Printable Form 2026

IRS Form 8038-TC – Information Return for Tax Credit Bonds and Specified Tax Credit Bonds

IRS Form 8038-TC – Are you researching IRS Form 8038-TC or need details on reporting requirements for tax credit bonds and specified tax credit bonds? This comprehensive guide covers everything issuers, tax professionals, and compliance teams need to know about Form 8038-TC, based exclusively on official IRS sources.

Although the form is now considered historical due to legislative changes, understanding its requirements remains essential for legacy bond issues, amendments, and historical compliance reviews.

What Is IRS Form 8038-TC?

IRS Form 8038-TC, titled Information Return for Tax Credit Bonds and Specified Tax Credit Bonds, is an information return required under Internal Revenue Code (IRC) Section 149(e). Issuers use it to report the original issuance of qualified tax credit bonds and specified tax credit bonds to the IRS.

  • Current Revision: Form 8038-TC (Rev. November 2012)
  • Instructions Revision: Instructions for Form 8038-TC (Rev. September 2018)
  • Official Download: Form 8038-TC PDF

The IRS explicitly states that Form 8038-TC is historical. The Tax Cuts and Jobs Act (TCJA) repealed the authority to issue most tax-credit bonds and direct-pay bonds after December 31, 2017. This repeal applies to qualified forestry conservation bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, and qualified school construction bonds issued after that date.

No new issuances are permitted, but the form and its instructions remain available for any pre-2018 bonds that may require amended returns or ongoing reference.

Tax Credit Bonds vs. Specified Tax Credit Bonds: Key Definitions

Tax Credit Bonds (under IRC Sections 54, 54A, or 1400N(l)) allow bondholders to claim a federal income tax credit on credit allowance dates instead of (or in addition to) interest payments.

Qualified Tax Credit Bonds include:

  • Qualified forestry conservation bonds (Section 54B)
  • New clean renewable energy bonds (New CREBs, Section 54C)
  • Qualified energy conservation bonds (QECBs, Section 54D)
  • Qualified zone academy bonds (QZABs, Section 54E)
  • Qualified school construction bonds (QSCBs, Section 54F)
  • Clean renewable energy bonds (Section 54)
  • Other qualified tax credit bonds (excluding Build America Bonds, reported on Form 8038-B)

Specified Tax Credit Bonds (STCBs) are a subset of qualified tax credit bonds eligible for a special election:

  • New CREBs
  • QECBs
  • QZABs
  • QSCBs

Issuers of STCBs (issued before January 1, 2018) can elect under Section 6431(f) to receive a refundable direct payment (credit) from the IRS in lieu of tax credits to holders. This requires filing Form 8038-CP for payments, and Form 8038-TC must be submitted at least 30 days before the first 8038-CP.

Who Must File Form 8038-TC?

Issuers (governmental entities or qualified borrowers) of the bonds listed above must file a separate Form 8038-TC for each bond issue.

  • File for issuances after March 2010 and before January 1, 2018 (for most qualified tax credit bonds).
  • STCBs must also be reported on this form.

If a single project includes multiple bond types (e.g., tax-exempt bonds + tax credit bonds), report them on the appropriate separate forms (8038-G/8038-GC for tax-exempt, 8038-B for BABs/RZEDBs, and 8038-TC for qualified tax credit bonds/STCBs).

When and Where to File Form 8038-TC?

Standard Deadline
By the 15th day of the second calendar month after the close of the calendar quarter in which the bonds were issued (e.g., bonds issued in Q1 due by May 15).

Special Rule for Specified Tax Credit Bonds (STCBs)
File at least 30 days prior to the first Form 8038-CP submission requesting a direct payment.

  • Form cannot be filed before the issue date.
  • Complete the form based on facts as of the issue date.

Where to File
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201

Private delivery services approved by the IRS may be used (check IRS.gov/PDS for the latest list).

Amended Returns
Check the “Amended Return” box, attach an explanation, and include all original plus corrected information.

How to Complete Form 8038-TC: Overview of Key Parts?

The form has eight parts plus specialized schedules (A–D) for specific bond types:

  • Part I: Reporting Authority (issuer name, EIN, contact info, issue date, name, CUSIP)
  • Part II: Type of Issue (bond code, description, election for refundable credit, interest payment details, debt service schedule for STCBs)
  • Part III: Description of Obligations (issue price, redemption price, maturity, credit rate, yield)
  • Part IV: Proceeds of Issue (sale proceeds, issuance costs ≤2%, investment proceeds, available project proceeds)
  • Part V: Use of Proceeds for Qualified Purpose Expenditures (detailed allocation; must show 100% of available project proceeds used for qualified purposes within required periods)
  • Part VI: Allocation of Bond Limitation (volume cap details and certification)
  • Part VII: Miscellaneous (arbitrage procedures, conflicts of interest, credit stripping, redemption procedures)
  • Part VIII: Consent to Disclosure

Schedules:

  • Schedule A: New CREBs
  • Schedule B: QECBs
  • Schedule C: QZABs
  • Schedule D: QSCBs

Key Requirements:

  • Attach debt service schedules for variable-rate or STCBs.
  • Provide official intent date for reimbursements.
  • Maintain written arbitrage monitoring procedures and nonqualified bond redemption procedures.
  • Round all amounts to whole dollars.

Full line-by-line guidance is in the official Instructions for Form 8038-TC (September 2018).

Important Compliance Notes and Arbitrage Rules

Issuers must:

  • Spend 100% of available project proceeds on qualified purposes within the 3-year expenditure period (with possible extensions).
  • Redeem nonqualified bonds within 90 days if the spending requirement is not met.
  • Comply with Section 148 arbitrage rules (use Form 8038-T for rebate payments).
  • Satisfy state/local conflict-of-interest rules.

For STCBs electing direct pay, the refundable credit is generally the lesser of actual interest or a percentage of the credit rate amount (70% for New CREBs/QECBs in some cases).

  • Form 8038-CP — Return for Credit Payments to Issuers of Qualified Bonds (for direct pay on STCBs)
  • Form 8038-B — For Build America Bonds and Recovery Zone Economic Development Bonds
  • Form 8038-G / 8038-GC — For tax-exempt governmental bonds in mixed financings
  • Form 8912 — Credit to Holders of Tax Credit Bonds (for bondholders)
  • Form 8038-T — Arbitrage Rebate, Yield Reduction, and Penalty

Download Official IRS Form 8038-TC Resources

Always verify the latest information directly on IRS.gov, as forms and instructions can be updated.

Frequently Asked Questions (FAQs)

Can I still file Form 8038-TC in 2026?
Yes, for amended returns or legacy pre-2018 issuances. No new bonds can be issued.

What if I miss the filing deadline?
Request relief under Rev. Proc. 2002-48 by writing “Request for Relief under section 3 of Rev. Proc. 2002-48” at the top and attaching an explanation.

Do STCBs require a separate debt service schedule?
Yes, and it must detail principal, interest, and refundable credit amounts.

Where can holders claim the tax credit?
Bondholders use Form 8912.

Conclusion

IRS Form 8038-TC served as the critical information return for tax credit bonds and specified tax credit bonds during their active issuance period. While the TCJA ended new issuances after 2017, proper understanding and historical compliance with this form remain important for issuers managing legacy portfolios, performing audits, or handling amendments.

For the most current guidance, always refer to the official IRS resources linked above. Consult a qualified tax professional or bond counsel for specific situations involving existing tax credit bond issues.

This guide is based on official IRS publications as of February 2026, including the Form 8038-TC instructions (Rev. Sep. 2018), the About Form page (last reviewed January 2026), and related tax-exempt bond filing guidance.