SECTION 7. OTHER REQUIREMENTS

.01 Signature . Each submission under section 6 of this notice must be signed and dated by the taxpayer in accordance with instructions to Form 8942. A stamped signature or faxed signature is not permitted.

.02 Penalties of Perjury Statement . (1) Each application under section 6 of this notice must be accompanied by the following declaration: “Under penalties of perjury, I declare that I have examined this submission, including the accompanying documents, and, to the best of my knowledge and belief, all of the facts contained herein are true, correct, and complete.”

(2) The declaration must be signed and dated by the taxpayer in accordance with instructions to Form 8942. The person signing for the taxpayer must have personal knowledge of the facts. Further, the declaration must be signed by a person authorized to bind the taxpayer such as an officer on behalf of a corporation, a general partner on behalf of a local-law partnership, a member-manager on behalf of a limited liability company, a trustee on behalf of a trust, and the proprietor in the case of a sole proprietorship. A stamped signature or faxed signature is not permitted.

.03 Significant Change in Plans . The taxpayer must inform the Service if the plans for a qualifying therapeutic discovery project change in any significant respect from the information set forth in the application for § 48D certification at any time prior to the date of certification. A significant change is any change, including any change that would affect the continuing accuracy of a statement made in the application, that a reasonable person would conclude might have influenced HHS’ evaluation. The taxpayer must contact Candace Fisher of the Small Business and Self-Employed Division at (651) 312–2109 (not a toll-free number), or by e-mail at acasec9023@irs.gov, at the time the taxpayer determines there has been a significant change to the plans for the project.

June 7, 2010 737 2010–23 I.R.B.

for a grant equal to 50 percent of the applicant’s qualified investment as reported on Form 8942 as having been paid or incurred by September 30, 2010. The remaining amount of the grant will be authorized for payment within 30 days after the end of the applicant’s 2009 taxable year.

(7) The Department of Treasury will make payment to the certified applicant for its 2010 taxable year during the 30-day period beginning on the day after the last day of the 2010 taxable year if the applicant requested a grant on the Form 8942 filed by July 21, 2010, or if the taxpayer files an amended Form 8942 requesting a grant pursuant to section 8.02(2) of this notice no later than the last date of its 2010 taxable year. If the taxpayer files an amended Form 8942 requesting a grant pursuant to section 8.02(2) of this notice after the end of its 2010 taxable year and not later than the due date (including extensions) for filing the return for the 2010 taxable year, then the Department of Treasury will authorize payment to the certified applicant for its 2010 taxable year within 30 days after the request for the grant is filed.

.03 Special Rules . (1) Section 48D(f)(1) of the Code provides that in the case of any investment with respect to which the Secretary makes a grant under section 9023(e) of the Affordable Care Act, no credit will be determined with respect to the investment for the taxable year in which the grant is made or any subsequent taxable year.

(2) Section 48D(f)(2) of the Code provides that if a credit was determined under § 48D with respect to the investment for any taxable year ending before the grant is made (A) the tax imposed under subtitle A on the taxpayer for the taxable year in which the grant is made will be increased by so much of the credit as was allowed under § 38, (B) the general business carryforwards under § 39 will be adjusted so as to recapture the portion of the credit which was not so allowed, and (C) the amount of the grant will be determined without regard to any reduction in the basis of any property of a character subject to an allowance for depreciation by reason of the credit.

(3) Section 48D(f)(3) of the Code provides that a grant made by the Secretary under section 9023(e) of the Affordable Care Act will not be includible in the gross income of the taxpayer.

must include the information and be in the form as the Secretary may require to state the amount of the credit allowable (but for the receipt of the grant under section 9023(e)(1)) under § 48D for the taxable year for the qualified investment with respect to which the application is made.

(5) Section 9023(e)(3)(A) of the Affordable Care Act provides that the Secretary must make payment of the amount of any grant during the 30-day period beginning on the later of (i) the date of the application for the grant, or (ii) the date the qualified investment for which the grant is being made is made.

