SECTION 5. INFORMATION

REPORTING FOR DIRECT PAY TAX CREDIT BONDS

Section 54A(d)(3) provides that an issue shall be treated as meeting the requirements of § 54A(d)(3) if the issuer of Direct Pay Tax Credit Bonds submits reports similar to the reports required under § 149(e). The IRS and the Treasury Department expect that an IRS form for reporting tax credit bonds and Direct Pay Tax Credit Bonds, new IRS “Form 8038–TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds, ” will be available on the IRS web site at http://www.irs.gov/app/pick- list/list/formsInstructions.html on or before June 25, 2010. Subject to updated IRS procedures, the IRS expects that, as of the date of public release of IRS Form 8038–TC and its Instructions, issuers of tax credit bonds, including Direct Pay Tax Credit Bonds, will be required to report the issuance of those bonds on Form 8038–TC in the time and manner contemplated by this notice, § 149(e), and Form 8038–TC. The IRS will be prepared to accept Form 8038–TC for processing immediately upon its public release.

Generally, Form 8038–TC with respect to an issue of Direct Pay Tax Credit Bonds must be filed with the IRS at least 30 days before the first Form 8038–CP is filed to request the refundable credit payment for an interest payment date for that issue. For Direct Pay Tax Credit Bonds with interest payment dates prior to September 1, 2010, Form 8038–TC may be filed less than 30 days before filing the first Form 8038–CP provided Form 8038–TC is filed separately from and prior to the filing of Form 8038–CP. Issuers should not attach Form 8038–TC to Form 8038–CP.

Issuers of Direct Pay Tax Credit Bonds must attach a schedule to Form 8038–TC which contains the information described below with respect to the bond issue:

(1) For fixed-rate bonds, attach a complete debt service schedule entitled “Fixed Rate Bond—Debt Service Schedule,” that provides a list of each interest payment date, the total interest payable on each such date, the total principal amount of bonds expected to be outstanding on each such date, the refundable credit payment expected to be requested from the IRS as allowed under section 2.3 of this Notice with

respect to each such date, and the earliest the bonds can be called.

(2) For variable rate bonds, attach a debt service schedule entitled “Variable Rate Bond—Debt Service Schedule,” that provides a list of each interest payment date, the total principal amount of bonds expected to be outstanding on each such date, and a description of how interest on the bond is computed. If, however, the issuer knows the interest payment amount for a certain period, the issuer should include the refundable credit payment expected to be requested from the IRS, as allowed under section 2.3 of this Notice, with respect to such period.