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Form 8038 Instructions

Instructions for Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues

Rev. February 2022

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  • Form 8038 - Information Return for Tax-Exempt Private Activity Bond Issues
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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 8038  
Information Return for Tax-Exempt Private Activity Bond Issues  
(Rev. February 2022)  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
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.  
Arbitrage Rebate, Yield Reduction and  
Penalty in Lieu of Arbitrage Rebate.  
Rounding Off to Whole Dollars  
Future Developments  
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.  
For the latest information about  
developments related to Form 8038 and  
its instructions, such as legislation  
enacted after they were published, go to  
What’s New  
The Infrastructure Investment and Jobs  
Act (P.L. 117-58) added exempt facility  
bonds for qualified broadband projects  
and qualified carbon dioxide capture  
facilities. See Exempt facility bond,  
later, for more information.  
Where To File  
File Form 8038 and any attachments at  
the following address.  
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.  
Department of the Treasury  
Internal Revenue Service Center  
Ogden, UT 84201  
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.  
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.  
Private activity bond. This includes a  
bond issued as part of an issue in  
which:  
The PDS can tell you how to get  
written proof of the mailing date.  
Who Must File  
More than 10% of the proceeds are  
to be used for any private business  
use; and  
For the IRS mailing address to use if  
you're using PDS, go to IRS.gov/  
Issuers must file a separate Form 8038  
for each issue of the following  
tax-exempt private activity bonds issued  
after 1986.  
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.  
PDS can’t deliver items to P.O.  
Exempt facility bonds.  
Qualified mortgage bonds.  
Qualified veterans' mortgage  
bonds.  
boxes. You must use the U.S.  
!
CAUTION  
Postal Service to mail any item  
to an IRS P.O. box address.  
Qualified small issue bonds.  
Qualified student loan bonds.  
Qualified redevelopment bonds.  
Qualified hospital bonds.  
Qualified 501(c)(3) bonds.  
Nongovernmental output property  
bonds.  
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  
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.  
8038-GC, Information Return for Small  
Tax-Exempt Governmental Bond  
Issues, Leases, and Installment Sales.  
All other tax-exempt private activity  
bonds.  
When To File  
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.  
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.  
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,  
Late filing. An issuer may be granted  
an extension of time to file Form 8038  
under section 3 of Rev. Proc. 2002-48,  
For rebating arbitrage or paying a  
penalty in lieu of arbitrage rebate to the  
federal government, use Form 8038-T,  
Jan 24, 2022  
Cat. No. 49974V  
respectively, and recovery zone facility  
bonds for use in recovery zones.  
general application to which the  
Higher Education Act of 1965  
applies (see section 144(b)(1)(A)  
for additional requirements), or  
and nonhospital) to provide residential  
rental housing. See section 145(d).  
Qualified mortgage bond. This is part  
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  
of an issue:  
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).  
1. Of which all proceeds (except  
issuance costs and reasonably  
required reserves) are to be used to  
finance owner-occupied  
residences,  
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  
public. To determine the issue price of a  
bond issued for property, see sections  
1273 and 1274 and the related  
regulations.  
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  
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.  
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  
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  
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.  
requirement.  
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.  
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).  
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  
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.  
owned by a governmental unit or a  
section 501(c)(3) organization.  
A qualified 501(c)(3) bond includes  
the following.  
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.  
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).  
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.  
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  
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).  
requirements. See section 148(f)(4)(C)  
(vii) and the Instructions for Form  
8038-T.  
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  
Restrictions apply to the use of  
qualified 501(c)(3) bonds (both hospital  
Instructions for Form 8038 (Rev. 2-2022)  
-2-  
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.  
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).  
Specific Instructions  
Part I—Reporting Authority  
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.  
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.  
These facilities  
include...  
As described in  
former section...  
Line 5. This line is for IRS use only. Do  
A sports facility  
103(b)(4)(B)  
not make an entry.  
A convention or trade  
show facility  
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.  
Line 8. If there is no name of the issue,  
please provide other identification of the  
issue.  
103(b)(4)(C)  
103(b)(4)(D)  
A parking facility  
A pollution control facility 103(b)(4)(F)  
A hydroelectric facility  
An industrial park  
103(b)(4)(H)  
103(b)(5)  
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 9. Enter the CUSIP (Committee on  
Uniform Securities Identification  
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.  
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.  
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.  
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  
Procedures) number of the bond with  
the latest maturity. If the issue does not  
have a CUSIP number, write “None.”  
organization may also apply for an EIN  
by faxing or mailing Form SS-4 to the  
IRS.  
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  
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 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).  
(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.  
Complete lines 10a and 10b  
even if you complete lines 3a  
!
CAUTION  
and 3b.  
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  
Part II—Type of Issue  
Elections referred to in Part II  
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.  
are made on the original bond  
!
CAUTION  
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.  
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.  
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.  
Instructions for Form 8038 (Rev. 2-2022)  
-3-  
August 5, 1997, if 95% or more of the  
net proceeds are used solely for capital  
expenditures incurred after that date.  
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%).  
As described  
in section...  
Facility types include...  
Environmental  
Line 19. Enter the issue price if the  
bonds are used to acquire  
