Instructions for Form 8912

Instructions for Form 8912

(Rev. December 2024)

Credit to Holders of Tax Credit Bonds

Section references are to the Internal Revenue Code unless

otherwise noted.

Future Developments

For the latest information about developments related to Form

8912 and its instructions, such as legislation enacted after they

were published, go to IRS.gov/Form8912.

Reminder

Continuous-use forms and instructions. Form 8912 and

these instructions will no longer be updated annually. Instead,

they will only be updated when necessary. The credit is not

available for bonds issued after December 31, 2017.

General Instructions

Purpose of Form

Use Form 8912 to claim the credit for the following tax credit

bonds.

• Clean renewable energy bond (CREB).

• New clean renewable energy bond (NCREB).

• Qualified energy conservation bond (QECB).

• Qualified zone academy bond (QZAB).

• Qualified school construction bond (QSCB).

• Build America bond (BAB).

Generally, in lieu of, or in addition to, receiving periodic

interest payments from the issuer, the holder of the bond is

allowed an income tax credit. The credit compensates the holder

for lending money to the issuer and functions as interest paid on

the bond. Build America bond holders receive taxable interest

from the issuer in addition to being allowed an annual income tax

credit.

Note. If the issuer of the bond made an irrevocable election to

have section 54AA(g) (for a qualified build America bond under

section 54AA(g)(2)) or section 6431(f) (for a specified tax credit

bond under section 6431(f)(3)(A)) apply to the bonds and

receive a refundable credit under section 6431(a), no credit is

allowed to the holder under section 54AA or 54A, respectively,

for that bond.

Who Can Claim the Credits

A taxpayer holding a CREB or qualified tax credit bond (a

qualified tax credit bond doesn't include a QZAB issued before

October 4, 2008) on one or more credit allowance dates can

claim the credit by filing Form 8912 for each tax year in which it

holds the bond on a credit allowance date.

Generally, the credit allowance dates are:

• March 15,

• June 15,

• September 15, and

• December 15.

The credit allowance date also includes the last day on which

the qualified tax credit bond is outstanding.

Holders of QZABs issued before October 4, 2008. An

eligible taxpayer holding a QZAB issued before October 4, 2008,

on the credit allowance date can claim the credit by filing Form

8912. To be an eligible taxpayer, the taxpayer must be a bank,

Sep 6, 2024

insurance company, or other corporation actively engaged in the

business of lending money. In addition, the shareholder of an S

corporation may claim the credit from a QZAB held by an S

corporation that is an eligible taxpayer. The credit allowance date

is the last day of (a) the 1-year period beginning on the date the

bond was issued, and (b) each successive 1-year period

thereafter. See section 1397E (as in effect on October 3, 2008).

QZABs issued after October 3, 2008, are considered

qualified tax credit bonds and the rules of sections 54A

CAUTION (as in effect on December 21, 2017) and 54E (as in

effect on December 21, 2017) apply.

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Holders of BABs. A taxpayer holding a BAB on an interest

payment date can claim the credit by filing Form 8912. An

interest payment date is any date on which the bondholder of

record is entitled to a payment of interest under the bond.

Section 13404 of the Tax Cuts and Jobs Act of 2017, P.L.

115-97, 131 Stat. 2054 (2017), repealed sections 54,

CAUTION 54A–F, and 54AA effective for bonds issued after

December 31, 2017.

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Definitions

CREB. A CREB is any bond issued after 2005 and before 2010

by a qualified issuer, the proceeds of which are used for capital

expenditures incurred by a qualified borrower for a qualified

project. In addition, the bond must be designated by the issuer

as a CREB under section 54 (as in effect on December 21,

2017). An issuer can make such a designation only if it applied

for and received a CREB allocation from the IRS.

A qualified issuer is either a:

• Cooperative electric company—a mutual or cooperative

electric company described in section 501(c)(12) or section

1381(a)(2)(C), or a not-for-profit electric utility that has received

a loan or loan guarantee under the Rural Electrification Act;

• Clean renewable energy bond lender—a lender that is a

cooperative that is owned by, or has outstanding loans to, 100 or

more cooperative electric companies and is in existence on

February 1, 2002, including any affiliated entity that is controlled

by such lender; or

• Governmental body—any state or territory of the United

States, the District of Columbia, Indian tribal government, and

any political subdivision thereof.

