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Line 14. Enter total qualified purpose

Line 2. The issuer must certify that

the box on 8a. Enter the frequency that

rates are reset on line 8b.

expenditures equal to the sum of amounts

applicable state and local law

entered in lines 1a through 13.

requirements governing conflicts of

Part IV—Proceeds of Issue

interest are satisfied with respect to the

Line 15. To determine the percentage of

bond issue. See section 54A(d)(6). If

Line 1. See Sale proceeds, under

total proceeds to be used for qualified

these requirements are met, check the

purpose expenditures, divide line 14 in

Definitions on page 2.

box in line 2.

Part V by line 7 in Part IV, then multiply

Note. If the bond is stripped at issuance,

the result by 100.

Line 3. If some or all of the tax credits

line 1 must include sale proceeds of the

are stripped, check the box.

Line 16. Determine the proceeds of the

principal and sale proceeds of the credit

issue used to reimburse the issuer for

Note. Submit the information required

strips.

amounts paid for a qualified purpose prior

under Part I, line 9.

Line 2. Enter the amount of the

to the issuance of the bonds. See

Line 4. If an issuer fails to spend 100

proceeds that will be used to pay bond

Regulations section 1.150-2.

percent of the available project proceeds

issuance costs, including underwriter’s

Line 17. Subject to certain exceptions

of the issue by the close of the 3-year

fees, fees for trustees, and bond counsel.

under Regulations section 1.150-2(f), an

expenditure period (including any

issuer must adopt an official intent, as

Note. Bond issuance costs for tax credit

extensions granted), the issuer must

described in Regulations section

bonds issued under section 54A are

redeem all of the nonqualified bonds

1.150-2(e), to reimburse itself for

limited to 2 percent of sale proceeds.

within 90 days after the end of such

preissuance expenditures within 60 days

expenditure period. See 54A(d)(2)(B). If

Line 3. Estimate expected investment

after payment of the original expenditure.

the issuer has established written

proceeds on the sale proceeds of the

Enter the date the official intent was

procedures to meet this requirement,

issue, including proceeds received by the

adopted.

check the box.

issuer from the sale of tax credits that

Part VI—Allocation of National,

Line 5. “Other” is reserved for future tax

have been stripped from the bonds.

State, Tribal, or Local Bond

credit bonds.

Line 4. For all tax credit bonds issued

Limitation Amount

Signature and Consent

under section 54A expected available

project proceeds shall be calculated by

Line 1a. Enter the amount of volume cap

An authorized issuer representative must

subtracting line 2 from line 1 and adding

allocated to the issue by bond type.

sign Form 8038-TC and any applicable

line 3.

Attach a copy of the national (for

certification. The authorized

example, from the Department of the

representative of the issuer signing this

For Midwestern tax credit bonds (Code

Treasury or IRS), state, tribal, or local

form must have the authority to consent

107) and for clean renewable energy

allocations with respect to the issue.

to the disclosure of the issuer’s return

bonds (Code 106) read line 4 by

Check the tribal box if the allocation is

information, as necessary to process this

substituting “proceeds” for “available

provided by the Department of Interior.

return, to the person(s) that have been

project proceeds,” add lines 1 and 3, and

Failure to attach the appropriate

designated in Form 8038-TC.

enter that amount on line 4. Do not

allocation certification will result in a delay

subtract line 2, bond issuance cost.

Note. If line 3 authorizes the IRS to

in processing this form. The appropriate

communicate (including in writing and by

Line 5. For Midwestern tax credit bonds,

officials must certify that the issue has

telephone) with a person other than an

insert the amount of state pledged

been designated as one or more types of

officer of the issuer, by signing this form,

matching funds.

qualified tax credit bonds. On the blank

the issuer’s authorized representative

line below 1a enter the year of allocation

Line 6. Enter any amount of proceeds

consents to the disclosure of issuer’s

and, if applicable, the amount of

not otherwise itemized in lines 1-5 and

return information, as necessary to

carryforward allocation.

describe the purpose for which the

process this return, to such person.

proceeds are to be used.

Lines 1b through 1d. Check the

Paid Preparer

corresponding box indicating whether the

Line 7. Total proceeds equal the sum of

allocation is national, local, state, or tribal.

If an authorized officer of the issuer filled

lines 4 through 6.

in this return, the paid preparer’s space

Line 2. If the allocation is from a state,

Note. For Midwestern tax credit bonds

should remain blank. Anyone who

enter the state abbreviation.

matching pledged funds are included in

prepares the return but does not charge

Part VII—Miscellaneous

total proceeds for the purpose of

the organization should not sign the

determining the percentage of proceeds

return. Certain others who prepare the

Line 1a. Check the box if there is a

to be used for qualified purpose

return should not sign. For example, a

reserve fund described in section

expenditures. Thus, for Midwestern tax

regular, full-time employee of the issuer,

54A(d)(4)(C) (sinking fund) that is

credit bonds matching pledged funds as

such as a clerk, secretary, etc., should

expected to repay the issue at maturity.

well as bond proceeds must be

not sign.

Line 1b. A reserve may be funded in

accounted for in Part V. For qualified tax

unequal periodic installments so long as it

Generally, anyone who is paid to

credit bonds issued under section 54A,

prepare a return must sign it and fill in the

is funded no sooner than in equal periodic

lines 4 and 7, available project proceeds

installments. Check the box if the reserve

other blanks in the Paid Preparer’s Use

and total proceeds, respectively, should

fund is funded no sooner than in equal

Only area of the return. The paid preparer

equal the same amount.

periodic payments.

must:

•

Part V—Description of Use of

Sign the return in the space provided

Line 1c. Check the box if either the

for the preparer’s signature,

Proceeds for Qualified Purpose

reserve fund is expected to result in an

•

Enter the preparer information, and

amount greater than the amount

Expenditures

•

Give a copy of the return to the issuer.

necessary to repay the issue or if the

Lines 1a through 12. Enter the dollar

yield on the reserve fund is greater than

Part VIII—Consent to

amount of proceeds allocated to each

the permitted sinking fund yield (entered

Disclosure of Certain

qualified purpose expenditure on the

in Part III, line 6).

Information From This Return

corresponding line.

Line 1d. For purposes of monitoring the

Line 13. Enter the dollar amount of

arbitrage requirements of section 148,

Line 1. If the issuer consents to the

proceeds allocated to each qualified

such monitoring shall include the

IRS’s publication, through a website or

purpose expenditure not otherwise

arbitrage requirements of section 54A. If

other publication, of its name and

itemized in lines 1a through 12 and

the issuer has established such written

address, employer identification number,

describe the use of proceeds.

procedures, check the box.

name and description of bond issue, date

-4-

Instructions For Form 8038-Tc - Information Return For Tax Credit Bonds And Specified Tax Credit Bonds Page 4

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