Published Volume Cap Limits and Available Amounts of Volume Caps for New Clean Renewable Energy Bonds
For projects to be owned by governmental bodies the Published Volume Cap Limit for the period commencing January 1, 2017, is $42,387,952.05 and the amount of available volume cap, as of January 1, 2017, is $211,939,760.26. For projects to be owned by cooperative electric companies the Published Volume Cap Limit for the period commencing January 1, 2017 is $40,000,000 and the amount of available volume cap, as of January 1, 2017, is $183,453,211.89.
In Notice 2015-12, 2015-10 I.R.B. 700 (March 9, 2015) (Notice), the Treasury Department and the IRS provided guidance regarding applications for allocations of the remaining available amount of the national limitation (volume cap) for new clean renewable energy bonds. The Notice provides that, except as otherwise provided in the Notice, for applications filed with the IRS that meet the requirements detailed in the Notice, the IRS will allocate an amount of available volume cap for projects to be owned by governmental bodies and cooperative electric companies in an amount equal to the amount requested in the application on a first-come, first-served basis by order of submission date (as defined in the Notice).
The Notice also provides that no qualified owner that is a governmental body or cooperative electric company will receive an aggregate allocation of volume cap under the Notice to exceed the Published Volume Cap Limit (taking into account all allocations under the Notice that have not reverted to the IRS) in effect for the period that includes the submission date. The Published Volume Cap Limit for any period is the greater of (1) 20% of the amount of available volume cap for projects to be owned by governmental bodies or cooperative electric companies, as applicable, as of the first day of such period (determined as described in the Notice); or (2) $40 million.
For purposes of this limitation, a qualified owner includes any entities that are members of the same controlled group within the meaning of § 1.150-1(e) that is a governmental body or cooperative electric company. An Application will be treated as complete only if the amount of volume cap requested is within the applicable Volume Cap Limit and the Application otherwise meets the requirements of the Notice.
In accordance with the Notice, the IRS plans to publish updated Published Volume Cap Limits on the IRS website at Information for Tax Exempt Bonds.