Instructions for Form

Instructions for Form

8038-CP and Schedule A

(Form 8038-CP)

Department of the Treasury

Internal Revenue Service

(Rev. December 2024)

Return for Credit Payments to Issuers of Qualified Bonds

Section references are to the Internal Revenue Code unless

otherwise noted.

Future Developments

For the latest information about developments related to Form

8038-CP and its instructions, such as legislation enacted after

they were published, go to IRS.gov/Form8038CP.

What's New

Report numbers. There are updated instructions for line 10

concerning different departments of an issuer using the same

EIN.

Interest payment date. There are updated instructions for

line 18 related to final returns.

Reminders

Electronic filing is available and may be required. Under

final regulations (T.D. 9972) published in February 2023, filers

are required to file Form 8038-CP electronically if they are

required to file 10 or more returns of any type in a calendar year.

The final regulations are effective for Forms 8038-CP filed after

December 31, 2023. Additionally, any other filer of Form

8038-CP may voluntarily file Form 8038-CP electronically. (See

Where To File, later, for more information.)

General Instructions

Use Correct Version of Form and Schedule A

Use the January 2022 version of Form 8038-CP and the

December 2022 version of Schedule A to Form 8038-CP.

Receipt by the IRS of a prior version of the Form 8038-CP could

result in a delay of the credit payment or otherwise affect normal

processing.

Purpose of Form

The American Recovery and Reinvestment Act of 2009 (ARRA)

created build America bonds (BABs) and recovery zone

economic development bonds (RZEDBs). The Hiring Incentives

to Restore Employment Act (HIRE Act) provided an option for

issuers of new clean renewable energy bonds (NCREBs),

qualified energy conservation bonds (QECBs), qualified zone

academy bonds (QZABs), and qualified school construction

bonds (QSCBs) to elect to issue such bonds as specified tax

credit bonds. The Tax Relief, Unemployment Insurance

Reauthorization, and Job Creation Act of 2010 (the Tax Relief

Act) discontinued the option to elect to issue QZABs as

specified tax credit bonds for bonds issued pursuant to an

allocation of the 2011 or later national QZAB limitation. The

ARRA, the HIRE Act, and the Tax Relief Act are referred to

throughout these instructions as “the Acts”.

Note. Only issuers of BABs and RZEDBs issued before January

1, 2011, and specified tax credit bonds issued before January 1,

2018, that qualify for, and have elected to receive, a refundable

Oct 23, 2024

credit under former section 6431 may file Form 8038-CP. The

authority to issue BABs and RZEDBs expired on January 1,

2011. If an issuer takes action that results in a significant

modification or reissuance of BABs or RZEDBs after December

31, 2010, then the bonds may no longer be qualified bonds

under the applicable section and the issuer may no longer be

entitled to request a payment using Form 8038-CP.

The Tax Cuts and Jobs Act (P.L. 115-97) repealed the

authority to issue tax credit bonds (including the election to

receive a refundable credit under former section 6431), including

specified tax credit bonds. The repeal applies to qualified

forestry conservation bonds, NCREBs, QECBs, QZABs, and

QSCBs issued after December 31, 2017. If an issuer takes

action that results in a significant modification or reissuance of

specified tax credit bonds after the effective date of the Tax Cuts

and Jobs Act, then the bonds may no longer be qualified bonds

under the applicable section and the issuer may no longer be

entitled to request a payment using Form 8038-CP.

Form 8038-CP is used by issuers of BABs and RZEDBs, and

specified tax credit bonds (Direct Pay bonds) that elect to

receive a direct payment from the federal government equal to a

percentage of the interest payments on these bonds. For more

information, see Notices 2009-26, 2009-16 I.R.B. 833, and

2010-35, 2010-19 I.R.B. 660.

Note. Each type of bond must be reported on a separate Form

8038-CP.

Other tax credit bonds, including QZABs issued pursuant to

an allocation of 2011 (or later) volume cap, qualified forestry

conservation bonds, clean renewable energy bonds, and

Midwestern tax credit bonds are not eligible for the election by

the issuer to receive refundable credit payments under former

section 6431(f).

This return is to be filed only if, as of the date filed, the

issuer of the outstanding bonds for which this return is

CAUTION submitted has reasonably concluded that the bonds

meet all applicable requirements for the payment of the

requested credit.

!

Who Must File

Issuers of BABs (Direct Pay), RZEDBs, and specified tax credit

bonds must submit this return to request credit payments

payable under “the Acts”.

What To File

Issuers of BABs (Direct Pay), RZEDBs, and specified tax credit

bonds are required to submit the most recent version of Form

8038-CP, after the effective date of the version, to request

payment of a refundable credit. As of the date of publication of

these instructions, the most recent version of Form 8038-CP is

the January 2022 version to be used for all such forms to be

received by the IRS on or after January 1, 2022. As of the date of

publication of these instructions, the most recent version of

Schedule A is the December 2022 version.

Cat. No. 52942P

The payment requested on Form 8038-CP can only relate to

the interest payable on a single bond issue. If the issue has both

fixed rate bonds and variable rate bonds, file a separate Form

8038-CP for each interest rate structure. If a single bond issue

constitutes both BABs (Direct Pay) and RZEDBs, file a separate

Form 8038-CP for each type of bond.

File a separate Form 8038-CP with a Schedule A for

NCREBs, QECBs, QZABs, and QSCBs. If the information

provided on the return relates to more than one type of bond or if

the return is not completed in full, the credit payment could be

delayed or normal processing could otherwise be affected. In

order to process the refundable credit payment, the IRS will

correspond with the designated contact person listed in Part II, at

the address in Part II, as necessary.

When To File

A Form 8038-CP filed for fixed rate bonds must be filed no later

than 45 days before the relevant interest payment date. Form

8038-CP may not, however, be submitted earlier than 90 days

before the relevant interest payment date. See Notice 2009-26,

2009-16 I.R.B. 883.

For variable rate bonds, when the issuer knows the interest

payment amount 45 days prior to the interest payment date,

Form 8038-CP may be filed within the same timelines as fixed

rate bonds (45 days before the relevant interest payment date

but no earlier than 90 days before the relevant interest payment

date). However, a separate Form 8038-CP should still be filed for

the variable rate bonds. See also the specific instructions below

for completing line 17a.

For variable rate bonds when the issuer doesn’t know the

interest payment amount 45 days prior to the interest payment

date, the issuer must aggregate all credit payments on a

quarterly basis and file a Form 8038-CP for reimbursement in

arrears no later than 45 days after the last interest payment date

within the quarterly period for which the reimbursement is being

requested. See also the specific instructions below for

completing line 17a.

