PDF document

- 1 -

Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print
AH XSL/XML Fileid: … orm-8912/202412/a/xml/cycle04/source (Init. & Date) _______

Page 1 of 5 10:46 - 8-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Instructions for Form 8912

(Rev. December 2024)
Credit to Holders of Tax Credit Bonds

Section references are to the Internal Revenue Code unless insurance company, or other corporation actively engaged in the
otherwise noted. business of lending money. In addition, the shareholder of an S
corporation may claim the credit from a QZAB held by an S
Future Developments corporation that is an eligible taxpayer. The credit allowance date
For the latest information about developments related to Form is the last day of (a) the 1-year period beginning on the date the
8912 and its instructions, such as legislation enacted after they bond was issued, and (b) each successive 1-year period
were published, go to IRS.gov/Form8912. thereafter. See section 1397E (as in effect on October 3, 2008).
QZABs issued after October 3, 2008, are considered
Reminder ! qualified tax credit bonds and the rules of sections 54A
Continuous-use forms and instructions. Form 8912 and CAUTION (as in effect on December 21, 2017) and 54E (as in
these instructions will no longer be updated annually. Instead, effect on December 21, 2017) apply.
they will only be updated when necessary. The credit is not
available for bonds issued after December 31, 2017. Holders of BABs. A taxpayer holding a BAB on an interest
payment date can claim the credit by filing Form 8912. An
General Instructions interest payment date is any date on which the bondholder of
record is entitled to a payment of interest under the bond.
Purpose of Form Section 13404 of the Tax Cuts and Jobs Act of 2017, P.L.
Use Form 8912 to claim the credit for the following tax credit ! 115-97, 131 Stat. 2054 (2017), repealed sections 54,
bonds. CAUTION 54A–F, and 54AA effective for bonds issued after
• Clean renewable energy bond (CREB). December 31, 2017.
• New clean renewable energy bond (NCREB).
• Qualified energy conservation bond (QECB). Definitions
• Qualified zone academy bond (QZAB).
• Qualified school construction bond (QSCB). CREB. A CREB is any bond issued after 2005 and before 2010
• Build America bond (BAB). by a qualified issuer, the proceeds of which are used for capital
expenditures incurred by a qualified borrower for a qualified
Generally, in lieu of, or in addition to, receiving periodic project. In addition, the bond must be designated by the issuer
interest payments from the issuer, the holder of the bond is as a CREB under section 54 (as in effect on December 21,
allowed an income tax credit. The credit compensates the holder 2017). An issuer can make such a designation only if it applied
for lending money to the issuer and functions as interest paid on for and received a CREB allocation from the IRS.
the bond. Build America bond holders receive taxable interest A qualified issuer is either a:
from the issuer in addition to being allowed an annual income tax Cooperative electric company—a mutual or cooperative
•
credit. electric company described in section 501(c)(12) or section
Note. If the issuer of the bond made an irrevocable election to 1381(a)(2)(C), or a not-for-profit electric utility that has received
have section 54AA(g) (for a qualified build America bond under a loan or loan guarantee under the Rural Electrification Act;
section 54AA(g)(2)) or section 6431(f) (for a specified tax credit • Clean renewable energy bond lender—a lender that is a
bond under section 6431(f)(3)(A)) apply to the bonds and cooperative that is owned by, or has outstanding loans to, 100 or
receive a refundable credit under section 6431(a), no credit is more cooperative electric companies and is in existence on
allowed to the holder under section 54AA or 54A, respectively, February 1, 2002, including any affiliated entity that is controlled
for that bond. by such lender; or
• Governmental body—any state or territory of the United
Who Can Claim the Credits States, the District of Columbia, Indian tribal government, and
any political subdivision thereof.
A taxpayer holding a CREB or qualified tax credit bond (a
qualified tax credit bond doesn't include a QZAB issued before A qualified borrower is a mutual or cooperative electric
October 4, 2008) on one or more credit allowance dates can company described in section 501(c)(12) or section 1381(a)(2)
claim the credit by filing Form 8912 for each tax year in which it (C), or a governmental body.
holds the bond on a credit allowance date. A qualified project is any qualified facility (as determined
under section 45(d) without regard to paragraph (10) and to any
Generally, the credit allowance dates are: placed-in-service date) owned by a qualified borrower.
• March 15,
• June 15, Qualified tax credit bond. A qualified tax credit bond means a
• September 15, and NCREB, QECB, QZAB (issued after October 3, 2008), or QSCB
• December 15. that is a part of an issue that meets the requirements of section
54A(d)(2), (3), (4), (5), and (6) (as in effect on December 21,
The credit allowance date also includes the last day on which 2017).
the qualified tax credit bond is outstanding.
NCREB. An NCREB is any bond issued after October 3, 2008,
Holders of QZABs issued before October 4, 2008. An and before January 1, 2018, by a qualified issuer as a new
eligible taxpayer holding a QZAB issued before October 4, 2008, clean renewable energy bond and 100% of the available project
on the credit allowance date can claim the credit by filing Form proceeds are used for capital expenditures incurred by
8912. To be an eligible taxpayer, the taxpayer must be a bank,
Instructions for Form 8912 (Rev. 12-2024) Catalog Number 57584P
Sep 6, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

