2009. You would enter 50%
computed as follows.
Credit allowance date

%

June 15, 2009

25
25

September 15, 2009

50
However, the 25% will be prorated if a
CREB, GTCB, MTCB, or qualified tax credit
bond 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, 2008, and ends November 30, 2009. You
were issued a CREB on March 24, 2009.
Since the bond was not held for the entire
3-month period ending on June 15, 2009, the
prorated portion of the 25% is figured by
dividing (a) the number of days the bond was
outstanding beginning on the date the bond
was issued and ending on the next credit
allowance date by (b) 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.

d

Line 7

If you have more than one tax credit bond,
attach a statement for each bond showing
the information for lines 1 through 4 and
include the column 4(f) total for each
statement on line 5.

Line 10

Estates and trusts. Allocate the CREB,
GTCB, or MTCB credit on line 9 between the
estate or trust and the beneficiaries in the
same proportion as income was allocated
and enter the beneficiaries share on line 10.

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 15f
If you are filing Form 3800, General Business
Credit, enter the credit from Form 3800.

Line 6
Interest Income

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
applicable notation (for example, “CREB” or
“QECB”).
Holders of an MTCB, a GTCB, a CREBs, or
a QZAB’s (issued before October 4, 2008).
If you cannot use all of the credit from Part I
because of the tax liability limit (for example,
line 17 is smaller than line 9), you can deduct
the unused credit for the current tax year.
However, you can choose to deduct the
unused credit in the next tax year instead of
the current tax year.
Because a current year deduction may
further reduce the tax liability limit, you 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.

The current year credit on line 6 is deemed to
be a payment of qualified stated interest (as
defined in Regulations section 1.1273-1(c))
and as such is treated as taxable interest
income paid on the credit allowance date or
for BABs, the interest payment date. If the
holder is on the accrual method, the holder
must accrue the credit amount as taxable
interest income on the credit allowance date.

Holders of a qualified tax credit bond or a
BAB. If you cannot use all of the credit from
Part I (for example, line 17 is smaller than line
9), you may carry the unused portion of the
credit to the next tax year and add it to any
credit allowable to the holder of the same
bond in the next tax year. A holder of a
qualified tax credit bond or BAB cannot
deduct any unused credit.

= .913 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, 2009
September 15, 2009

%
23
25
48

Line 4, Column (f)
This amount is the income tax credit to the
holder of a tax credit bond.

,

f
o
s
a
9
t
0
f
0
a
2
r
/
D /07
4
0
If a holder of a tax credit bond sells the
bond between credit allowance dates, or for
BABs, the interest payment date, 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 or interest
payment date, 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 or interest
payment 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.

Line 17

84 days (number of
days from March 24
through June 15)

4

or interest payment date

Line 15b
If completing Form 1040, enter the credits reported on lines 48 through 53, plus any credit from line 11 of Form
8859, District of Columbia First-Time Homebuyer Credit. If completing Form 1040NR,
enter the credits reported
Printed on Recycled Paper
on lines 45 through 49, plus any credit from line 11 of Form 8859.

Limitation on credit from pass-through
entities. For a CREB, GTCB, or MTCB
from a pass-through entity (partnership,
S corporation, estate, or trust), the credit on
line 8 is 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:

Line 16 x

Taxable income attributable to your
interest in the pass-through entity
Your taxable income for the year

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, GTCB, or MTCB credit this
year for that interest.
All taxpayers (other than estates and
trusts). For line 17, add the line 8 credits
separately figured for each interest in a
pass-through entity (as limited by the formula
above for each such interest) to the total
credit on line 6. Enter on line 17 the smaller
of this result or the amount on line 16.
Estates and trusts. For line 17, add the
line 8 credits (excluding any amount allocated
to beneficiaries) separately figured for each
interest in a pass-through entity (as limited by
the formula above for each such interest) to
the total credit on line 6 (excluding any
amount allocated to beneficiaries). Enter on
line 17 the smaller of this result or the amount
on line 16.
Paperwork Reduction Act Notice. We ask
for the information on this form to carry out
the Internal Revenue laws of the United
States. You are required to give us the
information. We need it to ensure that you are
complying with these laws and to allow us to
figure and collect the right amount of tax.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB control
number. Books or records relating to a form
or its instructions must be retained as long as
their contents may become material in the
administration of any Internal Revenue law.
Generally, tax returns and return information
are confidential, as required by section 6103.

The time needed to complete and file
this form will vary depending on individual
circumstances. The estimated burden for
individual taxpayers filing this form is
approved under OMB control number
1545-0074 and is included in the estimates
shown in the instructions for their individual
income tax return. The estimated burden
for all other taxpayers who file this form is
shown below.
Recordkeeping
7 hr., 24 min.
Learning about the
law or the form

1 hr., 59 min.

Preparing and sending
the form to the IRS
2 hr., 11 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler,
we would be happy to hear from you. See
the instructions for the tax return with
which this form is filed.

d