Where To File

Mandatory electronic filing. A filer required to file at least 10

returns of any type during the calendar year must file Forms

8038-CP electronically starting in 2024. “Returns” for purposes

of these instructions include information returns (for example,

Forms W-2 and Forms 1099), income tax returns, employment

tax returns (including quarterly Forms 941, Employer's

QUARTERLY Federal Tax Return), and excise tax returns. For

general information about electronic filing, go to IRS.gov/Efile,

and see Pub. 4163, Modernized e-File (MeF) Information for

Authorized IRS e-File Providers for Business Returns.

Waivers and exemptions. On a year-by-year basis, the IRS

may waive the requirements to file Form 8038-CP electronically.

In certain circumstances, a filer may be administratively exempt

from the requirement to file electronically. The filer should keep

documentation supporting their undue hardship or other

applicable reason for not filing electronically in the filer’s records.

For more information about mandatory electronic filing, waivers,

and exemptions, see Regulations section 301.6011-11.

Paper returns. For filers submitting paper returns, send Form

8038-CP to:

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0050

Private delivery services (PDSs). Paper filers can use certain

PDSs designated by the IRS to meet the “timely mailing as timely

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filing” rule for tax returns. Go to IRS.gov/PDS for the current list

of designated services.

The PDS can tell you how to get written proof of the mailing

date.

For the IRS mailing address to use if you're using PDSs, go to

IRS.gov/PDSstreetAddresses.

PDSs can’t deliver items to P.O. boxes. You must use the

U.S. Postal Service to mail any item to an IRS P.O. box

CAUTION address.

!

Assembling Form 8038-CP, Schedule A, and

Attachments

Before filing Form 8038-CP, assemble the package of the core

form, Schedule A, and attachments in the following order.

1. Core form with Parts I through III, Direct Deposit (if

applicable), Signature and Consent, and Paid Preparer Use Only

(if applicable) completed.

2. Schedule A completed, if applicable. Schedule A must

be submitted for all NCREBs, QECBs, QZABs, and QSCBs for

which the issuer has elected to receive a refundable credit under

former section 6431.

3. Attachments completed as applicable. If applicable,

include:

a. An explanation for an amended return,

b. An explanation for line 21c,

c. A revised debt service schedule,

d. An explanation for line 23b, and

e. An explanation for line 24b.

Don't attach materials not authorized in these instructions or

not otherwise authorized by the IRS.

To facilitate the processing of your e-filed return, don't

password protect or encrypt PDF attachments.

CAUTION Password protecting or encrypting a PDF file that is

attached to an e-filed return prevents the IRS from opening the

attachment.

!

Other Forms That May Be Required

For rebating arbitrage (or paying a penalty in lieu of arbitrage

rebate) to the federal government, use Form 8038-T, Arbitrage

Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate.

No Rounding to Whole Dollars

You must enter cents on the form. Do not round amounts to the

nearest dollar (for example, $1.75 must be entered as $1.75, not

$2.00; conversely, $1.25 must be entered as $1.25, not $1.00).

Round fractional cents to the next lowest cent (for example,

round $1.996 down and enter as $1.99). The amount paid to you

will be based on these parameters.

Where the Requested Payment Will Be Sent

The credit payment on line 22 will be sent by check to the entity

that is to receive payment listed in Part I at the address

designated in Part I, unless the issuer has elected to have the

payment deposited directly, in which case the payment will be

directly deposited to the Automated Clearing House (ACH)

routing and account numbers listed on lines 26a and 26c.

Note. If the entity listed in Part I is not the issuer, the ACH

routing and account numbers listed on lines 26a and 26c must

be the account information of the entity listed in Part I. If the

entity listed in Part I is the issuer, the account information must

be the account information of the issuer. The issuer must enter

the correct ACH routing and account numbers on Form 8038-CP

to receive a direct deposit.

If the amount of the credit payment requested is required

to be offset against other outstanding taxes or

CAUTION obligations, then the credit payment to be received could

be less than the amount requested. For more information, see

Notices 2009-26 and 2010-35.

!

Specific Instructions

Part I—Information on Entity That Is To Receive

Payment

Amended Return

When to check the “Amended Return” box. An amended

return can only be filed if you are filing to correct errors in Part III

on a previously filed final return. A previously filed final return

means:

1. Form 8038-CP previously submitted for the final interest

payment date for the bonds; and

2. “Yes” is checked on:

a. Line 25 of the January 2020 or later versions of Form

8038-CP, or

b. Line 23 of the January 2012 or prior versions of Form

8038-CP.

Entries on the amended return. The following are directions

for the entries to make on the amended return.

1. Check the “Amended Return” box in the heading of Part I

of the return.

2. Complete Part I of the amended return as follows.

a. Enter the same information for lines 1–4 as reported on

the original final return.

b. Complete lines 5–6 using current information.

3. Complete Part II of the amended return as follows.

a. Enter the same information for lines 7–9 as reported on

the original final return.

b. Enter the correct three-digit original report number on

line 10.

i. For the January 2020 and prior versions of Form 8038-CP,

the report number was assigned by the IRS. You were notified of

the report number in Notice CP152A. Enter the original report

number from Notice CP152A for the final return. If you can’t

locate Notice CP152A for the final return on the January 2020

and prior versions of Form 8038-CP, enter report number 499 on

line 10 of the amended return.

Note. Use of report number 499 will notify the IRS that you don’t

have the original report number. Lack of the original report

number may affect normal processing of the amendment.

ii. For the January 2022 and later versions of Form 8038-CP,

you assigned the report number for entry on line 10. Enter the

same report number you entered on the original final return.

c. Enter the same information for lines 11–14 as reported on

the original final return.

d. Complete lines 15–16 using current information.

e. Check the appropriate box on line 17a.

f. On line 17b, enter the same issue price amount as

reported on the original final return.

g. On line 17c, enter the appropriate three-digit code. (See

the instructions for Part II, line 17c, later.)

4. Complete Part III of the amended return as follows.

a. On line 18, enter the same interest payment date as

reported on the original final return.

b. Complete lines 19a–24b using the information reported

on the original final return in addition to the new or corrected

information. (See the applicable instructions, later.)

c. The entry for line 25 must be “Yes.” Failure to check “Yes”

on line 25 could result in a delay in processing or otherwise

affect normal processing.

5. If the direct deposit information on the original final return

is still current, enter the same information as provided on the

original final return. If the direct deposit information on the

original final return isn’t correct, leave lines 26a, 26b, and 26c

blank on the amended return and we will send any required

payment by a check to the entity listed in Part I at the address

listed in Part I of the amended return.

6. Complete the Signature and Consent part of the form

using current information.

Filing the amended return.

• If the previously filed final return was permitted to be filed on

paper and was filed using a paper return, the amended return

must be filed using a paper return.

• If the previously filed final return was permitted to be filed on

paper, but was filed electronically, the amended return may be

filed either on paper or electronically.

• If the issuer previously filed final return was required to be filed

electronically, any amended return must be filed electronically.

See Regulations section 301.6011-11.

