Instructions for Form 8038

Instructions for Form 8038

(Rev. September 2025)

Information Return for Tax-Exempt Private Activity Bond Issues

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 8038 and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form8038.

What’s New

Exempt facility bonds for spaceports were added by P.L.

119-21. See Exempt facility bond, later, for more

information. Also, see new instructions for Line 11a and

Line 11q.

General Instructions

Purpose of Form

Form 8038 is used by the issuers of tax-exempt private

activity bonds to provide the IRS with the information

required by section 149 and to monitor compliance with

the requirements of sections 141 through 150.

Who Must File

Issuers must file a separate Form 8038 for each issue of

the following tax-exempt private activity bonds issued after

1986.

• Exempt facility bonds.

• Qualified mortgage bonds.

• Qualified veterans' mortgage bonds.

• Qualified small issue bonds.

• Qualified student loan bonds.

• Qualified redevelopment bonds.

• Qualified hospital bonds.

• Qualified 501(c)(3) bonds.

• Nongovernmental output property bonds.

• All other tax-exempt private activity bonds.

When To File

File Form 8038 by the 15th day of the 2nd calendar month

after the close of the calendar quarter in which the bond

was issued. Form 8038 may not be filed before the issue

date and must be completed based on the facts as of the

issue date.

Late filing. An issuer may be granted an extension of

time to file Form 8038 under section 3 of Rev. Proc.

2002-48, 2002-37 I.R.B. 531, if it is determined that the

failure to file timely is not due to willful neglect. Type or

print at the top of the form, “Request for Relief under

section 3 of Rev. Proc. 2002-48.” Attach to the Form 8038

a letter explaining why Form 8038 was not filed on time.

Also indicate whether the bond issue in question is under

examination by the IRS. Do not submit copies of the trust

indenture or other bond documents. See Where To File

next.

Sep 23, 2025

Where To File

File Form 8038 and any attachments at the following

address.

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201

Private delivery services. You can use certain private

delivery services (PDS) designated by the IRS to meet the

“timely mailing as timely 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 PDS,

go to IRS.gov/PDSstreetAddresses.

Caution: PDS 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 address.

Other Forms That May Be Required

For tax-exempt bonds other than private activity bonds,

use Form 8038-G, Information Return for Tax-Exempt

Governmental Bonds, or Form 8038-GC, Information

Return for Small Tax-Exempt Governmental Bond Issues,

Leases, and Installment Sales.

Bonds described in section 1312(c) of the Tax Reform

Act of 1986 to which the transitional rules in section 1312

or 1313 apply are not private activity bonds for purposes

of information reporting. Report them on Form 8038-G or

Form 8038-GC.

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.

Rounding Off to Whole Dollars

You may show the money items on this return as

whole-dollar amounts. To round, drop amounts under 50

cents and increase amounts from 50 to 99 cents to the

next dollar (for example, $1.49 becomes $1 and $2.50

becomes $3). If two or more amounts must be added to

figure the amount to enter on a line, include cents when

adding the amounts and round off only the total.

Definitions

Tax-exempt bond. This is any obligation on which the

interest is excluded from gross income under section 103.

Taxable bond. This is any obligation the interest on

which isn’t excludable from gross income under section

103. Taxable bonds include tax credit bonds and direct

pay bonds.

Instructions for Form 8038 (Rev. 9-2025) Catalog Number 49974V

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

Private activity bond. This includes a bond issued as

part of an issue in which:

• More than 10% of the proceeds are to be used for any

private business use; and

• More than 10% of the payment of principal or interest

of the issue is either (a) secured by an interest in

property to be used for a private business use (or

payments for such property), or (b) to be derived from

payments for property (or borrowed money) used for a

private business use.

It also includes a bond, the proceeds of which (a) are to

be used (directly or indirectly) to make or finance loans

(other than loans described in section 141(c)(2)) to

persons other than governmental units, and (b) exceeds

the lesser of 5% of the proceeds or $5 million.

