Table of Contents
- Future Developments
- General Instructions
- Specific Instructions
- Paperwork Reduction Act Notice.
For the latest information about developments related to Form 8912 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form8912.
Use Form 8912 to claim the credit for the following tax credit bonds.
Clean renewable energy bond (CREB).
New clean renewable energy bond (NCREB).
Qualified energy conservation bond (QECB).
Qualified zone academy bond (QZAB).
Qualified school construction bond (QSCB).
Build America bond (BAB).
Generally, in lieu of, or in addition to, receiving periodic interest payments from the issuer, the holder of the bond is allowed an income tax credit. The credit compensates the holder for lending money to the issuer and functions as interest paid on the bond. Build America bond holders receive taxable interest from the issuer in addition to being allowed an annual income tax credit.
If the issuer of the bond makes an irrevocable election to have section 54AA(g) (for a qualified build America bond under 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 receive a refundable credit under section 6431(a), no credit is allowed to the holder under sections 54AA or 54A, respectively, for that bond.
A taxpayer holding a CREB or qualified tax credit bond (a qualified tax credit bond does not include a QZAB issued before October 4, 2008) on 1 or more credit allowance dates can claim the credit by filing Form 8912 for each tax year in which it holds the bond on a credit allowance date.
Generally, the credit allowance dates are:
September 15, and
The credit allowance date also includes the last day on which the qualified tax credit bond is outstanding.
Cooperative electric company—a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or a not-for-profit electric utility that has received a loan or loan guarantee under the Rural Electrification Act,
Clean renewable energy bond lender—a lender that is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, including any affiliated entity which is controlled by such lender, or
Governmental body—any state, territory, possession of the United States, the District of Columbia, Indian tribal government, and any political subdivision thereof.
Separate entries and calculations are required for each bond with a different issuance date or a different credit rate.
Enter the total from Part III, line 14. This amount is the total bond credits reported to you on Form(s) 1097-BTC.
Enter the amount from Part IV, line 20. This amount is the total bond credits from bonds held by you or your nominee(s) and not reported to you on Form(s) 1097-BTC. This amount may also include bond credits reported to you from a pass-through entity (partnership, S corporation, estate, trust, regulated investment company, and real estate investment trust) that were not reported to you on Form(s) 1097–BTC.
You may receive Form(s) 1097-BTC from a pass-through entity reporting your share of bond tax credits. The entity may also report your share of bond tax credits on a form/schedule/statement other than the Form(s) 1097-BTC. In such a case, do not double-count amounts reported to you. Include any amount reported to you on Form(s) 1097-BTC from a pass-through entity on line 13, and not on line 18. For example, if you own an interest in a partnership, and the partnership reports your share of bond tax credits earned by the partnership on a Schedule K-1 (Form 1065) as well as on a Form 1097-BTC, do not double-count these amounts. Include the amount reported to you on Form 1097-BTC by the partnership on line 13, and not on line 18.
Enter the amount of the credit carryforward (from prior years) that is attributable to a qualified tax credit bond or a BAB. Credits attributable to a CREB, or a QZAB issued before October 4, 2008, cannot be carried forward.
The credit allowed for the current year may be limited based on your tax liability. Use Part II to figure the allowable credit.
Enter the total allowable credit, if any, from your tax return as follows.
Individuals. Enter the amount from Form 1040, lines 49 through 54 (Form 1040NR, lines 47 through 51). Do not include any general business credit claimed on Form 3800, or any prior year minimum tax.
Estates and trusts. Enter the total of any write-in credits from Form 1041, Schedule G, line 2e.
Corporations. Enter the amount from Form 1120, Schedule J, line 5b (or the applicable line of your return).
If you do not have an entry space for these credits on your tax return, include the allowable credit on the “Total credits” line with the applicable notation (for example, “CREB” or “QECB”).
|Line 11 x||Taxable income for the year attributable to your interest in the pass-through entity|
|Taxable income for the year|
For line 12, add the line 1 and line 2 credits separately figured for each interest in a pass-through entity (as limited by the formula above for each such interest) to the total credit on line 4 not attributable to that pass-through entity. Enter on line 12 the smaller of this result or the amount on line 11. This limitation only applies to a CREB credit received from a pass-through entity.
For line 12, add the line 1 and line 2 credits separately figured for each interest in a pass-through entity (as limited by the formula above for each such interest) to the total credit on line 6 not attributable to that pass-through entity. Enter on line 12 the smaller of this result or the amount on line 11. This limitation only applies to a CREB credit received from a pass-through entity.
