i8912--dft

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING

This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms and do
not rely on draft forms, instructions, and pubs for filing. We incorporate all
significant changes to forms posted with this coversheet. However, unexpected
issues occasionally arise, or legislation is passed—in this case, we will post a
new draft of the form to alert users that changes were made to the previously
posted draft. Thus, there are never any changes to the last posted draft of a
form and the final revision of the form. Forms and instructions are subject to
OMB approval before they can be officially released, so we post drafts of them
until they are approved. Drafts of instructions and pubs usually have some
additional changes before their final release. Early release drafts are at
IRS.gov/DraftForms and remain there after the final release is posted at
IRS.gov/LatestForms. Also see IRS.gov/Forms.
Most forms and publications have a page on IRS.gov: IRS.gov/Form1040 for
Form 1040; IRS.gov/Pub501 for Pub. 501; IRS.gov/W4 for Form W-4; and
IRS.gov/ScheduleA for Schedule A (Form 1040), for example, and similarly for
other forms, pubs, and schedules for Form 1040. When typing in a link, type it
into the address bar of your browser, not a Search box on IRS.gov.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or pubs at IRS.gov/FormsComments. Include “NTF” followed by the
form or pub number (for example, “NTF1040”, “NTFW4”, “NTF501, etc.) in the
body of the message to route your message properly. We cannot respond to all
comments due to the high volume we receive and may not be able to consider
many suggestions until the subsequent revision of the product, but we will
review each “NTF” message. If you have comments on reducing paperwork and
respondent (filer) burden, with respect to draft or final forms, please respond to
the relevant information collection through the Federal Register process; for
more info, click here.

Instructions for Form 8912

Department of the Treasury
Internal Revenue Service

(Rev. December 2023)

Credit to Holders of Tax Credit Bonds
Section references are to the Internal Revenue Code unless
otherwise noted.

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 a QZAB held by 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).

TREASURY/IRS
AND OMB USE
ONLY DRAFT
October 11, 2023

Future Developments

For the latest information about developments related to Form
8912 and its instructions, such as legislation enacted after they
were published, go to IRS.gov/Form8912.

Reminder

Continuous-use forms and instructions. Form 8912 and
these instructions will no longer be updated annually. Instead,
they will only be updated when necessary. The credit is not
available for bonds issued after December 31, 2017.

General Instructions
Purpose of Form

Use Form 8912 to claim the credit for the following tax credit
bonds.
• Clean renewable energy bond (CREB).
• New clean renewable energy bond (NCREB).
• Qualified energy conservation bond (QECB).
• Qualified zone academy bond (QZAB).
• Qualified school construction bond (QSCB).
• Build America bond (BAB).

Generally, in lieu of, or in addition to, receiving periodic
interest payments from the issuer, the holder of the bond is
allowed an 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.
Note. If the issuer of the bond made an irrevocable election to
have section 54AA(g) (as in effect on December 21, 2017) (for a
qualified build America bond under section 54AA(g)(2)(as in
effect on December 21, 2017)) or section 6431(f) (for a specified
tax credit bond under section 6431(f)(3)(A)) apply to the bonds
and receive a refundable credit under section 6431(a), no credit
is allowed to the holder under section 54AA (as in effect on
December 21, 2017) or 54A (as in effect on December 21,
2017), respectively, for that bond.

Who Can Claim the Credits

A taxpayer holding a CREB or qualified tax credit bond (a
qualified tax credit bond doesn't include a QZAB issued before
October 4, 2008) on one 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.
Holders of QZABs issued before October 4, 2008. An
eligible taxpayer holding a QZAB issued before October 4, 2008,
on the credit allowance date can claim the credit by filing Form
Oct 11, 2023

QZABs issued after October 3, 2008, are considered
qualified tax credit bonds and the rules of sections 54A
CAUTION (as in effect on December 21, 2017) and 54E (as in
effect on December 21, 2017) 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.
Section 13404 of the Tax Cuts and Jobs Act of 2017, P.L.
115-97, 131 Stat. 2054 (2017), repealed sections 54,
CAUTION 54A–F, and 54AA effective for bonds issued after
December 31, 2017.

!

