Tax-exempt bonds community updates

Recent Revenue Procedures issued on Arbitrage Rebate Claims and Qualified Residential Rental Bonds, resources and videos are available on Form 8038-CP

Revenue Procedure 2024-37 PDF provides guidance to issuers of tax-exempt and other tax-advantaged bonds regarding procedures for filing claims for recovery of overpayments of amounts paid to the United States with respect to the rebate requirement, the penalty in lieu of rebate provisions, and the yield reduction payment provisions under Section 148 of the Internal Revenue Code (Code).

This revenue procedure modifies and supersedes Rev. Proc. 2008-37, as modified by Rev. Proc. 2017-50, and supersedes Rev. Proc. 2017-50.

Revenue Procedure 2024-38 PDF provides guidance on the effect on the income requirements under Sections 142(d) and 42 of the Code of the alternative income eligibility requirements for the Department of Housing and Urban Development –Veterans Affairs Supportive Housing program.

Form 8038-CP resources and videos:

• Recent updates concerning 8038-CP processing, including e-file
• Form 8038-CP FAQs
• Form 8038-CP Electronic Filing Overview (video)
• Revisions to Form 8038-CP Overview (video)

Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds: updated electronic filing resources available

Electronic filing (e-file) Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, is mandatory under Treas. Reg. section 301.6011-11 if the filer is required to file at least 10 returns of any type during the calendar year.

Form 8038-CP is used to claim credit payments under Internal Revenue Code (IRC) section 6431 relating to interest on:

• Build America Bonds
• Recovery Zone Economic Development Bonds
• New Clean Renewable Energy Bonds
• Qualified Energy Conservation bonds
• Qualified Zone Academy Bonds
• Qualified School Construction Bonds

Resources:

Form 8038 Corner:

• Links to recently revised webpages:
  • Recent updates concerning 8038-CP processing, including e-file
  • Form 8038-CP FAQs

Informational video: Electronic filing of Form 8038-CP

How-to video on pre-filing registration tool for elective pay elections is available

A video explaining how to use the Inflation Reduction Act (IRA) and CHIPS Act Pre-filing Registration Tool is available on IRS.gov. The video shows organizations and entities that want to make an elective payment election on their tax return how to use the Pre-filing Registration Tool. Entities must register using the Pre-filing Registration Tool to receive a registration number before making an elective payment election on their annual tax return.

The IRA allows applicable entities that do not typically pay taxes to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits that would otherwise be nonrefundable as a payment against federal income tax liabilities equal to the amount of the credit. The amount of the credit treated as a payment will be applied to offset any tax liability of the entity and any excess will be refundable.

More information about elective pay is available on IRS.gov.

IRS TE/GE hiring event July 19, 2024, in St. Louis, MO; agency seeking revenue agents

The Tax Exempt & Government Entities division of the IRS is holding a hiring event July 19, 2024, from 10 a.m. to 3 p.m. in St. Louis. During this event, job seekers will be able to meet IRS TE/GE recruiters and hiring managers who will review resumes and conduct on-site interviews.

Applicants should schedule a preferred in-person interview time on Eventbrite.

Career opportunities at this event are for Revenue agents. Revenue agents are responsible for planning and conducting examinations of individuals and businesses to determine federal tax liability. These examinations are generally conducted at the taxpayer’s residence or place of business. Revenue agents work with taxpayers, their representatives, certified public accountants and tax attorneys.

This event will be held at America’s Center Convention Complex, 701 Convention Plaza, St. Louis, Missouri. Remember to bring your resume, two forms of identification, college transcripts and any documentation that supports your experience. You must be a U.S. citizen.

IRS TE/GE hiring event July 17, 2024, in Nashville, TN; agency seeking revenue agents

The Tax Exempt & Government Entities division of the IRS is holding a hiring event July 17, 2024, from 10 a.m. to 3 p.m. in Nashville. During this event, job seekers will be able to meet IRS recruiters and hiring managers who will review resumes and conduct on-site interviews.

Applicants should schedule a preferred in-person interview time on Eventbrite.

Career opportunities at this event are for revenue agents. Revenue agents are responsible for planning and conducting examinations of individuals and businesses to determine federal tax liability. These examinations are generally conducted at the taxpayer’s residence or place of business. Revenue agents also conduct examinations of exempt and governmental organizations and related business entities, make determinations on exempt status of organizations, review financial and operating data and provide technical assistance.

Revenue agents work with taxpayers, their representatives, certified public accountants and tax attorneys.

This event will be held at the Nashville Marriott at Vanderbilt University, 2555 West End Ave., Nashville, Tennessee. Remember to bring your resume, two forms of identification, college transcripts and any documentation that supports your experience. You must be a U.S. citizen.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

Businesses and organizations can add more users for IRS Energy Credits Online

The IRS Energy Credits Online tool lets multiple people register as users on behalf of their entity. For continuity of access to the clean energy online tools, the IRS encourages each entity to have more than one Clean Energy Officer.

Additional users are vital for continuity of access. If an entity has only one user and that person leaves, no one currently associated with the entity will have the authority to act on its behalf.

