SECTION 4. APPLICATION

PROCESS AND DEADLINES

Because each applicant for an allocation of the QFCB National Limitation must address various requirements administered by the IRS, by the USFS, and potentially by one or more States, the process described below is designed to support applicants in efficiently completing their applications. Except to the extent waived by the applicant, all information that the applicant provides in the course of the application process to the IRS, to the USFS, or to any State is confidential tax return information within the meaning of section 6103. If some of the land acquired will be transferred to one or more States (and thus application information will have to be given to that State or those States), the applicant should notify the IRS immediately. Although the process contains deadlines for some of its stages, applicants that have completed one stage before the deadline are encouraged immediately to embark on the next. Nothing in this process prevents some applicants from submitting

their Final Applications even before the due date for other applicants’ Expressions of Interest. If all Final Applications are submitted substantially before the deadline below, the IRS and the USFS intend that allocations will be made substantially before the statutory deadline in section 54B(d)(1).

The application process consists of the following five stages:

USFS and States have specific requirements that must be satisfied in order for land to be transferred to them. In particular, at a minimum, land to be transferred to the USFS must be by general warranty deed or the functional equivalent under applicable State law, with title otherwise acceptable to the Department of Agriculture, Office of the General Counsel, and in conformity with the title standards of the U.S. Attorney General. All lands conveyed to the USFS must be managed pursuant to the laws and regulations governing the National Forest System. Applicants should immediately begin consultations with the USFS and with any relevant States regarding the applicable requirements, including requirements regarding the condition of the land at the time of transfer in light of timber harvesting or other land management activities occurring prior to transfer. (For purposes of this notice, the term “applicant” includes potential applicants.) These consultations should also address how the qualified forestry conservation projects to be included in an application can be structured in ways that maximally advance the statutory purposes of section 54B.

IRS, the USFS, and any affected State to determine the resources that must be dedicated to the allocation process, all persons who may apply for an allocation to issue QFCBs must file an Expression of Interest no later than October 21, 2008. The signed original of the Expression of Interest and a copy must be filed with the IRS, and two additional copies must be sent to the USFS, as well as to each relevant State, if any of the property will be conveyed to a State or States. See Section 17, below, for instructions on where to file. Section 5 of this notice describes the

2008–36 I.R.B. 577 September 8, 2008

turn to pay for one or more surety bonds required by Section 6(3)(e)(vi) of this notice.)

(3) Certifications and additional infor- mation . Each application must contain the information and certifications by the applicant required by this subsection (3).

(a) Requirements governing the land to be acquired . With respect to the land to be acquired with the available project proceeds of each issue (or, if applicable, with the refund of the deemed payment), each application must contain a certification by the applicant that includes the following statements and information:

(i) The land is forest and forest land that the applicant has established is suitable for conveyance to the USFS or the State.

(ii) Some portion of the land to be acquired is adjacent to USFS land (within the meaning set forth under “Qualified forestry conservation purpose” in Section 3(2)(c) of this notice). (iii) All of the land is subject to a native fish habitat conservation plan approved by the USFWS. The conservation plan approved by the USFWS must accompany the application.

(iv) The amount of acreage to be acquired is at least 40,000 acres.

(v) The application must set forth a specific date, no later than three years after issuance of the bonds or, if applicable, after receipt of the refund of the deemed payment, on or before which the applicant expects to acquire the land. See Section 13(2) of this notice regarding the procedure for requesting an extension of this three-year deadline.

(b) Land description and location . The application must specifically describe the land to be acquired, with an emphasis on characteristics that qualify the land as forest or forest land. The description must include the location of the land to be acquired and demonstrate that the land is adjacent to USFS land (within the meaning set forth under “Qualified forestry conservation purpose” in Section 3(2)(c) of this notice). United States Geological Survey maps for all quadrants containing any of the land must be included with the application, and the land must be clearly and precisely identified on the map or maps. Legal descriptions must be depicted on a map or plat of a scale of 1:24,000 or larger unless otherwise allowed by the USFS.

Application must be filed with the IRS not later than April 1, 2010, and copies must simultaneously be filed with the USFS and all affected States. Section 6 of this notice describes the requirements for the Final Application. The allocations of the QFCB National Limitation will be made not later than the earlier of—

all applicants have filed their Final Applications.