Summary of Changes

IMPLEMENTATION PLAN for 8912
Run by User DJBUCH00

April 2, 2009

Page 2 of 2

P.L. 111-5, American Recovery and Reinvestment Act of 2009
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00087

1521

54F

Revise product to reflect qualified school construction bonds.

A

17-FEB-2009 17-APR-2009

66.00090

1531

54AA

Revise product to reflect build America bonds.

A

17-FEB-2009 17-APR-2009

P.L. 110-343, Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Division C)
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00424

313

Revise product to add reference to qualified zone academy bonds, in
regard to the credit for holders of tax credit bonds

A

04-OCT-2008 26-DEC-2008

66.00429

702(d)

Revise product to reflect changes to the credit for holders of tax credit
bonds.

A

31-DEC-2008 26-DEC-2008

66.00431

702(d)

Revise product to reflect the expiration of the credit for holders of
Midwestern tax credit bonds.

A

31-DEC-2008 23-DEC-2010

P.L. 110-343, Energy Improvement and Extension Act of 2008 (Division B)
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00154

107

Revise product to reflect the credit for new clean renewable energy
bonds.

A

03-OCT-2008 26-DEC-2008

66.00157

301(a)

Revise product to reflect the new credit for qualified energy
conservation bonds.

A

03-OCT-2008 26-DEC-2008

P.L. 110-246, Food, Conservation, and Energy Act of 2008
Action
Number
66.00041

Act
Section
15316

IRC
Section
54A
54B

Total Action Items: 8

Description of Action
Revise product to reflect the credit to holders of qualified tax credit
bonds (qualified forestry conservation bonds).

Date Type Effective Date Target Date Actual Date
A

22-MAY-2008 26-DEC-2008

Memo of Major Changes for 2008 Form 8912, Credit to Holders of Tax Credit
Bonds

Due to legislative changes, the form has undergone a major revision. Form 8912 is now
used to claim credits for the following bonds.
•
•
•
•
•
•
•

•
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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).
Qualified energy conservation bond (QECB).
Qualified zone academy bond (QZAB). (Note: Beginning in 2008, holders of
QZAB’s that 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.)
Qualified school construction bond (QSCB).
Build America bond (BAB). (Note: The method used to calculate the amount of
credit attributable to a BAB is slightly different that the method used for the other
bonds. When applicable, text has been added to the form and instructions to
explain the differences.)

To reflect these changes, the title of Form 8912 has been changed to “Credit to Holders
of Tax Credit Bonds.” Throughout the form and instructions, all year references and line
references have been updated as appropriate.
Part I

In Part I, the designations “Section A” and “Section B” have been deleted. In essence, the
sections have been combined and expanded to allow for the reporting of additional tax
credit bonds.
Lines 1 through 3 of Part I are now used to report certain literal information about the
bond. Line 4 is used to calculate the initial amount of the credit. Line 5 is used to add
together the amounts from line 4(f). New line 6 was added as a result of the credit
limitation for NCREBs and QECBs based on PL 110-343, Div. B, sections 107 and 301.
Line 7 is used if the taxpayer has more than one tax credit bond to report. Lines 8 through
11 of the 2008 Form 8912 serve the same function as lines 9 through 12 of the 2007 Form
8912. The text on the new line 9 was revised to clarify that estates and trusts can only
allocate credits related to CREBs, GTCBs, and MTCBs.

Part II
Overall, lines 12 through 17 of the 2008 Form 8912 serve the same purpose as lines 13
through 20 of the 2007 Form 8912. We have made the following specific changes to the
2008 Form 8912.
•

On line 15, the order of “Foreign tax credit” and “Personal credits from Form
1040 or 1040NR” has been switched, so “Foreign tax credit” now comes before
“Personal Credits”. This was done because PL 110-343, Division C, Section 101,
extends IRC 26(a)(2) through 2008.

•

On line 15c, the reference to Form 5735, American Samoa Economic
Development Credit, has been deleted because the credit expired.

•

Line 16h from the 2007 Form 8912 (the line used to report the amount from line 9
of Form 8860) was not carried over to the 2008 Form 8912. This was not carried
over because Form 8860 is not used for tax years beginning after 2007.

•

Lines 18, 19, and 20 of the 2007 Form 8912 have been condensed into line 17 of
the 2008 Form 8912. Since the credit to holders of tax credit bonds is now
calculated in a combined manner, there is no longer the need for the lines used to
calculate the credits in a separate manner.

Instructions

The instructions were revised to make all the necessary references and explanations that
pertain to the credits on the form. The following specific changes were made.
•

In the “What’s New” section, we list the both the name of the new tax credit
bonds and the name of the legislation that created each bond.

•

Under “Purpose of Form”, we list the full name of the bond and the abbreviation
used on Form 8912 when referring to the bond. We added text for holders of
BABs to explain the different rules that apply to them. We added a paragraph
stating that holders of QZABs for tax years beginning after 2007 must use Form
8912 to claim the credit.

•

Under “Who Can Claim the Credits,” we introduce the term “qualified tax credit
bond” and explain that this term refers to bonds that are not CREBs, GTCBs,
MTCBs, BABs, or QZABs issued before 10/04/2008. We also added text to
highlight the differences in claiming the credit for QZABs issued before 10/04/08,
and QZABs issued after 10/03/2008. We added a paragraph for holders of BABs
to explain the different rules that apply to them.

•

Under “Definitions,” we added text to define an MTCB, a QFCB, an NCREB, a
QECB, a QZAB, a QSCB, and a BAB.

•

Under “Specific Instructions,” we updated the line references so they correspond
with the line changes.

•

As necessary in the instructions for line 4, we added text relating to MTCBs,
qualified tax credit bonds, QZABs issued before 10/04/08, and BABs. Of
particular importance was the text added to the instructions for column (b) stating
that a BAB will enter the amount of interest payable, the text added to the
instructions for column (c) stating that the credit rate for a BAB is 35%, and the
text added to the instructions for column (e) noting that the figure of 100% is
entered for a BAB or a QZAB issued before 10/04/2008.

•

In the instructions for line 17, we expanded the instructions that pertain to an
unused credit. We added a heading to existing text to explain that that text only
applies to an unused credit from a CREB, GTCB, MTCB, or QZAB issued before
10/04/2008. We added a new paragraph for an unused credit from a qualified tax
credit bond or BAB.