This tool was built to help taxpayers register their entity, submit time-of-sale reports, register a clean energy project for an elective payment, transfer a clean energy credit and claim a CHIPS credit. The tool helps key groups with clean energy credits and makes it easier to communicate and stay compliant with the rules of the credits.

Clean Energy Officer

The first person to register with IRS Energy Credits Online is automatically the entity’s Clean Energy Officer. A Clean Energy Officer can:

• Authorize additional users.
• Promote other users to Clean Energy Officer. Multiple users can have this role for the same entity.
• Assign, manage and revoke permissions, including those of other Clean Energy Officers.

Clean Energy Officers have access to all IRS Energy Credits Online functionality. They’re the only users who can manage authorized users and permissions.

Additional users

Once the first user creates an account for the entity, they can share the registration link with additional users who need access to IRS Energy Credits Online. The IRS recommends having at least two Clean Energy Officers as a best practice to manage access to IRS Energy Credits Online.

User roles

The Clean Energy Officer should pay close attention to these roles assigned to other users in their organization.

• Dealers or Sellers. Employees who need to submit time-of-sale reports or request advance payments.
• Manufacturers. Employees who submit periodic reports.
• Clean energy delegate. Employees of the entity who aren’t officers or other people authorized to have legal responsibility for the entity. A Clean Energy Delegate can access the pre-filing registration tool to request registration numbers the entity needs to make an elective payment election.
• Clean energy third party user. Users outside the entity’s organization. This role lets the user request registration numbers the entity needs to make an elective payment election or transfer election on the tax return.

More information is available in Publication 5902, Clean Energy Authorization Permission Management PDF.

Domestic Content Bonus Credit Amounts under IRA: Expansion of applicable projects for safe harbor, and related provisions

Notice 2024-41 PDF modifies the existing domestic content safe harbor in Notice 2023-38, provides a new elective safe harbor for determining the domestic content bonus credit amounts under Sections 45, 45Y, 48, and 48E of the Internal Revenue Code, and requests comments regarding the new elective safe harbor to inform the development of any future updates.

More information is available at IRS.gov/cleanenergy.

Reminder: Electronic Filing Technical Questions for Form 8038-CP webinar

You’re invited to join us for a one-hour presentation through Microsoft Teams on May 21, 2024, at 12 p.m. Eastern time, hosted by the Office of Tax Exempt Bonds.

The IRS accepts electronic filing (e-filing) of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds.

Form 8038-CP allows you to claim credit payments under Internal Revenue Code (IRC) section 6431 relating to interest on build America bonds, recovery zone economic development bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds.

During this webinar we’ll discuss:

• benefits of e-filing
• E-File Regulations
• technical guidance
• resources
• questions and answers concerning e-filing

Registration link: Electronic Filing Technical Questions for Form 8038-CP Webinar Registration

Once you have registered you will receive a confirmation email. If you don’t see the confirmation email, check your Junk Email folder. Please open the attachment in the confirmation email, when prompted choose yes to open the calendar invitation and then accept to add the invitation to your calendar.

Electronic filing technical questions for Form 8038-CP webinar

You’re invited to join us for a one-hour presentation through Microsoft Teams on May 21, 2024, at 12 p.m. Eastern time, hosted by the Office of Tax-Exempt Bonds.

The IRS accepts electronic filing (e-filing) of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds.

Form 8038-CP allows you to claim credit payments under Internal Revenue Code (IRC) section 6431 relating to interest on build America bonds, recovery zone economic development bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds.

During this webinar we’ll discuss:

• benefits of e-filing
• E-File Regulations
• technical guidance
• resources
• questions and answers concerning e-filing

Registration link: Electronic Filing Technical Questions for Form 8038-CP Webinar Registration

Once you have registered you will receive a confirmation email. If you don’t see the confirmation email, check your Junk Email folder. Please open the attachment in the confirmation email, when prompted choose yes to open the calendar invitation and then accept to add the invitation to your calendar.

Guidance regarding the 2024 allocation round of qualifying advanced energy project credit program under section 48C(e)

Notice 2024-36 PDF announces the 2024 allocation round of the section 48C qualifying advanced energy project credit to allocate approximately $6 billion of section 48C credits, with approximately $2.4 billion in section 48C credits to be allocated to projects located in section 48C(e) energy communities census tracts. Additionally, Notice 2024-36 updates and modifies Appendices A, B PDF and C PDF, as published in Notice 2023-18 and Notice 2023-44.

Appendix A provides definitions and examples of qualifying advanced energy projects. Appendix B provides the application process that the Department of Energy will use to evaluate concept papers and section 48C applications to decide whether to recommend a project for a section 48C allocation. Appendix C contains a list of census tracts that are section 48C(e) energy community census tracts.

Notice 2024-36 was published on April 29, 2024.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

Elective payment and determining tax year

Information relating to determining your tax year is available at Question 23 in the Elective pay and transferability frequently asked questions. Generally, to determine your tax year, check the instructions for the annual tax return you are filing.

Applicable entities that do not have a federal income tax filing or Form 990 filing obligation and have not previously established a taxable year by filing an annual information or income tax return (e.g., Form 990-T to report and pay tax on unrelated business taxable income) may choose to adopt a calendar year for purposes of elective pay, regardless of their fiscal year, provided they maintain adequate books and records. This applies to state and local governments, Indian tribal governments, and their agencies and instrumentalities, including school districts, that don’t file an income tax return and have not established a taxable year by filing an annual tax return.