enhancements of  
hydroelectric generating  
facilities  
142(a)(12) and  
142(j)  
nongovernmental output property,  
which is property used by a  
High-speed intercity rail  
facilities*  
142(a)(11),  
142(c), and  
142(i)  
nongovernmental person in connection  
with an output facility (such as an  
electric or gas power project).  
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.  
*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 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  
Line 12b. This line is for IRS use only.  
modification described in Regulations  
section 1.1001-3 or other applicable  
authority, complete line 20b,  
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:  
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 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.  
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.  
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.  
1. The name of the organization;  
2. Its EIN;  
Part V—Description of Property  
Financed  
Line 31. Enter the amount of  
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  
3. The amount of this issue of bonds  
benefiting the organization; and  
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.  
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  
redemptions), divided by the issue price  
of the entire issue (from line 21, column  
(b)).  
organization.  
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  
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,  
Note. Under section 147(c), a private  
activity bond is not a qualified bond if  
25% or more of the proceeds are used  
expenditures. The $150 million limit  
does not apply to bonds issued after  
produces an amount equal to the  
Instructions for Form 8038 (Rev. 2-2022)  
-4-  
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:  
Regulations to ensure that all  
Part VII—Miscellaneous  
nonqualified bonds of this issue are  
remediated and the issuer has  
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.  
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.  
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  
Line 44. Check the box if the issuer  
has established written procedures to  
monitor compliance with the arbitrage,  
yield restriction, and rebate  
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  
requirements of section 148.  
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.  
“Transitional rule” and the applicable  
Act (for example, “Tax Reform Act of  
1986”) and section.  
Six-digit North American Industry  
Classification System (NAICS) code  
that best describes the project, and  
Face amount of the project.  
Line 39. Check this box if the issue is a  
construction issue and an irrevocable  
election to pay a penalty in lieu of  
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.  
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.”  
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.  
Line 46. Check this box if:  
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  
The issue is  
comprised of...  
As described in  
section...  
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.  
The NAICS codes are available on  
the U.S. Census Bureau website at  
Qualified  
redevelopment bonds 144(c)  
Qualified small issue  
Part VI—Description of  
Refunded Bonds  
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.  
bonds  
144(a)  
Complete this part only if the bonds are  
to be used to refund a prior issue of  
tax-exempt bonds or taxable bonds.  
Exempt facilities  
bonds  
142(a)(4) through  
142(a)(11), 142(a)(13)  
through 142(a)(17),  
1394, and 1400U-3  
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  
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).  
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).  
Regulations section 1.148-1(b), enter  
the amount of the gross proceeds so  
invested.  
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.  
Line 42b. Enter the final maturity date  
of the GIC.  
Line 42c. Enter the name of the GIC  
Part VIII—Volume Caps  
Line 47. Enter the amount of volume  
cap allocated to the issuer. Attach a  
copy of the state certification, if  
provider.  
Line 43. If there are applicable  
provisions under either the Code or  
Instructions for Form 8038 (Rev. 2-2022)  
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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.  
dioxide capture facilities are not  
include the information requested by  
subject to the volume cap; however, lines 1, 2, and 7 through 9 on page 1 of  
for high-speed intercity rail facilities  
and qualified broadband projects,  
no volume cap applies if all the  
bond-financed property is  
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  
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.  
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.  
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  
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.  
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.  
Line 50b. Enter the state limit on  
qualified veterans' mortgage bonds for  
the calendar year under section 143(l)  
(3).  
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:  
Airports.  
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.  
Docks.  
Wharves.  
Environmental enhancements of  
hydroelectric generating facilities.  
Qualified public educational  
facilities.  
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.  
Qualified green building and  
sustainable design projects.  
Qualified highway or surface freight  
transfer facilities.  
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.  
Solid waste facilities.  
Note. These facilities may have to  
be governmentally owned. See  
section 146(h) and section 142(b)  
(1).  
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.  
High-speed intercity rail facilities.  
Qualified broadband projects.  
Qualified carbon dioxide capture  
facilities.  
Line 52. Enter the amount of volume  
cap allocated to the issuer. Attach a  
copy of the state certification, if  
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  
applicable. The appropriate state official  
must certify that the issue meets the  
volume cap requirements of section  
142(k)(5). The certification must also  
Note. Only 75% of any exempt  
facility bond for high-speed intercity  
rail facilities, qualified broadband  
projects, and qualified carbon  
Instructions for Form 8038 (Rev. 2-2022)  
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relating to a form or its instructions must  
be retained as long as their contents  
may become material in the  
burden for tax-exempt organizations  
filing this form is approved under OMB  
control number 1545-0047 and is  
Internal Revenue Service  
Tax Forms and Publications  
1111 Constitution Ave. NW,  
IR-6526  
administration of any Internal Revenue  
law. Generally, tax returns and return  
information are confidential, as required  
by section 6103.  
included in the estimates shown in the  
instructions for their information return.  
Washington, DC 20224  
If you have suggestions for making  
Do not send Form 8038 to this address.  
Instead, see Where To File, earlier.  
this form simpler, we would be happy to  
The time needed to complete and file hear from you. You can send us  
this form will vary depending on  
comments through IRS.gov/  
individual circumstances. The estimated FormComments. Or you can write to:  
Instructions for Form 8038 (Rev. 2-2022)  
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