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Department of the Treasury
Internal Revenue Service
Instructions for Form

1097-BTC

(Rev. December 2019)
Bond Tax Credit

Section references are to the Internal Revenue Code unless For tax credit bonds issued with two or more maturities,
otherwise noted. each maturity must be reported separately on the Form
1097-BTC issued by the bond issuer or its agent.
Future Developments
Recipients of Form 1097-BTC from the bond issuer or
For the latest information about developments related to agent, such as brokers, nominees, mutual funds, or
Form 1097-BTC and its instructions, such as legislation partnerships, who are further distributing the credit must file
enacted after they were published, go to IRS.gov/ only one Form 1097-BTC per recipient or account,
Form1097BTC. aggregating credit from all applicable bonds.
Reminders Note. Issuers that elected to issue build America bonds
In addition to these specific instructions, you also should use (Direct Pay) under section 54AA(g) or specified tax credit
the current General Instructions for Certain Information bonds under section 6431(f) to receive a refundable credit
Returns. Those general instructions include information under section 6431(a) in lieu of tax credits under section 54A
about the following topics. should not file Form 1097-BTC.
• Who must file.
• When and where to file. Definitions
• Electronic reporting.
• Corrected and voided returns. Tax credit bond. Generally, a tax credit bond is an
• Statements to recipients. obligation issued under sections 54, 54A, 54AA, 1397E, or
• Taxpayer identification numbers (TINs). 1400N(l) that entitles the taxpayer holding such bond on one
• Backup withholding. or more credit allowance dates occurring during any tax year
• Penalties. to a credit against the federal income tax imposed for that tax
• Other general topics. year.
Public Law Number 115-97, 131 Stat. 2054 (2017),
You can get the current general instructions from General
repealed sections 54, 54A-F, and 54AA effective for
Instructions for Certain Information Returns at IRS.gov/ CAUTION!
bonds issued after December 31, 2017.
1099GeneralInstructions or go to IRS.gov/Form1097BTC.
Continuous-use form and instructions. Form 1097-BTC Qualified tax credit bond. Qualified tax credit bonds under
and these instructions have been converted from an annual section 54A include new clean renewable energy bonds
revision to continuous use. Both the form and instructions will under section 54C, qualified energy conservation bonds
be updated as needed. For the most recent version, go to under section 54D, qualified zone academy bonds under
IRS.gov/Form1097BTC. section 54E, and qualified school construction bonds under
section 54F.
Online fillable forms. You may fill out the form, found
online at IRS.gov/Form1097BTC, and send Copy B to the New clean renewable energy bond. An obligation issued
recipient. For filing with the IRS, follow the applicable before January 1, 2018, that is part of an issue, 100% of the
procedures if you are required to file electronically, or, for available project proceeds of which are to be used for capital
this form only, if you are qualified to file on paper, send in expenditures incurred by governmental bodies, public power
the black-and-white copy A with Form 1096 that you print providers, or cooperative electric companies for one or more
from the IRS website. qualified renewable energy facilities, as defined in section
54C. The annual credit allowed is 70% of the annual credit
amount determined by applying section 54A(b).
Specific Instructions
Issuers of certain tax credit bonds (or their agents) and Qualified energy conservation bond. An obligation issued
recipients of Form 1097-BTC from the bond issuer or agent, before January 1, 2018, that is part of an issue, 100% of the
such as mutual funds or partnerships, who are further available project proceeds of which are to be used for one or
distributing the credit must file Form 1097-BTC for each tax more qualified energy conservation purposes, as defined in
credit distributed from the following tax credit bonds. section 54D. The annual credit allowed is 70% of the annual
• New clean renewable energy bonds. credit amount determined by applying section 54A(b).
• Qualified energy conservation bonds. Qualified zone academy bond. An obligation issued
• Qualified zone academy bonds. before January 1, 2018, that is part of an issue, 100% of the
• Qualified school construction bonds. available project proceeds of which are to be used for a
• Clean renewable energy bonds. qualified purpose with respect to a qualified zone academy
• Build America bonds (Tax Credit). established by an eligible local education agency, as
Filings of Form 1097-BTC with respect to a bond, by the provided in section 54E; or an obligation that is part of an
issuer or the issuer's agent, must be made on a separate issue, 95% or more of the proceeds of which are to be so
Form 1097-BTC for each bond.

Oct 31, 2019 Cat. No. 54657F

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used and issued before October 4, 2008, as provided in penalties for failure to file electronically, see part F in the
section 1397E. current General Instructions for Certain Information Returns.

