TaxNewsFlash-Cooperatives

October 28, 2009
No. 2009-12

Treasury Announces Bond Allocations for Renewable Energy Development; Cooperative Electric Companies Are Included in 2009 Allocations

The Treasury Department has allocated $2.2 billion in Clean Renewable Energy Bonds (CREBs) for renewable energy development by over 800 recipients that include cooperative electric companies.

The CREBs program was funded by provisions under the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009 to assist cooperative electric companies, government agencies, and public power providers obtain lower cost financing for clean energy development projects.

Under the CREBs program, Treasury allocates bond authority to cooperative electric companies and others involved in clean renewable energy development and production. The application deadline for the new CREBs allocations was August 4, 2009, with recipients being announced this week.

The CREBs bonds function like tax credit bonds that allow investors to receive federal tax credits in lieu of the payment of a portion of the interest on the bond. For CREBs, the federal tax credits will cover 70% of the interest on the bonds.

A list of entities receiving awards of bond authority in 2009 to issue CREBs is available on the Treasury Web site: http://www.irs.gov/pub/irs-tege/ncrebs_2009_allocations_v1.1.pdf

For more information, contact KPMG’s National Director of Cooperative Tax Services:

David Antoni, in Philadelphia, (267) 256-1627, dantoni@kpmg.com

Or Associate National Director of KPMG’s Cooperative Tax Services

Brett Huston, in Sacramento, 916 554 1654, bhuston@kpmg.com

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