Instructions For Form 1097-Btc Draft - Bond Tax Credit

2014

Department of the Treasury

Internal Revenue Service

Instructions for Form

1097-BTC

Bond Tax Credit

DRAFT AS OF

Section references are to the Internal Revenue Code

Definitions

unless otherwise noted.

Tax credit bond. Generally, a tax credit bond is an

Future Developments

obligation issued under sections 54, 54A, 54AA, 1397E,

or 1400N(l) that entitles the taxpayer holding such bond

August 16, 2013

For the latest information about developments related to

on one or more credit allowance dates occurring during

Form 1097-BTC and its instructions, such as legislation

any tax year to a credit against the federal income tax

enacted after they were published, go to

imposed for that tax year.

form1097btc.

Qualified tax credit bond. Qualified tax credit bonds

Reminder

under section 54A include new clean renewable energy

In addition to these specific instructions, you should also

bonds under section 54C, qualified energy conservation

use the 2014 General Instructions for Certain Information

bonds under section 54D, qualified zone academy bonds

Returns. Those general instructions include information

under section 54E, and qualified school construction

about the following topics.

bonds under section 54F.

Who must file (nominee/middleman).

New clean renewable energy bond. An obligation that

When and where to file.

is part of an issue 100 percent of the available project

Electronic reporting requirements.

proceeds of which are to be used for capital expenditures

Corrected and voided returns.

incurred by governmental bodies, public power providers,

Statements to recipients.

or cooperative electric companies for one or more

Taxpayer identification numbers.

qualified renewable energy facilities, as defined in section

Backup withholding.

54C. The annual credit allowed is 70 percent of the annual

Penalties.

credit amount determined by applying 54A(b).

Other general topics.

Qualified energy conservation bond. An obligation

You can get the general instructions at

that is part of an issue 100 percent of the available project

form1097btc

or by calling 1-800-TAX-FORM

proceeds of which are to be used for one or more qualified

(1-800-829-3676).

energy conservation purposes, as defined in section 54D.

The annual credit allowed is 70 percent of the annual

Specific Instructions

credit amount determined by applying 54A(b).

Qualified zone academy bond. An obligation that is

Issuers of certain tax credit bonds (or their agents) and

part of an issue 100 percent of the available project

recipients of Form 1097-BTC from the bond issuer or

proceeds of which are to be used for a qualified purpose

agent, such as mutual funds or partnerships, who are

for a qualified zone academy established by an eligible

further distributing the credit must file Form 1097-BTC for

local education agency, as provided in section 54E, or an

each tax credit distributed from the following tax credit

obligation that is part of an issue 95 percent or more of the

bonds.

proceeds of which are to be so used and issued before

New clean renewable energy bonds.

October 4, 2008, as provided by section 1397E.

Qualified energy conservation bonds.

Qualified zone academy bonds.

Qualified school construction bond. An obligation that

Qualified school construction bonds.

is part of an issue 100 percent of the available project

Clean renewable energy bonds.

proceeds of which are to be used for the construction,

Build America bonds (Tax Credit).

rehabilitation, or repair of a public school facility or for the

acquisition of land on which such a facility is to be

For tax credit bonds issued as serial bonds, each bond

constructed with the proceeds, as provided in section

must be reported separately on the Form 1097-BTC

54F.

issued by the bond issuer or its agent.

Clean renewable energy bond. An obligation that is

Note. Issuers that have elected to issue build America

part of an issue 95 percent of the proceeds of which are

bonds (Direct Pay) under section 54AA(g) or specified tax

used for capital expenditures incurred by qualified

credit bonds under section 6431(f) to receive a refundable

borrowers for one or more qualified projects as defined in

credit under section 6431(a) in lieu of tax credits under

section 54.

section 54A should not file Form 1097-BTC.

Build America bond (Tax Credit). An obligation issued

by a state or local government (excluding private activity

bonds under section 141) as defined in section 54AA(d).

Aug 13, 2013

Cat. No. 54657F

Instructions For Form 1097-Btc Draft - Bond Tax Credit - 2014 Page 2

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