For more information, see the Elective pay and transferability frequently asked questions.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

Treasury and IRS finalize rules on elective payments of certain clean energy credits

The Department of the Treasury and Internal Revenue Service issued final regulations for applicable entities that earn certain clean energy credits and choose to make an elective payment election.

The IRS also updated the elective payment frequently asked questions based on the final regulations.

The full news release about the finalized rules on elective payments is available on IRS.gov.​​​​​

When do I receive my payment if I use elective pay?

In general, payments occur after the tax return is processed (assuming requirements are met). Under the statute, the taxpayer is not entitled to the elective payment until the due date of the return, even if the taxpayer files the return before that date.

In general, entities that file by the due date of their return and appropriately elect elective pay can anticipate payment issuance within 45 days of the due date of their annual return. In some cases, this may take less or more time. Additional information can be found in the Elective pay and transferability frequently asked questions.

How to register multiple users for IRS Energy Credits Online

IRS Energy Credits Online, the online tool for users to register for elective pay elections and transfer elections, allows for multiple users to be registered on behalf of an organization. The first user to register on behalf of an entity will be assigned as a "clean energy officer" for the entity. This user will have access to all IRS Energy Credits Online functionality for the entity.

The clean energy officer must authorize access to new users who wish to register on behalf of the organization. The clean energy officer will also assign user roles and permissions. Entities may have more than one clean energy officer. For more information see Publication 5902, Clean Energy Authorization Permission Management PDF.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

IRS offers additional office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is excited to offer additional office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is now open. Registration is required and can be completed by clicking on the links below.

The IRS is offering office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act.

Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is open. Registration is required and can be completed by clicking on the links below.

Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds – Mandatory Electronic Filing for Most Filers in 2024, Electronic Filing Resources

Electronic filing (e-file) of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, is mandatory under Treasury Regulations (T.D.9972) published February 2023 if the filer is required to file 10 or more returns of any type in a calendar year. Form 8038-CP is used to claim credit payments under Internal Revenue Code (IRC) section 6431 relating to interest on:

• build America bonds
• recovery zone economic development bonds
• new clean renewable energy bonds
• qualified energy conservation bonds
• qualified zone academy bonds
• qualified school construction bonds

Resources for e-filing Form 8038-CP:

Form 8038 Corner webpage includes links to:

Recent updates concerning 8038-CP processing, including e-file

The updates include answers to frequently asked questions about how and when to e-file, reminders, report numbers and more.

Instructions for Form 8038-CP and Schedule A, revised December 2023 PDF

Informational Video: Electronic filing of Form 8038-CP

E-file unavailable for Form 990-T and Form 1120-POL until March 17, 2024. An extension can be filed for both forms or paper file with Form 1120-POL

The Internal Revenue Service announced in News Release 2024-15, taxpayers won’t be able to electronically file Form 990-T, Exempt Organization Business Income Tax Return, or Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations, until March 17, 2024. IRS system upgrades mean e-filing of Forms 990-T and Forms 1120-POL (including returns on extension) with due dates from Jan. 15, 2024, to March 15, 2024, is currently unavailable.

Taxpayers with due dates on April 15, 2024, and later will be able to e-file Forms 990-T and Forms 1120-POL on time.

Returns due from Jan. 15, 2024, to March 15, 2024:

• Form 990-T, Exempt Organization Business Income Tax Return

  Organizations subject to unrelated business income tax (UBIT) are required by law to file Form 990-T electronically. An organization with a Form 990-T due from Jan.15, to March 15, 2024, should request an automatic six-month extension of time to file by submitting Form 8868, Application for Extension of Time To File an Exempt Organization Return, by the due date of the return. The IRS estimates only about 2,000 of the 200,000 Form 990-T filers have a due date in this time period and are affected by this.

  Any balance due must be submitted with Form 8868 to avoid interest and penalties. Beginning March 17, 2024, organizations will be able to timely e-file Form 990-T by the extended due date.

  If an affected organization doesn’t timely submit an extension, or if the extended due date falls within the period from Jan. 15, 2024, to March 15, 2024, and the organization consequently doesn’t timely e-file its Form 990-T, it should include with its late e-filed Form 990-T a request that any penalties for late filing not be imposed due to reasonable cause. The reasonable cause request should reference that e filing was not available as of the due date of the return.

• Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations Organizations filing a Form 1120-POL that is due from Jan. 15, 2024, to March 15, 2024, (including returns on extension) may file on paper. An organization that wishes to e-file a return with an original due date during that period may request an automatic six-month extension of time to file Form 1120-POL by submitting Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, and paying the full balance due with that form to avoid interest and penalties. Only a handful of these organizations typically file electronically in the affected time period.

Filing only to make an elective payment election for Clean Energy Credits

The electronic filing delay won’t affect the ability of government entities and Indian tribal governments -- that aren’t subject to UBIT -- to timely file Form 990-T to make an elective payment election (EPE) PDF for Clean energy tax credits. EPE is available for tax years beginning in 2023, therefore the returns won’t be due until after March 17.