• Attach an explanation of the reason for the amended return as

a separate document labeled “Explanation for Amended Return.”

Include the issuer name, the employer identification number

(EIN), the relevant interest payment date for the final return, and

the report number on the explanation. For each line being

amended, provide the original entry, the new entry, and an

explanation. For paper filing, attach it to the return.

If a final return was not filed, any corrections to the

amount of credit payment requested in Part III of a

CAUTION previously filed return must be corrected by using the net

adjustment line 21a or 21b. Such corrections may only be

submitted on a subsequent Form 8038-CP filed to request a

credit payment. Do not check the “Amended Return” box if you

are correcting non-final prior filings of a Form 8038-CP by using

line 21a or 21b.

!

Line 1. Enter the name of the entity to which the requested

refundable credit payment is to be paid. If the payment is to be

made to the entity that issued the bonds, enter the name of that

issuer. For BABs and RZEDBs, the issuer's name should be the

name listed on Form 8038-B, Information Return for Build

America Bonds and Recovery Zone Economic Development

Bonds, Part I, line 1. For specified tax credit bonds, the issuer's

name should be the name listed on Form 8038-TC, Information

Return for Tax Credit Bonds and Specified Tax Credit Bonds,

Part I, line 1. If the issuer authorized another entity (for example,

a trustee bank) to receive the requested refundable credit

payment on its behalf, enter the name of that entity.

Note. By entering the name of an entity other than the issuer,

the issuer consents and authorizes the IRS to send the

requested refundable credit payment to the entity listed in Part I.

The issuer further consents and authorizes the IRS to

communicate directly with the entity listed in Part I and to

disclose its return information to that entity, as necessary, to

process the refundable credit payment.

Line 2. Enter the EIN of the entity identified on line 1. If the

issuer is the entity listed in Part I, for BABs and RZEDBs, the

issuer's EIN should be the EIN listed on Form 8038-B, Part I,

line 2. If the issuer is the entity listed in Part I, for specified tax

3

credit bonds, the issuer's EIN should be the EIN listed on Form

8038-TC, Part I, line 2.

Lines 5 and 6. If the issuer is not the entity listed in Part I, enter

on line 5 the name and title and on line 6 the phone number of

the designated contact person for the entity named in Part I that

is to receive payment of the credit (such as an employee of the

trustee bank) that the IRS may call for more information. If the

issuer is the entity listed in Part I, enter on line 5 the name and

title and on line 6 the phone number of the designated contact

person (such as an officer or employee of the issuer, the legal

representative of the issuer, or the paid preparer) whom the IRS

may call for more information.

Note. If the issuer on line 5 authorizes the IRS to call a person

other than an officer of the issuer for more information, by

signing this return the issuer's authorized representative

consents to the disclosure of the issuer's return information to

such person, as necessary to process this return.

Part II—Reporting Authority

Part II should be completed in full if the issuer authorized the IRS

to pay the requested refundable credit payment to another entity

on its behalf (for example, a trustee bank).

Lines 7 and 8. If the issuer's name is the same as line 1, enter

“SAME” and skip lines 8, 9, 11, 15, and 16. If the issuer's name

is not the same as line 1, enter the name, EIN, and complete

address of the issuer of the bond issue in Part II. For BABs and

RZEDBs, the issuer's name and EIN should be the name and

EIN listed on Form 8038-B, Part I, lines 1 and 2, filed for the bond

issue. For specified tax credit bonds, the issuer's name and EIN

should be the name and EIN listed on Form 8038-TC, Part I,

lines 1 and 2, filed for the bond issue.

Line 10. Issuers are now required to assign permanent report

numbers for bonds currently eligible to receive credit payments

and consistently use the same report number when filing to

claim the credit for the bonds. Assign a separate report number

in the range 401–450 for each type of bond that is required to be

treated as a separate bond issue for purposes of Form 8038-CP

payment requests. (See What To File, earlier.) Enter the

three-digit report number that the issuer assigned to the bonds

on Part II, line 10, of the Form 8038-CP. Separately reported

bonds for purposes of Form 8038-CP payment requests should

be numbered consecutively starting with 401. Once a report

number is used for a particular bond, it must be used as the

report number for all future filings of Form 8038-CP returns for

those bonds. The report number may not be used for any other

Direct Pay bonds, even after bonds are redeemed or are no

longer outstanding. When different departments of the same

issuer file Forms 8038-CP using the same EIN, the departments

must not use the same report number for their respective bonds.

Issuers must file separate Forms 8038-CP for each type of

bond and for fixed rate bonds and variable rate bonds.

• If a single bond issue constitutes both BABs (Direct Pay) and

RZEDBs, file a separate Form 8038-CP for each type of bond

and assign a different report number for each. If a single bond

issue consists of more than one type of specified tax credit bond,

assign separate report numbers for NCREBs, QECBs, QZABs,

and QSCBs, and file a separate Form 8038-CP for each type of

bond.

• If a single bond issue contains both fixed rate bonds and

variable rate bonds, assign separate report numbers for each

interest rate structure and file a separate Form 8038-CP for each

interest rate structure.

Example. Issuer A elected to receive a refundable credit

under former section 6431 for its bonds.

In February 2010, Issuer A sold BABs and RZEDBs payable

from the same revenues using the same official statement.

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Although the bonds are one bond issue for most purposes,

Issuer A properly reported the issuance of the bonds using

separate Forms 8038-B for the BABs and the RZEDBs. In

January 2022, Issuer A assigned report number 401 to the BABs

and report number 402 to the RZEDBs. Report number 401 will

be entered on Part II, line 10, on all future Forms 8038-CP filed

with respect to the BABs. Report number 402 will be entered on

Part II, line 10, on all future Forms 8038-CP filed with respect to

the RZEDBs.

In October 2010, Issuer A sold fixed rate QSCBs and variable

rate QSCBs payable from the same taxes using the same official

statement. The bonds are one bond issue for most purposes,

and Issuer A properly reported the issuance of the bonds using a

single Form 8038-TC with two debt service schedules. In

January 2022, Issuer A assigned report number 403 to the fixed

rate QSCBs and report number 404 to the variable rate QSCBs.

Report number 403 will be entered on Part II, line 10, on all future

Forms 8038-CP filed with respect to the fixed rate QSCBs.

Report number 404 will be entered on Part II, line 10, on all future

Forms 8038-CP filed with respect to the variable rate QSCBs.

In November 2010, Issuer A sold fixed rate QECBs, fixed rate

NCREBs, and variable rate NCREBs payable from the same

revenues using the same official statement. In January 2022,

Issuer A assigned report number 405 to the QECBs, report

number 406 to the fixed rate NCREBs, and report number 407 to

the variable rate NCREBs. Separate Forms 8038-CP will be filed

for the QECBs, fixed rate NCREBs, and variable rate NCREBs

using the respective report numbers on Part II, line 10.