Qualified school construction bond. An obligation issued Statement to Recipient
before January 1, 2018, that is part of an issue, 100% of the
available project proceeds of which are to be used for the If required to file Form 1097-BTC, you must furnish a
construction, rehabilitation, or repair of a public school facility statement to the recipient quarterly for each credit amount
or for the acquisition of land on which such a facility is to be indicated on or before the 15th day of the 2nd calendar
constructed with the proceeds, as provided in section 54F. month after the close of the calendar quarter in which the
credit was allowed.
Clean renewable energy bond. An obligation issued after
December 31, 2005, and before January 1, 2010, that is part Quarterly Furnishing Dates
of an issue, 95% or more of the proceeds of which are used
for capital expenditures incurred by qualified borrowers for Reporting period: To recipient (on or before):
1 Quarter: January–March
one or more qualified projects, as defined in section 54. st May 15*
Build America bond (Tax Credit). An obligation issued nd August 15*
after February 17, 2009, and before January 1, 2011, issued 2 Quarter: April–June
by a state or local government (excluding private activity 3 Quarter: July–Septemberrd November 15*
bonds under section 141) as defined in section 54AA(d). Annual/4 Quarter: October–th February 15*
December
Who Must Receive Form 1097-BTC
*Dates may change due to weekends or holidays.
Each person who is allowed a tax credit as a holder, directly
or indirectly, of a tax credit bond or a stripped credit coupon
on one or more credit allowance dates during the calendar For the first 3 quarters, report to the recipient only the
year in an amount of at least $10 must be issued Form amounts for the months of the applicable quarter. Box 1
1097-BTC. should not be completed and box 6 is optional.
Credit Allowance Dates You are not required to furnish a separate report solely for
the 4th quarter because the 4th quarter amounts are reported
The tax credit from tax credit bonds or stripped credit with the annual filing. For the annual filing, report the credits
coupons is allowed on each credit allowance date for which for each month in boxes 5a–5l; report the total of those
the bond was outstanding or to which the stripped credit amounts in box 1; and complete the rest of the form as
coupon corresponds. For qualified tax credit bonds and applicable. Furnish the annual filing to the recipient by
clean renewable energy bonds, the credit allowance dates February 15, of the subsequent year.
are March 15, June 15, September 15, December 15, and
the last day on which the bond is outstanding. For bonds If any amounts previously furnished for the first 3 quarters
issued during the 3-month period ending on a credit need to be corrected, report the correct amounts for the
allowance date, the amount of the credit is determined annual reporting and explain the correction to the recipient;
ratably based on the portion of the 3-month period during no explanation is required for the IRS filing.
which the bond is outstanding. The same ratable For the report furnished to the recipient (quarterly or
determination of credit applies when a bond is redeemed or annual), you may use Copy B or your own substitute
matures. For build America bonds (Tax Credit), the credit statement reporting all the same applicable information (the
allowance dates are the interest payment dates. For qualified reporting for the first 3 quarters may be furnished
zone academy bonds issued before October 4, 2008, the electronically). See Pub. 1179 for specific rules about
credit allowance date is the last day of the 1-year period providing substitute statements to recipients.
beginning on the issue date of the bond and each
anniversary of such day thereafter. The IRS encourages Form 1097-BTC issuers to provide
the credit information to the recipient monthly if applicable,
The tax credit allowed to holders of any tax credit bonds or and as soon after the end of the month in which a credit
stripped credit coupons is treated as interest which is arises as possible.
included in gross income and must be reported as interest For more information about the requirement to furnish a
income on a Form 1099-INT or Form 1099-OID, as statement to the recipient, see part M in the current General
applicable. For more information on reporting the tax credit Instructions for Certain Information Returns.
treated as interest income paid from tax credit bonds, see the
Instructions for Forms 1099-INT and 1099-OID. Bond issuer. If issuing the Form 1097-BTC as an issuer of
the bond or its agent, box 2a of the form will always reflect
When To File code “C” and box 2b must reflect the CUSIP number for the
bond or stripped coupon, unless a CUSIP number was not
For filing due dates, please refer to current General issued for the bond. See the instructions for boxes 2a and
Instructions for Certain Information Returns. See Statement 2b.
to Recipient, later, for furnishing statements to recipients.
Form 1097-BTC Issuer's Name, Address, and
Penalties for Failure To File
Telephone Number
There are penalties for failure to file correct information
returns by the due date and for failure to furnish correct Enter the name, street address, city or town, state or
payee statements. See part O in the current General province, country, ZIP or foreign postal code, and telephone
Instructions for Certain Information Returns for details. number of the entity issuing the Form 1097-BTC.
Failure to file Forms 1097-BTC also includes failure to file Enter the entity's true name (as set forth in the legal
electronically, when required. For more information on documents creating it). Enter the address of the entity's

-2- Instructions for Form 1097-BTC (Rev. 12-2019)