- 2 -

Enlarge image

Page 2 of 5         Fileid: … orm-8912/202412/a/xml/cycle04/source                                    10:46 - 8-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

governmental bodies, public power providers, or cooperative           Line 2
electric companies for one or more qualified renewable 
energy facilities.                                                    Enter the amount from Part IV, line 20. This amount is the total 
  A qualified issuer is a public power provider, a cooperative        bond credits from bonds held by you or your nominee(s) and not 
electric company, a governmental body, a clean renewable              reported to you on Form(s) 1097-BTC. This amount may also 
energy bond lender, or a not-for-profit electric utility that has     include bond credits reported to you from a pass-through entity 
received a loan or loan guarantee under the Rural Electrification     (partnership, S corporation, estate, trust, regulated investment 
Act.                                                                  company, and real estate investment trust) that weren't reported 
  A clean renewable energy bond lender is a lender that is a          to you on Form(s) 1097-BTC.
cooperative that is owned by, or has outstanding loans to, 100 or     Note. You may receive Form(s) 1097-BTC from a pass-through 
more cooperative electric companies and is in existence on            entity reporting your share of bond tax credits. The entity may 
February 1, 2002, and includes any affiliated entity that is          also report your share of bond tax credits on a form/schedule/
controlled by that lender.                                            statement other than the Form(s) 1097-BTC. In such a case, 
  A cooperative electric company is a mutual or cooperative           don't double-count amounts reported to you. Include any amount 
electric company described in section 501(c)(12) or section           reported to you on Form(s) 1097-BTC from a pass-through entity 
1381(a)(2)(C).                                                        on line 13, and not on line 18. For example, if you own an interest 
  A governmental body is any state or Indian tribal                   in a partnership, and the partnership reports your share of bond 
government, or any political subdivision thereof.                     tax credits earned by the partnership on a Schedule K-1 (Form 
  A public power provider is a state utility with a service           1065) as well as on a Form 1097-BTC, don't double-count these 
obligation, as defined in section 217 of the Federal Power Act (as    amounts. Include the amount reported to you on Form 1097-BTC 
in effect on October 3, 2008).                                        by the partnership on Part III, line 13, and not on Part IV, line 18.
  A qualified renewable energy facility is a qualified facility 
(as determined under section 45(d) without regard to paragraphs       Line 3
(8) and (10) and to any placed-in-service date) owned by a 
public power provider, a governmental body, or a cooperative          Enter the amount of the credit carryforward (from prior years) 
electric company.                                                     that is attributable to a qualified tax credit bond or a BAB. Credits 
                                                                      attributable to a CREB, or a QZAB issued before October 4, 
QECB. A QECB is any bond issued after October 3, 2008, and            2008, can't be carried forward.
before January 1, 2018, by a state or local government as a 
qualified energy conservation bond and 100% of the available 
                                                                      Line 5
project proceeds are used for one or more qualified conservation 
purposes. See section 54D(f) (as in effect on December 21,            Estates and trusts must allocate any CREB credit on line 4 
2017) for the definition of qualified conservation purposes.          between the estate or trust and the beneficiaries in the same 
QZAB. A QZAB is any bond issued after December 31,1997,               proportion as income was allocated and enter the beneficiaries' 
and before January 1, 2018, by a state or local government as a       share on line 5.
qualified zone academy bond and 100% of the available project 
proceeds are used to improve certain eligible public schools (for     Part II—Allowable Credit
QZABs issued before October 4, 2008, 95% or more of the               The credit allowed for the current year may be limited based on 
proceeds are used to improve certain eligible public schools).        your tax liability. Use Part II to figure the allowable credit.
QSCB. A QSCB is any bond issued after February 17, 2009, 
and before January 1, 2018, by a state or local government as a       Line 10b
qualified school construction bond and 100% of the available 
project proceeds are used for the construction, rehabilitation, or    Enter the total allowable credit, if any, from your tax return as 
repair of a public school facility or for the acquisition of land on  follows.
which the bond-financed facility is to be constructed.
                                                                      Individuals. Enter the amount from Form 1040, 1040-SR, or 
BAB. A BAB is any bond (other than a private activity bond)           1040-NR, line 19; and Schedule 3 (Form 1040), lines 2 through 
issued after February 17, 2009, and before January 1, 2011, by        5b, 6c through 6j, and 6l through 6z.
an issuer who makes an irrevocable election to have the rules of 
section 54AA (as in effect on December 21, 2017) apply and,           Estates and trusts. Enter the total of any write-in credits from 
except for that election, the interest on the bond would have         Form 1041, Schedule G, line 2e. But if the amount you enter on 
been excludable under section 103.                                    line 10b causes line 11 to be less than zero, then enter -0- on 
                                                                      line 11.
Specific Instructions                                                 Corporations.   Enter the amount from Form 1120, Schedule J, 
Separate entries and calculations are required for each bond          line 5b (or the amount from the applicable line of your return), 
with a different issuance date or a different credit rate.            plus any Form 8978 amount included on Schedule J, line 6. But if 
                                                                      the amount you enter on line 10b causes line 11 to be less than 
Part I—Current Year Credit                                            zero, then enter -0- on line 11.
      Complete Part(s) III and IV before completing Part I and 
TIP   Part II. See the instructions for Parts III and IV for more     Line 10c
      information.
                                                                      If you are filing Form 3800, enter the credit from Form 3800.

