SECTION 13. DRAFTING — Internal Revenue Bulletin 2015-10

INFORMATION

The principal authors of this Notice are Debbie Cho of the IRS Office of Tax Exempt Bonds and Zoran Stojanovic of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information regarding this Notice contact Ms. Cho at 714-347-9431(not a toll-free call) or Mr. Stojanovic at 202317-4564 (not a toll-free call). For further information about submitted Applications, contact Kenneth Stengel at (636) 255-1286 (not a toll-free number).

APPLICATION FOR ALLOCATION OF NEW CLEAN RENEWABLE ENERGY BOND VOLUME CAP

Internal Revenue Service SE:T:GE:TEB:CPM Attention: Kenneth Stengel 1122 Town & Country Commons Chesterfield, MO 63017

Dear Sir or Madam:

The following constitutes the application (Application) of (Name) (Applicant) for allocation of new clean renewable energy bond (New CREB) volume cap under § 54C(a) of the Internal Revenue Code (Code) (unless otherwise noted, section references herein are to the Code) to finance the project described below. (If a single Application is used to request New CREB volume cap for more than one qualified renewable energy facility, then all of the required information in the Application must be provided separately for each facility.)

1. Applicant/issuer.

Name _________________________________________________________

Street Address _________________________________________________________

City _________________________ State ___________________ Zip ________________

Telephone Number _____________________

Fax Number _____________________

Taxpayer Identification Number _____________________

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2. Status of issuer. (Select as appropriate)

The Applicant/Issuer is a “qualified issuer” under § 54C(d)(6) because it is

(i) a “clean renewable energy bond lender” that is a cooperative owned by, or has outstanding loans to, 100 or more

cooperative electrical companies and was in existence on February 1, 2002, or is an affiliate that is owned by such a lender, as demonstrated by the attached documents included as Exhibit C.

(ii) a “cooperative electric company” that is a mutual or cooperative electric company described in § 501(c)(12) or

§ 1381(a)(2)(C), as demonstrated by the attached documents included as Exhibit C, including a copy of the determination letter previously obtained from the IRS, if any (or other relevant documents).

(iii) a “governmental body” that is a State, a possession of the United States, the District of Columbia, an Indian tribal government,

or any political subdivision of the foregoing, as demonstrated by the attached documents included as Exhibit C. (Supporting documents are not required to be attached for governmental bodies that are general purpose governmental entities with substantial taxing, eminent domain, and police powers such as a county, city, municipality, township, or borough.)

(iv) a “public power provider” that is a State utility with a service obligation, as such terms are defined in § 217 of the Federal

Power Act (as in effect on October 3, 2008), as demonstrated by the attached documents included as Exhibit C.

(v) a “not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act,” as demonstrated

by the attached documents included as Exhibit C. For this purpose, supporting documents should include copies of the articles of incorporation and bylaws of the not-for-profit electric utility, and of the loan or loan guarantee documents.

3. Name of Qualified Renewable Energy Facility.

4. Detailed Description of the Qualified Renewable Energy Facility. A reasonably detailed description of the qualified renewable energy facility or facilities (the “Project”) is set forth below or in attached Exhibit A, including reasonably expected costs of components, such as land, site preparation, equipment, installation, other dedicated facilities such as transmission, facility capacity, and projected or expected use of the power produced at the facility.

5. Project Cost. Include in the attached Exhibit B a description of the reasonably expected costs of the Project and a certification that none of the reasonably expected costs of the Project to be financed with New CREBs pursuant to the allocation were included in a previous application unless the IRS has been notified that such application has been withdrawn or that any previous allocation for those costs reverted to the IRS.

6. Qualified Renewable Energy Facility Owner

Name ________________________________________________________

Street Address _______________________________________________________

City _________________________ State ___________________ Zip __________________________

Telephone Number _____________________

Fax Number _____________________

Taxpayer Identification Number ________________________________________________________

7. Status of Owner – (Select as appropriate the category with respect to which the allocation is requested)

The project is owned by a qualified entity under § 54C(d)(1) because the owner is

(i) a qualified owner under § 54C(d)(4) that is a mutual or cooperative electric company under § 501(c)(12) or § 1381(a)(2)(C),

as demonstrated by the attached documents included as Exhibit C, including a copy of the determination letter previously obtained from the IRS, if any (or other relevant documents). Also, the project owner is not a public power provider under § 54C(d)(2).