Exempt facility bond. This is part of an issue of which

95% or more of the net proceeds are to be used to finance

an exempt facility listed in sections 142(a)(1) through (17).

Exempt facility bonds include empowerment zone facility

bonds and enterprise zone facility bonds for use in

empowerment zones and enterprise communities,

respectively, and recovery zone facility bonds for use in

recovery zones.

Qualified mortgage bond. This is part of an issue:

1. Of which all proceeds (except issuance costs and

reasonably required reserves) are to be used to

finance owner-occupied residences,

2. That meets the requirements of subsections (c)

through (i) and (m)(7) of section 143,

3. That does not meet the private business tests of

sections 141(b)(1) and (2), and

4. For which repayments of principal on financing

provided by the issue (that are received more than 10

years after the date of issuance) are used to redeem

bonds that are part of the issue. Amounts of less than

$250,000 need not be used to redeem bonds under

this requirement.

Qualified veterans' mortgage bond. This is part of an

issue:

1. Of which 95% or more of the net proceeds are to be

used to provide residences for veterans;

2. For which the payment of the principal and interest is

secured by the general obligation of a state;

3. That meets the requirements of subsections (c), (g),

(i)(1), and (l) of section 143; and

4. That does not meet the private business tests of

sections 141(b)(1) and (2).

Qualified small issue bond. This is part of an issue not

exceeding $1 million of which 95% or more of the net

proceeds are to be used to finance the following.

• Land or depreciable property to be used for

manufacturing, or subject to additional limitations,

farming purposes; or

• A redemption of a prior issue of qualified small issue

bonds.

2

Note: The $1 million limit can be increased to $10 million

if an election is made to take certain capital expenditures

into account. See section 144(a)(4).

Qualified student loan bond. This is part of an issue of

which:

1. 90% or more of the net proceeds are to be used to

make or finance student loans under a program of

general application to which the Higher Education Act

of 1965 applies (see section 144(b)(1)(A) for

additional requirements), or

2. 95% or more of the net proceeds are to be used to

make or finance student loans under a program of

general application approved by the state (see section

144(b)(1)(B) for additional requirements).

Qualified redevelopment bond. This is generally part of

an issue of which 95% or more of the net proceeds are to

be used for one or more redevelopment purposes in any

designated blighted area. See section 144(c) for specific

requirements.

Qualified 501(c)(3) bond. This is any private activity

bond that meets the following conditions.

1. All property financed by the net proceeds of the bond

issue is to be owned by a section 501(c)(3)

organization or a governmental unit.

2. The bond would not be a private activity bond if (a)

section 501(c)(3) organizations were treated as

governmental units with respect to their activities that

do not constitute unrelated trades or businesses

(determined by applying section 513(a)); and (b) the

private activity bond definition was applied using a 5%

threshold (instead of 10%) for the private use,

security, and/or payment tests, and the activities that

constitute unrelated trades or businesses are

aggregated with any other private use, security, or

payment and by substituting “net proceeds” (instead

of proceeds) each place it appears.

A qualified 501(c)(3) bond includes the following.

• Qualified hospital bond that is part of an issue of

which 95% or more of the net proceeds are to be used

for a hospital. See section 145(c).

• Qualified nonhospital bond that is other than a

qualified hospital bond. In general, an organization

cannot have more than $150 million of qualified 501(c)

(3) nonhospital bonds. However, the limit does not

apply to bonds issued after August 5, 1997, if 95% or

more of the net proceeds of the issue are to be used

solely for capital expenditures incurred after that date.

See section 145(b).

Restrictions apply to the use of qualified 501(c)(3)

bonds (both hospital and nonhospital) to provide

residential rental housing. See section 145(d).

Note: Interest on any bond issued after December 31,

2017, to advance refund a tax-exempt bond is not

excluded from gross income.