In addition, under the law, an entity can’t receive the elective payment amount before the original due date of the return. Filing before the original due date for the return will not shorten the time for payment. While government entities and Indian tribal governments that aren’t subject to UBIT aren’t subject to the electronic filing mandate, the IRS encourages all taxpayers to e-file. See the Elective Pay and Transferability FAQs on irs.gov for more information on EPE for Clean Energy Credits.

IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits

The IRS is excited to offer office hours (through Microsoft Teams) to help entities with the pre-filing registration process on the new IRA/CHIPS Pre-filing Registration Tool. Pre-filing registration is a required step for applicable entities and eligible taxpayers to take advantage of elective payment or transfer of credits available in the Inflation Reduction Act and CHIPS Act. Representatives from the IRS will be available to answer your pre-filing registration questions.

Registration for office hours is now open. Registration is required and can be completed by clicking on the links below.

IRS IRA/CHIPS Pre-Filing Registration tool now open

Qualifying tax-exempt organizations and entities such as state, local and tribal governments can now register using the new IRS IRA/CHIPS Pre-Filing Registration Tool. Registration allows entities to take advantage of the options for elective payment or transfer of certain tax credits.

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows qualifying tax-exempt organizations and governments to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

Qualifying entities that make an elective payment or credit transfer election must earn the credit, which means they must make a tax credit investment or undertake tax credit production activities to earn a qualifying credit.

Qualifying entities must complete the pre-file registration process and receive a registration number. The registration number must be included on the taxpayer’s annual return as part of making a valid elective pay election. To facilitate this, the IRS created the IRA/CHIPS Pre-Filing Registration Tool.

Complete and submit the pre-filing registration request no earlier than the beginning of the tax year in which the taxpayer will earn the credit it wishes to monetize with an elective payment election or transfer election.

Refer to Publication 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool User Guide PDF to assist in the pre-filing registration process. This guide has information on the clean energy credits and detailed instructions on the pre-filing registration process. A how-to video, Pre-filing Registration Tool Overview, is available on IRS Videos. Functionality allowing additional authorized users and expansion of the entity type drop down menu will be available soon.

The full news release about the IRA/CHIPS Pre-Filing Registration tool is available on IRS.gov.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy

Free webinar: Electronic Filing of Form 8038-CP

You’re invited to join us for a free one-hour webinar through Microsoft Teams on December 7, 2023 at 12 p.m. Eastern time, hosted by the Office of Tax Exempt Bonds.

The IRS accepts electronic filing (e-file) of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, as part of ongoing efforts to improve service for the tax-advantaged bond community.

Form 8038-CP is used to claim credit payments under Internal Revenue Code section 6431 relating to interest on build America bonds, recovery zone economic development bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds.

During the webinar we’ll discuss:

• benefits of electronic filing
• E-File regulations
• getting started with electronic filing
• practical tips on filing Form 8038-CP
• resources

Registration link: Electronic Filing of Form 8038-CP Webinar Registration

Once you have registered you will receive a confirmation email.

Note: If you don’t see the confirmation email, check your Junk Email folder. Please open the attachment in the confirmation email, when prompted choose yes to open the calendar invitation and then accept to add the invitation to your calendar.

Free webinar: Electronic Filing of Form 8038-CP

You’re invited to join us for a free one-hour webinar through Microsoft Teams on December 7, 2023 at 12 pm Eastern time, hosted by the Office of Tax Exempt Bonds.

The IRS accepts electronic filing (e-file) of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, as part of ongoing efforts to improve service for the tax-advantaged bond community.

Form 8038-CP is used to claim credit payments under Internal Revenue Code section 6431 relating to interest on build America bonds, recovery zone economic development bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds.

During the webinar we’ll discuss:

• benefits of electronic filing
• E-File regulations
• getting started with electronic filing
• practical tips on filing Form 8038-CP
• resources

Registration link: Electronic Filing of Form 8038-CP Webinar Registration

Once you have registered you will receive a confirmation email.

Note: If you don’t see the confirmation email, check your Junk Email folder. Please open the attachment in the confirmation email, when prompted choose yes to open the calendar invitation and then accept to add the invitation to your calendar.

Clean energy credits: what you need to know about elective pay

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows governmental entities to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

How do I make an elective pay election?

The elective payment election is made on your annual tax return in the manner prescribed by the IRS, along with any form required to claim the relevant tax credit (source credit forms), a completed Form 3800, General Business Credit (or its successor), and any additional information, including supporting calculations, required in instructions to the relevant forms. Making an elective payment election requires completing multiple steps, including completing the required pre-filing registration process.

The term annual tax return includes:

1. for any person normally required to file an annual tax return with the IRS, such annual return (including Form 990-T for organizations with unrelated business income tax or a proxy tax under section 6033(e));
2. for any person that is not normally required to file an annual tax return with the IRS (such as taxpayers located in the territories), the return they would be required to file if they were not located in the territories, or, if no such return is required (such as for State, local, or Indian tribal governmental entities), the Form 990-T Exempt Organization Business Income Tax Return; and
3. for short tax year filers, the short year tax return.

