Friday, October 24, 2008
The Energy Policy Act of 2005 (P.L. 109-58) created Clean Renewable Energy Bonds (CREBs) as a new financing tool for electric cooperatives, public power systems and units of state and local government to build renewable electricity projects. CREBs are special-purpose tax credit bonds which provide the equivalent of an interest-free loan. Bondholders receive a tax credit on their federal income taxes instead of an interest payment from the bond issuer. This is a valuable incentive for entities that are otherwise ineligible for the federal Production Tax Credit (PTC) which is available only to for-profit entities.
Resources and Information
Consult the following documents to learn more about the CREBs program and application procedures.
IRS Guidelines on the CREB Program (issued 3/6/06)
Guide to CREBs written by the law firm of Hunton & Williams [pdf file]
Guide to CREBs written by National Rural Electric Cooperative Association [pdf file]
IRS Disclosure Report on 2007 CREB awardees [pdf file]
Internal Revenue Service Bulletin – March 2006
