Instructions for Form 8038

(Rev. February 2022)

Information Return for Tax-Exempt Private Activity Bond Issues

Department of the Treasury

Internal Revenue Service

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

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.

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.

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.

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, 

CAUTION

!

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.

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, 

Jan 24, 2022 Cat. No. 49974V
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.

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 

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.

-2- Instructions for Form 8038 (Rev. 2-2022)
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.

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 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.

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

please provide other identification of the 

issue.

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.”

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.

Complete lines 10a and 10b 

even if you complete lines 3a 

and 3b.

Part II—Type of Issue

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.

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.

CAUTION

!

CAUTION

!

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.

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 11q. On the space provided, enter 

the facility type, if applicable, and enter 

the issue price of the bonds in the issue 

price column.

Instructions for Form 8038 (Rev. 2-2022) -3-
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:

1. The name of the organization;

2. Its EIN;

3. The amount of this issue of bonds 

benefiting the organization; and

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.

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 

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.

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 

-4- Instructions for Form 8038 (Rev. 2-2022)
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).

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.

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.

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 

Instructions for Form 8038 (Rev. 2-2022) -5-
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.

• 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 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 

-6- Instructions for Form 8038 (Rev. 2-2022)
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 

comments through IRS.gov/

FormComments. Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW, 

IR-6526

Washington, DC 20224

Do not send Form 8038 to this address. 

Instead, see Where To File, earlier.

Instructions for Form 8038 (Rev. 2-2022) -7-