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Line 15.—Attach a schedule listing the

Line 20—Columns (f) and (g).—Enter

Part II—Type of Issue

name and employer identification

the yield only if it has been computed.

Caution: Elections referred to in Part II

number (EIN) for each 501(c)(3)

The yield on the issue is defined under

are made on the or iginal bond

organization benefiting from these

section 148(h). Generally, the yield is the

documents, not on this for m.

qualified hospital bonds.

discount rate that, when used to

You must identify the type of bonds

compute the present value of all

Line 16.—Enter the total amount of

issued by checking the appropriate

payments of principal and interest to be

qualified nonhospital bonds described in

box(es) and entering the corresponding

paid on the obligation, produces an

section 145(b)(2) that are a part of this

issue price of the bonds issued. The

amount equal to the purchase price,

issue. Attach a schedule listing for each

issue price does not include interest

including accrued interest. See

501(c)(3) organization benefiting from

from the date the bonds are dated to

Regulations section 1.148-4 for specific

these qualified nonhospital bonds (a) the

the date of issue (if payable at regular

rules to compute the yield on an issue.

name of the organization, (b) its EIN,

intervals of one year or less).

If the issue is a variable rate issue,

Line 9g.—After entering the issue price,

benefiting the organization, and (d) the

enter “VR” as the yield of the issue. In

check the appropriate box for the

amount of all other nonhospital bonds

addition, enter the net interest cost

percentage test elected by the issuer at

outstanding as of the date of this issue

percentage (NIC) in column (g). The NIC

the time of issuance of the bonds. Then,

that benefit the organization.

for an issue may be determined by

check the appropriate box to show

dividing the total interest payments for

Line 17.—Check this box if the bonds

whether an election was made for deep

the issue (increased by any discount and

are used to acquire nongovernmental

rent skewing. See Rev. Rul. 94-57,

reduced by any premium or accrued

output property, which is property used

1994-37 I.R.B. 4, for guidance on

interest) by the product of the issue

by a nongovernmental person in

computing the income limits applicable

price (from line 20, column (c)) and the

connection with an output facility (such

to these bonds.

weighted average maturity (from line 20,

as an electric or gas power project).

Line 9k.—Proceeds of an exempt bond

column (e)).

Line 18.—Check this box only if none of

may not be used for this type of facility

a + b - c

the other boxes apply. On the space

if there is a nongovernmental owner of

NIC =

provided, enter a description of the

x y

the facility unless that owner makes an

bonds, for example, “Texas Veterans’

irrevocable election not to claim

a = total interest payments

Land Bonds,” “Oregon Small-Scale

depreciation under section 167 or 168,

b = discount

Energy Conservation and Renewable

or to claim any credit against its income

Resource Loan Bonds,” or “Iowa

c = premium or accrued interest

tax with respect to the property financed

Industrial New Jobs Training Bonds.”

x = issue price

with the net proceeds of the issue.

y = weighted average maturity

Part III—Description of Bonds

Line 9m.—Bonds issued to finance

If the issue is a variable rate issue,

certain facilities may also qualify as

Line 19.—Enter the maturity date, the

enter “VR” as the NIC of the issue. For

exempt facility bonds if (a) they were

interest rate (or coupon rate), the issue

other than variable rate issues, carry the

permitted as exempt facility bonds

price, and the stated redemption price at

yield and the NIC out to four decimal

under prior law, and (b) they were issued

maturity. If there is more than one

places (e.g., 5.3125%).

under one of the transitional rules of the

maturity date for bonds that are part of

Tax Reform Act of 1986. These facilities

the issue, enter the information for the

Part IV—Uses of Proceeds of

include: a sports facility, as described in

bonds with the latest maturity date.

Issue

former section 103(b)(4)(B); a convention

Interest rates should be carried out to

or trade show facility, as described in

Line 21.—Enter the amount of proceeds

three decimal places. If the interest rate

former section 103(b)(4)(C); a parking

that will be used to pay interest from the

is a variable rate, enter “VR.” If the

facility, as described in former section

date the bonds are dated to the date of

bonds are reoffered to the public,

103(b)(4)(D); a pollution control facility, as

issue.

determine the issue price based on the

described in former section 103(b)(4)(F);

reasonably expected reoffering price.

Line 23.—Enter the amount of the

a hydroelectric facility, as described in

The issue price does not include interest

proceeds that will be used to pay bond

former section 103(b)(4)(H); and an

from the date the bonds are dated to

issuance costs, including fees for

industrial park, as described in former

the date of issue (if payable at regular

trustees and bond counsel.

section 103(b)(5). If one of the above

intervals of 1 year or less). The stated

Line 24.—Enter the amount of the

applies, indicate the facility type and

redemption price at maturity is the

proceeds that will be used to pay fees

then give the specific provision of the

amount payable (without regard to

for credit enhancement that are taken

Act pertaining to the facility on line 9m.

optional redemption) at maturity

into account in determining the yield on

Line 9n.—Check this box if the bonds

(excluding interest payable at regular

the issue for purposes of section 148(h)

are part of any issue 95% or more of the

intervals of 1 year or less).

(e.g., bond insurance premiums and

net proceeds of which are to be used to

Line 20—Columns (c), (d), and (e).—

certain fees for letters of credit).

provide any enterprise zone facility. See

Enter the issue price, stated redemption

Line 25.—Enter the amount of the

section 1394.

price at maturity, and weighted average

proceeds that will be allocated to such

Line 11.—Check the box if the issuer

maturity in years (e.g., 8.7 years). The

a fund.

has elected, in the bond indenture or

stated redemption price at maturity of

Line 26.—Enter the amount of the

Instructions For Form 8038 (Rev. March 1995) - Information Return For Tax-Exempt Private Activity Bond Issues Page 3

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