(ii) a qualified owner under § 54C(d)(3) that is a “governmental body” and is a State, a possession of the United States, the

District of Columbia, an Indian tribal government, or any political subdivision of the foregoing, as demonstrated by the attached documents included as Exhibit C, and not a public power provider under § 54C(d)(2). (Supporting documents are not required to be attached for governmental bodies that are general purpose governmental entities with substantial taxing, eminent domain, and police powers such as generally a county, city, municipality, township, or borough.)

(iii) a qualified owner under § 54C(d)(2) that is a “public power provider” and is a State utility with a service obligation, as such

terms are defined in § 217 of the Federal Power Act (as in effect on October 3, 2008), as demonstrated by the attached documents included as Exhibit C. For this purpose, supporting documents should include copies of the articles of incorporation and bylaws of the electric utility.

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If the expected qualified owner of the project is described in more than one category of qualified owners under § 54C(d)(2), (3), or (4), the Applicant must identify only one such category for which it is seeking volume cap for the project.

An Application for a project to be owned by a governmental body or cooperative electric company must include:

(i) a certification that the expected qualified owner of the project is not a public power provider under section § 54C(d)(2).

(ii) a statement that the aggregate amount of New CREB volume cap requested along with allocations previously received

under Notice 2015-12 by it and members of the same controlled group, as defined in Treasury Regulation § 1.150–1(e), does not exceed the Volume Cap Limit in effect as of the submission date of the Application.

Each Application must state that the Applicant and members of the same controlled group are not seeking separate allocations for the same project costs.

8. Qualified Renewable Energy Facility. The Project is one or more qualified renewable energy facilities within the meaning of § 54C(d)(1) of the Code because it is a “qualified facility” (as determined under § 45(d) of the Code without regard to § 45(d)(8) and (10) and without regard to any placed in service date or associated construction commencement date) that is (select as appropriate)—

(1) a wind facility - a facility using wind to produce electricity;

(2) a closed-loop biomass facility – a facility using closed-loop biomass (as defined in § 45(c)) to produce electricity or a facility using

closed-loop biomass to produce electricity which is modified to use closed-loop biomass to co-fire with coal, with other biomass, or with both, but only if the modification is approved under the Biomass Power for Rural Development Programs or is part of a pilot project of the Commodity Credit Corporation; (3) an open-loop biomass facility – a facility using open-loop biomass (as defined in § 45(c)) to produce electricity and in the case of a

facility using agricultural livestock waste nutrients, the nameplate capacity rating of which is not less than 150 kilowatts; (4) a geothermal or solar energy facility – a facility using geothermal energy (as defined in § 45(c)) or solar energy to produce

electricity (not including a facility described in § 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under § 48 of the Code); (5) a small irrigation power facility - a facility using small irrigation power (as defined in § 45(c)) to produce electricity; (6) a landfill gas facility – a facility producing electricity from gas derived from the biodegradation of municipal solid waste

(as defined in § 45(c)); (7) a trash combustion facility - a facility that burns municipal solid waste (as defined in § 45(c)) to produce electricity; (8) a qualified hydropower facility - a facility engaged in qualified hydropower production (as defined in § 45(c)); or (9) a marine and hydrokinetic renewable energy facility - a facility producing electricity from marine and hydrokinetic

renewable energy (as defined in § 45(c)) with a nameplate capacity of at least 150 kilowatts.

9. Construction Commencement Date and Placed in Service Date. (If the Application is for more than one facility, a separate statement must be included for each facility.) The construction, installation and equipping of the facility began or is expected to begin on ______________________. The facility is expected to be placed into service on or before _________________.

10. Independent Engineer’s Certificate (If the Application is for more than one facility, a separate certificate must be included for each facility.) Attached as Exhibit D hereto is a certification by an independent, licensed engineer to the effect that each facility in the Project will meet the requirements for a “qualified facility” (as determined under § 45(d) of the Code (without regard to § 45(d)(8) and (10) and without regard to any placed in service date or associated construction commencement date), and that each facility, upon being placed in service, is reasonably expected to produce electricity.

11. Location of the Project.

Project address or physical location (do not include postal box numbers or mailing address) __________________________________________________

City _________________________ State ___________________ Zip _______

County where Project is located ___________________

12. Individual to contact for more information about the Project.

Name ________________________________________

Title ________________________________________

Company Name ________________________________________

Street Address ________________________________________

City _________________________ State ___________________ Zip _______

Telephone Number _____________________

Fax Number _____________________

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(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.

