Information Return of Nontaxable Energy Grants or Subsidized Energy Financing

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					Form   6497
(Rev. December 2011)
                                            Information Return of Nontaxable Energy
                                             Grants or Subsidized Energy Financing                                                      OMB No. 1545-0232
Department of the Treasury
Internal Revenue Service                                         For calendar year
                   1   Payer’s name                                                                           3    Payer’s employer identification number

                   2a Number and street and apt. or suite no. (Include P.O. box, if applicable.)              4    Payer is agent for
 or Print
                    b City, state, and ZIP code                                                               5    Program name or number

                                                                           Complete 6(b) or 6(c)
            6(a) Recipient’s name, address, and                                                                     6(d) Total          6(e) Total amount
                                                                6(b) Recipient’s         6(c) Recipient’s
                          ZIP code                                                                                amount of grant          of financing
                                                             social security number employer identification

For Paperwork Reduction Act Notice, see back of form.                                     Cat. No. 24535C                           Form 6497 (Rev. 12-2011)
Form 6497 (Rev. 12-2011)                                                                                                                        Page 2

Instructions                                      Subsidized energy financing. Subsidized            Line 5. Enter the program name or number
                                                  energy financing is financing (for example, a      that authorizes the payment.
Section references are to the Internal Revenue    loan) made directly or indirectly under a          Line 6. Make an entry in columns 6(a)
Code.                                             federal, state, or local government program,       through 6(e) for each recipient of a
                                                  whose principal purpose is to provide
Purpose of Form                                                                                      nontaxable energy grant or subsidized energy
                                                  subsidized financing for projects designed to      financing. If you need more space, attach
Use Form 6497 to report nontaxable energy         conserve or produce energy. Subsidized             additional Forms 6497.
grants or subsidized energy financing made        energy financing can also include financing
under government programs whose principal         under a federal, state, or local program             Column 6(a). Show the name and address
purpose is to conserve or produce energy.         having two or more principal purposes, but (a)     of the entity that received the nontaxable
This reporting is required only for recipients    only if one of the principal purposes is to        energy grant or subsidized energy financing.
that are businesses (including sole               provide subsidized financing for energy            Do not show the name of an officer,
proprietors).                                     conservation or production projects, and (b)       employee, etc.
                                                  only if the financing is to be used for energy       Column 6(b). Complete this column for
  Form 6497 lists the information to be           production or conservation purposes (the
furnished about the nontaxable energy grants                                                         sole proprietors without EINs.
                                                  “use test”) or is provided out of funds
or subsidized energy financing, and about the     designated specifically for energy production        Column 6(c). Complete this column if no
recipients. Only one program should be            or conservation. Loan proceeds meet the use        entry was made in column 6(b).
reported on each form. This form should also      test only if any loan-related documents              Column 6(d). Enter the total amount of
be used to report funds received from the         indicate that the funds are intended for that      nontaxable energy grants provided to the
proceeds of tax-exempt bonds that have            use.                                               recipient during the calendar year under the
been used to finance energy conservation or
                                                     Financing is made when funds for                program shown on line 5.
production property.
                                                  subsidized energy financing are disbursed.            Column 6(e). Enter the total amount of
  Grants are always taxable to recipients         The source of the funds for a program is not       subsidized energy financing provided to the
unless specifically exempted by the federal       a factor in determining whether the financing      recipient during the calendar year under the
statute authorizing the grants. The originator    is subsidized. Financing is subsidized if the      program shown on line 5. The amount of
of the grant or subsidy program should            terms of the financing provided to the             subsidized energy financing may be different
advise all disbursing agents whether the          recipient in connection with the program or        from the actual amount of money expended.
program is taxable or nontaxable. Taxable         used to raise funds for the program are more
grants are reported on Form 1099-G, Certain       favorable than terms generally available           Example. If a government agency spent
Government Payments. For details, see the         commercially. In addition, financing is            $1,000 to permit a $5,000 loan to be made
Instructions for Form 1099-G.                     subsidized if the principal obligation of the      with an interest rate lower than it would have
                                                  financing provided to the recipient is reduced     been otherwise, the amount of subsidized
Who Must File                                     by funds provided under the program.               energy financing is $5,000.
Any person (including an Indian tribal            Payer. A payer is any person who administers
government) who administers a government          a federal, state, or local government program
                                                                                                     Paperwork Reduction Act Notice
program for a federal, state, or local            that provides nontaxable grants or subsidized      We ask for the information on this form to
governmental entity or agent of that entity       financing under programs whose principal           carry out the Internal Revenue laws of the
that provides nontaxable energy grants or         purpose is the production or conservation of       United States. You are required to give us the
subsidized energy financing for energy            energy. It includes agents (such as a bank)        information. We need it to ensure that you are
property to business recipients under             that administer federal, state, or local           complying with these laws and to allow us to
programs whose principal purpose is energy        government programs and actually make the          figure and collect the right amount of tax.
production or conservation must file Form         payments to the recipient.
6497. If a federal agency is providing the                                                              You are not required to provide the
funds to a state agency, and the state turns      Recipient. A recipient is the business entity      information requested on a form that is
the funds over to a bank or similar disburser     (including a sole proprietor) that received the    subject to the Paperwork Reduction Act
to act as its agent in disbursing the money for   grant or financing.                                unless the form displays a valid OMB control
the above purposes, only the bank, or                                                                number. Books or records relating to a form
disburser, must file Form 6497 to show the        Specific Instructions                              or its instructions must be retained as long as
actual recipient information.                                                                        their contents may become material in the
                                                  Line 1. Generally, this will be the name of the    administration of any Internal Revenue law.
  Generally, reporting on Form 6497 is            federal, state, or local governmental entity       Generally, tax returns and return information
required only for nontaxable energy grants or     that makes the nontaxable energy grants or         are confidential, as required by section 6103.
subsidized energy financing made for energy       provides the subsidized energy financing. If
property (as defined in section 48 and the        an entity (such as a bank) is administering a          The time needed to complete and file this
regulations under section 48).                    program as the designated agent of one of          form will vary depending on individual
                                                  the above governmental entities, enter the         circumstances. The estimated average time
When To File                                      name of the agent and be sure to fill in line 4.   is:
File Form 6497 for the calendar year by the       Lines 2a and 2b. Enter the address where           Recordkeeping       .   .   .   .   2 hr., 23 min.
last day of February following the year of the    any IRS questions about Form 6497 can be           Learning about the law
payment.                                          directed.                                          or the form . . . . .           .   .   . 24 min.
Where To File                                     Line 3. Use the employer identification            Preparing, copying, and
                                                  number (EIN) for the payer shown on line 1.        sending the form to the IRS         .   . 27 min.
Ogden Submission Processing Campus                Do not use the social security number of an
Exam Classification, Mail Stop 4140               officer or employee.                                 If you have comments concerning the
Ogden, UT 84201                                                                                      accuracy of these time estimates or
                                                  Line 4. If line 1 shows the name of an agent,      suggestions for making this form simpler, we
Definitions                                       use line 4 to show the federal, state, or local    would be happy to hear from you. You
                                                  governmental entity for which the agent is         can write to the Internal Revenue Service, Tax
Energy grant. An energy grant is a payment        administering the program.                         Products Coordinating Committee,
given outright for property designed to                                                              SE:W:CAR:MP:T:M:S, 1111 Constitution Ave.
conserve or produce energy, with no                                                                  NW, IR-6526, Washington, DC 20224. Do not
requirement to repay the money.                                                                      send this form to this address. Instead, see
                                                                                                     Where To File on this page.

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