Sequestration to Cause CREBs Payments to be Reduced by 8.7%
The Office of Management and Budget has issued its Report to the Congress on the budget sequestration for federal fiscal year 2013 required by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011. Interest subsidy payments for New Clean Renewable Energy Bonds (New CREBs) are among the federal programs impacted by sequestration. According to IRS guidance, issuers of qualified tax credit bonds should continue to request reimbursement for their interest payments on Form 8038-CP in accordance with the instructions for that form, but affected issuers of qualified tax credit bonds will be notified that a portion of their requested payment was subject to the sequester reduction. Read the full Sutherland Legal Alert.