13. Approvals. Include in the attached Exhibit E a certification that all required Federal, State, and local approvals (regulatory and otherwise) for the Project, the proposed New CREBs, 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 time to permit issuance of the proposed bonds before the expiration of the volume cap allocation. In addition, include in the attached Exhibit E any required approvals that have not been obtained and describe the Applicant’s plan and expected time frame for obtaining such approvals.

14. Plan of financing. Include in the attached Exhibit F a plan of financing for the Project which includes: a reasonably detailed description of the plan of financing which includes (1) the amount of New CREBs expected to be issued together with a description of how proceeds of such bonds will be allocated to the project, (2) any other reasonably expected 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 municipal bonds evidencing that the proposed bonds are reasonably expected to be marketed prior to the expiration of the volume cap allocation set forth in section 5.e. of Notice 2015–12. Documentation that may be used to meet this requirement for the proposed bonds includes the following: a bond purchase commitment letter from an investor; a credit enhancement commitment letter from a financial institution; a letter from an underwriter or financial advisor to the effect that the sale of the proposed bonds is likely to be completed in time to permit issuance of the proposed bonds before the expiration of the volume cap allocation for the proposed bonds; documentation similar to the foregoing documentation; or a combination of the foregoing documentation.

15. Compliance with federal tax laws. Include in the attached Exhibit G a certification that the Applicant reasonably expects that the proposed bonds will meet the applicable requirements of §§ 54A and 54C and that the Applicant has engaged bond counsel to render an opinion to the effect that the proposed bonds will meet those requirements.

16. 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 New CREBs prior to the expiration of the volume cap allocation.

17. Certain forfeitures. The Applicant must either (i) include in the attached Exhibit I a certification that no previous forfeitures or expirations of volume cap occurred with respect to volume cap allocated under Notice 2015–12; or (ii) if the Applicant previously received an allocation of volume cap under Notice 2015–12 that was forfeited or expired and reverted to the IRS (in whole or in part), then the Applicant must include in the attached Exhibit I an identification of such previous allocation and explain the reasons for such prior forfeiture or expiration.

18. Reimbursements. (For reimbursements, include the following statement.) The owner of the Project intends to use the proceeds of New CREBs to reimburse amounts that the owner paid with respect to the Project in accordance with § 54A(d)(2)(D). The Applicant certifies that the requirements of § 54A(d)(2)(D) will be met with respect to any such reimbursement.

19. Dollar amount of allocation requested for the Project. The Applicant hereby requests a New CREBs volume cap allocation in the amount of $________________.

20. 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) described herein, and (ii) I have examined this Application and the supporting documents, and to the best of my knowledge and belief, all of the facts contained in this Application, any supplemental submission, and the supporting documents are true, correct, and complete.

By: ________________ Name: ________________ Title: ________________ Date: ________________

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EXHIBIT A

DESCRIPTION OF THE PROJECT (RESPONSE TO QUESTION 4 OF THE APPLICATION)

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EXHIBIT B

DESCRIPTION OF PROJECT COSTS (RESPONSE TO QUESTION 5 OF THE APPLICATION)

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EXHIBIT C

DOCUMENTS DESCRIBING QUALIFIED ISSUERS AND QUALIFIED OWNER’S ORGANIZATIONAL STATUS

(RESPONSE TO QUESTIONS 2 AND 7 OF THE APPLICATION)

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EXHIBIT D

ENGINEER’S CERTIFICATE (RESPONSE TO QUESTION 10 OF THE APPLICATION)

Dated: ___________

This certificate is being provided to the Internal Revenue Service (“IRS”) in connection with an application (the “Application”) by [Name of Applicant Issuer ___________________________] (the “Issuer”) to the IRS requesting an allocation of volume cap authority to issue new clean renewable energy bonds (“New CREBs”) under § 54C of the Internal Revenue Code, as amended (the “Code”). The New CREBs are being issued to finance the costs of a [insert type of qualified renewable energy facility described in Code § 45(d), or a portion thereof,] owned by [Name of qualified renewable energy facility owner ______________________________] described more particularly in the Application (the “Project”). The undersigned hereby certifies as follows:

I am an independent, licensed engineer, duly qualified to practice the profession of engineering under the laws of the State of ______________, and I am not an officer or employee of the Issuer.
I have reviewed the Application for a New CREBs volume cap allocation (including the exhibits thereto) of the Issuer of even date herewith describing the Project. To the best of my knowledge, information, and belief, the facility will meet the requirements to be a “qualified renewable energy facility” under section 54C(d)(1) of the Code and correspondingly a “qualified facility” under § 45(d) of the Code (determined without regard to § 45(d)(8) and (10) and to any placed in service date or associated construction commencement date).
To the best of my knowledge, information and belief, the facility, upon being placed in service, is reasonably expected to produce electricity.