Issue price. The issue price of bonds is generally

determined under Regulations section 1.148-1(f). Thus,

when issued for cash, the issue price is the first price at

which a substantial amount of the bonds are sold to the

Instructions for Form 8038 (Rev. 9-2025)

public. To determine the issue price of a bond issued for

property, see sections 1273 and 1274 and the related

regulations.

Note: The issue price does not include interest from the

date the bonds are dated to the date of issue.

Issue. Generally, bonds are treated as part of the same

issue if they are issued by the same issuer, on the same

date, and in a single transaction, or series of related

transactions. See Regulations section 1.149(e)-1(e)(2).

Arbitrage rebate. Generally, interest on a state or local

bond is not tax exempt unless the issuer of the bond

rebates to the United States arbitrage profits earned from

investing proceeds of the bond in higher yielding

nonpurpose investments. See section 148(f).

Construction issue. This is an issue of tax-exempt

bonds that meets both of the following conditions.

1. At least 75% of the available construction proceeds

are to be used for construction expenditures with

respect to property to be owned by a governmental

unit or a section 501(c)(3) organization.

2. All the bonds that are part of the issue are qualified

501(c)(3) bonds, bonds that are not private activity

bonds, or private activity bonds issued to finance

property to be owned by a governmental unit or a

section 501(c)(3) organization.

In lieu of rebating any arbitrage that may be owed to the

United States, the issuer of a construction issue may

make an irrevocable election to pay a penalty. The penalty

is equal to 11/2% of the amount of construction proceeds

that do not meet certain spending requirements. See

section 148(f)(4)(C)(vii) and the Instructions for Form

8038-T.

the IRS and whom the IRS may contact with respect to

this return (including in writing or by telephone), enter the

name of such person here. The person listed in line 3a

must be an individual. Do not enter the name and title of

an officer or other employee of the issuer here (use

line 10a for that purpose).

Note: By authorizing a person other than an authorized

officer or other employee of the issuer to communicate

with the IRS and whom the IRS may contact with respect

to this return, the issuer authorizes the IRS to

communicate directly with the individual entered on

line 3a and consents to disclose the issuer's return

information to that individual, as necessary, in order to

process this return.

Lines 4 and 6. If you listed in line 3a a person other than

an officer or other employee of the issuer (including a

legal representative or paid preparer) to communicate with

the IRS and whom the IRS may contact with respect to

this return, enter the number and street (or P.O. box if mail

is not delivered to street address), city, town, or post

office, state, and ZIP code of that person. Otherwise,

enter the issuer's number and street (or P.O. box if mail is

not delivered to street address), city, town, or post office,

state, and ZIP code.

Note: The address entered on lines 4 and 6 is the

address the IRS will use for all written communications

regarding the processing of this return, including any

notices.

Line 5. This line is for IRS use only. Do not make an entry.

Line 7. The date of issue is generally the first date on

which the issuer physically exchanges any bond included

in the issue for the underwriter's (or other purchaser's)

funds.

Specific Instructions

Line 8. If there is no name of the issue, please provide

other identification of the issue.

Part I—Reporting Authority

Line 9. Enter the CUSIP (Committee on Uniform

Securities Identification Procedures) number of the bond

with the latest maturity. If the issue does not have a CUSIP

number, write “None.”

Amended return. An issuer may file an amended return

to change or add to the information reported on a

previously filed return for the same date of issue. If you are

filing to correct errors or change a previously filed return,

check the “Amended Return” box in the heading of the

form.

The amended return must provide all the information

reported on the original return, in addition to the new or

corrected information. Attach an explanation of the reason

for the amended return.

Line 1. The issuer's name is the name of the entity

issuing the bonds, not the name of the entity receiving the

benefit of the financing.

Line 2. An issuer that does not have an employer

identification number (EIN) should apply online by visiting

the IRS website at IRS.gov/EIN. The organization may

also apply for an EIN by faxing or mailing Form SS-4 to the

IRS.