A qualified borrower is a mutual or cooperative electric

company described in section 501(c)(12) or section 1381(a)(2)

(C), or a governmental body.

A qualified project is any qualified facility (as determined

under section 45(d) without regard to paragraph (10) and to any

placed-in-service date) owned by a qualified borrower.

Qualified tax credit bond. A qualified tax credit bond means a

NCREB, QECB, QZAB (issued after October 3, 2008), or QSCB

that is a part of an issue that meets the requirements of section

54A(d)(2), (3), (4), (5), and (6) (as in effect on December 21,

2017).

NCREB. An NCREB is any bond issued after October 3, 2008,

and before January 1, 2018, by a qualified issuer as a new

clean renewable energy bond and 100% of the available project

proceeds are used for capital expenditures incurred by

Instructions for Form 8912 (Rev. 12-2024) Catalog Number 57584P

Department of the Treasury Internal Revenue Service www.irs.gov

governmental bodies, public power providers, or cooperative

electric companies for one or more qualified renewable

energy facilities.

A qualified issuer is a public power provider, a cooperative

electric company, a governmental body, a clean renewable

energy bond lender, or a not-for-profit electric utility that has

received a loan or loan guarantee under the Rural Electrification

Act.

A clean renewable energy bond lender is a lender that is a

cooperative that is owned by, or has outstanding loans to, 100 or

more cooperative electric companies and is in existence on

February 1, 2002, and includes any affiliated entity that is

controlled by that lender.

A cooperative electric company is a mutual or cooperative

electric company described in section 501(c)(12) or section

1381(a)(2)(C).

A governmental body is any state or Indian tribal

government, or any political subdivision thereof.

A public power provider is a state utility with a service

obligation, as defined in section 217 of the Federal Power Act (as

in effect on October 3, 2008).

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

public power provider, a governmental body, or a cooperative

electric company.

QECB. A QECB is any bond issued after October 3, 2008, and

before January 1, 2018, by a state or local government as a

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,

2017) for the definition of qualified conservation purposes.

QZAB. A QZAB is any bond issued after December 31,1997,

and before January 1, 2018, by a state or local government as a

qualified zone academy bond and 100% of the available project

proceeds are used to improve certain eligible public schools (for

QZABs issued before October 4, 2008, 95% or more of the

proceeds are used to improve certain eligible public schools).

QSCB. A QSCB is any bond issued after February 17, 2009,

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

repair of a public school facility or for the acquisition of land on

which the bond-financed facility is to be constructed.

BAB. A BAB is any bond (other than a private activity bond)

issued after February 17, 2009, and before January 1, 2011, by

an issuer who makes an irrevocable election to have the rules of

section 54AA (as in effect on December 21, 2017) apply and,

except for that election, the interest on the bond would have

been excludable under section 103.

Specific Instructions

Separate entries and calculations are required for each bond

with a different issuance date or a different credit rate.

Part I—Current Year Credit

Complete Part(s) III and IV before completing Part I and

TIP Part II. See the instructions for Parts III and IV for more

information.

Line 2

Enter the amount from Part IV, line 20. This amount is the total

bond credits from bonds held by you or your nominee(s) and not

reported to you on Form(s) 1097-BTC. This amount may also

include bond credits reported to you from a pass-through entity

(partnership, S corporation, estate, trust, regulated investment

company, and real estate investment trust) that weren't reported

to you on Form(s) 1097-BTC.

Note. You may receive Form(s) 1097-BTC from a pass-through

entity reporting your share of bond tax credits. The entity may

also report your share of bond tax credits on a form/schedule/

statement other than the Form(s) 1097-BTC. In such a case,

don't double-count amounts reported to you. Include any amount

reported to you on Form(s) 1097-BTC from a pass-through entity

on line 13, and not on line 18. For example, if you own an interest

in a partnership, and the partnership reports your share of bond

tax credits earned by the partnership on a Schedule K-1 (Form

1065) as well as on a Form 1097-BTC, don't double-count these

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.