IN WITNESS WHEREOF, I have hereunto affixed my official signature on the date of this Engineer’s Certificate.

By: _________________________________

Seal and/or License number:

Name:________________________________

Title: ________________________________

Company:____________________________

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EXHIBIT E

APPROVALS (RESPONSE TO QUESTION 13 OF THE APPLICATION)

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EXHIBIT F

PLAN OF FINANCING (RESPONSE TO QUESTION 14 OF THE APPLICATION)

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EXHIBIT G

COMPLIANCE WITH FEDERAL TAX LAWS (RESPONSE TO QUESTION 15 OF THE APPLICATION)

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EXHIBIT H

STATEMENT OF READINESS TO ISSUE (RESPONSE TO QUESTION 16 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 New Clean Renewable Energy 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: ____________________________________

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EXHIBIT I

CERTAIN FORFEITURES (RESPONSE TO QUESTION 17 OF THE APPLICATION)

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APPENDIX B

CONSENT TO PUBLIC DISCLOSURE OF CERTAIN NEW CLEAN RENEWABLE ENERGY BOND

APPLICATION INFORMATION

In the event that the Application of [Name of Applicant _________________________] (Applicant) for an allocation of authority to issue new clean renewable energy bonds (New CREBs) under § 54C of the Internal Revenue Code (Code) is approved, the undersigned authorized representative of the Applicant hereby consents to the disclosure by the Internal Revenue Service through publication of a public release on the IRS web site at http://www.irs.gov/Tax-Exempt-Bonds of the name of Applicant (issuer), the name of the qualified renewable energy facility owner (if other than the issuer), the type and location of the facility that is the subject of the Application, and the amount of the allocation, if any, of volume cap authority to issue New CREBs for such facility. 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 § 6103 of the 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: Income Tax Regulations require that the Internal Revenue Service must receive this consent within 60 days after it is signed and dated.

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APPENDIX C

CONFIRMATION OF ACCEPTANCE OF LESSER ALLOCATION AMOUNT AND CERTIFICATION OF ACCURACY OF APPLICATION INFORMATION BASED ON

THE LESSER ALLOCATION AMOUNT

This certificate is being provided to the Internal Revenue Service (“IRS”) in connection with an application (the “Application”) by [Name of Applicant: ___________________________] (the “Applicant”) to the IRS requesting an allocation of volume cap authority to issue new clean renewable energy bonds (“New CREBs”) under § 54C of the Internal Revenue Code, as amended (the “Code”). The New CREBs are being issued to finance costs of certain qualified renewable energy facility or facilities described more particularly in the Application (the “Project”). The undersigned hereby certifies as follows:

The Applicant requested volume cap pursuant to the Application in the amount of $_. Because the amount of volume cap requested in applications satisfying the requirements of Notice 2015–12 exceeds the amount of volume cap available for allocation, the Applicant was notified by the IRS that it could receive an allocation of $.
The Applicant confirms its decision to accept the allocation in the amount of $__________.
The Applicant certifies that the certifications and other information included in the Application pursuant to section 3.02.e. of Notice 2015–12, and supplemented as necessary in attachments to this certification, are accurate (subject to provisions of section 7.a. of the Notice relating to insubstantial deviations) based on an amount of allocation requested that is equal to the reduced allocation amount.

Under penalties of perjury, I declare that (i) I have knowledge of the relevant facts and circumstances relating to this certificate, the underlying Application and the Project(s), and (ii) I have examined this certificate, the underlying Application, and the supporting documents, and, to the best of my knowledge and belief, all of the facts contained in this certificate, and the supporting documents are true, correct, and complete.

By: __________________________________

Name: _______________________________

Title: ________________________________

Date: ____________________________________

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APPENDIX D

CONFIRMATION OF DELAYING DECISION ON WHETHER TO ACCEPT LESSER

ALLOCATION

The Applicant requests to delay its decision on whether to accept the proposed lesser amount until not later than _____________ [insert date that is no later than 90 days from the submission date]. The Applicant understands that an allocation in the full amount of its request may be made if sufficient volume cap for its request becomes available prior to such date.