Part III is used to list and total credits that are reported to you on Form(s) 1097-BTC. Complete and attach as many copies of Part III as needed to list the credits you are reporting for the current tax year. Do not include credit amounts previously claimed on any of your returns. If multiple copies of Part III are completed, enter the total of all Parts III, lines 14, on Part I, line 1.
Enter the Form 1097-BTC issuer's federal identification number shown on Form 1097-BTC.
Enter the amount shown in box 1 of any Form 1097-BTC you receive.
Fiscal year filers should use information from applicable boxes 5a through 5l, Form 1097-BTC, to claim the credit for their fiscal tax year.
Add the amounts listed on line 13, column (c) and enter the total on line 14. If you complete and attach 1 copy of Part III, enter the amount from line 14 on line 1. If you complete and attach multiple copies of Part III, add the amounts entered for all lines 14 and enter the total on line 1.
(.70) of the total credit figured for the tax year. The amount reported in boxes 5a-5l of Form 1097-BTC and that is included in line 14 should not exceed 70% of the credit figured under section 54A(b) for these bonds.
Complete and attach a Part IV for each bond you held or bond credits received from a pass-through entity that were not reported to you on Form(s) 1097-BTC. Complete and attach as many copies of Part IV as you need to claim the credit(s) for each bond you held directly or through a nominee and for which you did not receive a Form 1097-BTC. Also, complete a separate Part IV for each bond credit passed through to you from a pass-through entity for which a Form 1097-BTC was not issued. If multiple copies of Part IV are completed, enter the total of all Parts IV, lines 20, on Part I, line 2.
If you are reporting a bond credit received from a pass-through entity, complete lines 15a and 15b and enter the credit amount on line 18, column (f).
Enter the bond issuer's name and address. If the credit was received from a pass-through entity, enter the name of the entity distributing the bond credit.
Enter the bond issuer's employer identification number. If the credit was received from a pass-through entity, enter the employer identification number of the pass-through entity distributing the credit.
Enter the CUSIP number of the bond. If there is no CUSIP number, enter the principal payment dates of the bond. For CREBs, enter the CUSIP number and principal payment dates. For BABs, enter the CUSIP number and interest payment dates.
Enter the face amount of the CREB, qualified tax credit bond, or QZAB (issued before October 4, 2008) minus any payment of principal received. For a BAB, enter the amount of interest payable.
The credit rate for the CREB, qualified tax credit bond, and QZAB (issued before October 4, 2008) is the rate published on the Treasury Direct website under “IRS Tax Credit Bond Rates” at www.treasurydirect.gov/govt/rates/rates_irstcb.htm for the first day on which there is a binding contract in writing for the sale or exchange of the bond.
The credit rate for QZABs issued before July 1, 1999, is 110% of the long-term applicable federal rate (AFR), compounded annually, for the month and year the bond is issued. The IRS announces the long-term AFR monthly in a series of revenue rulings published in the Internal Revenue Bulletin.
The credit rate for a BAB is 35%.
Generally, enter 25% for each credit allowance date you hold a CREB, or qualified tax credit bond during your tax year. Enter 100% for a BAB, or a QZAB issued before October 4, 2008.
Example. Your tax year begins December 1, 2014, and ends November 30, 2015. You purchased a QECB on March 16, 2015, and held it through the end of the tax year ending November 30, 2015. You would enter 50% computed as follows.
However, the 25% will be prorated if a CREB or qualified tax credit bond is issued, redeemed, or matures during the 3-month period ending on a credit allowance date with respect to which you are claiming the credit. The percentage of credit allowed for that credit allowance date is prorated for the number of days the bond was outstanding during the 3-month period.
Example. Your tax year begins December 1, 2014, and ends November 30, 2015. You purchased a QECB on March 23, 2015, the issue date of the bond. Since the bond was not held for the entire 3-month period ending on June 15, 2015, the prorated portion of the 25% is figured by dividing (a) the number of days the bond was outstanding beginning on the day after the date the bond was issued and ending on the next credit allowance date by (b) the number of days included in the 3-month period beginning on the day after the credit allowance date and ending on the next credit allowance date. See below.
|84 days (number of days from March 24 through June 15)||= .913 x 25% = 23%|
|92 days (number of days from March 16 through June 15)|
You would enter 48% computed as follows.
This amount is the income tax credit to the holder of a tax credit bond. If the bond credit is from a pass-through entity, enter the amount of the credit in column (f). You must complete lines 15a and 15b.
We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below.
|Recordkeeping||6 hr., 56 min.|
|Learning about the law or the form||1 hr., 59 min.|
|Preparing and sending the form to the IRS||2 hr., 11 min.|
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.
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