Specific Instructions

Line 2. Taxpayer Identification Number

Enter the applicant's employer identification number (EIN) if the applicant:

  • Has an EIN;

  • Has employees;

  • Is a corporation, partnership, trust, estate, or other entity required to have an EIN; or

  • Is electing on line 17 to apply for a QTDP grant.

If the applicant is required to but does not have an EIN, the applicant must apply for one on Form SS-4, Application for Employer Identification Number. An EIN can be applied for:

  • Online—Click on the EIN link at www.irs.gov/businesses/small. The EIN is issued immediately once the application information is validated.

  • By telephone at 1-800-829-4933.

  • By mailing or faxing Form SS-4.

The applicant must have received an EIN by the time Form 8942 is filed in order for the form to be processed. For more information about EINs, see Publication 1635.

For the IRS to pay a QTDP grant, an application for a QTDP grant must include the applicant's EIN.

Lines 3 and 4

Enter the address of the location of the applicant's principal place of business. Include the suite, room, or other unit number after the street address. For purposes of Form 8942, a P.O. box number is not a valid street address.

Line 7

Check the box that applies.

An affiliated group is one or more chains of includible corporations (section 1504(a)) connected through stock ownership with a common parent corporation. The common parent must be an includible corporation and the following requirements must be met.

  1. The common parent must own directly stock that represents at least 80% of the total voting power and at least 80% of the total value of the stock of at least one of the other includible corporations.

  2. Stock that represents at least 80% of the total voting power and at least 80% of the total value of the stock of each of the other corporations (except for the common parent) must be owned directly by one or more of the other includible corporations.

For this purpose, the term “stock” generally does not include any stock that  
(a) is nonvoting, (b) is nonconvertible,  
(c) is limited and preferred as to dividends and does not participate significantly in corporate growth, and (d) has redemption and liquidation rights that do not exceed the issue price of the stock (except for a reasonable redemption or liquidation premium). See section 1504(a)(4). See section 1563(d)(1) for the definition of stock for purposes of determining stock ownership.

Lines 9 through 12

Enter the name, address, and EIN of the common parent. See the instructions for Lines 3 and 4 for entering address information.

Line 13

Enter the name and address of the contact person. See the instructions for Lines 3 and 4 for entering address information.

The contact person is the person the IRS or HHS may contact if there is an issue with the application. If the contact person does not have legal authority to bind the applicant, the applicant must attach to Form 8942 a properly executed Form 2848. On Form 2848, line 3, enter “Section 9023 of the Affordable Care Act” as the type of tax. Leave the entry spaces for Tax Form Number and for Year(s) or Period(s) blank. Check the box on line 4.

Line 14

On line 14a, enter the name of the project. If the applicant is filing applications for more than one project, select names for the different projects that are readily distinguishable from each other.

On line 14b, enter a brief description of the project. Limit the description to 50 words or fewer.

Lines 15 and 16

Enter the number of employees in all businesses of the applicant on the date the application is filed. In determining the number of employees, include the employees of all members of the following that the applicant is a member of.

  • A controlled group of corporations (defined in section 52(a)). For the definition of a controlled group of corporations, see Eligible Taxpayer, earlier.

  • A group of trades or businesses under common control (defined in section 52(b)).

  • An affiliated service group (defined in section 414(m)).

Attach a statement listing the name, address, and EIN of each of the other members.

For purposes of this section, the term employee includes both full-time and part-time employees but does not include leased employees.

Line 17

Complete line 17 to elect to apply for a QTDP grant for tax year 2009, 2010, or both. If the applicant elects to apply for a QTDP grant, complete lines 18 and 19. Otherwise, skip to line 20.

If the applicant is filing multiple applications, the elections made on all of the applications must be consistent. See Consistency requirement, above.

Line 18

Enter the applicant’s unique nine-digit Data Universal Numbering System (D-U-N-S) number from Dun and Bradstreet. If the applicant does not already have a D-U-N-S number, it may request one at no cost by calling the dedicated toll-free D-U-N-S number request line at 1-866-705-5711. Information on obtaining a D-U-N-S number may be obtained at www.grants.gov/applicants/org_step1.jsp.

Line 19

Entities referred to in section 54(j)(4) are the following.

  • Cooperative electric company. This is a mutual or cooperative electric company described in section 501(c)(12) or 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. This is 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, and including any affiliated entity which is controlled by such lender.

  • Governmental body. This is any state, territory, possession of the United States, the District of Columbia, Indian tribal government, and any political subdivision thereof.

Line 21

Enter the number of full-time and part-time employees in the United States whose work is directly billed to the project and the average salaries of the employees in each category.

Note.

For this purpose, both actual employees of the applicant and leased employees may be included.

Lines 26 and 27

The applicant can attach a statement, not to exceed 250 words, supporting line 26 and a statement, not to exceed 250 words, supporting line 27.

Part III. Qualified Investment

Enter on lines 28 through 33 the amount of qualified investment in each listed category. Qualified investments may include expenses for wages, supplies and lab costs, depreciable property, contractor costs, and any other costs that would be considered part of the qualified investment for the project. Applicants for QTDP grants for tax year 2009 whose 2009 tax year ends after the date the application is filed must complete column (a) and columns (b) and (c), as applicable. All other applicants, complete only columns (b) and (c), as applicable.

Qualified investments do not include amounts paid or incurred to another person for research services relating to the project if the research services were not performed on behalf of the applicant.

If the applicant is filing applications for multiple projects, qualified investment included for any project on any one Form 8942 cannot include amounts included in qualified investment for any other project on any other Form 8942. Qualified investments related to multiple projects, must be allocated between the projects using a reasonable method.

Column (a).   Enter in column (a) of each line qualified investment that is the sum of:
  • Qualified investment actually paid or incurred as of the date the application is filed; and

  • Qualified investment projected to be paid or incurred between the date the application is filed and the earlier of the end of the 2009 tax year or September 30, 2010.

Column (b).   Enter the total amount paid or incurred (including the amount projected to be paid or incurred) for the 2009 tax year for each cost on line 28 through line 33.

Column (c).   Enter the total amount paid or incurred (including the amount projected to be paid or incurred) for the 2010 tax year for each cost on line 28 through line 33.

Line 31

Qualified investment derived from third-party contractors only includes amounts paid or incurred on behalf of the applicant pursuant to an agreement that is entered into prior to the performance of the research services relating to the project and the agreement required that the research services be performed on behalf of the applicant. If research services are not performed on behalf of the applicant, then the applicant cannot include costs relating to those services in the qualified investment.

Line 33

Enter the amount of qualified investment derived from depreciable property that is attributable to qualified progress expenditures.

Project Information Memorandum

Attach a completed Project Information Memorandum to Form 8942.

The Project Information Memorandum form is available at http://grants.nih.gov/grants/funding/QTDP_PIM/index.htm. See Notice 2010-45 for additional information on the Project Information Memorandum.


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