Failure to assign a correct three-digit report number following

the assignment methodology in these instructions could delay

payment of the credit or otherwise affect normal processing.

Line 12. Enter the issue date of the bond issue. For BABs

(Direct Pay) and RZEDBs, the issue date should be the issue

date listed on Form 8038-B, Part I, line 7, filed for the bond issue.

For specified tax credit bonds, the issue date should be the issue

date listed on Form 8038-TC, Part I, line 7, filed for the bond

issue.

Line 13. Enter the name of the bond issue. If the bond issue is

not named, enter “None.” For BABs (Direct Pay) and RZEDBs,

the name of the bond issue should be the name listed on Form

8038-B, Part I, line 8, filed for the bond issue. For specified tax

credit bonds, the name of the bond issue should be the name

listed on Form 8038-TC, Part I, line 8, filed for the bond issue.

For electronic returns, do not use brackets, dollar signs, or

commas in the name of the bond issue.

Line 14. Enter the Committee on Uniform Securities

Identification Procedures (CUSIP) number on the bond with the

latest maturity. For BABs and RZEDBs, the CUSIP number

should be the CUSIP number listed on Form 8038-B, Part I,

line 9, filed for the bond issue. For NCREBs, QECBs, QZABs,

and QSCBs, the CUSIP number should be the CUSIP number

listed on Form 8038-TC, Part I, line 9, filed for the bond issue.

Enter the nine-character CUSIP number without any spaces. If

the bond issue was not publicly offered and there is no assigned

CUSIP number, enter “None.” The CUSIP number used for

purposes of Form 8038-CP does not change. Continue to use

the CUSIP number originally reported on Form 8038-B or Form

8038-TC even if the bond maturity associated with the CUSIP

number is no longer outstanding. Use the CUSIP number

reported on Form 8038-B or Form 8038-TC even if you are

required by these instructions to treat bonds with different

interest rate structures as separate bonds and file separate

Forms 8038-CP (for example, for fixed and variable rate bonds of

the same bond issue).

Leaving line 14 blank, or entering something other than a

nine-character CUSIP number without spaces or “None,”

CAUTION could result in a delay in the credit payment or otherwise

affect normal processing.

!

Example. In May 2010, Issuer B sold fixed rate BABs with a

final maturity date of May 1, 2040, and variable rate BABs with a

final maturity date of May 1, 2025, payable from the same taxes

using the same official statement. Issuer B elected to receive a

refundable credit under former section 6431 for its bonds and

filed a single Form 8038-B for the bonds. The CUSIP number for

the fixed rate bonds maturing on May 1, 2040, was reported on

Form 8038-B, Part I, line 9.

In January 2022, Issuer B files separate Forms 8038-CP for

the fixed rate BABs and the variable rate BABs and uses the

CUSIP number for the fixed rate bonds maturing on May 1, 2040,

on the Form 8038-CP filed for the fixed rate BABs and on the

Form 8038-CP filed for the variable rate BABs.

On November 1, 2022, Issuer B retires the fixed rate BABs. In

January 2023, Issuer B files a Form 8038-CP with respect to the

variable rate BABs. Issuer B must continue to use the CUSIP

number originally reported on Form 8038-B (CUSIP number for

fixed rate bonds with a maturity date of May 1, 2040) even

though the bonds corresponding to the CUSIP number are no

longer outstanding.

Lines 15 and 16. If the issuer isn’t the entity listed in Part I,

enter the name, title, and phone number of the officer of the

issuer or other person whom the IRS may call for more

information. If the issuer is the entity listed in Part I, leave lines 15

and 16 blank.

Note. If the issuer authorizes, on line 15, the IRS to contact a

person other than an officer of the issuer for more information, by

signing this form the issuer's authorized representative consents

to the disclosure of the issuer's return information to such

person, as necessary to process this return.

Line 17a. Check the box that applies to the bonds of the issue

for which this return is submitted. Only one box should be

checked because payment requests for variable rate bonds and

fixed rate bonds are required to be filed on separate returns.

The following are additional instructions with respect to

variable rate bonds. Always file a separate Form 8038-CP for

variable rate bonds. However, when the issuer knows the interest

payment amount at least 45 days prior to the interest payment

date, Form 8038-CP may be filed within the same timelines as

fixed rate bonds (45 days before the relevant interest payment

date but no earlier than 90 days before the relevant interest

payment date). See What To File, earlier. When the issuer files

Form 8038-CP for variable rate bonds using the timelines for

fixed rate bonds, the box on line 17a for fixed rate bond is

checked.

Example. In October 2010, Issuer F issued fixed rate BABs

and variable rate BABs payable from the same taxes using the

same official statement. Interest on the fixed rate bonds is paid

on January 1 and July 1 of each year at a fixed rate of 6%.

Interest on the variable rate bonds is paid on January 1 and July

1 of each year at a rate based upon a set formula and the

interest rate is reset every 5 years pursuant to the formula. Issuer

F elected to receive a refundable credit under former section

6431 for the bonds and filed a single Form 8038-B for the bonds.

On April 10, 2024, Issuer F files a separate Form 8038-CP for

the July 1, 2024, interest payment date for the fixed rate BABs

and checks the box for “Fixed rate bond” on line 17a. On April

10, 2024, Issuer F knows the interest payment amount for the

July 1, 2024, interest payment date for the variable rate BABs

and files a separate Form 8038-CP and checks the box for

“Fixed rate bond” on line 17a.

Example. In November 2010, Issuer G issued variable rate

BABs. Interest on the bonds is paid on the first day of each

month at an interest rate based upon a set formula and the

interest rate is reset every month pursuant to the formula. Issuer

F elected to receive a refundable credit under former section

6431 for the bonds and filed a single Form 8038-B for the bonds.

On January 10, 2024, Issuer G files a Form 8038-CP for the

October 1, 2023, the November 1, 2023, and December 1, 2023,

interest payment dates for the bonds and checks the box for

“Variable rate bond” on line 17a.

Line 17b. For BABs and RZEDBs, enter the total issue price for

the bond listed on Form 8038-B, Part III, line 3, filed for the bond

issue. For specified tax credit bonds, enter the total issue price

for the bond listed on Form 8038-TC, Part III, line 1, filed for the

bond issue. The issue price used for purposes of Form 8038-CP

doesn’t change. Continue to use the issue price originally

reported on Form 8038-B or Form 8038-TC even if some of the

bonds are no longer outstanding. Use the issue price reported

on Form 8038-B or Form 8038-TC even if you are required by

these instructions to file separate Forms 8038-CP for different

interest rate structures (for example, for fixed and variable rate

bonds of the same bond issue).