Line 3a. If the issuer wishes to authorize a person other

than an officer or other employee of the issuer (including a

legal representative or paid preparer) to communicate with

Instructions for Form 8038 (Rev. 9-2025)

Line 10a. Enter the name and title of the officer or other

employee of the issuer whom the IRS may call for more

information. If the issuer wishes to designate a person

other than an officer or other employee of the issuer

(including a legal representative or paid preparer) whom

the IRS may call for more information with respect to the

return, enter the name, title, and telephone number of

such person on lines 3a and 3b.

Caution: Complete lines 10a and 10b even if you

complete lines 3a and 3b.

Part II—Type of Issue

Caution: Elections referred to in Part II are made on the

original bond documents, not on this form.

You must identify the type of bonds issued by entering

the issue price in the box corresponding to the type of

bond (see Issue price under Definitions, earlier). Also

enter information on line 20b, Reissuance, if applicable.

3

Line 11a. Only the issue price of bonds financing an

airport is reported on this line. Spaceport bonds

authorized by section 142(a)(1) must be reported on

line 11q. See instructions for Line 11q.

Line 11f. After entering the issue price, check the

appropriate box for the percentage test elected by the

issuer at the time of issuance of the bonds. Then, check

the appropriate box to show whether an election was

made for deep rent skewing. See Rev. Rul. 94-57, 1994-2

C.B. 5, for guidance on figuring the income limits

applicable to these bonds.

Line 11h. Bonds issued to finance certain facilities may

also qualify as exempt facility bonds if they were (a)

permitted as exempt facility bonds under prior law, and (b)

issued under one of the transitional rules of the Tax

Reform Act of 1986 (the 1986 Act).

These facilities include . . .

As described in

former section . . .

A sports facility

103(b)(4)(B)

A convention or trade show facility

103(b)(4)(C)

A parking facility

103(b)(4)(D)

A pollution control facility

103(b)(4)(F)

A hydroelectric facility

103(b)(4)(H)

An industrial park

103(b)(5)

If one of the above applies, indicate the facility type and

then give the specific provision of the 1986 Act pertaining

to the facility on line 11h.

Facility types include . . .

As described in

section . . .

Environmental enhancements of

hydroelectric generating facilities

142(a)(12) and 142(j)

High-speed intercity rail facilities*

142(a)(11), 142(c), and

142(i)

*Note: Proceeds of an exempt facility bond may not be used for this type of

facility if there is a nongovernmental owner of the facility unless that owner

makes an irrevocable election not to claim (1) depreciation under section 167

or 168, or (2) any credit against its income tax with respect to the property

financed with the net proceeds of the issue.

Line 12b. This line is for IRS use only. Do not make an

entry.

Line 13. Check the box if the issuer has elected, in the

bond indenture or related document, to pay to the United

States the amount described in section 143(g)(3)(D).

Line 14. Enter the issue price if the bond issue is an

exempt issue of $10 million or less for which an election

under section 144(a)(4) has been made by the issuer at or

before the time of issuance on the bonds or in its records.

See section 144(a). Check the box if the $10 million small

issue exemption applies.

Line 17. Attach a schedule listing the name and EIN for

each section 501(c)(3) organization benefiting from these

qualified hospital bonds.

Line 18. Enter the total amount of qualified nonhospital

bonds described in section 145(b)(2) that are a part of this

issue. For each section 501(c)(3) organization benefiting

from these qualified nonhospital bonds, attach a schedule

listing:

Line 11i. Enter the issue price if the bonds are part of any

issue 95% or more of the net proceeds of which are to be

used to provide any enterprise zone facility in an

empowerment zone or enterprise community. See section

1394.

1. The name of the organization;

Line 11j. Enter the issue price if the bonds are (a) issued

after August 5, 1997, and (b) part of any issue 95% or

more of the net proceeds of which are to be used to

provide any empowerment zone facility. See section

1394(f).