Electronic return filing is strongly encouraged.

Each entity making an elective payment election must have a unique EIN. More information about applying for an EIN is available at IRS.gov/ein.

How do I determine the taxable year?

Check the instructions for the annual tax return you are filing. For example, for tax-exempt entities filing Form 990-T, the return must be filed using the organization's established annual accounting period. If the organization has no established accounting period, file the return on the calendar-year basis.

How do I timely file my return?

An elective payment election may only be made on an original, timely filed return (including extensions). This means the deadline is the due date (including extensions of time) for the tax return for the taxable year for which the election is made. For most tax exempt and government entities including Indian tribal governments this is generally 4.5 months (for example, May 15 for a calendar year taxpayer) (or up to 10.5 months with extensions) after the end of the entity's tax year.

An original return includes a superseding return filed on or before the due date (including extensions). No election is permitted to be made on an amended return or by filing an administrative adjustment request under section 6227 of the Code. There is no relief available under §§ 301.9100-1 through 301.9100-3 of the Procedure and Administration Regulations (26 CFR part 301) for an elective payment election that is not timely filed.

Subject to future guidance, an automatic paperless six-month extension from the original due date is deemed to be allowed for entities for which no Federal income tax return is required under sections 6011 or 6033(a) of the Code.

Additional information about Clean Energy Credits can be found at IRS.gov/cleanenergy.

Clean energy credits: what you need to know about claiming and receiving credits

Tax-exempt and governmental entities can benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022 (IRA). The IRA allows governmental entities to benefit from certain clean energy tax credits through elective pay. For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. The amount of the credit will first offset any tax liability of the entity and any excess will be refundable.

Available clean energy credits

For information on which clean energy tax credits are available, Publication 5817-G PDF has a list of elective pay eligible tax credits.

Pre-filing registration information

A pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election on an annual tax return. Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. Watch this video to learn about using the IRS EIN tool to get an EIN.

The online pre-filing registration process is expected to launch in late 2023. After the launch, you may complete pre-filing registration as soon as you have all the information required. More detail will be available as the launch approaches.

To complete pre-filing registration, you must provide certain information about yourself, the applicable credits you intend to earn, each eligible project or property that will contribute to the applicable credit, and certain additional information. The IRS will review the information provided and will issue a separate registration number for each applicable credit property for which the applicable entity or electing taxpayer provided sufficient verifiable information. Registration is not complete until a registration number is received. Each entity making an elective payment election must have a unique Employer Information Number (EIN).

After you complete the pre-filing registration process, the IRS will review the information provided and will issue a separate registration number for each applicable credit property for which the applicable entity or electing taxpayer provided sufficient verifiable information.

How to make an elective payment election for a clean energy tax credit:

1. Identify and pursue the qualifying project or activity: You will need to know which credit you intend to earn.
2. Determine your tax year, if not already known: Your tax year will determine the due date for your tax return.
3. Complete pre-filing registration with the IRS
4. Satisfy all eligibility requirements for the tax credit and any applicable bonus credits, if applicable, for a given tax year: For example, to claim an energy credit on a solar energy generating project, you would need to place the project in service before making an elective payment election. You will need the documentation necessary to properly substantiate any underlying tax credit, including if bonus amounts increased the credit.
5. File the required annual tax return by the due date (or extended due date) and make a valid elective payment election. This includes properly completed and attached source credit forms, Form 3800 (including registration numbers) and required return attachments.

Additional information about clean energy credits can be found at IRS.gov/cleanenergy.

Electronic Filing of Form 8038-CP is available; Mandatory Electronic Filing for Certain Filers in 2024

As part of ongoing efforts to improve service for the tax-advantaged bond community, the IRS accepts electronic filing of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds. Form 8038-CP is used to claim credit payments relating to interest on build America bonds, recovery zone economic development bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds.

Electronic filing ensures that returns are filed using the current versions of Form 8038-CP and the accompanying Schedule A. Electronic filing can also reduce filing errors. See the Instructions for Form 8038-CP and Schedule A (Form 8038-CP), under General Information, on how to get faster payments and avoid common mistakes.

Under Treasury Regulations published February 23, 2023 (26 CFR Section 301.6011-11), electronic filing of Forms 8038-CP filed after December 31, 2023 is mandatory for certain filers.

Electronic filing of Form 8038-CP must be done through an authorized e-file provider. The IRS maintains a list of authorized Form 8038-CP e-file providers on the following page: Tax Year 2023 Other Tax Exempt Entities Modernized e-File (MeF) Providers – Form 8038-CP.

For more information about electronically filing Form 8038-CP as well as updates and FAQs, visit:

Recent Updates to Form 8038-CP and Processing Changes,

Form 8038-CP FAQs

Form 8038 Corner

Elective Payments of Credits under the Inflation Reduction Act: Pre-file Registration and Timely Filing Required

Tax-exempt and governmental entities, including those that were generally unable to use tax credits previously, can now benefit from clean energy tax credits using new options enabled by the Inflation Reduction Act of 2022. Elective pay makes certain clean energy tax credits effectively refundable.

For tax years beginning after December 31, 2022, an applicable entity that qualifies for a clean energy tax credit can make an elective payment election. This election will treat certain credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit. This payment will first offset any tax liability of the entity and any excess will be refundable.

