OMB approves the PRA request with emergency clearance to meet American Reinvestment and Recovery Act requirements. This collection will be valid for six months. If Treasury decides to continue use of the collection past the approved emergency request clearance time period, it must resubmit to OMB under the normal PRA clearance process for a three-year approval.
Inventory as of this Action
Requested
Previously Approved
09/30/2009
6 Months From Approved
5,000
0
0
15,000
0
0
0
0
0
This Notice provides guidance on the new tax incentives for Build America Bonds under § 54AA of the Internal Revenue Code (ÂCodeÂ) and the implementation plans for the refundable credit payment procedures for these bonds. This Notice includes guidance on the modified Build America Bond program for Recovery Zone Economic Development Bonds under § 1400U-2 of the Code. This Notice provides guidance on the initial refundable credit payment procedures, required elections, and information reporting. This Notice solicits public comments on the refundable credit payment procedures for these bonds. This Notice is intended to facilitate prompt implementation of the Build America Bond program and to enable state and local governments to begin issuing these bonds for authorized purposes to promote economic recovery and job creation.
Section 1531 of Division B of the American Recovery and Reinvestment Act of 2009 (Recovery Act) added new section 54AA to the Internal Revenue Code which provides State and local governments with the option to issue taxable ÂBuild America Bonds to finance governmental purposes. Issuers of these bonds can elect to receive a refundable credit from the Federal government equal to a percentage of the interest payable on these bonds on each interest payment date. We are asking State and local governmental issuers of Build America Bonds to report the issuance of the bonds on an existing IRS form 8038-G and to provide debt service schedules that show the expected dates and amounts of interest that the issuers expect to receive from the Federal government over the life of the bonds.
This Notice must be issued immediately in order to provide the procedures for the issuance of Build America Bonds, including the procedures that must be followed to elect to receive payments of refundable credits directly from the Federal government. State and local governmental issuers are not able to issue Build America Bonds without the guidance contained in Notice 2009-26.
Thus, we are requesting an emergency Paperwork Reduction Act review by March 26, 2009.
US Code:
26 USC 54A
Name of Law: Credit to holders of qualified tax credit bonds.
PL: Pub.L. 111 - 5 1531 Name of Law: American Recovery and Reinvestment Act.
In accordance with section 1531 of the American Recovery and Reinvestment Act, this Notice is intended to facilitate prompt implementation of the Build America Bond program and to enable state and local governments to begin issuing these bonds for authorized purposes to promote economic recovery and job creation. This Notice provides guidance on the new tax incentives for Build America Bonds under § 54AA of the Internal Revenue Code (ÂCodeÂ) and the implementation plans for the refundable credit payment procedures for these bonds. This Notice includes guidance on the modified Build America Bond program for Recovery Zone Economic Development Bonds under § 1400U-2 of the Code.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Emergency Justification Memorandum.doc
Notice 2009-26, Build America Bonds and Direct Payment Subsidy Implementation