The updated information on the designated urban

empowerment zones is available at www.hud.gov; for the

designated rural empowerment zones, go to

www.rd.usda.gov.

4. If the box for line 18 is not checked, the amount of all

other nonhospital bonds outstanding as of the date of

this issue that benefit the organization.

Line 11q. On the space provided, enter the facility type, if

applicable, and enter the issue price of the bonds in the

issue price column. If the bond issue finances a spaceport

under section 142(a)(1), enter the issue price and type

“Spaceport” in the description box.

2. Its EIN;

3. The amount of this issue of bonds benefiting the

organization; and

Note: The amount in item 4 above plus line 18 cannot

exceed $150 million with respect to bonds issued (a) prior

to August 6, 1997, and (b) after August 5, 1997, if used for

noncapital expenditures. The $150 million limit does not

apply to bonds issued after August 5, 1997, if 95% or

more of the net proceeds are used solely for capital

expenditures incurred after that date.

Line 19. Enter the issue price if the bonds are used to

acquire nongovernmental output property, which is

property used by a nongovernmental person in connection

with an output facility (such as an electric or gas power

project).

Line 20a. For IRS use only. Do not make an entry.

Line 20b. If the Form 8038 is filed because the bonds are

treated as reissued (i) pursuant to Regulations section

1.141-12 or other applicable authority concerning

remedial actions, or (ii) because of a significant

4

Instructions for Form 8038 (Rev. 9-2025)

modification described in Regulations section 1.1001-3 or

other applicable authority, complete line 20b, Reissuance,

by writing a description of the original type of issue (for

example, tax-exempt governmental bonds, qualified

501(c)(3) bonds, Build America bonds, qualified energy

conservation bonds, exempt facility bonds, qualified small

issue bonds, etc.) in the space provided and entering the

amount of bonds treated as reissued in the issue price

column.

Line 20c. Enter the issue price only if none of the lines

above apply and you are required to file an information

return for a private activity bond. Enter a description of the

bond type.

Part III—Description of Bonds

Line 21. For column (a), the final maturity date is the last

date the issuer must redeem the entire issue.

For column (b), see Issue price under Definitions,

earlier.

For column (c), the stated redemption price at maturity

of the entire issue is the sum of the stated redemption

prices at maturity of each bond issued as part of the issue.

For column (d), the weighted average maturity is the

sum of the products of the issue price of each maturity

and the number of years to maturity (determined

separately for each maturity and by taking into account

mandatory redemptions), divided by the issue price of the

entire issue (from line 21, column (b)).

For column (e), the yield, as defined in section 148(h),

is the discount rate that, when used to figure the present

value of all payments of principal and interest to be paid

on the bond, produces an amount equal to the purchase

price, including accrued interest. See Regulations section

1.148-4 for specific rules to figure the yield on an issue. If

the issue is a variable rate issue, write “VR” as the yield of

the issue. For other than variable rate issues, carry the

yield out to four decimal places (for example, 5.3125%).

Part IV—Uses of Proceeds of Issue

Line 22. Enter the amount of proceeds that will be used

to pay interest on the issue accruing prior to the date of

issue. For definition of date of issue, see these

instructions, Line 7.

Line 24. Enter the amount of the proceeds that will be

used to pay bond issuance costs, including fees for

trustees and bond counsel. If no bond proceeds have

been used to pay bond issuance costs, enter zero. Do not

leave this line blank.

Line 25. Enter the amount of the proceeds that will be

used to pay fees for credit enhancement that are taken

into account in determining the yield on the issue for

purposes of section 148(h) (for example, bond insurance

premiums and certain fees for letters of credit).

Line 26. Enter the amount of the proceeds that will be

allocated to such a fund.

Line 27. Enter the amount of the proceeds that will be

used to pay principal, interest, or call premium on any

tax-exempt bonds, including proceeds that will be used to

fund an escrow account for this purpose.