Definitions

CREB. A CREB is any bond issued after 2005 and before 2010
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 (as in effect on December 21,
2017). 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:
• Cooperative electric company—a mutual or cooperative
electric company described in section 501(c)(12) or section
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 that is owned by, or has outstanding loans to, 100 or
more cooperative electric companies and is in existence on
February 1, 2002, including any affiliated entity that is controlled
by such lender; or
• Governmental body—any state or territory, 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 section 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.
Qualified tax credit bond. A qualified tax credit bond means a
new clean renewable energy bond, qualified energy
conservation bond, qualified zone academy bond (issued after
October 3, 2008), 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) (as in effect on December 21, 2017).
NCREB. An NCREB is any bond issued after October 3, 2008,
and before January 1, 2018, by a qualified issuer as a new
clean renewable energy bond and 100% of the available project

Cat. No. 57584P

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 includes 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) and to any placed-in-service date) owned by a
public power provider, a governmental body, or a cooperative
electric company.

Line 1
Enter the total from Part III, line 14. This amount is the total bond
credits reported to you on Form(s) 1097-BTC.

Line 2
Enter the amount from Part IV, line 20. This amount is the total
bond credits from bonds held by you or your nominee(s) and not
reported to you on Form(s) 1097-BTC. This amount may also
include bond credits reported to you from a pass-through entity
(partnership, S corporation, estate, trust, regulated investment
company, and real estate investment trust) that weren't reported
to you on Form(s) 1097-BTC.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
October 11, 2023

Note. You may receive Form(s) 1097-BTC from a pass-through
entity reporting your share of bond tax credits. The entity may
also report your share of bond tax credits on a form/schedule/
statement other than the Form(s) 1097-BTC. In such a case,
don't double-count amounts reported to you. Include any amount
reported to you on Form(s) 1097-BTC from a pass-through entity
on line 13, and not on line 18. For example, if you own an interest
in a partnership, and the partnership reports your share of bond
tax credits earned by the partnership on a Schedule K-1 (Form
1065) as well as on a Form 1097-BTC, don't double-count these
amounts. Include the amount reported to you on Form 1097-BTC
by the partnership on Part III, line 13, and not on Part IV, line 18.

Line 3

QECB. A QECB is any bond issued after October 3, 2008, and
before January 1, 2018, by 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) (as in effect on December 21,
2017) for the definition of qualified conservation purposes.

Enter the amount of the credit carryforward (from prior years)
that is attributable to a qualified tax credit bond or a BAB. Credits
attributable to a CREB, or a QZAB issued before October 4,
2008, can't be carried forward.

QZAB. A QZAB is any bond issued after December 31,1997,
and before January 1, 2018, 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% or more of the
proceeds are used to improve certain eligible public schools).

Line 5
Estates and trusts must allocate any CREB credit on line 4
between the estate or trust and the beneficiaries in the same
proportion as income was allocated and enter the beneficiaries'
share on line 5.

QSCB. A QSCB is any bond issued after February 17, 2009,
and before January 1, 2018, by a state or local government as a
qualified school construction bond and 100% of the available
project proceeds are used 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.

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 10b

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 (as in effect on December 21, 2017) apply and,
except for that election, the interest on the bond would have
been excludable under section 103.

Enter the total allowable credit, if any, from your tax return as
follows.
Individuals. Enter the amount from Form 1040, 1040-SR, or
1040-NR, line 19; and Schedule 3 (Form 1040), lines 2 through
5b, 6c through 6j, and 6l through 6z.
Estates and trusts. Enter the total of any write-in credits from
Form 1041, Schedule G, line 2e. But if the amount you enter on
line 10b causes line 11 to be less than zero, then enter -0- on
line 11.
Corporations. Enter the amount from Form 1120, Schedule J,
line 5b (or the amount from the applicable line of your return),
plus any Form 8978 amount included on Schedule J, line 6. But if
the amount you enter on line 10b causes line 11 to be less than
zero, then enter -0- on line 11.

Specific Instructions

Separate entries and calculations are required for each bond
with a different issuance date or a different credit rate.

Part I—Current Year Credit
Complete Part(s) III and IV before completing Part I and

TIP Part II. See the instructions for Parts III and IV for more
information.

