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Department of the Treasury
Internal Revenue Service
Instructions for Form 8912

(Rev. December 2023)
Credit to Holders of Tax Credit Bonds

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Purpose of Form ! 115-97, 131 Stat. 2054 (2017), repealed sections 54,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

Dec 1, 2023 Cat. No. 57584P

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electric companies for one or more qualified renewable Line 2
energy facilities.
A qualified issuer is a public power provider, a cooperative Enter the amount from Part IV, line 20. This amount is the total
electric company, a governmental body, a clean renewable bond credits from bonds held by you or your nominee(s) and not
energy bond lender, or a not-for-profit electric utility that has reported to you on Form(s) 1097-BTC. This amount may also
received a loan or loan guarantee under the Rural Electrification include bond credits reported to you from a pass-through entity
Act. (partnership, S corporation, estate, trust, regulated investment
A clean renewable energy bond lender is a lender that is a company, and real estate investment trust) that weren't reported
cooperative that is owned by, or has outstanding loans to, 100 or to you on Form(s) 1097-BTC.
more cooperative electric companies and is in existence on
February 1, 2002, and includes any affiliated entity that is Note. You may receive Form(s) 1097-BTC from a pass-through
controlled by that lender. entity reporting your share of bond tax credits. The entity may
also report your share of bond tax credits on a form/schedule/
A cooperative electric company is a mutual or cooperative statement other than the Form(s) 1097-BTC. In such a case,
electric company described in section 501(c)(12) or section don't double-count amounts reported to you. Include any amount
1381(a)(2)(C). reported to you on Form(s) 1097-BTC from a pass-through entity
A governmental body is any state or Indian tribal on line 13, and not on line 18. For example, if you own an interest
government, or any political subdivision thereof. in a partnership, and the partnership reports your share of bond
A public power provider is a state utility with a service tax credits earned by the partnership on a Schedule K-1 (Form
obligation, as defined in section 217 of the Federal Power Act (as 1065) as well as on a Form 1097-BTC, don't double-count these
in effect on October 3, 2008). amounts. Include the amount reported to you on Form 1097-BTC
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
(8) and (10) and to any placed-in-service date) owned by a Line 3
public power provider, a governmental body, or a cooperative
electric company. Enter the amount of the credit carryforward (from prior years)
that is attributable to a qualified tax credit bond or a BAB. Credits
QECB. A QECB is any bond issued after October 3, 2008, and
attributable to a CREB, or a QZAB issued before October 4,
before January 1, 2018, by a state or local government as a
2008, can't be carried forward.
qualified energy conservation bond and 100% of the available
project proceeds are used for one or more qualified conservation
purposes. See section 54D(f) (as in effect on December 21, Line 5
2017) for the definition of qualified conservation purposes.
QZAB. A QZAB is any bond issued after December 31,1997, Estates and trusts must allocate any CREB credit on line 4
and before January 1, 2018, by a state or local government as a between the estate or trust and the beneficiaries in the same
qualified zone academy bond and 100% of the available project proportion as income was allocated and enter the beneficiaries'
proceeds are used to improve certain eligible public schools (for share on line 5.
QZABs issued before October 4, 2008, 95% or more of the
proceeds are used to improve certain eligible public schools). Part II—Allowable Credit
The credit allowed for the current year may be limited based on
QSCB. A QSCB is any bond issued after February 17, 2009, your tax liability. Use Part II to figure the allowable credit.
and before January 1, 2018, by a state or local government as a
qualified school construction bond and 100% of the available
project proceeds are used for the construction, rehabilitation, or Line 10b
repair of a public school facility or for the acquisition of land on
which the bond-financed facility is to be constructed. Enter the total allowable credit, if any, from your tax return as
follows.
BAB. A BAB is any bond (other than a private activity bond) Individuals. Enter the amount from Form 1040, 1040-SR, or
issued after February 17, 2009, and before January 1, 2011, by 1040-NR, line 19; and Schedule 3 (Form 1040), lines 2 through
an issuer who makes an irrevocable election to have the rules of 5b, 6c through 6j, and 6l through 6z.
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
Line 12
Enter the total from Part III, line 14. This amount is the total bond
credits reported to you on Form(s) 1097-BTC. If you don't 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”).

-2- Instructions for Form 8912 (Rev. 12-2023)

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Holders of a CREB, or a QZAB issued before October 4, Line 13, Column (b1)
2008. If you can't use all of the credit from Part I because of the
tax liability limit (for example, line 12 is smaller than line 4), you Enter the Form 1097-BTC issuer's federal identification number
can deduct the unused credit for the current tax year. However, shown on Form 1097-BTC.
you can choose to deduct the unused credit in the next tax year
instead of the current tax year. Line 13, Column (b2)
Because a current year deduction may further reduce the tax
liability limit, you may need to refigure the tax liability limit and the Enter the unique identifier shown in box 2b of Form 1097-BTC.
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.
Holders of a qualified tax credit bond or a BAB. If you can't Enter the amount shown in box 1 of any Form 1097-BTC you
use all of the credit from Part I (for example, line 12 is smaller receive.
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 Line 15b
the total of all Parts III, lines 14, on Part I, line 1.
Do not enter any bond credits for bonds issued after Enter the bond issuer's employer identification number. If the
credit was received from a pass-through entity, enter the
CAUTION
! December 31, 2017. employer identification number of the pass-through entity
distributing the credit.