Instructions for Form 8038 (Rev. 9-2025)

Line 28. Enter the amount of the proceeds that will be

used to pay principal, interest, or call premium on any

taxable bonds, including proceeds that will be used to

fund an escrow account for this purpose.

Part V—Description of Property Financed

Line 31. Enter the amount of nonrefunding proceeds

used to finance real and depreciable personal property

and if the bonds are qualified 501(c)(3) bonds, the

proceeds used to refund taxable bonds used to finance

real and depreciable property. If the amounts are not

available at the time of issuance, make a reasonable

proration between the land, buildings, and equipment.

Note: Under section 147(c), a private activity bond is not

a qualified bond if 25% or more of the proceeds are used

for the acquisition of land or if any of the proceeds are

used to acquire farm land (other than an amount of

proceeds not in excess of $450,000 to be used by a

first-time farmer). An exception to this general rule is for

land acquired for certain environmental purposes. See

section 147(c)(3). Also, a bond is not a qualified bond if

the proceeds are used for the acquisition of used property

(other than land), except in the case of certain

rehabilitations. See section 147(d).

For items that do not readily fit within categories 31a, b,

c, or d, enter the amount of those proceeds in category

31e, Other, and briefly describe them on the line.

Line 32. For each project to be financed with proceeds

entered on line 31a, b, c, d, or e, enter the corresponding:

• Six-digit North American Industry Classification

System (NAICS) code that best describes the project,

and

• Face amount of the project.

If there are more than four projects to be financed by

the issue, attach a separate sheet of paper stating the

NAICS codes and face amount of each project.

For the purpose of determining NAICS codes where the

project fits into more than one category, the ultimate use

of the facility determines the NAICS code number. For

example, an investment partnership financing a

manufacturing facility should use the relevant

manufacturing NAICS code, not the partnership's financial

activities code.

The NAICS codes are available on the U.S. Census

Bureau website at www.census.gov/naics.

Part VI—Description of Refunded Bonds

Complete this part only if the bonds are to be used to

refund a prior issue of tax-exempt bonds or taxable bonds.

Lines 33 and 34. The remaining weighted average

maturity is determined without regard to the refunding.

The weighted average maturity is determined in the same

manner as for line 21, column (d). See Line 21, column

(d), earlier.

Line 35. Enter the last date on which any of the bonds

being refunded will be called.

Line 36. If more than a single issue of tax-exempt bonds

or taxable bonds will be refunded, enter the date of issue

for each refunded issue.

5

Part VII—Miscellaneous

Line 37. Under the rules of section 147(f), private activity

bonds are not tax exempt unless they receive public

approval by certain officials or voter referendums. Enter

the name of the governmental unit(s) approving the issue.

Enter also the date of approval by the applicable elected

representatives and the date of the public hearing. In the

alternative, enter the date of the voter referendum.

If, under the rules of section 147(f), no approval is

needed because the issue meets an exception to the

public approval requirement, write “No approval needed”

on line 37. Also enter on line 37 the provision of section

147(f) under which the issue is excepted (for example,

“section 147(f)(2)(D)”), or if under any transitional rule,

write “Transitional rule” and the applicable Act (for

example, “Tax Reform Act of 1986”) and section.

Line 39. Check this box if the issue is a construction

issue and an irrevocable election to pay a penalty in lieu of

arbitrage rebate has been made on or before the date the

bonds were issued. The penalty is payable with a Form

8038-T for each 6-month period after the date the bonds

are issued. Do not make any payment of penalty in lieu of

arbitrage rebate with this form. See Rev. Proc. 92-22,

1992-1 C.B. 736, for rules regarding the “election

document.”

Line 40a. Check this box if the issuer has identified a

hedge on its books and records in accordance with

Regulations sections 1.148-4(h)(2)(viii) and 1.148-4(h)(5)

that permit an issuer of tax-exempt bonds to identify a

hedge for it to be included in yield calculations for figuring

arbitrage.

