SECTION 8. PAPERWORK — Internal Revenue Bulletin 2012-31

REDUCTION ACT

The information collection contained in this notice has been approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act (44 U.S.C. chapter 35) under control number 1545–2233. Under the Paperwork Reduction Act, an agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a valid OMB control number.

Sections 3 and 7 of this notice contain the collections of information. That information is required in order to inform the

IRS of an Applicant’s desire to receive an allocation of volume cap for Tribal Economic Development Bonds and to determine the amount of volume cap that may be allocated to each Applicant. The collections of information are mandatory for any Applicant that wishes to receive an allocation of volume cap for Tribal Economic Development Bonds. The likely respondents will be eligible issuers of Tribal Economic Development Bonds.

We estimate the total number of respondents to be 143 and the total annual responses to be 143. We estimate it will take 7 hours to comply. Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

Books or records relating to a collection of information must be retained as long as their contents may become material in

2012–31 I.R.B. 107 July 30, 2012

APPENDIX A

APPLICATION FOR ALLOCATION OF TRIBAL ECONOMIC DEVELOPMENT BOND VOLUME CAP

Internal Revenue Service SE:T:GE:TEB:CPM Attention: Mark Helfer 1122 Town & Country Commons St. Louis, MO 63017

Dear Sir or Madam:

The following constitutes the application (Application) of (Name) (Applicant) for allocation of tribal economic development bond (Tribal Economic Development Bond) volume cap under § 7871(f) of the Internal Revenue Code (Code) (unless otherwise noted, section references herein are to the Code).

Name of Applicant/issuer.

Street Address

City State Zip

Telephone Number Fax Number

EIN

Status of issuer. (Select as appropriate)

The Applicant/issuer is a “qualified issuer” under § 7871(f) because it is —

(i) an Indian tribal entity that appears on the most recent list published by the Department of the Interior in the Federal Register pursuant to the Federally Recognized Indian Tribe List Act of 1994, Pub. L. 103–454, 108 Stat. 4791 (List), as demonstrated by the attached documents included as Exhibit A.

(ii) an Indian tribal government that is acknowledged as a Federally recognized Indian tribe, as stated in a letter from the Department of the Interior, as demonstrated by the attached documents included as Exhibit A.

Description of the project. A description of the project to be financed (Project), including information regarding the type and use of the Project and a certification that the Project will qualify for Tribal Economic Development Bond financing under § 7871(f), is set forth below or in attached Exhibit B.

If the Project is a jointly owned Project, please describe the other owners of the Project and the Applicant’s ownership interest in the Project.

If the Application relates to multiple Projects, the Applicant must include separate project-specific information in all relevant portions of the Application for each separate project (for example, for each separate project, the Application must separately include a plan of financing, describe the project including costs and location, and describe the status of the project’s approval).

Pool issuances . Does the Applicant expect to have the Tribal Economic Development Bonds issued by a pool issuer or an “on behalf of issuer”?

If the answer above is yes, please describe the pool issuer or “on behalf of issuer” and provide a statement that the pool issuer is an Indian tribal government or that the “on behalf of issuer” meets the requirements to be such an issuer under the rules applicable to bonds issued under § 103.

Location of the Project.

Reservation where the Project will be located:

Include in the attached Exhibit C, a certification that the Project will be located entirely on the Applicant’s reservation. If the Tribal Economic Development Bonds will be issued for a joint project please include in the attached Exhibit C a certification that the Project will be located entirely within one or more of the reservations of at least one of the Indian tribal governments receiving an allocation with respect to such Project.

July 30, 2012 108 2012–31 I.R.B.

Not used for gaming purposes.

Include in the attached Exhibit D a certification that no portion of the proceeds of any bonds issued pursuant to the requested allocation will be used to finance any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed, or any other property actually used in the conduct of such gaming.

Individual to contact for more information about the Project.

Individual Name and Title

Company Name

Street Address

City State Zip

Telephone Number

Fax Number

Email Address

(Include as appropriate) The contact person is not an authorized official or officer of the Applicant and a properly executed Form 8821 (or Form 2848) is included with this Application that authorizes the disclosure by the IRS of information that relates to this Application and the Project(s) described above to the contact person.

