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Form 6497 (Rev. 12-2011)

Page

Instructions

Subsidized energy financing. Subsidized

Line 5. Enter the program name or number

energy financing is financing (for example, a

that authorizes the payment.

Section references are to the Internal Revenue

loan) made directly or indirectly under a

Line 6. Make an entry in columns 6(a)

Code.

federal, state, or local government program,

through 6(e) for each recipient of a

whose principal purpose is to provide

Purpose of Form

nontaxable energy grant or subsidized energy

subsidized financing for projects designed to

financing. If you need more space, attach

conserve or produce energy. Subsidized

Use Form 6497 to report nontaxable energy

additional Forms 6497.

energy financing can also include financing

grants or subsidized energy financing made

Column 6(a). Show the name and address

under a federal, state, or local program

under government programs whose principal

of the entity that received the nontaxable

having two or more principal purposes, but (a)

purpose is to conserve or produce energy.

energy grant or subsidized energy financing.

only if one of the principal purposes is to

This reporting is required only for recipients

Do not show the name of an officer,

provide subsidized financing for energy

that are businesses (including sole

employee, etc.

conservation or production projects, and (b)

proprietors).

only if the financing is to be used for energy

Column 6(b). Complete this column for

Form 6497 lists the information to be

production or conservation purposes (the

sole proprietors without EINs.

furnished about the nontaxable energy grants

“use test”) or is provided out of funds

or subsidized energy financing, and about the

Column 6(c). Complete this column if no

designated specifically for energy production

recipients. Only one program should be

entry was made in column 6(b).

or conservation. Loan proceeds meet the use

reported on each form. This form should also

test only if any loan-related documents

Column 6(d). Enter the total amount of

be used to report funds received from the

indicate that the funds are intended for that

nontaxable energy grants provided to the

proceeds of tax-exempt bonds that have

use.

recipient during the calendar year under the

been used to finance energy conservation or

program shown on line 5.

Financing is made when funds for

production property.

subsidized energy financing are disbursed.

Column 6(e). Enter the total amount of

Grants are always taxable to recipients

The source of the funds for a program is not

subsidized energy financing provided to the

unless specifically exempted by the federal

a factor in determining whether the financing

recipient during the calendar year under the

statute authorizing the grants. The originator

is subsidized. Financing is subsidized if the

program shown on line 5. The amount of

of the grant or subsidy program should

terms of the financing provided to the

subsidized energy financing may be different

advise all disbursing agents whether the

recipient in connection with the program or

from the actual amount of money expended.

program is taxable or nontaxable. Taxable

used to raise funds for the program are more

Example. If a government agency spent

grants are reported on Form 1099-G, Certain

favorable than terms generally available

Government Payments. For details, see the

$1,000 to permit a $5,000 loan to be made

commercially. In addition, financing is

Instructions for Form 1099-G.

with an interest rate lower than it would have

subsidized if the principal obligation of the

been otherwise, the amount of subsidized

financing provided to the recipient is reduced

Who Must File

energy financing is $5,000.

by funds provided under the program.

Any person (including an Indian tribal

Payer. A payer is any person who administers

Paperwork Reduction Act Notice

government) who administers a government

a federal, state, or local government program

program for a federal, state, or local

that provides nontaxable grants or subsidized

We ask for the information on this form to

governmental entity or agent of that entity

financing under programs whose principal

carry out the Internal Revenue laws of the

that provides nontaxable energy grants or

purpose is the production or conservation of

United States. You are required to give us the

subsidized energy financing for energy

energy. It includes agents (such as a bank)

information. We need it to ensure that you are

property to business recipients under

that administer federal, state, or local

complying with these laws and to allow us to

programs whose principal purpose is energy

government programs and actually make the

figure and collect the right amount of tax.

production or conservation must file Form

payments to the recipient.

You are not required to provide the

6497. If a federal agency is providing the

Recipient. A recipient is the business entity

information requested on a form that is

funds to a state agency, and the state turns

(including a sole proprietor) that received the

subject to the Paperwork Reduction Act

the funds over to a bank or similar disburser

grant or financing.

unless the form displays a valid OMB control

to act as its agent in disbursing the money for

number. Books or records relating to a form

the above purposes, only the bank, or

Specific Instructions

or its instructions must be retained as long as

disburser, must file Form 6497 to show the

their contents may become material in the

actual recipient information.

Line 1. Generally, this will be the name of the

administration of any Internal Revenue law.

Generally, reporting on Form 6497 is

federal, state, or local governmental entity

Generally, tax returns and return information

required only for nontaxable energy grants or

that makes the nontaxable energy grants or

are confidential, as required by section 6103.

subsidized energy financing made for energy

provides the subsidized energy financing. If

The time needed to complete and file this

property (as defined in section 48 and the

an entity (such as a bank) is administering a

form will vary depending on individual

regulations under section 48).

program as the designated agent of one of

circumstances. The estimated average time

the above governmental entities, enter the

When To File

is:

name of the agent and be sure to fill in line 4.

Recordkeeping

File Form 6497 for the calendar year by the

2 hr., 23 min.

Lines 2a and 2b. Enter the address where

last day of February following the year of the

any IRS questions about Form 6497 can be

Learning about the law

payment.

directed.

or the form .

. 24 min.

Line 3. Use the employer identification

Where To File

Preparing, copying, and

number (EIN) for the payer shown on line 1.

sending the form to the IRS

. 27 min.

Ogden Submission Processing Campus

Do not use the social security number of an

Exam Classification, Mail Stop 4140

If you have comments concerning the

officer or employee.

Ogden, UT 84201

accuracy of these time estimates or

Line 4. If line 1 shows the name of an agent,

suggestions for making this form simpler, we

Definitions

use line 4 to show the federal, state, or local

would be happy to hear from you. You

governmental entity for which the agent is

can write to the Internal Revenue Service, Tax

Energy grant. An energy grant is a payment

administering the program.

Products Coordinating Committee,

given outright for property designed to

SE:W:CAR:MP:T:M:S, 1111 Constitution Ave.

conserve or produce energy, with no

NW, IR-6526, Washington, DC 20224. Do not

requirement to repay the money.

send this form to this address. Instead, see

Where To File on this page.

Form 6497 Instructions - Information Return Of Nontaxable Energy Grants Or Subsidized Energy Financing

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