Line 3

Enter the amount of the credit carryforward (from prior years)

that is attributable to a qualified tax credit bond or a BAB. Credits

attributable to a CREB, or a QZAB issued before October 4,

2008, can't be carried forward.

Line 5

Estates and trusts must allocate any CREB credit on line 4

between the estate or trust and the beneficiaries in the same

proportion as income was allocated and enter the beneficiaries'

share on line 5.

Part II—Allowable Credit

The credit allowed for the current year may be limited based on

your tax liability. Use Part II to figure the allowable credit.

Line 10b

Enter the total allowable credit, if any, from your tax return as

follows.

Individuals. Enter the amount from Form 1040, 1040-SR, or

1040-NR, line 19; and Schedule 3 (Form 1040), lines 2 through

5b, 6c through 6j, and 6l through 6z.

Estates and trusts. Enter the total of any write-in credits from

Form 1041, Schedule G, line 2e. But if the amount you enter on

line 10b causes line 11 to be less than zero, then enter -0- on

line 11.

Corporations. Enter the amount from Form 1120, Schedule J,

line 5b (or the amount from the applicable line of your return),

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

zero, then enter -0- on line 11.

Line 10c

If you are filing Form 3800, enter the credit from Form 3800.

Line 1

Enter the total from Part III, line 14. This amount is the total bond

credits reported to you on Form(s) 1097-BTC.

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Instructions for Form 8912 (Rev. 12-2024)

Line 12

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”).

Holders of a CREB, or a QZAB issued before October 4,

2008. If you can't use all of the credit from Part I because of the

tax liability limit (for example, line 12 is smaller than line 4), you

can deduct the unused credit for the current tax year. However,

you can choose to deduct the unused credit in the next tax year

instead of the current tax year.

Because a current year deduction may further reduce the tax

liability limit, you may need to refigure the tax liability limit and the

unallowed credit. Refigure the unallowed credit until it equals the

deduction. It may be necessary to use the “trial and error”

method.

Holders of a qualified tax credit bond or a BAB. If you can't

use all of the credit from Part I (for example, line 12 is smaller

than line 4), you may carry the unused portion of the credit to the

next tax year and add it to any credit allowable to the holder of

the same bond in the next tax year. A holder of a qualified tax

credit bond or BAB can't deduct any unused credit.

Limitation on credit from pass-through entities. For a CREB

held by a pass-through entity, the credit included on line 1 (for a

credit received from a pass-through entity that issued a Form

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

of tax attributable to your taxable income from your interest in the

pass-through entity distributing the credit. Figure the credit

limitation separately for each interest in a pass-through entity

using the following limitation formula.

Line 11 x

Taxable income for the year attributable to your interest in the

pass-through entity

Taxable income for the year

If in the current tax year you had no taxable income attributable

to a particular interest in a pass-through entity, you can't claim

any CREB credit this tax year for that interest.

All taxpayers (other than estates and trusts). For line 12,

add the line 1 and line 2 credits separately figured for each

interest in a pass-through entity (as limited by the formula above

for each such interest) to the total credit on line 4 not attributable

to that pass-through entity. Enter on line 12 the smaller of this

result or the amount on line 11. This limitation only applies to a

CREB credit received from a pass-through entity.

Estates and trusts. For line 12, add the line 1 and line 2

credits separately figured for each interest in a pass-through

entity (as limited by the formula above for each such interest) to

the total credit on line 6 not attributable to that pass-through

entity. Enter on line 12 the smaller of this result or the amount on

line 11. This limitation only applies to a CREB credit received

from a pass-through entity.

Part III—Bond Credit(s) Reported to You on

Form(s) 1097-BTC

Part III is used to list and total credits that are reported to you on

Form(s) 1097-BTC. Complete and attach as many copies of Part

III as needed to list the credits you are reporting for the current

tax year. Don't include credit amounts previously claimed on any

of your returns. If multiple copies of Part III are completed, enter

the total of all Parts III, lines 14, on Part I, line 1.