(6) Section 9023(e)(4) of the Affordable Care Act provides that the term qualified investment means a qualified investment that is certified under § 48D(d) of the Code for purposes of the credit under § 48D.

.02 Application Procedures for Grants . (1) For taxable years beginning in 2009 or 2010, at the election of an applicant on Form 8942, an application for § 48D certification for a credit will be an application for a grant. The applicant must affirmatively elect on Form 8942 to apply for a grant for 2009 or 2010. If an applicant is submitting an application for certification of a qualified investment made in both 2009 and 2010, then the applicant may apply for a grant for 2009 only, 2010 only, or both 2009 and 2010.

(2) A valid election on Form 8942 to apply for a grant for a taxpayer’s 2010 taxable year will be considered effective the day after the last day of the taxpayer’s 2010 taxable year. If a taxpayer receives a certification for a credit for its 2010 taxable year but did not request a grant on Form 8942 at the time it filed its application, the taxpayer may request a grant in lieu of the credit by filing an amended Form 8942, including all information required in section 8.02(3) and (4) of this notice, requesting a grant not later than the due date (including extensions) for filing the return of tax for the taxpayer’s 2010 taxable year in which the certified qualified investment to which the grant relates was made.

(3) An election on Form 8942 to apply for a grant must include the applicant’s Data Universal Numbering System (DUNS) number from Dun and Bradstreet. If the applicant does not already have a DUNS number, it may request one at no cost by calling the dedicated

toll-free DUNS Number request line at 1–866–705–5711. (4) To make a valid election, applicants for a grant must also register with the Central Contractor Registration (CCR). To register, go to www.ccr.gov/startregistration.aspx . The registration must be completed before a payment can be made.

(5) When an application for certification of qualified investment in a qualifying therapeutic discovery project is approved and the applicant has requested a grant in lieu of a credit, the Service will send a letter to the applicant in the same manner as described in section 5 of this notice. The notice will inform the grant applicant that the payment of the grant will be made by the Department of Treasury.

(6) Payment of Grants for Taxpayers with Taxable Years Beginning in 2009 .

(a) For a certified applicant that requests a grant for its 2009 taxable year on a timely-filed Form 8942, or on an amended Form 8942 filed no later than September 30, 2010, the Department of Treasury will authorize payment to the certified applicant for its 2009 taxable year no later than October 29, 2010. If an applicant files an amended Form 8942 requesting a grant for its 2009 taxable year after September 30, 2010, and not later than the due date (including extensions) for filing the return for the 2009 taxable year, then the Department of Treasury will authorize payment to the certified applicant for its 2009 taxable year within 30 days after the request for the grant is filed.

(b) For an applicant with a 2009 fiscal year ending on or before September 30, 2010, the Department of Treasury will authorize full payment to the certified applicant no later than October 29, 2010, if the applicant’s qualified investment reported on Form 8942 as having been paid or incurred by September 30, 2010, is equal to, or greater than, the amount of the qualified investment certified by the Service.

(c) For an applicant with a 2009 taxable year ending after September 30, 2010, if the applicant’s qualified investment as reported on Form 8942 as having been paid or incurred by September 30, 2010, is less than the qualified investment certified by the Service, then the Department of Treasury will authorize payment to the certified applicant no later than October 29, 2010,

2010–23 I.R.B. 738 June 7, 2010

for the taxable year, if (A) the amount of the portion of the credit determined with respect to the expenses, exceeds (B) the amount allowable as a deduction for the taxable year for the expenses (determined without regard to § 280C(g)(1)), the amount chargeable to capital account for the taxable year for the expenses must be reduced by the amount of the excess.

.08 For controlled groups, § 280C(g)(3) of the Code provides that § 280C(b)(3) applies for purposes of § 280C(g).

.09 The rules under this section 9 apply to credits under § 48D of the Code and grants in lieu of tax credits.