Example. In September 2010, Issuer C sold at par

$15,000,000 of fixed rate BABs with a final maturity date of

September 1, 2030, and $5,000,000 of variable rate BABs with a

final maturity date of September 1, 2025, payable from the same

taxes using the same official statement. Issuer C elected to

receive a refundable credit under former section 6431 for the

bonds and filed a single Form 8038-B for the bonds. The issue

price for the bonds was reported on Form 8038-B, Part III, line 1,

as $20,000,000.

In January 2022, Issuer C files separate Forms 8038-CP for

the fixed rate BABs and the variable rate BABs but uses the total

issue price of $20,000,000 on the Form 8038-CP filed for the

fixed rate BABs and on the Form 8038-CP filed for the variable

rate BABs.

On March 1, 2022, Issuer C retires the fixed rate BABs. In

January 2024, Issuer C files a Form 8038-CP with respect to the

variable rate BABs. Issuer C must continue to use the issue price

originally reported on Form 8038-B ($20,000,000) even though

only $5,000,000 of variable rate BABs is still outstanding.

Line 17c. Identify the type of bonds by entering the

corresponding three-digit code number as follows.

• 102—New clean renewable energy bonds.

• 103—Qualified energy conservation bonds.

• 104—Qualified zone academy bonds.

• 105—Qualified school construction bonds.

• 109—Build America bonds.

• 110—Recovery zone economic development bonds.

A failure to provide requested information or providing

incorrect information could delay processing of this

CAUTION return or otherwise affect normal processing. Do not

leave line 10, 12, 13, 14, 17a, 17b, or 17c blank.

!

Part III—Payment of Credit

Line 18. Enter the interest payment date to which the requested

refundable credit payment relates. An interest payment date is

the date on which interest is payable by the issuer to the holders

of the bonds. This may include a date on which all the bonds are

retired earlier than maturity if interest is to be paid on that date.

Only when filing a final return for the bonds may the interest

payment date differ from the debt service schedule on record

with the IRS. (For variable rate bonds with the amount of interest

payable not known at least 45 days before the interest payment

date, enter the last interest payment date applicable to the

quarterly period to which this return relates.) For certain variable

5

rate bonds, the remarketing date or the date the interest rate is

reset may not be the same date the interest is paid.

Line 19a. Enter the amount of interest payable to the holders of

the bonds on the interest payment date. The amount entered on

line 19a can only relate to the interest payable on a single bond

issue and the amount of interest allocable to a single type of

bond (BAB, RZEDB, or a single type of specified tax credit bond)

and similar interest rate structure (fixed or variable rate). (See

What To File, earlier.)

Note. Credit payments are not allowed for preissuance accrued

interest.

Line 19b. For specified tax credit bonds only, enter the

applicable credit rate. The applicable credit rate is the daily tax

credit bond rate set by the Secretary under section 54A(b)(3),

determined as of the first day on which there is a binding written

contract for the sale or exchange of the bond. See Notice

2009-15, which is on page 449 of Internal Revenue Bulletin

2009-6 at IRS.gov/pub/irs-irbs/irb09-06.pdf. Enter the percent

out to two decimal places, and do not round (for example, for

credit rate 10.746%, enter 10.74%). The tax credit bond rate is

published by the Bureau of Fiscal Service on its Government

Section Internet site at TreasuryDirect.gov. The applicable credit

rate should be the applicable credit rate listed on Form 8038-TC,

Part III, line 4, filed for the bond issue.

Line 19c. For NCREBs, QECBs, QZABs, and QSCBs,

complete Schedule A and enter the amount from line 3 of

Schedule A.

Note. You can only have one entry on line 20 (a through f).

Line 20a. For BABs, enter the amount of the requested credit

payment relating to the interest payable on the interest payment

date. The amount reported on line 20a must equal 35% (0.35) of

the amount reported on line 19a.

Line 20b. For RZEDBs, enter the amount of the requested

credit payment relating to the interest payable on the interest

payment date. The amount reported on line 20b must equal 45%

(0.45) of the amount reported on line 19a.

Line 20c. For NCREBs, enter the smaller of line 19a or line 19c.

Line 20d. For QECBs, enter the smaller of line 19a or line 19c.

Line 20e. For QZABs, enter the smaller of line 19a or line 19c.

Note. Issuers issuing QZABs pursuant to an allocation of 2011

or later national QZAB limitation (volume cap) can’t make a valid

election to issue such bonds as specified tax credit bonds and

may not claim a refundable credit under former section 6431 by

filing Form 8038-CP.

Line 20f. For QSCBs, enter the smaller of line 19a or line 19c.

Lines 21a and 21b. Either line 21a or line 21b is available to

correct your prior mistakes on prior filings of Form 8038-CP for

the respective bonds.

• If a prior credit payment amount was received that was less

than the correct amount, then enter the amount on line 21a that

relates to the corresponding increase to this payment request.

• If a prior credit payment amount was received that exceeded

the correct amount for that payment, then enter the amount on

line 21b that relates to the corresponding decrease to this

payment request.

• If there are both increase and decrease adjustments related to

multiple prior payments, then net the amounts and include the

corresponding amount on either line 21a (for net increases) or

21b (for net decreases), as appropriate.

If any amount is entered on either line 21a or 21b, complete

line 21c.

6

Line 21c. Enter the applicable three-digit explanation code

number and provide the applicable interest payment dates in

MM/DD/YYYY format.

• 211—Erroneous entry on prior return(s) (for example,

typographical error or input error or incorrect debt service

schedule date used. (Also, list applicable interest payment

date(s).)

• 212—Math error on prior return(s). (Also, list applicable

interest payment date(s).)

• 213—Claimed interest on prior return(s) on bonds previously

redeemed. (Also, list applicable interest payment date(s).)

• 214—Claimed interest on prior return(s) on bonds previously

legally defeased. (Also, list applicable interest payment date(s).)

• 219—Other. Use this three-digit code if codes 211–214 do not

apply or if more than one three-digit code is applicable. (Also, list

applicable explanation(s) for the correction(s) including listing

prior interest payment date(s) affected and details of any net

amount.)

Note. Codes 215–218 are reserved and should not be used.

If a three-digit explanation code number is not entered, the

credit payment could be delayed or normal processing could

otherwise be affected. For electronic filing, the dates or

explanation for “Other” is entered electronically. For paper filing,

attach to the return the requested information on a single

explanation document and label it “Line 21c Information.” Include

the issuer name, EIN, interest payment date, and report number

on the paper attachment.

Line 22. Enter the amount of the credit payment requested.

Combine the amount on line 20a, 20b, 20c, 20d, 20e, or 20f with

the amount on either line 21a or 21b, as applicable.

Note. If an amount of the credit payment requested is required

to be offset against other outstanding taxes or obligations, then

the credit payment to be received could be less than the amount

on line 22. For more information, see Notices 2009-26 and

2010-35.