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principal office or place of business. Include the suite, room, Check, as applicable, whether you are the issuer of the
or other unit number after the street address. If the post office bond (or its agent) filing the Form 1097-BTC for the bond, or
does not deliver mail to the street address and the entity has are an entity or a person that received or should have
a P.O. box, show the box number instead. received a Form 1097-BTC for credit(s) that was or should
have been reported and that is distributing part or all of that
Note. Do not use the address of the registered agent for the credit to others.
state in which the entity is incorporated. For example, if a
business is incorporated in Delaware or Nevada and the Box 1. Total
corporation's principal office is located in Little Rock, AR, the Enter the total amount of credits distributed to the recipient
corporation should enter the Little Rock address. with respect to the amounts reported in boxes 5a–5l for the
If the entity receives its mail in care of a third party (such calendar year.
as an accountant or an attorney), enter for the street address
“C/O” followed by the third party's name and street address This box should be only filled out when filing Copy A and
or P.O. box. when the annual statement (Copy B of the form) is sent to the
recipient. See Statement to Recipient, earlier.
Form 1097-BTC Issuer's TIN
Enter the Form 1097-BTC issuer's TIN, such as an employer Box 2a. Code
identification number (EIN). Do not truncate the Form Enter the unique identification number code. Enter “C” for
1097-BTC issuer's TIN. An issuer that does not have an EIN CUSIP number, “A” for account number, and “O” if the unique
should apply for one. See Form SS-4, Application for identification number is not an account number or a CUSIP
Employer Identification Number, and its separate number, such as a self-provided identification number. If you
instructions, available at IRS.gov. Applications can be checked the first box under Form 1097-BTC issuer, and a
submitted online, by phone, fax, or mail. CUSIP number is assigned to the bond(s), enter “C.” If no
CUSIP number is assigned to the bond(s), and you checked
Truncating Recipient's TIN on Recipient the first box under Form 1097-BTC issuer, use the account
Statements number as the unique identifier and enter “A” or “O” if you are
using any other unique identifying number. See Box 2b.
Pursuant to Regulations section 301.6109-4, all filers of this Unique Identifier next.
form may truncate a recipient's TIN (social security number
(SSN), employer identification number (EIN), individual Box 2b. Unique Identifier
taxpayer identification number (ITIN), or adoption taxpayer
identification number (ATIN)) on recipient statements. The unique identification number is assigned by the Form
Truncation is not allowed on any documents the filer files with 1097-BTC issuer and is limited to 39 alphanumeric
the IRS. A filer's TIN may not be truncated on any form. See characters. It can be the CUSIP number, account number, or
part J in the current General Instructions for Certain any other unique identification number by which you track the
Information Returns. bond transactions.
For a bond issuer (or its agent) filing Form 1097-BTC for a
Recipient's TIN bond, the unique identification number must start with the
Enter the TIN of the recipient of the distributed (or stripped) CUSIP number(s), if available, and may be expanded by the
credit from the tax credit bond. Do not truncate the recipient's account number or any other self-provided number(s). If a
TIN on the form filed with the IRS. Truncation of the CUSIP number was not issued for the bond, the bond issuer
recipient's TIN is allowed on the statement to the recipient. may use or devise its own unique identifier, preferably the
See the current General Instructions for Certain Information account number or other reference number by which you
Returns. track and account for the bond transaction. A recipient of a
Form 1097-BTC that issues its own Form 1097-BTC to
Recipient's Name further distribute the credit may use or devise its own unique
Enter the name of the recipient of the distributed (or stripped) identifier using whatever means it deems best.
credit from the tax credit bond. If not an individual, enter the
entity's true name (as set forth in the legal documents Box 3. Bond Type
creating it). Enter code “101” for clean renewable energy bonds issued
under section 54. Enter code “199” for all other bonds.
Recipient's Street Address (Including Apt. No.)
Multiple bond types can be entered on one Form
Enter the street address, city or town, state or province,
1097-BTC, other than clean renewable energy
country, and ZIP or foreign postal code of the recipient's TIP
bonds. Credits from clean renewable energy bonds
principal residence, office, or place of business. Include the
must be reported on a separate Form 1097-BTC.
apartment, suite, room, or other unit number after the street
address. If the post office does not deliver mail to the street
address and the entity has a P.O. box, show the box number Box 4
instead. Reserved.

