Instructions For Form 1097-Btc - Bond Tax Credit

land on which such a facility is to be constructed with the

requirement to file electronically. For more information on

proceeds, as provided in section 54F.

penalties for failure to file electronically, see part F in the

2015 General Instructions for Certain Information Returns.

Clean renewable energy bond. An obligation that is

part of an issue, 95% of the proceeds of which are used

Statement to Recipient

for capital expenditures incurred by qualified borrowers for

If required to file Form 1097-BTC, you must furnish a

one or more qualified projects, as defined in section 54.

statement to the recipient quarterly for each credit amount

Build America bond (Tax Credit). An obligation issued

indicated on or before the 15th day of the 2nd calendar

by a state or local government (excluding private activity

month after the close of the calendar quarter in which the

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

credit was allowed.

Who Must File

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

Reporting period:

To recipient (on or before):

who is allowed a tax credit as a holder, directly or

Quarter: January – March

May 15*

indirectly, of a tax credit bond or a stripped credit coupon

Quarter: April – June

August 15*

on one or more credit allowance dates during the calendar

year in an amount of at least $10. Filings of Form

Quarter: July – September

November 15*

1097-BTC with respect to a bond, by the issuer or the

Annual/4

Quarter: October –

February 15*

issuer's agent, must be made on a separate Form

December

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

*Dates may change due to weekends or holidays

from the bond issuer or agent, such as brokers, nominees,

mutual funds, or partnerships, who are further distributing

the credit must file only one Form 1097-BTC per recipient

For the first three quarters, report to the recipient only

or account, aggregating credit from all applicable bonds.

the amounts for the months of the applicable quarter. Box

1 should not be completed and box 6 is optional.

The tax credit from tax credit bonds or stripped credit

coupons is allowed on each credit allowance date for

You are not required to furnish a report solely for the

which the bond was outstanding or to which the stripped

fourth quarter because the fourth quarter amounts are

credit coupon corresponds. For qualified tax credit bonds

reported with the annual filing. For the annual filing, report

and clean renewable energy bonds the credit allowance

the credits for each month in boxes 5a–5l; report the total

dates are March 15, June 15, September 15, December

of those amounts in box 1; and complete the rest of the

15, and the last day on which the bond is outstanding. For

form as applicable. Furnish the annual filing to the

bonds issued during the 3-month period ending on a

recipient by February 16, 2016.

credit allowance date, the amount of the credit is

If any amounts previously furnished for the first three

determined ratably based on the portion of the 3-month

quarters need to be corrected, report the correct amounts

period during which the bond is outstanding. The same

for the annual reporting and explain the correction to the

ratable determination of credit applies when a bond is

recipient; no explanation is required for the IRS filing.

redeemed or matures. For build America bonds (Tax

Credit), the credit allowance dates are the interest

For the report furnished to the recipient (quarterly or

payment dates. For qualified zone academy bonds issued

annual), you may use Copy B or your own substitute

before October 4, 2008, the credit allowance date is the

statement reporting all the same applicable information

last day of the 1-year period beginning on the issue date

(the reporting for the first three quarters may be furnished

of the bond and each anniversary of such day thereafter.

electronically). See Publication 1179, General Rules and

The tax credit allowed to holders of any tax credit

Specifications for Substitute Forms 1096, 1098, 1099,

bonds or stripped credit coupons is treated as interest

5498, and Certain Other Information Returns, for specific

which is included in gross income and must be reported

rules about providing substitute statements to recipients.

as interest income on a Form 1099-INT or Form

The IRS encourages Form 1097-BTC issuers to

1099-OID, as applicable. For more information on

provide the credit information to the recipient monthly if

reporting the tax credit treated as interest income paid

applicable, and as soon after the end of the month in

from tax credit bonds, see the Instructions for Forms

which a credit arises as possible.

1099-INT and 1099-OID.

For more information about the requirement to furnish a

When to File

statement to the recipient, see part M in the 2015 General

File Copy A of Form 1097-BTC with the IRS by February

Instructions for Certain Information Returns.

29, 2016 (March 31, 2016, if filed electronically). See

Bond Issuer. If issuing the Form 1097-BTC as an issuer

Statement to Recipient, below, for furnishing statements

of the bond or its agent, box 2a of the form will always

to recipients.

reflect code “C” and box 2b must reflect the CUSIP

number for the bond or stripped coupon, unless a CUSIP

Penalties for Failure to File

number was not issued for the bond. See instructions for

There are penalties for failure to file correct information

boxes 2a and 2b.

returns by the due date and for failure to furnish correct

payee statements. See part O in the 2015 General

Instructions for Certain Information Returns for details.

The failure to file Forms 1097-BTC also includes the

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Instructions for Form 1097-BTC (2015)

Instructions For Form 1097-Btc - Bond Tax Credit - 2015 Page 2

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