This Notice solicits applications for
the reallocation of available amounts of national bond issuance
authority limitation for tribal economic development bonds ("Tribal
Economic Development Bonds") that were previously allocated to
eligible issuers by the Internal Revenue Service ("IRS") and that
have not been used. This Notice also provides related guidance on:
(1) the application requirements and forms for requests for volume
cap allocations, and (2) the method that the IRS and the Department
of the Treasury will use to allocate the volume cap.
The collection of
information falls within both prongs of section 3507(j)(1)(A).
First, as required by section 3507(j)(1)(A)(i), the collection of
information is needed prior to the expiration of the normal
clearance period (approximately November 2012). Indian tribal
economies would be significantly harmed by a delay in publication.
Indian tribal governments now have a unique opportunity to finance,
under section 7871(f), up to $1.8 billion of economic development
projects at historically low interest rates. Tribal governments
have expressed great interest in publication of this notice and
have informed the IRS that significant projects can be immediately
funded following publication of the notice. Construction of
bond-financed projects will provide employment opportunities for
members of these tribes, many of whom have suffered
disproportionately from depressed local economies. Further delay in
publication of this notice may postpone the start of bond-financed
construction projects, many of which are located in the northern
United States, until after winter, further delaying the economic
benefits of these projects. Additionally, as evidenced by numerous
Congressional inquiries, the date of publication of this notice is
a matter of concern to members of Congress. Officials from the
Department of the Treasury testified before the Senate Committee on
Indian Affairs on June 14, 2012, that this notice would be
published in the very near future. Expedited publication of the
notice will also be helpful to Treasury officials and tribal
finance officers who will be discussing bond financing at a
conference hosted by the Native American Finance Officers
Association on July 17, 2012. Second, as required by section
3507(j)(1)(A)(ii), the collection of information is essential to
the IRS mission of efficient administration of the internal
revenue laws. A tribal governments request for reallocation of
volume cap, submitted in accordance with this notice, is a key
component to the IRS effective and efficient administration of the
exemption from income tax provided under section 7871(f) for
interest paid on tribal economic development bonds. Section
3507(j)(1)(B) Pursuant to section 3507(j)(1)(B), the IRS cannot
reasonably comply with the nonemergency procedures of section 3507.
Section 3507(j)(1)(B) sets forth three criteria, at least one of
which must apply: (i) public harm is reasonably likely to result if
normal clearance procedures are followed; (ii) an unanticipated
event has occurred; or (iii) the use of normal clearance procedures
is reasonably likely to cause a statutory or court-ordered deadline
to be missed. As discussed above, the first criterion, public harm,
applies in this instance. Indian tribal economies would be
significantly harmed by a delay in publication. Indian tribal
governments now have a unique opportunity to finance, under section
7871(f), up to $1.8 billion of economic development projects at
historically low interest rates. Tribal governments have expressed
great interest in publication of this notice and have informed the
IRS that significant projects can be immediately funded following
publication of the notice. Construction of bond-financed projects
will provide employment opportunities for members of these tribes,
many of whom have suffered disproportionately from depressed local
economies. Further delay in publication of this notice may postpone
the start of bond-financed construction projects, many of which are
located in the northern United States, until after winter, further
delaying the economic benefits of these projects. To avoid
irreparable harm to the finance and economies of Indian tribes, the
approval of the collection of information in the notice is needed
as quickly as possible and before it would ordinarily be granted
under the standard procedures.
US Code:
26
USC 7871(f) Name of Law: Tribal economic development bonds
US Code: 26 USC 7871(f) Name of Law: Tribal
economic development bonds
Section 7871(f) provides that
the interest on tribal economic development bonds issued by Indian
tribal governments is exempt from income tax under section 103.
Under section 7871(f)(1), this exemption from income tax cannot
apply to more than $2 billion of such bonds, and the Secretary of
the Treasury must allocate this volume cap among the tribal
governments. This notice provides procedures for tribal governments
to apply for an allocation of the $1.8 billion of forfeited volume
cap. This collection of information is necessary to track and
allocate volume cap among the tribal governments. This will result
in an estimated annual increase of 1,001 burden hours.
$0
No
No
No
No
Yes
Uncollected
Timothy Jones 202
622-3980
No
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:
(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;
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.
Supporting Statement_TEDB.doc
Notice 2012-XX: Tribal Economic Development Bonds