Lines 1 and 2: the CDE
Name and employer identification number of the qualified community development entity.
8874-B
Notice of Recapture Event for New Markets Credit
- Agency
- IRS
- Revision
- Rev. December 2011
- Fillable fields
- 19
- Pages
- 2
- Official source
- IRS form page
- Checked
- October 21, 2026
Form 8874-B: Notice of Recapture Event for New Markets Credit
Form 8874-B is the notice a qualified community development entity (CDE) uses to tell investors that a recapture event has occurred for the new markets credit. The About page says CDEs use it to notify any taxpayer holder of a qualified equity investment, including prior holders, that a recapture event has occurred. The instructions say the form makes the notification required under Regulations section 1.45D-1(g)(2)(i)(B).
The CDE fills it in, an authorized official of the CDE signs it, the original signed form goes to the taxpayer holder, and a copy goes to the IRS. For more details, the instructions point to Form 8874, New Markets Credit, section 45D, Regulations section 1.45D-1 and www.cdfifund.gov.
This is a form a CDE completes, not one an investor files. You can fill out the PDF free in your browser on this page and download it without an account.
What's on Form 8874-B
Lines 3 and 4: the investor
Name and taxpayer identification number of the taxpayer with the qualified equity investment subject to recapture.
Lines 5 to 8: dates and amounts
Date and amount of the qualified equity investment, date of the recapture event, and the amount of New Markets Credit captured, as line 8 is labeled.
Line 9: reason for recapture
Three boxes: the CDE ceased to be a CDE, the proceeds ceased to be used in a manner that satisfies the substantially-all requirement, or the investment is redeemed or otherwise cashed out by the CDE.
Lines 10a to 10g: decrease in credit
The aggregate decrease in credit for each of Years 1 through 7.
Signature
A declaration under penalties of perjury that the recapture event occurred on the date shown, signed and dated by an authorized official of the CDE, with the official's name typed or printed.
How to fill out Form 8874-B
- 1
Identify the CDE and investor
Enter the CDE's name and EIN on lines 1 and 2, then the name and TIN of the taxpayer holding the investment on lines 3 and 4.
- 2
Lines 5 and 6
Enter the date of the qualified equity investment in mm/dd/yyyy format and the amount of the investment.
- 3
Lines 7 and 8
Enter the date of the recapture event in mm/dd/yyyy format and the amount of New Markets Credit on line 8.
- 4
Line 9
Check the box that describes the reason for recapture.
- 5
Lines 10a to 10g
Enter the aggregate decrease in credit for each year, Year 1 through Year 7.
- 6
Sign
An authorized official of the CDE signs and dates the declaration and types or prints their name.
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Who gets it, when and where
To the taxpayer holder
The instructions say the CDE provides the original signed form to the taxpayer holder no later than 60 days after the date the CDE becomes aware of the recapture event.
Copy to the IRS
A copy goes to the address under Where To File: Department of the Treasury, Internal Revenue Service Center, Philadelphia, PA 19255-0549.
Records
The instructions say to keep a copy of the form for records.
Time estimate
The form estimates 5 hr., 1 min. for recordkeeping, 12 min. for learning about the law or the form, and 17 min. for preparing and sending the form to the IRS.
Related forms
Who completes Form 8874-B?
The CDE completes and signs the form. The taxpayer holding the qualified equity investment receives it, and the IRS gets a copy.
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Questions about Form 8874-B
Who files Form 8874-B?
A qualified community development entity (CDE). The About page says CDEs use it to notify taxpayer holders of a qualified equity investment, including prior holders, that a recapture event has occurred.
Do investors fill out Form 8874-B?
No. The investor is named on lines 3 and 4 and receives the original signed form from the CDE.
When is Form 8874-B due?
The instructions say the original signed form is provided to the taxpayer holder no later than 60 days after the date the CDE becomes aware of the recapture event.
Where does the IRS copy go?
To Department of the Treasury, Internal Revenue Service Center, Philadelphia, PA 19255-0549.
What reasons for recapture does the form list?
Line 9 lists three: the CDE ceased to be a CDE, the proceeds ceased to be used in a manner that satisfies the substantially-all requirement, or the investment is redeemed or otherwise cashed out by the CDE.
How many notices are needed?
The instructions say a separate notice must be provided for each qualified equity investment for which a recapture event occurred.