Line 1
Enter the total from Part III, line 14. This amount is the total bond 
credits reported to you on Form(s) 1097-BTC.

2                                                                                     Instructions for Form 8912 (Rev. 12-2024)

- 3 -

Enlarge image

Page 3 of 5 Fileid: … orm-8912/202412/a/xml/cycle04/source 10:46 - 8-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 12 Do not enter any bond credits for bonds issued after
December 31, 2017.
If you don't have an entry space for these credits on your tax CAUTION!
return, include the allowable credit on the “Total credits” line with
the applicable notation (for example, “CREB” or “QECB”). Line 13, Column (b1)
Holders of a CREB, or a QZAB issued before October 4,
2008. If you can't use all of the credit from Part I because of the Enter the Form 1097-BTC issuer's federal identification number
tax liability limit (for example, line 12 is smaller than line 4), you shown on Form 1097-BTC.
can deduct the unused credit for the current tax year. However,
you can choose to deduct the unused credit in the next tax year Line 13, Column (b2)
instead of the current tax year.
Because a current year deduction may further reduce the tax Enter the unique identifier shown in box 2b of Form 1097-BTC.
liability limit, you may need to refigure the tax liability limit and the
unallowed credit. Refigure the unallowed credit until it equals the
deduction. It may be necessary to use the “trial and error” Line 13, Column (c)
method.
Enter the amount shown in box 1 of any Form 1097-BTC you
Holders of a qualified tax credit bond or a BAB. If you can't
receive.
use all of the credit from Part I (for example, line 12 is smaller
than line 4), you may carry the unused portion of the credit to the If you receive Form(s) 1097-BTC from any pass-through
next tax year and add it to any credit allowable to the holder of ! entity reporting your share of bond credits, report the
the same bond in the next tax year. A holder of a qualified tax CAUTION credit on Part III, line 13.
credit bond or BAB can't deduct any unused credit.
Limitation on credit from pass-through entities. For a CREB Note. Fiscal year filers should use information from applicable
held by a pass-through entity, the credit included on line 1 (for a boxes 5a through 5l of Form 1097-BTC to claim the credit for
credit received from a pass-through entity that issued a Form their fiscal tax year.
1097-BTC) and line 2 (for a credit received from a pass-through
entity that didn't issue a Form 1097-BTC) is limited to the amount Line 14
of tax attributable to your taxable income from your interest in the
pass-through entity distributing the credit. Figure the credit Add the amounts listed on line 13, column (c), and enter the total
limitation separately for each interest in a pass-through entity on line 14. If you complete and attach one copy of Part III, enter
using the following limitation formula. 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
Taxable income for the year attributable to your interest in the 14 and enter the total on line 1.
Line 11 x pass-through entity
Taxable income for the year Part IV—Bond Credits From Bonds Held by You
and/or Your Nominee Not Reported to You on
Form 1097-BTC
If in the current tax year you had no taxable income attributable Complete and attach a Part IV for each bond you held or bond
to a particular interest in a pass-through entity, you can't claim credits received from a pass-through entity that weren't reported
any CREB credit this tax year for that interest. to you on Form(s) 1097-BTC. Complete and attach as many
All taxpayers (other than estates and trusts). For line 12, copies of Part IV as you need to claim the credit(s) for each bond
add the line 1 and line 2 credits separately figured for each you held directly or through a nominee and for which you didn't
interest in a pass-through entity (as limited by the formula above receive a Form 1097-BTC. Also, complete a separate Part IV for
for each such interest) to the total credit on line 4 not attributable each bond credit passed through to you from a pass-through
to that pass-through entity. Enter on line 12 the smaller of this entity for which a Form 1097-BTC wasn't issued. If multiple
result or the amount on line 11. This limitation only applies to a copies of Part IV are completed, enter the total of all Parts IV,
CREB credit received from a pass-through entity. lines 20, on Part I, line 2.
Estates and trusts. For line 12, add the line 1 and line 2
credits separately figured for each interest in a pass-through Note. If you are reporting a bond credit received from a
entity (as limited by the formula above for each such interest) to pass-through entity, complete lines 15a and 15b and enter the
the total credit on line 6 not attributable to that pass-through credit amount on line 18, column (f).
entity. Enter on line 12 the smaller of this result or the amount on Do not enter any bond credits for bonds issued after
line 11. This limitation only applies to a CREB credit received ! December 31, 2017.
from a pass-through entity. CAUTION