Line 41. In determining if the issuer has super-integrated

a hedge, apply the rules of Regulations section 1.148-4(h)

(4). If the hedge is super-integrated, check the box.

Line 42a. If any portion of the gross proceeds of the

issue are or will be invested in a guaranteed investment

contract (GIC), as defined in Regulations section

1.148-1(b), enter the amount of the gross proceeds so

invested.

Line 42b. Enter the final maturity date of the GIC.

Line 42c. Enter the name of the GIC provider.

Line 43. If there are applicable provisions under either

the Code or Regulations to ensure that all nonqualified

bonds of this issue are remediated and the issuer has

established written procedures to comply with such

remedial provisions, check the box. For example, remedial

provisions under Regulations section 1.142-2 apply to

exempt facility bonds; Regulations section 1.144-2 applies

section 1.142-2 to qualified small issue bonds;

Regulations section 1.145-2 applies section 1.141-12 to

qualified 501(c)(3) bonds; and section 142(f)(2)(B) applies

to bonds issued to finance facilities for the local furnishing

of electric energy or gas.

Line 44. Check the box if the issuer has established

written procedures to monitor compliance with the

arbitrage, yield restriction, and rebate requirements of

section 148.

6

Line 45a. Determine and enter the amount of the

proceeds of the issue used to reimburse the issuer for

amounts paid for a qualified purpose prior to the issuance

of the bonds. See Regulations section 1.150-2.

Line 45b. Subject to certain exceptions under

Regulations section 1.150-2(f), an issuer must adopt an

official intent, as described in Regulations section

1.150-2(e), to reimburse itself for preissuance

expenditures within 60 days after payment of the original

expenditure. Enter the date the official intent was adopted.

Line 46. Check this box if:

The issue is comprised of . . .

As described in section . . .

Qualified redevelopment bonds

144(c)

Qualified small issue bonds

144(a)

Exempt facilities bonds

142(a)(4) through 142(a)(11),

142(a)(13) through 142(a)(17),

1394, and 1400U-3

If one of the above applies, then enter the name and

EIN of the primary private user. A “primary private user” is

the nongovernmental entity that meets the private

business tests of section 141(b) or private loan financing

test of section 141(c).

Part VIII—Volume Caps

Line 47. Enter the amount of volume cap allocated to the

issuer. Attach a copy of the state certification, if

applicable. The appropriate state official must certify that

the issue meets the requirements of section 146 (relating

to volume cap on private activity bonds). See the

regulations under section 149(e). The certification must

also include the information requested by lines 1, 2, and 7

through 9 on page 1 of Form 8038, as well as the title of

the certifying official.

Failure to attach the certification with the information

described in the paragraph above may result in a delay in

processing this form.

Line 48. Enter the amount of the issue subject to the

unified state volume cap for private activity bonds under

section 146. If, under section 141(b)(5), the nonqualified

amount of an issue exceeds $15 million, but does not

exceed the amount that would cause a bond which is part

of an issue to be treated as a private activity bond, the

issuer must allocate a part of its volume cap to the

nonqualified amount over $15 million. Include amounts

subject to volume cap under section 146(g)(4), (5), and

(6). However, for high-speed intercity rail facilities and

qualified broadband projects, if all the bond-financed

property is governmentally owned, no volume cap applies.

See sections 146(g) and 142(b)(1)(B).

Line 49. This line is for the IRS use only. Do not make an

entry.

Line 49a. Enter the amount of any bond issued as part of

an issue to finance exempt facilities that are not subject to

the unified state volume cap. These facilities include the

following.

• Airports and spaceports.

Instructions for Form 8038 (Rev. 9-2025)

• Docks.

• Wharves.

• Environmental enhancements of hydroelectric

generating facilities.

• Qualified public educational facilities.

• Qualified green building and sustainable design

projects.