Applicable entities generally include tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority and rural electric cooperatives. Specific criteria for each type of applicable entity are included in the resources below.

The Internal Revenue Service issued proposed regulations describing rules and definitions concerning elective payments for the clean energy tax credits. The IRS has also issued temporary regulations regarding the pre-filing registration requirements for taxpayers planning to make an elective payment election.

The pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election on an annual tax return. Entities for which no such return is required (such as state and local governments and Indian tribal governments) will file Form 990-T to make the elective payment election. An elective payment election may only be made on a timely filed return (including extensions). Applicable entities will need their own Employer Identification Number (EIN) or Tax Identification Number (TIN) to complete the pre-filing registration process. Applicable entities cannot use or borrow the EIN of a related entity. To apply for an EIN online, visit IRS.gov/EIN.

The IRS is continuing to work to implement the elective payment process and will provide more information, including about the pre-filing registration process, in late 2023.

For more information on elective pay, the IRS has posted Frequently Asked Questions that discuss eligibility, applicable credits, steps for completing pre-file registration, steps for making an election, and other rules. Additionally, the IRS has a series of publications with key information specifically for various types of applicable entities that may make an elective payment election, including information on how to make the elective pay election and what to do to receive a payment:

• Elective Pay Overview, Publication 5817 PDF
• Rural Electric Cooperatives, Publication 5817-A PDF
• U.S. Territorial Governments, Publication 5817-B PDF
• Alaska Native Corporations, Publication 5817-C PDF
• Tax-Exempt Organizations, Publication 5817-D PDF
• State and Local Government, Publication 5817-E PDF
• Indian Tribal Governments, Publication 5817-F PDF
• Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits, Publication 5817-G PDF

Form 8038-CP – Availability of Electronic Filing; Mandatory Electronic Filing for Certain Filers in 2024

As part of ongoing efforts to improve service for the tax-advantaged bond community, the IRS accepts electronic filing of Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds. Form 8038-CP is used to claim credit payments under Internal Revenue Code section 6431 relating to interest on build America bonds, recovery zone economic development bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds.

Electronic filing ensures that returns are filed using the current versions of Form 8038-CP (January 2022) and the accompanying Schedule A (December 2022) and can reduce filing errors. Use of a prior version of the form and filing errors delay processing. See the Form Instructions for Form 8038-CP and Schedule A (Form 8038-CP) (December 2022), under General Information, for information on how to get faster payments and avoid common mistakes.

Under Treasury Regulations published February 23, 2023(26 CFR Section 301.6011-11), electronic filing of Forms 8038-CP filed after December 31, 2023 is mandatory for certain filers.

Electronic filing of Form 8038-CP must be done through an authorized e-file provider. The IRS maintains a list of authorized Form 8038-CP e-file providers at IRS.gov/Efile. Additional information regarding Form 8038-CP is available from the IRS on the Form 8038-CP Corner.

Tribal Economic Development Bond Volume Cap is still available

National bond volume authority (volume cap) for Tribal Economic Development Bonds is available for allocation to federally recognized Indian tribal governments. This volume cap is available for tax-exempt bonds issued to finance qualified projects.

In 2009, Congress provided for $2 billion of volume cap for Tribal Economic Development Bonds through the American Recovery and Reinvestment Act of 2009. Currently, approximately $63 million of unused volume cap is available.

Notice 2012-48 PDF solicits applications for volume cap and provides related guidance on application requirements and forms to request volume cap allocations. Notice 2015-83 PDF modifies Notice 2012-48 and provides special rules for bonds issued under a “draw-down” loan structure.

Tribes may request an allocation of volume cap by following the application procedures provided in Notice 2012-48. The IRS will allocate available volume cap on a first-come, first-served basis by order of submission date.

Find additional information on IRS.gov at Published Volume Cap Limit for Tribal Economic Development Bonds.

Telephonic public approval hearings permitted permanently

The IRS has released Revenue Procedure 2022-20 PDF, which provides guidance regarding the public approval requirement under section 147(f) of the Internal Revenue Code for tax-exempt qualified private activity bonds. Specifically, the revenue procedure provides that hearings held by teleconference as described in section 4 of the revenue procedure will be treated as held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit for the purpose of section 1.147(f)-1(d)(2) of the Income Tax Regulations. This guidance eliminates the time period limitations on holding telephonic public hearings that were contained in previous guidance.

Reminder: Use revised form 8038-CP to claim direct pay credits

Issuers of direct pay tax credit bonds should use the January 2022 version of Form 8038-CP for all credit payment claims. Using a prior version of Form 8038-CP will cause processing delays. However, filers should not refile if they have used a prior version of the form.

Below are links to the revised form and instructions:

• Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds
• Form 8038-CP Instructions PDF
• Schedule A, Specific Tax Credit Bonds Interest Limit Computation PDF
• Watch revisions to Form 8038-CP video for a detailed discussion of the January 2022 revisions.

Form 8038-CP is used to claim refundable tax credit payments payable to issuers of qualified build America bonds, recovery zone economic development bonds, and specified tax credit bonds.

