Form 8328 (Rev. 9-2011)
Section references are to the Internal Revenue Code unless otherwise
Purpose of Form
Form 8328 is filed by the issuing authority of private activity bonds to
elect to carry forward its unused volume cap for one or more
carryforward purposes (see section 146(f)). If the election is made,
bonds issued with respect to a specified carryforward purpose are not
subject to the volume cap under section 146(a) during the 3 calendar
years following the calendar year in which the carryforward arose, but
only to the extent that the amount of such bonds does not exceed the
amount of the carryforward elected for that purpose.
Also, Form 8328 is used by a state to carry forward the unused
volume cap under section 142(k). A state may elect to carry forward an
unused limitation for any calendar year for 3 calendar years following the
calendar year in which the unused limitation arose under rules similar to
the rules of section 146(f). However, this election can only be made for
the issuance of qualified public educational facility bonds. For
definitions related to qualified public educational facilities, see section
When To File
Form 8328 must be filed by the earlier of: (1) February 15 of the
calendar year following the year in which the excess amount arises, or
(2) the date of issue of bonds issued pursuant to the carryforward
Once Form 8328 is filed, the issuer may not revoke the carryforward
election or amend the carryforward amounts shown on this form.
Errors on this form cannot be corrected through an amended filing.
The issuer may file a Voluntary Closing Agreement Program (VCAP)
request to correct mathematical, typographical, and similar errors. See
Notice 2008-31, 2008-11 I.R.B. 592, and IRM 7.2.3 for more
information about VCAP.
Where To File
File Form 8328 with the Department of the Treasury, Internal Revenue
Service Center, Ogden, UT 84201.
Bonds Taken Into Account Under
All private activity tax-exempt bonds issued during a calendar year are
taken into account under section 146 except:
1. Qualified veterans' mortgage bonds.
2. Qualified section 501(c)(3) bonds.
3. Exempt facility bonds for governmentally owned airports, docks
and wharves, and environmental enhancements of hydroelectric
generating facilities; also exempt facility bonds for qualified public
educational facilities, qualified green building and sustainable design
projects and qualified highway or surface freight transfer facilities.
4. 75% of any exempt facility bonds for privately owned high-speed
intercity rail facilities; 100% if governmentally owned.
5. Exempt facilities bonds for governmentally owned solid waste
disposal facilities. See section 146(h).
6. Bonds issued pursuant to a carryforward election. See section
7. Certain current refundings. See section 146(i).
8. Certain bonds issued by Indian tribal governments for tribal
manufacturing facilities. See section 7871(c)(3).
9. Tribal Economic Development Bonds, section 7871(f).
10. Gulf Opportunity Zone bonds, Midwestern Disaster Area bonds,
Hurricane Ike Disaster Area bonds, section 1400N.
11. New York Liberty Zone bonds, section 1400L.
12. Enterprise Zone Facility bonds, section 1394(f).
Note. Enterprise Zone Facility bonds under section 1394(a)-(e) are
subject to section 146. See Line 10j of Form 8328.
In addition, the private activity portion of governmental bonds is
taken into account to the extent that the nonqualified amount exceeds
$15 million. See sections 141(b)(5) and 146(m).
Bonds Eligible for Carryforward Elections
• An election under section 146(f) may be made by the issuing authority
for only the following types of tax-exempt bonds:
1. Qualified student loan bonds.
2. Qualified mortgage bonds (or mortgage credit certificates).
3. Qualified redevelopment bonds.
4. Exempt facility bonds taken into account under section 142(a).
5. Enterprise zone facility bonds taken into account under Regulations
6. Tax-Exempt Economic Development Bonds for the District of
Columbia Enterprise Zone, section 1400A. Include any Tax-Exempt
Economic Development Bond carryforward on Line 10j.
• An election under section 142(k) may be made by the state for
qualified public educational facility bonds.
Parts I and II of this form must be completed to properly elect the
carryforward provisions under section 146(f).
Parts I and III must be completed to properly elect the carryforward
provisions under section 142(k).
Part I. Reporting Authority
Name. Enter the name of the state if filing under section 142(k). For all
others, enter the name of the entity issuing the bonds.
Report number. This line is for IRS use only. Do not make an entry.
Part II. Unused Volume Cap and Carryforward Under
Computation of Unused Volume Cap
Line 1. Enter the issuing authority’s volume cap under section 146 for
the current calendar year. Take into account any reduction in the
amount of the volume cap under section 25(f) (relating to the reduction
in the aggregate amount of qualified mortgage bonds where certain
requirements are not met). See section 146(n)(2).
Line 2. Enter the total amount of private activity bonds issued by the
issuing authority during the current calendar year that are taken into
account under section 146. See Bonds Taken Into Account Under
Line 3. Enter the total amount of qualified mortgage bonds the issuing
authority has elected not to issue under section 25(c)(2)(A)(ii) during the
current calendar year, plus the reduction under section 25(f) for that
calendar year. See section 146(n).
Line 4. Enter the total amount of volume cap allocated by the issuer
to the private activity portion of governmental bonds. See sections
141(b)(5) and 146(m).
Purpose and Amount of Each Carryforward
Enter the amount of unused volume cap the issuer elects to carry
forward for each carryforward purpose and the total carryforward
Part III. Unused Volume Cap and Carryforward Under
Section 142(k) (Qualifying Public Educational Facility
Complete lines 12 through 15 to compute the amount elected to carry
forward under section 142(k).
Form 8328 must be signed by an authorized public official responsible
for carrying forward unused volume cap.
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The time needed to complete and file this form will vary depending on
individual circumstances. The estimated average time is:
Recordkeeping . . . . . . . . . . . . 7 hr., 24 min.
Learning about the law or the form . . . . . . 2 hr., 47 min.
Preparing and sending
the form to the IRS . . . . . . . . . . . 3 hr., 1 min.
If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would be
happy to hear from you. You can write to the Internal Revenue Service,
Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the
form to this address. Instead, see Where To File.