Approvals . Include in the attached Exhibit E a certification that all required Federal, State, local, and tribal approvals (regulatory and otherwise) for the Project, the proposed Tribal Economic Development Bonds, and any other required financing for the Project have been obtained or, if any approvals have not yet been obtained, a certification that the Applicant reasonably expects to receive all required approvals in a timely manner sufficient to permit issuance of the proposed Tribal Economic Development Bonds within the 180-day period allowed for issuance of bonds under an allocation. In addition, include in the attached Exhibit E which required approvals have not been obtained and describe the Applicant’s plan and expected time frame for obtaining such approvals.
Plan of financing . Include in the attached Exhibit F a plan of financing for the Project which includes: a reasonably detailed plan of financing which includes (1) the amount of Tribal Economic Bonds expected to be issued and the amount of proceeds of such bonds to be allocated to the project, (2) any reasonably expected other sources of financing for the project together with a description of how such financing will be allocated to the project, and (3) documentation from an independent third party who is knowledgeable about the marketability of tax-exempt bonds evidencing that the proposed bonds are reasonably expected to be marketable prior to expiration of the volume cap allocation set forth in section 4.g. of the notice. Documentation that may be used to meet this requirement for the proposed bonds includes, among others, the following: a bond purchase commitment letter from an investor; a credit quality assessment evidencing the investment grade credit quality of the proposed Tribal Economic Development Bonds from an independent organization that is in the business of assessing credit quality; a credit enhancement commitment letter from a financial institution that will enable the Tribal Economic Development Bonds to be investment grade credit quality; or a letter from an underwriter or financial advisor to the effect that the sale of the proposed bonds is likely to be successful in a timely manner before expiration of the volume cap for the allocation; or similar documentation or a combination thereof.
Compliance with federal tax laws . Include in the attached Exhibit G a certification that the Applicant reasonably expects that the proposed bonds will meet all applicable requirements of § 7871(f) and that the Applicant has engaged bond counsel to render an opinion to the effect that the proposed bonds will meet those requirements.
Certification of readiness to issue . Include in the attached Exhibit H a certification that the Applicant reasonably expects to use the volume cap allocation by issuing Tribal Economic Development Bonds prior to the expiration of the volume cap allocation.
Certain forfeitures. If the Applicant previously received an allocation of Tribal Economic Development Bond volume cap (not including any allocations received in allocations announced by the IRS on September 15, 2009 and February 9,

that was forfeited, then the Applicant must identify any such forfeited allocation and include an explanation of the reasons for such prior forfeiture.

Reimbursements. (For reimbursements, include the following statement.) The Applicant intends to use the proceeds of Tribal Economic Development Bonds to reimburse costs of the Project in accordance with § 1.150–2. (In addition, the Applicant must demonstrate that the requirements of § 1.150–2 will be met.)

2012–31 I.R.B. 109 July 30, 2012

Refundings. (For refundings or refinancings, include the following statement.) The Applicant intends to use the proceeds of Tribal Economic Development Bonds to refund or refinance prior debt in circumstances that would qualify for a refunding or refinancing with tax-exempt bonds by a State or local government under § 103. In addition, the Applicant must demonstrate that applicable requirements for such a refunding or refinancing issue will be met.
Dollar amount of allocation requested for the Project. The Applicant hereby requests a Tribal Economic Development Bond allocation in the amount of $
Assignment of allocations to another issuer. ( If the Applicant expects to assign its allocation to another qualified issuer of Tribal Economic Development Bonds as authority for the Tribal Economic Development Bond issuer to issue bonds for the project on behalf of the Applicant, the Applicant should provide the following statement.)

The Applicant expects to assign the requested allocation for Tribal Economic Development Bonds volume cap to a qualified issuer of Tribal Economic Development Bonds as authority for the Tribal Economic Development Bond issuer to issue bonds for the project on behalf of the Applicant. Applicant agrees to obtain a written commitment from the assignee Tribal Economic Development Bond issuer that it is a qualified issuer of Tribal Economic Development Bonds and that it will issue Tribal Economic Development Bonds for the project within the time frame specified in the Application for the Applicant’s bonds.

Penalty of perjury statement and signatures.

I hereby certify that I am an authorized officer or official of the Applicant, that I am duly authorized to execute legal documents on behalf of the Applicant in connection with incurring debt, and that I am duly authorized to execute legal documents on behalf of the Applicant in making this Application. Under penalties of perjury, I declare that (i) I have knowledge of the relevant facts and circumstances relating to this Application and the Project(s), (ii) I have examined this Application and the supporting documents, and (iii) to the best of my knowledge and belief, all of the facts contained in this Application and the supporting documents are true, correct and complete.

By:

Name:

Title:

Date:

July 30, 2012 110 2012–31 I.R.B.