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Do not enter any bond credits for bonds issued after

December 31, 2017.

CAUTION

Line 13, Column (b1)

Enter the Form 1097-BTC issuer's federal identification number

shown on Form 1097-BTC.

Line 13, Column (b2)

Enter the unique identifier shown in box 2b of Form 1097-BTC.

Line 13, Column (c)

Enter the amount shown in box 1 of any Form 1097-BTC you

receive.

If you receive Form(s) 1097-BTC from any pass-through

entity reporting your share of bond credits, report the

CAUTION credit on Part III, line 13.

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Note. Fiscal year filers should use information from applicable

boxes 5a through 5l of Form 1097-BTC to claim the credit for

their fiscal tax year.

Line 14

Add the amounts listed on line 13, column (c), and enter the total

on line 14. If you complete and attach one copy of Part III, enter

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

14 and enter the total on line 1.

Part IV—Bond Credits From Bonds Held by You

and/or Your Nominee Not Reported to You on

Form 1097-BTC

Complete and attach a Part IV for each bond you held or bond

credits received from a pass-through entity that weren't reported

to you on Form(s) 1097-BTC. Complete and attach as many

copies of Part IV as you need to claim the credit(s) for each bond

you held directly or through a nominee and for which you didn't

receive a Form 1097-BTC. Also, complete a separate Part IV for

each bond credit passed through to you from a pass-through

entity for which a Form 1097-BTC wasn't issued. If multiple

copies of Part IV are completed, enter the total of all Parts IV,

lines 20, on Part I, line 2.

Note. If you are reporting a bond credit received from a

pass-through entity, complete lines 15a and 15b and enter the

credit amount on line 18, column (f).

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Do not enter any bond credits for bonds issued after

December 31, 2017.

CAUTION

Line 15a

Enter the bond issuer's name and address. If the credit was

received from a pass-through entity, enter the name of the entity

distributing the bond credit.

Line 15b

Enter the bond issuer's employer identification number. If the

credit was received from a pass-through entity, enter the

Instructions for Form 8912 (Rev. 12-2024)

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you are claiming the credit. The percentage of credit allowed for

that credit allowance date is prorated for the number of days the

bond was outstanding during the 3-month period.

employer identification number of the pass-through entity

distributing the credit.

Line 17

If the bond was redeemed, sold, or otherwise disposed of, enter

the date.

Line 18, Column (a)

Enter the CUSIP number of the bond. If there is no CUSIP

number, enter the principal payment dates of the bond. For

CREBs, enter the CUSIP number and principal payment dates.

For BABs, enter the CUSIP number and interest payment dates.

Example 2. Your tax year begins December 1, 2017, and

ends November 30, 2018. You held a QECB (issued on July 23,

2010) that matures on July 23, 2018. Since the bond wasn't held

for the entire 3-month period ending on September 15, 2018, the

prorated portion of the 25% is figured by dividing (a) the number

of days the bond was outstanding beginning on the day after the

last credit allowance date and ending on the maturity date by (b)

the number of days included in the 3-month period beginning on

the day after the credit allowance date and ending on the next

credit allowance date.

Line 18, Column (b)

38 days (number of days from June

16 through July 23)

Enter the face amount of the CREB, qualified tax credit bond, or

QZAB (issued before October 4, 2008) minus any payment of

principal received. For a BAB, enter the amount of interest

payable.

92 days (number of days from June

16 through September 15)

= 0.413 x 25% (0.25) = 10%

You would enter 60% figured as follows.

Line 18, Column (c)

The credit rate for the CREB, qualified tax credit bond, and

QZAB is the rate published on the Fiscal Data website at

FiscalData.Treasury.gov/datasets/qtcb-historical-interest-rates/

historical-qualified-tax-credit-bond-interest-rates for the first day

on which there is a binding contract in writing for the sale or

exchange of the bond.