Note. Do not use the address of the registered agent for the Boxes 5a–5l
state in which the recipient is incorporated. Enter the amount of credit allowed for each month during the
If the recipient receives its mail in care of a third party calendar year, calculated by using STEPS 1 and 2, following.
(such as an accountant or an attorney), enter for the street
address “C/O” followed by the third party's name and street STEP 1. For each recipient, multiply the outstanding face
address or P.O. box. amount of the qualified tax credit bond, clean renewable
energy bond, or qualified zone academy bond issued before

Instructions for Form 1097-BTC (Rev. 12-2019) -3-

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October 4, 2008, by the applicable credit rate. The amount determined in STEP 1 in box 5l and 100% (1.0) of the
outstanding face amount of the bond is the face amount of credit amount determined in STEP 1 in box 1.
the bond minus any principal that has been paid. The credit However, the 25% will be prorated for any credit
rate for the qualified tax credit bond, clean renewable energy allowance date if a clean renewable energy bond or qualified
bond, or qualified zone academy bond issued before tax credit bond is issued, redeemed, or matures during the
October 4, 2008, is the rate published on the Treasury Direct 3-month period ending on a credit allowance date with
website under “IRS Tax Credit Bond Rates” at respect to which you are reporting the credit. The percentage
TreasuryDirect.gov/govt/rates/rates_irstcb.htm for the first of credit allowed for that credit allowance date is prorated for
day on which there is a binding contract in writing for the sale the number of days the bond was outstanding during the
or exchange of the bond. 3-month period.
The credit rate for qualified zone academy bonds issued See Caution regarding the repeal of sections 54, 54A, and
before July 1, 1999, is 110% (1.10) of the long-term 54AA, earlier.
applicable federal rate (AFR), compounded annually, for the
month and year the bond is issued. The IRS announces the Example 2. A qualified zone academy bond that you
long-term AFR monthly in a series of revenue rulings issued matures on March 23, 2020. Since the bond was not
published in the Internal Revenue Bulletin. outstanding for the entire 3-month period on June 15, 2020,
the prorated portion of the 25% is figured by dividing (a) the
For build America bonds (Tax Credit), multiply by 35% number of days the bond was outstanding beginning on the
(0.35) the amount of interest payable with respect to the day after the prior (March 15) credit allowance date and
interest payment date for which you are filing Form ending on March 23, 2020, by (b) the number of days
1097-BTC or sending a statement to the credit recipient. included in the 3-month period beginning on the day after the
Enter the credit amount so determined in boxes 5a–5l for the prior (March 15) credit allowance date and ending on the
month in which the interest payment date occurred. Thus, if next (June 15) credit allowance date. See Proration
the interest payment dates for a build America bond are June Calculation below.
30 and December 31, enter the credit amounts in boxes 5f
and 5l.
Proration Calculation
For qualified zone academy bonds issued before October
4, 2008, enter the amount so determined in the box 5 that 8 days (number of days from March
corresponds to the credit allowance date. When filing the 16 through March 23)
annual Form 1097-BTC with the IRS, enter the same amount = 0.087 x 0.25 = 2% (0.02)
92 days (number of days from
in box 1. March 16 through June 15)
STEP 2. For qualified tax credit bonds or clean renewable
energy bonds only, multiply the credit amount so determined
in STEP 1 by 25% (0.25) for each credit allowance date you Thus, for the credit allowance date with respect to the
hold a qualified tax credit bond or clean renewable energy 3-month period in which the bond matures, you would
bond during your tax year. Enter the credit amount multiply the credit amount determined in STEP 1 by the
determined in STEP 2 in the box for the month in which the prorated percentage. In Example 2, for the 2nd quarter
credit allowance date occurred. reporting period for 2020, due to the recipient by August 17,
2021, you would enter the amount determined by multiplying
Example 1. You issued a qualified energy conservation 2% (0.02) with the credit amount determined in STEP 1 in
bond on March 15, 2018. For the Form 1097-BTC statement box 5f. You would carry the same percentage to the Total
for the March 15, 2020, credit allowance date, due to the annual credit reported in box 1 for the annual/4th quarter
recipient by May 15, 2020, you would enter 25% (0.25) of the reporting period filed with the IRS and sent to the recipient.
amount computed in STEP 1 in 5c. For the Form 1097-BTC Thus, in Example 2, you would enter in box 1 “27%” (0.27) of
statement for the June 15, 2020, credit allowance date, due the amount determined in STEP 1.
to the recipient by August 17, 2020, you would enter 25%
(0.25) of the amount computed in STEP 1 in box 5f. For the Note. For new clean renewable energy bonds issued under
Form 1097-BTC statement for the September 15, 2020, section 54C and qualified energy conservation bonds issued
credit allowance date, due to the recipient by November 16, under section 54D, report the credit amount after the 70%
2020, you would enter 25% (0.25) of the amount computed in limit has been applied.
STEP 1 in 5i. For the annual Form 1097-BTC and December
15, 2020, credit allowance date, due to the recipient by Box 6. Comments
February 16, 2021, and to the IRS by March 1, 2021 (March Enter any additional information.
31, 2021, if filed electronically), enter 25% (0.25) of the credit

-4- Instructions for Form 1097-BTC (Rev. 12-2019)

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