Line 10c
If you are filing Form 3800, enter the credit from Form 3800.
-2-

Instructions for Form 8912 (Rev. 12-2023)

Line 12

!

If you don't have an entry space for these credits on your tax
return, include the allowable credit on the “Total credits” line with
the applicable notation (for example, “CREB” or “QECB”).

Do not enter any bond credits for bonds issued after
December 31, 2017.

CAUTION

Line 13, Column (b1)

Holders of a CREB, or a QZAB issued before October 4,
2008. If you can't use all of the credit from Part I because of the
tax liability limit (for example, line 12 is smaller than line 4), 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.

Enter the Form 1097-BTC issuer's federal identification number
shown on Form 1097-BTC.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
October 11, 2023
Line 13, Column (b2)

Enter the unique identifier shown in box 2b of Form 1097-BTC.

Line 13, Column (c)

Enter the amount shown in box 1 of any Form 1097-BTC you
receive.

Holders of a qualified tax credit bond or a BAB. If you can't
use all of the credit from Part I (for example, line 12 is smaller
than line 4), 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 can't deduct any unused credit.

!

CAUTION

Note. Fiscal year filers should use information from applicable
boxes 5a through 5l of Form 1097-BTC to claim the credit for
their fiscal tax year.

Limitation on credit from pass-through entities. For a CREB
held by a pass-through entity, the credit included on line 1 (for a
credit received from a pass-through entity that issued a Form
1097-BTC) and line 2 (for a credit received from a pass-through
entity that didn't issue a Form 1097-BTC) is limited to the amount
of tax attributable to your taxable income from your interest in the
pass-through entity distributing the credit. Figure the credit
limitation separately for each interest in a pass-through entity
using the following limitation formula.

Line 11 x

If you receive Form(s) 1097-BTC from any pass-through
entity reporting your share of bond credits, report the
credit on Part III, line 13.

Line 14

Add the amounts listed on line 13, column (c), and enter the total
on line 14. If you complete and attach one copy of Part III, enter
the amount from line 14 on line 1. If you complete and attach
multiple copies of Part III, add the amounts entered for all lines
14 and enter the total on line 1.

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

Part IV—Bond Credits From Bonds Held by You
and/or Your Nominee Not Reported to You on
Form 1097-BTC

Taxable income for the year

Complete and attach a Part IV for each bond you held or bond
credits received from a pass-through entity that weren't reported
to you on Form(s) 1097-BTC. Complete and attach as many
copies of Part IV as you need to claim the credit(s) for each bond
you held directly or through a nominee and for which you didn't
receive a Form 1097-BTC. Also, complete a separate Part IV for
each bond credit passed through to you from a pass-through
entity for which a Form 1097-BTC wasn't issued. If multiple
copies of Part IV are completed, enter the total of all Parts IV,
lines 20, on Part I, line 2.

If in the current tax year you had no taxable income attributable
to a particular interest in a pass-through entity, you can't claim
any CREB credit this tax year for that interest.
All taxpayers (other than estates and trusts). For line 12,
add the line 1 and line 2 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 4 not attributable
to that pass-through entity. Enter on line 12 the smaller of this
result or the amount on line 11. This limitation only applies to a
CREB credit received from a pass-through entity.
Estates and trusts. For line 12, add the line 1 and line 2
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 not attributable to that pass-through
entity. Enter on line 12 the smaller of this result or the amount on
line 11. This limitation only applies to a CREB credit received
from a pass-through entity.

Note. If you are reporting a bond credit received from a
pass-through entity, complete lines 15a and 15b and enter the
credit amount on line 18, column (f).

!

Do not enter any bond credits for bonds issued after
December 31, 2017.

CAUTION

Part III—Bond Credit(s) Reported to You on
Form(s) 1097-BTC

Line 15a

Part III is used to list and total credits that are reported to you on
Form(s) 1097-BTC. Complete and attach as many copies of Part
III as needed to list the credits you are reporting for the current
tax year. Don't include credit amounts previously claimed on any
of your returns. If multiple copies of Part III are completed, enter
the total of all Parts III, lines 14, on Part I, line 1.

