Earlier this month, the IRS announced it would solicit and accept applications for the reallocation of volume cap of federal money allocated to "New Clean Renewable Energy Bonds" ("New CREBs").

The New CREB Program

  • Nearly $800,000,000 Available for Public Power Providers and Cooperative Electric Companies
  • Renewable Energy Facilities - All bond proceeds must be spent on a "qualified renewable energy facility," including wind, solar, or geothermal facilities which produce electricity
  • Subsidized Interest - One of the key features of New CREBs is that the federal government directly subsidizes up to 70% of each interest payment, which often equates to a better net interest than traditional tax-exempt bonds

How to Apply

  • Complete IRS Application - A portion of IRS Notice 2015-12 (found here) contains the application required to be submitted in order to be considered for a New CREB allocation
  • Application Period - Begins March 5, 2015
  • First-Come, First-Served - The IRS will consider the approval of applications on a first-come, first-served basis, subject to additional factors for approval