Instructions For Form 1097-Btc - Bond Tax Credit

2012

Department of the Treasury

Internal Revenue Service

Instructions for Form

1097-BTC

Bond Tax Credit

New clean renewable energy bond. An obligation that is part

Section references are to the Internal Revenue Code unless

of an issue 100 percent of the available project proceeds of

otherwise noted.

which are to be used for capital expenditures incurred by

What’s New

governmental bodies, public power providers, or cooperative

electric companies for one or more qualified renewable energy

Form changes. The 2012 Form 1097-BTC was redesigned.

facilities, as defined in section 54C. The annual credit

Boxes were added to report the total amount of credits

determined under section 54A(b) is 70% of the credit amounts

distributed, a unique identification number, bond type, a code to

allowed.

indicate the unique identification number type, and monthly

Qualified energy conservation bond. An obligation that is

allowable credits. Credit reporting to recipients is required on a

part of an issue 100 percent of the available project proceeds of

quarterly basis, although reporting on a monthly basis, if or as

which are to be used for one or more qualified energy

needed, is recommended.

conservation purposes, as defined in section 54D.The annual

Future developments. The IRS has created a page about

credit determined under section 54A(b) is 70% of the credit

Form 1097-BTC and its instructions at

amounts allowed.

form1097btc. Information about any future developments

Qualified zone academy bond. An obligation that is part of

affecting Form 1097-BTC (such as legislation enacted after we

an issue 100 percent of the available project proceeds of which

release it) will be posted on that page.

are to be used for a qualified purpose for a qualified zone

Reminder

academy established by an eligible local education agency, as

provided in section 54E, or an obligation that is part of an issue

In addition to these specific instructions, you should also use

95 percent or more of the proceeds of which are to be so used

the 2012 General Instructions for Certain Information Returns.

and issued before October 4, 2008, as provided by section

Those general instructions include information about the

1397E.

following topics.

Qualified school construction bond. An obligation that is

•

Backup withholding.

part of an issue 100 percent of the available project proceeds of

•

Electronic reporting requirements.

which are to be used for the construction, rehabilitation, or

•

Penalties.

repair of a public school facility or for the acquisition of land on

•

Who must file (nominee/middleman).

which such a facility is to be constructed with the proceeds, as

•

When and where to file.

provided in section 54F.

•

Taxpayer identification numbers.

•

Clean renewable energy bond. An obligation that is part of

Statements to recipients.

•

an issue 95 percent of the proceeds of which are used for

Corrected and void returns.

•

capital expenditures incurred by qualified borrowers for one or

Other general topics.

more qualified projects as defined in section 54.

You can get the general instructions at IRS.gov or by calling

Build America bond (Tax Credit). An obligation issued by a

1-800-TAX-FORM (1-800-829-3676).

state or local government (excluding private activity bonds

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

Specific Instructions

Who Must File

File Form 1097-BTC, Bond Tax Credit, for each person who is

Issuers of certain tax credit bonds (or their agents) must file

allowed a tax credit as a holder, directly or indirectly, of a tax

Form 1097-BTC for each tax credit distributed from the

credit bond or a stripped credit coupon on one or more credit

following tax credit bonds.

•

allowance dates during the calendar year in an amount of at

New clean renewable energy bonds.

•

least $10. Filings of Form 1097-BTC with respect to a bond, by

Qualified energy conservation bonds.

•

the issuer or the issuer’s agent, must be made on a separate

Qualified zone academy bonds.

•

Form 1097-BTC for each bond. Recipients of Form 1097-BTC

Qualified school construction bonds.

•

from the bond issuer or agent, such as mutual funds or

Clean renewable energy bonds.

•

partnerships, who are further distributing the credit must file

Build America bonds (Tax Credit).

only one Form 1097-BTC per recipient or account, aggregating

For tax credit bonds issued as serial bonds, each bond must

credit from all applicable bonds.

be reported separately on the Form 1097-BTC issued by the

The tax credit from tax credit bonds or stripped credit

bond issuer or its agent.

coupons is allowed on each credit allowance date for which the

Note. Issuers that have elected to issue build America bonds

bond was outstanding or to which the stripped credit coupon

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

corresponds. For qualified tax credit bonds and clean

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

renewable energy bonds the credit allowance dates are March

section 6431(a) in lieu of tax credits under section 54A should

15, June 15, September 15, December 15, and the last day on

not file Form 1097-BTC.

which the bond is outstanding. For bonds issued during the

3-month period ending on a credit allowance date, the amount

Definitions

of the credit is determined ratably based on the portion of the

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

3-month period during which the bond is outstanding. The same

issued under sections 54, 54A, 54AA, 1397E, or 1400N(l) that

ratable determination of credit applies when a bond is

entitles the taxpayer holding such bond on one or more credit

redeemed or matures. For build America bonds (Tax Credit),

allowance dates occurring during any tax year to a credit

the credit allowance dates are the interest payment dates. For

against the federal income tax imposed for that tax year.

qualified zone academy bonds issued before October 4, 2008,

the credit allowance date is the last day of the 1-year period

Qualified tax credit bond. Qualified tax credit bonds under

beginning on the issue date of the bond and each anniversary

section 54A include new clean renewable energy bonds under

of such day thereafter.

section 54C, qualified energy conservation bonds under section

54D, qualified zone academy bonds under section 54E, and

The tax credit allowed to holders of any tax credit bonds or

qualified school construction bonds under section 54F.

stripped credit coupons is treated as interest which is included

Aug 08, 2012

Cat. No. 54657F

Instructions For Form 1097-Btc - Bond Tax Credit - 2012 Page 3

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