Enter the bond issuer's name and address. If the credit was
received from a pass-through entity, enter the name of the entity
distributing the bond credit.

Line 15b
Enter the bond issuer's employer identification number. If the
credit was received from a pass-through entity, enter the

Instructions for Form 8912 (Rev. 12-2023)

-3-

you are claiming the credit. 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.

employer identification number of the pass-through entity
distributing the credit.

Line 17

Example 2. Your tax year begins December 1, 2017, and
ends November 30, 2018. You held a QECB (issued on July 23,
2010) that matures on July 23, 2018. Since the bond wasn't held
for the entire 3-month period ending on September 15, 2018, the
prorated portion of the 25% is figured by dividing (a) the number
of days the bond was outstanding beginning on the day after the
last credit allowance date and ending on the maturity 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.

If the bond was redeemed, sold, or otherwise disposed of, enter
the date.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
October 11, 2023

Line 18, Column (a)

Enter the CUSIP number of the bond. If there is no CUSIP
number, enter the principal payment dates of the bond. For
CREBs, enter the CUSIP number and principal payment dates.
For BABs, enter the CUSIP number and interest payment dates.

Line 18, Column (b)

38 days (number of days from June
16 through July 23)

Enter the face amount of the CREB, 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.

92 days (number of days from June
16 through September 15)

= 0.413 x 25% (0.25) = 10%

You would enter 60% figured as follows.

Line 18, Column (c)

The credit rate for the CREB, 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 TreasuryDirect.gov/government/interest-rates-and-prices/irstax-credit-bond-rates/ 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.

Credit allowance date

%

March 15, 2018

25

June 15, 2018

25

September 15, 2018

10
60

Generally, for bonds issued during the 3-month period ending
on a credit allowance date, the sum of the prorated credit
amounts for the first credit allowance date and the last credit
allowance date should equal 25% of the annual credit allowance.

!

The credit rate for a BAB is 35%.

Do not enter any bond credits for bonds issued after
December 31, 2017.

CAUTION

Line 18, Column (e)

Line 18, Column (f)

Generally, enter 25% for each credit allowance date you hold a
CREB, or qualified tax credit bond during your tax year. Enter
100% for a BAB, or a QZAB issued before October 4, 2008.

This amount is the income tax credit to the holder of a tax credit
bond. If the bond credit is from a pass-through entity, enter the
amount of the credit in column (f). You must complete lines 15a
and 15b.

Example 1. Your tax year begins December 1, 2017, and
ends November 30, 2018. You purchased a QECB (issued on
June 30, 2017) from the prior holder on March 16, 2018, and
held it through the end of the tax year ending November 30,
2018. You would enter 50% figured by including the day the bond
was purchased as the first day on which the credit accrues, as
follows.

Credit allowance date

%

June 15, 2018

25

September 15, 2018

25

Line 20
Bond credit. Enter the total amounts from all Parts IV, lines 20,
on Part I, line 2.
Interest income. The current year credit on line 4 (or for
estates and trusts, 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 or interest payment date.
If a holder of a tax credit bond sells the bond between credit
allowance dates (or for BABs, interest payment 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 or interest
payment dates, the interest accrued as of the date of the
purchase (as reflected in the purchase price) isn't included as
interest when the purchaser receives the value of the credit (and

50

!

Do not enter any bond credits for bonds issued after
December 31, 2017.

CAUTION

However, the 25% will be prorated if a CREB or qualified tax
credit bond is issued, redeemed, or matures during the 3-month
period ending on a credit allowance date with respect to which
-4-

Instructions for Form 8912 (Rev. 12-2023)

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.

The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individual and business taxpayers filing this form is approved
under OMB control number 1545-0074 and 1545-0123 and is
included in the estimates shown in the instructions for their
individual and business income tax return. The estimated burden
for all other taxpayers who file this form is shown below.

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.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
October 11, 2023
Recordkeeping . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . .
Preparing and sending the form to the IRS

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.

Instructions for Form 8912 (Rev. 12-2023)

. . . . . . . .

. . . . . . . .

. . . . . . . .

9 hr., 34 min.
1 hr., 59 min.
2 hr., 13 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.

-5-