Line 23a. Check “Yes” or “No.” Check “Yes” if the amount shown

on line 20a, 20b, 20c, 20d, 20e, or 20f does not equal the

amount of the credit payment shown on the debt service

schedule attached to the information return for the bonds filed

with the IRS (Form 8038-TC or Form 8038-B), or the latest

revised debt service schedule subsequently filed with the IRS, or

when the amount of qualified principal outstanding or qualified

interest payable on future dates will vary from amounts

previously reported to the IRS. For variable rate bonds, check

“Yes” if there is a change in interest payment dates, the total

principal amount of qualified bonds expected to be outstanding

on payment dates, or the method for determining interest on the

bonds. Situations where you must check “Yes” for fixed and

variable rate bonds include (a) early retirement or defeasance of

bonds, (b) treating a portion of the bonds as nonqualified under

Rev. Proc. 2018-26, (c) reissuance of bonds because of a

significant modification under Regulations section 1.1001-3 or

other guidance, or (d) the debt service schedule has otherwise

changed or been altered so that the debt service schedule you

most recently filed with the IRS is no longer accurate.

Line 23b. If you checked “Yes” on line 23a, enter one applicable

three-digit explanation code number and provide the revised

debt service schedule. If a three-digit explanation code number

is not entered, the credit payment could be delayed or normal

processing could otherwise be affected. Where indicated,

provide the applicable dates in MM/DD/YYYY format and the

applicable amounts.

Note. If the changes result from the issuer’s nonqualified use of

bond proceeds and taking a remedial action under section 6 of

Rev. Proc. 2018-26, the issuer must enter the three-digit

explanation code 235 on the Form 8038-CP filed for the first

interest payment date after the nonqualified use of the bond

proceeds occurs. The issuer must also (a) provide the date of

the nonqualified use and the amount of nonqualified use, and (b)

attach a revised debt service schedule reflecting the exclusion of

amounts allocable to the nonqualified bonds beginning with the

date of the nonqualified use.

• 231—Retirement of all or part of the bonds. (Also, provide the

date and amount redeemed/retired.)

• 232—Correction of mistake in most recently filed debt service

schedule.

• 233—Closing Agreement with IRS. (Also, provide the date of

agreement.)

• 234—Legal defeasance of bonds. (Also, provide the date and

amount legally defeased.)

• 235—Remedial action under Rev. Proc. 2018-26. (Also,

provide the date of nonqualified use and amount of nonqualified

bonds.)

• 239—Other. Use this three-digit code if codes 231–235 do not

apply or if more than one three-digit code is applicable. (Also,

provide an explanation including relevant dates and principal

amounts.)

Note. Codes 236–238 are reserved and should not be used.

For electronic filing, the dates and amounts to be provided,

and the explanation for “239—Other” are entered electronically.

For paper filing, attach to the return the requested information

and label it “Line 23b Information.” Also include the issuer name,

EIN, interest payment date, and report number on the paper

attachment.

Requirements for revised debt service schedule. The debt

service schedule must contain the information described below

for the bonds.

1. Name of issuer.

2. EIN of issuer.

3. Report number (see instructions for line 10).

4. Name of issue.

5. Date of issue.

6. CUSIP number (see instructions for line 14).

7. Issue price (see instructions for line 17b).

8. For fixed rate bonds, a revised debt service schedule

through final maturity that provides a list of each interest

payment date, the total interest payable on such date, the total

principal amount of qualified bonds expected to be outstanding

on such date, the interest rate(s), the refundable credit payment

expected to be requested from the IRS, as allowed under former

section 6431(f) on such date, and the earliest date that the

qualified bonds can be called.

9. For variable rate bonds, a revised debt service schedule

through final maturity that provides a list of each interest

payment date, the total principal amount of qualified bonds

expected to be outstanding on such date, and a description of

how interest on the qualified bonds is figured. However, if the

issuer knows the interest amount for a certain period, for that

period the issuer should provide the refundable credit payment

expected to be requested from the IRS, as allowed under former

section 6431(f).

10. The revised debt service schedule described in (8) or (9)

above must be provided as a separate document labeled

“Revised Debt Service Schedule.” For electronic filing, the

revised debt service schedule must be a separate PDF

document submitted with the return. For paper filing, attach it to

the return.

Line 24a. Check “Yes” if, as of the filing of this form, you paid or

reasonably expect to pay all of the interest to bondholders

reported on line 19a on or before the interest payment date

reported on line 18. If you paid or reasonably expect to pay all of

the interest on the next business day because the interest

payment date falls on a weekend or holiday, you should check

“Yes.”

Check “No” if, as of the filing of this form, you did not pay or

do not reasonably expect to pay all of the interest to bondholders

reported on line 19a on or before the date reported on line 18,

representing the interest payment date to which this payment of

credit relates.

Line 24b. If you checked “No” on line 24a, enter the three-digit

code number concerning the circumstances surrounding the

nonpayment or expected nonpayment. If a three-digit

explanation code is not entered, the credit payment could be

delayed or normal processing could otherwise be affected.

Provide any applicable dates in MM/DD/YYYY format and the

applicable amounts where requested and provide an explanation

if “249—Other” applies.

• 241—Insolvent, no receivership or bankruptcy proceedings.

• 242—Insolvency, receivership or bankruptcy proceedings in

progress.

• 243—Insolvency, receivership or bankruptcy proceedings

discharged debt. (Also, provide the date, the amount

discharged, and any change in interest rates.)

• 244—Insufficient payment sources due to sequestration—no

receivership proceedings.

• 245—Insufficient payment resources for reasons other than

sequestration—no receivership proceedings.

• 249—Other. (Also, provide an explanation.)

Note. Codes 246–248 are reserved and should not be used.

For electronic filing, any dates, amounts or explanation for

“Other” is entered electronically. For paper filing, attach to the

return the requested information and label it “Line 24b

Information.” Also include the issuer name, EIN, interest payment

date, and report number on the paper attachment.

Line 25. Check “Yes” or “No.” If a box is not checked, credit

payments may be delayed.

Check “Yes” if the requested payment is for the final interest

payment date for the bonds. The final payment of interest for the

bonds is the last payment of interest prior to, or in conjunction

with, the final maturity, redemption, or significant modification of

the bond issue.

Check “No” if future Forms 8038-CP are expected to be filed

with respect to future interest payment dates on the bonds

(same bond issue, same type of bond, and same interest rate

structure (fixed rate or variable rate)).

Reminder: Each type of bond requires a distinct report

number and each interest rate structure requires a distinct report

number. See the instructions for line 10, earlier.

Line 26. Complete lines 26a through 26c if you want the amount

shown on line 22 directly deposited into a checking or savings

account. Otherwise, we will send a check to the entity listed in

Part I.

The IRS is not responsible for a lost credit payment if

you enter the wrong account information. Check with

CAUTION your financial institution to get the correct ACH routing

and account numbers and to make sure your direct deposit will

be accepted. Other wire instructions or routing or account

numbers other than ACH routing or account numbers are not

acceptable substitutes for ACH routing and account numbers on

Form 8038-CP.