Exhibit A

DOCUMENTS REGARDING ISSUER STATUS AS AN INDIAN TRIBAL GOVERNMENT

(RESPONSE TO QUESTION 2 OF THE APPLICATION)

(Attached hereto)

2012–31 I.R.B. 111 July 30, 2012

Exhibit B

DESCRIPTION OF THE PROJECT (RESPONSE TO QUESTION 3 OF THE APPLICATION)

(Attached hereto)

July 30, 2012 112 2012–31 I.R.B.

Exhibit C

PROJECT LOCATION ON INDIAN TRIBAL GOVERNMENT RESERVATION

(RESPONSE TO QUESTION 5 OF THE APPLICATION)

2012–31 I.R.B. 113 July 30, 2012

EXHIBIT D

STATEMENT WITH RESPECT TO GAMING (RESPONSE TO QUESTION 6 OF THE APPLICATION)

July 30, 2012 114 2012–31 I.R.B.

Exhibit E

APPROVALS (RESPONSE TO QUESTION 8 OF THE APPLICATION)

(Attached hereto)

2012–31 I.R.B. 115 July 30, 2012

Exhibit F

PLAN OF FINANCING (RESPONSE TO QUESTION 9 OF THE APPLICATION)

(Attached hereto)

July 30, 2012 116 2012–31 I.R.B.

EXHIBIT G

COMPLIANCE WITH FEDERAL TAX LAWS (RESPONSE TO QUESTION 10 OF THE APPLICATION)

(Attached hereto)

2012–31 I.R.B. 117 July 30, 2012

EXHIBIT H

STATEMENT OF READINESS TO ISSUE (RESPONSE TO QUESTION 11 OF THE APPLICATION)

I hereby certify that I am an authorized officer or official of the Applicant, that I am duly authorized to execute legal documents on behalf of the Applicant in connection with incurring debt, and that I am duly authorized to execute legal documents on behalf of the Applicant in making this Application. I certify that the Applicant reasonably expects to issue the Tribal Economic Development Bonds pursuant to the allocation of volume cap for those bonds to be received pursuant to the Application prior to the expiration date of the volume cap allocation.

By:

Name:

Title:

Date:

July 30, 2012 118 2012–31 I.R.B.

APPENDIX B

CONSENT TO PUBLIC DISCLOSURE OF CERTAIN TRIBAL ECONOMIC DEVELOPMENT BOND

APPLICATION INFORMATION

In the event that the Application of [( Insert name of Applicant here): ] (Applicant) for an allocation of authority to issue tribal economic development bonds (Tribal Economic Development Bonds) under § 7871(f) of the Internal Revenue Code is approved, the undersigned authorized representative of the Applicant hereby consents to the disclosure by the Internal Revenue Service through publication of a Notice in the Internal Revenue Bulletin or other public release of the name of Applicant (issuer), the type of project to be financed by the Tribal Economic Development Bonds, the reservation on which the project is to be located, the reasonably expected cost of the project, and the amount of the allocation, if any, of volume cap authority to issue Tribal Economic Development Bonds awarded to the Applicant. The undersigned understands that this information might be published, broadcast, discussed or otherwise disseminated in the public record.

This authorization shall become effective upon the execution hereof. Except to the extent disclosure is authorized herein, the returns and return information of the undersigned taxpayer are confidential and are protected by law under the Internal Revenue Code.

I certify that I have the authority to execute this consent to disclose on behalf of the taxpayer named below.

Date: Signature:

Print name:

Title:

Name of Applicant-Taxpayer:

Taxpayer Identification Number:

Taxpayer’s Address:

Note: Treasury Regulations require that the Internal Revenue Service must receive this consent within 60 days after it is signed and dated.

Because the reference price for the 2011 calendar year ($95.73) exceeds $28 multiplied by the inflation adjustment factor for the 2011 calendar year ($43.92) by $51.81, the enhanced oil recovery credit for qualified costs paid or incurred in 2012 is phased out completely.

Table 1 contains the GNP implicit price deflator used for the 2012 calendar year, as well as the previously published GNP implicit price deflators used for the 1991 through 2011 calendar years.

2012 Section 43 Inflation Adjustment

Notice 2012–49

Section 43(b)(3)(B) of the Internal Revenue Code requires the Secretary to publish an inflation adjustment factor. The enhanced oil recovery credit under § 43 for any taxable year is reduced if the “reference price,” determined under § 45K(d)(2)(C), for the calendar year

preceding the calendar year in which the taxable year begins is greater than $28 multiplied by the inflation adjustment factor for that year. The credit is phased out in any taxable year in which the reference price for the preceding calendar year exceeds $28 (as adjusted) by at least $6.

