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Form 6497 (Rev. 8-2019) Page 2
Instructions Definitions Line 5. Enter the program name or number
that authorizes the payment.
Code. given outright for property designed to Line 6.
Section references are to the Internal Revenue Energy grant. An energy grant is a payment Make an entry in columns 6(a)
conserve or produce energy, with no through 6(e) for each recipient of a
Future Developments requirement to repay the money. nontaxable energy grant or subsidized energy
financing. If you need more space, attach
For the latest information about developments Subsidized energy financing. Subsidized additional Forms 6497.
such as legislation enacted after they were loan) made directly or indirectly under a Column 6(a).
related to Form 6497 and its instructions, energy financing is financing (for example, a Show the name and address
published, go to www.irs.gov/Form6497. federal, state, or local government program, of the entity that received the nontaxable
whose principal purpose is to provide energy grant or subsidized energy financing.
What’s New subsidized financing for projects designed to Do not show the name of an officer,
New Where-To-File address. See Where To conserve or produce energy. Subsidized employee, etc.
File, later, for the current address for filing energy financing can also include financing Column 6(b). Complete this column for
Form 6497. under a federal, state, or local program sole proprietors without EINs.
having two or more principal purposes, but (a) Column 6(c). Complete this column if no
Purpose of Form only if one of the principal purposes is to entry was made in column 6(b).
grants or subsidized energy financing made conservation or production projects, and (b) Column 6(d).
Use Form 6497 to report nontaxable energy provide subsidized financing for energy Enter the total amount of
under government programs whose principal only if the financing is to be used for energy nontaxable energy grants provided to the
purpose is to conserve or produce energy. production or conservation purposes (the recipient during the calendar year under the
This reporting is required only for recipients “use test”) or is provided out of funds program shown on line 5.
that are businesses (including sole designated specifically for energy production Column 6(e). Enter the total amount of
proprietors). or conservation. Loan proceeds meet the use subsidized energy financing provided to the
Form 6497 lists the information to be test only if any loan-related documents recipient during the calendar year under the
furnished about the nontaxable energy grants indicate that the funds are intended for that program shown on line 5. The amount of
or subsidized energy financing, and about the use. subsidized energy financing may be different
recipients. Only one program should be Financing is made when funds for from the actual amount of money expended.
reported on each form. This form should also subsidized energy financing are disbursed. Example. If a government agency spent
be used to report funds received from the The source of the funds for a program is not $1,000 to permit a $5,000 loan to be made
proceeds of tax-exempt bonds that have a factor in determining whether the financing with an interest rate lower than it would have
been used to finance energy conservation or is subsidized. Financing is subsidized if the been otherwise, the amount of subsidized
production property. terms of the financing provided to the energy financing is $5,000.
Grants are always taxable to recipients recipient in connection with the program or
unless specifically exempted by the federal used to raise funds for the program are more Paperwork Reduction Act Notice
statute authorizing the grants. The originator favorable than terms generally available We ask for the information on this form to
of the grant or subsidy program should commercially. In addition, financing is carry out the Internal Revenue laws of the
advise all disbursing agents whether the subsidized if the principal obligation of the United States. You are required to give us the
program is taxable or nontaxable. Taxable financing provided to the recipient is reduced information. We need it to ensure that you are
grants are reported on Form 1099-G, Certain by funds provided under the program. complying with these laws and to allow us to
Government Payments. For details, see the Payer. A payer is any person (including an figure and collect the right amount of tax.
Instructions for Form 1099-G. Indian tribal government) who administers a You are not required to provide the
federal, state, or local government program information requested on a form that is
Who Must File that provides nontaxable grants or subsidized subject to the Paperwork Reduction Act
Any person (including an Indian tribal financing under programs whose principal unless the form displays a valid OMB control
government) who administers a government purpose is the production or conservation of number. Books or records relating to a form
program for a federal, state, or local energy. It includes agents (such as a bank) or its instructions must be retained as long as
governmental entity or agent of that entity that administer federal, state, or local their contents may become material in the
that provides nontaxable energy grants or government programs and actually make the administration of any Internal Revenue law.
subsidized energy financing for energy payments to the recipient. Generally, tax returns and return information
property to business recipients under Recipient. A recipient is the business entity are confidential, as required by section 6103.
programs whose principal purpose is energy (including a sole proprietor) that received the The time needed to complete and file this
production or conservation must file Form grant or financing. form will vary depending on individual
6497. If a federal agency is providing the circumstances. The estimated average time
funds to a state agency, and the state turns Specific Instructions is:
the funds over to a bank or similar disburser Line 1. Generally, this will be the name of the Recordkeeping . . . . 2 hr., 23 min.
to act as its agent in disbursing the money for federal, state, or local governmental entity
the above purposes, only the bank, or that makes the nontaxable energy grants or Learning about the law
disburser, must file Form 6497 to show the provides the subsidized energy financing. If or the form . . . . . . . . 24 min.
actual recipient information. an entity (such as a bank) is administering a Preparing, copying, and
Generally, reporting on Form 6497 is program as the designated agent of one of sending the form to the IRS . . 27 min.
required only for nontaxable energy grants or the above governmental entities, enter the If you have comments concerning the
subsidized energy financing made for energy name of the agent and be sure to fill in line 4. accuracy of these time estimates or
property (as defined in section 48 and the Lines 2a and 2b. Enter the address where suggestions for making this form simpler, we
regulations under section 48). any IRS questions about Form 6497 can be would be happy to hear from you. You can
When To File directed. send us comments through www.irs.gov/
File Form 6497 for the calendar year by the Line 3. Use the employer identification FormComments. Or you can write to the
last day of February following the year of the number (EIN) for the payer shown on line 1. Internal Revenue Service, Tax Forms and
payment. Do not use the social security number of an Publications Division, 1111 Constitution Ave.
officer or employee. NW, IR-6526, Washington, DC 20224. Do not
send this form to this address. Instead, see
Where To File Line 4. If line 1 shows the name of an agent, Where To File on this page.
LB&I Central Compliance Practice Area use line 4 to show the federal, state, or local
1919 Smith St., M/S 1000-HOU governmental entity for which the agent is
Houston, TX 77002 administering the program.
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