Instructions for Form 8912 (Rev. 12-2023) -3-

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Line 17 Example 2. Your tax year begins December 1, 2017, and
ends November 30, 2018. You held a QECB (issued on July 23,
If the bond was redeemed, sold, or otherwise disposed of, enter 2010) that matures on July 23, 2018. Since the bond wasn't held
the date. for the entire 3-month period ending on September 15, 2018, 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
Line 18, Column (a) last credit allowance date and ending on the maturity date by (b)
the number of days included in the 3-month period beginning on
Enter the CUSIP number of the bond. If there is no CUSIP the day after the credit allowance date and ending on the next
number, enter the principal payment dates of the bond. For credit allowance date.
CREBs, enter the CUSIP number and principal payment dates.
For BABs, enter the CUSIP number and interest payment dates.
38 days (number of days from June
Line 18, Column (b) 16 through July 23)
= 0.413 x 25% (0.25) = 10%
92 days (number of days from June
Enter the face amount of the CREB, qualified tax credit bond, or 16 through September 15)
QZAB (issued before October 4, 2008) minus any payment of
principal received. For a BAB, enter the amount of interest
payable. You would enter 60% figured as follows.

Line 18, Column (c)
Credit allowance date %
The credit rate for the CREB, qualified tax credit bond, and March 15, 2018 25
QZAB (issued before October 4, 2008) is the rate published on
the Treasury Direct website under “IRS Tax Credit Bond Rates” June 15, 2018 25
at TreasuryDirect.gov/government/interest-rates-and-prices/irs- September 15, 2018 10
tax-credit-bond-rates/ for the first day on which there is a binding 60
contract in writing for the sale or exchange of the bond.
The credit rate for QZABs issued before July 1, 1999, is Generally, for bonds issued during the 3-month period ending
110% of the long-term applicable federal rate (AFR), on a credit allowance date, the sum of the prorated credit
compounded annually, for the month and year the bond is amounts for the first credit allowance date and the last credit
issued. The IRS announces the long-term AFR monthly in a allowance date should equal 25% of the annual credit allowance.
series of revenue rulings published in the Internal Revenue Do not enter any bond credits for bonds issued after
Bulletin. ! December 31, 2017.
CAUTION
The credit rate for a BAB is 35%.
Line 18, Column (f)
Line 18, Column (e)
This amount is the income tax credit to the holder of a tax credit
Generally, enter 25% for each credit allowance date you hold a bond. If the bond credit is from a pass-through entity, enter the
CREB, or qualified tax credit bond during your tax year. Enter amount of the credit in column (f). You must complete lines 15a
100% for a BAB, or a QZAB issued before October 4, 2008. and 15b.
Example 1. Your tax year begins December 1, 2017, and
ends November 30, 2018. You purchased a QECB (issued on Line 20
June 30, 2017) from the prior holder on March 16, 2018, and Bond credit. Enter the total amounts from all Parts IV, lines 20,
held it through the end of the tax year ending November 30, on Part I, line 2.
2018. You would enter 50% figured by including the day the bond
was purchased as the first day on which the credit accrues, as Interest income. The current year credit on line 4 (or for
follows. estates and trusts, line 6) is deemed to be a payment of qualified
stated interest (as defined in Regulations section 1.1273-1(c))
and as such is treated as taxable interest income paid on the
Credit allowance date % credit allowance date, or for BABs, the interest payment date. If
the holder is on the accrual method, the holder must accrue the
June 15, 2018 25 credit amount as taxable interest income on the credit allowance
September 15, 2018 25 date or interest payment date.
50 If a holder of a tax credit bond sells the bond between credit
allowance dates (or for BABs, interest payment dates), part of
Do not enter any bond credits for bonds issued after the sales price is treated as accrued interest to the date of the
sale and must be reported as interest income. If a holder
! December 31, 2017. purchases a bond between credit allowance dates or interest
CAUTION
payment dates, the interest accrued as of the date of the
However, the 25% will be prorated if a CREB or qualified tax purchase (as reflected in the purchase price) isn't included as
credit bond is issued, redeemed, or matures during the 3-month interest when the purchaser receives the value of the credit (and
period ending on a credit allowance date with respect to which the deemed payment of interest) on the next credit allowance
you are claiming the credit. The percentage of credit allowed for date or interest payment date. Instead, the payment of the
that credit allowance date is prorated for the number of days the deemed interest is treated as a return of capital to the extent of
bond was outstanding during the 3-month period.

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the accrued interest at the time of purchase and reduces the for individual and business taxpayers filing this form is approved
holder’s basis in the bond. under OMB control number 1545-0074 and 1545-0123 and is
included in the estimates shown in the instructions for their
Paperwork Reduction Act Notice. We ask for the information individual and business income tax return. The estimated burden
on this form to carry out the Internal Revenue laws of the United for all other taxpayers who file this form is shown below.
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 Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . 9 hr., 34 min.
figure and collect the right amount of tax. Learning about the law or the form. . . . . . . . . . . . . 1 hr., 59 min.
You are not required to provide the information requested on Preparing and sending the form to the IRS. . . . . . . . 2 hr., 13 min.
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 If you have comments concerning the accuracy of these time
their contents may become material in the administration of any estimates or suggestions for making this form simpler, we would
Internal Revenue law. Generally, tax returns and return be happy to hear from you. See the instructions for the tax return
information are confidential, as required by section 6103. with which this form is filed.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden

Instructions for Form 8912 (Rev. 12-2023) -5-

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