The term “inflation adjustment factor” means, with respect to any calendar year, a fraction the numerator of which is the GNP implicit price deflator for the preceding calendar year and the denominator of which is the GNP implicit price deflator for 1990.

2012–31 I.R.B. 119 July 30, 2012

Notice 2012–49 TABLE 1

GNP IMPLICIT PRICE DEFLATORS

Calendar Year GNP Implicit Price Deflator

1990 112.9 (used for 1991) 1991 117.0 (used for 1992) 1992 120.9 (used for 1993) 1993 124.1 (used for 1994) 1994 126.0 (used for 1995)* 1995 107.5 (used for 1996) 1996 109.7 (used for 1997)** 1997 112.35 (used for 1998) 1998 112.64 (used for 1999)*** 1999 104.59 (used for 2000) 2000 106.89 (used for 2001) 2001 109.31 (used for 2002) 2002 110.63 (used for 2003) 2003 105.67 (used for 2004)**** 2004 108.23 (used for 2005) 2005 112.129 (used for 2006) 2006 116.036 (used for 2007) 2007 119.656 (used for 2008) 2008 122.407 (used for 2009) 2009 109.764 (used for 2010)***** 2010 110.654 (used for 2011) 2011 113.347 (used for 2012)******

Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price deflator used to compute the 1996 § 43 inflation adjustment factor is 93.6.

** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price deflator used to compute the 1998 § 43 inflation adjustment factor is 93.63.

*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator used to compute the 2000 § 43 inflation adjustment factor is 86.53.

**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2004 § 43 inflation adjustment factor is 81.589.

***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2010 § 43 inflation adjustment factor is 72.199.

****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation adjustment factor is 72.260.

July 30, 2012 120 2012–31 I.R.B.

Table 2 contains the inflation adjustment factor and the phase-out amount for taxable years beginning in the 2012

calendar year as well as the previously published inflation adjustment factors and phase-out amounts for taxable years be

Notice 2012–49 TABLE 2

ginning in the 1991 through 2011 calendar years.

INFLATION ADJUSTMENT FACTORS AND PHASE-OUT AMOUNTS

Calendar Year Inflation Adjustment Factor Phase-out Amount

1991 1.0000 0 1992 1.0363 0 1993 1.0708 0 1994 1.0992 0 1995 1.1160 0 1996 1.1485 0 1997 1.1720 0 1998 1.1999 0 1999 1.2030 0 2000 1.2087 0 2001 1.2353 0 2002 1.2633 0 2003 1.2785 0 2004 1.2952 0 2005 1.3266 0 2006 1.3743 100 percent 2007 1.4222 100 percent 2008 1.4666 100 percent 2009 1.5003 100 percent 2010 1.5203 100 percent 2011 1.5326 100 percent 2012 1.5686 100 percent

DRAFTING INFORMATION

The principal author of this notice is Martha M. Garcia of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this notice, contact Ms. Garcia at (202) 622–3110 (not a toll-free call).

2012 Marginal Production Rates

Notice 2012–50

This notice announces the applicable percentage under § 613A of the Internal Revenue Code to be used in determining percentage depletion for marginal properties for the 2012 calendar year.

Section 613A(c)(6)(C) defines the term “applicable percentage” for purposes of determining percentage depletion for oil and gas produced from marginal properties. The applicable percentage is the per

centage (not greater than 25 percent) equal to the sum of 15 percent, plus one percentage point for each whole dollar by which $20 exceeds the reference price (determined under § 45K(d)(2)(C)) for crude oil for the calendar year preceding the calendar year in which the taxable year begins. The reference price determined under § 45K(d)(2)(C) for the 2011 calendar year is $95.73.

The following table contains the applicable percentages for marginal production for taxable years beginning in calendar years 1991 through 2012.

2012–31 I.R.B. 121 July 30, 2012

Notice 2012–50

APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION

Calendar Year Applicable Percentage

1991 15 percent 1992 18 percent 1993 19 percent 1994 20 percent 1995 21 percent 1996 20 percent 1997 16 percent 1998 17 percent 1999 24 percent 2000 19 percent 2001 15 percent 2002 15 percent 2003 15 percent 2004 15 percent 2005 15 percent 2006 15 percent 2007 15 percent 2008 15 percent 2009 15 percent 2010 15 percent 2011 15 percent 2012 15 percent

The principal author of this notice is Martha M. Garcia of the Office of Associate Chief Counsel (Passthroughs

and Special Industries). For further information regarding this notice, contact

Ms. Garcia at (202) 622–3110 (not a toll-free call).

July 30, 2012 122 2012–31 I.R.B.