The IRS recently issued five notices allocating issuance authority and clarifying several tax-favored bond provisions of the American Recovery and Reinvestment Act of 2009 (ARRA), P.L. 111-5, enacted on February 17, 2009, also known as the Stimulus Act.
Notice 2009-26 (April 3, 2009) – Build America Bonds
Notice 2009-26 provides guidance on the new Build America Bonds (BABs) authorized by the Stimulus Act. If an issue of BABs meets certain requirements, the issuer can elect to receive a payment equal to 35 percent of each of the issuer's interest payments to the bondholders in lieu of a credit to the bondholders. Notice 2009-26 informs an issuer how to make this election and file the necessary forms to receive timely payments from the IRS. One such form is new Form 8038-CP. In addition to Form 8038-G with respect to an issue of BABs, issuers that have elected to receive a direct payment from the IRS must file Form 8038-CP to receive payment. Notice 2009-26 also clarifies some of the Stimulus Act provisions concerning the federal tax treatment of the direct payment to the issuer and provides other interim guidance regarding BABs.
Notice 2009-35 (April 3, 2009) – Qualified School Construction Bonds
Notice 2009-35 sets forth the maximum face amount of Qualified School Construction Bonds (QSCBs) allocated to each state and "large local educational agency" for 2009. This Notice also provides interim guidance for QSCBs including how an issuer designates an issue of bonds as QSCBs.
Notice 2009-30 (April 3, 2009) – Qualified Zone Academy Bonds
Notice 2009-30 sets forth the maximum face amount of Qualified Zone Academy Bonds (QZABs) that may be issued for each state for each of the calendar years 2008 and 2009. The Notice also provides certain interim guidance for QZABs issued after October 3, 2008, the date on which Congress reauthorized the QZAB program.
Notice 2009-29 (April 6, 2009) – Qualified Energy Conservation Bonds
Notice 2009-29 sets forth the maximum face amount of Qualified Energy Conservation Bonds (QECBs) that may be issued by each state and large local government. This Notice also provides certain interim guidance for QECBs issued after October 3, 2008, the date on which Congress initially authorized the QECB program.
Notice 2009-33 (April 6, 2009) – New Clean Renewable Energy Bonds
Notice 2009-33 solicits applications for allocations of issuance authority for New Clean Renewable Energy Bonds (NCREBs) to finance certain qualified renewable energy facilities, and provides the form and procedures to be used for the application. Applications must be filed by August 4, 2009. Notice 2009-33 also provides related guidance on eligibility requirements that a project must meet to be considered for an allocation. It also provides interim guidance concerning both NCREBs and clean renewable energy bonds under prior law.