The IRS has revised Form 8038 to include bonds authorized by the Infrastructure Investment and Jobs Act

The IRS has released an updated Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues. Form 8038 has been revised to include exempt facility bonds for qualified broadband projects (line 11k) and qualified carbon dioxide capture facilities (line 11o), which were authorized to be financed with private activity bonds by the Infrastructure Investment and Jobs Act, Pub. L. 117-58, 135 Stat. 429 (2021).

Tax Exempt Bonds Forms & Publications are available on IRS.gov.

Reminder: Use revised form 8038-CP to claim direct pay credits

Issuers of direct pay tax credit bonds should use the January 2022 version of Form 8038-CP for all future credit payment claims. Using a prior version of Form 8038-CP may cause processing delays.

Below are links to the revised form and instructions:

• Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds
• Form 8038-CP Instructions PDF
• Schedule A, Specific Tax Credit Bonds Interest Limit Computation PDF
• Watch revisions to Form 8038-CP video for a detailed discussion of the January 2022 revisions.

Form 8038-CP is used to claim refundable tax credit payments payable to issuers of qualified build America bonds, recovery zone economic development bonds, and specified tax credit bonds.

The IRS extends the acceptance of electronic or digital signatures on certain Form 8038 series filings

The IRS has extended its policy to temporarily allow the use of electronic or digital signatures on various forms if signed and postmarked by October 31, 2023. This includes the following Form 8038 filings:

• Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues
• Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues
• Form 8038-GC, Consolidated Information Return for Small Tax-Exempt Government Bond Issues

No other Form 8038 series forms are eligible for this temporary relief.

Electronic or digital signatures are not mandatory and handwritten signatures will continue to be accepted. These forms cannot be e-filed and generally are printed and mailed. Electronic and digital signatures appear in many forms when printed and may be created by many different technologies. The IRS does not require the use of any specific technology to generate electronic or digital signatures.

Reminder: Use revised Form 8038-CP to claim direct pay credits

Issuers of direct pay tax credit bonds should use the January 2022 version of Form 8038-CP for all future credit payment claims. Using a prior version of Form 8038-CP may cause processing delays.

Below are links to the revised form and instructions:

• Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds PDF
• Form 8038-CP Instructions PDF
• Schedule A, Specific Tax Credit Bonds Interest Limit Computation PDF
• Watch Revisions to Form 8038-CP video for a detailed discussion of the January 2022 revisions.

Form 8038-CP is used to claim refundable tax credit payments payable to issuers of qualified build America bonds, recovery zone economic development bonds and specified tax credit bonds.

Revised Form 8038-CP

The IRS revised Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds, and related instructions PDF. The January 2022 revision includes a new Schedule A, Specific Tax Credit Bonds Interest Limit Computation PDF.

Form 8038-CP is used to claim refundable tax credit payments payable to issuers of qualified build America bonds, recovery zone economic development bonds, and specified tax credit bonds.

Issuers should use the January 2022 version of Form 8038-CP for all future submissions. Using a prior version after 2021 may cause a delay in processing a request for credit payment.

Watch the new video from Tax Exempt Bonds, Revisions to Form 8038-CP for a detailed discussion of the Form 8038-CP changes.

Reporting private activity bonds authorized by the Infrastructure Investment and Jobs Act

The IRS plans to update Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues, to provide for identifying the new types of projects (qualified broadband projects and qualified carbon dioxide capture facilities) authorized to be financed with private activity bonds by the Infrastructure Investment and Jobs Act, Pub. L. 117-58, 135 Stat. 429 (2021). The revised Form 8038 is expected to be available before May 15, 2022.

Revision to Form 8038-CP and Instructions

The IRS released draft Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds PDF, including new Schedule A, Specific Tax Credit Bonds Interest Limit Computation PDF, and the related draft Instructions PDF. We’re updating the form and instructions to accommodate electronic filing of Form 8038-CP in 2022.

Form 8038-CP is used to claim refundable tax credit payments payable to issuers of qualified Build America Bonds, Recovery Zone Economic Development Bonds, and specified tax credit bonds.

Issuers should use the January 2022 version of Form 8038-CP for submissions received by the IRS in January 2022. Using a prior version of Form 8038-CP after 2021 may cause a delay in processing a request for credit payment.

Tax Exempt Bonds will hold two Zoom meetings to explain the changes to filing Form 8038-CP and answer questions. Select the appropriate link below to join the meeting:

• Tuesday November 16, 2021 2 p.m. Eastern Zoom meeting ID 161 789 8661

  For paid preparers such as banks and bond counsel.

• Wednesday November 17, 2021 1 p.m. Eastern Zoom meeting ID 160 852 4420 For issuers that file their own Forms 8038-CP.

  To join by audio only, dial by your location and input the meeting ID when prompted:

  • 669-254-5252 US (West Coast)
  • 646-828-7666 US (East Coast)

These Zoom meetings are open to everyone and will cover the same material with a slightly different emphasis. You are welcome to attend either meeting.

We’ll post more information about Form 8038-CP revisions and electronic filing at the Recent Updates to Form 8038-CP and Processing Changes.

