Instructions For Form 8912 - Credit To Holders Of Tax Credit Bonds

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 8912

Credit to Holders of Tax Credit Bonds

Section references are to the Internal Revenue Code unless

QZABs issued after October 3, 2008, are considered

otherwise noted.

qualified tax credit bonds and the rules of sections 54A

and 54E apply.

Future Developments

CAUTION

Holders of BABs. A taxpayer holding a BAB on an interest

For the latest information about developments related to Form

payment date can claim the credit by filing Form 8912. An

8912 and its instructions, such as legislation enacted after they

interest payment date is any date on which the bondholder of

were published, go to

record is entitled to a payment of interest under the bond.

General Instructions

Definitions

Purpose of Form

CREB. A CREB is any bond issued after 2005 and before 2010

by a qualified issuer, the proceeds of which are used for capital

Use Form 8912 to claim the credit for the following tax credit

bonds.

expenditures incurred by a qualified borrower for a qualified

project. In addition, the bond must be designated by the issuer

Clean renewable energy bond (CREB).

as a CREB under section 54. An issuer can make such a

New clean renewable energy bond (NCREB).

designation only if it applied for and received a CREB allocation

Qualified energy conservation bond (QECB).

from the IRS.

Qualified zone academy bond (QZAB).

Qualified school construction bond (QSCB).

A qualified issuer is either a:

Build America bond (BAB).

Cooperative electric company—a mutual or cooperative

electric company described in section 501(c)(12) or section

Generally, in lieu of, or in addition to, receiving periodic

1381(a)(2)(C), or a not-for-profit electric utility that has received

interest payments from the issuer, the holder of the bond is

a loan or loan guarantee under the Rural Electrification Act,

allowed an income tax credit. The credit compensates the holder

Clean renewable energy bond lender—a lender that is a

for lending money to the issuer and functions as interest paid on

cooperative which is owned by, or has outstanding loans to, 100

the bond. Build America bond holders receive taxable interest

or more cooperative electric companies and is in existence on

from the issuer in addition to being allowed an annual income tax

February 1, 2002, including any affiliated entity which is

credit.

controlled by such lender, or

Governmental body—any state, territory, possession of the

Note. If the issuer of the bond makes an irrevocable election to

United States, the District of Columbia, Indian tribal government,

have section 54AA(g) (for a qualified build America bond under

and any political subdivision thereof.

section 54AA(g)(2)) or section 6431(f) (for a specified tax credit

bond under section 6431(f)(3)(A)) apply to the bonds and

A qualified borrower is a mutual or cooperative electric

receive a refundable credit under section 6431(a), no credit is

company described in section 501(c)(12) or section 1381(a)(2)

allowed to the holder under sections 54AA or 54A, respectively,

(C), or a governmental body.

for that bond.

A qualified project is any qualified facility (as determined

under section 45(d) without regard to paragraph (10) and to any

Who Can Claim the Credits

placed-in-service date) owned by a qualified borrower.

A taxpayer holding a CREB or qualified tax credit bond (a

Qualified tax credit bond. A qualified tax credit bond means a

qualified tax credit bond doesn't include a QZAB issued before

new clean renewable energy bond, qualified energy

October 4, 2008) on 1 or more credit allowance dates can claim

conservation bond, qualified zone academy bond (issued after

the credit by filing Form 8912 for each tax year in which it holds

October 3, 2008), or qualified school construction bond that is a

the bond on a credit allowance date.

part of an issue that meets the requirements of section 54A(d)

Generally, the credit allowance dates are:

(2), (3), (4), (5), and (6).

March 15,

NCREB. An NCREB is any bond issued after October 3, 2008,

June 15,

by a qualified issuer as a new clean renewable energy bond

September 15, and

and 100% of the available project proceeds are used for capital

December 15.

expenditures incurred by governmental bodies, public power

The credit allowance date also includes the last day on which

providers, or cooperative electric companies for one or more

the qualified tax credit bond is outstanding.

qualified renewable energy facilities.

Holders of QZABs issued before October 4, 2008. An

A qualified issuer is a public power provider, a cooperative

eligible taxpayer holding a QZAB on the credit allowance date

electric company, a governmental body, a clean renewable

can claim the credit by filing Form 8912. To be an eligible

energy bond lender, or a not-for-profit electric utility that has

taxpayer, the taxpayer must be a bank, insurance company, or

received a loan or loan guarantee under the Rural Electrification

other corporation actively engaged in the business of lending

Act.

money. In addition, the shareholder of an S corporation may

A clean renewable energy bond lender is a lender that is a

claim the credit from a QZAB held by an S corporation that is an

cooperative that is owned by, or has outstanding loans to, 100 or

eligible taxpayer. The credit allowance date is the last day of: (a)

more cooperative electric companies and is in existence on

the 1-year period beginning on the date the bond was issued

February 1, 2002, and includes any affiliated entity that is

and (b) each successive 1-year period thereafter. See section

controlled by that lender.

1397E (as in effect on October 3, 2008).

Aug 04, 2015

Cat. No. 57584P

Instructions For Form 8912 - Credit To Holders Of Tax Credit Bonds - 2015

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