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 with respect to this certificate and the underlying Application. Under penalties of perjury, I declare that (i) I have knowledge of the relevant facts and circumstances relating to this certificate, the underlying Application and the Project(s), and (ii) I have examined this certificate, the underlying Application, and the supporting documents, and, to the best of my knowledge and belief, all of the facts contained in this certificate, and the supporting documents are true, correct, and complete.

By: __________________________________

Name: _______________________________

Title: ________________________________

Date: ____________________________________

Bulletin No. 2015–10 721 March 9, 2015

Work Opportunity Tax Credit (WOTC) Extension for 2014

Notice 2015–13

I. PURPOSE

This notice provides guidance on § 119 of the Tax Increase Prevention Act of 2014 (the Act), Pub. L. No. 113-295, enacted on December 19, 2014, and transition relief for employers claiming the Work Opportunity Tax Credit (WOTC) under §§ 51 and 3111(e) of the Internal Revenue Code, as extended by the Act. Section 119 of the Act amends § 51 to extend the WOTC, including the reduced credit under § 3111(e) for qualified taxexempt organizations, through December 31, 2014. Specifically, this notice provides employers that hire members of targeted groups additional time beyond the 28-day deadline in § 51(d)(13) for submitting Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, to Designated Local Agencies (DLAs).

II. BACKGROUND

Section 51 provides the WOTC for employers that hire individuals who are members of targeted groups. Before an employer may claim the WOTC, the employer must obtain certification that the hired individual is a targeted group member. Certification of an individual’s targeted group status is obtained from a DLA. A DLA is a State employment security agency established in accordance with 29 U.S.C. §§ 49–49n. An employer must submit Form 8850 to the DLA not later than the 28th day after the individual begins work for the employer.

The Returning Heroes and Wounded Warriors Work Opportunity Tax Credits, contained in § 261 of the VOW to Hire Heroes Act of 2011, Pub. L. No. 112-056 (the VOW Act), amended § 51 to extend and expand the WOTC to employers hiring certain qualified veterans (as defined in § 51(d)(3)). The VOW Act also amended §§ 52 and 3111 to make a reduced WOTC available to organizations described in § 501(c) and exempt from taxation under § 501(a) (qualified taxexempt organizations) as a credit against

the employer share of social security tax imposed under § 3111(a) for qualified taxexempt organizations hiring qualified veterans. The American Taxpayer Relief Act of 2012, Pub. L. No. 112-240 (ATRA), enacted on January 3, 2013, extended the WOTC for certain taxpayers through December 31, 2013. For guidance on changes made to the WOTC by the VOW Act and ATRA, see Notice 2012–13, 2012–9 I.R.B. 421, and Notice 2013–14, 2013–13 I.R.B. 712, respectively.

III. TRANSITION RELIEF

Section 51(d)(13)(A) provides that an individual is not treated as a member of a targeted group unless (1) on or before the day the individual begins work, the employer obtains certification from the DLA that the individual is a member of a targeted group; or (2) the employer completes a pre-screening notice (Form 8850) on or before the day the individual is offered employment and submits such notice to the DLA to request certification not later than 28 days after the individual begins work. Because the Act extended the WOTC retroactively for 2014 for members of targeted groups, employers need additional time to comply with the requirements of § 51(d)(13)(A). Accordingly, a taxable employer that hired a member of a targeted group (as defined in §§ 51(d)(2) through (10)), or a qualified tax-exempt organization that hired a qualified veteran described in § 51(d)(3), on or after January 1, 2014, and before January 1, 2015, will be considered to have satisfied the requirements of § 51(d)(13)(A)(ii) if it submits the completed Form 8850 to the appropriate DLA to request certification not later than April 30, 2015. A timely request for certification does not eliminate the need for the employer to receive a certification before claiming the credit.

DRAFTING INFORMATION

The principal author of this notice is Shoshanna Tanner of the Office of the Associate Chief Counsel (Tax Exempt and Government Entities). For further information regarding the WOTC, contact Ms. Tanner at (202) 317-5500 (not a tollfree number).

Round 2 of Section 48A Phase III Program under the Qualifying Advanced Coal Project Program

Notice 2015–14