Revision to Form 8038-CP and Instructions

The IRS released draft Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds PDF, including new Schedule A, Specific Tax Credit Bonds Interest Limit Computation PDF, and the related draft Instructions PDF. We're updating the form and instructions to accommodate electronic filing of Form 8038-CP in 2022.

Form 8038-CP is used to claim refundable tax credit payments payable to issuers of qualified Build America Bonds, Recovery Zone Economic Development Bonds, and specified tax credit bonds.

Issuers should use the January 2022 version of Form 8038-CP for submissions received by the IRS in January 2022. Using a prior version of Form 8038-CP after 2021 may cause a delay in processing a request for credit payment.

Tax Exempt Bonds will hold two Zoom meetings in November to explain the changes to filing Form 8038-CP and answer questions. Select the appropriate link below to join the meeting:

• Tuesday November 16, 2021 2 p.m. Eastern Zoom meeting ID 161 789 8661

  For paid preparers such as banks and bond counsel.

• Wednesday November 17, 202 1 p.m. Eastern Zoom meeting ID 160 852 4420

  For issuers that file their own Forms 8038-CP.

  To join by audio only, dial by your location and input the meeting ID when prompted:

  • 669-254-5252 US (West Coast)
  • 646-828-7666 US (East Coast)

These Zoom meetings are open to everyone and will cover the same material with a slightly different emphasis. You are welcome to attend either meeting. We'll post more information about Form 8038-CP revisions and electronic filing at the Recent Updates to Form 8038-CP and Processing Changes.

IRS Position Announcement – Tax Law Specialists (Tax Exempt Bonds)

The IRS Office of Tax Exempt Bonds (TEB) is seeking to hire two highly experienced Tax-Advantaged Bonds Tax Law Specialists. The positions are available in any of 27 different locations, as described in the position announcement. The application closing date is October 22, 2021.

As a member of our team, you will be responsible for serving as an expert on technical matters relating to tax-advantaged bonds and municipal finance with respect to all aspects of the TEB program including voluntary compliance, enforcement, data analysis, education and outreach. The job duties for the position include preparing technical responses to inquiries submitted by members of Congress, taxpayers, authorized representatives, government agencies, and other external customers. The position involves conferring with customers and representatives to explain financial, legal and other significant issues involved and the applicability of pertinent tax guidance, as well as actions or adjustments required to promote compliance.

Candidates must have specialized experience in the application of Federal tax laws, regulations and other guidance applicable to tax-advantaged municipal bond transactions, and strong analytical, organizational, writing and interpersonal skills. Please visit us at usajobs.gov.

IRS Position Announcement – Senior Tax Law Specialist (Tax-Advantaged Bonds)

The IRS Tax Exempt and Government Entities (TE/GE) division is seeking to hire a highly experienced Tax-Advantaged Bonds Tax Law Specialist in its Exempt Organizations/Government Entities function for its Washington, D.C. office. The application closing date is October 29, 2021.

As a member of our team, you will be responsible for advising and providing specialized support to the Division Director on complex technical and analytical matters pertaining to tax-advantaged municipal finance transactions, including enforcement and voluntary compliance support and outreach activities. The job duties for the position include preparing technical responses to the most complex inquiries submitted by TE/GE leadership, IRS employees, members of Congress, Tax Exempt Bonds, taxpayers, authorized representatives, government agencies, and other external and internal customers. The position involves networking and relationship building to develop and maintain effective liaisons with internal and external customers within the tax advantaged bond community.

Candidates must have specialized experience in the application of Federal tax laws, regulations and other guidance applicable to tax-advantaged municipal bond transactions, and strong analytical, organizational, writing and interpersonal skills. Please visit us at usajobs.gov.

Revenue Procedure 2021-39 provides temporary guidance regarding the public approval requirement under section 147(f) of the Internal Revenue Code for tax-exempt qualified private activity bonds. Specifically, in light of the continuing Coronavirus Disease pandemic, this revenue procedure extends until March 31, 2022, the time period during which certain telephonic hearings are permitted, as described in Rev. Proc. 2020-21 and modified by Rev. Proc. 2020-49.

New webpage from the Office of Tax-exempt Bonds

A new webpage from the Office of Tax-exempt Bonds, Compliance Resources for Issuers, contains important information for issuers of tax-advantaged bonds all in one place. You’ll find IRS publications covering different types of bonds, compliance guides for issuers and borrowers, and links to other resources addressing topics of importance to the tax-advantaged bond community.

Electronic or digital signatures temporarily permitted on various forms, including certain Form 8038 series filings

The IRS will temporarily allow the use of electronic or digital signatures PDF on various forms, including only the following three Form 8038 filings listed below:

• Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues
• Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues
• Form 8038-GC, Consolidated Information Return for Small Tax-Exempt Government Bond Issues

No other Form 8038 series forms are eligible for this temporary relief.

Electronic or digital signatures will be accepted on these forms that are signed and postmarked from January 1, 2021, through June 30, 2021.

Electronic or digital signatures are not mandatory and handwritten signatures will continue to be accepted. These forms cannot be e-filed and generally are printed and mailed. Electronic and digital signatures appear in many forms when printed and may be created by many different technologies. The IRS does not require the use of any specific technology to generate electronic or digital signatures.