The credit rate for QZABs issued before July 1, 1999, is

110% of the long-term applicable federal rate (AFR),

compounded annually, for the month and year the bond is

issued. The IRS announces the long-term AFR monthly in a

series of revenue rulings published in the Internal Revenue

Bulletin.

Credit allowance date

%

March 15, 2018

25

June 15, 2018

25

September 15, 2018

10

60

Generally, for bonds issued during the 3-month period ending

on a credit allowance date, the sum of the prorated credit

amounts for the first credit allowance date and the last credit

allowance date should equal 25% of the annual credit allowance.

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The credit rate for a BAB is 35%.

Do not enter any bond credits for bonds issued after

December 31, 2017.

CAUTION

Line 18, Column (e)

Line 18, Column (f)

Generally, enter 25% for each credit allowance date you hold a

CREB, or qualified tax credit bond during your tax year. Enter

100% for a BAB, or a QZAB issued before October 4, 2008.

This amount is the income tax credit to the holder of a tax credit

bond. If the bond credit is from a pass-through entity, enter the

amount of the credit in column (f). You must complete lines 15a

and 15b.

Example 1. Your tax year begins December 1, 2017, and

ends November 30, 2018. You purchased a QECB (issued on

June 30, 2017) from the prior holder on March 16, 2018, and

held it through the end of the tax year ending November 30,

2018. You would enter 50% figured by including the day the bond

was purchased as the first day on which the credit accrues, as

follows.

Credit allowance date

%

June 15, 2018

25

September 15, 2018

25

50

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Do not enter any bond credits for bonds issued after

December 31, 2017.

CAUTION

However, the 25% will be prorated if a CREB or qualified tax

credit bond is issued, redeemed, or matures during the 3-month

period ending on a credit allowance date with respect to which

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Line 20

Bond credit. Enter the total amounts from all Parts IV, lines 20,

on Part I, line 2.

Interest income. The current year credit on line 4 (or for

estates and trusts, line 6) is deemed to be a payment of qualified

stated interest (as defined in Regulations section 1.1273-1(c))

and as such is treated as taxable interest income paid on the

credit allowance date, or for BABs, the interest payment date. If

the holder is on the accrual method, the holder must accrue the

credit amount as taxable interest income on the credit allowance

date or interest payment date.

If a holder of a tax credit bond sells the bond between credit

allowance dates (or for BABs, interest payment dates), part of

the sales price is treated as accrued interest to the date of the

sale and must be reported as interest income. If a holder

purchases a bond between credit allowance dates or interest

payment dates, the interest accrued as of the date of the

purchase (as reflected in the purchase price) isn't included as

interest when the purchaser receives the value of the credit (and

Instructions for Form 8912 (Rev. 12-2024)

the deemed payment of interest) on the next credit allowance

date or interest payment date. Instead, the payment of the

deemed interest is treated as a return of capital to the extent of

the accrued interest at the time of purchase and reduces the

holder’s basis in the bond.

Paperwork Reduction Act Notice. We ask for the information

on this form to carry out the Internal Revenue laws of the United

States. You are required to give us the information. We need it to

ensure that you are complying with these laws and to allow us to

figure and collect the right amount of tax.

You are not required to provide the information requested on

a form that is subject to the Paperwork Reduction Act unless the

form displays a valid OMB control number. Books or records

relating to a form or its instructions must be retained as long as

their contents may become material in the administration of any

Internal Revenue law. Generally, tax returns and return

information are confidential, as required by section 6103.

Instructions for Form 8912 (Rev. 12-2024)

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated burden

for individual and business taxpayers filing this form is approved

under OMB control number 1545-0074 and 1545-0123 and is

included in the estimates shown in the instructions for their

individual and business income tax return. The estimated burden

for all other taxpayers who file this form is shown below.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . .

Learning about the law or the form . . . . . . . . . . . . .

Preparing and sending the form to the IRS . . . . . . . .

9 hr., 34 min.

1 hr., 59 min.

2 hr., 13 min.

If you have comments concerning the accuracy of these time

estimates or suggestions for making this form simpler, we would

be happy to hear from you. See the instructions for the tax return

with which this form is filed.

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