Part III—Bond Credit(s) Reported to You on
Line 15a
Form(s) 1097-BTC
Part III is used to list and total credits that are reported to you on Enter the bond issuer's name and address. If the credit was
Form(s) 1097-BTC. Complete and attach as many copies of Part received from a pass-through entity, enter the name of the entity
III as needed to list the credits you are reporting for the current distributing the bond credit.
tax year. Don't 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. Line 15b

Enter the bond issuer's employer identification number. If the
credit was received from a pass-through entity, enter the

Instructions for Form 8912 (Rev. 12-2024) 3

- 4 -

Enlarge image

Page 4 of 5 Fileid: … orm-8912/202412/a/xml/cycle04/source 10:46 - 8-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

employer identification number of the pass-through entity you are claiming the credit. The percentage of credit allowed for
distributing the credit. that credit allowance date is prorated for the number of days the
bond was outstanding during the 3-month period.
Line 17
Example 2. Your tax year begins December 1, 2017, and
If the bond was redeemed, sold, or otherwise disposed of, enter ends November 30, 2018. You held a QECB (issued on July 23,
the date. 2010) that matures on July 23, 2018. Since the bond wasn't held
for the entire 3-month period ending on September 15, 2018, the
prorated portion of the 25% is figured by dividing (a) the number
Line 18, Column (a) of days the bond was outstanding beginning on the day after the
last credit allowance date and ending on the maturity date by (b)
Enter the CUSIP number of the bond. If there is no CUSIP the number of days included in the 3-month period beginning on
number, enter the principal payment dates of the bond. For the day after the credit allowance date and ending on the next
CREBs, enter the CUSIP number and principal payment dates. credit allowance date.
For BABs, enter the CUSIP number and interest payment dates.

