IRS Announces Supplemental Round of New CREBS Allocation Requests
The Internal Revenue Service (“Service”) is soliciting applications for a supplemental allocation round of New Clean Renewable Energy Bonds (“New CREBs”). This supplemental round will award $190,795,445 in unallocated cooperative electric company national volume cap (“Volume Cap”) under section 54C of the Internal Revenue Code.
Note: Only applications from cooperative electric companies for qualified projects are eligible for consideration.
IRS Announcement 2010-54 requires applicants to file, by November 1, 2010, their applications in accordance with Notice 2009-33. The methodology set forth in Section 6 of the notice determines the amount of the allocation awarded. Volume Cap allocations are valid for three years from the date of the letter awarding the allocation. By submitting an application, the applicant agrees to comply with the requirements of the notice.
The notice solicits applications for and provides guidance on the allocation of Volume Cap for authority to issue New CREBs. Section 2 of the notice provides that the Secretary shall allocate no more than one-third of the volume cap to qualified projects owned by public power providers, governmental bodies, and cooperative electric companies, respectively. Section 6 of the notice provides guidance on the methodologies used in allocating up to $800 million (one-third) of the $2.4 billion in Volume Cap to qualified projects owned by cooperative electric companies.
The Service received 31 Applications, requesting a total of $609,204,555 in Volume Cap, for proposed projects owned by electric cooperative companies. Pursuant to Section 6 of the notice, the Service allocated $609,204,555 of the available $800 million in Volume Cap to the 31 electric cooperative applicants for qualified projects using the smallest-to-largest methodology. Unallocated Volume Cap, for cooperative electric company applicants, totaling $190,795,445 is currently available for award during this supplemental allocation round.
Please submit questions about applications by email to the IRS at TaxExempBondQuestions@irs.gov. Insert “New CREB Application Question” in the subject line and include a description of your question, a return email address, the name of a contact person and a telephone number.