New Clean Renewable Energy Bonds FAQs
New Clean Renewable Energy Bonds (New CREBs) are one of several types of tax credit bonds authorized under IRC Section 54A, that allow a credit to investors that hold such bond on one or more of the quarterly credit allowance dates. New CREBs must comply with the requirements of IRC Section 54C.
May any qualified issuer, as defined in IRC section 54C(d)(6), apply for the unallocated portion of the New CREBs cooperative electric company volume cap allocation originally authorized under Notice 2009-33?
Yes. However, a cooperative electric company must own the project for which the bond proceeds are spent.
Section 54C authorized $2.4 billion volume cap for New CREBs with no more than $800 million of the $2.4 billion total volume cap allocated to qualified projects owned by public power providers, governmental bodies, and cooperative electric companies. The allocations awarded for projects owned by public power providers and governmental bodies each met the $800 million statutory allocation limit. However, the allocations awarded for projects owned by cooperative electric companies did not reach the $800 million limit. Announcement 2010-54 and Announcement 2015-12 provide additional details concerning the supplemental round of allocations.
Are qualified issuers, as defined in IRC section 54C(d)(6), that received an allocation of New CREBs volume cap in the previous allocation, authorized to issue either qualified tax credit New CREBs or direct pay New CREBs?
Yes. Qualified issuers that received letters awarding New CREBs volume cap allocation, but have not issued bonds as of March 18, 2010, could issue either qualified tax credit or direct pay New CREBS up to the amount of allocation awarded. Qualified issuers of direct pay New CREBs, issued from an allocation, must make an irrevocable election to apply this option before issuing their bonds.
Notice 2009-33 provides that qualified issuers awarded an allocation of New CREBs are allowed three years, from the date of the letter awarding such allocation, to issue their bonds. Does the same requirement apply to New CREBs allocations awarded pursuant to Announcement 2010-54 and 2015-12?
Yes. The rules set forth in Notice 2009-33 would apply to applications submitted pursuant to Announcement 2010-54 and Announcement 2015-12. Qualified issuers awarded an allocation for a qualified project owned by a cooperative electric company will also have three years, from the date of the letter awarding such allocation, to issue their bonds.