!

If the amount of the direct deposit to the designated account is

different from the amount you expected, you will receive an

explanation in the mail about 2 weeks after your credit payment

is deposited.

Line 26a. The ACH routing number must be nine digits. The first

two digits must be 01 through 12 or 21 through 32. Otherwise,

7

the direct deposit will be rejected and a check will be sent

instead. If the entity listed in Part I is not the issuer (such as a

trustee bank), ask that entity for the correct routing number. (See

Where the Requested Payment Will Be Sent, earlier.)

Line 26b. Check the appropriate box for the type of account. Do

not check more than one box. If unknown, leave blank.

Line 26c. The ACH account number can be up to 17 characters

(both numbers and letters). Include hyphens but omit spaces

and special symbols. Enter the number from left to right and

leave any unused boxes blank.

Signature and Consent

An officer of the issuer with authority to bind the issuer must sign

Form 8038-CP and any applicable certification. If the entity listed

in Part I is not the issuer, the authority of the person signing this

return must include the authority to bind the issuer, the authority

to request that the IRS send the refundable credit payment to the

entity identified in Part I, and the authority to consent to the

disclosure of return information necessary to process the

refundable credit payment to the designated contact person(s)

listed in Parts I and II on Form 8038-CP, as applicable. Also print

the name and title of the person signing Form 8038-CP.

Note. If the issuer designates on line 5 of Part I or line 15 of Part

II a person other than an officer of the issuer as a contact person

for the IRS to call for more information, by signing this return the

issuer's authorized representative consents to the disclosure of

the issuer's return information to such person, as necessary to

process the refundable credit payment.

Paid Preparer

If an authorized officer of the issuer filled in this return, the paid

preparer block should remain blank. Anyone who prepares the

return but does not charge the issuer should not sign the return.

Certain others who prepare the return should not sign. For

example, a regular, full-time employee of the organization, such

as a clerk, secretary, etc., should not sign.

Generally, anyone who is paid to prepare a return must sign it

and fill in the other blanks in the Paid Preparer Use Only area of

the return. A paid preparer can’t use a social security number in

the preparer tax identification number (PTIN) box. The paid

preparer must use a PTIN. If the paid preparer is self-employed,

the preparer should enter his or her address in the box.

The paid preparer must:

• Sign the return in the space provided for the preparer's

signature, and

• Give a copy of the return to the issuer.

General Information

How to get faster payments.

• File early.

1. The IRS accepts Form 8038-CP 45 days before the return

due date (but no more than 90 days before the interest payment

date for fixed rate bonds).

2. Filing electronic or paper returns on the due date doesn’t

permit sufficient time to make a timely payment if there are

mistakes on the return or correspondence is needed to verify

information.

• File an electronic return.

• Make sure the correct version of a paper return is used

(January 2022).

8

• Ensure that contact persons listed on lines 5 and 15 are

familiar with the information on the return and can answer

questions from the IRS.

• Failure to provide a contact person easily reachable by

telephone may delay processing of this return or otherwise affect

normal processing.

• Use direct deposit (line 26).

• Make sure to enter a valid report number on line 10. See

instructions for line 10.

Avoid common mistakes.

• Make sure to attach a revised debt service schedule when

you checked “Yes” on line 23a.

Phone help.

• For questions regarding this form, please call the Tax-Exempt

Bonds Customer Service at 877-829-5500.

Instructions for Schedule A

When Is Schedule A Required?

Schedule A is used to compute the amount of the refundable

credit payment allowed under former section 6431(f) and must

be completed for all specified tax credit bonds (NCREBs,

QECBs, QZABs, and QSCBs). Computation of the credit

payment is done on a bond-by-bond basis (usually, this means a

separate computation for each maturity in a bond issue, but

bonds with the same maturity but different terms such as interest

rate are also considered separate bonds). Schedule A

eliminates the need for issuers of NCREBs and QECBs to file

separate Forms 8038-CP for each maturity of bonds on each

interest payment date.

For NCREBs and QECBs, the amount of the refundable credit

payment is the lesser of 100% of the amount of interest payable

under the bond on such interest payment date or 70% (0.70) of

the amount of interest which would have been payable under

such bond on such date if such interest were determined at the

applicable credit rate determined under section 54A(b)(3).

For QZABs and QSCBs, the amount of the refundable credit

payment is the lesser of 100% of the amount of interest payable

under the bond on such interest payment date or 100% of the

amount of interest which would have been payable under such

bond on such date if such interest were determined at the

applicable tax credit bond rate determined under section 54A(b)

(3).

Specific Instructions

Enter the following from Form 8038-CP.

• Issuer name—From Part II, line 7.

• EIN—From Part II, line 8.

• Report number—From Part II, line 10.

• Interest payment date (MM/DD/YYYY)—From Part III, line 18.

The Schedule A table is used to compute the amount of the

permitted credit for an interest payment date. Complete the table

as follows for the interest payment date entered on Part III,

line 18, of Form 8038-CP to compute the sum to be entered on

line 1.

!

If you use page 2 to list maturities, complete line 4 on

page 2 before completing lines 2 and 3.

CAUTION

1. Column (a): List the maturity date (MM/DD/YYYY) for

each separate maturity of the bonds. (A maturity is comprised of

bonds of the same type, principal maturity date, and interest

rate.)

Note. If there are insufficient lines on page 1 of Schedule A for

all the maturities, list the remaining maturities on page 2 of

Schedule A.

2. Column (b): Enter the amount of interest payable on the

bonds maturing on the date listed in column (a) on the interest

payment date entered on Part III, line 18, of Form 8038-CP.

3. Column (c): Enter the amount of interest that would be

payable on the bonds maturing on the date listed in column (a)

on the interest payment date entered on Part III, line 18, of Form

8038-CP if calculated using the applicable credit rate (Form

8038-CP, Part III, line 19b).

4. Column (d): For NCREBs and QECBs, enter 70% of the

amount of interest that would be payable on the bonds maturing

on the date listed in column (a) on the interest payment date

entered on Part III, line 18, of Form 8038-CP if calculated using

the applicable credit rate (Form 8038-CP, Part III, line 19b). Do

this by multiplying the column (c) amount by 0.70.

Note. For QZABs and QSCBs, skip column (d).

5. Column (e): For NCREBs and QECBs, enter the smaller

of the amount in column (b) and the amount in column (d). For

QZABs and QSCBs, enter the smaller of the amount in column

(b) and the amount in column (c).

Line 1. Total the amounts in column (e) on page 1 of

Schedule A and enter the total.

Line 2. Enter the amount from page 2 of Schedule A, line 4 (if

any). See the line 4 instructions below.

