The Internal Revenue Service invites applications for $2.4 billion in bonding authority offered in a new round of allocations under the Clean Renewable Energy Bonds program. Applications are due Aug. 4.
The CREBs can be used to help finance development of facilities that generate electricity from renewables, including hydro and ocean energy sources.
The $2.4 billion allocation, also called a national bond volume limitation authority, includes $1.6 billion from an economic stimulus bill passed by Congress. (HNN 2/14/09)
The bonds are offered to entities that are not eligible for tax credits: state, local, and tribal governments; public power providers; and electric cooperatives. No more than one-third of the volume cap is to be allocated to any of the three groups.
The IRS included the solicitation in a notice (2009-33) that provides guidance on several areas, including: eligibility requirements to be considered for an allocation; application requirements and the application form for requests; and the method the IRS and Treasury Department will use to make allocations.
In an earlier round of the CREB program, 18 hydroelectric projects were among 312 projects declared eligible for more than $400 million in tax-credit bond allocations. (HNN 2/12/08) About $40 million in bonding authority was divided among those 18 hydropower projects.
Applications for the new round of allocations are due Aug. 4. The notice, including the solicitation and application forms, is to be posted on the IRS Internet site www.irs.gov/taxexemptbond/index.html. The document link is: www.irs.gov/pub/irs-drop/n-09-33.pdf.