• Qualified highway or surface freight transfer facilities.

• Solid waste facilities.

Note: These facilities may have to be governmentally

owned. See section 146(h) and section 142(b)(1).

• High-speed intercity rail facilities.

• Qualified broadband projects.

• Qualified carbon dioxide capture facilities.

Note: Only 75% of any exempt facility bond for

high-speed intercity rail facilities, qualified broadband

projects, and qualified carbon dioxide capture facilities

are not subject to the volume cap; however, for

high-speed intercity rail facilities and qualified

broadband projects, no volume cap applies if all the

bond-financed property is governmentally owned. See

sections 146(g) and 142(b)(1)(B).

Line 49b. If any part of the issue is issued under a

carryforward election, enter the amount of the bonds

being issued under that election. Attach a copy of the

applicable Form 8328, Carryforward Election of Unused

Private Activity Bond Volume Cap.

Line 49c. If any part of the issue is not subject to the

volume cap under a transitional rule of the Tax Reform Act

of 1986, enter the appropriate section of the Act and then

the amount of the bonds excepted from the volume cap by

that rule.

Line 49d. Any bond that is issued to currently refund

another bond is not subject to the volume cap to the

extent that the amount of such bond does not exceed the

outstanding amount of the refunded bond. See section

146(i) and section 1313(a) of the Tax Reform Act of 1986.

Enter the amount not subject to the volume cap. Also

enter the amount issued to currently refund another bond

pursuant to authority provided in Notice 2019-39, 2019-24

I.R.B. 1322, Current Refundings for Certain Targeted

State, Local, and Indian Tribal Government Bond

Programs.

Line 50b. Enter the state limit on qualified veterans'

mortgage bonds for the calendar year under section 143(l)

(3).

Line 51a. Enter the amount of volume cap allocated to

the issuer. Attach a copy of the government's certification.

The official must certify that the issue meets the

requirements, including the applicable volume cap under

section 1394(f). The certification must also include the

information requested by lines 1, 2, and 7 through 9 on

page 1 of Form 8038, as well as the title of the certifying

official.

Line 51b. Enter the name of the empowerment zone. See

the instructions for Line 11j on where to get the names of

the empowerment zones.

Line 52. Enter the amount of volume cap allocated to the

issuer. Attach a copy of the state certification, if

applicable. The appropriate state official must certify that

Instructions for Form 8038 (Rev. 9-2025)

the issue meets the volume cap requirements of section

142(k)(5). The certification must also include the

information requested by lines 1, 2, and 7 through 9 on

page 1 of Form 8038, as well as the title of the certifying

official.

Signature and Consent

An authorized representative of the issuer must sign Form

8038 and any applicable certification. Also print the name

and title of the person signing Form 8038. The authorized

representative of the issuer signing this form must have

the authority to consent to the disclosure of the issuer's

return information, as necessary to process this return, to

the person(s) that has been designated in Form 8038.

Note: If the issuer in Part I, lines 3a and 3b, authorizes the

IRS to communicate (including in writing and by

telephone) with a person other than an officer or other

employee of the issuer, by signing this form, the issuer's

authorized representative consents to the disclosure of

the issuer's return information, as necessary to process

this return, to such person.

Paid Preparer

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

paid preparer's space should remain blank. Anyone who

prepares the return but does not charge the organization

should not sign the return. Certain others who prepare the

return should not sign. For example, a regular, full-time

employee of the issuer, 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. The paid preparer must:

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

signature,

• Enter the preparer information, and

• Give a copy of the return to the issuer.

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.

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.

If you have suggestions for making this form simpler,

we would be happy to hear from you. You can send us

7

comments through IRS.gov/FormComments. Or you can

write to:

Do not send Form 8038 to this address. Instead, see

Where To File, earlier.

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, IR-6526

Washington, DC 20224

8

Instructions for Form 8038 (Rev. 9-2025)