Line 3. Add amounts from line 1 and line 2. Enter on Form

8038-CP, line 19c.

column (e) on page 2 of Schedule A (if any). Enter on page 1 of

Schedule A, line 2.

Completion of Schedule A for QZABs and QSCBs.

Schedule A is completed the same way for both QZABs and

QSCBs. With respect to each bond in the bond issue, issuers of

QZABs and QSCBs filing Form 8038-CP request the lesser of:

1. The amount of interest payable on the interest payment

date, or

2. The amount of interest that would be payable on the

interest payment date if calculated using the applicable credit

rate.

Example for QZABs and QSCBs. On November 9, 2010,

Issuer D sold $30,000,000 of fixed rate QSCBs, and elected to

receive a refundable credit under former section 6431. The

interest on the QSCBs is payable semiannually on January 15

and July 15 of each year. The interest rate on $10,000,000 of

QSCBs maturing on January 15, 2026, is 5.25%. The interest

rate on $10,000,000 of QSCBs maturing on January 15, 2027, is

5.30%. The interest rate on $10,000,000 of QSCBs maturing on

January 15, 2028, is 5.35%. The applicable credit rate for

qualified tax credit bonds sold on November 9, 2010, is 5.30%.

The amount of interest payable on the QSCBs on January 15,

2025, and the amount of interest that would be payable on the

QSCBs on that date using the applicable credit rate is shown in

the following tables.

Line 4. If you use page 2, complete line 4 on page 2 before

completing lines 1, 2, and 3 of Schedule A. Add amounts in

Interest Payable on the QSCBs on January 15, 2025

Bond Maturity Date

Amount of QSCBs Outstanding

Bond Interest Rate

Semiannual Interest Payable on

January 15, 2025, at the Bond

Interest Rate

01/15/2026

$10,000,000

5.25%

$262,500.00

01/15/2027

$10,000,000

5.30%

$265,000.00

01/15/2028

$10,000,000

5.35%

$267,500.00

Interest That Would Be Payable on the QSCBs Using the Applicable Credit Rate

Bond Maturity Date

Amount of QSCBs Outstanding

Applicable Credit Rate

Semiannual Interest Using the

Applicable Credit Rate

01/15/2026

$10,000,000

5.30%

$265,000.00

01/15/2027

$10,000,000

5.30%

$265,000.00

01/15/2028

$10,000,000

5.30%

$265,000.00

For the January 15, 2025, interest payment date for the QSCBs, Issuer D completes Schedule A as follows.

(a)

(b)

(c)

(d)

(e)

Bond Maturity Date

Interest payable on

line 18 (Form 8038-CP,

Part III) interest

payment date

Interest that would be payable

on bond maturity on line 18

(Form 8038-CP, Part III) interest

payment date calculated using

the line 19b (Form 8038-CP, Part

III) applicable credit rate

For NCREBs and QECBs,

multiply column (c) by 70%

(0.70) (skip this column for

QZABs and QSCBs).

For NCREBs and QECBs, enter

the smaller of column (b) or

(d). For QZABs and QSCBs,

enter the smaller of column (b)

or (c).

01/15/2026

$262,500.00

$265,000.00

$262,500.00

01/15/2027

$265,000.00

$265,000.00

$265,000.00

01/15/2028

$267,500.00

$265,000.00

$265,000.00

9

Completion of Schedule A for NCREBs and QECBs.

Schedule A is completed the same way for both NCREBs and

QECBs. With respect to each bond in the issue, issuers of

NCREBs and QECBs filing Form 8038-CP request the lesser of:

1. The amount of interest payable on the interest payment

date, or

2. 70% of the amount of interest that would be payable on

the interest payment date using the applicable credit rate.

Example for NCREBs and QECBs. On November 9, 2010,

Issuer E sold $30,000,000 of fixed rate QECBs, and elected to

receive a refundable credit under former section 6431. The

interest on the QECBs is payable semiannually on January 15

and July 15 of each year. The interest rate on $10,000,000 of

QECBs maturing on January 15, 2026, is 5.25%. The interest

rate on $10,000,000 of QECBs maturing on January 15, 2027, is

5.30%. The interest rate on $10,000,000 of QECBs maturing on

January 15, 2028, is 5.35%. The applicable credit rate for

qualified tax credit bonds sold on November 9, 2010, is 5.30%.

The amount of interest payable on the QECBs on July 15, 2025,

and the amount of interest that would be payable on the QECBs

on that date using the applicable credit rate is shown in the

following tables.

Interest Payable on the QECBs on July 15, 2025

Bond Maturity Date

Amount of QECBs Outstanding

Bond Interest Rate

Semiannual Interest Payable on

July 15, 2025, at the Bond Interest

Rate

01/15/2026

$10,000,000

5.25%

$262,500.00

01/15/2027

$10,000,000

5.30%

$265,000.00

01/15/2028

$10,000,000

5.35%

$267,500.00

Interest That Would Be Payable on the QECBs Using the Applicable Credit Rate

Bond Maturity Date

Amount of QECBs Outstanding

Applicable Credit Rate

Semiannual Interest Using the

Applicable Credit Rate

01/15/2026

$10,000,000

5.30%

$265,000.00

01/15/2027

$10,000,000

5.30%

$265,000.00

01/15/2028

$10,000,000

5.30%

$265,000.00

For the July 15, 2025, interest payment date for the QECBs, Issuer E completes Schedule A as follows.

(a)

(b)

(c)

(d)

(e)

Bond Maturity Date

Interest payable on

line 18 (Form 8038-CP,

Part III) interest

payment date

Interest that would be payable on

bond maturity on line 18 (Form

8038-CP, Part III) interest

payment date calculated using

the line 19b (Form 8038-CP, Part

III) applicable credit rate

For NCREBs and QECBs,

multiply column (c) by 70%

(0.70) (skip this column for

QZABs and QSCBs).

For NCREBs and QECBs,

enter the smaller of column

(b) or (d). For QZABs and

QSCBs, enter the smaller of

column (b) or (c).

01/15/2026

$262,500.00

$265,000.00

$185,500.00

$185,500.00

01/15/2027

$265,000.00

$265,000.00

$185,500.00

$185,500.00

01/15/2028

$267,500.00

$265,000.00

$185,500.00

$185,500.00

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.

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.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated burden

for tax-exempt organizations filing this form is approved under

OMB control number 1545-0047 and is included in the estimates

shown in the instructions for their information return.

10

Comments and suggestions. We welcome your comments

concerning the accuracy of these time estimates or suggestions

for future editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue

Service, Tax Forms and Publications, 1111 Constitution Ave.

NW, IR-6526, Washington, DC 20224.

Although we can't respond individually to each comment

received, we do appreciate your feedback and will consider your

comments and suggestions as we revise our tax forms,

instructions, and publications.

Don’t send Form 8038-CP to this address. Instead, see

Where To File, earlier.