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Line 29.—Enter the amount of the

private activity bond, the issuer must

Part VII—Miscellaneous

nonrefunding bond proceeds received by

allocate a part of its volume cap to the

Line 34.—Under the rules of section

the issuer and used to finance real or

nonqualified amount over $15 million.

147(f), private activity bonds are not tax

depreciable personal property. If the

Line 40a.—Enter the amount of any

exempt unless they receive public

amounts are not available at the time of

bond issued as part of an issue to

approval by certain officials or voter

issuance, make a reasonable proration

finance exempt facilities that are not

referendums. Enter the name of the

between the land, the buildings, and the

subject to the volume cap. These

governmental unit(s) approving the issue.

equipment.

facilities include airports, docks,

Enter also the date of approval by the

Note: Under section 147(c), a pr ivate

wharves, environmental enhancements

applicable elected representatives and

of hydroelectric generating facilities,

activity bond is not a qualified bond if

the date of the public hearing. In the

25% or more of the proceeds are used

high-speed intercity rail facilities, and

alternative, enter the date of the voter

for the acquisition of land or if any of the

solid waste facilities. Only 75% of any

referendum.

proceeds are used to acquire farm land

exempt facility bond for high-speed

If, under the rules of section 147(f), no

(other than an amount of proceeds not in

intercity rail facilities is not subject to the

approval is needed because the issue

excess of $250,000 to be used by a

volume cap. Beginning on or after

meets an exception to the public

first-time far mer). An exception to this

January 1, 1994, no volume cap applies

approval requirement, write “No approval

general rule is for land acquired for

to a high-speed facility bond issue if all

needed” on line 34. Also enter on line 34

the bond-financed property is

certain environmental purposes. See

the provision of section 147(f) under

section 147(c)(3). Also, a bond is not a

governmentally owned. The applicable

which the issue is excepted (e.g.,

qualified bond if the proceeds are used

solid waste facilities may have to be

“section 147(f)(2)(D)”), or if under any

for the acquisition of used property

governmentally owned. See sections

transitional rule, write “Transitional rule”

(other than land), except in the case of

146(g), 146(h), and 142(b)(1)(B).

and the applicable Act and section on

certain rehabilitations. See section

Line 40b.—If any part of the issue is

line 34.

147(d).

issued under a carryforward election,

Line 35.—If any portion of the issue will

For items that do not readily fit within

enter the amount of the bonds being

qualify for the small issuer exception to

categories 29a, b, c, or d, enter the

issued under that election. Attach a

section 265 contained in section

amount of those proceeds in category

copy of the applicable Form 8328,

265(b)(3), enter the amount of the bonds

29e, Other, and briefly describe them.

Carryforward Election of Unused Private

that will qualify for the exception.

Activity Bond Volume Cap.

Line 30.—Enter the four-digit Standard

Line 36.—Check this box if the issue is

Industrial Classification (SIC) code and

Line 40c.—If any part of the issue is not

a construction issue and an irrevocable

corresponding face amount of each

subject to the volume cap under a

election to pay a penalty in lieu of

project to be financed by the issue. If

transitional rule of the Tax Reform Act of

arbitrage rebate has been made on or

there are more than four projects to be

1986, enter the appropriate section of

before the date the bonds were issued.

financed by the issue, attach a separate

the Act and the amount of the bonds

The penalty is payable with a Form

excepted from the volume cap by that

sheet of paper stating the SIC codes

8038-T for each 6-month period after

and face amount of each project. SIC

rule.

the date the bonds are issued. Do not

codes are developed by the Office of

Line 40d.—Any bond that is issued to

make any payment of penalty in lieu of

Management and Budget and are

currently refund another bond is not

arbitrage rebate with this form. See Rev.

published in the Standard Industrial

subject to the volume cap to the extent

Proc. 92-22, 1992-1 C.B. 736 for rules

Classification Manual.

that the amount of such bond does not

regarding the “election document.”

exceed the outstanding amount of the

For the purpose of determining SIC

Line 37.—Check this box if the issuer

codes where the project fits into more

refunded bond. See section 146(i) and

has identified a hedge on its books and

than one category, the ultimate use of

section 1313(a) of the Tax Reform Act of

records in accordance with Regulation

the facility determines the SIC code

1986. Enter the amount not subject to

sections 1.148-4T(h)(2)(ix) and

number. For example, an investment

the volume cap.

1.148-4T(h)(5)(ii)(A) that permit an issuer

partnership financing a manufacturing

Line 41a.—Enter the amount of the

of tax-exempt bonds to identify a hedge

facility should use the relevant

bonds issued as part of the issue that

for it to be included in yield calculations

manufacturing SIC code, not the

are qualified hospital bonds under

for computing arbitrage.

partnership’s financial activities number.

section 145(c).

Part VIII—Volume Cap

Line 41b.—Enter the amount of qualified

Part VI—Description of Refunded

501(c)(3) bonds issued as part of the

Line 38.—Enter the amount of volume

Bonds

issue that are qualified nonhospital

cap allocated to the issuer. Attach a

Complete this part only if the bonds are

bonds under section 145(b)(2).

copy of the state certification, if

to be used to refund a prior issue of

applicable. The appropriate state official

Line 41c.—Enter the amount of all other

tax-exempt private activity bonds.

bonds issued as part of issues that are

must certify that the issue meets the

Line 31.—Enter the remaining weighted

requirements of section 146 (relating to

outstanding tax-exempt nonhospital

average maturity of the bonds being

volume cap on private activity bonds).

bonds described under section 145(b)(2).

refunded. Determine the remaining

Lines 41b and c together should

See the regulations under section 149(e).

weighted average maturity without

The certification should also include the

generally not exceed $150 million.

regard to the refunding. The weighted

information requested by lines 1 through

Line 42b.—Enter the state limit on

average maturity is determined in the

3 and 5 through 8 of this Form 8038, as

qualified veterans’ mortgage bonds for

same manner as on line 20, column (e).

well as the title of the certifying official.

the calendar year.

Line 32.—Enter the last date on which

Line 39.—Enter the amount of the issue

Signature

any of the bonds being refunded will be

subject to the unified state volume cap

called.

for private activity bonds under section

An authorized representative of the

146. If, under section 141, the

Line 33.—Enter the date of issue of the

issuer must sign Form 8038 and any

nonqualfied amount of an issue exceeds

bonds being refunded. If more than a

applicable certification. Also print the

$15 million, but does not exceed the

single issue of bonds will be refunded,

name and title of the person signing

amount that would cause a bond which

enter the date of issue of each of the

Form 8038.

is part of an issue to be treated as a

issues.

Page 4

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Instructions For Form 8038 (Rev. March 1995) - Information Return For Tax-Exempt Private Activity Bond Issues Page 4

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