CREBs

Author: Keith Martin Publication | December 2017

MORE CREBs money is available, but the new tax-cut bill passed by Congress repeals the authority to issue new bonds after this year.

CREBs or clean renewable energy bonds are bonds that can be issued by municipal utilities, government agencies, Indian tribes, electric cooperatives and US possessions like Puerto Rico to finance wind, solar and other renewable energy projects. In theory, no interest has to be paid to the lender or bondholder. It receives federal income tax credits instead. Holders of bonds issued after 2010 receive tax credits worth as little as 70% of the interest payments.

The amount of such bonds that can be issued is limited. Anyone wanting to issue them to finance a project had to apply to the IRS for an allocation. All the money has already been allocated, but the IRS said in October that it has identified $379.5 million in unused bond authority that was forfeited by earlier applicants and is available for reallocation to any public power provider. It said applications are due by June 19, 2018. The announcement is in Notice 2017-66.

However, that was before Congress passed a massive tax-cut bill in mid-December. The bill repeals authority to issue new CREBs bonds after 2017.


Contacts

Keith  Martin

Keith Martin

Washington, DC