Line 18, Column (b) 38 days (number of days from June
16 through July 23)
Enter the face amount of the CREB, qualified tax credit bond, or = 0.413 x 25% (0.25) = 10%
92 days (number of days from June
QZAB (issued before October 4, 2008) minus any payment of 16 through September 15)
principal received. For a BAB, enter the amount of interest
payable.
You would enter 60% figured as follows.
Line 18, Column (c)
The credit rate for the CREB, qualified tax credit bond, and Credit allowance date %
QZAB is the rate published on the Fiscal Data website at March 15, 2018 25
FiscalData.Treasury.gov/datasets/qtcb-historical-interest-rates/ June 15, 2018 25
historical-qualified-tax-credit-bond-interest-rates for the first day
on which there is a binding contract in writing for the sale or September 15, 2018 10
exchange of the bond. 60
The credit rate for QZABs issued before July 1, 1999, is
110% of the long-term applicable federal rate (AFR), Generally, for bonds issued during the 3-month period ending
compounded annually, for the month and year the bond is on a credit allowance date, the sum of the prorated credit
issued. The IRS announces the long-term AFR monthly in a amounts for the first credit allowance date and the last credit
series of revenue rulings published in the Internal Revenue allowance date should equal 25% of the annual credit allowance.
Bulletin. Do not enter any bond credits for bonds issued after
December 31, 2017.
The credit rate for a BAB is 35%. CAUTION!

Line 18, Column (e) Line 18, Column (f)

Generally, enter 25% for each credit allowance date you hold a This amount is the income tax credit to the holder of a tax credit
CREB, or qualified tax credit bond during your tax year. Enter bond. If the bond credit is from a pass-through entity, enter the
100% for a BAB, or a QZAB issued before October 4, 2008. amount of the credit in column (f). You must complete lines 15a
and 15b.
Example 1. Your tax year begins December 1, 2017, and
ends November 30, 2018. You purchased a QECB (issued on
June 30, 2017) from the prior holder on March 16, 2018, and Line 20
held it through the end of the tax year ending November 30,
2018. You would enter 50% figured by including the day the bond Bond credit. Enter the total amounts from all Parts IV, lines 20,
was purchased as the first day on which the credit accrues, as on Part I, line 2.
follows. Interest income. The current year credit on line 4 (or for
estates and trusts, line 6) is deemed to be a payment of qualified
stated interest (as defined in Regulations section 1.1273-1(c))
Credit allowance date % and as such is treated as taxable interest income paid on the
credit allowance date, or for BABs, the interest payment date. If
June 15, 2018 25 the holder is on the accrual method, the holder must accrue the
September 15, 2018 25 credit amount as taxable interest income on the credit allowance
50 date or interest payment date.
If a holder of a tax credit bond sells the bond between credit
Do not enter any bond credits for bonds issued after allowance dates (or for BABs, interest payment dates), part of
! December 31, 2017. the sales price is treated as accrued interest to the date of the
CAUTION sale and must be reported as interest income. If a holder
purchases a bond between credit allowance dates or interest
However, the 25% will be prorated if a CREB or qualified tax payment dates, the interest accrued as of the date of the
credit bond is issued, redeemed, or matures during the 3-month purchase (as reflected in the purchase price) isn't included as
period ending on a credit allowance date with respect to which interest when the purchaser receives the value of the credit (and

4 Instructions for Form 8912 (Rev. 12-2024)

- 5 -

Enlarge image

Page 5 of 5  Fileid: … orm-8912/202412/a/xml/cycle04/source                                                 10:46 - 8-Nov-2024

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

the deemed payment of interest) on the next credit allowance       The time needed to complete and file this form will vary 
date or interest payment date. Instead, the payment of the         depending on individual circumstances. The estimated burden 
deemed interest is treated as a return of capital to the extent of for individual and business taxpayers filing this form is approved 
the accrued interest at the time of purchase and reduces the       under OMB control number 1545-0074 and 1545-0123 and is 
holder’s basis in the bond.                                        included in the estimates shown in the instructions for their 
                                                                   individual and business income tax return. The estimated burden 
Paperwork Reduction Act Notice. We ask for the information         for all other taxpayers who file this form is shown below.
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 Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . 9 hr., 34 min.
ensure that you are complying with these laws and to allow us to   Learning about the law or the form. . . . . . . . . . . . .    1 hr., 59 min.
figure and collect the right amount of tax.                        Preparing and sending the form to the IRS. . . . . . . .       2 hr., 13 min.
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         If you have comments concerning the accuracy of these time 
relating to a form or its instructions must be retained as long as estimates or suggestions for making this form simpler, we would 
their contents may become material in the administration of any    be happy to hear from you. See the instructions for the tax return 
Internal Revenue law. Generally, tax returns and return            with which this form is filed.
information are confidential, as required by section 6103.

Instructions for Form 8912 (Rev. 12-2024)                                                                                         5

PDF file checksum: 1831401846

(Plugin #1/10.13/13.0)